Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity Registrant Name | VECTOR GROUP LTD | |
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 $0.10 per share | |
Trading Symbol | VGR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 157,375,597 | |
Entity Central Index Key | 0000059440 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 390,758 | $ 268,600 |
Investment securities at fair value | 140,983 | 110,935 |
Accounts receivable - trade, net | 29,637 | 26,442 |
Inventories | 105,132 | 91,959 |
Income taxes receivable, net | 583 | 0 |
Other current assets | 14,094 | 11,665 |
Total current assets | 681,187 | 509,601 |
Property, plant and equipment, net | 43,609 | 43,380 |
Long-term investments (includes $29,435 and $29,402 at fair value) | 46,789 | 46,760 |
Investments in real estate ventures | 116,849 | 131,497 |
Operating lease right-of-use assets | 11,377 | 11,017 |
Intangible assets | 107,511 | 107,511 |
Other assets | 86,699 | 84,329 |
Total assets | 1,094,021 | 934,095 |
Current liabilities: | ||
Current portion of notes payable and long-term debt | 0 | 8 |
Current amounts due under the Master Settlement Agreement | 131,200 | 8,812 |
Income taxes payable, net | 0 | 717 |
Current operating lease liability | 4,186 | 3,706 |
Other current liabilities | 144,413 | 131,680 |
Total current liabilities | 279,799 | 144,923 |
Notes payable, long-term debt and other obligations, less current portion | 1,374,266 | 1,371,811 |
Non-current employee benefits | 68,763 | 67,111 |
Deferred income taxes, net | 53,897 | 57,970 |
Non-current operating lease liability | 7,762 | 8,177 |
Amounts due under the Master Settlement Agreement | 8,208 | 8,747 |
Other liabilities | 14,672 | 17,170 |
Total liabilities | 1,807,367 | 1,675,909 |
Commitments and contingencies (Note 6) | ||
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, 157,377,564 and 155,978,020 shares issued and outstanding | 15,738 | 15,598 |
Additional paid-in capital | 14,508 | 11,384 |
Accumulated deficit | (730,793) | (755,883) |
Accumulated other comprehensive loss | (12,799) | (12,913) |
Total Vector Group Ltd. stockholders' deficiency | (713,346) | (741,814) |
Total liabilities and stockholders' deficiency | $ 1,094,021 | $ 934,095 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Long-term investments, fair value | $ 29,435 | $ 29,402 |
Stockholders' deficiency: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 157,377,564 | 155,978,020 |
Common stock, shares outstanding (in shares) | 157,377,564 | 155,978,020 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Revenues: | |||||
Total revenues | [1] | $ 371,914 | $ 365,662 | $ 696,481 | $ 699,807 |
Cost of sales: | |||||
Total cost of sales | [1] | 244,594 | 248,984 | 462,495 | 481,270 |
Operating, selling, administrative and general expenses | 29,461 | 26,930 | 58,155 | 54,222 | |
Litigation settlement and judgment expense | 73 | 18,105 | 264 | 18,375 | |
Operating income | 97,786 | 71,643 | 175,567 | 145,940 | |
Other income (expenses): | |||||
Interest expense | (26,583) | (27,124) | (54,032) | (54,598) | |
Loss on extinguishment of debt | 0 | (40) | 0 | (181) | |
Equity in (losses) earnings from investments | (641) | 959 | 1,497 | 800 | |
Equity in (losses) earnings from real estate ventures | (1,213) | 2,954 | (11,934) | 1,061 | |
Other, net | 5,585 | 4,791 | 11,970 | 8,411 | |
Income before provision for income taxes | 74,934 | 53,183 | 123,068 | 101,433 | |
Income tax expense | 20,756 | 15,094 | 34,090 | 28,603 | |
Net income | $ 54,178 | $ 38,089 | $ 88,978 | $ 72,830 | |
Per basic common share: | |||||
Net income applicable to common shares (in dollars per share) | $ 0.34 | $ 0.24 | $ 0.56 | $ 0.46 | |
Per diluted common share: | |||||
Net income applicable to common shares (in dollars per share) | $ 0.34 | $ 0.24 | $ 0.56 | $ 0.46 | |
Revenue, Product and Service [Extensible Enumeration] | Tobacco [Member] | Tobacco [Member] | Tobacco [Member] | Tobacco [Member] | |
[1]Revenues and cost of sales include federal excise taxes of $120,452, $126,750, $226,275 and $244,568 for the three and six months ended June 30, 2024 and 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Tax portion of revenues and cost of goods sold | $ 120,452 | $ 126,750 | $ 226,275 | $ 244,568 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 54,178 | $ 38,089 | $ 88,978 | $ 72,830 |
Net unrealized (losses) gains on investment securities available for sale: | ||||
Change in net unrealized losses | (129) | (237) | (387) | (426) |
Net unrealized losses reclassified into net income | 79 | 211 | 103 | 435 |
Net unrealized (losses) gains on investment securities available for sale | (50) | (26) | (284) | 9 |
Net change in pension-related amounts: | ||||
Amortization of loss | 218 | 244 | 437 | 490 |
Net change in pension-related amounts | 218 | 244 | 437 | 490 |
Other comprehensive income | 168 | 218 | 153 | 499 |
Income tax effect on: | ||||
Change in net unrealized losses on investment securities | 32 | 60 | 97 | 109 |
Net unrealized losses reclassified into net income on investment securities | (20) | (54) | (26) | (112) |
Pension-related amounts | (55) | (63) | (110) | (126) |
Income tax provision on other comprehensive income | (43) | (57) | (39) | (129) |
Other comprehensive income, net of tax | 125 | 161 | 114 | 370 |
Comprehensive income | $ 54,303 | $ 38,250 | $ 89,092 | $ 73,200 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIENCY - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 155,978,020 | |||
Beginning Balance | $ (739,064) | $ (805,772) | $ (741,814) | $ (807,877) |
Net income | 54,178 | 38,089 | 88,978 | 72,830 |
Total other comprehensive income | 125 | 161 | 114 | 370 |
Dividends on common stock | (31,940) | (31,755) | (63,888) | (63,519) |
Restricted stock grants | 0 | 0 | ||
Withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting | (452) | (493) | (3,857) | (3,152) |
Withholding of shares as payment of payroll tax liabilities in connection with exercise of stock options | (12,633) | |||
Exercise of stock options | 12,105 | |||
Stock-based compensation | $ 3,807 | 2,645 | $ 7,121 | 4,751 |
Ending Balance (in shares) | 157,377,564 | 157,377,564 | ||
Ending Balance | $ (713,346) | $ (797,125) | $ (713,346) | $ (797,125) |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 157,419,093 | 155,976,547 | 155,978,020 | 154,840,902 |
Beginning Balance | $ 15,742 | $ 15,598 | $ 15,598 | $ 15,484 |
Restricted stock grants (in shares) | 1,745,000 | 1,290,000 | ||
Restricted stock grants | $ 175 | $ 129 | ||
Withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting (in shares) | (41,529) | (41,560) | (345,456) | (238,981) |
Withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting | $ (4) | $ (5) | $ (35) | $ (25) |
Withholding of shares as payment of payroll tax liabilities in connection with exercise of stock options (in shares) | (1,012,249) | |||
Withholding of shares as payment of payroll tax liabilities in connection with exercise of stock options | $ (101) | |||
Exercise of stock options (in shares) | 1,055,315 | |||
Exercise of stock options | $ 106 | |||
Ending Balance (in shares) | 157,377,564 | 155,934,987 | 157,377,564 | 155,934,987 |
Ending Balance | $ 15,738 | $ 15,593 | $ 15,738 | $ 15,593 |
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 11,149 | 3,897 | 11,384 | 5,092 |
Restricted stock grants | (175) | (129) | ||
Withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting | (448) | (488) | (3,822) | (3,127) |
Withholding of shares as payment of payroll tax liabilities in connection with exercise of stock options | (12,532) | |||
Exercise of stock options | 11,999 | |||
Stock-based compensation | 3,807 | 2,645 | 7,121 | 4,751 |
Ending Balance | 14,508 | 6,054 | 14,508 | 6,054 |
Accumulated Deficit | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (753,031) | (809,403) | (755,883) | (812,380) |
Net income | 54,178 | 38,089 | 88,978 | 72,830 |
Dividends on common stock | (31,940) | (31,755) | (63,888) | (63,519) |
Ending Balance | (730,793) | (803,069) | (730,793) | (803,069) |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (12,924) | (15,864) | (12,913) | (16,073) |
Total other comprehensive income | 125 | 161 | 114 | 370 |
Ending Balance | $ (12,799) | $ (15,703) | $ (12,799) | $ (15,703) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIENCY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Distributions and dividends on common stock (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 88,978 | $ 72,830 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,262 | 3,423 |
Non-cash stock-based expense | 7,121 | 4,751 |
Loss on extinguishment of debt | 0 | 181 |
Deferred income taxes | (4,074) | 2,227 |
Equity in earnings from investments | (1,497) | (800) |
Net gains on investment securities | (1,018) | (207) |
Equity in losses (earnings) from real estate ventures | 11,934 | (1,061) |
Distributions from real estate ventures | 329 | 3,954 |
Non-cash interest expense | 1,096 | 1,392 |
Non-cash lease expense | 1,633 | 1,710 |
Changes in assets and liabilities: | ||
Receivables | (3,195) | 6,316 |
Inventories | (13,173) | (6,268) |
Accounts payable and accrued liabilities | 8,939 | (1,028) |
Amounts due under the Master Settlement Agreement | 121,849 | 118,868 |
Litigation accruals | 419 | 18,643 |
Other assets and liabilities, net | (7,282) | (6,713) |
Net cash provided by operating activities | 215,321 | 218,218 |
Cash flows from investing activities: | ||
Sale of investment securities | 427 | 9,505 |
Maturities of investment securities | 23,550 | 39,764 |
Purchase of investment securities | (53,317) | (48,726) |
Proceeds from sale or liquidation of long-term investments | 4,750 | 0 |
Purchase of long-term investments | (2,000) | (5,088) |
Investments in real estate ventures | (5,220) | (5,281) |
Distributions from investments in real estate ventures | 10,029 | 4,109 |
Increase in cash surrender value of life insurance policies | (1,329) | (1,109) |
Increase in restricted assets | (15) | (18) |
Capital expenditures | (3,387) | (7,790) |
Paydowns of investment securities | 40 | 65 |
Net cash used in investing activities | (26,472) | (14,569) |
Cash flows from financing activities: | ||
Repurchase and repayments of debt | (8) | (8,412) |
Borrowings under revolving credit facility | 299 | 87,429 |
Repayments on revolving credit facility | (299) | (109,460) |
Dividends on common stock | (63,457) | (63,200) |
Withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting and exercise of stock options | (3,857) | (3,680) |
Net cash used in financing activities | (67,322) | (97,323) |
Net increase in cash, cash equivalents and restricted cash | 121,527 | 106,326 |
Cash, cash equivalents and restricted cash, beginning of period | 270,106 | 250,374 |
Cash, cash equivalents and restricted cash, end of period | $ 391,633 | $ 356,700 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation : The condensed consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of Liggett Group LLC (“Liggett”), Vector Tobacco LLC (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), New Valley LLC (“New Valley”) 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. The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and, in management’s opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”). The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year. (b) Distributions and Dividends on Common Stock : The Company records distributions on its common stock as dividends in its condensed consolidated statements of stockholders’ deficiency to the extent of retained earnings and net income for the respective fiscal year. Any amounts exceeding retained earnings and net income are recorded as a reduction to additional paid-in capital to the extent paid-in-capital is available and then to accumulated deficit. (c) Earnings Per Share (“EPS”) : Net income for purposes of determining basic and diluted EPS applicable to common shares was as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income $ 54,178 $ 38,089 $ 88,978 $ 72,830 Income attributable to participating securities (1,355) (1,043) (2,256) (1,973) Net income available to common stockholders $ 52,823 $ 37,046 $ 86,722 $ 70,857 Basic and diluted EPS were calculated using the following common shares: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted-average shares for basic EPS 153,740,654 153,214,347 153,595,959 153,114,197 Incremental shares related to stock options and non-vested restricted stock 229,116 109,203 211,087 129,085 Weighted-average shares for diluted EPS 153,969,770 153,323,550 153,807,046 153,243,282 The following non-vested restricted stock was outstanding during the three and six months ended June 30, 2024 and 2023, respectively, and was not included in the computation of diluted EPS because the impact of the per share expense associated with the non-vested restricted stock was greater than the average market price of the common shares during the respective periods. Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted-average shares of non-vested restricted stock 375,000 — 412,775 — Weighted-average expense per share $ 12.90 $ — $ 12.90 $ — (d) Other, net : Other, net consisted of: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Interest and dividend income $ 6,028 $ 4,916 $ 11,487 $ 8,851 Net (losses) gains recognized on investment securities (178) 213 1,018 207 Net periodic benefit cost other than the service costs (267) (339) (535) (678) Other income 2 1 — 31 Other, net $ 5,585 $ 4,791 $ 11,970 $ 8,411 (e) Other Assets : Other assets consisted of: June 30, December 31, 2023 Restricted assets $ 985 $ 1,619 Prepaid pension costs 46,725 45,292 Other assets 38,989 37,418 Total other assets $ 86,699 $ 84,329 (f) Other Current Liabilities : Other current liabilities consisted of: June 30, December 31, 2023 Accounts payable $ 6,148 $ 6,749 Accrued promotional expenses 58,067 51,146 Accrued excise and payroll taxes payable, net 17,386 13,144 Accrued interest 30,041 30,041 Accrued salaries and benefits 7,811 10,952 Allowance for sales returns 13,614 12,675 Other current liabilities 11,346 6,973 Total other current liabilities $ 144,413 $ 131,680 (g) Reconciliation of Cash, Cash Equivalents and Restricted Cash : The components of “Cash, cash equivalents and restricted cash” in the condensed consolidated statements of cash flows were as follows: June 30, December 31, Cash and cash equivalents $ 390,758 $ 268,600 Restricted cash and cash equivalents included in other assets 875 1,506 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 391,633 $ 270,106 (h) Related Party Transactions : Agreements with Douglas Elliman. The Company received $1,050 and $2,100 under the Transition Services Agreement for the three and six months ended June 30, 2024 and 2023, respectively, and $1,000 and $1,595 under the Aircraft Lease Agreements for the three and six months ended June 30, 2024 and $734 and $1,296 for the three and six months ended June 30, 2023, respectively. Real estate venture investments. 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 from these projects of approximately $793 and $2,017 for the three and six months ended June 30, 2024 and $0 and $842 for the three and six months ended June 30, 2023. (i) New Accounting Pronouncements : ASUs to be adopted in future periods : In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The ASU requires that all public entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The ASU is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The ASU requires that all public entities improve the reportable segment disclosure primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. SEC Rule Changes: On March 6, 2024, the SEC passed rule changes that will require registrants to provide certain climate-related information in their registration statements and annual reports. The rules require information about a registrant's climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks will also include disclosure of a registrant's greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. On April 4, 2024, the SEC voluntarily stayed the rules pending the resolution of certain legal challenges. The Company is currently evaluating the impact of the rule changes. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of: June 30, December 31, Leaf tobacco $ 57,852 $ 46,190 Other raw materials 10,463 9,372 Work-in-process 973 814 Finished goods 67,786 65,295 Inventories at current cost 137,074 121,671 LIFO adjustments: Leaf tobacco (21,616) (19,941) Other raw materials (2,636) (2,411) Work-in-process (110) (105) Finished goods (7,580) (7,255) Total LIFO adjustments (31,942) (29,712) $ 105,132 $ 91,959 All inventories as of June 30, 2024 and December 31, 2023 are reported under the LIFO method. The amount of capitalized Master Settlement Agreement (“MSA”) cost in “Finished goods” inventory was $23,731 and $22,988 as of June 30, 2024 and December 31, 2023, respectively. Federal excise tax capitalized in inventory was $25,193 and $25,151 as of June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, Liggett had tobacco purchase commitments of approximately $31,363. Liggett has a single-source supply agreement for reduced ignition propensity cigarette paper through December 2025. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment securities consisted of the following: June 30, December 31, 2023 Debt securities available for sale $ 102,849 $ 73,225 Equity securities at fair value: Marketable equity securities 14,103 14,286 Mutual funds invested in debt securities 24,031 23,424 Long-term investment securities at fair value (1) 29,435 29,402 Total equity securities at fair value 67,569 67,112 Total investment securities at fair value 170,418 140,337 Less: Long-term investment securities at fair value (1) 29,435 29,402 Current investment securities at fair value $ 140,983 $ 110,935 Long-term investment securities at fair value (1) $ 29,435 $ 29,402 Equity-method investments 17,354 17,358 Total long-term investments $ 46,789 $ 46,760 Equity securities and other long-term investments at cost (2) $ 7,555 $ 7,555 _____________________________ (1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820. (2) These assets are without readily determinable fair values that do not qualify for the NAV practical expedient and are included in Other assets on the condensed consolidated balance sheets. Net (losses) gains recognized on investment securities were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net (losses) gains recognized on equity securities $ (99) $ 424 $ 1,121 $ 642 Net gains (losses) recognized on debt securities available for sale — 1 1 (179) Impairment expense (79) (212) (104) (256) Net (losses) gains recognized on investment securities $ (178) $ 213 $ 1,018 $ 207 (a) Debt Securities Available for Sale: The components of debt securities available for sale as of June 30, 2024 were as follows: Cost Gross Gross Fair Marketable debt securities $ 102,843 $ 6 $ — $ 102,849 The table below summarizes the maturity dates of debt securities available for sale as of June 30, 2024. Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. government securities $ 73,924 $ 39,145 $ 34,779 $ — Corporate securities 6,516 6,516 — — U.S. mortgage-backed securities 7,068 6,970 98 — Commercial paper 15,341 15,341 — — Total debt securities available for sale by maturity dates $ 102,849 $ 67,972 $ 34,877 $ — The components of debt securities available for sale at December 31, 2023 were as follows: Cost Gross Gross Fair Marketable debt securities $ 72,939 $ 286 $ — $ 73,225 There were no available-for-sale debt securities with continuous unrealized losses for less than 12 months and 12 months or greater as of June 30, 2024 and December 31, 2023, respectively. Gross realized gains and losses on debt securities available for sale were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Gross realized gains on sales $ — $ 1 $ 1 $ 5 Gross realized losses on sales — — — (184) Net gains (losses) recognized on debt securities available for sale $ — $ 1 $ 1 $ (179) Impairment expense $ (79) $ (212) $ (104) $ (256) Although management 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: The following is a summary of unrealized and realized net gains recognized in net income on equity securities at fair value during the three and six months ended June 30, 2024 and 2023, respectively: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net (losses) gains recognized on equity securities $ (99) $ 424 $ 1,121 $ 642 Less: Net (losses) gains recognized on equity securities sold (22) 155 73 271 Net unrealized (losses) gains recognized on equity securities still held at the reporting date $ (77) $ 269 $ 1,048 $ 371 The Company’s investments in mutual funds that invest in debt securities are classified as Level 1 under the fair value hierarchy disclosed in Note 8. 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. The Company has unfunded commitments of $303 related to long-term investment securities at fair value as of June 30, 2024. The Company received $4,750 of cash distributions for the six months ended June 30, 2024 and no cash distributions for the six months ended June 30, 2023. The Company recorded $151 of in-transit redemptions as of June 30, 2024. The Company classified all cash distributions as investing cash inflows. (c) Equity-Method Investments: Equity-method investments consisted of the following: June 30, December 31, 2023 Mutual fund and hedge funds $ 17,354 $ 17,358 On June 30, 2024, the Company’s ownership percentages in the mutual fund and hedge funds accounted for under the equity method ranged from 8.13% to 35.89%. The Company’s ownership percentage in these investments meets the threshold for equity-method accounting. Equity in (losses) earnings from investments were: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Mutual fund and hedge funds $ (641) $ 959 $ 1,497 $ 800 (d) Equity Securities and Other Long-Term Investments Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical Expedient Equity securities and other long-term investments without readily determinable fair values that do not qualify for the NAV practical expedient consisted of profit participation agreements and investments in various limited liability companies. The total carrying value of these investments without readily determinable fair values that do not qualify for the NAV practical expedient was $7,555 as of June 30, 2024 and December 31, 2023, and was included in “Other assets” on the condensed consolidated balance sheets. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the three and six months ended June 30, 2024 and 2023, respectively. |
NEW VALLEY LLC
NEW VALLEY LLC | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
NEW VALLEY LLC | NEW VALLEY LLC Investments in real estate ventures: The components of “Investments in real estate ventures” were as follows: Range of Ownership (1) June 30, 2024 December 31, 2023 Condominium and Mixed-Use Development 4.1% - 77.8% $ 93,976 $ 108,334 Apartment Buildings 1.5% - 50.0% 6,285 7,791 Hotels 0.4% - 49.0% 5 138 Commercial 1.6% - 49.0% 16,583 15,234 Investments in real estate ventures $ 116,849 $ 131,497 _____________________________ (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 because of a number of factors including potential dilution, financing or admission of additional partners. Contributions: The components of New Valley’s contributions to its investments in real estate ventures were as follows: Six Months Ended June 30, 2024 2023 Condominium and Mixed-Use Development $ 3,649 $ 5,166 Apartment Buildings 249 115 Hotels 57 — Commercial 1,265 — Total contributions $ 5,220 $ 5,281 For ventures where New Valley previously held an investment and made an additional contribution, New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners during the six months ended June 30, 2024 and 2023. New Valley’s direct investment percentage in its existing ventures did not significantly change. Distributions: The components of distributions received by New Valley from its investments in real estate ventures were as follows: Six Months Ended June 30, 2024 2023 Condominium and Mixed-Use Development $ 10,029 $ 7,883 Commercial 329 179 Total distributions $ 10,358 $ 8,062 Of the distributions received by New Valley from its investment in real estate ventures, $329 and $3,954 were from distributions of earnings for the six months ended June 30, 2024 and 2023, respectively, and $10,029 and $4,109 were a return of capital for the six months ended June 30, 2024 and 2023, respectively. Distributions from earnings are included in cash from operations in the condensed consolidated statements of cash flows, while distributions from return of capital are included in cash flows from investing activities in the condensed consolidated statements of cash flows. Equity in (Losses) Earnings from Real Estate Ventures: New Valley recognized equity in (losses) earnings from real estate ventures as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Condominium and Mixed-Use Development $ (441) $ 3,516 $ (10,401) $ 4,163 Apartment Buildings (541) (410) (1,756) (1,609) Hotels (26) (171) (189) (2,094) Commercial (205) 19 412 601 Equity in (losses) earnings from real estate ventures $ (1,213) $ 2,954 $ (11,934) $ 1,061 The Company recorded impairment expense of $0 and $7,030 for the three and six months ended June 30, 2024, respectively. The expense related to two ventures, which were condominium and mixed-use development ventures. The Company recorded impairment expense of $0 and $1,202 for the three and six months ended June 30, 2023, which related to one hotel venture. These ventures were recorded at fair value when the impairment charges were recorded. VIE Consideration: The Company has determined that the entities in the real estate ventures were variable interest entities (“VIEs”) and New Valley was not the primary beneficiary. Therefore, New Valley’s investment in such real estate ventures has been accounted for under the equity method of accounting. Maximum Exposure to Loss: New Valley’s maximum exposure to loss from its investments in real estate ventures consisted of the net carrying value of the venture adjusted for any future capital commitments and/or guarantee arrangements. The maximum exposure to loss was as follows: June 30, 2024 Condominium and Mixed-Use Development $ 93,976 Apartment Buildings 6,285 Hotels 5 Commercial 16,583 Total maximum exposure to loss $ 116,849 |
