EX-99.2 10 a2023q4ex992.htm EX-99.2 Document

EXHIBIT 99.2
Vector Group Ltd.
Condensed Consolidating Financial Statements
December 31, 2023
(in thousands of dollars)

Presented herein are Condensed Consolidating Balance Sheet as of December 31, 2023 and the related Condensed Consolidating Statements of Operations for the year ended December 31, 2023 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, 2023
SubsidiaryConsolidated
Parent/SubsidiaryNon-ConsolidatingVector Group
IssuerGuarantorsGuarantorsAdjustmentsLtd.
ASSETS:
Current assets:
Cash and cash equivalents$251,720 $16,753 $127 $— $268,600 
Investment securities at fair value110,935 — — — 110,935 
Accounts receivable - trade, net— 26,442 — — 26,442 
Intercompany receivables2,854 — — (2,854)— 
Inventories— 91,959 — — 91,959 
Income taxes receivable, net15,215 — 16,901 (32,116)— 
Other current assets996 10,289 380 — 11,665 
Total current assets381,720 145,443 17,408 (34,970)509,601 
Property, plant and equipment, net603 34,365 8,412 — 43,380 
Long-term investment securities46,760 — — — 46,760 
Investments in real estate ventures— — 131,497 — 131,497 
Operating lease right-of-use assets7,071 3,946 — — 11,017 
Investments in consolidated subsidiaries290,780 — — (290,780)— 
Intangible assets— 107,511 — — 107,511 
Other assets14,022 62,506 7,801 — 84,329 
Total assets$740,956 $353,771 $165,118 $(325,750)$934,095 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY:
Current liabilities:
Current portion of notes payable and long-term debt$— $8 $— $— $8 
Intercompany payables— 606 2,248 (2,854)— 
Income taxes payable, net— 32,833 — (32,116)717 
Current payments due under the Master Settlement Agreement— 8,812 — — 8,812 
Current operating lease liability1,694 2,012 — — 3,706 
Other current liabilities39,590 91,545 545 — 131,680 
Total current liabilities41,284 135,816 2,793 (34,970)144,923 
Notes payable, long-term debt and other obligations, less current portion1,371,811 — — — 1,371,811 
Non-current employee benefits61,258 5,853 — — 67,111 
Deferred income taxes, net(495)28,292 30,173 — 57,970 
Non-current operating lease liability5,917 2,260 — — 8,177 
Other liabilities, including litigation accruals and payments due under the Master Settlement Agreement2,995 22,634 288 — 25,917 
Total liabilities1,482,770 194,855 33,254 (34,970)1,675,909 
Commitments and contingencies
Total stockholders' (deficiency) equity(741,814)158,916 131,864 (290,780)(741,814)
Total liabilities and stockholders' deficiency$740,956 $353,771 $165,118 $(325,750)$934,095 


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Year Ended December 31, 2023
SubsidiaryConsolidated
  Parent/  SubsidiaryNon-ConsolidatingVector Group
  Issuer  GuarantorsGuarantorsAdjustments        Ltd.        
Revenues$— $1,424,268 $1,031 $(1,031)$1,424,268 
Expenses:
Cost of sales— 965,348 — — 965,348 
Operating, selling, administrative and general expenses32,748 79,407 962 (1,031)112,086 
Litigation settlement and judgment expense— 18,799 — — 18,799 
Management fee expense— 14,063 — (14,063)— 
Operating (loss) income(32,748)346,651 69 14,063 328,035 
Other income (expenses):
Interest expense(106,672)(1,945)— — (108,617)
Loss on extinguishment of debt(549)— — — (549)
Equity in earnings from real estate ventures— — 2,202 — 2,202 
Equity in earnings from investments1,262 — — — 1,262 
Equity in earnings in consolidated subsidiaries264,841 — — (264,841)— 
Management fee income14,063 — — (14,063)— 
Other, net15,580 10,177 362 — 26,119 
Income before provision for income taxes155,777 354,883 2,633 (264,841)248,452 
Income tax benefit (expense)27,749 (91,887)(788)— (64,926)
Net income$183,526 $262,996 $1,845 $(264,841)$183,526 
Comprehensive income$186,687 $266,497 $1,845 $(268,342)$186,687