Contingencies (Tables)

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [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 September 30, 2014:

State	Number of Cases
Florida	30
New York	8
Maryland	4
Louisiana	2
West Virginia	2
Missouri	1
Ohio	1

Schedule of Judgments Entered

As of October 27, 2014, the following Engle progeny cases have resulted in judgments against Liggett:

Date	Case Name	County	Liggett Compensatory Damages	Liggett 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 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. Discretionary review from the Florida Supreme Court was denied. Liggett satisfied the judgment and the case is concluded, other than an issue with respect to the calculation of interest on the judgment and the amount of costs owed by Liggett.
January 2012	Ward v. R.J. Reynolds	Escambia	$1	None	Liggett satisfied the merits judgment and other than an issue regarding attorneys' fees, the case is concluded.
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. Affirmed by the First District Court of Appeal, but, the court certified an issue of conflict with another case. The defendants sought discretionary review by the Florida Supreme Court. The appeal is stayed pending the outcome of Hess.
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	Liggett settled its portion of the judgment for $1,500 and the case is concluded.
August 2014	Irimi v. R.J. Reynolds	Broward	$31	None	The verdict has not been reduced to a judgment. Post trial motions are pending.
October 2014	Lambert v. R.J. Reynolds	Pinellas	$3,600	$9,500	The verdict has not been reduced to a judgment. Post trial motions are pending.
Total Damages Awarded:			$28,804	$18,100
Amounts paid or compromised:			$(17,978)	$(1,000)
Damages remaining on Appeal:			$10,826	$17,100

Schedule of Loss Contingencies

The activity in the Company's accruals for the MSA and tobacco litigation for the nine months ended September 30, 2014 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, 2014	$	25,348		$	59,310		$	84,658		$	27,571		$	27,058		$	54,629
Expenses	83,159			2,041			85,200			—			—			—
NPM Settlement adjustment	—			—			—			(1,419		)	—			(1,419		)
Change in MSA obligations capitalized as inventory	(917		)	—			(917		)	—			—			—
Payments	(16,343		)	(61,822		)	(78,165		)	—			—			—
Reclassification from non-current liabilities	343			3,575			3,918			(343		)	(3,575		)	(3,918		)
Interest on withholding	—			203			203			—			1,546			1,546
Balance as of September 30, 2014	$	91,590		$	3,307		$	94,897		$	25,809		$	25,029		$	50,838

The activity in the Company's accruals for the MSA and tobacco litigation for the nine months ended September 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	87,770			62,872			150,642			—			25,219			25,219
NPM Settlement adjustment	(5,987		)	—			(5,987		)	(13,489		)	—			(13,489		)
Change in MSA obligations capitalized as inventory	675			—			675			—			—			—
Payments	(34,077		)	(1,685		)	(35,762		)	—			—			—
Reclassification from non-current liabilities	3,520			223			3,743			(3,520		)	(223		)	(3,743		)
Interest on withholding	—			321			321			—			150			150
Balance as of September 30, 2013	$	84,871		$	63,201		$	148,072		$	35,630		$	27,008		$	62,638