NOTES PAYABLE, LONG-TERM DEBT A
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, December 31, Vector: 5.75% Senior Secured Notes due 2029 $ 875,000 $ 875,000 10.5% Senior Notes due 2026, net of unamortized discount of $1,453 and $1,719 517,239 516,973 Liggett: Equipment loans — 8 Notes payable, long-term debt and other obligations 1,392,239 1,391,981 Less: Debt issuance costs (17,973) (20,162) Total notes payable, long-term debt and other obligations 1,374,266 1,371,819 Less: Current maturities — (8) Amount due after one year $ 1,374,266 $ 1,371,811 5.75% Senior Secured Notes due 2029 — Vector : As of June 30, 2024, the Company was in compliance with all debt covenants related to its 5.75% Senior Secured Notes due 2029. 10.5% Senior Notes due 2026 — Vector : During March and April 2023, the Company repurchased in the market $8,352 in aggregate principal amount of its 10.5% Senior Notes outstanding and recorded a loss of $40 and $181 associated with the repurchase for the three and six months ended June 30, 2023, respectively. The 10.5% Senior Notes that were repurchased have been retired. As of June 30, 2024, the Company was in compliance with all debt covenants related to its 10.5% Senior Notes due 2026. Revolving Credit Agreement — Liggett : Liggett, 100 Maple LLC (“Maple”), a subsidiary of Liggett, and Vector Tobacco are party to the Credit Agreement with Wells Fargo, as agent and lender, which provides a maximum credit line of $90,000 and matures on March 22, 2026. Loans under the Credit Agreement bear interest at a rate equal to, at the borrower’s option, (a) the base rate, (b) Term SOFR for the applicable interest period plus 2.25% or (c) Daily Simple SOFR plus 2.25%, where “SOFR” means the Secured Overnight Financing Rate. The interest rate as of June 30, 2024 was 7.56%. An unused line fee is also payable on the average undrawn commitments at a rate of 0.25%, regardless of the amount borrowed under the facility. As of June 30, 2024, there was no outstanding balance due under the Credit Agreement. Availability, as determined under the Credit Agreement, was approximately $89,600 based on eligible collateral on June 30, 2024. As of June 30, 2024, Liggett, Maple, and Vector Tobacco were in compliance with all debt covenants under the Credit Agreement. Non-Cash Interest Expense — Vector : Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Amortization of debt discount, net $ 135 $ 121 $ 266 $ 238 Amortization of debt issuance costs 1,157 1,082 2,290 2,150 Loss on repurchase of 10.5% Senior Notes — 40 — 181 Total non-cash interest expense $ 1,292 $ 1,243 $ 2,556 $ 2,569 Fair Value of Notes Payable and Long-Term Debt : June 30, 2024 December 31, 2023 Carrying Fair Carrying Fair Value Value Value Value 5.75% Senior Secured Notes due 2029 $ 875,000 $ 818,589 $ 875,000 $ 800,126 10.5% Senior Notes due 2026 517,239 523,599 516,973 522,194 Liggett and other — — 8 8 Notes payable and long-term debt $ 1,392,239 $ 1,342,188 $ 1,391,981 $ 1,322,328 Notes payable and long-term debt are recorded on the condensed consolidated balance sheets at amortized cost. The fair value determinations disclosed above would be classified as Level 2 under the fair value hierarchy disclosed in Note 8 if such liabilities were recorded on the condensed consolidated balance sheets 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. The Company used a derived price based upon quoted market prices and trade activity as of June 30, 2024 to determine the fair value of its publicly traded notes and debentures. The carrying value of the Credit Agreement is equal to fair value. The fair value of the equipment loans was determined by calculating the present value of the required future cash flows. However, considerable judgment is required to |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 and 2023, Liggett incurred tobacco product liability legal expenses and costs totaling $4,115 and $4,306, respectively. Legal defense costs are expensed as incurred. Litigation is subject to uncertainty and it is possible 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 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 June 30, 2024, there are no litigation bonds posted. 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 6: (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 condensed 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. 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. 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 June 30, 2024, there were 97 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 Massachusetts 46 * Illinois 22 Oregon 7 Florida 7 US Virgin Islands - St. Croix 5 Nevada 4 Louisiana 2 New Mexico 2 Hawaii 1 California 1 * In addition to the active lawsuits pending in Massachusetts, Liggett has received 82 notices of intent to initiate litigation under the Massachusetts Consumer Protection Act, Chapter 93 A. Under Chapter 93 A, consumers must serve a 30-day demand letter (the “Demand”) before filing a complaint alleging unfair or deceptive business practices. The Demand must include an offer of settlement and the business served with the Demand is required to make a “reasonable” counteroffer within 30-days. Chapter 93 A contains a legal fee shifting provision. Liggett is in the process of investigating these claims and complying with the procedural requirements of Chapter 93 A. Of the 82 claims, Liggett has determined that the vast majority never used a brand manufactured by Liggett. 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, punitive damages and attorneys’ fees. 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, statute of repose, 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. 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 were affirmed on appeal and satisfied by the defendants. As of June 30, 2024, 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. As of June 30, 2024, six Engle progeny cases, on behalf of nine plaintiffs, remain pending in state court. 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 to be paid in installments over 14 years starting in February 2015. The Company’s future payments will be approximately $4,000 per annum through 2028, including an annual cost of living increase that began in 2021. In exchange, the claims of these plaintiffs were dismissed with prejudice against the Company and Liggett. Liggett Only Cases As of June 30, 2024, there were three cases pending where Liggett is the sole defendant: Cowart and Cunningham are Individual Actions and Forbing is an Engle progeny case. It is possible that cases where Liggett is the only defendant could increase. Upcoming Trials As of June 30, 2024, there were six Individual Actions ( Cain, Gerace, Goodwin, Kanuha, Malevitis and Morton ) scheduled for trial through June 30, 2025, where Liggett is a named defendant. Trial dates are subject to change and additional cases could be set for trial during this time. City of Baltimore In December 2022, the Mayor and City Council of Baltimore sued Liggett and others, claiming, among other things, that defendants’ failure to use biodegradable filters on their cigarette products resulted in littering by smokers of the city’s streets, sidewalks, beaches, parks, lawns and waterways, which in turn resulted in contamination of the soil and water, increased costs of clean-up and disposal of this litter, as well as the reduction of property values and tourism to the city. Plaintiffs seek compensatory damages, punitive damages, penalties, fines, disgorgement of profits and equitable relief. Class Actions As of June 30, 2024, 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. In November 1997, in Young v. American Tobacco Co., a purported class action was brought on behalf of plaintiff and all similarly situated residents in Louisiana who, though not themselves cigarette smokers, allege they were exposed to and suffered injury from secondhand smoke from cigarettes. The plaintiffs seek an unspecified amount of compensatory and punitive damages. The case has been stayed since March 2016 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 brought on behalf of plaintiff and all West Virginia residents who allegedly have claims arising from their exposure to cigarette smoke and asbestos fibers and seeks compensatory and punitive damages. The case has been stayed since December 2000 as a result of bankruptcy petitions filed by three co-defendants. 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. Health Care Cost Recovery Actions As of June 30, 2024, one Health Care Cost Recovery Action was pending against Liggett 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 have asserted 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. 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, obligations 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 5.7% of the total cigarettes sold in the United States in the first six months of 2024. 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. Liggett and Vector Tobacco’s MSA obligation for 2023 was approximately $277,500, of which $263,000 was prepaid on December 28, 2023. The remaining balance of $14,489 was paid in April 2024. Certain MSA Disputes NPM Adjustment. Liggett and Vector Tobacco contend that they are entitled to an NPM Adjustment for 2003 - 2023. 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 - 2023, 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. To date, the PMs have settled the NPM Adjustment dispute with 41 states and territories representing approximately 82% of the MSA allocable share. As of June 30, 2024, Liggett and Vector Tobacco had accrued approximately $8,208 related to the disputed amounts withheld from the non-settling states for 2005 - 2010, which may be subject to payment, with interest, if Liggett and Vector Tobacco lose the disputes for those years. The 2004 NPM Adjustment arbitration with the non-settling states commenced in 2016, with the arbitration panel finding three states liable for the NPM Adjustment. Two of these states filed motions challenging these determinations and several issues remain to be resolved by the arbitration panels that will affect the final amount of the 2004 NPM Adjustment. Individual state hearings with respect to the NPM Adjustments for 2005 - 2007 are ongoing with the non-settling states. Other State Settlements. The MSA replaced Liggett’s prior settlements with all states and territories except for Florida, Mississippi, Texas and Minnesota which by their terms, expire 25 years after execution, unless otherwise extended as set forth below. 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. 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 its dispute with Minnesota, Liggett agreed to pay $100 a year in any year cigarettes manufactured by Liggett are sold in that state, through 2022. In 2023, Minnesota and Liggett agreed to amend that agreement with Liggett agreeing to pay $1,000 per year for an additional ten years. In 2010, Liggett resolved the dispute with Florida and agreed to pay $1,200 and to make annual payments of $250 through 2032, with the payments in 2022 through the duration of the agreement 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 among Liggett, Mississippi and other states alleging that Liggett owed Mississippi at least $27,000 in compensatory damages, plus interest, attorneys’ fees and punitive damages. In August 2023, Liggett resolved the dispute with Mississippi for payment of $18,000, with certain terms under the agreement extending in perpetuity. 