Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - VECTOR GROUP LTD | a2020q3ex991.htm |
| EX-32.2 - EX-32.2 - VECTOR GROUP LTD | a2020q3ex322.htm |
| EX-32.1 - EX-32.1 - VECTOR GROUP LTD | a2020q3ex321.htm |
| EX-31.2 - EX-31.2 - VECTOR GROUP LTD | a2020q3ex312.htm |
| EX-31.1 - EX-31.1 - VECTOR GROUP LTD | a2020q3ex311.htm |
| EX-22 - EX-22 - VECTOR GROUP LTD | q320ex22.htm |
| 10-Q - 10-Q - VECTOR GROUP LTD | vgr-20200930.htm |
EXHIBIT 99.2
Vector Group Ltd.
Condensed Consolidating Financial Statements
September 30, 2020
(in thousands of dollars)
Presented herein are Condensed Consolidating Balance Sheet as of September 30, 2020 and the related Condensed Consolidating Statements of Operations for the nine months ended September 30, 2020 of Vector Group Ltd. (Parent/Issuer), the guarantor subsidiaries (Subsidiary Guarantors) and the subsidiaries that are not guarantors (Subsidiary Non-Guarantors).
CONDENSED CONSOLIDATING BALANCE SHEETS
| September 30, 2020 | |||||||||||||||||||||||||||||
| Subsidiary | Consolidated | ||||||||||||||||||||||||||||
| Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||||||||||||
| Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||||||||||||
| ASSETS: | |||||||||||||||||||||||||||||
| Current assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 227,195 | $ | 147,725 | $ | 76,151 | $ | — | $ | 451,071 | |||||||||||||||||||
| Investment securities at fair value | 124,092 | — | — | — | 124,092 | ||||||||||||||||||||||||
| Accounts receivable - trade, net | — | 19,776 | 24,223 | — | 43,999 | ||||||||||||||||||||||||
| Intercompany receivables | 47,450 | — | — | (47,450) | — | ||||||||||||||||||||||||
| Inventories | — | 94,548 | — | — | 94,548 | ||||||||||||||||||||||||
| Income taxes receivable, net | — | — | 24,520 | (24,520) | — | ||||||||||||||||||||||||
| Other current assets | 3,487 | 8,792 | 26,909 | (475) | 38,713 | ||||||||||||||||||||||||
| Total current assets | 402,224 | 270,841 | 151,803 | (72,445) | 752,423 | ||||||||||||||||||||||||
| Property, plant and equipment, net | 400 | 30,668 | 44,999 | — | 76,067 | ||||||||||||||||||||||||
| Investments in real estate, net | — | — | 9,786 | — | 9,786 | ||||||||||||||||||||||||
| Long-term investment securities at fair value | 31,619 | — | — | — | 31,619 | ||||||||||||||||||||||||
| Investments in real estate ventures | — | — | 102,458 | — | 102,458 | ||||||||||||||||||||||||
| Operating lease right-of-use assets | 6,235 | 6,346 | 135,378 | — | 147,959 | ||||||||||||||||||||||||
| Investments in consolidated subsidiaries | 346,734 | 175,796 | — | (522,530) | — | ||||||||||||||||||||||||
| Goodwill and other intangible assets, net | — | 107,511 | 100,107 | — | 207,618 | ||||||||||||||||||||||||
| Other assets | 31,593 | 47,473 | 35,982 | — | 115,048 | ||||||||||||||||||||||||
| Total assets | $ | 818,805 | $ | 638,635 | $ | 580,513 | $ | (594,975) | $ | 1,442,978 | |||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIENCY: | |||||||||||||||||||||||||||||
| Current liabilities: | |||||||||||||||||||||||||||||
| Current portion of notes payable and long-term debt | $ | — | $ | 10,649 | $ | 10,660 | $ | (10,625) | $ | 10,684 | |||||||||||||||||||
| Intercompany payables | — | 313 | 47,137 | (47,450) | — | ||||||||||||||||||||||||
| Income taxes payable, net | 13,781 | 29,852 | — | (24,520) | 19,113 | ||||||||||||||||||||||||
| Current payments due under the Master Settlement Agreement | — | 145,472 | — | — | 145,472 | ||||||||||||||||||||||||
| Current operating lease liability | 1,242 | 1,878 | 19,365 | — | 22,485 | ||||||||||||||||||||||||
| Other current liabilities | 44,279 | 81,881 | 68,069 | (201) | 194,028 | ||||||||||||||||||||||||
| Total current liabilities | 59,302 | 270,045 | 145,231 | (82,796) | 391,782 | ||||||||||||||||||||||||
