Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 $0.10 per share | |
Trading Symbol | VGR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 153,959,427 | |
Entity Central Index Key | 0000059440 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 490,390 | $ 352,842 |
Investment securities at fair value | 157,001 | 135,585 |
Accounts receivable - trade, net | 51,463 | 40,711 |
Inventories | 93,161 | 97,545 |
Other current assets | 46,171 | 37,220 |
Total current assets | 838,186 | 663,903 |
Property, plant and equipment, net | 72,804 | 77,988 |
Investments in real estate, net | 9,608 | 15,631 |
Long-term investments (includes $35,534 and $34,218 at fair value) | 55,362 | 52,528 |
Investments in real estate ventures | 76,192 | 85,400 |
Operating lease right-of-use assets | 138,057 | 145,356 |
Goodwill and other intangible assets, net | 207,497 | 207,577 |
Other assets | 98,671 | 95,026 |
Total assets | 1,496,377 | 1,343,409 |
Current liabilities: | ||
Current portion of notes payable and long-term debt | 12,558 | 12,557 |
Current payments due under the Master Settlement Agreement | 89,488 | 38,767 |
Income taxes payable, net | 13,834 | 5,847 |
Current operating lease liability | 26,625 | 27,207 |
Other current liabilities | 223,498 | 198,937 |
Total current liabilities | 366,003 | 283,315 |
Notes payable, long-term debt and other obligations, less current portion | 1,402,827 | 1,393,729 |
Non-current employee benefits | 66,829 | 66,616 |
Deferred income taxes, net | 36,602 | 32,456 |
Non-current operating lease liability | 144,487 | 154,199 |
Payments due under the Master Settlement Agreement | 13,224 | 17,933 |
Other liabilities | 58,450 | 54,848 |
Total liabilities | 2,088,422 | 2,003,096 |
Commitments and contingencies (Note 9) | ||
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, 154,156,100 and 153,324,629 shares issued and outstanding | 15,416 | 15,332 |
Additional paid-in capital | 5,048 | 0 |
Accumulated deficit | (591,911) | (653,945) |
Accumulated other comprehensive loss | (20,598) | (21,074) |
Total Vector Group Ltd. stockholders' deficiency | (592,045) | (659,687) |
Non-controlling interest | 0 | 0 |
Total stockholders' deficiency | (592,045) | (659,687) |
Total liabilities and stockholders' deficiency | $ 1,496,377 | $ 1,343,409 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Long-term investments, fair value | $ 35,534 | $ 34,218 |
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) | 154,156,100 | 153,324,629 |
Common stock, shares outstanding (in shares) | 154,156,100 | 153,324,629 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Revenues: | |||||
Total revenues | $ 729,529,000 | $ 445,760,000 | $ 1,273,293,000 | $ 900,248,000 | |
Cost of sales: | |||||
Total cost of sales | 500,410,000 | 304,885,000 | 863,952,000 | 615,508,000 | |
Operating, selling, administrative and general expenses | 92,043,000 | 71,064,000 | 182,057,000 | 161,581,000 | |
Litigation settlement and judgment expense | 0 | 53,000 | 5,000 | 53,000 | |
Impairments of goodwill and intangible assets | 0 | 0 | 0 | 58,252,000 | |
Restructuring charges | 0 | 2,961,000 | 0 | 2,961,000 | |
Operating income | 137,076,000 | 66,797,000 | 227,279,000 | 61,893,000 | |
Other income (expenses): | |||||
Interest expense | (28,115,000) | (29,358,000) | (56,866,000) | (64,985,000) | |
Loss on extinguishment of debt | 0 | 0 | (21,362,000) | 0 | |
Change in fair value of derivatives embedded within convertible debt | 0 | 1,669,000 | 0 | 4,999,000 | |
Equity in earnings from investments | 941,000 | 2,207,000 | 1,518,000 | 52,359,000 | |
Equity in earnings (losses) from real estate ventures | 16,685,000 | (12,260,000) | 18,274,000 | (18,765,000) | |
Other, net | 5,578,000 | 7,635,000 | 8,332,000 | (3,020,000) | |
Income before provision for income taxes | 132,165,000 | 36,690,000 | 177,175,000 | 32,481,000 | |
Income tax expense | 38,860,000 | 10,916,000 | 51,913,000 | 9,938,000 | |
Net income | 93,305,000 | 25,774,000 | 125,262,000 | 22,543,000 | |
Net income attributed to non-controlling interest | 0 | 0 | 0 | 0 | |
Net income attributed to Vector Group Ltd. | $ 93,305,000 | $ 25,774,000 | $ 125,262,000 | $ 22,543,000 | |
Per basic common share: | |||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.61 | $ 0.17 | $ 0.81 | $ 0.14 | |
Per diluted common share: | |||||
Net income applicable to common shares attributed to Vector Group Ltd. (in dollars per share) | $ 0.61 | $ 0.16 | $ 0.81 | $ 0.14 | |
Tobacco | |||||
Revenues: | |||||
Tobacco | [1] | $ 329,496,000 | $ 312,510,000 | $ 597,959,000 | $ 599,579,000 |
Total revenues | 597,959,000 | ||||
Cost of sales: | |||||
Total cost of sales | [1] | 206,145,000 | 214,067,000 | 370,176,000 | 411,357,000 |
Tobacco | Operating Segments | |||||
Revenues: | |||||
Total revenues | 329,496,000 | 312,510,000 | 599,579,000 | ||
Cost of sales: | |||||
Litigation settlement and judgment expense | 53,000 | 5,000 | 53,000 | ||
Operating income | 103,179,000 | 79,309,000 | 184,778,000 | 148,495,000 | |
Other income (expenses): | |||||
Equity in earnings (losses) from real estate ventures | 0 | 0 | 0 | 0 | |
Real estate | |||||
Revenues: | |||||
Real estate | 400,033,000 | 133,250,000 | 675,334,000 | 300,669,000 | |
Cost of sales: | |||||
Total cost of sales | 294,265,000 | 90,818,000 | 493,776,000 | 204,151,000 | |
Real estate | Operating Segments | |||||
Revenues: | |||||
Total revenues | 400,033,000 | 133,250,000 | 675,334,000 | 300,669,000 | |
Cost of sales: | |||||
Impairments of goodwill and intangible assets | 58,252,000 | ||||
Restructuring charges | 2,961,000 | 2,961,000 | |||
Operating income | 42,362,000 | (6,875,000) | 57,622,000 | (74,350,000) | |
Other income (expenses): | |||||
Equity in earnings (losses) from real estate ventures | $ 16,685,000 | $ (12,260,000) | $ 18,274,000 | $ (18,765,000) | |
[1] | Revenues and cost of sales include federal excise taxes of $118,735, $121,170, $216,449, and $234,309 for the three and six months ended June 30, 2021 and 2020, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Tax portion of revenues and cost of goods sold | $ 118,735 | $ 121,170 | $ 216,449 | $ 234,309 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 93,305 | $ 25,774 | $ 125,262 | $ 22,543 |
Net unrealized (losses) gains on investment securities available for sale: | ||||
Change in net unrealized (losses) gains | (122) | 644 | (304) | (20) |
Net unrealized losses (gains) reclassified into net income | 34 | (70) | (7) | 433 |
Net unrealized (losses) gains on investment securities available for sale | (88) | 574 | (311) | 413 |
Net change in pension-related amounts: | ||||
Amortization of loss | 481 | 463 | 963 | 927 |
Other comprehensive income | 393 | 1,037 | 652 | 1,340 |
Income tax effect on: | ||||
Change in net unrealized (losses) gains on investment securities | 33 | (174) | 82 | 6 |
Net unrealized losses (gains) reclassified into net income on investment securities | (9) | 19 | 2 | (117) |
Pension-related amounts | (130) | (125) | (260) | (250) |
Income tax provision on other comprehensive income | (106) | (280) | (176) | (361) |
Other comprehensive income, net of tax | 287 | 757 | 476 | 979 |
Comprehensive income | 93,592 | 26,531 | 125,738 | 23,522 |
Comprehensive income attributed to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributed to Vector Group Ltd. | $ 93,592 | $ 26,531 | $ 125,738 | $ 23,522 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Deficiency - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 153,324,629 | |||
Beginning Balance | $ (656,499) | $ (718,999) | $ (659,687) | $ (685,016) |
Net income | 93,305 | 25,774 | 125,262 | 22,543 |
Total other comprehensive income | 287 | 757 | 476 | 979 |
Distributions and dividends on common stock | (31,610) | (31,600) | (63,228) | (62,121) |
Restricted stock grants | 0 | 0 | 0 | 0 |
Surrender of shares in connection with restricted stock vesting | (608) | (62) | (608) | (62) |
Issuance of common stock | 52,563 | 52,563 | ||
Stock-based compensation | $ 3,080 | 2,283 | $ 5,740 | 4,541 |
Distributions to non-controlling interest | (448) | |||
Other | 80 | 80 | ||
Ending Balance (in shares) | 154,156,100 | 154,156,100 | ||
Ending Balance | $ (592,045) | $ (669,204) | $ (592,045) | $ (669,204) |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 154,194,629 | 148,084,900 | 153,324,629 | 148,084,900 |
Beginning Balance | $ 15,419 | $ 14,808 | $ 15,332 | $ 14,808 |
Restricted stock grant (in shares) | 3,500 | 405,000 | 873,500 | 405,000 |
Restricted stock grants | $ 1 | $ 41 | $ 88 | $ 41 |
Surrender of shares in connection with restricted stock vesting (in shares) | (42,029) | (5,423) | (42,029) | (5,423) |
Surrender of shares in connection with restricted stock vesting | $ (4) | $ (1) | $ (4) | $ (1) |
Issuance of common stock (in shares) | 5,000,000 | 5,000,000 | ||
Issuance of common stock | $ 500 | $ 500 | ||
Ending Balance (in shares) | 154,156,100 | 153,484,477 | 154,156,100 | 153,484,477 |
Ending Balance | $ 15,416 | $ 15,348 | $ 15,416 | $ 15,348 |
Additional Paid-In | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 2,573 | 0 | 0 | 0 |
Distributions and dividends on common stock | (54,244) | (56,502) | ||
Restricted stock grants | (1) | (41) | (88) | (41) |
Surrender of shares in connection with restricted stock vesting | (604) | (61) | (604) | (61) |
Issuance of common stock | 52,063 | 52,063 | ||
Stock-based compensation | 3,080 | 2,283 | 5,740 | 4,541 |
Ending Balance | 5,048 | 0 | 5,048 | 0 |
Accumulated Deficit | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (653,606) | (712,221) | (653,945) | (678,464) |
Net income | 93,305 | 25,774 | 125,262 | 22,543 |
Distributions and dividends on common stock | (31,610) | 22,644 | (63,228) | (5,619) |
Other | 80 | 80 | ||
Ending Balance | (591,911) | (663,723) | (591,911) | (663,723) |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (20,885) | (21,586) | (21,074) | (21,808) |
Total other comprehensive income | 287 | 757 | 476 | 979 |
Ending Balance | (20,598) | (20,829) | (20,598) | (20,829) |
Non-controlling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 0 | 0 | 0 | 448 |
Distributions to non-controlling interest | (448) | |||
Ending Balance | $ 0 | $ 0 | $ 0 | 0 |
Impact of adoption of new accounting standards | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (2,263) | |||
Impact of adoption of new accounting standards | Accumulated Deficit | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ (2,263) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Deficiency (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
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, 2021 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 221,300 | $ 341,329 |
Cash flows from investing activities: | ||
Sale of investment securities | 23,477 | 19,555 |
Maturities of investment securities | 36,461 | 31,574 |
Purchase of investment securities | (74,805) | (16,867) |
Proceeds from sale or liquidation of long-term investments | 8,009 | 23,407 |
Purchase of long-term investments | (6,963) | (5,238) |
Investments in real estate ventures | (9,902) | (3,858) |
Distributions from investments in real estate ventures | 11,163 | 5,172 |
Increase in cash surrender value of life insurance policies | (1,348) | (751) |
(Increase) decrease in restricted assets | (5) | 87 |
Capital expenditures | (3,055) | (6,242) |
Paydowns of investment securities | 302 | 415 |
Investments in real estate, net | 0 | (679) |
Net cash (used in) provided by investing activities | (16,666) | 46,575 |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 875,000 | 531 |
Deferred financing costs | (20,109) | 0 |
Repayments of debt | (856,316) | (172,467) |
Borrowings under revolver | 7,699 | 130,641 |
Repayments on revolver | (7,699) | (165,593) |
Dividends and distributions on common stock | (63,738) | (63,478) |
Distributions to non-controlling interest | 0 | (448) |
Proceeds from issuance of common stock | 0 | 52,563 |
Other | (51) | 5 |
Net cash used in financing activities | (65,214) | (218,246) |
Net increase in cash, cash equivalents and restricted cash | 139,420 | 169,658 |
Cash, cash equivalents and restricted cash, beginning of period | 365,677 | 379,476 |
Cash, cash equivalents and restricted cash, end of period | $ 505,097 | $ 549,134 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), New Valley LLC (“New Valley”) and other less significant subsidiaries. New Valley includes the accounts of Douglas Elliman Realty, LLC (“Douglas Elliman”) and other less significant subsidiaries. All significant intercompany balances and transactions have been eliminated. Liggett and Vector Tobacco are engaged in the manufacture and sale of cigarettes in the United States. Liggett Vector Brands coordinates Liggett and Vector Tobacco’s sales and marketing efforts. Certain references to “Liggett” refer to the Company’s tobacco operations, including the business of Liggett and Vector Tobacco, unless otherwise specified. New Valley is engaged in the real estate business. 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 of the 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, 2020 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. Certain reclassifications have been made to the 2020 financial information to conform to the 2021 presentation. Credit loss income (expense) has been reclassified from Other (expense) income as components of Other, net. (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. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in capital to the extent paid-in-capital is available and then to accumulated deficit. (c) Earnings Per Share (“EPS”) : Net income for purposes of determining basic EPS was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income attributed to Vector Group Ltd. $ 93,305 $ 25,774 $ 125,262 $ 22,543 Income attributed to participating securities (952) (707) (1,686) (1,268) Net income applicable to common shares attributed to Vector Group Ltd. $ 92,353 $ 25,067 $ 123,576 $ 21,275 Net income for purposes of determining diluted EPS was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income attributed to Vector Group Ltd. $ 93,305 $ 25,774 $ 125,262 $ 22,543 Income attributable to 5.50% Variable Interest Senior Convertible Notes — (375) — — Income attributed to participating securities (952) (707) (1,686) (1,268) Net income applicable to common shares attributed to Vector Group Ltd. $ 92,353 $ 24,692 $ 123,576 $ 21,275 Basic and diluted EPS were calculated using the following common shares: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted-average shares for basic EPS 152,285,182 149,379,306 152,267,410 148,189,710 Plus incremental shares related to convertible debt — 1,379,454 — — Plus incremental shares related to stock options and non-vested restricted stock 282,313 88,100 206,381 85,701 Weighted-average shares for diluted EPS 152,567,495 150,846,860 152,473,791 148,275,411 The following non-vested restricted stock were outstanding during the three and six months ended June 30, 2021 and 2020, but were not included in the computation of diluted EPS because the impact of the per share expense associated with the restricted stock was greater than the average market price of the common shares during the respective periods. The following shares issuable upon the conversion of convertible debt were outstanding during the three and six months ended June 30, 2020, but were not included in the computation of diluted EPS because the impact of the common shares issuable under the convertible debt were anti-dilutive to EPS. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted-average shares of non-vested restricted stock — 625,122 — 625,122 Weighted-average expense per share $ — $ 19.54 $ — $ 19.54 Weighted-average number of shares issuable upon conversion of debt — — — 4,874,072 Weighted-average conversion price $ — $ — $ — $ 20.27 (d) Restructuring : During 2020, in response to the coronavirus pandemic (“COVID-19”), the Company's Real Estate segment, including Douglas Elliman, underwent a restructuring by realigning its administrative support function and office locations as well as adjusting its business model to more efficiently serve its clients. This included a reduction of brokerage personnel by approximately 25% at Douglas Elliman. For the three and six months ended June 30, 2021, there were no restructuring charges. As of December 31, 2020, there was no accrual for restructuring charges. The following table summarizes amounts expensed for the three and six months ended June 30, 2020: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Cash Charges: Employee severance and benefits $ 1,599 $ 1,599 Other restructuring expenses 218 218 1,817 1,817 Non-Cash: Loss on fixed assets associated with consolidation of sales offices 1,144 1,144 Total restructuring charges $ 2,961 $ 2,961 All amounts expensed for the three and six months ended June 30, 2020 are included as Restructuring charges in the Company’s condensed consolidated statements of operations and are all attributable to the Company’s Real Estate segment. Severance and benefits expensed for the three and six months ended June 30, 2020 relate entirely to a reduction in administrative positions. The following table presents the activity under the Real Estate segment restructuring plan for the six months ended June 30, 2020: Employee Severance and Benefits Other Non-Cash Loss on Fixed Assets Total Accrual balance as of January 1, 2020 $ — $ — $ — $ — Restructuring charges 1,599 218 1,144 2,961 Utilized (1,239) — (1,144) (2,383) Accrual balance as of June 30, 2020 $ 360 $ 218 $ — $ 578 (e) Investments in Real Estate Ventures: In accounting for its investments in real estate ventures, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as (a) entities in which the equity investment at risk is not sufficient to finance its activities without additional subordinated financial support; (b) as a group, the equity investors at risk lack 1) the power to direct the activities of a legal entity that most significantly impact the entity’s economic performance, 2) the obligation to absorb the expected losses of the entity, or 3) the right to receive the expected residual returns of the entity; or (c) as a group, the equity investors have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company’s interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s). Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the VIE, any unfunded capital commitments to the VIE, and, in some cases, guarantees in connection with debt on the specific project. The Company’s maximum exposure to loss in its investment in consolidated VIEs is limited to its investment, which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary. On a quarterly basis, the Company evaluates its investments in real estate ventures to determine if there are indicators of impairment. If so, the Company further investigates to determine if an impairment has occurred and whether such impairment is considered temporary or other than temporary. The Company believes that the assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. (f) Other, net : Other, net consisted of: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Interest and dividend income $ 525 $ 968 $ 1,136 $ 3,648 Net gains (losses) recognized on investment securities 8,469 4,781 10,918 (7,459) Net periodic benefit cost other than the service costs (243) (454) (487) (909) Credit loss income (expense) — 1,128 — (432) Other (expense) income (3,173) 1,212 (3,235) 2,132 Other, net $ 5,578 $ 7,635 $ 8,332 $ (3,020) (g) Other Assets : Other assets consisted of: June 30, December 31, 2020 Restricted assets $ 4,170 $ 3,456 Prepaid pension costs 35,751 35,209 Contract assets, net 23,538 24,002 Other assets 35,212 32,359 Total other assets $ 98,671 $ 95,026 (h) Other Current Liabilities : Other current liabilities consisted of: June 30, December 31, 2020 Accounts payable $ 10,718 $ 12,846 Accrued promotional expenses 49,269 45,579 Accrued excise and payroll taxes payable, net 22,973 13,849 Accrued interest 30,998 31,624 Commissions payable 38,832 25,615 Accrued salaries and benefits 25,517 27,104 Contract liabilities 7,507 7,633 Allowance for sales returns 7,414 7,356 Other current liabilities 30,270 27,331 Total other current liabilities $ 223,498 $ 198,937 (i) 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 $ 490,390 $ 352,842 Restricted cash and cash equivalents included in other current assets 11,364 10,374 Restricted cash and cash equivalents included in other assets 3,343 2,461 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 505,097 $ 365,677 Amounts included in current restricted assets and non-current restricted assets represent cash and cash equivalents required to be deposited into escrow for bonds required to appeal adverse product liability judgments, amounts required for letters of credit related to office leases, and certain deposit requirements for banking arrangements. The restrictions related to the appellate bonds will remain in place until the appeal process has been completed. The restrictions related to the letters of credit will remain in place for the duration of the respective lease. The restrictions related to the banking arrangements will remain in place for the duration of the arrangement. (j) New Accounting Pronouncements : Accounting Standards Updates (“ASU”) adopted in 2021 : In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This update simplifies various aspects related to accounting for income taxes, removes certain exceptions to the general principles in Accounting Standards Codification (“ASC”) 740, and clarifies and amends existing guidance to improve consistent application. ASU No. 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. Adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”). The new standard clarifies the interaction of accounting for the transition into and out of the equity method. The new standard also clarifies the accounting for measuring certain purchased options and forward contracts to acquire investments. The ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. ASUs to be adopted in future periods: In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04” ). This ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance is effective for all entities for contract modifications beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01 to clarify the scope of the guidance and allow certain aspects of Topic 848 to be applied to all derivative instruments that undergo a modification of the interest rate used for discounting, margining or contract price alignment as a result of the reference reform. The Company has not yet determined the extent to which it will utilize these expedients and exceptions should a modification occur. The Company does not anticipate an impact on its condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Disaggregation of Revenue In the following table, revenue is disaggregated by major product line for the Tobacco segment: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Tobacco Segment Revenues: Core Discount Brands - Eagle 20’s, Pyramid , Montego , Grand Prix , Liggett Select , and Eve $ 313,264 $ 295,388 $ 566,520 $ 564,393 Other Brands 16,232 17,122 31,439 35,186 Total tobacco revenues $ 329,496 $ 312,510 $ 597,959 $ 599,579 In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment: Three Months Ended June 30, 2021 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 105,852 $ 66,419 $ 121,966 $ 51,518 $ 345,755 Commission and other brokerage income - development marketing 15,919 — 14,078 281 30,278 Property management revenue 9,762 139 — — 9,901 Escrow and title fees 1,413 392 — 4,236 6,041 Total Douglas Elliman revenue 132,946 66,950 136,044 56,035 391,975 Other real estate revenues 6,750 — — 1,308 8,058 Total real estate revenues $ 139,696 $ 66,950 $ 136,044 $ 57,343 $ 400,033 Three Months Ended June 30, 2020 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 35,861 $ 35,631 $ 23,232 $ 20,024 $ 114,748 Commission and other brokerage income - development marketing 5,173 — 2,747 586 8,506 Property management revenue 8,617 215 — — 8,832 Escrow and title fees 474 369 — — 843 Total Douglas Elliman revenue 50,125 36,215 25,979 20,610 132,929 Other real estate revenues — — — 321 321 Total real estate revenues $ 50,125 $ 36,215 $ 25,979 $ 20,931 $ 133,250 Six Months Ended June 30, 2021 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 175,987 $ 122,669 $ 197,519 $ 92,596 $ 588,771 Commission and other brokerage income - development marketing 24,363 — 21,385 614 46,362 Property management revenue 18,857 312 — — 19,169 Escrow and title fees 1,879 809 — 7,761 10,449 Total Douglas Elliman revenue 221,086 123,790 218,904 100,971 664,751 Other real estate revenues 6,750 — — 3,833 10,583 Total real estate revenues $ 227,836 $ 123,790 $ 218,904 $ 104,804 $ 675,334 Six Months Ended June 30, 2020 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 85,970 $ 70,355 $ 53,410 $ 45,724 $ 255,459 Commission and other brokerage income - development marketing 13,624 — 9,469 668 23,761 Property management revenue 17,179 432 — — 17,611 Escrow and title fees 1,067 632 — — 1,699 Total Douglas Elliman revenue 117,840 71,419 62,879 46,392 298,530 Other real estate revenues — — — 2,139 2,139 Total real estate revenues $ 117,840 $ 71,419 $ 62,879 $ 48,531 $ 300,669 Contract Balances The following table provides information about contract assets and contract liabilities from development marketing and commercial leasing contracts with customers: June 30, 2021 December 31, 2020 Receivables, which are included in accounts receivable - trade, net $ 2,703 $ 1,520 Contract assets, net, which are included in other current assets 6,563 6,529 Payables, which are included in other current liabilities 2,072 1,113 Contract liabilities, which are included in other current liabilities 7,507 7,633 Contract assets, net, which are included in other assets 23,538 24,002 Contract liabilities, which are included in other liabilities 34,302 32,104 |