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 unfavorably against Liggett and that Liggett will be unsuccessful on appeal. Liggett may attempt to settle particular cases if it believes it is in its best interest to do so. Management cannot predict the cash requirements related to any future defense costs, settlements or judgments, including cash required to bond any appeals, and there is a risk that Liggett may not be able to meet those requirements. An unfavorable outcome of a pending smoking-related case could encourage the commencement of additional litigation. Except as discussed in this Note 6, management is unable to estimate the loss or range of loss that could result from an unfavorable outcome of the cases pending against Liggett or the costs of defending such cases and as a result has not provided any amounts in its condensed consolidated financial statements for unfavorable outcomes. The tobacco industry is subject to a wide range of laws and regulations regarding the marketing, sale, taxation and use of tobacco products imposed by local, state and federal governments. There have been a number of restrictive regulatory actions, adverse legislative and political decisions and other unfavorable developments concerning cigarette smoking and the tobacco industry. These developments may negatively affect the perception of potential triers of fact with respect to the tobacco industry, possibly to the detriment of certain pending litigation, and may prompt the commencement of additional litigation or legislation. It is possible that the Company’s consolidated financial position, results of operations and cash flows could be materially adversely affected by an unfavorable outcome in any of the smoking-related litigation. The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2024 was as follows: Current Liabilities Non-Current Liabilities Amounts due under Master Settlement Agreement Litigation Accruals Total Amounts due under Master Settlement Agreement Litigation Accruals Total Balance as of January 1, 2024 $ 8,812 $ 351 $ 9,163 $ 8,747 $ 13,885 $ 22,632 Expenses 134,973 264 135,237 — — — NPM Settlement adjustment (5) — (5) (164) — (164) Change in MSA obligations capitalized as inventory 743 — 743 — — — Payments (14,489) (669) (15,158) — — — Reclassification to/(from) non-current liabilities 375 3,735 4,110 (375) (3,735) (4,110) Interest on withholding 791 263 1,054 — 561 561 Balance as of June 30, 2024 $ 131,200 $ 3,944 $ 135,144 $ 8,208 $ 10,711 $ 18,919 The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2023 was as follows: Current Liabilities Non-Current Liabilities Amounts due under Master Settlement Agreement Litigation Accruals Total Amounts due under Master Settlement Agreement Litigation Accruals Total Balance as of January 1, 2023 $ 14,838 $ 296 $ 15,134 $ 11,116 $ 16,117 $ 27,233 Expenses 135,989 18,375 154,364 — — — NPM Settlement adjustment — — — (311) — (311) Change in MSA obligations capitalized as inventory (35) — (35) — — — Payments (16,776) (635) (17,411) — — — Reclassification to/(from) non-current liabilities 1,635 3,707 5,342 (1,635) (3,707) (5,342) Interest on withholding — 112 112 — 791 791 Balance as of June 30, 2023 $ 135,651 $ 21,855 $ 157,506 $ 9,170 $ 13,201 $ 22,371 Other Matters : Liggett’s and Vector Tobacco’s management are unaware of any material environmental conditions affecting their existing facilities. Liggett’s and Vector Tobacco’s management believe that current operations are conducted in material compliance with all environmental laws and regulations and other laws and regulations governing cigarette manufacturers. Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material impact on the capital expenditures, results of operations or competitive position of Liggett or Vector Tobacco. Over the years, Liggett and the Company have received various demands for indemnification from Altria Client Services, on behalf of Philip Morris, relating to lawsuits alleging smokers’ use of L&M cigarettes. The indemnification demands are purportedly issued in connection with Eve Holdings’ 1999 sale of certain trademarks to Philip Morris. It is unclear what, if any, liability the Company may have in connection with these matters. Management is of the opinion that the liabilities, if any, resulting from other proceedings, lawsuits and claims pending against the Company and its consolidated subsidiaries, unrelated to tobacco product liability, should not materially affect the Company’s consolidated financial position, results of operations or cash flows. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective income tax rate is based on expected income, statutory rates, valuation allowances against deferred tax assets, and any tax planning opportunities available to the Company. For interim financial reporting, the Company estimates the annual effective income tax rate based on full year projections and applies the annual effective income tax rate against year-to-date pretax income to record income tax expense, adjusted for discrete items, if any. The Company refines annual estimates as new information becomes available. The Company’s tax rate does not bear a relationship to statutory tax rates due to permanent differences, which are primarily related to nondeductible compensation and state taxes. The Company’s income tax expense consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Income before provision for income taxes $ 74,934 $ 53,183 $ 123,068 $ 101,433 Income tax expense using estimated annual effective income tax rate 20,756 14,997 34,090 28,603 Changes in effective tax rates — 97 — — Income tax expense $ 20,756 $ 15,094 $ 34,090 $ 28,603 There were no discrete items for the three and six months ended June 30, 2024 and 2023, respectively. |
INVESTMENTS AND FAIR VALUE MEAS
INVESTMENTS AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | INVESTMENTS AND FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities subject to fair value measurements were as follows: Fair Value Measurements as of June 30, 2024 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 328,308 $ 328,308 $ — $ — Commercial paper (1) 43,705 — 43,705 — Investment securities at fair value Equity securities at fair value Marketable equity securities 14,103 14,103 — — Mutual funds invested in debt securities 24,031 24,031 — — Total equity securities at fair value 38,134 38,134 — — Debt securities available for sale U.S. government securities 73,924 — 73,924 — Corporate securities 6,516 — 6,516 — U.S. government and federal agency 7,068 — 7,068 — Commercial paper 15,341 — 15,341 — Total debt securities available for sale 102,849 — 102,849 — Total investment securities at fair value 140,983 38,134 102,849 — Long-term investments Long-term investment securities at fair value (2) 29,435 — — — Total $ 542,431 $ 366,442 $ 146,554 $ — (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets. (2) 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, 2023 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 214,515 $ 214,515 $ — $ — Commercial paper (1) 52,287 — 52,287 — Investment securities at fair value Equity securities at fair value Marketable equity securities 14,286 14,286 — — Mutual funds invested in debt securities 23,424 23,424 — — Total equity securities at fair value 37,710 37,710 — — Debt securities available for sale U.S. government securities 38,657 — 38,657 — Corporate securities 12,042 — 12,042 — U.S. government and federal agency 17,358 — 17,358 — Commercial paper 5,168 — 5,168 — Total debt securities available for sale 73,225 — 73,225 — Total investment securities at fair value 110,935 37,710 73,225 — Long-term investments Long-term investment securities at fair value (2) 29,402 — — — Total $ 407,139 $ 252,225 $ 125,512 $ — (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets. (2) 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 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. 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 because of impairment charges. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of June 30, 2024 and December 31, 2023, respectively, except for investments in real estate ventures that were impaired as of December 31, 2023. The Company’s investments 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 Significant Other Observable Inputs Significant Unobservable Inputs Impairment Charge Total Assets: Investments in real estate ventures $ 1,202 $ — $ — $ — $ — |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s business segments for the three and six months ended June 30, 2024 and 2023 were Tobacco and Real Estate. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Financial information for the Company’s operations before taxes for the three and six months ended June 30, 2024 and 2023 were as follows: Real Corporate Tobacco Estate and Other Total Three months ended June 30, 2024 Revenues $ 371,914 $ — $ — $ 371,914 Operating income (loss) 102,927 (1) (56) (5,085) 97,786 Equity in losses from real estate ventures — (1,213) — (1,213) Depreciation and amortization 1,298 — 331 1,629 Three months ended June 30, 2023 Revenues $ 365,662 $ — $ — $ 365,662 Operating income (loss) 75,122 (2) 148 (3,627) 71,643 Equity in earnings from real estate ventures — 2,954 — 2,954 Depreciation and amortization 1,419 — 312 1,731 Six months ended June 30, 2024 Revenues $ 696,481 $ — $ — $ 696,481 Operating income (loss) 185,926 (3) (85) (10,274) 175,567 Equity in losses from real estate ventures — (11,934) — (11,934) Depreciation and amortization 2,610 — 652 3,262 Capital expenditures 3,300 — 87 3,387 Six months ended June 30, 2023 Revenues $ 699,807 $ — $ — $ 699,807 Operating income (loss) 153,721 (4) 210 (7,991) 145,940 Equity in earnings from real estate ventures — 1,061 — 1,061 Depreciation and amortization 2,796 — 627 3,423 Capital expenditures 7,576 — 214 7,790 (1) Operating income includes $73 of litigation settlement and judgment expense. (2) Operating income includes $18,105 of litigation settlement and judgment expense. (3) Operating income includes $169 received from a litigation settlement associated with the MSA (which reduced cost of sales) and $264 of litigation settlement and judgment expense. (4) Operating income includes $311 received from a litigation settlement associated with the MSA (which reduced cost of sales) and $18,375 of litigation settlement and judgment expense. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 54,178 | $ 38,089 | $ 88,978 | $ 72,830 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation : The condensed consolidated financial statements of Vector Group Ltd. (the “Company” or “Vector”) include the accounts of Liggett Group LLC (“Liggett”), Vector Tobacco LLC (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), New Valley LLC (“New Valley”) 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. |
Basis of Accounting | The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and, in management’s opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”). The consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year. |
Distributions and Dividends on Common Stock | Distributions and Dividends on Common Stock : |
New Accounting Pronouncements | New Accounting Pronouncements : ASUs to be adopted in future periods : In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The ASU requires that all public entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The ASU is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The ASU requires that all public entities improve the reportable segment disclosure primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. SEC Rule Changes: On March 6, 2024, the SEC passed rule changes that will require registrants to provide certain climate-related information in their registration statements and annual reports. The rules require information about a registrant's climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks will also include disclosure of a registrant's greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. On April 4, 2024, the SEC voluntarily stayed the rules pending the resolution of certain legal challenges. The Company is currently evaluating the impact of the rule changes. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Net Income for Purposes of Determining Basic and Diluted EPS Applicable to Common Shares | Net income for purposes of determining basic and diluted EPS applicable to common shares was as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income $ 54,178 $ 38,089 $ 88,978 $ 72,830 Income attributable to participating securities (1,355) (1,043) (2,256) (1,973) Net income available to common stockholders $ 52,823 $ 37,046 $ 86,722 $ 70,857 |
Schedule of Basic and Diluted EPS | Basic and diluted EPS were calculated using the following common shares: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted-average shares for basic EPS 153,740,654 153,214,347 153,595,959 153,114,197 Incremental shares related to stock options and non-vested restricted stock 229,116 109,203 211,087 129,085 Weighted-average shares for diluted EPS 153,969,770 153,323,550 153,807,046 153,243,282 |
