Contingencies (Tables)

6 Months Ended

Jun. 30, 2013

Contingencies [Abstract]

Cases Pending by State

The following table lists the number of Individual Actions, by state, that are pending against Liggett or the Company as of June 30, 2013:

State	Number of Cases
Florida	45
New York	9
Louisiana	3
Maryland	2
West Virginia	2
Missouri	1
Ohio	1

Schedule of Judgments Entered

As of June 30, 2013, the following Engle progeny cases have resulted in judgments against Liggett:

Date	Case Name	County	Net Compensatory Damages	Punitive Damages	Status
June 2002	Lukacs v. R.J. Reynolds	Miami-Dade	$12,418	None	Affirmed by the Third District Court of Appeal. Liggett satisfied the judgment and the case is concluded.
August 2009	Campbell v. R.J. Reynolds	Escambia	$156	None	Affirmed by the First District Court of Appeal. The US Supreme Court declined to review the case. Liggett satisfied the judgment and the case is concluded.
March 2010	Douglas v. R.J. Reynolds	Hillsborough	$1,350	None	Affirmed by the Second District Court of Appeal. In March 2013, the Florida Supreme Court affirmed. Liggett intends to file a petition for writ of certiorari to the US Supreme Court.
April 2010	Clay v. R.J. Reynolds	Escambia	$349	$1,000	Affirmed by the First District Court of Appeal. The US Supreme Court declined to review the case. Liggett satisfied the judgment and the case is concluded.
April 2010	Putney v. R.J. Reynolds	Broward	$3,008	None	On June 12, 2013, the Fourth District Court of Appeal reversed and remanded the case for further proceedings. Plaintiff filed a motion for rehearing.
April 2011	Tullo v. R.J. Reynolds	Palm Beach	$225	None	On appeal to the Fourth District Court of Appeal. Oral argument occurred on June 19, 2013. A decision is pending.
January 2012	Ward v. R.J. Reynolds	Escambia	$1	None	A joint and several judgment for $487 was entered against Liggett and RJR. On appeal to the First District Court of Appeal. Oral argument occurred on July 17, 2013.
May 2012	Calloway v. R.J. Reynolds	Broward	$1,947	$7,600	A joint and several judgment for $16,100 was entered against all defendants. On appeal to the Fourth District Court of Appeal.
December 2012	Buchanan v. R.J. Reynolds	Leon	$2,035	None	A joint and several judgment for $5,500 was entered against Liggett and Philip Morris. On appeal to the First District Court of Appeal.
May 2013	Cohen v. R.J. Reynolds	Palm Beach	$205	None	Defendants' motion seeking a new trial was granted by the trial court on June 24, 2013.

Schedule of Loss Contingencies

The activity in the Company's accruals for tobacco litigation for the six months ended June 30, 2013 were as follows:

	Current Liabilities									Non-Current Liabilities
	Payments due under Master Settlement Agreement			Litigation Accruals			Total			Payments due under Master Settlement Agreement			Litigation Accruals			Total
Balance at January 1, 2013	$	32,970		$	1,470		$	34,440		$	52,639		$	1,862		$	54,501
Expenses	56,907			147			57,054			—			—			—
NPM Settlement adjustment	—			—			—			(13,489		)	—			(13,489		)
Change in MSA obligations capitalized as inventory	364			—			364			—			—			—
Payments	(34,077		)	(1,577		)	(35,654		)	—			—			—
Reclassification from non-current liabilities	3,521			223			3,744			(3,520		)	(223		)	(3,743		)
Interest on withholding	—			18			18			—			99			99
Balance as of June 30, 2013	$	59,685		$	281		$	59,966		$	35,630		$	1,738		$	37,368

The activity in the Company's accruals for tobacco litigation for the six months ended June 30, 2012 were as follows:

	Current Liabilities									Non-Current Liabilities
	Payments due under Master Settlement Agreement			Litigation Accruals			Total			Payments due under Master Settlement Agreement		Litigation Accruals			Total
Balance at January 1, 2012	$	51,174		$	1,551		$	52,725		$	49,338	$	1,600		$	50,938
Expenses	69,956			179			70,135			—		—			—
Change in MSA obligations capitalized as inventory	173			—			173			—		—			—
Payments	(50,094		)	(574		)	(50,668		)	—		—			—
Reclassification from non-current liabilities	(905		)	224			(681		)	905		(224		)	681
Interest on withholding	—			24			24			1,172		385			1,557
Balance as of June 30, 2012	$	70,304		$	1,404		$	71,708		$	51,415	$	1,761		$	53,176