Current Expected Credit Losses
Current Expected Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Current Expected Credit Losses | CURRENT EXPECTED CREDIT LOSSES Tobacco receivables: Average collection terms for Tobacco sales range between three and twelve days from the time that the cigarettes are shipped to the customer. Based on Tobacco historical and ongoing cash collections from customers, an estimated credit loss in accordance with ASU 2016-13 was not recorded for these trade receivables as of June 30, 2021 and December 31, 2020. Real estate broker agent receivables: Douglas Elliman Realty is exposed to credit losses for various amounts due from real estate agents, which are included in Other current assets on the condensed consolidated balance sheets, net of an allowance for credit losses. The Company estimates its allowance for credit losses on receivables from agents based on an evaluation of aging, agent sales in pipeline, any security, specific exposures, historical experience of collections from the individual agents, and current and expected future market trends (such as the current and expected impact of COVID-19 on the real estate market). The Company estimated that the credit losses for these receivables were $7,128 and $7,038 at June 30, 2021 and December 31, 2020, respectively. Term loan receivables: New Valley periodically provides term loans to commercial real estate developers, which are included in Other assets on the condensed consolidated balance sheets. New Valley had two loans with a total amortized cost basis of $15,928, including accrued interest receivable of $6,428 at both June 30, 2021 and December 31, 2020, and have maturities in 2021 and beyond. The loans are secured by guarantees and given their risk profiles are evaluated individually. As New Valley does not have internal historical loss information by which to evaluate the risk of credit losses, external market data measuring default risks on high yield loans as of each measurement date was utilized to estimate reserves for credit losses on these loans. Pursuant to the requirements of ASU 2016-13, New Valley’s expected credit loss estimate was $15,928 at both June 30, 2021 and December 31, 2020. The following is the rollforward of the allowance for credit losses for the six months ended June 30, 2021: January 1, Current Period Provision Write-offs Recoveries June 30, Allowance for credit losses: Real estate broker agent receivables $ 7,038 $ 289 (1) $ 199 $ — $ 7,128 New Valley term loan receivables 15,928 — — — 15,928 _____________________________ (1) The bad debt expense related to the real estate broker agent receivables is included in Operating, selling, administrative and general expenses on the condensed consolidated statements of operations. The following is the rollforward of the allowance for credit losses for the six months ended June 30, 2020: January 1, Current Period Provision Write-offs Recoveries June 30, Allowance for credit losses: Real estate broker agent receivables $ 6,132 $ 1,270 (1) $ 41 $ — $ 7,361 New Valley term loan receivables 3,100 432 (2) — — 3,532 _____________________________ (1) The bad debt expense related to the real estate broker agent receivables is included in Operating, selling, administrative and general expenses on the condensed consolidated statements of operations. (2) The credit losses related to the New Valley term loan receivables are included in Other, net on the condensed consolidated statements of operations. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | LEASES Leases The Company has operating and finance leases for corporate and sales offices, and certain vehicles and equipment. The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease cost $ 9,292 $ 9,356 $ 18,593 $ 18,780 Short-term lease cost 261 389 552 790 Variable lease cost 1,029 588 2,037 1,155 Finance lease cost: Amortization 14 39 30 77 Interest on lease liabilities 2 4 5 7 Total lease cost $ 10,598 $ 10,376 $ 21,217 $ 20,809 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 21,879 $ 11,953 Operating cash flows from finance leases 5 7 Financing cash flows from finance leases 28 69 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3,432 9,076 Finance leases — 60 Supplemental balance sheet information related to leases was as follows: June 30, December 31, 2021 2020 Operating leases: Operating lease right-of-use assets $ 138,057 $ 145,356 Current operating lease liability $ 26,625 $ 27,207 Non-current operating lease liability 144,487 154,199 Total operating lease liabilities $ 171,112 $ 181,406 Finance leases: Investments in real estate, net (1) $ 45 $ 62 Property, plant and equipment, at cost $ 127 $ 127 Accumulated amortization (57) (44) Property and equipment, net $ 70 $ 83 Current portion of notes payable and long-term debt $ 57 $ 57 Notes payable, long-term debt and other obligations, less current portion 67 96 Total finance lease liabilities $ 124 $ 153 Weighted average remaining lease term: Operating leases 7.62 7.87 Finance leases 2.27 2.71 Weighted average discount rate: Operating leases 9.24 % 9.26 % Finance leases 7.98 % 7.82 % (1) Included in Investments in real estate, net on the condensed consolidated balance sheets are financing lease equipment, at cost of $748 and $748 and accumulated amortization of $703 and $686 as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Period Ending December 31: Remainder of 2021 $ 21,960 $ 33 2022 38,780 60 2023 34,007 35 2024 28,054 8 2025 22,895 — 2026 19,114 — Thereafter 78,236 — Total lease payments 243,046 136 Less imputed interest (71,934) (12) Total $ 171,112 $ 124 As of June 30, 2021, the Company had $2,181 in undiscounted lease payments relating to an additional operating lease for equipment that has not yet commenced. The operating lease will commence in the second half of 2021 with a lease term of 3 years. |
Leases | LEASES Leases The Company has operating and finance leases for corporate and sales offices, and certain vehicles and equipment. The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease cost $ 9,292 $ 9,356 $ 18,593 $ 18,780 Short-term lease cost 261 389 552 790 Variable lease cost 1,029 588 2,037 1,155 Finance lease cost: Amortization 14 39 30 77 Interest on lease liabilities 2 4 5 7 Total lease cost $ 10,598 $ 10,376 $ 21,217 $ 20,809 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 21,879 $ 11,953 Operating cash flows from finance leases 5 7 Financing cash flows from finance leases 28 69 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3,432 9,076 Finance leases — 60 Supplemental balance sheet information related to leases was as follows: June 30, December 31, 2021 2020 Operating leases: Operating lease right-of-use assets $ 138,057 $ 145,356 Current operating lease liability $ 26,625 $ 27,207 Non-current operating lease liability 144,487 154,199 Total operating lease liabilities $ 171,112 $ 181,406 Finance leases: Investments in real estate, net (1) $ 45 $ 62 Property, plant and equipment, at cost $ 127 $ 127 Accumulated amortization (57) (44) Property and equipment, net $ 70 $ 83 Current portion of notes payable and long-term debt $ 57 $ 57 Notes payable, long-term debt and other obligations, less current portion 67 96 Total finance lease liabilities $ 124 $ 153 Weighted average remaining lease term: Operating leases 7.62 7.87 Finance leases 2.27 2.71 Weighted average discount rate: Operating leases 9.24 % 9.26 % Finance leases 7.98 % 7.82 % (1) Included in Investments in real estate, net on the condensed consolidated balance sheets are financing lease equipment, at cost of $748 and $748 and accumulated amortization of $703 and $686 as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Period Ending December 31: Remainder of 2021 $ 21,960 $ 33 2022 38,780 60 2023 34,007 35 2024 28,054 8 2025 22,895 — 2026 19,114 — Thereafter 78,236 — Total lease payments 243,046 136 Less imputed interest (71,934) (12) Total $ 171,112 $ 124 As of June 30, 2021, the Company had $2,181 in undiscounted lease payments relating to an additional operating lease for equipment that has not yet commenced. The operating lease will commence in the second half of 2021 with a lease term of 3 years. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consisted of: June 30, December 31, Leaf tobacco $ 41,693 $ 42,988 Other raw materials 5,292 5,987 Work-in-process 674 520 Finished goods 66,233 68,781 Inventories at current cost 113,892 118,276 LIFO adjustments (20,731) (20,731) $ 93,161 $ 97,545 All of the Company’s inventories at June 30, 2021 and December 31, 2020 are reported under the LIFO method. The $20,731 LIFO adjustment as of June 30, 2021 decreased the current cost of inventories by $14,139 for Leaf tobacco, $474 for Other raw materials, $26 for Work-in-process and $6,092 for Finished goods. The $20,731 LIFO adjustment as of December 31, 2020 decreased the current cost of inventories by $14,139 for Leaf tobacco, $474 for Other raw materials, $26 for Work-in-process and $6,092 for Finished goods. The amount of capitalized MSA cost in “Finished goods” inventory was $21,416 and $21,120 at June 30, 2021 and December 31, 2020, respectively. Federal excise tax capitalized in inventory was $24,695 and $27,683 at June 30, 2021 and December 31, 2020, respectively. At June 30, 2021, Liggett had tobacco purchase commitments of approximately $18,772. Liggett has a single-source supply agreement for reduced ignition propensity cigarette paper through 2022. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES Investment securities consisted of the following: June 30, December 31, 2020 Debt securities available for sale $ 108,489 $ 91,204 Property technology (“PropTech”) convertible trading debt securities 2,481 — Equity securities at fair value: Marketable equity securities 25,187 21,155 Mutual funds invested in debt securities 23,325 23,226 Long-term investment securities at fair value (1) 33,053 34,218 Total equity securities at fair value 81,565 78,599 Total investment securities at fair value 192,535 169,803 Less: Long-term investment securities at fair value (1) 33,053 34,218 PropTech convertible trading debt securities 2,481 — Current investment securities at fair value 157,001 135,585 Long-term investment securities at fair value (1) 33,053 34,218 Equity-method investments 19,828 18,310 PropTech convertible trading debt securities 2,481 — Total long-term investments $ 55,362 $ 52,528 (1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820. Net gains (losses) recognized on investment securities were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net gains (losses) recognized on equity securities $ 8,522 $ 4,711 $ 10,930 $ (7,026) Net gains (losses) recognized on debt securities available for sale 10 70 65 (47) Impairment expense (44) — (58) (386) Net losses recognized on PropTech convertible trading debt securities (19) — (19) — Net gains (losses) recognized on investment securities $ 8,469 $ 4,781 $ 10,918 $ (7,459) (a) Debt Securities Available for Sale: The components of debt securities available for sale at June 30, 2021 were as follows: Cost Gross Gross Fair Marketable debt securities $ 108,217 $ 272 $ — $ 108,489 The table below summarizes the maturity dates of debt securities available for sale at June 30, 2021. Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. Government securities $ 12,512 $ 10,195 $ 2,317 $ — Corporate securities 49,843 31,457 18,386 — U.S. mortgage-backed securities 15,467 200 15,267 — Commercial paper 29,443 29,443 — — Foreign fixed-income securities 1,224 — 1,224 — Total debt securities available for sale by maturity dates $ 108,489 $ 71,295 $ 37,194 $ — The components of debt securities available for sale at December 31, 2020 were as follows: Cost Gross Gross Fair Marketable debt securities $ 90,621 $ 583 $ — $ 91,204 There were no available-for-sale debt securities with continuous unrealized losses for less than 12 months and 12 months or greater at June 30, 2021 and December 31, 2020, 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, 2021 2020 2021 2020 Gross realized gains on sales $ 11 $ 72 $ 67 $ 170 Gross realized losses on sales (1) (2) (2) (217) Net gains (losses) recognized on debt securities available for sale $ 10 $ 70 $ 65 $ (47) Impairment expense $ (44) $ — $ (58) $ (386) Although management generally does not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing the Company’s investment securities portfolio, management may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements. (b) PropTech Convertible Trading Debt Securities: New Valley, through its subsidiary New Valley Ventures LLC, is actively seeking to capitalize on its real estate knowledge and experience by investing in PropTech ventures that will both supplement and enhance the technology-based experience of Douglas Elliman’s agents and the general real estate industry as well as improve the operating efficiency of New Valley. During the first quarter 2021, New Valley Ventures invested $2,500 into convertible notes of four PropTech ventures. The securities are classified as trading debt securities and are accounted for at fair value. The maturities of the notes are between April 2022 and March 2023. (c) Equity Securities at Fair Value: The following is a summary of unrealized and realized net gains and losses recognized in net income on equity securities at fair value during the three and six months ended June 30, 2021 and 2020, respectively: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net gains (losses) recognized on equity securities $ 8,522 $ 4,711 $ 10,930 $ (7,026) Less: Net gains (losses) recognized on equity securities sold 4,054 601 4,223 (17) Net unrealized gains (losses) recognized on equity securities still held at the reporting date $ 4,468 $ 4,110 $ 6,707 $ (7,009) The Company’s mutual funds invested in debt securities are classified as Level 1 under the fair value hierarchy disclosed in Note 12. 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 $1,939 related to long-term investment securities at fair value as of June 30, 2021. The Company received cash distributions of $8,009 and $23,510 related to its long-term investment securities at fair value for the six months ended June 30, 2021 and 2020, respectively. The Company classified $8,009 and $23,407 of these distributions as investing cash inflows for the six months ended June 30, 2021 and 2020, respectively. (d) Equity-Method Investments: Equity-method investments consisted of the following: June 30, December 31, 2020 Mutual fund and hedge funds $ 19,828 $ 18,310 At June 30, 2021, the Company’s ownership percentages in the mutual fund and hedge funds accounted for under the equity method ranged from 6.63% to 37.09%. The Company’s ownership percentage in these investments meets the threshold for equity-method accounting. On February 14, 2020, the Company received proceeds of $53,169 in exchange for the Company’s 15,191,205 common shares of Ladenburg Thalmann Financial Services Inc. (“LTS”). The Company also tendered 240,000 shares of LTS 8% Series A Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) for redemption and received an additional $6,009 in March 2020. At the closing of the transaction, the Company’s Executive Vice President and Chief Operating Officer resigned as Chairman, President and Chief Executive Officer of LTS, and the Company’s management agreement with LTS was terminated. Equity in earnings from investments were: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Mutual fund and hedge funds $ 941 $ 2,207 $ 1,518 $ (693) LTS — — — 53,052 Equity in earnings from investments $ 941 $ 2,207 $ 1,518 $ 52,359 The Company received cash distributions of $53,484 (including the $53,169 received by the Company in exchange for the Company’s 15,191,205 common shares of LTS) from the Company’s equity-method investments for the six months ended June 30, 2020. The Company classified these cash distributions as operating activities on the condensed consolidated statements of cash flows for the six months ended June 30, 2020. (e) Equity Securities Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical Expedient |
New Valley LLC
New Valley LLC | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 December 31, 2020 Condominium and Mixed Use Development: New York City Standard Metropolitan Statistical Area (“SMSA”) 4.2% - 46.7% $ 25,233 $ 30,465 All other U.S. areas 19.6% - 77.8% 36,253 37,773 61,486 68,238 Hotels: New York City SMSA 0.4% - 17.8% 2,114 2,629 International 49.0% 1,324 1,852 3,438 4,481 Commercial: New York City SMSA 49.0% — 2,591 All other U.S. areas 1.6% 7,139 7,084 7,139 9,675 Other: 15.0% - 50.0% 4,129 3,006 Investments in real estate ventures $ 76,192 $ 85,400 _____________________________ (1) The Range of Ownership reflects New Valley’s estimated current ownership percentage. New Valley’s actual ownership percentage as well as the percentage of earnings and cash distributions may ultimately differ as a result of a number of factors including potential dilution, financing or admission of additional partners. Contributions: The components of New Valley’s contributions to its investments in real estate ventures were as follows: Six Months Ended June 30, 2021 2020 Condominium and Mixed Use Development: New York City SMSA $ 396 $ 1,169 All other U.S. areas 6,661 2,161 7,057 3,330 Apartment Buildings: All other U.S. areas — 76 — 76 Hotels: New York City SMSA 1,246 — 1,246 — Other: 1,599 452 Total contributions $ 9,902 $ 3,858 For ventures where New Valley previously held an investment, New Valley contributed its proportionate share of additional capital along with contributions by the other investment partners during the six months ended June 30, 2021 and June 30, 2020. New Valley’s direct investment percentage for these 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, 2021 2020 Condominium and Mixed Use Development: New York City SMSA $ 3,338 $ 1,735 All other U.S. areas 13,594 5,214 16,932 6,949 Apartment Buildings: All other U.S. areas 17,567 — 17,567 — Commercial: New York City SMSA — 3 All other U.S. areas 219 52 219 55 Other 75 23 Total distributions $ 34,793 $ 7,027 Of the distributions received by New Valley from its investment in real estate ventures, $23,630 and $1,855 were from distributions of earnings for the six months ended June 30, 2021 and 2020, respectively, and $11,163 and $5,172 were a return of capital for the six months ended June 30, 2021 and 2020, respectively. Distributions from earnings are included in cash from operations in the condensed consolidated statements of cash flows, while distributions that are returns of capital are included in cash flows from investing activities in the condensed consolidated statements of cash flows. Equity in Earnings (losses) from Real Estate Ventures: New Valley recognized equity in earnings (losses) from real estate ventures as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Condominium and Mixed Use Development: New York City SMSA $ (967) $ (5,104) $ (2,472) $ (8,451) All other U.S. areas 7,315 (6,489) 7,274 (9,288) 6,348 (11,593) 4,802 (17,739) Apartment Buildings: All other U.S. areas 12,959 (76) 17,567 (76) 12,959 (76) 17,567 (76) Hotels: New York City SMSA (1) (386) (542) (848) (649) International (23) (90) (529) (551) (409) (632) (1,377) (1,200) Commercial: New York City SMSA (2,713) 301 (2,591) 227 All other U.S. areas 180 (264) 273 (15) (2,533) 37 (2,318) 212 Other: 320 4 (400) 38 Equity in earnings (losses) from real estate ventures $ 16,685 $ (12,260) $ 18,274 $ (18,765) _____________________________ (1) The Company recognized a liability, classified in Other current liabilities, of $333 as a result of recording equity in losses in excess of the joint venture’s carrying value. As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of one of its New York City SMSA Commercial ventures was less than its carrying value as of June 30, 2021. The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in losses from real estate ventures of $2,713 for the three and six months ended June 30, 2021. As part of the Company’s ongoing assessment of the carrying values of its investments in real estate ventures, the Company determined that the fair value of a New York City SMSA Condominium and Mixed Use Development venture was less than its carrying value as of June 30, 2020. The Company determined that the impairment was other than temporary. The Company recorded an impairment charge as a component of equity in losses from real estate ventures of $3,784 for the three and six months ended June 30, 2020. VIE Consideration: The Company has determined that New Valley is the primary beneficiary of one real estate venture because it controls the activities that most significantly impact the economic performance of the real estate venture. Consequently, New Valley consolidates this variable interest entity (“VIE”). The carrying amount of the consolidated assets of the VIE was $0 at both June 30, 2021 and December 31, 2020. Those assets are owned by the VIE, not the Company. The consolidated VIE had no recourse liabilities as of June 30, 2021 and December 31, 2020. A VIE’s assets can only be used to settle the obligations of that VIE. The VIE is not a guarantor of the Company’s senior notes and other debts payable. For the remaining investments in real estate ventures, New Valley determined that the entities were VIEs but New Valley was not the primary beneficiary. 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, 2021 Condominium and Mixed Use Development: New York City SMSA $ 25,233 All other U.S. areas 36,253 61,486 Hotels: New York City SMSA 2,114 International 1,324 3,438 Commercial: All other U.S. areas 7,139 7,139 Other 4,129 Total maximum exposure to loss $ 76,192 New Valley capitalized $592 and $1,022 of interest costs into the carrying value of its ventures whose projects were currently under development for the three and six months ended June 30, 2021, respectively. New Valley capitalized $1,004 and $2,257 of interest costs into the carrying value of its ventures whose projects were currently under development for the three and six months ended June 30, 2020, respectively. Douglas Elliman has been engaged by the developers as the sole broker or the co-broker for several of the real estate development projects that New Valley owns an interest in through its real estate venture investments. Douglas Elliman had gross commissions of approximately $6,585 and $7,698 from these projects for the six months ended June 30, 2021 and 2020, respectively. Combined Financial Statements for Unconsolidated Subsidiaries Accounted for under the Equity Method: Pursuant to Rule 4-08(g), the following summarized financial data for unconsolidated subsidiaries includes information for the following: Other Condominium and Mixed Use Development (West Hollywood Edition). Other Condominium and Mixed Use Development: Three Months Ended Six Months Ended 2021 2020 2021 2020 Income Statements Revenue $ 4,991 $ 1,830 $ 15,278 $ 33,409 Cost of goods sold — — — 22,100 Other expenses 16,997 14,013 42,340 31,926 Loss from continuing operations $ (12,006) $ (12,183) $ (27,062) $ (20,617) Investments in Real Estate, net: The components of “Investments in real estate, net” were as follows: June 30, December 31, Escena, net $ 9,608 $ 9,735 Townhome A (11 Beach Street) — 5,896 Investments in real estate, net $ 9,608 $ 15,631 Escena. The assets of “Escena, net” were as follows: June 30, December 31, Land and land improvements $ 8,911 $ 8,911 Building and building improvements 1,926 1,926 Other 1,655 1,672 12,492 12,509 Less accumulated depreciation (2,884) (2,774) $ 9,608 $ 9,735 New Valley recorded operating losses of $90 and $629 for the three months ended June 30, 2021 and 2020, respectively, from Escena. New Valley recorded operating income of $280 and operating losses of $272 for the six months ended June 30, 2021 and 2020, respectively, from Escena. Escena is a master planned community, golf course, and club house in Palm Springs, California. Townhome A (11 Beach Street). In November 2020, New Valley received, as part of a liquidating distribution from a real estate joint venture, Unit TH-A, a townhouse located in Manhattan, NY. In April 2021, New Valley sold the unit for $6,750 and recognized the revenue in accordance with the scope of ASC Topic 606 since New Valley has no continuing investment or involvement. The sale was presented as revenue and the cost of the investment as cost of sales on the condensed consolidated statements of operations. |
