Stockholders' Equity

6 Months Ended

May. 31, 2015

Stockholders' Equity

Stockholders' Equity

7.Stockholders’ Equity

Per Share Results

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

	For the Three Months Ended,						For the Six Months Ended,
	May 31, 2015			May 31, 2014			May 31, 2015			May 31, 2014
Loss from continuing operations for computation of basic and diluted per share results, net of tax	$	(234	)	$	(225	)	$	(942	)	$	(1,323	)
Income from discontinued operations for computation of basic and diluted per share results, net of tax	—			390			—			118
Net (loss) income	$	(234	)	$	165		$	(942	)	$	(1,205	)
Weighted average shares outstanding for computation of basic per share results	5,150,000			5,147,000			5,150,000			5,147,000
Incremental shares from assumed exercise of Griffin stock options (a)	—			—			—			—
Adjusted weighted average shares for computation of diluted per share results	5,150,000			5,147,000			5,150,000			5,147,000

(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 for the three months and six months ended May 31, 2015 would have been 23,000 and 19,000, respectively.  The incremental shares from the assumed exercise of stock options for the three months and six months ended May 31, 2014 would have been 12,000 and 13,000, respectively.

Griffin Stock Option Plan

Stock options are granted by Griffin under the Griffin Industrial Realty, 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 re-election 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 May 31, 2015 may be exercised as stock appreciation rights.

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

	For the Six Months Ended,
	May 31, 2015			May 31, 2014
	Number of Shares	Fair Value per Option at Grant Date		Number of Shares	Fair Value per Option at Grant Date
Non-employee directors	8,282	$	14.39	8,532	$	12.42

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 2015 and 2014 six month periods were as follows:

	For the Six Months Ended,
	May 31, 2015		May 31, 2014
Expected volatility	40.8	%	38.9	%
Risk free interest rate	2.0	%	2.2	%
Expected option term (in years)	8.5		8.5
Annual dividend yield	0.7	%	0.7	%

Activity under the 2009 Stock Option Plan is summarized as follows:

	For the Six Months Ended,
	May 31, 2015				May 31, 2014
	Number of Shares		Weighted Avg. Exercise Price		Number of Shares		Weighted Avg. Exercise Price
Outstanding at beginning of period	222,001		$	30.35	239,677		$	30.35
Granted	8,282		$	31.38	8,532		$	28.12
Exercised	(3,134	)	$	25.53	(3,208	)	$	24.94
Forfeited	—		$	—	(23,000	)	$	30.27
Outstanding at end of period	227,149		$	30.45	222,001		$	30.35

Range of Exercise Prices	Outstanding at May 31, 2015	Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life (in years)	Total Intrinsic Value
$23.00-$28.00	14,934	$	25.43	6.7	$	106
$28.00-$32.00	129,140	$	29.06	5.9	$	446
$32.00-$39.00	83,075	$	33.52	3.4	$	1
	227,149	$	30.45	5.0	$	553

Number of option holders at May 31, 2015 15

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

	For the Three Months Ended,				For the Six Months Ended,
	May 31, 2015		May 31, 2014		May 31, 2015		May 31, 2014
Compensation expense - continuing operations	$	69	$	60	$	162	$	213
Compensation expense - discontinued operations	—		—		—		(130		)
Net compensation expense	$	69	$	60	$	162	$	83
Related tax benefit - continuing operations	$	23	$	16	$	41	$	40
Related tax benefit - discontinued operations	—		—		—		—
Net related tax benefit	$	23	$	16	$	41	$	40

As of May 31, 2015, the unrecognized compensation expense related to nonvested stock options that will be recognized during future periods is as follows:

Balance of Fiscal 2015	$	82
Fiscal 2016	$	79
Fiscal 2017	$	19

Accumulated Other Comprehensive Loss

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

For the six months ended May 31, 2015:

