NOTES PAYABLE, LONG-TERM DEBT AND OTHER OBLIGATIONS

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



	September 30, 2015			December 31, 2014
Vector:
7.75% Senior Secured Notes due 2021, including premium of $8,337 and $9,275	$	608,337		$	609,275
6.75% Variable Interest Senior Convertible Note due 2015	—			25,000
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $136,365 and $146,634*	93,635			83,366
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $89,454 and $98,831*	169,296			159,919
Liggett:
Revolving credit facility	1,803			17,767
Term loan under credit facility	3,368			3,589
Equipment loans	10,919			13,966
Other	289			469
Total notes payable, long-term debt and other obligations	887,647			913,351
Less:
Current maturities	(7,957		)	(52,640		)
Amount due after one year	$	879,690		$	860,711

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* The fair value of the derivatives embedded within the 6.75% Variable Interest Senior Convertible Note ($0 at September 30, 2015 and $884 at December 31, 2014, respectively), the 7.5% Variable Interest Senior Convertible Notes ($75,788 at September 30, 2015 and $87,638 at December 31, 2014, respectively) and the 5.5% Variable Interest Senior Convertible Debentures ($73,951 at September 30, 2015 and $80,864 at December 31, 2014, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets.

6.75% Variable Interest Senior Convertible Note due 2015 - Vector:

On February 3, 2015, the holder of the 6.75% Variable Interest Senior Convertible Note due 2015, converted the remaining $25,000 principal balance of the $50,000 Note into 2,338,930 of the Company's common shares. The debt conversion resulted in a reduction of debt and an increase to equity in the amount of $25,000.

Revolving Credit Facility and Term Loan Under Credit Facility - Liggett:

As of September 30, 2015, a total of $5,171 was outstanding under the revolving and term loan portions of the credit facility. Availability, as determined under the facility, was approximately $52,915 based on eligible collateral at September 30, 2015.

Shares of Common Stock per $1,000 Principal Amount due on Convertible Notes:

The conversion rates for all convertible debt outstanding as of September 30, 2015 and December 31, 2014, are summarized below:



	September 30, 2015			December 31, 2014
	Conversion Price		Shares per $1,000	Conversion Price		Shares per $1,000

6.75% Variable Interest Senior Convertible Note due 2014	$	—	—	$	10.69	93.5572
7.5% Variable Interest Senior Convertible Notes due 2019	$	15.98	62.5743	$	15.98	62.5743
5.5% Variable Interest Senior Convertible Debentures due 2020	$	24.64	40.5891	$	24.64	40.5891

Non-Cash Interest Expense - Vector:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Amortization of debt discount, net	$	6,868	$	14,277	$	18,708	$	41,180
Amortization of deferred finance costs	1,085		1,147		3,073		2,910
Accelerated interest expense on 6.75% Variable Interest Senior Convertible Note converted	—		—		—		3,679
Accelerated interest expense on 6.75% Variable Interest Senior Convertible Exchange Notes converted	—		994		—		1,433
	$	7,953	$	16,418	$	21,781	$	49,202

Fair Value of Notes Payable and Long-Term Debt:



	September 30, 2015					December 31, 2014
	Carrying			Fair		Carrying			Fair
	Value			Value		Value			Value
Notes payable and long-term debt	$	887,647	(1)	$	1,285,711	$	913,351	(1)	$	1,313,711

______________________

⁽¹⁾The carrying value does not include the carrying value of the embedded derivative. See Note 11.

Notes payable and long-term debt are carried on the condensed consolidated balance sheet at amortized cost. The fair value determinations disclosed above are classified as Level 2 under the fair value hierarchy disclosed in Note 11 if such liabilities were recorded on the condensed consolidated balance sheet at fair value. 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 the Company's Form 10-K. However, considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein is not necessarily indicative of the amount that could be realized in a current market exchange.