Notes Payable, Long-Term Debt a
Notes Payable, Long-Term Debt and Other Obligations | 6 Months Ended |
Jun. 30, 2021 | |
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 $ — 6.125% Senior Secured Notes due 2025 — 850,000 10.5% Senior Notes due 2026, net of unamortized discount of $2,849 and $3,040 552,151 551,960 Liggett: Equipment loans 77 89 Other 18,797 25,484 Notes payable, long-term debt and other obligations 1,446,025 1,427,533 Less: Debt issuance costs (30,640) (21,247) Total notes payable, long-term debt and other obligations 1,415,385 1,406,286 Less: Current maturities (12,558) (12,557) Amount due after one year $ 1,402,827 $ 1,393,729 5.75% Senior Secured Notes due 2029 — Vector : On January 28, 2021, the Company completed the sale of $875,000 in aggregate principal amount of its 5.75% Senior Secured Notes due 2029 (“5.75% Senior Secured Notes”) to qualified institutional buyers and non-U.S. persons in a private offering pursuant to the exemptions from the registration requirements of the Securities Act contained in Rule 144A and Regulation S under the Securities Act. The aggregate net cash proceeds from the sale of the 5.75% Senior Secured Notes were approximately $855,500 after deducting the initial purchaser’s discount and estimated expenses and fees payable by the Company in connection with the offering. The Company used the net cash proceeds from the 5.75% Senior Secured Notes offering, together with cash on hand, to redeem all of the Company’s outstanding 6.125% Senior Secured Notes due 2025, including accrued interest and premium thereon, and to pay fees and expenses in connection with the offering of the 5.75% Senior Secured Notes and the redemption of the 6.125% Secured Notes due 2025. The 5.75% Senior Secured Notes pay interest on a semi-annual basis at a rate of 5.75% per year and mature on the earlier of February 1, 2029 and the date that is 91 days before November 1, 2026, the final stated maturity date of the 10.5% Senior Notes due 2026 (“10.5% Senior Notes”) if such 10.5% Senior Notes have not been repurchased and cancelled or refinanced by such date. The 5.75% Senior Secured Notes are fully and unconditionally guaranteed, subject to certain customary automatic release provisions, on a joint and several basis by all of the wholly-owned domestic subsidiaries of the Company that are engaged in the conduct of the Company’s cigarette businesses, which subsidiaries, as of the issuance date of the 5.75% Senior Secured Notes were also guarantors under the Company’s outstanding 10.5% Senior Notes. The 5.75% Senior Secured Notes are not guaranteed by New Valley LLC, or any of the Company’s subsidiaries engaged in the Company’s real estate business conducted through its subsidiary, New Valley LLC. The guarantees provided by certain of the guarantors are secured by first priority or second priority security interests in certain collateral of such guarantors pursuant to security and pledge agreements, subject to certain permitted liens and exceptions as further described in the indenture and the security documents relating thereto. The Company does not provide any security for the 5.75% Senior Secured Notes. As of June 30, 2021, the Company was in compliance with all debt covenants. 6.125% Senior Secured Notes due 2025 — Vector : On February 1, 2021, the 6.125% Senior Secured Notes due 2025 were redeemed in full and the Company recorded a loss on the extinguishment of debt of $21,362 for the six months ended June 30, 2021, including $13,014 of premium and $8,348 of other costs and non-cash interest expense related to the recognition of previously unamortized deferred finance costs. 10.5% Senior Notes due 2026 — Vector : As of June 30, 2021, the Company was in compliance with all debt covenants related to its 10.5% Senior Notes due 2026. Revolving Credit Agreement — Liggett : On March 22, 2021, Liggett, 100 Maple LLC (“Maple”) and Vector Tobacco entered into Amendment No. 4 and Joinder to Third Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as agent and lender. The existing credit agreement was amended to, among other things, (i) add Vector Tobacco as a borrower under the Credit Agreement, (ii) extend the maturity of the Credit Agreement to March 22, 2026, and (iii) increase the amount of the maximum credit line thereunder from $60,000 to $90,000. As of June 30, 2021, there was no outstanding balance due under the Credit Agreement. Availability, as determined under the Credit Agreement, was approximately $84,600 based on eligible collateral at June 30, 2021. As of June 30, 2021, Liggett, Maple, and Vector Tobacco were in compliance with all debt covenants under the Credit Agreement. Other : Other notes payable consist primarily of $18,750 of notes payable issued by New Valley as part of the acquisition of the remaining 29.41% interest in Douglas Elliman in December 2018. Interest on the outstanding principal balance of the notes accrues at the then-current mid-term applicable federal rate. Principal and interest is payable in installments through October 1, 2022. $11,250 of principal has been repaid through June 30, 2021 and the remaining principal is due to be repaid as follows: (1) $6,250 in 2021; and (2) $12,500 in 2022. Non-Cash Interest Expense — Vector : Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Amortization of debt discount, net $ 97 $ 847 $ 191 $ 5,447 Amortization of debt issuance costs 942 889 1,835 2,047 Loss on extinguishment of 6.125% Senior Secured Notes — — 8,349 — $ 1,039 $ 1,736 $ 10,375 $ 7,494 Fair Value of Notes Payable and Long-Term Debt : June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Senior Notes $ 1,427,151 $ 1,482,980 $ 1,401,960 $ 1,464,208 Liggett and other 18,874 18,880 25,573 25,581 Notes payable and long-term debt $ 1,446,025 $ 1,501,860 $ 1,427,533 $ 1,489,789 Notes payable and long-term debt are carried on the condensed consolidated balance sheets at amortized cost. The fair value determinations disclosed above are classified as Level 2 under the fair value hierarchy disclosed in Note 12 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 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and 2020, Liggett incurred tobacco product liability legal expenses and costs totaling $3,067 and $3,191 respectively. Legal defense costs are expensed as incurred. Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending cases. With the commencement of new cases, the defense costs and the risks relating to the unpredictability of litigation increase. Management reviews on a quarterly basis with counsel all pending litigation and evaluates the probability of a loss being incurred and whether an estimate can be made of the possible loss or range of loss that could result from an unfavorable outcome. An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation. Damages awarded in tobacco-related litigation can be significant. Bonds. Although Liggett has been able to obtain required bonds or relief from bonding requirements in order to prevent plaintiffs from seeking to collect judgments while adverse verdicts are on appeal, there remains a risk that such relief may not be obtainable in all cases. This risk has been reduced given that a majority of states now limit the dollar amount of bonds or require no bond at all. As of June 30, 2021, Liggett had no outstanding bonds. In June 2009, Florida amended its existing bond cap statute by adding a $200,000 bond cap that applies to all Engle progeny cases in the aggregate and establishes individual bond caps for individual Engle progeny cases in amounts that vary depending on the number of judgments in effect at a given time. The maximum amount of any such bond for an appeal in the Florida state courts will be no greater than $5,000. In several cases, plaintiffs challenged the constitutionality of the bond cap statute, but to date the courts have upheld the constitutionality of the statute. It is possible that the Company’s consolidated financial position, results of operations, and cash flows could be materially adversely affected by an unfavorable outcome of such challenges. Accounting Policy . The Company and its subsidiaries record provisions in their consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, except as discussed in this Note 9: (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, including with respect to the remaining Engle progeny cases. There can be no assurances that Liggett’s past litigation experience will be representative of future results. Judgments have been entered against Liggett in the past, in Individual Actions and Engle progeny cases, and several of those judgments were affirmed on appeal and satisfied by Liggett. It is possible that the consolidated financial position, results of operations and cash flows of the Company could be materially adversely affected by an unfavorable outcome or settlement of any of the remaining smoking-related litigation. Liggett believes, and has been so advised by counsel, that it has valid defenses to the litigation pending against it, as well as valid bases for appeal of adverse verdicts. All such cases are and will continue to be vigorously defended. Liggett has entered into settlement discussions in individual cases or groups of cases where Liggett has determined it was in its best interest to do so, and it may continue to do so in the future. As cases proceed through the appellate process, the Company will consider accruals on a case-by-case basis if an unfavorable outcome becomes probable and the amount can be reasonably estimated. Individual Actions As of June 30, 2021, there were 74 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 Florida 45 Illinois 14 Nevada 7 New Mexico 5 Louisiana 2 Hawaii 1 The plaintiffs’ allegations of liability in cases in which individuals seek recovery for injuries allegedly caused by cigarette smoking are based on various theories of recovery, including negligence, gross negligence, breach of special duty, strict liability, fraud, concealment, misrepresentation, design defect, failure to warn, breach of express and implied warranties, conspiracy, aiding and abetting, concert of action, unjust enrichment, common law public nuisance, property damage, invasion of privacy, mental anguish, emotional distress, disability, shock, indemnity, violations of deceptive trade practice laws, the federal Racketeer Influenced and Corrupt Organizations Act (“RICO”), state RICO statutes and antitrust statutes. In many of these cases, in addition to compensatory damages, plaintiffs also seek other forms of relief including treble/multiple damages, medical monitoring, disgorgement of profits and punitive damages. Although alleged damages often are not determinable from a complaint, and the law governing the pleading and calculation of damages varies from state to state and jurisdiction to jurisdiction, compensatory and punitive damages have been specifically pleaded in a number of cases, sometimes in amounts ranging into the hundreds of millions and even billions of dollars. Defenses raised in Individual Actions include lack of proximate cause, assumption of the risk, comparative fault and/or contributory negligence, lack of design defect, statute of limitations, 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. Although the Company was not named as a defendant in the Engle case, it was named as a defendant in substantially all of the Engle progeny cases where Liggett was named as a defendant. Cautionary Statement About Engle Progeny Cases . Since 2009, judgments have been entered against Liggett and other cigarette manufacturers in Engle progeny cases. A number of the judgments were affirmed on appeal and satisfied by the defendants. Many were overturned on appeal. As of June 30, 2021, 25 Engle progeny cases where Liggett was a defendant at trial resulted in verdicts. There have been 16 verdicts returned in favor of the plaintiffs and nine in favor of Liggett. In five of the cases, punitive damages were awarded against Liggett. Several of the adverse verdicts were overturned on appeal and new trials were ordered. In certain cases, the judgments were entered jointly and severally with other defendants and Liggett may face the risk that one or more co-defendants decline or otherwise fail to participate in the bonding required for an appeal or to pay their proportionate or jury-allocated share of a judgment. As a result, under certain circumstances, Liggett may have to pay more than its proportionate share of any bonding or judgment related amounts. Except as discussed in this Note 9, management is unable to estimate the possible loss or range of loss from the remaining Engle progeny cases as there are currently multiple defendants in each case and, in most cases, discovery has not occurred or is limited. As a result, the Company lacks information about whether plaintiffs are in fact Engle class members, the relevant smoking history, the nature of the alleged injury and the availability of various defenses, among other things. Further, plaintiffs typically do not specify the amount of their demand for damages. As cases proceed through the appellate process, the Company will consider accruals on a case-by-case basis if an unfavorable outcome becomes probable and the amount can be reasonably estimated. Engle Progeny Settlements. In October 2013, the Company and Liggett entered into a settlement with approximately 4,900 Engle progeny plaintiffs and their counsel. Pursuant to the terms of the settlement, Liggett agreed to pay a total of approximately $110,000, with $61,600 paid in an initial lump sum and the balance to be paid in installments over 14 years starting in February 2015. The Company’s future payments will be approximately $3,400 per annum through 2028, with a cost of living increase beginning in 2021. In exchange, the claims of these plaintiffs were dismissed with prejudice against the Company and Liggett. Liggett subsequently entered into two separate settlement agreements with a total of 152 Engle progeny plaintiffs where Liggett paid a total of $23,150. On an individual basis, Liggett settled an additional 203 Engle progeny cases for approximately $8,100 in the aggregate. Notwithstanding the comprehensive nature of the Engle progeny settlements, 38 plaintiffs’ claims remain pending in state court. Therefore, the Company and Liggett may still be subject to periodic adverse judgments which could have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. Judgments Paid in Engle Progeny Cases . As of June 30, 2021, Liggett had paid in the aggregate $40,111, including interest and attorneys’ fees, to satisfy the judgments in the following Engle progeny cases: Lukacs , Campbell , Douglas , Clay, Tullo, Ward, Rizzuto, Lambert, Buchanan, and Santoro . Maryland Cases Liggett was a defendant in 16 multi-defendant personal injury cases in Maryland alleging claims arising from asbestos and tobacco exposure (“synergy cases”). In July 2016, the Court of Appeals (Maryland’s highest court) ruled that joinder of tobacco and asbestos cases may be possible in certain circumstances, but plaintiffs must demonstrate at the trial court level how such cases may be joined while providing appropriate safeguards to prevent embarrassment, delay, expense or prejudice to defendants and “the extent to which, if at all, the special procedures applicable to asbestos cases should extend to tobacco companies.” The Court of Appeals remanded these issues to be determined at the trial court level. In June 2017, the trial court issued an order dismissing all synergy cases against the tobacco defendants, including Liggett, without prejudice. Plaintiffs may seek appellate review or file new cases against the tobacco companies. Liggett Only Cases There are currently four cases where Liggett is the sole defendant: Cowart is an Individual Action and Tumin , Forbing , and Jones are Engle progeny cases. It is possible that cases where Liggett is the only defendant could increase as a result of the remaining Engle progeny cases and newly filed Individual Actions. Upcoming Trials As of June 30, 2021, there was one Engle progeny case ( Alvarez ) and eight Individual Actions ( Baron, Bennett, Cupp, Feld, Geist, Lane, Mendez and Tully ) scheduled for trial through June 30, 2022, where Liggett is a named defendant. Trial dates are subject to change and additional cases could be set for trial during this time. Class Actions As of June 30, 2021, two actions were pending for which either a class had been certified or plaintiffs were seeking class certification where Liggett is a named defendant. Other cigarette manufacturers are also named in these two cases. Plaintiffs’ allegations of liability in class action cases are based on various theories of recovery, including negligence, gross negligence, strict liability, fraud, misrepresentation, design defect, failure to warn, nuisance, breach of express and implied warranties, breach of special duty, conspiracy, concert of action, violation of deceptive trade practice laws and consumer protection statutes and claims under the federal and state anti-racketeering statutes. Plaintiffs in the class actions seek various forms of relief, including compensatory and punitive damages, treble/multiple damages and other statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, and injunctive and equitable relief. Defenses raised in these cases include, among others, lack of proximate cause, individual issues predominate, assumption of the risk, comparative fault and/or contributory negligence, statute of limitations and federal preemption. In November 1997, in Young v. American Tobacco Co., a purported personal injury class action was commenced on behalf of plaintiff and all similarly situated residents in Louisiana who, though not themselves cigarette smokers, allege they were exposed to secondhand smoke from cigarettes that were manufactured by the defendants, including Liggett, and suffered injury as a result of that exposure. The plaintiffs seek to recover an unspecified amount of compensatory and punitive damages. No class certification hearing has been held. A stay order entered on March 16, 2016 stays the case pending completion of the smoking cessation program ordered by the court in Scott v. The American Tobacco Co . In February 1998, in Parsons v. AC & S Inc. , a purported class action was commenced on behalf of all West Virginia residents who allegedly have claims arising from their exposure to cigarette smoke and asbestos fibers. The operative complaint seeks to recover unspecified compensatory and punitive damages on behalf of the putative class. The case is stayed as a result of the December 2000 bankruptcy of three of the defendants. Health Care Cost Recovery Actions As of June 30, 2021, one Health Care Cost Recovery Action was pending against Liggett, Crow Creek Sioux Tribe v. American Tobacco Company , a South Dakota case filed in 1997, where the plaintiff seeks to recover damages from Liggett and other cigarette manufacturers based on various theories of recovery as a result of alleged sales of tobacco products to minors. The case is dormant. The claims asserted in health care cost recovery actions vary, but can include the equitable claim of indemnity, common law claims of negligence, strict liability, breach of express and implied warranty, breach of special duty, fraud, negligent misrepresentation, conspiracy, public nuisance, claims under state and federal statutes governing consumer fraud, antitrust, deceptive trade practices and false advertising, and claims under RICO. Although no specific damage amounts are typically pleaded, it is possible that requested damages might be in the billions of dollars. In these cases, plaintiffs typically assert equitable claims that the tobacco industry was “unjustly enriched” by their payment of health care costs allegedly attributable to smoking and seek reimbursement of those costs. Relief sought by some, but not all, plaintiffs include punitive damages, multiple damages and other statutory damages and penalties, injunctions prohibiting alleged marketing and sales to minors, disclosure of research, disgorgement of profits, funding of anti-smoking programs, additional disclosure of nicotine yields, and payment of attorney and expert witness fees. Department of Justice Lawsuit In September 1999, the United States government commenced litigation against Liggett and other cigarette manufacturers in the United States District Court for the District of Columbia. The action sought to recover, among other things, an unspecified amount of health care costs paid and to be paid by the federal government for smoking-related illnesses allegedly caused by the fraudulent and tortious conduct of defendants. In August 2006, the trial court entered a Final Judgment against each of the cigarette manufacturing defendants, except Liggett. The judgment was affirmed on appeal. As a result, the cigarette manufacturing defendants, other than Liggett, are now subject to the trial court’s Final Judgment which ordered, among other things, the issuance of “corrective statements” in various media regarding the adverse health effects of smoking, the addictiveness of smoking and nicotine, the lack of any significant health benefit from smoking “low tar” or “lights” cigarettes, defendants’ manipulation of cigarette design to ensure optimum nicotine delivery and the adverse health effects of exposure to environmental tobacco smoke. MSA and Other State Settlement Agreements In March 1996, March 1997 and March 1998, Liggett entered into settlements of smoking-related litigation with 45 states and territories. The settlements released Liggett from all smoking-related claims made by those states and territories, including