Stockholders' Equity

6 Months Ended

Jun. 01, 2013

Stockholders' Equity

Stockholders' Equity

10.  Stockholders’ Equity

Per Share Results

Basic and diluted per share results were based on the following:

	For the 13 Weeks Ended,						For the 26 Weeks Ended,
	June 1, 2013			June 2, 2012			June 1, 2013		June 2, 2012
Income (loss) as reported from continuing operations for computation of basic and diluted per share results, net of tax	$	(112	)	$	(412	)	$	1,198	$	(1,537	)
Income as reported from discontinued operation for computation of basic and diluted per share results, net of tax	—			—			—		1,647
Net income (loss)	$	(112	)	$	(412	)	$	1,198	$	110
Weighted average shares outstanding for computation of basic per share results	5,142,000			5,137,000			5,141,000		5,136,000
Incremental shares from assumed exercise of Griffin stock options (a)	—			—			6,000		—
Adjusted weighted average shares for computation of diluted per share results	5,142,000			5,137,000			5,147,000		5,136,000

(a) Incremental shares from the assumed exercise of Griffin stock options are not included in periods where the inclusion of such shares would be anti-dilutive.  Such assessment is based on income (loss) from continuing operations when net income includes discontinued operations.  The incremental shares from the assumed exercise of stock options in the thirteen weeks ended June 1, 2013 would have been 8,000.  The incremental shares from the assumed exercise of stock options in the thirteen and twenty-six weeks ended June 2, 2012 would have been 3,000 and 4,000, respectively.

Griffin Stock Option Plan

Stock options are granted by Griffin under the Griffin Land & Nurseries, Inc. 2009 Stock Option Plan (the “2009 Stock Option Plan”).  Options granted under the 2009 Stock Option Plan may be either incentive stock options or non-qualified stock options issued at fair market value on the date approved by Griffin’s Compensation Committee. Vesting of all of Griffin’s previously issued stock options is solely based upon service requirements and does not contain market or performance conditions.  Stock options issued will expire ten years from the grant date.  In accordance with the 2009 Stock Option Plan, stock options issued to non-employee directors upon their initial election to the board of directors are fully exercisable immediately upon the date of the option grant. Stock options issued to non-employee directors upon their reelection to the board of directors vest on the second anniversary from the date of grant. Stock options issued to employees vest in equal installments on the third, fourth and fifth anniversaries from the date of grant. None of the stock options outstanding at June 1, 2013 may be exercised as stock appreciation rights.

The following options were granted by Griffin under the 2009 Stock Option Plan to non-employee directors upon their re-election to Griffin’s Board of Directors:

	For the 26 Weeks Ended,
	June 1, 2013			June 2, 2012
	Number of Shares	Fair Value per Option at Grant Date		Number of Shares	Fair Value per Option at Grant Date
Non-employee directors	8,112	$	12.94	6,748	$	11.32

The fair values of all options granted were estimated as of the grant date using the Black-Scholes option-pricing model. Assumptions used in determining the fair value of the stock options granted in the 2013 and 2012 six month periods were as follows:

	For the 26 Weeks Ended,
	June 1, 2013			June 2, 2012
Expected volatility	40.3		%	41.1	%
Risk free interest rate	1.33		%	1.16	%
Expected option term (in years)	8.5			8.5
Annual dividend yield	$	0.20		—

Activity under the Griffin Stock Option Plan is summarized as follows:

	For the 26 Weeks Ended,
	June 1, 2013				June 2, 2012
Vested Options	Number of Shares		Weighted Avg. Exercise Price		Number of Shares		Weighted Avg. Exercise Price
Outstanding at beginning of period	80,451		$	29.95	54,075		$	27.08
Exercised	(6,776	)	$	11.81	(5,322	)	$	15.03
Vested	34,143		$	32.36	33,801		$	32.69
Outstanding at end of period	107,818		$	31.86	82,554		$	30.16

Range of Exercise Prices for Vested Options	Outstanding at June 1, 2013	Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life (in years)	Total Intrinsic Value
$23.00-$32.00	34,742	$	28.24	4.8	$	65
$32.00-$39.00	73,076	$	33.58	5.6	—
	107,818	$	31.86	5.3	$	65

