Commitments and Contingencies

9 Months Ended

Sep. 01, 2012

Commitments and Contingencies

Commitments and Contingencies

12.   Commitments and Contingencies

As of September 1, 2012, Griffin had committed purchase obligations of $1.6 million, principally for the development of its real estate assets and the purchase of plants and raw materials by Imperial.

On September 21, 2012, Griffin Land entered into a contract to purchase an approximate 49 acre parcel of undeveloped land in the Lehigh Valley of Pennsylvania for $7.2 million in cash, before closing costs. The land to be acquired, located in Hanover Township, is expected to support the development of two industrial buildings totaling at least 500,000 square feet, although there are no approvals currently in place for such development. Closing on this land purchase is subject to several conditions, including the satisfactory outcome of due diligence to be performed, and Griffin Land’s satisfaction that it expects to obtain approvals for its planned development for this land.  The closing is anticipated to take place in late 2012 or early 2013. There is no guarantee that this transaction will be completed under its current terms, or at all.

Griffin is involved, as a defendant, in various litigation matters arising in the ordinary course of business.  In the opinion of management, based on the advice of legal counsel, the ultimate liability, if any, with respect to these matters is not expected to be material, individually or in the aggregate, to Griffin’s consolidated financial position, results of operations or cash flows.