claims for health care cost reimbursement and claims concerning sales of cigarettes to minors. In November 1998, Philip Morris, R.J. Reynolds and two other companies (the “Original Participating Manufacturers” or “OPMs”) and Liggett and Vector Tobacco (together with any other tobacco product manufacturer that becomes a signatory, the “Subsequent Participating Manufacturers” or “SPMs”) (the OPMs and SPMs are hereinafter referred to jointly as “PMs”) entered into the Master Settlement Agreement (the “MSA”) with 46 states, the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, American Samoa and the Northern Mariana Islands (collectively, the “Settling States”) to settle the asserted and unasserted health care cost recovery and certain other claims of the Settling States. The MSA received final judicial approval in each Settling State. As a result of the MSA, the Settling States released Liggett and Vector Tobacco from: • all claims of the Settling States and their respective political subdivisions and other recipients of state health care funds, relating to: (i) past conduct arising out of the use, sale, distribution, manufacture, development, advertising and marketing of tobacco products; (ii) the health effects of, the exposure to, or research, statements or warnings about, tobacco products; and • all monetary claims of the Settling States and their respective subdivisions and other recipients of state health care funds relating to future conduct arising out of the use of, or exposure to, tobacco products that have been manufactured in the ordinary course of business. The MSA restricts tobacco product advertising and marketing within the Settling States and otherwise restricts the activities of PMs. Among other things, the MSA prohibits the targeting of youth in the advertising, promotion or marketing of tobacco products; bans the use of cartoon characters in all tobacco advertising and promotion; limits each PM to one tobacco brand name sponsorship during any 12-month period; bans all outdoor advertising, with certain limited exceptions; prohibits payments for tobacco product placement in various media; bans gift offers based on the purchase of tobacco products without sufficient proof that the intended recipient is an adult; prohibits PMs from licensing third parties to advertise tobacco brand names in any manner prohibited under the MSA; and prohibits PMs from using as a tobacco product brand name any nationally recognized non-tobacco brand or trade name or the names of sports teams, entertainment groups or individual celebrities. The MSA also requires PMs to affirm corporate principles to comply with the MSA and to reduce underage use of tobacco products and imposes restrictions on lobbying activities conducted on behalf of PMs. In addition, the MSA provides for the appointment of an independent auditor to calculate and determine the amounts of payments owed pursuant to the MSA. Under the payment provisions of the MSA, PMs are required to make annual payments of $9,000,000 (subject to applicable adjustments, offsets and reductions including a “Non-Participating Manufacturers Adjustment” or “NPM Adjustment”). These annual payments are allocated based on unit volume of domestic cigarette shipments. The payment obligations under the MSA are the several, and not joint, obligation of each PM and are not the responsibility of any parent or affiliate of a PM. Liggett has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of approximately 1.65% of total cigarettes sold in the United States. Vector Tobacco has no payment obligations under the MSA except to the extent its market share exceeds a market share exemption of approximately 0.28% of total cigarettes sold in the United States. Liggett and Vector Tobacco’s domestic shipments accounted for approximately 4.1% of the total cigarettes sold in the United States in 2020. If Liggett’s or Vector Tobacco’s market share exceeds their respective market share exemption in a given year, then on April 15 of the following year, Liggett and/or Vector Tobacco, as the case may be, must pay on each excess unit an amount equal (on a per-unit basis) to that due from the OPMs for that year. On December 30, 2020, Liggett and Vector Tobacco pre-paid $143,000 of their approximate $178,000 2020 MSA obligation, the balance of which was paid in April 2021, subject to applicable disputes or adjustments. Certain MSA Disputes NPM Adjustment. Liggett and Vector Tobacco contend that they are entitled to an NPM Adjustment for each year from 2003 - 2020. 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 - 2020, Liggett and Vector Tobacco, as applicable, disputed that they owed the Settling States the NPM Adjustments as calculated by the independent auditor. As permitted by the MSA, Liggett and Vector Tobacco either paid subject to dispute, withheld payment, or paid into a disputed payment account, the amounts associated with these NPM Adjustments. In June 2010, after the PMs prevailed in 48 of 49 motions to compel arbitration, the parties commenced the arbitration for the 2003 NPM Adjustment. That arbitration concluded in September 2013. It was followed by various challenges filed in state courts by states that did not prevail in the arbitration. Those challenges resulted in reductions, but not elimination of, the amounts awarded. The PMs settled most of the disputed NPM Adjustment years with 37 states representing approximately 75% of the MSA share for 2003 - 2022. The 2004 NPM Adjustment arbitration commenced in 2016, with the final individual state hearing scheduled to occur in October 2021 and a second phase addressing the effect of the settlements to start thereafter. The parties have also selected an arbitration panel to address the NPM Adjustments for 2005-2007. As a result of the settlement and arbitration award described above, Liggett and Vector Tobacco reduced cost of sales for years 2013 - 2020 by $54,382 and by $3,935 for the six months ended June 30, 2021. Liggett and Vector Tobacco may be entitled to further adjustments. As of June 30, 2021, Liggett and Vector Tobacco had accrued approximately $13,200 related to the disputed amounts withheld from the non-settling states for 2004 - 2010, which may be subject to payment, with interest, if Liggett and Vector Tobacco lose the disputes for those years. As of June 30, 2021, there remains approximately $49,800 in the disputed payments account relating to Liggett and Vector Tobacco’s 2011 - 2020 NPM Adjustment disputes with the non-settling states. If Liggett and Vector Tobacco lose the disputes for all or any of those years, pursuant to the MSA, no interest would be due on the amounts paid into the disputed payment account. Other State Settlements. The MSA replaced Liggett’s prior settlements with all states and territories except for Florida, Mississippi, Texas and Minnesota. Each of these four states, prior to the effective date of the MSA, negotiated and executed settlement agreements with each of the other major tobacco companies, separate from those settlements reached previously with Liggett. Except as described below, Liggett’s agreements with these states remain in full force and effect. These states’ settlement agreements with Liggett contained most favored nation provisions which could reduce Liggett’s payment obligations based on subsequent settlements or resolutions by those states with certain other tobacco companies. Beginning in 1999, Liggett determined that, based on settlements or resolutions with United States Tobacco Company, Liggett’s payment obligations to those four states were eliminated. With respect to all non-economic obligations under the previous settlements, Liggett believes it is entitled to the most favorable provisions as between the MSA and each state’s respective settlement with the other major tobacco companies. Therefore, Liggett’s non-economic obligations to all states and territories are now defined by the MSA. In 2003, as a result of a dispute with Minnesota regarding its settlement agreement, Liggett agreed to pay $100 a year in any year cigarettes manufactured by Liggett are sold in that state. Further, the Attorneys General for Florida, Mississippi and Texas advised Liggett that they believed Liggett had failed to make payments under the respective settlement agreements with those states. In 2010, Liggett settled with Florida and agreed to pay $1,200 and to make further annual payments of $250 for a period of 21 years, starting in March 2011, with the payments from year 12 forward being subject to an inflation adjustment. In January 2016, the Attorney General for Mississippi filed a motion in Chancery Court in Jackson County, Mississippi to enforce the March 1996 settlement agreement among Liggett, Mississippi and other states (the “1996 Agreement”) alleging that Liggett owes Mississippi at least $27,000 in compensatory damages and interest. In April 2017, the Chancery Court ruled, over Liggett’s objections, that the 1996 Agreement should be enforced as Mississippi claims and referred the matter first to arbitration and then to a Special Master for further proceedings to determine the amount of damages, if any, to be awarded. In April 2021, following confirmation of the final arbitration award, the parties stipulated that the unpaid principal (exclusive of interest) purportedly due from Liggett to Mississippi pursuant to the 1996 Agreement was approximately $16,700, subject to Liggett’s right to litigate and/or appeal the enforceability of the 1996 Agreement (and all issues other than the calculation of the principal amount allegedly due). In September 2019, the Special Master held a hearing regarding Mississippi’s claim for pre and post-judgment interest. In June 2021, the Special Master issued a draft report with proposed findings that pre-judgment interest, in the amount of approximately $18,600, is due from Liggett from April 2005 - July 9, 2021. At the request of the Special Master, the parties provided comments to the draft report and the matter is sub judice. The Special Master’s report, once finalized, is subject to objections by the parties and further review and hearing by the trial court before a final judgment may be entered. Once final judgment is entered, additional interest amounts will accrue if the judgment is not overturned on appeal. Liggett continues to believe that the April 2017 Chancery Court order is in error because the most favored nations provision in the 1996 Agreement eliminated all of Liggett’s payment obligations to Mississippi, and it reserved all rights to appeal this and other issues at the conclusion of the case. In the event Liggett appeals an adverse judgment, the posting of a bond may be required. Liggett may be required to make additional payments to Mississippi and Texas which could have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. Cautionary Statement Management is not able to reasonably predict the outcome of the litigation pending or threatened against Liggett or the Company. Litigation is subject to many uncertainties. Liggett has been found liable in multiple Engle progeny cases and Individual Actions, several of which were affirmed on appeal and satisfied by Liggett. It is possible that other cases could be decided 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 9, management is unable to estimate the loss or range of loss that could result from an unfavorable outcome of the cases pending against Liggett or the costs of defending such cases and as a result has not provided any amounts in its consolidated financial statements for unfavorable outcomes. The tobacco industry is subject to a wide range of laws and regulations regarding the marketing, sale, taxation and use of tobacco products imposed by local, state and federal governments. There have been a number of restrictive regulatory actions, adverse legislative and political decisions and other unfavorable developments concerning cigarette smoking and the tobacco industry. These developments may negatively affect the perception of potential triers of fact with respe |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The components of Goodwill and other intangible assets, net were as follows: December 31, Impairment Losses Amortization June 30, Goodwill $ 31,756 $ — $ — $ 31,756 Indefinite life intangibles: Intangible asset associated with benefit under the MSA 107,511 — — 107,511 Trademark - Douglas Elliman 68,000 — 68,000 Intangibles with a finite life, net 310 — (80) 230 Total goodwill and other intangible assets, net $ 207,577 $ — $ (80) $ 207,497 December 31, Impairment Losses Amortization June 30, Goodwill $ 78,008 $ (46,252) $ — $ 31,756 Indefinite life intangibles: Intangible asset associated with benefit under the MSA 107,511 — — 107,511 Trademark - Douglas Elliman 80,000 (12,000) — 68,000 Intangibles with a finite life, net 474 — (82) 392 Total goodwill and other intangible assets, net $ 265,993 $ (58,252) $ (82) $ 207,659 Goodwill is evaluated for impairment annually or whenever the Company identifies certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specific economic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated competitive activities, and acts by governments and courts. During the first quarter of 2020, the Company determined that a triggering event occurred related to the Douglas Elliman reporting unit due to a decline in sales and profitability projections for the reporting unit driven by the COVID-19 pandemic and related economic disruption. The Company utilized third-party valuation specialists to prepare a quantitative assessment of goodwill and trademark intangible asset related to Douglas Elliman. For the goodwill testing, the Company utilized an income approach (a discounted cash flows method) to estimate the fair value of the Douglas Elliman business. The estimated fair value of the trademark indefinite-life intangible asset related to the Douglas Elliman brand name was determined using an approach that values the Company’s cash savings from having a royalty-free license compared to the market rate it would pay for access to use the trade name. The third-party quantitative assessments of the goodwill and trademark intangible asset reflected management’s assumptions regarding revenue growth rates, economic and market trends including current expectations of deterioration resulting from the COVID-19 pandemic, changes to cost structures and other expectations about the anticipated short-term and long-term operating results of Douglas Elliman. The quantitative assessments resulted in impairment charges to goodwill of $46,252 and to the trademark intangible asset of $12,000. The Company determined that there have not been any triggering events since the first quarter of 2020. If the Company fails to achieve the financial projections used in the quantitative assessments of fair value or the impacts of COVID-19 are more severe than expected, additional impairment charges could result in future periods, and such impairment charges could be material. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 2021 2020 Income before provision for income taxes $ 132,165 $ 36,690 $ 177,175 $ 32,481 Income tax expense using estimated annual effective income tax rate 38,725 10,896 51,913 9,647 Changes in effective tax rates 135 (12) — — Impact of discrete items, net — 32 — 291 Income tax expense $ 38,860 $ 10,916 $ 51,913 $ 9,938 The discrete items for the three months ended June 30, 2020 primarily relates to income tax expense on the changes in value of certain contingent consideration partially offset by income tax benefit related to stock-based compensation. The discrete items for the six months ended June 30, 2020 relate to income tax benefits on the goodwill and trademark impairment charges, changes in value of certain contingent consideration and stock-based compensation partially offset by the income tax expense related to the equity in earnings from investments associated with the one-time gain on sale of LTS. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 310,300 $ 310,300 $ — $ — Commercial paper (1) 24,071 — 24,071 — Certificates of deposit (2) 679 — 679 — Investment securities at fair value Equity securities at fair value Marketable equity securities 25,187 25,187 — — Mutual funds invested in debt securities 23,325 23,325 — — Total equity securities at fair value 48,512 48,512 — — Debt securities available for sale U.S. government securities 12,512 — 12,512 — Corporate securities 49,843 — 49,843 — U.S. government and federal agency 15,467 — 15,467 — Commercial paper 29,443 — 29,443 — Foreign fixed-income securities 1,224 — 1,224 — Total debt securities available for sale 108,489 — 108,489 — PropTech convertible trading debt securities 2,481 — — 2,481 Total investment securities at fair value 159,482 48,512 108,489 2,481 Long-term investments Long-term investment securities at fair value (3) 33,053 — — — Total $ 527,585 $ 358,812 $ 133,239 $ 2,481 Liabilities: Fair value of contingent liability $ 4,522 $ — $ — $ 4,522 Total $ 4,522 $ — $ — $ 4,522 (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets, except for $11,364 that is included in Other current assets and $1,907 that is included in Other assets. (2) Amounts included in current restricted assets and non-current restricted assets on the condensed consolidated balance sheets. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2020 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 255,294 $ 255,294 $ — $ — Commercial paper (1) 44,397 — 44,397 — Certificates of deposit (2) 2,111 — 2,111 — Money market funds securing legal bonds (2) 535 535 — — Investment securities at fair value Equity securities at fair value Marketable equity securities 21,155 21,155 — — Mutual funds invested in debt securities 23,226 23,226 — — Total equity securities at fair value 44,381 44,381 — — Debt securities available for sale U.S. government securities 19,200 — 19,200 — Corporate securities 52,434 — 52,434 — U.S. government and federal agency 10,484 — 10,484 — Commercial paper 9,086 — 9,086 — Total debt securities available for sale 91,204 — 91,204 — Total investment securities at fair value 135,585 44,381 91,204 — Long-term investments Long-term investment securities at fair value (3) 34,218 — — — Total $ 472,140 $ 300,210 $ 137,712 $ — Liabilities: Fair value of contingent liability $ 999 $ — $ — $ 999 Total $ 999 $ — $ — $ 999 (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets, except for $10,374 that is included in current restricted assets and $1,907 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the condensed consolidated balance sheets. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. The fair value of the Level 2 certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is the rate offered by the financial institution. The fair value of investment securities at fair value included in Level 1 is based on quoted market prices from various stock exchanges. The Level 2 investment securities at fair value are based on quoted market prices of securities that are thinly traded, quoted prices for identical or similar assets in markets that are not active or inputs other than quoted prices such as interest rates and yield curves. The long-term investments are based on NAV per share provided by the partnerships based on the indicated market value of the underlying assets or investment portfolio. In accordance with Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed above because they are measured at fair value using the NAV practical expedient. The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at June 30, 2021: Quantitative Information about Level 3 Fair Value Measurements Fair Value at June 30, Valuation Technique Unobservable Input Range (Actual) PropTech convertible trading debt securities $ 2,481 Discounted cash flow Interest rates 3% - 5% Maturity Apr 2022 - Mar 2023 Volatility 43.6% - 111.6% Discount rate 23.75% - 43.33% Fair value of contingent liability $ 4,522 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 825,946 Risk-free rate for a 1.5-year term 0.16 % Leverage-adjusted equity volatility of peer firms 48.21 % The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2020: Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) Fair value of contingent liability $ 999 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 169,000 Risk-free rate for a 2-year term 0.13 % Leverage-adjusted equity volatility of peer firms 78.57 % In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record assets and liabilities at fair value on a nonrecurring basis. Generally, assets and liabilities are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of June 30, 2021 and December 31, 2020, respectively, except for investments in real estate ventures that were impaired as of June 30, 2021 and December 31, 2020, respectively. The Company’s investments in real estate ventures subject to nonrecurring fair value measurements are as follows: Fair Value Measurement Using: Three Months Ended June 30, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Impairment Charge Total Assets: Investments in real estate ventures $ 2,713 $ — $ — $ — $ — The Company estimated the fair value of its investments in real estate ventures using observable inputs such as market pricing based on recent events, however, significant judgment was required to select certain inputs from observed market data. The decrease in the investments in real estate ventures was attributed to the decline in the projected sales prices and the duration of the estimated sell out of the respective real estate ventures. The $2,713 of impairment charges were included in equity in earnings from real estate ventures for the three months ended June 30, 2021. Fair Value Measurement Using: Year Ended December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Impairment Charge Total Assets: Investments in real estate ventures $ 16,513 $ — $ — $ — $ — |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company’s business segments for the three and six months ended June 30, 2021 and 2020 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 and non-controlling interests for the three and six months ended June 30, 2021 and 2020 were as follows: Real Corporate Tobacco Estate and Other Total Three months ended June 30, 2021 Revenues $ 329,496 $ 400,033 $ — $ 729,529 Operating income (loss) 103,179 42,362 (8,465) 137,076 Equity in earnings from real estate ventures — 16,685 — 16,685 Depreciation and amortization 1,697 2,158 234 4,089 Three months ended June 30, 2020 Revenues $ 312,510 $ 133,250 $ — $ 445,760 Operating income (loss) 79,309 (1) (6,875) (2) (5,637) 66,797 Equity in losses from real estate ventures — (12,260) — (12,260) Depreciation and amortization 2,000 2,198 214 4,412 Six months ended June 30, 2021 Revenues $ 597,959 $ 675,334 $ — $ 1,273,293 Operating income (loss) 184,778 (3) 57,622 (15,121) 227,279 Equity in earnings from real estate ventures — 18,274 — 18,274 Identifiable assets 406,978 620,499 468,900 1,496,377 Depreciation and amortization 3,457 4,346 465 8,268 Capital expenditures 1,375 1,263 417 3,055 Six months ended June 30, 2020 Revenues $ 599,579 $ 300,669 $ — $ 900,248 Operating income (loss) 148,495 (4) (74,350) (5) (12,252) 61,893 Equity in losses from real estate ventures — (18,765) — (18,765) Identifiable assets 357,518 557,505 428,386 1,343,409 Depreciation and amortization 4,042 4,511 434 8,987 Capital expenditures 2,973 3,249 20 6,242 (1) Operating income includes $53 of litigation settlement and judgment expense. (2) Operating loss includes $2,961 of restructuring charges. (3) Operating income includes $2,722 received from a litigation settlement associated with the MSA (which reduced cost of sales) and $5 of litigation settlement and judgment expense. (4) Operating income includes $53 of litigation settlement and judgment expense. (5) Operating loss includes $58,252 of impairment charges related to the impairments of goodwill and other intangible assets and $2,961 of restructuring charges. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 Inc. (“Vector Tobacco”), Liggett Vector Brands LLC (“Liggett Vector Brands”), New Valley LLC (“New Valley”) and other less significant subsidiaries. New Valley includes the accounts of Douglas Elliman Realty, LLC (“Douglas Elliman”) and other less significant subsidiaries. All significant intercompany balances and transactions have been eliminated. Liggett and Vector Tobacco are engaged in the manufacture and sale of cigarettes in the United States. Liggett Vector Brands coordinates Liggett and Vector Tobacco’s sales and marketing efforts. Certain references to “Liggett” refer to the Company’s tobacco operations, including the business of Liggett and Vector Tobacco, unless otherwise specified. New Valley is engaged in the real estate business. |
