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

12 Months Ended

Dec. 31, 2015

Notes payable, long-term debt and other obligations

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



	December 31, 2015			December 31, 2014
Vector:
7.75% Senior Secured Notes due 2021, including premium of $8,014 and $9,275	$	608,014		$	609,275
6.75% Variable Interest Senior Convertible Note due 2015 (as amended), net of unamortized discount of $0 and $0*	—			25,000
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $86,136 and $98,831*	172,614			159,919
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $132,119 and $146,634*	97,881			83,366
Liggett:
Revolving credit facility	3,213			17,767
Term loan under credit facility	3,269			3,589
Equipment loans	9,716			13,966
Other	461			469
Total notes payable, long-term debt and other obligations	895,168			913,351
Less:
Current maturities	(8,919		)	(52,640		)
Amount due after one year	$	886,249		$	860,711

_____________________________

The fair value of the derivatives embedded within the 6.75% Variable Interest Senior Convertible Note ($0 at December 31, 2015 and $884 at December 31, 2014, respectively), the 5.50% Variable Interest Senior Convertible Debentures ($71,959 at December 31, 2015 and $80,864 at December 31, 2014, respectively), and the 7.5% Variable Interest Senior Convertible Debentures ($72,083 at December 31, 2015 and $87,638 at December 31, 2014, respectively) is separately classified as a derivative liability in the 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,
	2015		2014		2013
6.75% note	$	—	$	6,097	$	5,914
6.75% exchange notes	—		13,570		11,799
3.875% convertible debentures	—		—		155
7.5% convertible notes	8,777		5,553		3,614
5.5% convertible notes	9,752		6,851		—
Interest expense associated with embedded derivatives	$	18,529	$	32,071	$	21,482

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



	Year Ended December 31,
	2015			2014		2013
6.75% note	$	(5	)	$	3,212	$	5,075
6.75% exchange notes	—			8,990		9,625
3.875% convertible debentures	—			—		(1,417		)
7.5% convertible notes	15,555			5,296		5,652
5.5% convertible notes	8,905			1,911		—
Gain on changes in fair value of derivatives embedded within convertible debt	$	24,455		$	19,409	$	18,935

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,
	2015			2014		2013
6.75% note	$	(5	)	$	3,212	$	5,075
6.75% exchange notes	—			8,990		9,625
3.875% convertible debentures	—			—		(1,417		)
7.5% convertible notes	15,555			5,296		5,652
5.5% convertible notes	8,905			1,911		—
Gain on changes in fair value of derivatives embedded within convertible debt	$	24,455		$	19,409	$	18,935

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, 2013	$	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
Issuance of 5.5% Note	—			—			—			—			82,775			82,775
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		)
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
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(889		)	—			—			—			—			(889		)
Loss (gain) from changes in fair value of embedded derivatives	5			—			—			(15,555		)	(8,905		)	(24,455		)
Balance at December 31, 2015	$	—		$	—		$	—		$	72,083		$	71,959		$	144,042

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,
	2015		2014		2013
Amortization of beneficial conversion feature:
6.75% note	$	—	$	5,317	$	5,157
6.75% exchange notes	—		8,386		7,294
3.875% convertible debentures	—		—		82
7.5% convertible notes	5,738		3,631		2,363
5.5% convertible notes	2,943		2,067		—
Interest expense associated with beneficial conversion feature	$	8,681	$	19,401	$	14,896

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, 2013	$	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 $107,530 of 6.75% Variable Interest Senior Convertible Exchange Notes due November 15, 2014	—			(3,989		)	—			—			—			(3,989		)
Conversion of $25,000 of 6.75% Variable Interest Senior Convertible Note due February 15, 2015	(7,898		)	—			—			—			—			(7,898		)
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
Amortization of embedded derivatives	—			—			—			(8,777		)	(9,752		)	(18,529		)
Amortization of beneficial conversion feature	—			—			—			(5,738		)	(2,943		)	(8,681		)
Balance at December 31, 2015	$	—		$	—		$	—		$	132,119		$	86,136		$	218,255

Fair Value of Notes Payable and Long-term Debt

The estimated fair value of the Company’s notes payable and long-term debt are as follows:



	December 31, 2015				December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes payable and long-term debt	$	895,168	$	1,297,875	$	913,351	$	1,313,711

Schedule of Maturities of Long-term Debt

Scheduled maturities of long-term debt are as follows:



	Principal		Unamortized Discount/ (Premium)			Net
Year Ending December 31:
2016	$	8,919	$	—		$	8,919
2017	2,254		—			2,254
2018	2,001		—			2,001
2019	231,160		132,119			99,041
2020	261,075		86,136			174,939
Thereafter	600,000		(8,014		)	608,014
Total	$	1,105,409	$	210,241		$	895,168