Contingencies (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2013:

State	Number of Cases
Florida	39
New York	9
Maryland	4
Louisiana	3
West Virginia	2
Missouri	1
Ohio	1

Schedule of Judgments Entered

As of December 31, 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	Liggett satisfied the judgment and the case is concluded.
August 2009	Campbell v. R.J. Reynolds	Escambia	$156	None	Liggett satisfied the judgment and the case is concluded.
March 2010	Douglas v. R.J. Reynolds	Hillsborough	$1,350	None	Liggett satisfied the judgment and the case is concluded.
April 2010	Clay v. R.J. Reynolds	Escambia	$349	$1,000	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 which was denied. Both sides have sought discretionary review from the Florida Supreme Court. The appeal is stayed pending the outcome of the Hess appeal.
April 2011	Tullo v. R.J. Reynolds	Palm Beach	$225	None	Affirmed by the Fourth District Court of Appeal. The defendants have sought discretionary review from the Florida Supreme Court.
January 2012	Ward v. R.J. Reynolds	Escambia	$1	None	Affirmed by the First District Court of Appeal. Liggett satisfied the merits judgment and other than an issue regarding attorneys' fees, the case is concluded. Oral argument on the attorneys' fee appeal occurred on February 11, 2014.
May 2012	Calloway v. R.J. Reynolds	Broward	$1,947	$7,600	A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. 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. Plaintiff appealed to the Fourth District Court of Appeal.
August 2013	Rizzuto v. R.J. Reynolds	Hernando	$3,479	None	A joint and several judgment for $11,132 was entered against Philip Morris and Liggett. The court denied defendants' request to reduce the compensatory damages by the plaintiff's comparative fault. On appeal to the Fifth District Court of Appeal.

Schedule of Loss Contingencies

The activity in the Company's accruals for the MSA and tobacco litigation for the three years ended December 31, 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 31, 2011	$	43,888		$	4,183		$	48,071		$	30,205		$	—		$	30,205
Expenses	155,707			885			156,592			—			—			—
Change in MSA obligations capitalized as inventory	(2,495		)	—			(2,495		)	—			—			—
Payments	(128,258		)	(1,917		)	(130,175		)	—			—			—
Reclassification from non-current liabilities	(17,668		)	(1,600		)	(19,268		)	17,667			1,600			19,267
Interest on withholding	—			—			—			1,466			—			1,466
Balance at December 31, 2011	51,174			1,551			52,725			49,338			1,600			50,938
Expenses	137,746			1,725			139,471			—			—			—
Change in MSA obligations capitalized as inventory	49			—			49			—			—			—
Payments	(155,094		)	(2,170		)	(157,264		)	—			—			—
Reclassification from non-current liabilities	(905		)	224			(681		)	905			(224		)	681
Interest on withholding	—			140			140			2,396			486			2,882
Balance at December 31, 2012	32,970			1,470			34,440			52,639			1,862			54,501
Expenses	117,085			63,292			180,377			—			25,218			25,218
MSA settlement and arbitration adjustments	(3,928		)	—			(3,928		)	(18,138		)	—			(18,138		)
Change in MSA obligations capitalized as inventory	1,611			—			1,611			—			—			—
Payments	(129,320		)	(6,070		)	(135,390		)	—			—			—
Reclassification from non-current liabilities	6,930			223			7,153			(6,930		)	(223		)	(7,153		)
Interest on withholding	—			395			395			—			201			201
Balance as of December 31, 2013	$	25,348		$	59,310		$	84,658		$	27,571		$	27,058		$	54,629