Schedule of Computation of Diluted EPS Expense Associated With Non-vested Restricted Stock of the Common Shares | The following non-vested restricted stock was outstanding during the three and six months ended June 30, 2024 and 2023, respectively, and was not included in the computation of diluted EPS because the impact of the per share expense associated with the non-vested restricted stock was greater than the average market price of the common shares during the respective periods. Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted-average shares of non-vested restricted stock 375,000 — 412,775 — Weighted-average expense per share $ 12.90 $ — $ 12.90 $ — |
Schedule of Other, Net | Other, net consisted of: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Interest and dividend income $ 6,028 $ 4,916 $ 11,487 $ 8,851 Net (losses) gains recognized on investment securities (178) 213 1,018 207 Net periodic benefit cost other than the service costs (267) (339) (535) (678) Other income 2 1 — 31 Other, net $ 5,585 $ 4,791 $ 11,970 $ 8,411 |
Schedule of Other Assets | Other assets consisted of: June 30, December 31, 2023 Restricted assets $ 985 $ 1,619 Prepaid pension costs 46,725 45,292 Other assets 38,989 37,418 Total other assets $ 86,699 $ 84,329 |
Schedule of Other Current Liabilities | Other current liabilities consisted of: June 30, December 31, 2023 Accounts payable $ 6,148 $ 6,749 Accrued promotional expenses 58,067 51,146 Accrued excise and payroll taxes payable, net 17,386 13,144 Accrued interest 30,041 30,041 Accrued salaries and benefits 7,811 10,952 Allowance for sales returns 13,614 12,675 Other current liabilities 11,346 6,973 Total other current liabilities $ 144,413 $ 131,680 |
Schedule of Cash and Cash Equivalents | The components of “Cash, cash equivalents and restricted cash” in the condensed consolidated statements of cash flows were as follows: June 30, December 31, Cash and cash equivalents $ 390,758 $ 268,600 Restricted cash and cash equivalents included in other assets 875 1,506 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 391,633 $ 270,106 |
Schedule of Restricted Cash | The components of “Cash, cash equivalents and restricted cash” in the condensed consolidated statements of cash flows were as follows: June 30, December 31, Cash and cash equivalents $ 390,758 $ 268,600 Restricted cash and cash equivalents included in other assets 875 1,506 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 391,633 $ 270,106 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of: June 30, December 31, Leaf tobacco $ 57,852 $ 46,190 Other raw materials 10,463 9,372 Work-in-process 973 814 Finished goods 67,786 65,295 Inventories at current cost 137,074 121,671 LIFO adjustments: Leaf tobacco (21,616) (19,941) Other raw materials (2,636) (2,411) Work-in-process (110) (105) Finished goods (7,580) (7,255) Total LIFO adjustments (31,942) (29,712) $ 105,132 $ 91,959 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | Investment securities consisted of the following: June 30, December 31, 2023 Debt securities available for sale $ 102,849 $ 73,225 Equity securities at fair value: Marketable equity securities 14,103 14,286 Mutual funds invested in debt securities 24,031 23,424 Long-term investment securities at fair value (1) 29,435 29,402 Total equity securities at fair value 67,569 67,112 Total investment securities at fair value 170,418 140,337 Less: Long-term investment securities at fair value (1) 29,435 29,402 Current investment securities at fair value $ 140,983 $ 110,935 Long-term investment securities at fair value (1) $ 29,435 $ 29,402 Equity-method investments 17,354 17,358 Total long-term investments $ 46,789 $ 46,760 Equity securities and other long-term investments at cost (2) $ 7,555 $ 7,555 _____________________________ (1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820. (2) These assets are without readily determinable fair values that do not qualify for the NAV practical expedient and are included in Other assets on the condensed consolidated balance sheets. The components of debt securities available for sale as of June 30, 2024 were as follows: Cost Gross Gross Fair Marketable debt securities $ 102,843 $ 6 $ — $ 102,849 The components of debt securities available for sale at December 31, 2023 were as follows: Cost Gross Gross Fair Marketable debt securities $ 72,939 $ 286 $ — $ 73,225 The following is a summary of unrealized and realized net gains recognized in net income on equity securities at fair value during the three and six months ended June 30, 2024 and 2023, respectively: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net (losses) gains recognized on equity securities $ (99) $ 424 $ 1,121 $ 642 Less: Net (losses) gains recognized on equity securities sold (22) 155 73 271 Net unrealized (losses) gains recognized on equity securities still held at the reporting date $ (77) $ 269 $ 1,048 $ 371 |
Schedule of Net Gains (Losses) Recognized on Investment Securities | Net (losses) gains recognized on investment securities were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net (losses) gains recognized on equity securities $ (99) $ 424 $ 1,121 $ 642 Net gains (losses) recognized on debt securities available for sale — 1 1 (179) Impairment expense (79) (212) (104) (256) Net (losses) gains recognized on investment securities $ (178) $ 213 $ 1,018 $ 207 Gross realized gains and losses on debt securities available for sale were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Gross realized gains on sales $ — $ 1 $ 1 $ 5 Gross realized losses on sales — — — (184) Net gains (losses) recognized on debt securities available for sale $ — $ 1 $ 1 $ (179) Impairment expense $ (79) $ (212) $ (104) $ (256) |
Schedule of Maturity Dates of Debt Securities | The table below summarizes the maturity dates of debt securities available for sale as of June 30, 2024. Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. government securities $ 73,924 $ 39,145 $ 34,779 $ — Corporate securities 6,516 6,516 — — U.S. mortgage-backed securities 7,068 6,970 98 — Commercial paper 15,341 15,341 — — Total debt securities available for sale by maturity dates $ 102,849 $ 67,972 $ 34,877 $ — |
Schedule of Equity Method Investments | Equity-method investments consisted of the following: June 30, December 31, 2023 Mutual fund and hedge funds $ 17,354 $ 17,358 Equity in (losses) earnings from investments were: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Mutual fund and hedge funds $ (641) $ 959 $ 1,497 $ 800 |
NEW VALLEY LLC (Tables)
NEW VALLEY LLC (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule of Investments in Real Estate Ventures | The components of “Investments in real estate ventures” were as follows: Range of Ownership (1) June 30, 2024 December 31, 2023 Condominium and Mixed-Use Development 4.1% - 77.8% $ 93,976 $ 108,334 Apartment Buildings 1.5% - 50.0% 6,285 7,791 Hotels 0.4% - 49.0% 5 138 Commercial 1.6% - 49.0% 16,583 15,234 Investments in real estate ventures $ 116,849 $ 131,497 _____________________________ (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 because of a number of factors including potential dilution, financing or admission of additional partners. The components of New Valley’s contributions to its investments in real estate ventures were as follows: Six Months Ended June 30, 2024 2023 Condominium and Mixed-Use Development $ 3,649 $ 5,166 Apartment Buildings 249 115 Hotels 57 — Commercial 1,265 — Total contributions $ 5,220 $ 5,281 The components of distributions received by New Valley from its investments in real estate ventures were as follows: Six Months Ended June 30, 2024 2023 Condominium and Mixed-Use Development $ 10,029 $ 7,883 Commercial 329 179 Total distributions $ 10,358 $ 8,062 New Valley recognized equity in (losses) earnings from real estate ventures as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Condominium and Mixed-Use Development $ (441) $ 3,516 $ (10,401) $ 4,163 Apartment Buildings (541) (410) (1,756) (1,609) Hotels (26) (171) (189) (2,094) Commercial (205) 19 412 601 Equity in (losses) earnings from real estate ventures $ (1,213) $ 2,954 $ (11,934) $ 1,061 New Valley’s maximum exposure to loss from its investments in real estate ventures consisted of the net carrying value of the venture adjusted for any future capital commitments and/or guarantee arrangements. The maximum exposure to loss was as follows: June 30, 2024 Condominium and Mixed-Use Development $ 93,976 Apartment Buildings 6,285 Hotels 5 Commercial 16,583 Total maximum exposure to loss $ 116,849 |
NOTES PAYABLE, LONG-TERM DEBT_2
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable, Long-term Debt and Other Obligations | Notes payable, long-term debt and other obligations consisted of: June 30, December 31, Vector: 5.75% Senior Secured Notes due 2029 $ 875,000 $ 875,000 10.5% Senior Notes due 2026, net of unamortized discount of $1,453 and $1,719 517,239 516,973 Liggett: Equipment loans — 8 Notes payable, long-term debt and other obligations 1,392,239 1,391,981 Less: Debt issuance costs (17,973) (20,162) Total notes payable, long-term debt and other obligations 1,374,266 1,371,819 Less: Current maturities — (8) Amount due after one year $ 1,374,266 $ 1,371,811 |
Schedule of Non-Cash Interest Expense | Non-Cash Interest Expense — Vector : Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Amortization of debt discount, net $ 135 $ 121 $ 266 $ 238 Amortization of debt issuance costs 1,157 1,082 2,290 2,150 Loss on repurchase of 10.5% Senior Notes — 40 — 181 Total non-cash interest expense $ 1,292 $ 1,243 $ 2,556 $ 2,569 |
Schedule of Fair Value of Notes Payable and Long-term Debt | Fair Value of Notes Payable and Long-Term Debt : June 30, 2024 December 31, 2023 Carrying Fair Carrying Fair Value Value Value Value 5.75% Senior Secured Notes due 2029 $ 875,000 $ 818,589 $ 875,000 $ 800,126 10.5% Senior Notes due 2026 517,239 523,599 516,973 522,194 Liggett and other — — 8 8 Notes payable and long-term debt $ 1,392,239 $ 1,342,188 $ 1,391,981 $ 1,322,328 |
CONTINGENCIES (Tables)
CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Litigation Activity | The following table lists the number of Individual Actions by state: State Number Massachusetts 46 * Illinois 22 Oregon 7 Florida 7 US Virgin Islands - St. Croix 5 Nevada 4 Louisiana 2 New Mexico 2 Hawaii 1 California 1 * In addition to the active lawsuits pending in Massachusetts, Liggett has received 82 notices of intent to initiate litigation under the Massachusetts Consumer Protection Act, Chapter 93 A. Under Chapter 93 A, consumers must serve a 30-day demand letter (the “Demand”) before filing a complaint alleging unfair or deceptive business practices. The Demand must include an offer of settlement and the business served with the Demand is required to make a “reasonable” counteroffer within 30-days. Chapter 93 A contains a legal fee shifting provision. Liggett is in the process of investigating these claims and complying with the procedural requirements of Chapter 93 A. Of the 82 claims, Liggett has determined that the vast majority never used a brand manufactured by Liggett. The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2024 was as follows: Current Liabilities Non-Current Liabilities Amounts due under Master Settlement Agreement Litigation Accruals Total Amounts due under Master Settlement Agreement Litigation Accruals Total Balance as of January 1, 2024 $ 8,812 $ 351 $ 9,163 $ 8,747 $ 13,885 $ 22,632 Expenses 134,973 264 135,237 — — — NPM Settlement adjustment (5) — (5) (164) — (164) Change in MSA obligations capitalized as inventory 743 — 743 — — — Payments (14,489) (669) (15,158) — — — Reclassification to/(from) non-current liabilities 375 3,735 4,110 (375) (3,735) (4,110) Interest on withholding 791 263 1,054 — 561 561 Balance as of June 30, 2024 $ 131,200 $ 3,944 $ 135,144 $ 8,208 $ 10,711 $ 18,919 The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2023 was as follows: Current Liabilities Non-Current Liabilities Amounts due under Master Settlement Agreement Litigation Accruals Total Amounts due under Master Settlement Agreement Litigation Accruals Total Balance as of January 1, 2023 $ 14,838 $ 296 $ 15,134 $ 11,116 $ 16,117 $ 27,233 Expenses 135,989 18,375 154,364 — — — NPM Settlement adjustment — — — (311) — (311) Change in MSA obligations capitalized as inventory (35) — (35) — — — Payments (16,776) (635) (17,411) — — — Reclassification to/(from) non-current liabilities 1,635 3,707 5,342 (1,635) (3,707) (5,342) Interest on withholding — 112 112 — 791 791 Balance as of June 30, 2023 $ 135,651 $ 21,855 $ 157,506 $ 9,170 $ 13,201 $ 22,371 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The Company’s income tax expense consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Income before provision for income taxes $ 74,934 $ 53,183 $ 123,068 $ 101,433 Income tax expense using estimated annual effective income tax rate 20,756 14,997 34,090 28,603 Changes in effective tax rates — 97 — — Income tax expense $ 20,756 $ 15,094 $ 34,090 $ 28,603 |
