Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2014

Net income for purposes of determining basic and diluted EPS

Net income (loss) for purposes of determining basic and diluted EPS was as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Net income (loss) attributed to Vector Group Ltd.	$	14,879		$	(36,891	)	$	25,384		$	(25,061	)
Expense attributed to participating securities	(423		)	—			(739		)	—
Net income (loss) attributed to Vector Group Ltd. available to common stockholders	$	14,456		$	(36,891	)	$	24,645		$	(25,061	)

Basic and diluted EPS calculation shares

Basic and diluted EPS were calculated using the following shares:



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2014	2013	2014	2013
Weighted-average shares for basic EPS	103,213,667	95,775,444	101,395,081	95,741,318
Plus incremental shares related to stock options and non-vested restricted stock	114,623	—	113,070	—
Weighted-average shares for basic and fully diluted EPS	103,328,290	95,775,444	101,508,151	95,741,318

Outstanding shares not included in the computation of diluted EPS

The following stock options, non-vested restricted stock and shares issuable upon the conversion of convertible debt were outstanding during the three and nine months ended September 30, 2014 and 2013 but were not included in the computation of diluted EPS because the effect was anti-dilutive.



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Number of stock options	N/A		524,887		N/A		524,887
Weighted-average exercise price	N/A		$	11.88	N/A		$	11.88
Weighted-average shares of non-vested restricted stock	N/A		55,125		N/A		55,125
Weighted-average expense per share	N/A		$	15.52	N/A		$	15.52
Weighted-average number of shares issuable upon conversion of debt	32,599,702		29,726,047		31,257,300		29,726,047
Weighted-average conversion price	$	18.36	$	14.50	$	17.30	$	14.50

Schedule of other income (loss), net

Other income, net consists of:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
Gain on warrants	$	991		$	135	$	868		$	172
Interest income	1,476			2,647		3,665			4,123
Accretion of interest income from debt discount on notes receivable	11			81		87			704
Out-of-period adjustment	—			—		1,231			—
Acceleration of closing fee related to termination of Douglas Elliman joint venture	—			—		2,335			—
Gain on long-term investment	—			—		—			142
Other (expense) income	(12		)	8		(19		)	10
Other income, net	$	2,466		$	2,871	$	8,167		$	5,151

Schedule of revision of prior period gross revenues and costs

In connection with the December 13, 2013 acquisition of Douglas Elliman, the Company was required to disclose Douglas Elliman’s revenues and costs separately on the face of its condensed consolidated statements of operation. Consequently, the Company also revised the prior period in order to correctly present the gross revenues and costs of the other consolidated real estate investments as follows:



	Three Months Ended							Nine Months Ended
	September 30, 2013							September 30, 2013
	As Previously Reported		Revision			As Revised		As Previously Reported		Revision			As Revised
Revenues	$	271,516	$	(271,516	)	$	—	$	761,038	$	(761,038	)	$	—
Tobacco revenues	—		271,516			271,516		—		761,038			761,038
Real estate revenues	—		6,425			6,425		—		19,298			19,298
Total revenue	271,516		6,425			277,941		761,038		19,298			780,336

Cost of Sales	194,991		(194,991		)	—		548,377		(548,377		)	—
Tobacco cost of sales	—		194,991			194,991		—		548,377			548,377
Real estate cost of sales	—		5,844			5,844		—		16,080			16,080
Total cost of sales	194,991		5,844			200,835		548,377		16,080			564,457

Operating, selling, administrative and general expenses	$	25,897	$	581		$	26,478	$	74,697	$	3,218		$	77,915

Schedule of Goodwill, Trademarks and Other Intangible Assets, net:

The components of "Goodwill, trademarks and other intangible assets, net" were as follows:



	September 30, 2014		December 31, 2013
Intangible assets, net	$	7,649	$	11,919
Goodwill	72,976		71,681
Trademarks	80,005		80,000
Intangible asset associated with benefit under the Master Settlement Agreement	107,511		107,511
	$	268,141	$	271,111

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

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