EX-99.2 18 a2022q4ex992.htm EX-99.2 Document

EXHIBIT 99.2
Vector Group Ltd.
Condensed Consolidating Financial Statements
December 31, 2022
(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of December 31, 2022 and the related Condensed Consolidating Statements of Operations for the year ended December 31, 2022 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
December 31, 2022
SubsidiaryConsolidated
Parent/SubsidiaryNon-ConsolidatingVector Group
IssuerGuarantorsGuarantorsAdjustmentsLtd.
ASSETS:
Current assets:
Cash and cash equivalents$213,952 $10,129 $499 $— $224,580 
Investment securities at fair value116,436 — — — 116,436 
Accounts receivable - trade, net— 40,677 — — 40,677 
Intercompany receivables2,238 — — (2,238)— 
Inventories— 92,448 — — 92,448 
Income taxes receivable, net24,025 — 13,165 (28,736)8,454 
Other current assets997 8,773 — — 9,770 
Total current assets357,648 152,027 13,664 (30,974)492,365 
Property, plant and equipment, net395 29,589 9,596 — 39,580 
Long-term investment securities44,959 — — — 44,959 
Investments in real estate ventures— — 121,117 — 121,117 
Operating lease right-of-use assets3,287 4,455 — — 7,742 
Investments in consolidated subsidiaries265,884 — — (265,884)— 
Intangible assets— 107,511 — — 107,511 
Other assets13,265 79,050 3,002 — 95,317 
Total assets$685,438 $372,632 $147,379 $(296,858)$908,591 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt$— $22,065 $— $— $22,065 
Intercompany payables— 198 2,040 (2,238)— 
Income taxes payable, net— 28,736 — (28,736)— 
Current payments due under the Master Settlement Agreement— 14,838 — — 14,838 
Current operating lease liability1,648 1,903 — — 3,551 
Other current liabilities38,667 95,844 659 — 135,170 
Total current liabilities40,315 163,584 2,699 (30,974)175,624 
Notes payable, long-term debt and other obligations, less current portion1,390,253 8 — — 1,390,261 
Non-current employee benefits57,119 6,097 — — 63,216 
Deferred income taxes, net(139)25,523 25,650 — 51,034 
Non-current operating lease liability2,501 2,968 — — 5,469 
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement3,266 27,235 363 — 30,864 
Total liabilities1,493,315 225,415 28,712 (30,974)1,716,468 
Commitments and contingencies
Total stockholders' (deficiency) equity(807,877)147,217 118,667 (265,884)(807,877)
Total liabilities and stockholders' deficiency$685,438 $372,632 $147,379 $(296,858)$908,591 


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2022
SubsidiaryConsolidated
  Parent/  SubsidiaryNon-ConsolidatingVector Group
  Issuer  GuarantorsGuarantorsAdjustments        Ltd.        
Revenues$— $1,425,125 $16,915 $(1,031)$1,441,009 
Expenses:
Cost of sales— 991,331 7,327 — 998,658 
Operating, selling, administrative and general expenses29,257 73,018 1,858 (1,031)103,102 
Litigation settlement and judgment expense— 239 — — 239 
Management fee expense— 13,501 — (13,501)— 
Operating (loss) income(29,257)347,036 7,730 13,501 339,010 
Other income (expenses):
Interest expense(108,101)(2,564)— — (110,665)
Gain on extinguishment of debt412 — — — 412 
Equity in losses from real estate ventures— — (5,946)— (5,946)
Equity in losses from investments(4,995)— — — (4,995)
Equity in earnings in consolidated subsidiaries266,480 — — (266,480)— 
Management fee income13,501 — — (13,501)— 
Other, net(5,247)8,107 2,532 (2,646)2,746 
Income before provision for income taxes132,793 352,579 4,316 (269,126)220,562 
Income tax benefit (expense)25,908 (85,208)(2,561)— (61,861)
Net income$158,701 $267,371 $1,755 $(269,126)$158,701 
Comprehensive income$158,351 $262,411 $1,755 $(264,166)$158,351