INVESTMENTS AND FAIR VALUE ME_2
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Recurring Financial Assets and Liabilities Subject to Fair Value Measurements | The Company’s financial assets and liabilities subject to fair value measurements were as follows: Fair Value Measurements as of June 30, 2024 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 328,308 $ 328,308 $ — $ — Commercial paper (1) 43,705 — 43,705 — Investment securities at fair value Equity securities at fair value Marketable equity securities 14,103 14,103 — — Mutual funds invested in debt securities 24,031 24,031 — — Total equity securities at fair value 38,134 38,134 — — Debt securities available for sale U.S. government securities 73,924 — 73,924 — Corporate securities 6,516 — 6,516 — U.S. government and federal agency 7,068 — 7,068 — Commercial paper 15,341 — 15,341 — Total debt securities available for sale 102,849 — 102,849 — Total investment securities at fair value 140,983 38,134 102,849 — Long-term investments Long-term investment securities at fair value (2) 29,435 — — — Total $ 542,431 $ 366,442 $ 146,554 $ — (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets. (2) 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, 2023 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 214,515 $ 214,515 $ — $ — Commercial paper (1) 52,287 — 52,287 — Investment securities at fair value Equity securities at fair value Marketable equity securities 14,286 14,286 — — Mutual funds invested in debt securities 23,424 23,424 — — Total equity securities at fair value 37,710 37,710 — — Debt securities available for sale U.S. government securities 38,657 — 38,657 — Corporate securities 12,042 — 12,042 — U.S. government and federal agency 17,358 — 17,358 — Commercial paper 5,168 — 5,168 — Total debt securities available for sale 73,225 — 73,225 — Total investment securities at fair value 110,935 37,710 73,225 — Long-term investments Long-term investment securities at fair value (2) 29,402 — — — Total $ 407,139 $ 252,225 $ 125,512 $ — (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets. |
Schedule of Investment in Real Estate Ventures Subject to Nonrecurring Fair Value Measurements | The Company’s investments 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 Significant Other Observable Inputs Significant Unobservable Inputs Impairment Charge Total Assets: Investments in real estate ventures $ 1,202 $ — $ — $ — $ — |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for the Company's Operations Before Taxes | Financial information for the Company’s operations before taxes for the three and six months ended June 30, 2024 and 2023 were as follows: Real Corporate Tobacco Estate and Other Total Three months ended June 30, 2024 Revenues $ 371,914 $ — $ — $ 371,914 Operating income (loss) 102,927 (1) (56) (5,085) 97,786 Equity in losses from real estate ventures — (1,213) — (1,213) Depreciation and amortization 1,298 — 331 1,629 Three months ended June 30, 2023 Revenues $ 365,662 $ — $ — $ 365,662 Operating income (loss) 75,122 (2) 148 (3,627) 71,643 Equity in earnings from real estate ventures — 2,954 — 2,954 Depreciation and amortization 1,419 — 312 1,731 Six months ended June 30, 2024 Revenues $ 696,481 $ — $ — $ 696,481 Operating income (loss) 185,926 (3) (85) (10,274) 175,567 Equity in losses from real estate ventures — (11,934) — (11,934) Depreciation and amortization 2,610 — 652 3,262 Capital expenditures 3,300 — 87 3,387 Six months ended June 30, 2023 Revenues $ 699,807 $ — $ — $ 699,807 Operating income (loss) 153,721 (4) 210 (7,991) 145,940 Equity in earnings from real estate ventures — 1,061 — 1,061 Depreciation and amortization 2,796 — 627 3,423 Capital expenditures 7,576 — 214 7,790 (1) Operating income includes $73 of litigation settlement and judgment expense. (2) Operating income includes $18,105 of litigation settlement and judgment expense. (3) Operating income includes $169 received from a litigation settlement associated with the MSA (which reduced cost of sales) and $264 of litigation settlement and judgment expense. (4) Operating income includes $311 received from a litigation settlement associated with the MSA (which reduced cost of sales) and $18,375 of litigation settlement and judgment expense. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Income for Purposes of Determining Basic and Diluted EPS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Net income | $ 54,178 | $ 38,089 | $ 88,978 | $ 72,830 |
Income attributable to participating securities, basic | (1,355) | (1,043) | (2,256) | (1,973) |
Income attributable to participating securities, diluted | (1,355) | (1,043) | (2,256) | (1,973) |
Net income applicable to common shares, basic | 52,823 | 37,046 | 86,722 | 70,857 |
Net income applicable to common shares, diluted | $ 52,823 | $ 37,046 | $ 86,722 | $ 70,857 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Weighted-average shares for basic EPS (in shares) | 153,740,654 | 153,214,347 | 153,595,959 | 153,114,197 |
Incremental shares related to stock options and non-vested restricted stock (in shares) | 229,116 | 109,203 | 211,087 | 129,085 |
Weighted-average shares for diluted EPS (in shares) | 153,969,770 | 153,323,550 | 153,807,046 | 153,243,282 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Antidilutive Securities Excluded from Earnings Per Share (Details) - Non-vested restricted stock - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average shares of non-vested restricted stock (in shares) | 375,000 | 0 | 412,775 | 0 |
Weighted-average expense per share (in dollars per share) | $ 12.90 | $ 0 | $ 12.90 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Interest and dividend income | $ 6,028 | $ 4,916 | $ 11,487 | $ 8,851 |
Net (losses) gains recognized on investment securities | (178) | 213 | 1,018 | 207 |
Net periodic benefit cost other than the service costs | (267) | (339) | (535) | (678) |
Other income | 2 | 1 | 0 | 31 |
Other, net | $ 5,585 | $ 4,791 | $ 11,970 | $ 8,411 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Restricted assets | $ 985 | $ 1,619 |
Prepaid pension costs | 46,725 | 45,292 |
Other assets | 38,989 | 37,418 |
Total other assets | $ 86,699 | $ 84,329 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounting Policies [Abstract] | ||
Accounts payable | $ 6,148 | $ 6,749 |
Accrued promotional expenses | 58,067 | 51,146 |
Accrued excise and payroll taxes payable, net | 17,386 | 13,144 |
Accrued interest | 30,041 | 30,041 |
Accrued salaries and benefits | 7,811 | 10,952 |
Allowance for sales returns | 13,614 | 12,675 |
Other current liabilities | 11,346 | 6,973 |
Total other current liabilities | $ 144,413 | $ 131,680 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 390,758 | $ 268,600 | ||
Restricted cash and cash equivalents included in other assets | 875 | 1,506 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 391,633 | $ 270,106 | $ 356,700 | $ 250,374 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Related Party Transaction [Line Items] | |||||
Revenue | [1] | $ 371,914 | $ 365,662 | $ 696,481 | $ 699,807 |
Douglas Elliman | VIE | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from commissions received | 793 | 0 | 2,017 | 842 | |
Douglas Elliman | Transition Services Agreement | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 1,050 | 1,050 | 2,100 | 2,100 | |
Douglas Elliman | Aviation Agreements | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenue | $ 1,000 | $ 734 | $ 1,595 | $ 1,296 | |
[1]Revenues and cost of sales include federal excise taxes of $120,452, $126,750, $226,275 and $244,568 for the three and six months ended June 30, 2024 and 2023, respectively. |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory [Line Items] | ||
Leaf tobacco | $ 57,852 | $ 46,190 |
Other raw materials | 10,463 | 9,372 |
Work-in-process | 973 | 814 |
Finished goods | 67,786 | 65,295 |
Inventories at current cost | 137,074 | 121,671 |
LIFO adjustments: | (31,942) | (29,712) |
Inventory, net | 105,132 | 91,959 |
Leaf tobacco | ||
Inventory [Line Items] | ||
LIFO adjustments: | (21,616) | (19,941) |
Other raw materials | ||
Inventory [Line Items] | ||
LIFO adjustments: | (2,636) | (2,411) |
Work-in-process | ||
Inventory [Line Items] | ||
LIFO adjustments: | (110) | (105) |
Finished goods | ||
Inventory [Line Items] | ||
LIFO adjustments: | $ (7,580) | $ (7,255) |
INVENTORIES - Narrative (Detail
INVENTORIES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Inventory [Line Items] | ||
Capitalized MSA cost in finished goods inventory | $ 23,731 | $ 22,988 |
Inventories | Liggett | ||
Inventory [Line Items] | ||
Purchase commitments | 31,363 | |
Inventories | ||
Inventory [Line Items] | ||
Federal excise tax in inventory | $ 25,193 | $ 25,151 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities available for sale | $ 102,849 | $ 73,225 |
Long-term investment securities at fair value | 29,435 | 29,402 |
Total equity securities at fair value | 67,569 | 67,112 |
Total investment securities at fair value | 170,418 | 140,337 |
Current investment securities at fair value | 140,983 | 110,935 |
Equity-method investments | 17,354 | 17,358 |
Total long-term investments | 46,789 | 46,760 |
Equity securities and other long-term investments at cost | 7,555 | 7,555 |
Marketable equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities at fair value: | 14,103 | 14,286 |
Mutual funds invested in debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities at fair value: | $ 24,031 | $ 23,424 |
INVESTMENT SECURITIES - Net Gai
INVESTMENT SECURITIES - Net Gains (Losses) Recognized on Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net (losses) gains recognized on equity securities | $ (99) | $ 424 | $ 1,121 | $ 642 |
Net gains (losses) recognized on debt securities available for sale | 0 | 1 | 1 | (179) |
Impairment expense | (79) | (212) | (104) | (256) |
Net (losses) gains recognized on investment securities | $ (178) | $ 213 | $ 1,018 | $ 207 |
INVESTMENT SECURITIES - Compone
INVESTMENT SECURITIES - Components of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 102,849 | $ 73,225 |
Marketable debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 102,843 | 72,939 |
Gross Unrealized Gains | 6 | 286 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 102,849 | $ 73,225 |
INVESTMENT SECURITIES - Maturit
INVESTMENT SECURITIES - Maturity Dates of Marketable Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 102,849 | $ 73,225 |
Total debt securities available for sale by maturity dates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 102,849 | |
Under 1 Year | 67,972 | |
1 Year up to 5 Years | 34,877 | |
More than 5 Years | 0 | |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 73,924 | |
Under 1 Year | 39,145 | |
1 Year up to 5 Years | 34,779 | |
More than 5 Years | 0 | |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 6,516 | |
Under 1 Year | 6,516 | |
1 Year up to 5 Years | 0 | |
More than 5 Years | 0 | |
U.S. mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 7,068 | |
Under 1 Year | 6,970 | |
1 Year up to 5 Years | 98 | |
More than 5 Years | 0 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 15,341 | |
Under 1 Year | 15,341 | |
1 Year up to 5 Years | 0 | |
More than 5 Years | $ 0 |
INVESTMENT SECURITIES - Gross R
INVESTMENT SECURITIES - Gross Realized Gains and Losses on Debt Securities Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains on sales | $ 0 | $ 1 | $ 1 | $ 5 |
Gross realized losses on sales | 0 | 0 | 0 | (184) |
Net gains (losses) recognized on debt securities available for sale | 0 | 1 | 1 | (179) |
Impairment expense | $ (79) | $ (212) | $ (104) | $ (256) |
INVESTMENT SECURITIES - Unreali
INVESTMENT SECURITIES - Unrealized and Realized Net (Losses) and Gains Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net (losses) gains recognized on equity securities | $ (99) | $ 424 | $ 1,121 | $ 642 |
Less: Net (losses) gains recognized on equity securities sold | (22) | 155 | 73 | 271 |
Net unrealized (losses) gains recognized on equity securities still held at the reporting date | $ (77) | $ 269 | $ 1,048 | $ 371 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total long-term investments | $ 46,789,000 | $ 46,789,000 | $ 46,760,000 | ||
Cash distributions received | 4,750,000 | $ 0 | |||
In-transit redemptions | 151,000 | 151,000 | |||
