Supplemental Financial Statement Information

3 Months Ended

Mar. 03, 2012

Supplemental Financial Statement Information

Supplemental Financial Statement Information

11.     Supplemental Financial Statement Information

Gain on Insurance Recovery

In the 2011 first quarter, snow load from winter storms resulted in the collapse of some of Imperial’s hoop houses and some of the plants stored in those hoop houses became unsaleable.  A charge of $550 was included in costs of landscape nursery sales in the 2011 first quarter to establish a reserve for the estimated book value of the 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, were received in the 2011 first quarter and were reflected as a gain on insurance recovery on the 2011 first quarter consolidated statement of operations.  The claim for the damaged hoop houses was settled in the 2011 fourth quarter when Griffin received additional proceeds of $279 (see Notes 5 and 8).

Supplemental Cash Flow Information

Increases of $514 in the 2012 first quarter and $597 in the 2011 first quarter 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 March 3, 2012 and December 3, 2011 were $1,507 and $542, respectively, for additions to real estate assets.  Accounts payable and accrued liabilities related to additions to real estate assets increased $965 in the 2012 first quarter and decreased $52 in the 2011 first quarter.

As of December 3, 2011, Griffin’s accrued liabilities included $513 for a dividend on Griffin’s common stock that was declared prior to the end of fiscal 2011 and paid in the 2012 first quarter.

Interest payments, net of capitalized interest, were $816 and $1,000 in the 2012 first quarter and 2011 first quarter, respectively.

Income Taxes

Griffin’s effective income tax benefit rate on continuing operations was 36.2% in the 2012 first quarter as compared to 37.5% in the 2011 first quarter.  The effective tax benefit rate used in the 2012 first quarter 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.

A decrease of $180 to deferred tax assets in the 2012 first quarter relates to the mark to market adjustment on Griffin’s investment in Centaur Media.  An increase to deferred tax assets of $89 in the 2012 first quarter relates to the fair value adjustment of Griffin’s cash flow hedges.  A decrease to deferred tax assets of $209 in the 2011 first quarter relates to the mark to market adjustment on Griffin’s investment in Centaur Media.  A decrease to deferred tax assets of $280 in the 2011 first quarter relates to the fair value adjustment of cash flow hedges.  These increases and decreases to deferred income taxes are included as charges and credits, respectively, in Griffin’s other comprehensive loss for the 2012 and 2011 first quarters.

As of March 3, 2012, Griffin’s consolidated balance sheet includes a net current deferred tax asset of $607 and a net noncurrent deferred tax asset of $2,578.  Although Griffin has incurred pretax losses for the fiscal years ended November 28, 2009, November 27, 2010 and December 3, 2011, management has concluded that a valuation allowance against those net deferred tax assets is not required.

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.