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 of the 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, 2020 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 : |
Investments in Real Estate Ventures | Investments in Real Estate Ventures: In accounting for its investments in real estate ventures, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as (a) entities in which the equity investment at risk is not sufficient to finance its activities without additional subordinated financial support; (b) as a group, the equity investors at risk lack 1) the power to direct the activities of a legal entity that most significantly impact the entity’s economic performance, 2) the obligation to absorb the expected losses of the entity, or 3) the right to receive the expected residual returns of the entity; or (c) as a group, the equity investors have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company’s interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s). Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the VIE, any unfunded capital commitments to the VIE, and, in some cases, guarantees in connection with debt on the specific project. The Company’s maximum exposure to loss in its investment in consolidated VIEs is limited to its investment, which is the carrying value of the investment net of the non-controlling interest. Creditors of the consolidated VIEs have no recourse to the general credit of the primary beneficiary. |
Restricted Cash | Amounts included in current restricted assets and non-current restricted assets represent cash and cash equivalents required to be deposited into escrow for bonds required to appeal adverse product liability judgments, amounts required for letters of credit related to office leases, and certain deposit requirements for banking arrangements. The restrictions related to the appellate bonds will remain in place until the appeal process has been completed. The restrictions related to the letters of credit will remain in place for the duration of the respective lease. The restrictions related to the banking arrangements will remain in place for the duration of the arrangement. |
New Accounting Pronouncements | New Accounting Pronouncements : Accounting Standards Updates (“ASU”) adopted in 2021 : In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This update simplifies various aspects related to accounting for income taxes, removes certain exceptions to the general principles in Accounting Standards Codification (“ASC”) 740, and clarifies and amends existing guidance to improve consistent application. ASU No. 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. Adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”). The new standard clarifies the interaction of accounting for the transition into and out of the equity method. The new standard also clarifies the accounting for measuring certain purchased options and forward contracts to acquire investments. The ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. ASUs to be adopted in future periods: In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04” ). This ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance is effective for all entities for contract modifications beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01 to clarify the scope of the guidance and allow certain aspects of Topic 848 to be applied to all derivative instruments that undergo a modification of the interest rate used for discounting, margining or contract price alignment as a result of the reference reform. The Company has not yet determined the extent to which it will utilize these expedients and exceptions should a modification occur. The Company does not anticipate an impact on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Net Income for Purposes of Determining Basic and Diluted EPS | Net income for purposes of determining basic EPS was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income attributed to Vector Group Ltd. $ 93,305 $ 25,774 $ 125,262 $ 22,543 Income attributed to participating securities (952) (707) (1,686) (1,268) Net income applicable to common shares attributed to Vector Group Ltd. $ 92,353 $ 25,067 $ 123,576 $ 21,275 Net income for purposes of determining diluted EPS was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income attributed to Vector Group Ltd. $ 93,305 $ 25,774 $ 125,262 $ 22,543 Income attributable to 5.50% Variable Interest Senior Convertible Notes — (375) — — Income attributed to participating securities (952) (707) (1,686) (1,268) Net income applicable to common shares attributed to Vector Group Ltd. $ 92,353 $ 24,692 $ 123,576 $ 21,275 |
Basic and Diluted EPS Calculation Shares | Basic and diluted EPS were calculated using the following common shares: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted-average shares for basic EPS 152,285,182 149,379,306 152,267,410 148,189,710 Plus incremental shares related to convertible debt — 1,379,454 — — Plus incremental shares related to stock options and non-vested restricted stock 282,313 88,100 206,381 85,701 Weighted-average shares for diluted EPS 152,567,495 150,846,860 152,473,791 148,275,411 |
Outstanding Shares Not Included in the Computation of Diluted EPS | The following non-vested restricted stock were outstanding during the three and six months ended June 30, 2021 and 2020, but were not included in the computation of diluted EPS because the impact of the per share expense associated with the restricted stock was greater than the average market price of the common shares during the respective periods. The following shares issuable upon the conversion of convertible debt were outstanding during the three and six months ended June 30, 2020, but were not included in the computation of diluted EPS because the impact of the common shares issuable under the convertible debt were anti-dilutive to EPS. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted-average shares of non-vested restricted stock — 625,122 — 625,122 Weighted-average expense per share $ — $ 19.54 $ — $ 19.54 Weighted-average number of shares issuable upon conversion of debt — — — 4,874,072 Weighted-average conversion price $ — $ — $ — $ 20.27 |
Schedule of Amounts Expensed for Restructuring | The following table summarizes amounts expensed for the three and six months ended June 30, 2020: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Cash Charges: Employee severance and benefits $ 1,599 $ 1,599 Other restructuring expenses 218 218 1,817 1,817 Non-Cash: Loss on fixed assets associated with consolidation of sales offices 1,144 1,144 Total restructuring charges $ 2,961 $ 2,961 |
Schedule of Activity for Restructuring | The following table presents the activity under the Real Estate segment restructuring plan for the six months ended June 30, 2020: Employee Severance and Benefits Other Non-Cash Loss on Fixed Assets Total Accrual balance as of January 1, 2020 $ — $ — $ — $ — Restructuring charges 1,599 218 1,144 2,961 Utilized (1,239) — (1,144) (2,383) Accrual balance as of June 30, 2020 $ 360 $ 218 $ — $ 578 |
Schedule of Other Income (Loss), Net | Other, net consisted of: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Interest and dividend income $ 525 $ 968 $ 1,136 $ 3,648 Net gains (losses) recognized on investment securities 8,469 4,781 10,918 (7,459) Net periodic benefit cost other than the service costs (243) (454) (487) (909) Credit loss income (expense) — 1,128 — (432) Other (expense) income (3,173) 1,212 (3,235) 2,132 Other, net $ 5,578 $ 7,635 $ 8,332 $ (3,020) |
Schedule of Other Assets | Other assets consisted of: June 30, December 31, 2020 Restricted assets $ 4,170 $ 3,456 Prepaid pension costs 35,751 35,209 Contract assets, net 23,538 24,002 Other assets 35,212 32,359 Total other assets $ 98,671 $ 95,026 |
Schedule of Other Current Liabilities | Other current liabilities consisted of: June 30, December 31, 2020 Accounts payable $ 10,718 $ 12,846 Accrued promotional expenses 49,269 45,579 Accrued excise and payroll taxes payable, net 22,973 13,849 Accrued interest 30,998 31,624 Commissions payable 38,832 25,615 Accrued salaries and benefits 25,517 27,104 Contract liabilities 7,507 7,633 Allowance for sales returns 7,414 7,356 Other current liabilities 30,270 27,331 Total other current liabilities $ 223,498 $ 198,937 |
Schedule of Components 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 $ 490,390 $ 352,842 Restricted cash and cash equivalents included in other current assets 11,364 10,374 Restricted cash and cash equivalents included in other assets 3,343 2,461 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 505,097 $ 365,677 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In the following table, revenue is disaggregated by major product line for the Tobacco segment: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Tobacco Segment Revenues: Core Discount Brands - Eagle 20’s, Pyramid , Montego , Grand Prix , Liggett Select , and Eve $ 313,264 $ 295,388 $ 566,520 $ 564,393 Other Brands 16,232 17,122 31,439 35,186 Total tobacco revenues $ 329,496 $ 312,510 $ 597,959 $ 599,579 In the following table, revenue is disaggregated by major services line and primary geographical market for the Real Estate segment: Three Months Ended June 30, 2021 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 105,852 $ 66,419 $ 121,966 $ 51,518 $ 345,755 Commission and other brokerage income - development marketing 15,919 — 14,078 281 30,278 Property management revenue 9,762 139 — — 9,901 Escrow and title fees 1,413 392 — 4,236 6,041 Total Douglas Elliman revenue 132,946 66,950 136,044 56,035 391,975 Other real estate revenues 6,750 — — 1,308 8,058 Total real estate revenues $ 139,696 $ 66,950 $ 136,044 $ 57,343 $ 400,033 Three Months Ended June 30, 2020 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 35,861 $ 35,631 $ 23,232 $ 20,024 $ 114,748 Commission and other brokerage income - development marketing 5,173 — 2,747 586 8,506 Property management revenue 8,617 215 — — 8,832 Escrow and title fees 474 369 — — 843 Total Douglas Elliman revenue 50,125 36,215 25,979 20,610 132,929 Other real estate revenues — — — 321 321 Total real estate revenues $ 50,125 $ 36,215 $ 25,979 $ 20,931 $ 133,250 Six Months Ended June 30, 2021 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 175,987 $ 122,669 $ 197,519 $ 92,596 $ 588,771 Commission and other brokerage income - development marketing 24,363 — 21,385 614 46,362 Property management revenue 18,857 312 — — 19,169 Escrow and title fees 1,879 809 — 7,761 10,449 Total Douglas Elliman revenue 221,086 123,790 218,904 100,971 664,751 Other real estate revenues 6,750 — — 3,833 10,583 Total real estate revenues $ 227,836 $ 123,790 $ 218,904 $ 104,804 $ 675,334 Six Months Ended June 30, 2020 New York City Northeast Southeast West Total Real Estate Segment Revenues : Commission and other brokerage income - existing home sales $ 85,970 $ 70,355 $ 53,410 $ 45,724 $ 255,459 Commission and other brokerage income - development marketing 13,624 — 9,469 668 23,761 Property management revenue 17,179 432 — — 17,611 Escrow and title fees 1,067 632 — — 1,699 Total Douglas Elliman revenue 117,840 71,419 62,879 46,392 298,530 Other real estate revenues — — — 2,139 2,139 Total real estate revenues $ 117,840 $ 71,419 $ 62,879 $ 48,531 $ 300,669 |
Contract Balances | The following table provides information about contract assets and contract liabilities from development marketing and commercial leasing contracts with customers: June 30, 2021 December 31, 2020 Receivables, which are included in accounts receivable - trade, net $ 2,703 $ 1,520 Contract assets, net, which are included in other current assets 6,563 6,529 Payables, which are included in other current liabilities 2,072 1,113 Contract liabilities, which are included in other current liabilities 7,507 7,633 Contract assets, net, which are included in other assets 23,538 24,002 Contract liabilities, which are included in other liabilities 34,302 32,104 |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Rollforward of Allowance for Credit Losses | The following is the rollforward of the allowance for credit losses for the six months ended June 30, 2021: January 1, Current Period Provision Write-offs Recoveries June 30, Allowance for credit losses: Real estate broker agent receivables $ 7,038 $ 289 (1) $ 199 $ — $ 7,128 New Valley term loan receivables 15,928 — — — 15,928 _____________________________ (1) The bad debt expense related to the real estate broker agent receivables is included in Operating, selling, administrative and general expenses on the condensed consolidated statements of operations. The following is the rollforward of the allowance for credit losses for the six months ended June 30, 2020: January 1, Current Period Provision Write-offs Recoveries June 30, Allowance for credit losses: Real estate broker agent receivables $ 6,132 $ 1,270 (1) $ 41 $ — $ 7,361 New Valley term loan receivables 3,100 432 (2) — — 3,532 _____________________________ (1) The bad debt expense related to the real estate broker agent receivables is included in Operating, selling, administrative and general expenses on the condensed consolidated statements of operations. (2) The credit losses related to the New Valley term loan receivables are included in Other, net on the condensed consolidated statements of operations. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease cost $ 9,292 $ 9,356 $ 18,593 $ 18,780 Short-term lease cost 261 389 552 790 Variable lease cost 1,029 588 2,037 1,155 Finance lease cost: Amortization 14 39 30 77 Interest on lease liabilities 2 4 5 7 Total lease cost $ 10,598 $ 10,376 $ 21,217 $ 20,809 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 21,879 $ 11,953 Operating cash flows from finance leases 5 7 Financing cash flows from finance leases 28 69 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3,432 9,076 Finance leases — 60 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: June 30, December 31, 2021 2020 Operating leases: Operating lease right-of-use assets $ 138,057 $ 145,356 Current operating lease liability $ 26,625 $ 27,207 Non-current operating lease liability 144,487 154,199 Total operating lease liabilities $ 171,112 $ 181,406 Finance leases: Investments in real estate, net (1) $ 45 $ 62 Property, plant and equipment, at cost $ 127 $ 127 Accumulated amortization (57) (44) Property and equipment, net $ 70 $ 83 Current portion of notes payable and long-term debt $ 57 $ 57 Notes payable, long-term debt and other obligations, less current portion 67 96 Total finance lease liabilities $ 124 $ 153 Weighted average remaining lease term: Operating leases 7.62 7.87 Finance leases 2.27 2.71 Weighted average discount rate: Operating leases 9.24 % 9.26 % Finance leases 7.98 % 7.82 % |
Maturities of Operating Lease Liabilities | As of June 30, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Period Ending December 31: Remainder of 2021 $ 21,960 $ 33 2022 38,780 60 2023 34,007 35 2024 28,054 8 2025 22,895 — 2026 19,114 — Thereafter 78,236 — Total lease payments 243,046 136 Less imputed interest (71,934) (12) Total $ 171,112 $ 124 |
Maturities of Financing Lease Liabilities | As of June 30, 2021, maturities of lease liabilities were as follows: Operating Leases Finance Period Ending December 31: Remainder of 2021 $ 21,960 $ 33 2022 38,780 60 2023 34,007 35 2024 28,054 8 2025 22,895 — 2026 19,114 — Thereafter 78,236 — Total lease payments 243,046 136 Less imputed interest (71,934) (12) Total $ 171,112 $ 124 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of: June 30, December 31, Leaf tobacco $ 41,693 $ 42,988 Other raw materials 5,292 5,987 Work-in-process 674 520 Finished goods 66,233 68,781 Inventories at current cost 113,892 118,276 LIFO adjustments (20,731) (20,731) $ 93,161 $ 97,545 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities at Fair Value | Investment securities consisted of the following: June 30, December 31, 2020 Debt securities available for sale $ 108,489 $ 91,204 Property technology (“PropTech”) convertible trading debt securities 2,481 — Equity securities at fair value: Marketable equity securities 25,187 21,155 Mutual funds invested in debt securities 23,325 23,226 Long-term investment securities at fair value (1) 33,053 34,218 Total equity securities at fair value 81,565 78,599 Total investment securities at fair value 192,535 169,803 Less: Long-term investment securities at fair value (1) 33,053 34,218 PropTech convertible trading debt securities 2,481 — Current investment securities at fair value 157,001 135,585 Long-term investment securities at fair value (1) 33,053 34,218 Equity-method investments 19,828 18,310 PropTech convertible trading debt securities 2,481 — Total long-term investments $ 55,362 $ 52,528 (1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820. The components of debt securities available for sale at June 30, 2021 were as follows: Cost Gross Gross Fair Marketable debt securities $ 108,217 $ 272 $ — $ 108,489 The components of debt securities available for sale at December 31, 2020 were as follows: Cost Gross Gross Fair Marketable debt securities $ 90,621 $ 583 $ — $ 91,204 |
Schedule of Maturity Dates of Fixed Income Securities | The table below summarizes the maturity dates of debt securities available for sale at June 30, 2021. Investment Type: Fair Value Under 1 Year 1 Year up to 5 Years More than 5 Years U.S. Government securities $ 12,512 $ 10,195 $ 2,317 $ — Corporate securities 49,843 31,457 18,386 — U.S. mortgage-backed securities 15,467 200 15,267 — Commercial paper 29,443 29,443 — — Foreign fixed-income securities 1,224 — 1,224 — Total debt securities available for sale by maturity dates $ 108,489 $ 71,295 $ 37,194 $ — |
Schedule of Realized Gains (Losses) | Net gains (losses) recognized on investment securities were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net gains (losses) recognized on equity securities $ 8,522 $ 4,711 $ 10,930 $ (7,026) Net gains (losses) recognized on debt securities available for sale 10 70 65 (47) Impairment expense (44) — (58) (386) Net losses recognized on PropTech convertible trading debt securities (19) — (19) — Net gains (losses) recognized on investment securities $ 8,469 $ 4,781 $ 10,918 $ (7,459) Gross realized gains and losses on debt securities available for sale were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Gross realized gains on sales $ 11 $ 72 $ 67 $ 170 Gross realized losses on sales (1) (2) (2) (217) Net gains (losses) recognized on debt securities available for sale $ 10 $ 70 $ 65 $ (47) Impairment expense $ (44) $ — $ (58) $ (386) |
Equity Securities at Fair Value | The following is a summary of unrealized and realized net gains and losses recognized in net income on equity securities at fair value during the three and six months ended June 30, 2021 and 2020, respectively: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net gains (losses) recognized on equity securities $ 8,522 $ 4,711 $ 10,930 $ (7,026) Less: Net gains (losses) recognized on equity securities sold 4,054 601 4,223 (17) Net unrealized gains (losses) recognized on equity securities still held at the reporting date $ 4,468 $ 4,110 $ 6,707 $ (7,009) |
Equity Method Investments | Equity-method investments consisted of the following: June 30, December 31, 2020 Mutual fund and hedge funds $ 19,828 $ 18,310 Equity in earnings from investments were: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Mutual fund and hedge funds $ 941 $ 2,207 $ 1,518 $ (693) LTS — — — 53,052 Equity in earnings from investments $ 941 $ 2,207 $ 1,518 $ 52,359 |
New Valley LLC (Tables)
New Valley LLC (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Investments in Real Estate Ventures | The components of “Investments in real estate ventures” were as follows: Range of Ownership (1) June 30, 2021 December 31, 2020 Condominium and Mixed Use Development: New York City Standard Metropolitan Statistical Area (“SMSA”) 4.2% - 46.7% $ 25,233 $ 30,465 All other U.S. areas 19.6% - 77.8% 36,253 37,773 61,486 68,238 Hotels: New York City SMSA 0.4% - 17.8% 2,114 2,629 International 49.0% 1,324 1,852 3,438 4,481 Commercial: New York City SMSA 49.0% — 2,591 All other U.S. areas 1.6% 7,139 7,084 7,139 9,675 Other: 15.0% - 50.0% 4,129 3,006 Investments in real estate ventures $ 76,192 $ 85,400 _____________________________ (1) The Range of Ownership reflects New Valley’s estimated current ownership percentage. New Valley’s actual ownership percentage as well as the percentage of earnings and cash distributions may ultimately differ as a result of a number of factors including potential dilution, financing or admission of additional partners. Contributions: The components of New Valley’s contributions to its investments in real estate ventures were as follows: Six Months Ended June 30, 2021 2020 Condominium and Mixed Use Development: New York City SMSA $ 396 $ 1,169 All other U.S. areas 6,661 2,161 7,057 3,330 Apartment Buildings: All other U.S. areas — 76 — 76 Hotels: New York City SMSA 1,246 — 1,246 — Other: 1,599 452 Total contributions $ 9,902 $ 3,858 Distributions: The components of distributions received by New Valley from its investments in real estate ventures were as follows: Six Months Ended June 30, 2021 2020 Condominium and Mixed Use Development: New York City SMSA $ 3,338 $ 1,735 All other U.S. areas 13,594 5,214 16,932 6,949 Apartment Buildings: All other U.S. areas 17,567 — 17,567 — Commercial: New York City SMSA — 3 All other U.S. areas 219 52 219 55 Other 75 23 Total distributions $ 34,793 $ 7,027 Equity in Earnings (losses) from Real Estate Ventures: New Valley recognized equity in earnings (losses) from real estate ventures as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Condominium and Mixed Use Development: New York City SMSA $ (967) $ (5,104) $ (2,472) $ (8,451) All other U.S. areas 7,315 (6,489) 7,274 (9,288) 6,348 (11,593) 4,802 (17,739) Apartment Buildings: All other U.S. areas 12,959 (76) 17,567 (76) 12,959 (76) 17,567 (76) Hotels: New York City SMSA (1) (386) (542) (848) (649) International (23) (90) (529) (551) (409) (632) (1,377) (1,200) Commercial: New York City SMSA (2,713) 301 (2,591) 227 All other U.S. areas 180 (264) 273 (15) (2,533) 37 (2,318) 212 Other: 320 4 (400) 38 Equity in earnings (losses) from real estate ventures $ 16,685 $ (12,260) $ 18,274 $ (18,765) _____________________________ (1) The Company recognized a liability, classified in Other current liabilities, of $333 as a result of recording equity in losses in excess of the joint venture’s carrying value. 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, 2021 Condominium and Mixed Use Development: New York City SMSA $ 25,233 All other U.S. areas 36,253 61,486 Hotels: New York City SMSA 2,114 International 1,324 3,438 Commercial: All other U.S. areas 7,139 7,139 Other 4,129 Total maximum exposure to loss $ 76,192 Other Condominium and Mixed Use Development: Three Months Ended Six Months Ended 2021 2020 2021 2020 Income Statements Revenue $ 4,991 $ 1,830 $ 15,278 $ 33,409 Cost of goods sold — — — 22,100 Other expenses 16,997 14,013 42,340 31,926 Loss from continuing operations $ (12,006) $ (12,183) $ (27,062) $ (20,617) |
