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Notes Payable, Long-Term Debt and Other Obligations (Tables)
 12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Notes payable, long-term debt and other obligations Notes payable, long-term debt and other obligations consist of:

 
December 31, 2018
 
December 31, 2017
Vector:

 
 

6.125% Senior Secured Notes due 2025
$
850,000

 
$
850,000

10.5% Senior Notes due 2026
325,000

 
—

5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $29,465 and $53,687*
202,535

 
205,063

7.5% Variable Interest Senior Convertible Notes due 2019, net of unamortized discount of $3,359 and $69,253*
226,641

 
160,747

 
 
 
 
Liggett:
 
 
 
Revolving credit facility
28,381

 
31,614

Term loan under credit facility
2,409

 
2,704

Equipment loans
1,039

 
2,662

Other
30,440

 
752

Total notes payable, long-term debt and other obligations
1,666,445

 
1,253,542

Less:
 
 
 
Debt issuance costs
(23,614
)
 
(25,478
)
Total notes payable, long-term debt and other obligations
1,642,831

 
1,228,064

Less:
 

 
 

    Current maturities
(256,134
)
 
(33,820
)
Amount due after one year
$
1,386,697

 
$
1,194,244

_____________________________
*
The fair value of the derivatives embedded within the 5.5% Variable Interest Senior Convertible Debentures ($24,789 at December 31, 2018 and $45,249 at December 31, 2017, respectively) and the 7.5% Variable Interest Senior Convertible Debentures ($6,635 at December 31, 2018 and $31,164 at December 31, 2017, respectively) is separately classified as a derivative liability in the consolidated balance sheets.
Schedule of non-cash interest expense 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,
 
2018
 
2017
 
2016
7.5% Convertible Notes
$
39,845

 
$
23,720

 
$
14,294

5.5% Convertible Notes
15,924

 
13,490

 
11,438

Interest expense associated with embedded derivatives
$
55,769

 
$
37,210

 
$
25,732


A summary of non-cash changes in fair value of derivatives embedded within convertible debt is as follows:
 
Year Ended December 31,
 
2018
 
2017
 
2016
7.5% Convertible Notes
$
24,530

 
$
21,734

 
$
19,184

5.5% Convertible Notes
20,459

 
14,185

 
12,526

Gain on changes in fair value of derivatives embedded within convertible debt
$
44,989

 
$
35,919

 
$
31,710
Schedule of convertible debt 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,
 
2018
 
2017
 
2016
Amortization of beneficial conversion feature:
 

 
 

 
 

7.5% Convertible Notes
$
26,049

 
$
15,507

 
$
9,345

5.5% Convertible Notes
4,805

 
4,070

 
3,451

Interest expense associated with beneficial conversion feature
$
30,854

 
$
19,577

 
$
12,796


The following table reconciles unamortized debt discount within convertible debt:

 
7.5%
Convertible
Notes
 
5.5% Convertible Notes
 
Total
Balance at January 1, 2016
$
132,119

 
$
86,136

 
$
218,255

Amortization of embedded derivatives
(14,294
)
 
(11,438
)
 
(25,732
)
Amortization of beneficial conversion feature
(9,345
)
 
(3,451
)
 
(12,796
)
Balance at December 31, 2016
108,480

 
71,247

 
179,727

Amortization of embedded derivatives
(23,720
)
 
(13,490
)
 
(37,210
)
Amortization of beneficial conversion feature
(15,507
)
 
(4,070
)
 
(19,577
)
Balance at December 31, 2017
69,253

 
53,687

 
122,940

Partial redemption of 5.5% convertible notes
—

 
(3,493
)
 
(3,493
)
Amortization of embedded derivatives
(39,845
)
 
(15,924
)
 
(55,769
)
Amortization of beneficial conversion feature
(26,049
)
 
(4,805
)
 
(30,854
)
Balance at December 31, 2018
$
3,359

 
$
29,465

 
$
32,824


The following table reconciles the fair value of derivatives embedded within convertible debt:

 
7.5%
Convertible
Notes
 
5.5% Convertible Notes
 
Total
Balance at January 1, 2016
$
72,083

 
$
71,959

 
$
144,042

Gain from changes in fair value of embedded derivatives
(19,184
)
 
(12,526
)
 
(31,710
)
Balance at December 31, 2016
52,899

 
59,433

 
112,332

Gain from changes in fair value of embedded derivatives
(21,734
)
 
(14,185
)
 
(35,919
)
Balance at December 31, 2017
31,165

 
45,248

 
76,413

Gain from changes in fair value of embedded derivatives
(24,530
)
 
(20,459
)
 
(44,989
)
Balance at December 31, 2018
$
6,635

 
$
24,789

 
$
31,424


The conversion rates for all convertible debt outstanding are summarized below:
 
December 31, 2018
 
December 31, 2017
 
Conversion Price
 
Shares per $1,000
 
Conversion Price
 
Shares per $1,000
 
 
 
 
 
 
 
 
7.5% Convertible Notes
$
13.80

 
72.4376

 
$
13.80

 
72.4376

5.5% Convertible Notes
$
21.28

 
46.9869

 
$
21.28

 
46.9869
Schedule of 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, 2018
 
December 31, 2017
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Senior Notes
$
1,175,000

 
$
1,034,500

 
$
850,000

 
$
879,750

Variable Interest Senior Convertible Debt
429,176

 
468,704

 
365,810

 
662,169

Liggett and other
62,269

 
62,255

 
37,732

 
37,697

Notes payable and long-term debt
$
1,666,445

(1) 
$
1,565,459

 
$
1,253,542

(1) 
$
1,579,616

__________
(1) The carrying value does not include the carrying value of the embedded derivative. See Note 18.
Schedule of scheduled maturities Scheduled maturities of notes payable and long-term debt are as follows:

 
Principal
 
Unamortized
Discount/ (Premium)
 
Net
Year Ending December 31:
 

 
 
 
 

2019
$
259,791

 
$
3,359

 
$
256,432

2020
244,478

 
29,465

 
215,013

2021
10,000

 
—

 
10,000

2022
10,000

 
—

 
10,000

2023
—

 
—

 
—

Thereafter
1,175,000

 
—

 
1,175,000

Total
$
1,699,269

 
$
32,824

 
$
1,666,445