Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Contingencies [Abstract]

Cases Pending by State

The following table lists the number of Individual Actions, by state, that are pending against Liggett or the Company as of September 30, 2012:

State	Number of Cases
Florida	47
New York	8
Louisiana	3
Maryland	3
West Virginia	2
Missouri	1
Ohio	1

Schedule of Judgments Entered

As of September 30, 2012 the following Engle progeny cases have resulted in judgments against Liggett:

Date	Case Name	County	Net Compensatory Damages	Punitive Damages	Status
June 2002	Lukacs v. R.J. Reynolds	Miami-Dade	$12,418	None	Affirmed on appeal by the Third District Court of Appeal. Judgment has been satisfied and the case is concluded.
August 2009	Campbell v. R.J. Reynolds	Escambia	$156	None	Affirmed on appeal by the First District Court of Appeal. Defendants filed a motion with the District Court of Appeal for certification to the Florida Supreme Court, which was denied on May 13, 2011. Defendants sought review by the US Supreme Court, which was denied in March 2012. In April 2012, the judgment was satisfied and, except for an appeal regarding calculation of interest, the case is concluded.
March 2010	Douglas v. R.J. Reynolds	Hillsborough	$1,350	None	Affirmed on appeal by the Second District Court of Appeal. The court certified the question of the constitutionality of the Engle findings as a question of great public importance. The Florida Supreme Court agreed to review the case. Oral argument occurred on September 6, 2012.
April 2010	Clay v. R.J. Reynolds	Escambia	$349	$1,000	Affirmed on appeal by the First District Court of Appeal on January 25, 2012. Defendants motion for rehearing was denied. Defendants filed a motion to recall the mandate, which was also denied. Defendants are seeking review by the US Supreme Court.
April 2010	Putney v. R.J. Reynolds	Broward	$3,008	None	On appeal to the Fourth District Court of Appeal. Oral argument occurred on September 27, 2012. A decision is pending.
April 2011	Tullo v. R.J. Reynolds	Palm Beach	$225	None	On appeal to the Fourth District Court of Appeal.
January 2012	Ward v. R.J. Reynolds	Escambia	$1	None	A joint and several judgment was entered for $487 against Liggett and RJR. On appeal to the First District Court of Appeal.
May 2012	Calloway v. R.J. Reynolds	Broward	$1,947	$7,600	Post trial motions were denied. A joint and several judgment was entered for $16,100 against all defendants. On appeal to the Fourth District Court of Appeal.

Schedule of Loss Contingencies

The activity in the company's accruals for tobacco litigation for the nine months ended September 30, 2012 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 at January 1, 2012	$	51,174		$	1,551		$	52,725		$	49,338	$	1,600		$	50,938
Expenses	103,682			214			103,896			—		—			—
Change in MSA obligations capitalized as inventory	350			—			350			—		—			—
Payments	(50,094		)	(684		)	(50,778		)	—		—			—
Reclassification to non-current liabilities	(905		)	224			(681		)	905		(224		)	681
Interest on withholding	—			31			31			1,779		433			2,212
Balance at September 30, 2012	$	104,207		$	1,336		$	105,543		$	52,022	$	1,809		$	53,831

The activity in the company's accruals for tobacco litigation for the nine months ended September 30, 2011 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 at January 1, 2011	$	43,888		$	4,183		$	48,071		$	30,205	$	—	$	30,205
Expenses	114,783			444			115,227			—		—		—
Change in MSA obligations capitalized as inventory	479			—			479			—		—		—
Payments	(26,758		)	(1,754		)	(28,512		)	—		—		—
Reclassification to non-current liabilities	(17,667		)	—			(17,667		)	17,667		—		17,667
Interest on withholding	—			70			70			885		—		885
Balance at September 30, 2011	$	114,725		$	2,943		$	117,668		$	48,757	$	—	$	48,757