| Notes payable, long-term debt and other obligations, less current portion | 1,379,781 | 15,695 | 16,113 | (15,625) | 1,395,964 | ||||||||||||||||||||||||
| Non-current employee benefits | 51,996 | 9,345 | — | — | 61,341 | ||||||||||||||||||||||||
| Deferred income taxes, net | (16,931) | 22,260 | 23,180 | — | 28,509 | ||||||||||||||||||||||||
| Non-current operating lease liability | 6,383 | 5,022 | 147,795 | — | 159,200 | ||||||||||||||||||||||||
| Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement | 393 | 37,962 | 31,010 | (1,064) | 68,301 | ||||||||||||||||||||||||
| Total liabilities | 1,480,924 | 360,329 | 363,329 | (99,485) | 2,105,097 | ||||||||||||||||||||||||
| Commitments and contingencies | |||||||||||||||||||||||||||||
| Stockholders' (deficiency) equity attributed to Vector Group Ltd. | (662,119) | 278,306 | 217,184 | (495,490) | (662,119) | ||||||||||||||||||||||||
| Non-controlling interest | — | — | — | — | — | ||||||||||||||||||||||||
| Total stockholders' (deficiency) equity | (662,119) | 278,306 | 217,184 | (495,490) | (662,119) | ||||||||||||||||||||||||
| Total liabilities and stockholders' deficiency | $ | 818,805 | $ | 638,635 | $ | 580,513 | $ | (594,975) | $ | 1,442,978 | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
| Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
| Subsidiary | Consolidated | ||||||||||||||||||||||||||||
| Parent/ | Subsidiary | Non- | Consolidating | Vector Group | |||||||||||||||||||||||||
| Issuer | Guarantors | Guarantors | Adjustments | Ltd. | |||||||||||||||||||||||||
| Revenues | $ | — | $ | 918,787 | $ | 529,650 | $ | (358) | $ | 1,448,079 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||
| Cost of sales | — | 615,458 | 374,625 | — | 990,083 | ||||||||||||||||||||||||
| Operating, selling, administrative and general expenses | 26,682 | 55,135 | 157,141 | (358) | 238,600 | ||||||||||||||||||||||||
| Litigation settlement and judgment expense | — | 53 | — | — | 53 | ||||||||||||||||||||||||
| Impairments of goodwill and intangible assets | — | — | 58,252 | — | 58,252 | ||||||||||||||||||||||||
| Management fee expense | — | 9,342 | — | (9,342) | — | ||||||||||||||||||||||||
| Restructuring charges | — | — | 3,281 | — | 3,281 | ||||||||||||||||||||||||
| Operating (loss) income | (26,682) | 238,799 | (63,649) | 9,342 | 157,810 | ||||||||||||||||||||||||
| Other income (expenses): | |||||||||||||||||||||||||||||
| Interest expense | (90,967) | (2,176) | (239) | 234 | (93,148) | ||||||||||||||||||||||||
| Change in fair value of derivatives embedded within convertible debt | 4,999 | — | — | — | 4,999 | ||||||||||||||||||||||||
| Equity in losses from real estate ventures | — | — | (27,301) | — | (27,301) | ||||||||||||||||||||||||
| Equity in earnings from investments | 54,199 | — | — | — | 54,199 | ||||||||||||||||||||||||
| Equity in earnings in consolidated subsidiaries | 106,140 | (62,244) | — | (43,896) | — | ||||||||||||||||||||||||
| Management fee income | 9,342 | — | — | (9,342) | — | ||||||||||||||||||||||||
| Other, net | (2,977) | 2,629 | (5,685) | (2,083) | (8,116) | ||||||||||||||||||||||||
| Income (loss) before provision for income taxes | 54,054 | 177,008 | (96,874) | (45,745) | 88,443 | ||||||||||||||||||||||||
| Income tax benefit (expense) | 6,628 | (60,361) | 25,972 | — | (27,761) | ||||||||||||||||||||||||
| Net income (loss) | 60,682 | 116,647 | (70,902) | (45,745) | 60,682 | ||||||||||||||||||||||||
| Net income (loss) attributed to Vector Group Ltd. | $ | 60,682 | $ | 116,647 | $ | (70,902) | $ | (45,745) | $ | 60,682 | |||||||||||||||||||
| Comprehensive income (loss) attributed to Vector Group Ltd. | $ | 61,823 | $ | 117,096 | $ | (70,902) | $ | (46,194) | $ | 61,823 | |||||||||||||||||||