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

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Notes payable, long-term debt and other obligations

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

	September 30, 2017			December 31, 2016
Vector:
7.75% Senior Secured Notes due 2021, including premium of $13,954	$	—		$	848,954
6.125% Senior Secured Notes due 2025	850,000			—
7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $80,962 and $108,480*	149,038			121,520
5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $58,308 and $71,247*	200,442			187,503
Liggett:
Revolving credit facility	6,034			37,163
Term loan under credit facility	2,778			2,999
Equipment loans	3,070			4,519
Other	951			591
Notes payable, long-term debt and other obligations	1,212,313			1,203,249
Less:
Debt issuance costs	(27,971		)	(30,798		)
Total notes payable, long-term debt and other obligations	1,184,342			1,172,451
Less:
Current maturities	(8,432		)	(39,508		)
Amount due after one year	$	1,175,910		$	1,132,943

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* The fair value of the derivatives embedded within the 7.5% Variable Interest Senior Convertible Notes ($36,883 at September 30, 2017 and $52,899 at December 31, 2016, respectively) and the 5.5% Variable Interest Senior Convertible Debentures ($49,307 at September 30, 2017 and $59,433 at December 31, 2016, respectively), is separately classified as a derivative liability in the condensed consolidated balance sheets.

Schedule of conversion rates for all convertible debt outstanding

The conversion rates for all convertible debt outstanding as of September 30, 2017 and December 31, 2016, are summarized below:

	September 30, 2017			December 31, 2016
	Conversion Price		Shares per $1,000	Conversion Price		Shares per $1,000
7.5% Variable Interest Senior Convertible Notes due 2019	$	14.50	68.9882	$	14.50	68.9882
5.5% Variable Interest Senior Convertible Debentures due 2020	$	22.35	44.7495	$	22.35	44.7495

Schedule of non-cash interest expense - Vector

Non-Cash Interest Expense and Loss on Extinguishment of Debt - Vector:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017			2016
Amortization of debt discount, net	$	14,978	$	9,450	$	40,240		$	26,059
Amortization of debt issuance costs	2,393		1,650		6,626			4,220
Loss on extinguishment of 7.75% Senior Secured Notes	—		—		1,754		(1)	—
	$	17,371	$	11,100	$	48,620		$	30,279

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⁽¹⁾ The non-cash loss on extinguishment of the 7.75% Senior Secured Notes is a component of the $34,110 loss on the extinguishment of debt.

Schedule of fair value of notes payable and long-term debt

Fair Value of Notes Payable and Long-Term Debt:

	September 30, 2017					December 31, 2016
	Carrying			Fair		Carrying			Fair
	Value			Value		Value			Value
Notes payable and long-term debt	$	1,212,313	(1)	$	1,526,683	$	1,203,249	(1)	$	1,570,732

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⁽¹⁾ The carrying value does not include the carrying value of the embedded derivative. See Note 10.