Investments in Real Estate, net | Investments in Real Estate, net: The components of “Investments in real estate, net” were as follows: June 30, December 31, Escena, net $ 9,608 $ 9,735 Townhome A (11 Beach Street) — 5,896 Investments in real estate, net $ 9,608 $ 15,631 Escena. The assets of “Escena, net” were as follows: June 30, December 31, Land and land improvements $ 8,911 $ 8,911 Building and building improvements 1,926 1,926 Other 1,655 1,672 12,492 12,509 Less accumulated depreciation (2,884) (2,774) $ 9,608 $ 9,735 |
Notes Payable, Long-Term Debt_2
Notes Payable, Long-Term Debt and Other Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
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 $ — 6.125% Senior Secured Notes due 2025 — 850,000 10.5% Senior Notes due 2026, net of unamortized discount of $2,849 and $3,040 552,151 551,960 Liggett: Equipment loans 77 89 Other 18,797 25,484 Notes payable, long-term debt and other obligations 1,446,025 1,427,533 Less: Debt issuance costs (30,640) (21,247) Total notes payable, long-term debt and other obligations 1,415,385 1,406,286 Less: Current maturities (12,558) (12,557) Amount due after one year $ 1,402,827 $ 1,393,729 |
Schedule of Non-cash Interest Expense - Vector | Non-Cash Interest Expense — Vector : Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Amortization of debt discount, net $ 97 $ 847 $ 191 $ 5,447 Amortization of debt issuance costs 942 889 1,835 2,047 Loss on extinguishment of 6.125% Senior Secured Notes — — 8,349 — $ 1,039 $ 1,736 $ 10,375 $ 7,494 |
Schedule of Fair Value of Notes Payable and Long-term Debt | Fair Value of Notes Payable and Long-Term Debt : June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Senior Notes $ 1,427,151 $ 1,482,980 $ 1,401,960 $ 1,464,208 Liggett and other 18,874 18,880 25,573 25,581 Notes payable and long-term debt $ 1,446,025 $ 1,501,860 $ 1,427,533 $ 1,489,789 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contingencies | State Number Florida 45 Illinois 14 Nevada 7 New Mexico 5 Louisiana 2 Hawaii 1 The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2021 was as follows: Current Liabilities Non-Current Liabilities Payments due under Master Settlement Agreement Litigation Accruals Total Payments due under Master Settlement Agreement Litigation Accruals Total Balance as of January 1, 2021 $ 38,767 $ 3,967 $ 42,734 $ 17,933 $ 19,268 $ 37,201 Expenses 80,922 5 80,927 — — — Change in MSA obligations capitalized as inventory 296 — 296 — — — Payments (35,206) (4,065) (39,271) — — — Reclassification to/(from) non-current liabilities 4,709 3,351 8,060 (4,709) (3,351) (8,060) Interest on withholding — 288 288 — 851 851 Balance as of June 30, 2021 $ 89,488 $ 3,546 $ 93,034 $ 13,224 $ 16,768 $ 29,992 The activity in the Company’s accruals for the MSA and tobacco litigation for the six months ended June 30, 2020 was as follows: Current Liabilities Non-Current Liabilities Payments due under Master Settlement Agreement Litigation Accruals Total Payments due under Master Settlement Agreement Litigation Accruals Total Balance as of January 1, 2020 $ 34,116 $ 4,249 $ 38,365 $ 17,275 $ 20,594 $ 37,869 Expenses 96,215 28 96,243 — — — Change in MSA obligations capitalized as inventory (137) — (137) — — — Payments (27,214) (4,324) (31,538) — — — Reclassification to/(from) non-current liabilities (855) 3,252 2,397 855 (3,252) (2,397) Interest on withholding — 238 238 — 932 932 Balance as of June 30, 2020 $ 102,125 $ 3,443 $ 105,568 $ 18,130 $ 18,274 $ 36,404 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | The components of Goodwill and other intangible assets, net were as follows: December 31, Impairment Losses Amortization June 30, Goodwill $ 31,756 $ — $ — $ 31,756 Indefinite life intangibles: Intangible asset associated with benefit under the MSA 107,511 — — 107,511 Trademark - Douglas Elliman 68,000 — 68,000 Intangibles with a finite life, net 310 — (80) 230 Total goodwill and other intangible assets, net $ 207,577 $ — $ (80) $ 207,497 December 31, Impairment Losses Amortization June 30, Goodwill $ 78,008 $ (46,252) $ — $ 31,756 Indefinite life intangibles: Intangible asset associated with benefit under the MSA 107,511 — — 107,511 Trademark - Douglas Elliman 80,000 (12,000) — 68,000 Intangibles with a finite life, net 474 — (82) 392 Total goodwill and other intangible assets, net $ 265,993 $ (58,252) $ (82) $ 207,659 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The Company’s income tax expense consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Income before provision for income taxes $ 132,165 $ 36,690 $ 177,175 $ 32,481 Income tax expense using estimated annual effective income tax rate 38,725 10,896 51,913 9,647 Changes in effective tax rates 135 (12) — — Impact of discrete items, net — 32 — 291 Income tax expense $ 38,860 $ 10,916 $ 51,913 $ 9,938 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
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, 2021 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 310,300 $ 310,300 $ — $ — Commercial paper (1) 24,071 — 24,071 — Certificates of deposit (2) 679 — 679 — Investment securities at fair value Equity securities at fair value Marketable equity securities 25,187 25,187 — — Mutual funds invested in debt securities 23,325 23,325 — — Total equity securities at fair value 48,512 48,512 — — Debt securities available for sale U.S. government securities 12,512 — 12,512 — Corporate securities 49,843 — 49,843 — U.S. government and federal agency 15,467 — 15,467 — Commercial paper 29,443 — 29,443 — Foreign fixed-income securities 1,224 — 1,224 — Total debt securities available for sale 108,489 — 108,489 — PropTech convertible trading debt securities 2,481 — — 2,481 Total investment securities at fair value 159,482 48,512 108,489 2,481 Long-term investments Long-term investment securities at fair value (3) 33,053 — — — Total $ 527,585 $ 358,812 $ 133,239 $ 2,481 Liabilities: Fair value of contingent liability $ 4,522 $ — $ — $ 4,522 Total $ 4,522 $ — $ — $ 4,522 (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets, except for $11,364 that is included in Other current assets and $1,907 that is included in Other assets. (2) Amounts included in current restricted assets and non-current restricted assets on the condensed consolidated balance sheets. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2020 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 255,294 $ 255,294 $ — $ — Commercial paper (1) 44,397 — 44,397 — Certificates of deposit (2) 2,111 — 2,111 — Money market funds securing legal bonds (2) 535 535 — — Investment securities at fair value Equity securities at fair value Marketable equity securities 21,155 21,155 — — Mutual funds invested in debt securities 23,226 23,226 — — Total equity securities at fair value 44,381 44,381 — — Debt securities available for sale U.S. government securities 19,200 — 19,200 — Corporate securities 52,434 — 52,434 — U.S. government and federal agency 10,484 — 10,484 — Commercial paper 9,086 — 9,086 — Total debt securities available for sale 91,204 — 91,204 — Total investment securities at fair value 135,585 44,381 91,204 — Long-term investments Long-term investment securities at fair value (3) 34,218 — — — Total $ 472,140 $ 300,210 $ 137,712 $ — Liabilities: Fair value of contingent liability $ 999 $ — $ — $ 999 Total $ 999 $ — $ — $ 999 (1) Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets, except for $10,374 that is included in current restricted assets and $1,907 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the condensed consolidated balance sheets. |
Unobservable Inputs Related to the Valuations of the Level 3 Liabilities | The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at June 30, 2021: Quantitative Information about Level 3 Fair Value Measurements Fair Value at June 30, Valuation Technique Unobservable Input Range (Actual) PropTech convertible trading debt securities $ 2,481 Discounted cash flow Interest rates 3% - 5% Maturity Apr 2022 - Mar 2023 Volatility 43.6% - 111.6% Discount rate 23.75% - 43.33% Fair value of contingent liability $ 4,522 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 825,946 Risk-free rate for a 1.5-year term 0.16 % Leverage-adjusted equity volatility of peer firms 48.21 % The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2020: Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) Fair value of contingent liability $ 999 Monte Carlo simulation model Estimated fair value of the Douglas Elliman reporting unit $ 169,000 Risk-free rate for a 2-year term 0.13 % Leverage-adjusted equity volatility of peer firms 78.57 % |
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: Three Months Ended June 30, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Impairment Charge Total Assets: Investments in real estate ventures $ 2,713 $ — $ — $ — $ — Fair Value Measurement Using: Year Ended December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Impairment Charge Total Assets: Investments in real estate ventures $ 16,513 $ — $ — $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Financial Information for the Company's Operations Before Taxes | Financial information for the Company’s operations before taxes and non-controlling interests for the three and six months ended June 30, 2021 and 2020 were as follows: Real Corporate Tobacco Estate and Other Total Three months ended June 30, 2021 Revenues $ 329,496 $ 400,033 $ — $ 729,529 Operating income (loss) 103,179 42,362 (8,465) 137,076 Equity in earnings from real estate ventures — 16,685 — 16,685 Depreciation and amortization 1,697 2,158 234 4,089 Three months ended June 30, 2020 Revenues $ 312,510 $ 133,250 $ — $ 445,760 Operating income (loss) 79,309 (1) (6,875) (2) (5,637) 66,797 Equity in losses from real estate ventures — (12,260) — (12,260) Depreciation and amortization 2,000 2,198 214 4,412 Six months ended June 30, 2021 Revenues $ 597,959 $ 675,334 $ — $ 1,273,293 Operating income (loss) 184,778 (3) 57,622 (15,121) 227,279 Equity in earnings from real estate ventures — 18,274 — 18,274 Identifiable assets 406,978 620,499 468,900 1,496,377 Depreciation and amortization 3,457 4,346 465 8,268 Capital expenditures 1,375 1,263 417 3,055 Six months ended June 30, 2020 Revenues $ 599,579 $ 300,669 $ — $ 900,248 Operating income (loss) 148,495 (4) (74,350) (5) (12,252) 61,893 Equity in losses from real estate ventures — (18,765) — (18,765) Identifiable assets 357,518 557,505 428,386 1,343,409 Depreciation and amortization 4,042 4,511 434 8,987 Capital expenditures 2,973 3,249 20 6,242 (1) Operating income includes $53 of litigation settlement and judgment expense. (2) Operating loss includes $2,961 of restructuring charges. (3) Operating income includes $2,722 received from a litigation settlement associated with the MSA (which reduced cost of sales) and $5 of litigation settlement and judgment expense. (4) Operating income includes $53 of litigation settlement and judgment expense. (5) Operating loss includes $58,252 of impairment charges related to the impairments of goodwill and other intangible assets and $2,961 of restructuring charges. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Net Income for Purposes of Determining Basic and Diluted EPS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Net income attributed to Vector Group Ltd. | $ 93,305 | $ 25,774 | $ 125,262 | $ 22,543 |
Income attributed to participating securities, basic | (952) | (707) | (1,686) | (1,268) |
Net income applicable to common shares attributed to Vector Group Ltd., basic | 92,353 | 25,067 | 123,576 | 21,275 |
Income attributable to 5.50% Variable Interest Senior Convertible Notes | 0 | (375) | 0 | 0 |
Income attributed to participating securities, diluted | (952) | (707) | (1,686) | (1,268) |
Net income applicable to common shares attributed to Vector Group Ltd., diluted | $ 92,353 | $ 24,692 | $ 123,576 | $ 21,275 |
5.5% Variable Interest Senior Convertible Notes | Variable Interest Senior Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | 5.50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Basic and Diluted Earnings Per Share (in shares)) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Weighted-average shares for basic EPS (in shares) | 152,285,182 | 149,379,306 | 152,267,410 | 148,189,710 |
Plus incremental shares related to convertible debt (in shares) | 0 | 1,379,454 | 0 | 0 |
Plus incremental shares related to stock options and non-vested restricted stock (in shares) | 282,313 | 88,100 | 206,381 | 85,701 |
Weighted-average shares for diluted EPS (in shares) | 152,567,495 | 150,846,860 | 152,473,791 | 148,275,411 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Antidilutive Securities Excluded from Earnings Per Share) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Non-vested restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average number of shares (in shares) | 0 | 625,122 | 0 | 625,122 |
Weighted-average expense per share (in dollars per share) | $ 0 | $ 19.54 | $ 0 | $ 19.54 |
PropTech convertible debt securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average number of shares (in shares) | 0 | 0 | 0 | 4,874,072 |
Weighted-average conversion price (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 20.27 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Restructuring) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||||
Percent of positions eliminated | 25.00% | ||||
Restructuring charges | $ 0 | $ 2,961,000 | $ 0 | $ 2,961,000 | |
Accrual for restructuring charges | $ 0 | ||||
Employee severance and benefits | 1,599,000 | 1,599,000 | |||
Other restructuring expenses | 218,000 | 218,000 | |||
Cash charges | 1,817,000 | 1,817,000 | |||
Loss on fixed assets associated with consolidation of sales offices | 1,144,000 | 1,144,000 | |||
Total restructuring charges | $ 0 | $ 2,961,000 | $ 0 | $ 2,961,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Real Estate Segment Restructuring Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 1,817 | $ 1,817 |
Real estate | ||
Restructuring Reserve [Roll Forward] | ||
Accrual balance as of January 1, 2020 | 0 | |
Restructuring charges | 2,961 | |
Utilized | (2,383) | |
Accrual balance as of June 30, 2020 | 578 | 578 |
Real estate | Employee Severance and Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Accrual balance as of January 1, 2020 | 0 | |
Restructuring charges | 1,599 | |
Utilized | (1,239) | |
Accrual balance as of June 30, 2020 | 360 | 360 |
Real estate | Other | ||
Restructuring Reserve [Roll Forward] | ||
Accrual balance as of January 1, 2020 | 0 | |
Restructuring charges | 218 | |
Utilized | 0 | |
Accrual balance as of June 30, 2020 | 218 | 218 |
Real estate | Non-Cash Loss on Fixed Assets | ||
Restructuring Reserve [Roll Forward] | ||
Accrual balance as of January 1, 2020 | 0 | |
Restructuring charges | 1,144 | |
Utilized | (1,144) | |
Accrual balance as of June 30, 2020 | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Schedule of Other, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Interest and dividend income | $ 525 | $ 968 | $ 1,136 | $ 3,648 |
Net gains (losses) recognized on investment securities | 8,469 | 4,781 | 10,918 | (7,459) |
Net periodic benefit cost other than the service costs | (243) | (454) | (487) | (909) |
Credit loss income (expense) | 0 | 1,128 | 0 | (432) |
Other (expense) income | (3,173) | 1,212 | (3,235) | 2,132 |
Other, net | $ 5,578 | $ 7,635 | $ 8,332 | $ (3,020) |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Restricted assets | $ 4,170 | $ 3,456 |
Prepaid pension costs | 35,751 | 35,209 |
Contract assets, net | 23,538 | 24,002 |
Other assets | 35,212 | 32,359 |
Total other assets | $ 98,671 | $ 95,026 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Accounts payable | $ 10,718 | $ 12,846 |
Accrued promotional expenses | 49,269 | 45,579 |
Accrued excise and payroll taxes payable, net | 22,973 | 13,849 |
Accrued interest | 30,998 | 31,624 |
Commissions payable | 38,832 | 25,615 |
Accrued salaries and benefits | 25,517 | 27,104 |
Contract liabilities | 7,507 | 7,633 |
Allowance for sales returns | 7,414 | 7,356 |
Other current liabilities | 30,270 | 27,331 |
Total other current liabilities | $ 223,498 | $ 198,937 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 490,390 | $ 352,842 | ||
Restricted cash and cash equivalents included in other current assets | 11,364 | 10,374 | ||
Restricted cash and cash equivalents included in other assets | 3,343 | 2,461 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 505,097 | $ 365,677 | $ 549,134 | $ 379,476 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Tobacco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 329,496 | $ 312,510 | $ 597,959 | $ 599,579 |
Tobacco | Core Discount Brands - Eagle 20’s, Pyramid, Montego, Grand Prix, Liggett Select, and Eve | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 313,264 | 295,388 | 566,520 | 564,393 |
Tobacco | Other Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,232 | 17,122 | 31,439 | 35,186 |
Real estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 400,033 | 133,250 | 675,334 | 300,669 |
Real estate | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 139,696 | 50,125 | 227,836 | 117,840 |
Real estate | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 66,950 | 36,215 | 123,790 | 71,419 |
Real estate | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 136,044 | 25,979 | 218,904 | 62,879 |
Real estate | West | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 57,343 | 20,931 | 104,804 | 48,531 |
Real estate | Commission and other brokerage income - existing home sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 345,755 | 114,748 | 588,771 | 255,459 |
Real estate | Commission and other brokerage income - existing home sales | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 105,852 | 35,861 | 175,987 | 85,970 |
Real estate | Commission and other brokerage income - existing home sales | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 66,419 | 35,631 | 122,669 | 70,355 |
Real estate | Commission and other brokerage income - existing home sales | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 121,966 | 23,232 | 197,519 | 53,410 |
Real estate | Commission and other brokerage income - existing home sales | West | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 51,518 | 20,024 | 92,596 | 45,724 |
Real estate | Commission and other brokerage income - development marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 30,278 | 8,506 | 46,362 | 23,761 |
Real estate | Commission and other brokerage income - development marketing | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 15,919 | 5,173 | 24,363 | 13,624 |
Real estate | Commission and other brokerage income - development marketing | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 0 | 0 | 0 | 0 |
Real estate | Commission and other brokerage income - development marketing | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 14,078 | 2,747 | 21,385 | 9,469 |
Real estate | Commission and other brokerage income - development marketing | West | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 281 | 586 | 614 | 668 |
Real estate | Property management revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 9,901 | 8,832 | 19,169 | 17,611 |
Real estate | Property management revenue | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 9,762 | 8,617 | 18,857 | 17,179 |
Real estate | Property management revenue | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 139 | 215 | 312 | 432 |
Real estate | Property management revenue | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 0 | 0 | 0 | 0 |
Real estate | Property management revenue | West | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 0 | 0 | 0 | 0 |
Real estate | Escrow and title fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 6,041 | 843 | 10,449 | 1,699 |
Real estate | Escrow and title fees | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 1,413 | 474 | 1,879 | 1,067 |
Real estate | Escrow and title fees | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 392 | 369 | 809 | 632 |
Real estate | Escrow and title fees | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 0 | 0 | 0 | 0 |
Real estate | Escrow and title fees | West | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 4,236 | 0 | 7,761 | 0 |
Real estate | Total Douglas Elliman revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 391,975 | 132,929 | 664,751 | 298,530 |
Real estate | Total Douglas Elliman revenue | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 132,946 | 50,125 | 221,086 | 117,840 |
Real estate | Total Douglas Elliman revenue | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 66,950 | 36,215 | 123,790 | 71,419 |
Real estate | Total Douglas Elliman revenue | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 136,044 | 25,979 | 218,904 | 62,879 |
Real estate | Total Douglas Elliman revenue | West | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 56,035 | 20,610 | 100,971 | 46,392 |
Real estate | Other real estate revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 8,058 | 321 | 10,583 | 2,139 |
Real estate | Other real estate revenues | New York City | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 6,750 | 0 | 6,750 | 0 |
Real estate | Other real estate revenues | Northeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 0 | 0 | 0 | 0 |
Real estate | Other real estate revenues | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | 0 | 0 | 0 | 0 |
Real estate | Other real estate revenues | West | ||||
Disaggregation of Revenue [Line Items] | ||||
Total real estate revenues | $ 1,308 | $ 321 | $ 3,833 | $ 2,139 |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Receivables, which are included in accounts receivable - trade, net | $ 2,703 | $ 2,703 | $ 1,520 | ||
Contract assets, net, which are included in other current assets | 6,563 | 6,563 | 6,529 | ||
Payables, which are included in other current liabilities | 2,072 | 2,072 | 1,113 | ||
Contract liabilities, which are included in other current liabilities | 7,507 | 7,507 | 7,633 | ||
Contract assets, net, which are included in other assets | 23,538 | 23,538 | 24,002 | ||
Contract liabilities, which are included in other liabilities | 34,302 | 34,302 | $ 32,104 | ||
Revenue recognized on contract liabilities | $ 1,717 | $ 2,649 | |||
Revenue recognized relating to performance obligations satisfied or partially satisfied in prior periods | $ 3,921 | $ 6,658 |
Current Expected Credit Losse_2
Current Expected Credit Losses (Narrative) (Details) $ in Thousands | Jun. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
New Valley | Affiliated Entity | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for credit losses | $ 15,928 | $ 15,928 | $ 3,532 | $ 3,100 |
Number of loans | loan | 2 | 2 | ||
Total amortized cost basis | $ 15,928 | $ 15,928 | ||
Interest receivable | 6,428 | 6,428 | ||
Real estate broker agent receivables | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for credit losses | $ 7,128 | $ 7,038 | $ 7,361 | $ 6,132 |
Current Expected Credit Losse_3
Current Expected Credit Losses (Rollforward) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
New Valley | Affiliated Entity | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 15,928 | $ 3,100 |
Current Period Provision | 0 | 432 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | 15,928 | 3,532 |
Real estate broker agent receivables | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 7,038 | 6,132 |
Current Period Provision | 289 | 1,270 |
Write-offs | 199 | 41 |
Recoveries | 0 | 0 |
Ending balance | $ 7,128 | $ 7,361 |
Leases (Lease Expense and Cash
Leases (Lease Expense and Cash Outflows from Operating and Finance Leases) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 9,292 | $ 9,356 | $ 18,593 | $ 18,780 |
Short-term lease cost | 261 | 389 | 552 | 790 |
Variable lease cost | 1,029 | 588 | 2,037 | 1,155 |
Amortization | 14 | 39 | 30 | 77 |
Interest on lease liabilities | 2 | 4 | 5 | 7 |
Total lease cost | $ 10,598 | $ 10,376 | 21,217 | 20,809 |
Cash paid for amounts included in measurement of lease liabilities: | ||||
Operating cash flows from operating leases | 21,879 | 11,953 | ||
