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

12 Months Ended

Dec. 31, 2020

Notes payable, long-term debt and other obligations

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


	December 31, 2020		December 31, 2019
Vector:

6.125% Senior Secured Notes due 2025	$	850,000	$	850,000
10.5% Senior Notes due 2026, net of unamortized discount of $3,040 and $3,392	551,960		551,608


5.5% Variable Interest Senior Convertible Debentures due 2020, net of unamortized discount of $0 and $5,276*	—		164,334

Liggett:
Revolving credit facility	—		34,952

Equipment loans	89		347
Other	25,484		30,146
Total notes payable, long-term debt and other obligations	1,427,533		1,631,387
Less:
Debt issuance costs	(21,247)		(24,902)
Total notes payable, long-term debt and other obligations	1,406,286		1,606,485
Less:
Current maturities	(12,557)		(209,269)
Amount due after one year	$	1,393,729	$	1,397,216

_____________________________

* The fair value of the derivatives embedded within the 5.5% Variable Interest Senior Convertible Debentures ($4,999 at December 31, 2019) 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 set forth in the following table:


	Year Ended December 31,
	2020		2019		2018



7.5% Convertible Notes	$	—	$	2,031	$	39,845
5.5% Convertible Notes	4,053		16,481		15,924
Interest expense associated with embedded derivatives	$	4,053	$	18,512	$	55,769

A summary of non-cash changes in fair value of derivatives embedded within convertible debt is set forth in the following table:


	Year Ended December 31,
	2020		2019		2018



7.5% Convertible Notes	$	—	$	6,635	$	24,530
5.5% Convertible Notes	4,999		19,790		20,459
Gain on changes in fair value of derivatives embedded within convertible debt	$	4,999	$	26,425	$	44,989

Schedule of convertible debt

The conversion rates for the convertible debt outstanding are summarized below:


	December 31, 2020			December 31, 2019
	Conversion Price		Shares per $1,000	Conversion Price		Shares per $1,000


5.5% Convertible Notes	$	—	—	$	20.27	49.3363

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, 2018	$	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

Gain from changes in fair value of embedded derivatives	(6,635)		(19,790)		(26,425)
Balance at December 31, 2019	—		4,999		4,999
Gain from changes in fair value of embedded derivatives	—		(4,999)		(4,999)
Balance at December 31, 2020	$	—	$	—	$	—

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 set forth in the following table:


	Year Ended December 31,
	2020		2019		2018
Amortization of beneficial conversion feature:



7.5% Convertible Notes	$	—	$	1,328	$	26,049
5.5% Convertible Notes	1,223		4,973		4,805
Interest expense associated with beneficial conversion feature	$	1,223	$	6,301	$	30,854

The following table reconciles unamortized debt discount within convertible debt:


	7.5% Convertible Notes		5.5% Convertible Notes		Total
Balance at January 1, 2018	$	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


Partial redemption of 5.5% convertible notes	—		(2,735)		(2,735)
Amortization of embedded derivatives	(2,031)		(16,481)		(18,512)
Amortization of beneficial conversion feature	(1,328)		(4,973)		(6,301)
Balance at December 31, 2019	—		5,276		5,276


Amortization of embedded derivatives	—		(4,053)		(4,053)
Amortization of beneficial conversion feature	—		(1,223)		(1,223)
Balance at December 31, 2020	$	—	$	—	$	—

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 were as follows:


	December 31, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value			Fair Value
Senior Notes	$	1,401,960	$	1,464,208	$	1,401,608		$	1,409,920
Variable Interest Senior Convertible Debt	—		—		164,334			176,289
Liggett and other	25,573		25,581		65,445			65,456
Notes payable and long-term debt	$	1,427,533	$	1,489,789	$	1,631,387	(1)	$	1,651,665

_____________________________

(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 were as follows:


	Principal		Unamortized Discount/ (Premium)		Net
Year Ending December 31:
2021	$	12,557	$	—	$	12,557
2022	12,954		—		12,954
2023	54		—		54
2024	8		—		8
2025	850,000		—		850,000
Thereafter	555,000		3,040		551,960
Total	$	1,430,573	$	3,040	$	1,427,533