	For the 26 Weeks Ended,
	June 1, 2013				June 2, 2012
Nonvested Options	Number of Shares		Weighted Avg. Exercise Price		Number of Shares		Weighted Avg. Exercise Price
Nonvested at beginning of period	163,390		$	29.84	190,443		$	30.56
Granted	8,112		$	29.58	6,748		$	23.70
Vested	(34,143	)	$	32.36	(33,801	)	$	32.69
Nonvested at end of period	137,359		$	29.20	163,390		$	29.84

Range of Exercise Prices for Nonvested Options	Outstanding at June 1, 2013	Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life (in years)	Total Intrinsic Value
$23.00-$30.00	117,360	$	28.53	7.9	$	146
$33.00-$35.00	19,999	$	33.07	5.6	—
	137,359	$	29.20	7.6	$	146

Number of option holders at June 1, 2013 18

Compensation expense and related tax benefits for stock options were as follows:

	For the 13 Weeks Ended,				For the 26 Weeks Ended,
	June 1, 2013		June 2, 2012		June 1, 2013		June 2, 2012
Compensation expense	$	152	$	166	$	267	$	304
Related tax benefit	$	28	$	31	$	57	$	66

As of June 1, 2013, the unrecognized compensation expense related to nonvested stock options that will be recognized during future periods is as follows:

Balance of Fiscal 2013	$	215
Fiscal 2014	$	265
Fiscal 2015	$	112
Fiscal 2016	$	12

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, net of tax, is comprised of the following:

	Unrealized			Unrealized gain			Actuarial gain
	loss on cash			on investment			on postretirement
	flow hedges			in Centaur Media			benefit plan		Total
Balance December 1, 2012	$	(2,011	)	$	1,054		$	236	$	(721	)
Before reclassfication	267			(672		)	—		(405		)
Amount reclassified	230			(332		)	—		(102		)
Net current period activity for other comprehensive loss	497			(1,004		)	—		(507		)
Balance June 1, 2013	$	(1,514	)	$	50		$	236	$	(1,228	)

Changes in accumulated other comprehensive income (loss) are as follows:

	For the 13 Weeks Ended,
	June 1, 2013									June 2, 2012
	Pre-Tax			Tax (Expense) Benefit			Net-of-Tax			Pre-Tax			Tax (Expense) Benefit			Net-of-Tax
Reclassification included in net income (loss):
Loss on cash flow hedges (interest expense)	$	191		$	(71	)	$	120		$	163		$	(61	)	$	102
Total reclassification included in net income (loss)	191			(71		)	120			163			(61		)	102
Mark to market adjustment on Centaur Media for the increase (decrease) in the foreign currency exchange rate	20			(7		)	13			(95		)	33			(62		)
Mark to market adjustment on Centaur Media for the decrease in fair value	(995		)	349			(646		)	(720		)	252			(468		)
Increase (decrease) in fair value of Griffin’s cash flow hedges	293			(109		)	184			(476		)	177			(299		)
Other comprehensive loss	$	(491	)	$	162		$	(329	)	$	(1,128	)	$	401		$	(727	)

	For the 26 Weeks Ended,
	June 1, 2013									June 2, 2012
	Pre-Tax			Tax (Expense) Benefit			Net-of-Tax			Pre-Tax			Tax (Expense) Benefit			Net-of-Tax
Reclassifications included in net income (loss):
Realized gain on sale of Centaur Media (gain on sale)	$	(509	)	$	177		$	(332	)	$	—		$	—		$	—
Loss on cash flow hedges (interest expense)	366			(136		)	230			329			(122		)	207
Total reclassifications included in net income (loss)	(143		)	41			(102		)	329			(122		)	207
Mark to market adjustment on Centaur Media for the decrease in the foreign currency exchange rate	(223		)	78			(145		)	(44		)	15			(29		)
Mark to market adjustment on Centaur Media for the decrease in fair value	(811		)	284			(527		)	(257		)	90			(167		)
Increase (decrease) in fair value of Griffin’s cash flow hedges	424			(157		)	267			(882		)	327			(555		)
Other comprehensive loss	$	(753	)	$	246		$	(507	)	$	(854	)	$	310		$	(544	)

Cash Dividend

Griffin did not declare a cash dividend in the 2013 or 2012 six month periods.  During the 2013 first quarter, Griffin paid $1,028 for the cash dividend declared in the 2012 fourth quarter.  During the 2012 first quarter, Griffin paid $513 for the cash dividend declared in the 2011 fourth quarter.