Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of contingencies

The activity in the Company’s accruals for the MSA and tobacco litigation for the nine months ended September 30, 2018 was 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 as of January 1, 2018	$	12,385		$	260		$	12,645		$	21,479		$	19,840		$	41,319
Expenses	127,510			575			128,085			—			—			—
NPM Settlement adjustment	(595		)	—			(595		)	(5,703		)	—			(5,703		)
Change in MSA obligations capitalized as inventory	605			—			605			—			—			—
Payments	(9,463		)	(825		)	(10,288		)	(40		)	—			(40		)
Reclassification to/(from) non-current liabilities	(647		)	218			(429		)	647			(218		)	429
Interest on withholding	—			26			26			—			1,602			1,602
Balance as of September 30, 2018	$	129,795		$	254		$	130,049		$	16,383		$	21,224		$	37,607

The activity in the Company’s accruals for the MSA and tobacco litigation for the nine months ended September 30, 2017 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 as of January 1, 2017	$	16,192		$	3,659		$	19,851		$	22,257		$	27,513		$	49,770
Expenses	112,026			5,766			117,792			—						—
NPM Settlement adjustment	(1,793		)	—			(1,793		)	(928		)	—			(928		)
Change in MSA obligations capitalized as inventory	459			—			459			—			—			—
Payments	(14,296		)	(9,472		)	(23,768		)	—			—			—
Reclassification to/(from) non-current liabilities	(150		)	6,200			6,050			150			(6,200		)	(6,050		)
Interest on withholding	—			243			243			—			1,907			1,907
Balance as of September 30, 2017	$	112,438		$	6,396		$	118,834		$	21,479		$	23,220		$	44,699

The following table lists the number of Individual Actions by state:

State	Number of Cases
Florida	20
Illinois	4
New York	3
Louisiana	2
West Virginia	2
Ohio	1

As of September 30, 2018, the following Engle progeny cases have resulted in judgments against Liggett:

Date	Case Name	County	Liggett Compensatory Damages (as adjusted) (1)	Liggett Punitive Damages	Status (2)
June 2002	Lukacs v. R.J. Reynolds	Miami-Dade	$12,418	$—	Liggett satisfied the judgment and the case is concluded.
August 2009	Campbell v. R.J. Reynolds	Escambia	156	—	Liggett satisfied the judgment and the case is concluded.
March 2010	Douglas v. R.J. Reynolds	Hillsborough	1,350	—	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	17	—	Liggett settled this matter in July 2018 and this case is now concluded.
April 2011	Tullo v. R.J. Reynolds	Palm Beach	225	—	Liggett satisfied the judgment and the case is concluded.
January 2012	Ward v. R.J. Reynolds	Escambia	1	—	Liggett satisfied the judgment and the case is concluded.

Date	Case Name	County	Liggett Compensatory Damages (as adjusted) (1)	Liggett Punitive Damages	Status (2)
May 2012	Calloway v. R.J. Reynolds	Broward	—	—	A joint and several judgment for $16,100 was entered against R.J. Reynolds, Philip Morris, Lorillard and Liggett. In September 2016, the Fourth District Court of Appeal reversed the judgment in its entirety and remanded the case for a new trial. This case was settled in December 2016 as part of Engle Progeny Settlement II and the case is concluded as to Liggett.
December 2012	Buchanan v. R.J. Reynolds	Leon	2,750	—	Liggett satisfied the judgment and the case is concluded.
May 2013	D. Cohen v. R.J. Reynolds	Palm Beach	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II and the case is concluded as to Liggett.
August 2013	Rizzuto v. R.J. Reynolds	Hernando	3,479	—	Liggett settled its portion of the judgment for $1,500 and the case is concluded as to Liggett.
August 2014	Irimi v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II and the case is concluded as to Liggett.
October 2014	Lambert v. R.J. Reynolds	Pinellas	3,600	9,500	Liggett satisfied the judgment and the case is concluded.
November 2014	Boatright v. R.J. Reynolds	Polk	—	300	In November 2014, the jury awarded compensatory damages in the amount of $15,000 with 15% fault apportioned to plaintiff and 85% to Philip Morris.  A joint and several judgment was entered in the amount of $12,750 on the compensatory damages. Judgment was also entered against Liggett for $300 in punitive damages. The Second District Court of Appeal reversed the trial court's decision to reduce the judgment by plaintiff's assessed fault and affirmed as to all other issues in that appeal. Defendants filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. In June 2018, the court declined to exercise jurisdiction.
					Any potential liability as a result of the pending appeal is included in the amount Liggett paid under Engle Progeny Settlement II.
June 2015	Caprio v. R.J. Reynolds	Broward	—	—	This case was settled in December 2016 as part of Engle Progeny Settlement II and the case is concluded as to Liggett. Defendants have sought an extension of time to seek review from the United States Supreme Court.
March 2017	Santoro v. R.J. Reynolds	Broward	160	—	In April 2017, the trial court entered a joint and several judgment against R.J. Reynolds, Philip Morris and Liggett for $1,027, for compensatory damages. Judgment was also entered against Liggett for $15 in punitive damages. A hearing on post trial motions occurred in October 2017. In December 2017, the court granted the motion to set aside the verdict as to all claims other than conspiracy. Defendants moved for rehearing with respect to that claim and plaintiff moved for entry of an amended final judgment to increase plaintiff’s recovery by the percentage of decedent’s fault in light of the Schoeff decision. The court denied defendants' remaining post trial motions and the motion for rehearing and granted, in part, plaintiff’s motion to amend the final judgment. The parties agreed that plaintiff is not entitled to punitive damages since the trial court vacated that portion of the verdict in which punitive damages were awarded. A joint and several amended final judgment in the amount of $1,605 was entered by the court in May 2018. Defendants appealed.
Total Damages Awarded:			24,505	10,800
Amounts accrued, paid or compromised:			(24,345)	(10,800)
Damages remaining on Appeal:			$160	$0
(1) Compensatory damages are adjusted to reflect the jury's allocation of comparative fault and only include Liggett's jury allocated share, regardless of whether a judgment was joint and several. The amounts listed above do not include attorneys' fees or statutory interest.
(2) See Exhibit 99.1 for a more complete description of the cases currently on appeal.