Equity securities and other long-term investments at cost | 7,555,000 | 7,555,000 | $ 7,555,000 | ||
Impairment and other adjustments | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum | Mutual Fund And Hedge Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity-method ownership percentage | 8.13% | 8.13% | |||
Maximum | Mutual Fund And Hedge Funds | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity-method ownership percentage | 35.89% | 35.89% | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total long-term investments | $ 303,000 | $ 303,000 |
INVESTMENT SECURITIES - Equity-
INVESTMENT SECURITIES - Equity-Method Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments | $ 17,354 | $ 17,358 |
Mutual fund and hedge funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments | $ 17,354 | $ 17,358 |
INVESTMENT SECURITIES - Equity
INVESTMENT SECURITIES - Equity in Losses from Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in (losses) earnings from investments | $ (641) | $ 959 | $ 1,497 | $ 800 |
Mutual fund and hedge funds | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in (losses) earnings from investments | $ (641) | $ 959 | $ 1,497 | $ 800 |
NEW VALLEY LLC - Investment in
NEW VALLEY LLC - Investment in Real Estate Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | $ 116,849 | $ 116,849 | $ 131,497 | ||
Contributions to real estate ventures | 5,220 | $ 5,281 | |||
Equity in (losses) earnings from real estate ventures | (1,213) | $ 2,954 | (11,934) | 1,061 | |
New Valley | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 116,849 | 116,849 | 131,497 | ||
Contributions to real estate ventures | 5,220 | 5,281 | |||
Distributions from real estate ventures | 10,358 | 8,062 | |||
Equity in (losses) earnings from real estate ventures | (1,213) | 2,954 | (11,934) | 1,061 | |
Total maximum exposure to loss | 116,849 | 116,849 | |||
New Valley | Condominium and Mixed-Use Development | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 93,976 | 93,976 | 108,334 | ||
Contributions to real estate ventures | 3,649 | 5,166 | |||
Distributions from real estate ventures | 10,029 | 7,883 | |||
Equity in (losses) earnings from real estate ventures | (441) | 3,516 | (10,401) | 4,163 | |
Total maximum exposure to loss | 93,976 | 93,976 | |||
New Valley | Apartment Buildings | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 6,285 | 6,285 | 7,791 | ||
Contributions to real estate ventures | 249 | 115 | |||
Equity in (losses) earnings from real estate ventures | (541) | (410) | (1,756) | (1,609) | |
Total maximum exposure to loss | 6,285 | 6,285 | |||
New Valley | Hotels | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 5 | 5 | 138 | ||
Contributions to real estate ventures | 57 | 0 | |||
Equity in (losses) earnings from real estate ventures | (26) | (171) | (189) | (2,094) | |
Total maximum exposure to loss | 5 | 5 | |||
New Valley | Commercial | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 16,583 | 16,583 | $ 15,234 | ||
Contributions to real estate ventures | 1,265 | 0 | |||
Distributions from real estate ventures | 329 | 179 | |||
Equity in (losses) earnings from real estate ventures | (205) | $ 19 | 412 | $ 601 | |
Total maximum exposure to loss | $ 16,583 | $ 16,583 | |||
New Valley | Minimum | Investments In Real Estate Ventures | Condominium and Mixed-Use Development | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 4.10% | 4.10% | |||
New Valley | Minimum | Investments In Real Estate Ventures | Apartment Buildings | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 1.50% | 1.50% | |||
New Valley | Minimum | Investments In Real Estate Ventures | Hotels | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 0.40% | 0.40% | |||
New Valley | Minimum | Investments In Real Estate Ventures | Commercial | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 1.60% | 1.60% | |||
New Valley | Maximum | Investments In Real Estate Ventures | Condominium and Mixed-Use Development | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 77.80% | 77.80% | |||
New Valley | Maximum | Investments In Real Estate Ventures | Apartment Buildings | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 50% | 50% | |||
New Valley | Maximum | Investments In Real Estate Ventures | Hotels | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 49% | 49% | |||
New Valley | Maximum | Investments In Real Estate Ventures | Commercial | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 49% | 49% |
NEW VALLEY LLC - Narrative (Det
NEW VALLEY LLC - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) venture | Jun. 30, 2023 USD ($) venture | Dec. 31, 2023 USD ($) | |
Schedule of Investments [Line Items] | |||||
Distributions from real estate ventures | $ 329,000 | $ 3,954,000 | |||
Distributions from investments in real estate ventures | 10,029,000 | 4,109,000 | |||
Impairment of long-term investments | $ 1,202,000 | ||||
New Valley | |||||
Schedule of Investments [Line Items] | |||||
Distributions from real estate ventures | 329,000 | 3,954,000 | |||
Distributions from investments in real estate ventures | 10,029,000 | 4,109,000 | |||
Impairment of long-term investments | $ 0 | $ 0 | 7,030,000 | 1,202,000 | |
Interest costs capitalized | $ 1,233,000 | $ 1,071,000 | $ 2,424,000 | $ 2,128,000 | |
New Valley | Building | |||||
Schedule of Investments [Line Items] | |||||
Number of impaired real estate properties | venture | 2 | ||||
New Valley | Hotels | |||||
Schedule of Investments [Line Items] | |||||
Number of impaired real estate properties | venture | 1 |
NOTES PAYABLE, LONG-TERM DEBT_3
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS - Components of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Notes payable, long-term debt and other obligations | $ 1,392,239 | $ 1,391,981 |
Less: Debt issuance costs | (17,973) | (20,162) |
Total notes payable, long-term debt and other obligations | 1,374,266 | 1,371,819 |
Less: Current maturities | 0 | (8) |
Amount due after one year | $ 1,374,266 | 1,371,811 |
Senior Notes | 5.75% Senior Secured Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.75% | |
Notes payable, long-term debt and other obligations | $ 875,000 | 875,000 |
Senior Notes | 10.5% Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 10.50% | |
Unamortized discount | $ 1,453 | 1,719 |
Notes payable, long-term debt and other obligations | 517,239 | 516,973 |
Equipment loans | Liggett: | ||
Debt Instrument [Line Items] | ||
Notes payable, long-term debt and other obligations | $ 0 | $ 8 |
NOTES PAYABLE, LONG-TERM DEBT_4
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 30, 2023 | |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ 40,000 | $ 0 | $ 181,000 | |
Senior Notes | 5.75% Senior Secured Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.75% | 5.75% | |||
Senior Notes | 10.5% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 10.50% | 10.50% | |||
Repurchase principal | $ 8,352,000 | ||||
Loss on extinguishment of debt | $ 40,000 | $ 181,000 | |||
Revolving credit agreement | Liggett, Maple and Vector Tobacco | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 90,000,000 | $ 90,000,000 | |||
Interest rate | 7.56% | 7.56% | |||
Average undrawn commitments | 0.25% | ||||
Revolving credit agreement | Liggett, Maple and Vector Tobacco | SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Revolving credit agreement | Liggett, Maple and Vector Tobacco | Daily Simple SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Revolving credit agreement | Liggett | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 0 | $ 0 | |||
Current borrowing capacity | $ 89,600,000 | $ 89,600,000 |
NOTES PAYABLE, LONG-TERM DEBT_5
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS - Non-cash Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discount, net | $ 135 | $ 121 | $ 266 | $ 238 |
Amortization of debt issuance costs | 1,157 | 1,082 | 2,290 | 2,150 |
Total non-cash interest expense | $ 1,292 | 1,243 | $ 2,556 | 2,569 |
10.5% Senior Notes due 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 10.50% | 10.50% | ||
Loss on repurchase of 10.5% Senior Notes | $ 0 | $ 40 | $ 0 | $ 181 |
NOTES PAYABLE, LONG-TERM DEBT_6
NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS - Fair Value of Notes Payable and Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 1,392,239 | $ 1,391,981 |
Carrying Value | Senior Notes | 5.75% Senior Secured Notes due 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 875,000 | 875,000 |
Carrying Value | Senior Notes | 10.5% Senior Notes due 2026 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 517,239 | 516,973 |
Carrying Value | Liggett and other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 0 | 8 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,342,188 | 1,322,328 |
Fair Value | Senior Notes | 5.75% Senior Secured Notes due 2029 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 818,589 | 800,126 |
Fair Value | Senior Notes | 10.5% Senior Notes due 2026 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 523,599 | 522,194 |
Fair Value | Liggett and other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 0 | $ 8 |
CONTINGENCIES - Overview (Detai
CONTINGENCIES - Overview (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Liggett | ||
Loss Contingencies [Line Items] | ||
Tobacco product liability legal expenses and costs | $ 4,115 | $ 4,306 |
CONTINGENCIES - Schedule of Lit
CONTINGENCIES - Schedule of Litigation Activity (Details) | 6 Months Ended |
Jun. 30, 2024 case notice | |
Liggett | |
Loss Contingencies [Line Items] | |
Cases pending | 3 |
Liggett | Oregon | |
Loss Contingencies [Line Items] | |
Cases pending | 7 |
Liggett | New Mexico | |
Loss Contingencies [Line Items] | |
Cases pending | 2 |
Individual Actions Cases | Liggett | |
Loss Contingencies [Line Items] | |
Cases pending | 97 |
Individual Actions Cases | Liggett | Massachusetts | |
Loss Contingencies [Line Items] | |
Cases pending | 46 |
Individual Actions Cases | Liggett | Illinois | |
Loss Contingencies [Line Items] | |
Cases pending | 22 |
Individual Actions Cases | Liggett | Florida | |
Loss Contingencies [Line Items] | |
Cases pending | 7 |
Individual Actions Cases | Liggett | US Virgin Islands - St. Croix | |
Loss Contingencies [Line Items] | |
Cases pending | 5 |
Individual Actions Cases | Liggett | Nevada | |
Loss Contingencies [Line Items] | |
Cases pending | 4 |
Individual Actions Cases | Liggett | Louisiana | |
Loss Contingencies [Line Items] | |
Cases pending | 2 |
Individual Actions Cases | Liggett | Hawaii | |
Loss Contingencies [Line Items] | |
Cases pending | 1 |
Individual Actions Cases | Liggett | California | |
Loss Contingencies [Line Items] | |
Cases pending | 1 |
Massachusetts Consumer Protection Act | |
Loss Contingencies [Line Items] | |
Notices received | notice | 82 |
CONTINGENCIES - Engle Progeny C
CONTINGENCIES - Engle Progeny Cases (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Nov. 21, 1996 USD ($) | Oct. 31, 2013 USD ($) | Jun. 30, 2024 plaintiff case | |
Liggett | |||
Loss Contingencies [Line Items] | |||
Cases pending | 3 | ||
Engle Progeny Cases | |||
Loss Contingencies [Line Items] | |||
Amount of litigation settlement awarded to other party | $ | $ 145,000,000 | ||
Engle Progeny Cases | Liggett | |||
Loss Contingencies [Line Items] | |||
Amount of litigation settlement awarded to other party | $ | $ 790,000 | $ 110,000 | |
Cases with verdicts | 25 | ||
Cases with verdicts in favor of plaintiffs | 16 | ||
Cases with verdicts in favor of defendants | 9 | ||
Cases with verdicts in favor of plaintiffs and punitive damages awarded | 5 | ||
Engle Progeny Cases | Liggett and Vector Tobacco | |||
Loss Contingencies [Line Items] | |||
Cases pending | 6 | ||
Plaintiffs cases pending | plaintiff | 9 |
CONTINGENCIES - Engle Progeny S
CONTINGENCIES - Engle Progeny Settlements (Details) - Engle Progeny Cases $ in Thousands | 1 Months Ended | ||
Nov. 21, 1996 USD ($) | Feb. 28, 2015 | Oct. 31, 2013 USD ($) case | |
Loss Contingencies [Line Items] | |||
Amount of litigation settlement awarded to other party | $ 145,000,000 | ||
Liggett | |||
Loss Contingencies [Line Items] | |||
Cases settled | case | 4,900 | ||
Amount of litigation settlement awarded to other party | $ 790,000 | $ 110,000 | |
Litigation settlement amount paid in lump sum | 61,600 | ||
Litigation settlement, installment term | 14 years | ||
Litigation settlement amount of estimated future payments per annum | $ 4,000 |
CONTINGENCIES - Liggett Only Ca
CONTINGENCIES - Liggett Only Cases and Upcoming Trials (Details) - Liggett | Jun. 30, 2024 case |
Loss Contingencies [Line Items] | |
Cases pending | 3 |
Cain, Gerace, Goodwin, Kanuha, Malevitis and Morton | |
Loss Contingencies [Line Items] | |
Cases pending | 6 |
CONTINGENCIES - Class Actions a
