Notes Payable, Long Term Debt and Other Obligations (Tables)

12 Months Ended

Dec. 31, 2013

Notes Payable Long Term Debt and Other Obligations [Abstract]

Notes payable, long-term debt and other obligations

Notes payable, long-term debt and other obligations consist of:

	December 31, 2013			December 31, 2012
Vector:
7.75% Senior Secured Notes due 2021	$	450,000		$	—
11% Senior Secured Notes due 2015, net of unamortized discount of $0 and $408	—			414,592
6.75% Variable Interest Senior Convertible Note due 2014, net of unamortized discount of $19,311 and $30,383*	30,689			19,617
6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $25,944 and $45,038*	81,586			62,492
3.875% Variable Interest Senior Convertible Debentures due 2026, net of unamortized discount of $0 and $36,107*	—			7,115
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $155,817 and $161,795*	74,183			68,205
Liggett:
Revolving credit facility	30,424			29,430
Term loan under credit facility	3,884			4,179
Equipment loans	17,252			17,810
Other	4,325			284
Total notes payable, long-term debt and other obligations	692,343			623,724
Less:
Current maturities	(151,577		)	(36,778		)
Amount due after one year	$	540,766		$	586,946

_____________________________

* The fair value of the derivatives embedded within the 6.75% Variable Interest Senior Convertible Note ($6,607 at December 31, 2013 and $11,682 at December 31, 2012, respectively), the 6.75% Variable Interest Senior Convertible Exchange Notes ($12,521 at December 31, 2013 and $22,146 at December 31, 2012, respectively), the 3.875% Variable Interest Senior Convertible Debentures ($0 at December 31, 2013 and $39,714 at December 31, 2012, respectively), and the 7.5% Variable Interest Senior Convertible Debentures ( $92,934 at December 31, 2013 and $98,586 at December 31, 2012, respectively) is separately classified as a derivative liability in the condensed consolidated balance sheets.

Schedule of Amortization Of Debt Discount Created By Embedded Derivative

A summary of non-cash interest expense associated with the amortization of the debt discount created by the embedded derivative liability associated with the Company’s variable interest senior convertible debt is as follows:

	Year Ended December 31,
	2013		2012		2011
6.75% note	$	5,914	$	2,842	$	1,415
6.75% exchange notes	11,799		7,416		4,745
3.875% convertible debentures	155		57		195
7.5% convertible notes	3,614		369		—
Interest expense associated with embedded derivatives	$	21,482	$	10,684	$	6,355

Schedule Of Changes In Fair Value Of Derivatives

A summary of non-cash changes in fair value of derivatives embedded within convertible debt is as follows:

	Year Ended December 31,
	2013			2012			2011
6.75% note	$	5,075		$	5,247		$	3,290
6.75% exchange notes	9,625			9,940			6,238
3.875% convertible debentures	(1,417		)	(22,281		)	(1,544		)
7.5% convertible notes	5,652			(382		)	—
(Loss) gain on changes in fair value of derivatives embedded within convertible debt	$	18,935		$	(7,476	)	$	7,984

The following table reconciles the fair value of derivatives embedded within convertible debt:

	6.75% Note			6.75% Exchange Notes			3.875% Convertible Debentures			7.5% Convertible Notes			Total
Balance at January 1, 2011	$	20,219		$	38,324		$	82,949		$	—		$	141,492
Conversion of $11,000 of 3.875% Variable Interest Senior Convertible Debentures due June 15, 2011	—			—			(8		)	—			(8		)
(Gain) loss from changes in fair value of embedded derivatives	(3,290		)	(6,238		)	1,544			—			(7,984		)
Balance at December 31, 2011	16,929			32,086			84,485			—			133,500
Conversion of $55,778 of 3.875% Variable Interest Senior Convertible Debentures due June 15, 2016	—			—			(67,052		)	—			(67,052		)
Issuance of 7.5% Note	—			—			—			98,204			98,204
(Gain) loss from changes in fair value of embedded derivatives	(5,247		)	(9,940		)	22,281			382			7,476
Balance at December 31, 2012	11,682			22,146			39,714			98,586			172,128
Conversion of $43,222 of 3.875% Variable Interest Senior Convertible Debentures due June 15, 2016	—			—			(41,131		)	—			(41,131		)
(Gain) loss from changes in fair value of embedded derivatives	(5,075		)	(9,625		)	1,417			(5,652		)	(18,935		)
Balance at December 31, 2013	$	6,607		$	12,521		$	—		$	92,934		$	112,062

Components of non-cash interest expense

A summary of non-cash interest expense associated with the amortization of the debt discount created by the beneficial conversion feature on the Company’s variable interest senior convertible debt is as follows:

	Year Ended December 31,
	2013		2012		2011
Amortization of beneficial conversion feature:
6.75% note	$	5,157	$	2,479	$	1,234
6.75% exchange notes	7,294		4,582		2,932
3.875% convertible debentures	82		30		(80		)
7.5% convertible notes	2,363		241		—
Interest expense associated with beneficial conversion feature	$	14,896	$	7,332	$	4,086

Schedule of Unamortized Debt Discount

The following table reconciles unamortized debt discount within convertible debt:

	6.75% Note			6.75% Exchange Notes			3.875% Convertible Debentures			7.5% Convertible Notes			Total
Balance at January 1, 2011	$	38,353		$	64,713		$	83,060		$	—		$	186,126
Conversion of $11,000 of 3.875% Variable Interest Senior Convertible Debentures due June 15, 2011	—			—			3			—			3
Amortization of embedded derivatives	(1,415		)	(4,745		)	(195		)	—			(6,355		)
Amortization of beneficial conversion feature	(1,234		)	(2,932		)	80			—			(4,086		)
Balance at December 31, 2011	35,704			57,036			82,948			—			175,688
Conversion of $55,778 of 3.875% Variable Interest Senior Convertible Debentures due June 15, 2016	—			—			(46,754		)	—			(46,754		)
Issuance of convertible notes - embedded derivative	—			—			—			98,204			98,204
Issuance of convertible notes - beneficial conversion feature	—			—			—			64,201			64,201
Amortization of embedded derivatives	(2,842		)	(7,416		)	(57		)	(369		)	(10,684		)
Amortization of beneficial conversion feature	(2,479		)	(4,582		)	(30		)	(241		)	(7,332		)
Balance at December 31, 2012	30,383			45,038			36,107			161,795			273,323
Conversion of $43,222 of 3.875% Variable Interest Senior Convertible Debentures due June 15, 2016	—			—			(35,870		)	—			(35,870		)
Amortization of embedded derivatives	(5,914		)	(11,799		)	(155		)	(3,614		)	(21,482		)
Amortization of beneficial conversion feature	(5,157		)	(7,294		)	(82		)	(2,363		)	(14,896		)
Balance at December 31, 2013	$	19,312		$	25,945		$	—		$	155,818		$	201,075

Fair Value of Notes Payable and Long-term Debt

	December 31, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes payable and long-term debt	$	692,343	$	1,006,562	$	623,724	$	963,672

Schedule of Maturities of Long-term Debt

Scheduled maturities of long-term debt are as follows:

	Principal		Unamortized Discount		Net
Year Ending December 31:
2014	$	196,832	$	45,257	$	151,575
2015	13,268		—		13,268
2016	2,911		—		2,911
2017	230		—		230
2018	177		—		177
Thereafter	680,000		155,818		524,182
Total	$	893,418	$	201,075	$	692,343