Operating cash flows from finance leases | 5 | 7 | ||
Financing cash flows from finance leases | 28 | 69 | ||
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | 3,432 | 9,076 | ||
Finance leases | $ 0 | $ 60 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating leases: | ||
Operating lease right-of-use assets | $ 138,057 | $ 145,356 |
Current operating lease liability | 26,625 | 27,207 |
Non-current operating lease liability | 144,487 | 154,199 |
Total operating lease liabilities | 171,112 | 181,406 |
Finance leases: | ||
Investments in real estate, net | 70 | 83 |
Property, plant and equipment, at cost | 127 | 127 |
Accumulated amortization | (57) | (44) |
Finance lease net | 70 | 83 |
Current portion of notes payable and long-term debt | 57 | 57 |
Notes payable, long-term debt and other obligations, less current portion | 67 | 96 |
Total finance lease liabilities | $ 124 | $ 153 |
Weighted average remaining lease term: | ||
Operating leases | 7 years 7 months 13 days | 7 years 10 months 13 days |
Finance leases | 2 years 3 months 7 days | 2 years 8 months 15 days |
Weighted average discount rate: | ||
Operating leases | 9.24% | 9.26% |
Finance leases | 7.98% | 7.82% |
Financing lease equipment | ||
Finance leases: | ||
Investments in real estate, net | $ 45 | $ 62 |
Property, plant and equipment, at cost | 748 | 748 |
Accumulated amortization | (703) | (686) |
Finance lease net | $ 45 | $ 62 |
Leases (Maturities of Operating
Leases (Maturities of Operating and Financing Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 21,960 | |
2022 | 38,780 | |
2023 | 34,007 | |
2024 | 28,054 | |
2025 | 22,895 | |
2026 | 19,114 | |
Thereafter | 78,236 | |
Total lease payments | 243,046 | |
Less imputed interest | (71,934) | |
Total | 171,112 | $ 181,406 |
Finance Leases | ||
Remainder of 2021 | 33 | |
2022 | 60 | |
2023 | 35 | |
2024 | 8 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | 136 | |
Less imputed interest | (12) | |
Total | $ 124 | $ 153 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Lease not yet commenced | $ 2,181 |
Operating lease terms | 3 years |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Leaf tobacco | $ 41,693 | $ 42,988 |
Other raw materials | 5,292 | 5,987 |
Work-in-process | 674 | 520 |
Finished goods | 66,233 | 68,781 |
Inventories at current cost | 113,892 | 118,276 |
LIFO adjustments | (20,731) | (20,731) |
Inventory, net | $ 93,161 | $ 97,545 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Inventory [Line Items] | ||
LIFO adjustments | $ 20,731 | $ 20,731 |
Capitalized MSA cost in finished goods inventory | 21,416 | 21,120 |
Inventories | ||
Inventory [Line Items] | ||
Federal excise tax in inventory | 24,695 | 27,683 |
Liggett | Inventories | ||
Inventory [Line Items] | ||
Purchase commitments | 18,772 | |
Leaf tobacco | ||
Inventory [Line Items] | ||
LIFO adjustments | 14,139 | 14,139 |
Other raw materials | ||
Inventory [Line Items] | ||
LIFO adjustments | 474 | 474 |
Work-in-process | ||
Inventory [Line Items] | ||
LIFO adjustments | 26 | 26 |
Finished goods | ||
Inventory [Line Items] | ||
LIFO adjustments | $ 6,092 | $ 6,092 |
Investment Securities (Investme
Investment Securities (Investment Securities at Fair Value Schedule) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities available for sale | $ 108,489 | $ 91,204 |
PropTech convertible trading debt securities | 2,481 | 0 |
Long-term investment securities at fair value | 33,053 | 34,218 |
Total equity securities at fair value | 81,565 | 78,599 |
Total investment securities at fair value | 192,535 | 169,803 |
PropTech convertible trading debt securities | 2,481 | 0 |
Current investment securities at fair value | 157,001 | 135,585 |
Equity-method investments | 19,828 | 18,310 |
Total long-term investments | 55,362 | 52,528 |
Marketable equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities at fair value | 25,187 | 21,155 |
Mutual funds invested in debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities at fair value | $ 23,325 | $ 23,226 |
Investment Securities (Net Gain
Investment Securities (Net Gains (Losses) Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains (losses) recognized on equity securities | $ 8,522 | $ 4,711 | $ 10,930 | $ (7,026) |
Net gains (losses) recognized on debt securities available for sale | 10 | 70 | 65 | (47) |
Impairment expense | (44) | 0 | (58) | (386) |
Net losses recognized on PropTech convertible trading debt securities | (19) | 0 | (19) | 0 |
Net gains (losses) recognized on investment securities | $ 8,469 | $ 4,781 | $ 10,918 | $ (7,459) |
Investment Securities (Componen
Investment Securities (Components of Debt Securities Available for Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 108,489 | $ 91,204 |
Marketable debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 108,217 | 90,621 |
Gross Unrealized Gains | 272 | 583 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 108,489 | $ 91,204 |
Investment Securities (Maturity
Investment Securities (Maturity Dates of Marketable Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 108,489 | $ 91,204 |
Under 1 Year | 71,295 | |
1 Year up to 5 Years | 37,194 | |
More than 5 Years | 0 | |
U.S. Government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 12,512 | |
Under 1 Year | 10,195 | |
1 Year up to 5 Years | 2,317 | |
More than 5 Years | 0 | |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 49,843 | |
Under 1 Year | 31,457 | |
1 Year up to 5 Years | 18,386 | |
More than 5 Years | 0 | |
U.S. mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 15,467 | |
Under 1 Year | 200 | |
1 Year up to 5 Years | 15,267 | |
More than 5 Years | 0 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 29,443 | |
Under 1 Year | 29,443 | |
1 Year up to 5 Years | 0 | |
More than 5 Years | 0 | |
Foreign fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 1,224 | |
Under 1 Year | 0 | |
1 Year up to 5 Years | 1,224 | |
More than 5 Years | $ 0 |
Investment Securities (Gross Re
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains on sales | $ 11 | $ 72 | $ 67 | $ 170 |
Gross realized losses on sales | (1) | (2) | (2) | (217) |
Net gains (losses) recognized on debt securities available for sale | 10 | 70 | 65 | (47) |
Impairment expense | $ (44) | $ 0 | $ (58) | $ (386) |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | Feb. 14, 2020USD ($)shares | Mar. 31, 2020USD ($)$ / sharesshares | Jun. 30, 2021USD ($)venture | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |||||
Convertible notes | $ 2,481,000 | $ 0 | |||
Cash distributions received | $ 53,484,000 | ||||
Proceeds from sale or liquidation of long-term investments | 8,009,000 | 23,407,000 | |||
Equity securities without readily determinable fair value | 6,225,000 | $ 5,200,000 | |||
Impairment and other adjustments | 0 | 0 | |||
NAV | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Unfunded commitments | 1,939,000 | ||||
Cash distributions received | $ 8,009,000 | $ 23,510,000 | |||
Minimum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Equity-method ownership percentage | 6.63% | ||||
Maximum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Equity-method ownership percentage | 37.09% | ||||
PropTech | Affiliated Entity | New Valley Ventures | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Number of investees | venture | 4 | ||||
PropTech | Affiliated Entity | New Valley Ventures | PropTech convertible debt securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Convertible notes | $ 2,500,000 | ||||
LTS | Equity Method Investee | Common Stock | LTS Common Stock | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Proceeds from common shares | $ 53,169,000 | ||||
Common shares of LTS (in shares) | shares | 15,191,205 | ||||
LTS | Equity Method Investee | Redeemable Preferred Stock | LTS Preferred | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Proceeds from common shares | $ 6,009,000 | ||||
Common shares of LTS (in shares) | shares | 240,000 | ||||
Dividend percentage of preferred stock | 8.00% | ||||
Liquidation preference (in dollars per share) | $ / shares | $ 25 |
Investment Securities (Equity S
Investment Securities (Equity Securities at Fair Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains (losses) recognized on equity securities | $ 8,522 | $ 4,711 | $ 10,930 | $ (7,026) |
Less: Net gains (losses) recognized on equity securities sold | 4,054 | 601 | 4,223 | (17) |
Net unrealized gains (losses) recognized on equity securities still held at the reporting date | $ 4,468 | $ 4,110 | $ 6,707 | $ (7,009) |
Investment Securities (Equity-M
Investment Securities (Equity-Method Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity-method investments | $ 19,828 | $ 18,310 |
Mutual fund and hedge funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity-method investments | $ 19,828 | $ 18,310 |
Investment Securities (Equity i
Investment Securities (Equity in Earnings of Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings from investments | $ 941 | $ 2,207 | $ 1,518 | $ 52,359 |
Mutual fund and hedge funds | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings from investments | 941 | 2,207 | 1,518 | (693) |
LTS | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings from investments | $ 0 | $ 0 | $ 0 | $ 53,052 |
New Valley LLC (Investment in R
New Valley LLC (Investment in Real Estate Ventures) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)venture | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)venture | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | $ 76,192 | $ 76,192 | $ 85,400 | ||
Contributions to real estate ventures | 9,902 | $ 3,858 | |||
Distributions from real estate ventures, distributions of earnings | 23,630 | 1,855 | |||
Distributions from investments in real estate ventures | 11,163 | 5,172 | |||
Equity in earnings (losses) from real estate ventures | 16,685 | $ (12,260) | 18,274 | (18,765) | |
Impairment of long-term investments | 2,713 | 16,513 | |||
Identifiable assets | $ 1,496,377 | 1,343,409 | $ 1,496,377 | 1,343,409 | 1,343,409 |
Minimum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 6.63% | 6.63% | |||
Maximum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 37.09% | 37.09% | |||
New Valley | Affiliated Entity | VIE | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | $ 76,192 | $ 76,192 | 85,400 | ||
Contributions to real estate ventures | 9,902 | 3,858 | |||
Distributions from real estate ventures | 34,793 | 7,027 | |||
Equity in earnings (losses) from real estate ventures | $ 16,685 | (12,260) | $ 18,274 | (18,765) | |
Number of real estate ventures | venture | 1 | 1 | |||
Identifiable assets | $ 0 | $ 0 | 0 | ||
Total maximum exposure to loss | 76,192 | 76,192 | |||
Interest costs capitalized | 592 | 1,004 | 1,022 | 2,257 | |
New Valley | Affiliated Entity | VIE | Condominium and Mixed Use Development | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 61,486 | 61,486 | 68,238 | ||
Contributions to real estate ventures | 7,057 | 3,330 | |||
Distributions from real estate ventures | 16,932 | 6,949 | |||
Equity in earnings (losses) from real estate ventures | 6,348 | (11,593) | 4,802 | (17,739) | |
Total maximum exposure to loss | 61,486 | 61,486 | |||
New Valley | Affiliated Entity | VIE | Condominium and Mixed Use Development | New York City SMSA | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 25,233 | 25,233 | 30,465 | ||
Contributions to real estate ventures | 396 | 1,169 | |||
Distributions from real estate ventures | 3,338 | 1,735 | |||
Equity in earnings (losses) from real estate ventures | (967) | (5,104) | (2,472) | (8,451) | |
Total maximum exposure to loss | $ 25,233 | $ 25,233 | |||
New Valley | Affiliated Entity | VIE | Condominium and Mixed Use Development | New York City SMSA | Minimum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 4.20% | 4.20% | |||
New Valley | Affiliated Entity | VIE | Condominium and Mixed Use Development | New York City SMSA | Maximum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 46.70% | 46.70% | |||
New Valley | Affiliated Entity | VIE | Condominium and Mixed Use Development | All other U.S. areas | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | $ 36,253 | $ 36,253 | 37,773 | ||
Contributions to real estate ventures | 6,661 | 2,161 | |||
Distributions from real estate ventures | 13,594 | 5,214 | |||
Equity in earnings (losses) from real estate ventures | 7,315 | (6,489) | 7,274 | (9,288) | |
Total maximum exposure to loss | $ 36,253 | $ 36,253 | |||
New Valley | Affiliated Entity | VIE | Condominium and Mixed Use Development | All other U.S. areas | Minimum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 19.60% | 19.60% | |||
New Valley | Affiliated Entity | VIE | Condominium and Mixed Use Development | All other U.S. areas | Maximum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 77.80% | 77.80% | |||
New Valley | Affiliated Entity | VIE | Apartment Buildings | |||||
Schedule of Investments [Line Items] | |||||
Contributions to real estate ventures | $ 0 | 76 | |||
Distributions from real estate ventures | 17,567 | 0 | |||
Equity in earnings (losses) from real estate ventures | $ 12,959 | (76) | 17,567 | (76) | |
New Valley | Affiliated Entity | VIE | Apartment Buildings | All other U.S. areas | |||||
Schedule of Investments [Line Items] | |||||
Contributions to real estate ventures | 0 | 76 | |||
Distributions from real estate ventures | 17,567 | 0 | |||
Equity in earnings (losses) from real estate ventures | 12,959 | (76) | 17,567 | (76) | |
New Valley | Affiliated Entity | VIE | Hotels | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 3,438 | 3,438 | 4,481 | ||
Contributions to real estate ventures | 1,246 | 0 | |||
Equity in earnings (losses) from real estate ventures | (409) | (632) | (1,377) | (1,200) | |
Total maximum exposure to loss | 3,438 | 3,438 | |||
New Valley | Affiliated Entity | VIE | Hotels | New York City SMSA | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 2,114 | 2,114 | 2,629 | ||
Contributions to real estate ventures | 1,246 | 0 | |||
Equity in earnings (losses) from real estate ventures | (386) | (542) | (848) | (649) | |
Liability for equity losses in excess of joint venture’s carrying value | (333) | (333) | (333) | (333) | |
Impairment of long-term investments | 2,713 | 3,784 | 2,713 | 3,784 | |
Total maximum exposure to loss | $ 2,114 | $ 2,114 | |||
New Valley | Affiliated Entity | VIE | Hotels | New York City SMSA | Minimum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 0.40% | 0.40% | |||
New Valley | Affiliated Entity | VIE | Hotels | New York City SMSA | Maximum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 17.80% | 17.80% | |||
New Valley | Affiliated Entity | VIE | Hotels | International | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 49.00% | 49.00% | |||
Investments in real estate ventures | $ 1,324 | $ 1,324 | 1,852 | ||
Equity in earnings (losses) from real estate ventures | (23) | (90) | (529) | (551) | |
Total maximum exposure to loss | 1,324 | 1,324 | |||
New Valley | Affiliated Entity | VIE | Commercial | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 7,139 | 7,139 | 9,675 | ||
Distributions from real estate ventures | 219 | 55 | |||
Equity in earnings (losses) from real estate ventures | (2,533) | 37 | (2,318) | 212 | |
Total maximum exposure to loss | $ 7,139 | $ 7,139 | |||
New Valley | Affiliated Entity | VIE | Commercial | New York City SMSA | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 49.00% | 49.00% | |||
Investments in real estate ventures | $ 0 | $ 0 | 2,591 | ||
Distributions from real estate ventures | 0 | 3 | |||
Equity in earnings (losses) from real estate ventures | $ (2,713) | 301 | $ (2,591) | 227 | |
New Valley | Affiliated Entity | VIE | Commercial | All other U.S. areas | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 1.60% | 1.60% | |||
Investments in real estate ventures | $ 7,139 | $ 7,139 | 7,084 | ||
Distributions from real estate ventures | 219 | 52 | |||
Equity in earnings (losses) from real estate ventures | 180 | (264) | 273 | (15) | |
Total maximum exposure to loss | 7,139 | 7,139 | |||
New Valley | Affiliated Entity | VIE | Other | |||||
Schedule of Investments [Line Items] | |||||
Investments in real estate ventures | 4,129 | 4,129 | $ 3,006 | ||
Contributions to real estate ventures | 1,599 | 452 | |||
Distributions from real estate ventures | 75 | 23 | |||
Equity in earnings (losses) from real estate ventures | 320 | $ 4 | (400) | 38 | |
Total maximum exposure to loss | $ 4,129 | $ 4,129 | |||
New Valley | Affiliated Entity | VIE | Other | Minimum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 15.00% | 15.00% | |||
New Valley | Affiliated Entity | VIE | Other | Maximum | |||||
Schedule of Investments [Line Items] | |||||
Range of ownership | 50.00% | 50.00% | |||
Douglas Elliman Realty, LLC | |||||
Schedule of Investments [Line Items] | |||||
Proceeds from commissions received | $ 6,585 | $ 7,698 |
New Valley LLC (Income Statemen
New Valley LLC (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Cost of goods sold | $ 500,410 | $ 304,885 | $ 863,952 | $ 615,508 |
Other expenses | (5,578) | (7,635) | (8,332) | 3,020 |
New Valley | Affiliated Entity | VIE | Unconsolidated Properties | Condominium and Mixed Use Development | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,991 | 1,830 | 15,278 | 33,409 |
Cost of goods sold | 0 | 0 | 0 | 22,100 |
Other expenses | 16,997 | 14,013 | 42,340 | 31,926 |
Loss from continuing operations | $ (12,006) | $ (12,183) | $ (27,062) | $ (20,617) |
New Valley LLC (Investments in
New Valley LLC (Investments in Real Estate, net) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | $ 9,608 | $ 9,608 | $ 15,631 | |||
New Valley | VIE | Affiliated Entity | ||||||
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | 9,608 | 9,608 | 15,631 | |||
New Valley | VIE | Affiliated Entity | Escena | ||||||
Schedule of Investments [Line Items] | ||||||
Land and land improvements | 8,911 | 8,911 | 8,911 | |||
Building and building improvements | 1,926 | 1,926 | 1,926 | |||
Other | 1,655 | 1,655 | 1,672 | |||
Investments in real estate, gross | 12,492 | 12,492 | 12,509 | |||
Less accumulated depreciation | (2,884) | (2,884) | (2,774) | |||
Real estate investment, net | 9,608 | 9,608 | 9,735 | |||
Operating income (losses) | (90) | $ (629) | 280 | $ (272) | ||
New Valley | VIE | Affiliated Entity | Townhome A | ||||||
Schedule of Investments [Line Items] | ||||||
Real estate investment, net | $ 0 | $ 0 | $ 5,896 | |||
Sale of unit | $ 6,750 |
Notes Payable, Long-Term Debt_3
Notes Payable, Long-Term Debt and Other Obligations (Components of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 01, 2021 | Jan. 28, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 1,446,025 | $ 1,427,533 | ||
Less: Debt issuance costs | (30,640) | (21,247) | ||
Total notes payable, long-term debt and other obligations | 1,415,385 | 1,406,286 | ||
Less: Current maturities | (12,558) | (12,557) | ||
Amount due after one year | 1,402,827 | 1,393,729 | ||
Senior Notes | 5.75% Senior Secured Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 875,000 | 0 | ||
Interest rate | 5.75% | 5.75% | ||
Senior Notes | 6.125% Senior Secured Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 0 | 850,000 | ||
Less: Debt issuance costs | $ (8,348) | |||
Interest rate | 6.125% | 6.125% | ||
Senior Notes | 10.5% Senior Notes due 2026, net of unamortized discount of $2,849 and $3,040 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 10.50% | |||
Variable Interest Senior Convertible Debt | 10.5% Senior Notes due 2026, net of unamortized discount of $2,849 and $3,040 | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 552,151 | 551,960 | ||
Interest rate | 10.50% | |||
Unamortized discount | $ 2,849 | 3,040 | ||
Equipment loans | Liggett | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | 77 | 89 | ||
Other | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 18,797 | $ 25,484 |
Notes Payable, Long-Term Debt_4
Notes Payable, Long-Term Debt and Other Obligations (Senior Notes, Revolving Credit Facility, and Other) (Details) - USD ($) | Feb. 01, 2021 | Jan. 28, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 22, 2021 | Mar. 21, 2021 | Dec. 31, 2020 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ (21,362,000) | $ 0 | ||||||
Other costs and non-cash interest expense | $ 30,640,000 | $ 30,640,000 | $ 21,247,000 | |||||||
Douglas Elliman | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Voting interest acquired | 29.41% | |||||||||
Senior Notes | 5.75% Senior Secured Notes due 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.75% | 5.75% | 5.75% | |||||||
Debt issued | $ 875,000,000 | |||||||||
Net proceeds from issuance of debt | $ 855,500,000 | |||||||||
Senior Notes | 6.125% Senior Secured Notes due 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.125% | 6.125% | 6.125% | |||||||
Loss on extinguishment of debt | $ 21,362,000 | $ 0 | $ 0 | $ (8,349,000) | $ 0 | |||||
Premium | 13,014,000 | |||||||||
Other costs and non-cash interest expense | $ 8,348,000 | |||||||||
Senior Notes | 10.5% Senior Notes due 2026, net of unamortized discount of $2,849 and $3,040 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 10.50% | 10.50% | ||||||||
Revolving credit facility | Liggett | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current borrowing capacity | $ 84,600,000 | $ 84,600,000 | $ 90,000,000 | $ 60,000,000 | ||||||
Amount outstanding | 0 | 0 | ||||||||
Other Notes Payable | Douglas Elliman notes payable to sellers | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issued | 18,750,000 | 18,750,000 | ||||||||
Principal repaid in year to date | 11,250,000 | |||||||||
Due to be repaid in 2021 | 6,250,000 | 6,250,000 | ||||||||
Due to be repaid in 2022 | $ 12,500,000 | $ 12,500,000 |
Notes Payable, Long-Term Debt_5
Notes Payable, Long-Term Debt and Other Obligations (Non-Cash Interest Expense) (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||||
Amortization of debt discount, net | $ 97 | $ 847 | $ 191 | $ 5,447 | |
Amortization of debt issuance costs | 942 | 889 | 1,835 | 2,047 | |
Loss on extinguishment of debt | 0 | 0 | 21,362 | 0 | |
Non-cash interest expense | $ 1,039 | 1,736 | $ 10,375 | 7,494 | |
6.125% Senior Secured Notes due 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.125% | 6.125% | 6.125% | ||
Loss on extinguishment of debt | $ (21,362) | $ 0 | $ 0 | $ 8,349 | $ 0 |
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, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 1,446,025 | $ 1,427,533 |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,501,860 | 1,489,789 |
Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,427,151 | 1,401,960 |
Senior Notes | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 1,482,980 | 1,464,208 |
Liggett and other | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | 18,874 | 25,573 |
Liggett and other | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and long-term debt | $ 18,880 | $ 25,581 |
Contingencies (Overview and Bon
Contingencies (Overview and Bonds) (Details) - Liggett - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2009 | |
Loss Contingencies [Line Items] | |||
Tobacco product liability legal expenses and costs | $ 3,067,000 | $ 3,191,000 | |
Engle Progeny Cases | Florida | |||
Loss Contingencies [Line Items] | |||
Maximum bond required for judgments on appeal | $ 200,000,000 | ||
Maximum bond for appeal | $ 5,000,000 | ||
Bonds | |||
Loss Contingencies [Line Items] | |||
Security posted for appeal of judgment | $ 0 |
Contingencies (Individual Actio
Contingencies (Individual Actions) (Details) - Liggett | Jun. 30, 2021case |
Loss Contingencies [Line Items] | |
Cases pending | 4 |
Individual Actions Cases | |
Loss Contingencies [Line Items] | |
Cases pending | 74 |
Individual Actions Cases | Florida | |
Loss Contingencies [Line Items] | |
Cases pending | 45 |
Individual Actions Cases | Illinois | |
Loss Contingencies [Line Items] | |
Cases pending | 14 |
Individual Actions Cases | Nevada | |
Loss Contingencies [Line Items] | |
Cases pending | 7 |
Individual Actions Cases | New Mexico | |