CONTINGENCIES - Class Actions and Health Care Cost Recovery Actions (Details) | Jun. 30, 2024 case | Dec. 31, 2000 defendant |
Parsons v. AC & S Inc. | ||
Loss Contingencies [Line Items] | ||
Number of defendants in bankruptcy | defendant | 3 | |
Liggett and Other cigarette manufacturers | Class Actions | ||
Loss Contingencies [Line Items] | ||
Cases pending | 2 | |
Liggett | ||
Loss Contingencies [Line Items] | ||
Cases pending | 3 | |
Liggett | Crow Creek Sioux Tribe v. American Tobacco Company | ||
Loss Contingencies [Line Items] | ||
Cases pending | 1 |
CONTINGENCIES - MSA and Other S
CONTINGENCIES - MSA and Other State Settlement Agreements (Details) | 1 Months Ended | 6 Months Ended | 25 Months Ended | ||
Dec. 28, 2023 USD ($) | Apr. 30, 2024 USD ($) | Nov. 30, 1998 state | Jun. 30, 2024 USD ($) | Mar. 31, 1998 USD ($) state sponsorship | |
Liggett | |||||
Loss Contingencies [Line Items] | |||||
Number of states with settled litigation | state | 45 | ||||
Liggett and Vector Tobacco | Sales Revenue | Product Concentration Risk | |||||
Loss Contingencies [Line Items] | |||||
Concentration risk percentage | 5.70% | ||||
MSA | |||||
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 | ||||
MSA | Liggett | |||||
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 0 | ||||
Percentage of cigarettes sales exceeds market share exemption | 1.65% | ||||
MSA | Vector Tobacco | |||||
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 0 | ||||
Percentage of cigarettes sales exceeds market share exemption | 0.28% | ||||
MSA | Liggett and Vector Tobacco | |||||
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 277,500,000 | ||||
Payments for legal settlements | $ 263,000,000 | $ 14,489,000 |
CONTINGENCIES - Certain MSA Dis
CONTINGENCIES - Certain MSA Disputes (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) state | |
2003 NPM Adjustment | |
Loss Contingencies [Line Items] | |
Number of settling states with diligence not contested | state | 41 |
Combined allocable share, percentage | 82% |
MSA | Liggett and Vector Tobacco | Cost of Sales | |
Loss Contingencies [Line Items] | |
Amounts accrued | $ | $ 8,208 |
CONTINGENCIES - Other State Set
CONTINGENCIES - Other State Settlements (Details) - MSA | 1 Months Ended | 12 Months Ended | 25 Months Ended | ||||
Aug. 31, 2023 USD ($) | Jan. 31, 2016 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2010 USD ($) | Dec. 31, 2003 USD ($) | Dec. 31, 1999 state | Mar. 31, 1998 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Annual payment requirement | $ 9,000,000,000 | ||||||
Liggett | |||||||
Loss Contingencies [Line Items] | |||||||
Number of years expire after execution | 25 years | ||||||
Number of states not included in settlement agreement | state | 4 | ||||||
Liggett | Minnesota | |||||||
Loss Contingencies [Line Items] | |||||||
Annual payment requirement | $ 1,000,000 | $ 100,000 | |||||
Years annual payments required | 10 years | ||||||
Liggett | Florida | |||||||
Loss Contingencies [Line Items] | |||||||
Annual payment requirement | $ 250,000 | ||||||
Amount of litigation settlement awarded to other party | $ 1,200,000 | ||||||
Liggett | Mississippi | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 27,000,000 | ||||||
Liggett | Mississippi | Litigation Accruals | |||||||
Loss Contingencies [Line Items] | |||||||
Amount of litigation settlement awarded to other party | $ 18,000,000 |
CONTINGENCIES - Litigation Acti
CONTINGENCIES - Litigation Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Current Liabilities | ||
Current liabilities, beginning balance | $ 9,163 | $ 15,134 |
Expenses | 135,237 | 154,364 |
NPM Settlement adjustment | (5) | 0 |
Change in MSA obligations capitalized as inventory | 743 | (35) |
Payments | (15,158) | (17,411) |
Reclassification to/(from) non-current liabilities | 4,110 | 5,342 |
Interest on withholding | 1,054 | 112 |
Current liabilities, ending balance | 135,144 | 157,506 |
Non-Current Liabilities | ||
Noncurrent liabilities, beginning balance | 22,632 | 27,233 |
Expenses | 0 | 0 |
NPM Settlement adjustment | (164) | (311) |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | 0 | 0 |
Reclassification to/(from) non-current liabilities | (4,110) | (5,342) |
Interest on withholding | 561 | 791 |
Noncurrent liabilities, ending balance | 18,919 | 22,371 |
Amounts due under Master Settlement Agreement | ||
Current Liabilities | ||
Current liabilities, beginning balance | 8,812 | 14,838 |
Expenses | 134,973 | 135,989 |
NPM Settlement adjustment | (5) | 0 |
Change in MSA obligations capitalized as inventory | 743 | (35) |
Payments | (14,489) | (16,776) |
Reclassification to/(from) non-current liabilities | 375 | 1,635 |
Interest on withholding | 791 | 0 |
Current liabilities, ending balance | 131,200 | 135,651 |
Non-Current Liabilities | ||
Noncurrent liabilities, beginning balance | 8,747 | 11,116 |
Expenses | 0 | 0 |
NPM Settlement adjustment | (164) | (311) |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | 0 | 0 |
Reclassification to/(from) non-current liabilities | (375) | (1,635) |
Interest on withholding | 0 | 0 |
Noncurrent liabilities, ending balance | 8,208 | 9,170 |
Litigation Accruals | ||
Current Liabilities | ||
Current liabilities, beginning balance | 351 | 296 |
Expenses | 264 | 18,375 |
NPM Settlement adjustment | 0 | 0 |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | (669) | (635) |
Reclassification to/(from) non-current liabilities | 3,735 | 3,707 |
Interest on withholding | 263 | 112 |
Current liabilities, ending balance | 3,944 | 21,855 |
Non-Current Liabilities | ||
Noncurrent liabilities, beginning balance | 13,885 | 16,117 |
Expenses | 0 | 0 |
NPM Settlement adjustment | 0 | 0 |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | 0 | 0 |
Reclassification to/(from) non-current liabilities | (3,735) | (3,707) |
Interest on withholding | 561 | 791 |
Noncurrent liabilities, ending balance | $ 10,711 | $ 13,201 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income before provision for income taxes | $ 74,934 | $ 53,183 | $ 123,068 | $ 101,433 |
Income tax expense using estimated annual effective income tax rate | 20,756 | 14,997 | 34,090 | 28,603 |
Changes in effective tax rates | 0 | 97 | 0 | 0 |
Income tax expense | $ 20,756 | $ 15,094 | $ 34,090 | $ 28,603 |
INVESTMENTS AND FAIR VALUE ME_3
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Total debt securities available for sale | $ 102,849 | $ 73,225 |
Total investment securities at fair value | 140,983 | 110,935 |
Long-term investment securities at fair value | 29,435 | 29,402 |
Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 14,103 | 14,286 |
Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 24,031 | 23,424 |
U.S. government securities | ||
Assets: | ||
Total debt securities available for sale | 73,924 | |
Corporate securities | ||
Assets: | ||
Total debt securities available for sale | 6,516 | |
U.S. government and federal agency | ||
Assets: | ||
Total debt securities available for sale | 7,068 | |
Recurring | ||
Assets: | ||
Total investment securities at fair value | 140,983 | 110,935 |
Long-term investment securities at fair value | 29,435 | 29,402 |
Total | 542,431 | 407,139 |
Recurring | Total equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 38,134 | 37,710 |
Recurring | Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 14,103 | 14,286 |
Recurring | Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 24,031 | 23,424 |
Recurring | Total debt securities available for sale | ||
Assets: | ||
Total debt securities available for sale | 102,849 | 73,225 |
Recurring | U.S. government securities | ||
Assets: | ||
Total debt securities available for sale | 73,924 | 38,657 |
Recurring | Corporate securities | ||
Assets: | ||
Total debt securities available for sale | 6,516 | 12,042 |
Recurring | U.S. government and federal agency | ||
Assets: | ||
Total debt securities available for sale | 7,068 | 17,358 |
Recurring | Commercial paper | ||
Assets: | ||
Total debt securities available for sale | 15,341 | 5,168 |
Recurring | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 328,308 | 214,515 |
Recurring | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 43,705 | 52,287 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total investment securities at fair value | 38,134 | 37,710 |
Long-term investment securities at fair value | 0 | 0 |
Total | 366,442 | 252,225 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 38,134 | 37,710 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 14,103 | 14,286 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 24,031 | 23,424 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total debt securities available for sale | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government securities | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and federal agency | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 328,308 | 214,515 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total investment securities at fair value | 102,849 | 73,225 |
Long-term investment securities at fair value | 0 | 0 |
Total | 146,554 | 125,512 |
Recurring | Significant Other Observable Inputs (Level 2) | Total equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Total debt securities available for sale | ||
Assets: | ||
Total debt securities available for sale | 102,849 | 73,225 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. government securities | ||
Assets: | ||
Total debt securities available for sale | 73,924 | 38,657 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets: | ||
Total debt securities available for sale | 6,516 | 12,042 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. government and federal agency | ||
Assets: | ||
Total debt securities available for sale | 7,068 | 17,358 |
Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Total debt securities available for sale | 15,341 | 5,168 |
Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 43,705 | 52,287 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total investment securities at fair value | 0 | 0 |
Long-term investment securities at fair value | 0 | 0 |
Total | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Total equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Total debt securities available for sale | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government securities | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and federal agency | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Total debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | $ 0 | $ 0 |
INVESTMENTS AND FAIR VALUE ME_4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Nonrecurring Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures impairment charge | $ 1,202 | |
Investments in real estate ventures, fair value | 131,497 | $ 116,849 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures, fair value | 0 | |
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, fair value | 0 | |
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, fair value | 0 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures, fair value | $ 0 |
INVESTMENTS AND FAIR VALUE ME_5
INVESTMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Impairment of long-term investments | $ 1,202 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 371,914 | $ 365,662 | $ 696,481 | $ 699,807 |
Operating income (loss) | 97,786 | 71,643 | 175,567 | 145,940 |
Equity in losses from real estate ventures | (1,213) | 2,954 | (11,934) | 1,061 |
Depreciation and amortization | 1,629 | 1,731 | 3,262 | 3,423 |
Capital expenditures | 3,387 | 7,790 | ||
Litigation settlement and judgment expense | 73 | 18,105 | 264 | 18,375 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating income (loss) | (5,085) | (3,627) | (10,274) | (7,991) |
Equity in losses from real estate ventures | 0 | 0 | 0 | 0 |
Depreciation and amortization | 331 | 312 | 652 | 627 |
Capital expenditures | 87 | 214 | ||
Tobacco | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 371,914 | 365,662 | 696,481 | 699,807 |
Operating income (loss) | 102,927 | 75,122 | 185,926 | 153,721 |
Equity in losses from real estate ventures | 0 | 0 | 0 | 0 |
Depreciation and amortization | 1,298 | 1,419 | 2,610 | 2,796 |
Capital expenditures | 3,300 | 7,576 | ||
Tobacco | Operating Segments | MSA | ||||
Segment Reporting Information [Line Items] | ||||
Litigation settlement received | 169 | 311 | ||
Litigation settlement and judgment expense | 73 | 18,105 | 264 | 18,375 |
Real estate | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating income (loss) | (56) | 148 | (85) | 210 |
Equity in losses from real estate ventures | (1,213) | 2,954 | (11,934) | 1,061 |
Depreciation and amortization | $ 0 | $ 0 | 0 | 0 |
Capital expenditures | $ 0 | $ 0 |