Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company's significant business segments for the three and nine months ended September 30, 2014 and 2013 were Tobacco, E-Cigarettes and Real Estate. The Tobacco segment consists of the manufacture and sale of conventional cigarettes. The E-Cigarettes segment includes the operations of the Company's e-cigarette business. The Real Estate segment includes the Company’s investment in New Valley LLC, which includes Douglas Elliman, Escena, Indian Creek and investments in real estate ventures. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. As a result of the amount of operating losses of Zoom as of September 30, 2014, when compared to the remaining components of the Company's Corporate and Other segment, the Company has reevaluated its operating segments and has separated Zoom’s operations from the Corporate and Other segment for previously reported 2014 periods and from the Tobacco segment for the previously reported 2013 periods. Thus, prior period information has been recast to conform to the current presentation. This change did not have an impact to the Company's historical consolidated results.

Financial information for the Company's operations before taxes for the three and nine months ended September 30, 2014 and 2013 follows:

								Real			Corporate
	Tobacco				E-Cigarettes			Estate			and Other			Total
Three months ended September 30, 2014
Revenues	$	264,520			$	1,608		$	153,748		$	—		$	419,876
Operating income (loss)	52,993			(1)	(2,910		)	16,222			(3,321		)	62,984
Equity income from real estate ventures	—				—			3,258			—			3,258
Depreciation and amortization	2,853				—			2,740			452			6,045
Three months ended September 30, 2013
Revenues	$	271,516			$	—		$	6,425		$	—		$	277,941
Operating loss	(32,414		)	(2)	(560		)	(806		)	(3,505		)	(37,285		)
Equity income from real estate ventures	—				—			9,489			—			9,489
Depreciation and amortization	2,361				—			160			251			2,772
Nine months ended September 30, 2014
Revenues	$	748,468			$	9,977		$	415,280		$	—		$	1,173,725
Operating income (loss)	147,395			(3)	(7,100		)	36,867			(11,148		)	166,014
Equity income from real estate ventures	—				—			3,002			—			3,002
Identifiable assets	445,914				10,657			483,330			703,482			1,643,383
Depreciation and amortization	7,934				—			9,709			956			18,599
Capital expenditures	7,911				—			5,614			7,221			20,746
Nine months ended September 30, 2013
Revenues	$	761,038			$	—		$	19,298		$	—		$	780,336
Operating income (loss)	63,040			(4)	(560		)	(1,423		)	(11,006		)	50,051
Equity income from real estate ventures	—				—			16,774			—			16,774
Identifiable assets	425,186				3,834			208,339			483,596			1,120,955
Depreciation and amortization	7,114				—			440			451			8,005
Capital expenditures	5,813				—			553			2,320			8,686

⁽¹⁾ Operating income includes $225 of litigation judgment expense.

⁽²⁾ Operating income includes $4,016 of income from NPM Settlement, $86,213 of Engle progeny settlement charge and $1,700 of litigation judgment expense.

⁽³⁾ Operating income includes $1,419 of income from NPM Settlement and $1,725 of litigation settlement charges and judgment expense.

⁽⁴⁾ Operating income includes $10,963 of income from NPM Settlement, $86,213 of Engle progeny settlement charge and $1,700 of litigation judgment expense.