59440--3/1/2010--VECTOR_GROUP

related topics

{product, liability, claim}

{debt, indebtedness, cash}

{competitive, industry, competition}

{condition, economic, financial}

{control, financial, internal}

{personnel, key, retain}

{tax, income, asset}

{stock, price, operating}

{loan, real, estate}

{stock, price, share}

We are a holding company and depend on cash payments from our subsidiaries, which are subject to contractual and other restrictions, in order to service our debt and to pay dividends on our common stock. Our 11% senior secured notes contain restrictive covenants that limit our operating flexibility. Liggett faces intense competition in the domestic tobacco industry. Liggett s business is highly dependent on the discount cigarette segment. Liggett s market share is susceptible to decline. The domestic cigarette industry has experienced declining unit sales in recent periods. Liggett s cigarettes are subject to substantial and increasing regulation and taxation, which has a negative effect on revenue and profitability. The newly enacted Family Smoking Prevention and Tobacco Control Act may adversely affect our sales and operating profit. Litigation will continue to harm the tobacco industry. Individual tobacco-related cases have increased as a result of the Florida Supreme Court s ruling in Engle. Regulation and legislation may negatively impact sales of tobacco products and our financial condition. Liggett may be adversely affected by the 2004 legislation to eliminate the federal tobacco quota system. Excise tax increases adversely affect cigarette sales. Liggett may have additional payment obligations under the Master Settlement Agreement and its other settlement agreements with the states. Liggett may have additional payment obligations under its state settlements Vector Tobacco is subject to risks inherent in new product development initiatives. New Valley is subject to risks relating to the industries in which it operates. Potential new investments we may make are unidentified and may not succeed. We depend on our key personnel. We are exposed to risks from legislation requiring companies to evaluate their internal control over financial reporting. The price of our common stock may fluctuate significantly.

Full 10-K form ▸

59440--3/1/2010--VECTOR_GROUP_LTD