Loss Contingencies [Line Items] | |
Cases pending | 5 |
Individual Actions Cases | Louisiana | |
Loss Contingencies [Line Items] | |
Cases pending | 2 |
Individual Actions Cases | Hawaii | |
Loss Contingencies [Line Items] | |
Cases pending | 1 |
Contingencies (Cautionary State
Contingencies (Cautionary Statement About Engle Progeny Cases) (Details) - Engle Progeny Cases $ in Thousands | Nov. 21, 1996USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2013USD ($) | Jun. 30, 2021case |
Loss Contingencies [Line Items] | ||||
Amount of litigation settlement awarded to other party | $ | $ 145,000,000 | |||
Liggett | ||||
Loss Contingencies [Line Items] | ||||
Amount of litigation settlement awarded to other party | $ | $ 790,000 | $ 23,150 | $ 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 |
Contingencies (Engle Progeny Ca
Contingencies (Engle Progeny Cases and Settlements) (Details) | Nov. 21, 1996USD ($) | Dec. 31, 2016USD ($)case | Feb. 28, 2015 | Oct. 31, 2013USD ($)case | Jun. 30, 2020USD ($)case | Jun. 30, 2021case |
Engle Progeny Cases | ||||||
Loss Contingencies [Line Items] | ||||||
Amount of litigation settlement awarded to other party | $ 145,000,000,000 | |||||
Liggett | ||||||
Loss Contingencies [Line Items] | ||||||
Payments for legal settlements | $ 8,100,000 | |||||
Cases pending | case | 4 | |||||
Liggett | Engle Progeny Cases | ||||||
Loss Contingencies [Line Items] | ||||||
Cases settled | case | 152 | 4,900 | 203 | |||
Amount of litigation settlement awarded to other party | $ 790,000,000 | $ 23,150,000 | $ 110,000,000 | |||
Litigation settlement amount paid in lump sum | 61,600,000 | |||||
Litigation settlement, installment term | 14 years | |||||
Litigation settlement amount of estimated future payments per annum | $ 3,400,000 | |||||
Liggett and Vector Tobacco | Engle Progeny Cases | ||||||
Loss Contingencies [Line Items] | ||||||
Cases pending | case | 38 |
Contingencies (Judgments Paid i
Contingencies (Judgments Paid in Engle Progeny Cases, Maryland Cases and Liggett Only Cases ) (Details) - Liggett $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)case | Jun. 30, 2020USD ($) | |
Loss Contingencies [Line Items] | ||
Payments for legal settlements | $ | $ 8,100 | |
Cases pending | 4 | |
Lukacs, Campbell, Douglas, Clay, Tullo, Ward, Rizzuto, Lambert, Buchanan, and Santoro | ||
Loss Contingencies [Line Items] | ||
Payments for legal settlements | $ | $ 40,111 | |
Individual Actions Cases | ||
Loss Contingencies [Line Items] | ||
Cases pending | 74 | |
Individual Actions Cases | Maryland | ||
Loss Contingencies [Line Items] | ||
Cases pending | 16 |
Contingencies (Class Actions an
Contingencies (Class Actions and Health Care Cost Recovery Actions) (Details) | Jun. 30, 2021casedefendant |
Parsons v. AC & S Inc. | |
Loss Contingencies [Line Items] | |
Number of defendants in bankruptcy | defendant | 3 |
Liggett | |
Loss Contingencies [Line Items] | |
Cases pending | 4 |
Liggett | Class Actions | |
Loss Contingencies [Line Items] | |
Cases pending | 2 |
Liggett | Crow Creek Sioux Tribe v. American Tobacco Company | |
Loss Contingencies [Line Items] | |
Cases pending | 1 |
Contingencies (MSA and Other St
Contingencies (MSA and Other State Settlement Agreements) (Details) | Dec. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 1998USD ($)sponsorshipstate | Apr. 30, 2021USD ($) |
Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Number of states with settled litigation | state | 46 | ||||
Number of brand name sponsorships allowed | sponsorship | 1 | ||||
Brand name sponsorship period | 12 months | ||||
Annual payment requirement | $ 9,000,000,000 | ||||
Liggett | |||||
Loss Contingencies [Line Items] | |||||
Number of states with settled litigation | state | 45 | ||||
Payments for legal settlements | $ 8,100,000 | ||||
Liggett | Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 0 | ||||
Percentage of cigarettes sales exceeds market share exemption | 1.65% | ||||
Vector Tobacco | Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 0 | ||||
Percentage of cigarettes sales exceeds market share exemption | 0.28% | ||||
Liggett and Vector Tobacco | |||||
Loss Contingencies [Line Items] | |||||
Percentage of total domestic shipments | 4.10% | ||||
Liggett and Vector Tobacco | Health Care Cost Recovery Actions | |||||
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 178,000,000 | ||||
Payments for legal settlements | $ 143,000,000 |
Contingencies (Certain MSA Disp
Contingencies (Certain MSA Disputes) (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 96 Months Ended |
Jun. 30, 2010state | Jun. 30, 2021USD ($)state | Dec. 31, 2020USD ($) | |
Health Care Cost Recovery Actions, NPM Adjustment | Liggett and Vector Tobacco | Cost of Sales | |||
Loss Contingencies [Line Items] | |||
Settlement adjustment credit | $ | $ 3,935 | $ 54,382 | |
2003 NPM Adjustment | |||
Loss Contingencies [Line Items] | |||
Number of states agreed to single arbitration | state | 48 | ||
Aggregate number of settling states | state | 49 | ||
Number of settling states with diligence not contested | state | 37 | ||
Combined allocable share, percentage | 75.00% | ||
2004-2010 NPM Adjustment | Liggett and Vector Tobacco | |||
Loss Contingencies [Line Items] | |||
Amounts accrued | $ | $ 13,200 | ||
2011-2015 NPM Adjustment | Liggett | |||
Loss Contingencies [Line Items] | |||
Amounts accrued | $ | $ 49,800 |
Contingencies (Other State Sett
Contingencies (Other State Settlements) (Details) - Health Care Cost Recovery Actions | 1 Months Ended | 12 Months Ended | 25 Months Ended | |||
Jun. 30, 2021USD ($) | Apr. 30, 2021USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2003USD ($) | Mar. 31, 1998USD ($)state | |
Loss Contingencies [Line Items] | ||||||
Annual payment requirement | $ 9,000,000,000 | |||||
Liggett | ||||||
Loss Contingencies [Line Items] | ||||||
Number of states not included in settlement agreement | state | 4 | |||||
Liggett | Minnesota | ||||||
Loss Contingencies [Line Items] | ||||||
Annual payment requirement | $ 100,000 | |||||
Liggett | Florida | ||||||
Loss Contingencies [Line Items] | ||||||
Annual payment requirement | $ 250,000 | |||||
Amount of litigation settlement awarded to other party | $ 1,200,000 | |||||
Years annual payments required | 21 years | |||||
Years annual payments required that are subject to inflation adjustment | 12 years | |||||
Liggett | Mississippi | ||||||
Loss Contingencies [Line Items] | ||||||
Damages sought | $ 16,700,000 | $ 27,000,000 | ||||
Damages awarded | $ 18,600,000 |
Contingencies (Activity in Accr
Contingencies (Activity in Accruals for MSA and Tobacco Litigation Schedule) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Current Liabilities | ||
Current liabilities, beginning balance | $ 42,734 | $ 38,365 |
Expenses | 80,927 | 96,243 |
Change in MSA obligations capitalized as inventory | 296 | (137) |
Payments | (39,271) | (31,538) |
Reclassification to/(from) non-current liabilities | 8,060 | 2,397 |
Interest on withholding | 288 | 238 |
Current liabilities, ending balance | 93,034 | 105,568 |
Non-Current Liabilities | ||
Noncurrent liabilities, beginning balance | 37,201 | 37,869 |
Expenses | 0 | 0 |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | 0 | 0 |
Reclassification to/(from) non-current liabilities | (8,060) | (2,397) |
Interest on withholding | 851 | 932 |
Noncurrent liabilities, ending balance | 29,992 | 36,404 |
Payments due under Master Settlement Agreement | ||
Current Liabilities | ||
Current liabilities, beginning balance | 38,767 | 34,116 |
Expenses | 80,922 | 96,215 |
Change in MSA obligations capitalized as inventory | 296 | (137) |
Payments | (35,206) | (27,214) |
Reclassification to/(from) non-current liabilities | 4,709 | (855) |
Interest on withholding | 0 | 0 |
Current liabilities, ending balance | 89,488 | 102,125 |
Non-Current Liabilities | ||
Noncurrent liabilities, beginning balance | 17,933 | 17,275 |
Expenses | 0 | 0 |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | 0 | 0 |
Reclassification to/(from) non-current liabilities | (4,709) | 855 |
Interest on withholding | 0 | 0 |
Noncurrent liabilities, ending balance | 13,224 | 18,130 |
Litigation Accruals | ||
Current Liabilities | ||
Current liabilities, beginning balance | 3,967 | 4,249 |
Expenses | 5 | 28 |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | (4,065) | (4,324) |
Reclassification to/(from) non-current liabilities | 3,351 | 3,252 |
Interest on withholding | 288 | 238 |
Current liabilities, ending balance | 3,546 | 3,443 |
Non-Current Liabilities | ||
Noncurrent liabilities, beginning balance | 19,268 | 20,594 |
Expenses | 0 | 0 |
Change in MSA obligations capitalized as inventory | 0 | 0 |
Payments | 0 | 0 |
Reclassification to/(from) non-current liabilities | (3,351) | (3,252) |
Interest on withholding | 851 | 932 |
Noncurrent liabilities, ending balance | $ 16,768 | $ 18,274 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Components of Goodwill and Other Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets [Roll Forward] | |||||
Goodwill, beginning balance | $ 78,008 | $ 31,756 | $ 78,008 | ||
Impairment Losses | (46,252) | 0 | (46,252) | ||
Goodwill, ending balance | $ 31,756 | $ 31,756 | 31,756 | 31,756 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Intangibles with a finite life, net, beginning balance | 474 | 310 | 474 | ||
Impairment Losses | 0 | 0 | |||
Amortization | (80) | (82) | |||
Intangibles with a finite life, net, ending balance | 230 | 392 | 230 | 392 | |
Goodwill and Intangible Assets [Roll Forward] | |||||
Goodwill and other intangible assets, net, beginning balance | 265,993 | 207,577 | 265,993 | ||
Impairments of goodwill and intangible assets | 0 | 0 | 0 | (58,252) | |
Amortization | (80) | (82) | |||
Goodwill and other intangible assets, net, ending balance | 207,497 | 207,659 | 207,497 | 207,659 | |
Intangible asset associated with benefit under the MSA | |||||
Indefinite-lived Intangible Assets [Roll Forward] | |||||
Indefinite life intangibles, beginning balance | 107,511 | 107,511 | 107,511 | ||
Impairment Losses | 0 | 0 | |||
Indefinite life intangibles, ending balance | 107,511 | 107,511 | 107,511 | 107,511 | |
Trademark - Douglas Elliman | |||||
Indefinite-lived Intangible Assets [Roll Forward] | |||||
Indefinite life intangibles, beginning balance | 80,000 | 68,000 | 80,000 | ||
Impairment Losses | $ (12,000) | (12,000) | |||
Indefinite life intangibles, ending balance | $ 68,000 | $ 68,000 | $ 68,000 | $ 68,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment charge | $ 46,252 | $ 0 | $ 46,252 |
Trademark - Douglas Elliman | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment | $ 12,000 | $ 12,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before provision for income taxes | $ 132,165 | $ 36,690 | $ 177,175 | $ 32,481 |
Income tax expense using estimated annual effective income tax rate | 38,725 | 10,896 | 51,913 | 9,647 |
Changes in effective tax rates | 135 | (12) | 0 | 0 |
Impact of discrete items, net | 0 | 32 | 0 | 291 |
Income tax expense | $ 38,860 | $ 10,916 | $ 51,913 | $ 9,938 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements (Fair Value Measurements) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Debt securities available for sale | $ 108,489 | $ 91,204 |
Property technology (“PropTech”) convertible trading debt securities | 2,481 | 0 |
Current investment securities at fair value | 157,001 | 135,585 |
Long-term investment securities at fair value | 33,053 | 34,218 |
Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 25,187 | 21,155 |
Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 23,325 | 23,226 |
U.S. Government securities | ||
Assets: | ||
Debt securities available for sale | 12,512 | |
Corporate securities | ||
Assets: | ||
Debt securities available for sale | 49,843 | |
U.S. mortgage-backed securities | ||
Assets: | ||
Debt securities available for sale | 15,467 | |
Foreign fixed-income securities | ||
Assets: | ||
Debt securities available for sale | 1,224 | |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Fair value of contingent liability | 999 | |
Recurring | ||
Assets: | ||
Current investment securities at fair value | 159,482 | 135,585 |
Long-term investment securities at fair value | 33,053 | 34,218 |
Total | 527,585 | 472,140 |
Liabilities: | ||
Fair value of contingent liability | 4,522 | 999 |
Total | 4,522 | 999 |
Recurring | Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 25,187 | 21,155 |
Recurring | Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 23,325 | 23,226 |
Recurring | Total equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 48,512 | 44,381 |
Recurring | U.S. Government securities | ||
Assets: | ||
Debt securities available for sale | 12,512 | 19,200 |
Recurring | Corporate securities | ||
Assets: | ||
Debt securities available for sale | 49,843 | 52,434 |
Recurring | U.S. mortgage-backed securities | ||
Assets: | ||
Debt securities available for sale | 15,467 | 10,484 |
Recurring | Commercial paper | ||
Assets: | ||
Debt securities available for sale | 29,443 | 9,086 |
Recurring | Foreign fixed-income securities | ||
Assets: | ||
Debt securities available for sale | 1,224 | |
Recurring | Total debt securities available for sale | ||
Assets: | ||
Debt securities available for sale | 108,489 | 91,204 |
Recurring | PropTech convertible debt securities | ||
Assets: | ||
Property technology (“PropTech”) convertible trading debt securities | 2,481 | |
Recurring | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 310,300 | 255,294 |
Recurring | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 24,071 | 44,397 |
Recurring | Commercial paper | Current Restricted Assets | ||
Assets: | ||
Cash and cash equivalents | 11,364 | 10,374 |
Recurring | Commercial paper | Restricted Assets | ||
Assets: | ||
Cash and cash equivalents | 1,907 | 1,907 |
Recurring | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 679 | 2,111 |
Recurring | Money market funds securing legal bonds | ||
Assets: | ||
Cash and cash equivalents | 535 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Current investment securities at fair value | 48,512 | 44,381 |
Long-term investment securities at fair value | 0 | 0 |
Total | 358,812 | 300,210 |
Liabilities: | ||
Fair value of contingent liability | 0 | 0 |
Total | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Assets: | ||
Total equity securities at fair value | 25,187 | 21,155 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds invested in debt securities | ||
Assets: | ||
Total equity securities at fair value | 23,325 | 23,226 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 48,512 | 44,381 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. mortgage-backed securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign fixed-income securities | ||
Assets: | ||
Debt securities available for sale | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total debt securities available for sale | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | PropTech convertible debt securities | ||
Assets: | ||
Property technology (“PropTech”) convertible trading debt securities | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 310,300 | 255,294 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds securing legal bonds | ||
Assets: | ||
Cash and cash equivalents | 535 | |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Current investment securities at fair value | 108,489 | 91,204 |
Long-term investment securities at fair value | 0 | 0 |
Total | 133,239 | 137,712 |
Liabilities: | ||
Fair value of contingent liability | 0 | 0 |
Total | 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 equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government securities | ||
Assets: | ||
Debt securities available for sale | 12,512 | 19,200 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets: | ||
Debt securities available for sale | 49,843 | 52,434 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. mortgage-backed securities | ||
Assets: | ||
Debt securities available for sale | 15,467 | 10,484 |
Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Debt securities available for sale | 29,443 | 9,086 |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign fixed-income securities | ||
Assets: | ||
Debt securities available for sale | 1,224 | |
Recurring | Significant Other Observable Inputs (Level 2) | Total debt securities available for sale | ||
Assets: | ||
Debt securities available for sale | 108,489 | 91,204 |
Recurring | Significant Other Observable Inputs (Level 2) | PropTech convertible debt securities | ||
Assets: | ||
Property technology (“PropTech”) convertible trading debt securities | 0 | |
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 | 24,071 | 44,397 |
Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 679 | 2,111 |
Recurring | Significant Other Observable Inputs (Level 2) | Money market funds securing legal bonds | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Current investment securities at fair value | 2,481 | 0 |
Long-term investment securities at fair value | 0 | 0 |
Total | 2,481 | 0 |
Liabilities: | ||
Fair value of contingent liability | 4,522 | 999 |
Total | 4,522 | 999 |
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 equity securities at fair value | ||
Assets: | ||
Total equity securities at fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. mortgage-backed securities | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Foreign fixed-income securities | ||
Assets: | ||
Debt securities available for sale | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Total debt securities available for sale | ||
Assets: | ||
Debt securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | PropTech convertible debt securities | ||
Assets: | ||
Property technology (“PropTech”) convertible trading debt securities | 2,481 | |
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 |
Recurring | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | $ 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Money market funds securing legal bonds | ||
Assets: | ||
Cash and cash equivalents | $ 0 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements (Quantitative Information about Level 3 Fair Value Measurements) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | $ 2,481,000 | $ 0 |
Nonrecurring nonfinancial assets subject to fair value measurements | 0 | 0 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value of contingent liability | 4,522,000 | 999,000 |
Recurring | PropTech convertible debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | 2,481,000 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value of contingent liability | 999,000 | |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value of contingent liability | 4,522,000 | 999,000 |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | 2,481,000 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Recurring | PropTech convertible debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | $ 2,481,000 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Risk-free rate for a 2-year term | Recurring | PropTech convertible debt securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.03 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Risk-free rate for a 2-year term | Recurring | PropTech convertible debt securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.05 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Measurement Input, Discount Rate | Recurring | PropTech convertible debt securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.2375 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Measurement Input, Discount Rate | Recurring | PropTech convertible debt securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.4333 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Volatility | Recurring | PropTech convertible debt securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.436 | |
Significant Unobservable Inputs (Level 3) | Discounted cash flow | Volatility | Recurring | PropTech convertible debt securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 1.116 | |
Significant Unobservable Inputs (Level 3) | Monte Carlo simulation model | Estimated fair value of the Douglas Elliman reporting unit | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Estimated fair value of the Douglas Elliman reporting unit | $ 825,946,000 | $ 169,000,000 |
Significant Unobservable Inputs (Level 3) | Monte Carlo simulation model | Risk-free rate for a 2-year term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value of contingent liability, measurement input term | 1 year 6 months | 2 years |
Fair value of contingent liability, measurement input | 0.0016 | 0.0013 |
Significant Unobservable Inputs (Level 3) | Monte Carlo simulation model | Leverage-adjusted equity volatility of peer firms | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value of contingent liability, measurement input | 0.4821 | 0.7857 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements (Nonrecurring Measurements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures impairment charge | $ 2,713 | $ 16,513 |
Investments in real estate ventures, fair value | 76,192 | 85,400 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in real estate ventures, fair value | 0 | 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 | 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 | 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 | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 729,529,000 | $ 445,760,000 | $ 1,273,293,000 | $ 900,248,000 | |
Operating income (loss) | 137,076,000 | 66,797,000 | 227,279,000 | 61,893,000 | |
Equity in earnings (losses) from real estate ventures | 16,685,000 | (12,260,000) | 18,274,000 | (18,765,000) | |
Identifiable assets | 1,496,377,000 | 1,343,409,000 | 1,496,377,000 | 1,343,409,000 | $ 1,343,409,000 |
Depreciation and amortization | 4,089,000 | 4,412,000 | 8,268,000 | 8,987,000 | |
Capital expenditures | 3,055,000 | 6,242,000 | |||
Litigation settlement and judgment expense | 0 | 53,000 | 5,000 | 53,000 | |
Restructuring charges | 0 | 2,961,000 | 0 | 2,961,000 | |
Impairments of goodwill and intangible assets | 0 | 0 | 0 | 58,252,000 | |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating income (loss) | (8,465,000) | (5,637,000) | (15,121,000) | (12,252,000) | |
Equity in earnings (losses) from real estate ventures | 0 | 0 | 0 | 0 | |
Identifiable assets | 468,900,000 | 428,386,000 | 468,900,000 | 428,386,000 | |
Depreciation and amortization | 234,000 | 214,000 | 465,000 | 434,000 | |
Capital expenditures | 417,000 | 20,000 | |||
Tobacco | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 597,959,000 | ||||
Tobacco | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 329,496,000 | 312,510,000 | 599,579,000 | ||
Operating income (loss) | 103,179,000 | 79,309,000 | 184,778,000 | 148,495,000 | |
Equity in earnings (losses) from real estate ventures | 0 | 0 | 0 | 0 | |
Identifiable assets | 406,978,000 | 357,518,000 | 406,978,000 | 357,518,000 | |
Depreciation and amortization | 1,697,000 | 2,000,000 | 3,457,000 | 4,042,000 | |
Capital expenditures | 1,375,000 | 2,973,000 | |||
Litigation settlement and judgment expense | 53,000 | 5,000 | 53,000 | ||
Tobacco | Operating Segments | MSA settlement | |||||
Segment Reporting Information [Line Items] | |||||
Litigation settlement received | (2,722,000) | ||||
Real estate | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 400,033,000 | 133,250,000 | 675,334,000 | 300,669,000 | |
Operating income (loss) | 42,362,000 | (6,875,000) | 57,622,000 | (74,350,000) | |
Equity in earnings (losses) from real estate ventures | 16,685,000 | (12,260,000) | 18,274,000 | (18,765,000) | |
Identifiable assets | 620,499,000 | 557,505,000 | 620,499,000 | 557,505,000 | |
Depreciation and amortization | $ 2,158,000 | 2,198,000 | 4,346,000 | 4,511,000 | |
Capital expenditures | $ 1,263,000 | 3,249,000 | |||
Restructuring charges | $ 2,961,000 | 2,961,000 | |||
Impairments of goodwill and intangible assets | $ 58,252,000 |