Supplemental Financial Statement Information

9 Months Ended

Aug. 27, 2011

Supplemental Financial Statement Information

Supplemental Financial Statement Information

10.Supplemental Financial Statement Information

Gain on Insurance Recovery

In the 2011 nine month period, snow load from winter storms caused the collapse of some of Imperial’s hoop houses and some of the plants stored in the hoop houses to become unsaleable.  A charge of $300 is included in costs of landscape nursery sales in the 2011 nine month period to reserve for the book value of inventory that became unsaleable.  There was no charge to earnings related to the damage to the hoop houses because they were fully depreciated prior to fiscal 2011.  Initial insurance proceeds of $200, related to the hoop house damage, have been received and are reflected as a gain on insurance recovery on the 2011 nine month consolidated statement of operations.   Imperial continues to work with its insurance carrier to obtain additional recoveries for the losses incurred, and while Imperial believes that additional recoveries are likely to be received, they are not assured at this time.  Additional gain from insurance recoveries would be recorded when it becomes probable that such additional insurance proceeds will be received (see Note 7).

Supplemental Cash Flow Information

Decreases of $1,690 and $873, respectively, in the 2011 and 2010 nine month periods in Griffin’s Investment in Centaur Media reflect the mark to market adjustments of this investment and did not affect Griffin’s cash.

Included in accounts payable and accrued liabilities at August 27, 2011 and November 27, 2010 were $332 and $194, respectively, for additions to real estate held for sale or lease.  Accounts payable and accrued liabilities related to additions to real estate held for sale or lease increased by $138 in the 2011 nine month period and decreased by $124 in the 2010 nine month period.

As of August 27, 2011, included in Griffin’s accrued liabilities is a dividend payable of $513 reflecting a dividend on Griffin’s common stock declared prior to the end of the 2011 third quarter that was paid subsequent to the end of Griffin’s 2011 third quarter.  As of November 27, 2010, Griffin’s accrued liabilities included $512 for a dividend on Griffin’s common stock that was declared prior to the end of fiscal 2010 and paid in the 2011 first quarter.

Interest payments, net of capitalized interest, were $970 and $1,052 in the 2011 and 2010 third quarters, respectively, and $2,993 and $3,026 in the 2011 and 2010 nine month periods, respectively.

Income Taxes

Griffin’s effective income tax benefit rate was 37.7% in the 2011 nine month period as compared to 38.4% in the 2010 nine month period.  The effective tax benefit rate used in the 2011 nine month period is based on management’s projections for the balance of the year.  To the extent that actual results differ from current projections, the effective income tax rate may change.

Increases to deferred tax assets of $592 and $306, respectively, in the 2011 and 2010 nine month periods relate to the mark to market adjustment on Griffin’s investment in Centaur Media.  Increases to deferred tax assets of $325 and $397 in the 2011 and 2010 nine month periods, respectively, relate to the fair value adjustment of Griffin’s cash flow hedges.  These increases in deferred tax assets are reflected in Griffin’s total comprehensive loss for the 2011 and 2010 nine month periods.

As of August 27, 2011, Griffin’s consolidated balance sheet includes a net current deferred tax asset of $405 and a net noncurrent deferred tax asset of $4,000.  Although Griffin has incurred pretax losses for the fiscal years ended November 29, 2008, November 28, 2009 and November 27, 2010, management has concluded that a valuation allowance against those net deferred tax assets is not required, because management believes it is more likely than not that these deferred tax assets will be realized.

Griffin’s fiscal 2009 federal income tax return has been examined by the Internal Revenue Service and the return was accepted as filed.   Examinations of Griffin’s fiscal 2007, fiscal 2008 and fiscal 2009 New York state income tax returns and Griffin’s fiscal 2007 Connecticut state income tax return are currently being performed.

Postretirement Benefits

Griffin maintains a postretirement benefits program that provides principally health and life insurance benefits to certain of its retirees. The liability for postretirement benefits is included in other noncurrent liabilities on Griffin’s consolidated balance sheets. Griffin’s postretirement benefits program is unfunded, with benefits to be paid from Griffin’s general assets.  Griffin’s contributions to its postretirement benefits program were $1 and $2, respectively, in the 2011 and 2010 nine month periods with an expected contribution of $1 for the fiscal 2011 full year.  The components of Griffin’s postretirement benefits expense are immaterial for all periods presented.