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

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Notes payable, long-term debt and other obligations

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

	December 31, 2014			December 31, 2013
Vector:
7.75% Senior Secured Notes due 2021, including premium of $9,275 and $0	$	609,275		$	450,000
6.75% Variable Interest Senior Convertible Note due 2015 (as amended), net of unamortized discount of $0 and $19,311*	25,000			30,689
6.75% Variable Interest Senior Convertible Exchange Notes due 2014, net of unamortized discount of $0 and $25,944*	—			81,586
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $98,831 and $0*	159,919			—
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $146,634 and $155,817*	83,366			74,183
Liggett:
Revolving credit facility	17,767			30,424
Term loan under credit facility	3,589			3,884
Equipment loans	13,966			17,252
Other	469			4,325
Total notes payable, long-term debt and other obligations	913,351			692,343
Less:
Current maturities	(52,640		)	(151,577		)
Amount due after one year	$	860,711		$	540,766

_____________________________

* The fair value of the derivatives embedded within the 6.75% Variable Interest Senior Convertible Note ($884 at December 31, 2014 and $6,607 at December 31, 2013, respectively), the 6.75% Variable Interest Senior Convertible Exchange Notes ($0 at December 31, 2014 and $12,521 at December 31, 2013, respectively), the 5.50% Variable Interest Senior Convertible Debentures ($80,864 at December 31, 2014 and $0 at December 31, 2013, respectively), and the 7.5% Variable Interest Senior Convertible Debentures ( $87,638 at December 31, 2014 and $92,934 at December 31, 2013, 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,
	2014		2013		2012
6.75% note	$	6,097	$	5,914	$	2,842
6.75% exchange notes	13,570		11,799		7,416
3.875% convertible debentures	—		155		57
7.5% convertible notes	5,553		3,614		369
5.5% convertible notes	6,851		—		—
Interest expense associated with embedded derivatives	$	32,071	$	21,482	$	10,684

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,
	2014		2013			2012
6.75% note	$	3,212	$	5,075		$	5,247
6.75% exchange notes	8,990		9,625			9,940
3.875% convertible debentures	—		(1,417		)	(22,281		)
7.5% convertible notes	5,296		5,652			(382		)
5.5% convertible notes	1,911		—			—
Gain (loss) on changes in fair value of derivatives embedded within convertible debt	$	19,409	$	18,935		$	(7,476	)

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			5.5% Convertible Notes			Total
Balance at January 1, 2012	$	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
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(2,511		)	—			—			—			—			(2,511		)
Conversion of $107,530 of 6.75% Variable Interest Senior Convertible Exchange Notes due November 15, 2014	—			(3,531		)	—			—			—			(3,531		)
Issuance of 5.5% Note	—			—			—			—			82,775			82,775
Gain from changes in fair value of embedded derivatives	(3,212		)	(8,990		)	—			(5,296		)	(1,911		)	(19,409		)
Balance at December 31, 2014	$	884		$	—		$	—		$	87,638		$	80,864		$	169,386

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,
	2014		2013		2012
Amortization of beneficial conversion feature:
6.75% note	$	5,317	$	5,157	$	2,479
6.75% exchange notes	8,386		7,294		4,582
3.875% convertible debentures	—		82		30
7.5% convertible notes	3,631		2,363		241
5.5% convertible notes	2,067		—		—
Interest expense associated with beneficial conversion feature	$	19,401	$	14,896	$	7,332

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			5.5% Convertible Notes			Total
Balance at January 1, 2012	$	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
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(7,898		)	—			—			—			—			(7,898		)
Conversion of $107,530 of 6.75% Variable Interest Senior Convertible Exchange Notes due November 15, 2014	—			(3,989		)	—			—			—			(3,989		)
Issuance of convertible notes - embedded derivative	—			—			—			—			82,775			82,775
Issuance of convertible notes - beneficial conversion feature	—			—			—			—			24,974			24,974
Amortization of embedded derivatives	(6,097		)	(13,570		)	—			(5,553		)	(6,851		)	(32,071		)
Amortization of beneficial conversion feature	(5,317		)	(8,386		)	—			(3,631		)	(2,067		)	(19,401		)
Balance at December 31, 2014	$	—		$	—		$	—		$	146,634		$	98,831		$	245,465

Fair Value of Notes Payable and Long-term Debt

The estimated fair value of the Company’s notes payable and long-term debt has been determined by the Company using available market information and appropriate valuation methodologies including the evaluation of the Company’s credit risk as described in Note 1. However, considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein are not necessarily indicative of the amount that could be realized in a current market exchange.

	December 31, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes payable and long-term debt	$	913,351	$	1,313,711	$	692,343	$	1,006,562

Schedule of Maturities of Long-term Debt

Scheduled maturities of long-term debt are as follows:

	Principal		Unamortized Discount		Net
Year Ending December 31:
2015	$	52,640	$	—	$	52,640
2016	4,925		—		4,925
2017	1,527		—		1,527
2018	1,267		—		1,267
2019	230,432		146,634		83,798
Thereafter	858,750		89,556		769,194
Total	$	1,149,541	$	236,190	$	913,351