				Unrealized gain
	Unrealized loss on			on investment in
	cash flow hedges			Centaur Media		Total
Balance November 30, 2014	$	(1,464	)	$	629	$	(835	)
Other comprehensive (loss) income before reclassfications	(458		)	291		(167		)
Amounts reclassified	368			—		368
Net activity for other comprehensive loss	(90		)	291		201
Balance May 31, 2015	$	(1,554	)	$	920	$	(634	)

For the six months ended May 31, 2014:

				Unrealized gain			Actuarial gain
	Unrealized loss on			on investment in			on postretirement
	cash flow hedges			Centaur Media			benefits program			Total
Balance November 30, 2013	$	(1,401	)	$	648		$	304		$	(449	)
Other comprehensive (loss) income before reclassifications	(332		)	327			—			(5		)
Amounts reclassified	317			(204		)	(304		)	(191		)
Net activity for other comprehensive loss	(15		)	123			(304		)	(196		)
Balance May 31, 2014	$	(1,416	)	$	771		$	—		$	(645	)

The components of other comprehensive income (loss) are as follows:

	For the Three Months Ended,
	May 31, 2015									May 31, 2014
	Pre-Tax			Tax (Expense) Benefit			Net-of-Tax			Pre-Tax			Tax (Expense) Benefit			Net-of-Tax
Reclassifications included in net income (loss):
Loss on cash flow hedges (interest expense)	$	303		$	(112	)	$	191		$	253		$	(93	)	$	160
Termination of postretirement benefits program ($283, net of tax to discontinued operations, $21, net of tax to general and administrative expense)	—			—			—			(485		)	181			(304		)
Total reclassifications included in net income (loss)	303			(112		)	191			(232		)	88			(144		)
Mark to market adjustment on Centaur Media for a (decrease) increase in the foreign currency exchange rate	(23		)	8			(15		)	1			(1		)	—
Mark to market adjustment on Centaur Media for an increase (decrease) in fair value	448			(157		)	291			(327		)	115			(212		)
Decrease in fair value adjustments on Griffin’s cash flow hedges	(209		)	77			(132		)	(349		)	128			(221		)
Total other changes in other comprehensive income (loss)	216			(72		)	144			(675		)	242			(433		)
Other comprehensive income (loss)	$	519		$	(184	)	$	335		$	(907	)	$	330		$	(577	)

	For the Six Months Ended,
	May 31, 2015									May 31, 2014
	Pre-Tax			Tax (Expense) Benefit			Net-of-Tax			Pre-Tax			Tax (Expense) Benefit			Net-of-Tax
Reclassifications included in net income (loss):
Loss on cash flow hedges (interest expense)	$	584		$	(216	)	$	368		$	503		$	(186	)	$	317
Termination of postretirement benefits program ($283, net of tax to discontinued operations, $21, net of tax to general and administrative expense)	—			—			—			(485		)	181			(304		)
Realized gain on sale of Centaur Media (gain on sale)	—			—			—			(321		)	117			(204		)
Total reclassifications included in net income (loss)	584			(216		)	368			(303		)	112			(191		)
Mark to market adjustment on Centaur Media for a (decrease) increase in the foreign currency exchange rate	(49		)	17			(32		)	62			(22		)	40
Mark to market adjustment on Centaur Media for an increase in fair value	498			(175		)	323			441			(154		)	287
Decrease in fair value adjustments on Griffin’s cash flow hedges	(727		)	269			(458		)	(526		)	194			(332		)
Total change in other comprehensive income (loss)	(278		)	111			(167		)	(23		)	18			(5		)
Other comprehensive income (loss)	$	306		$	(105	)	$	201		$	(326	)	$	130		$	(196	)

Cash Dividend

Griffin did not declare a cash dividend in the 2015 or 2014 six month periods. During the 2015 first quarter, Griffin paid $1,030 for the cash dividend declared in the 2014 fourth quarter. During the 2014 first quarter, Griffin paid $1,029 for the cash dividend declared in the 2013 fourth quarter.