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

12 Months Ended

Dec. 31, 2021

Schedule of Notes Payable, Long-term Debt and Other Obligations

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


	December 31, 2021		December 31, 2020
Vector:
5.75% Senior Secured Notes due 2029	$	875,000	$	—
6.125% Senior Secured Notes due 2025	—		850,000
10.5% Senior Notes due 2026, net of unamortized discount of $2,647 and $3,040	552,353		551,960




Liggett:
Revolving credit facility	24		—

Equipment loans	64		89
Other	32		64
Total notes payable, long-term debt and other obligations	1,427,473		1,402,113
Less:
Debt issuance costs	(28,803)		(21,247)
Total notes payable, long-term debt and other obligations	1,398,670		1,380,866
Less:
Current maturities	(79)		(57)
Amount due after one year	$	1,398,591	$	1,380,809

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,
	2021		2020		2019



7.5% Convertible Notes	$	—	$	—	$	2,031
5.5% Convertible Notes	—		4,053		16,481
Interest expense associated with embedded derivatives	$	—	$	4,053	$	18,512

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,
	2021		2020		2019



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

Schedule of Convertible Debt

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, 2019	$	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,
	2021		2020		2019
Amortization of beneficial conversion feature:



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

The following table reconciles unamortized debt discount within convertible debt:


	7.5% Convertible Notes		5.5% Convertible Notes		Total
Balance at January 1, 2019	$	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, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value			Fair Value
Senior Notes	$	1,427,353	$	1,426,176	$	1,401,960		$	1,464,208

Liggett and other	120		124		153			161
Notes payable and long-term debt	$	1,427,473	$	1,426,300	$	1,402,113	(1)	$	1,464,369

_____________________________

(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:
2022	$	79	$	—	$	79
2023	33		—		33
2024	8		—		8
2025	—		—		—
2026	555,000		2,647		552,353
Thereafter	875,000		—		875,000
Total	$	1,430,120	$	2,647	$	1,427,473