7. Supplemental Financial Statement Information

Investments

As of August 31, 2019 and November 30, 2018, Griffin held $9,011 and $17,000, respectively, of repurchase agreements accounted for as held-to-maturity securities under ASC 320 and classified as short-term investments on its consolidated balance sheet. The repurchase agreements are with Webster Bank and are collateralized by securities issued by the U.S. government or its sponsored agencies. The repurchase agreements are carried at their resell amounts, which approximates fair value due to their short-term nature. As of August 31, 2019, Griffin’s repurchase agreements had a weighted average maturity of approximately 55 days with no maturities longer than six months.

Other Assets

Griffin's other assets are comprised of the following:


	Aug. 31, 2019		Nov. 30, 2018
Deferred rent receivable	$	5,846	$	5,602
Prepaid expenses		4,664		2,780
Deferred leasing costs, net		4,502		4,355
Sale proceeds held in escrow		2,217		—
Lease receivables from tenants		1,275		407
Intangible assets, net		1,177		1,399
Deposits		892		1,072
Mortgage escrows		286		452
Registration statement costs		281		281
Furniture, fixtures and equipment, net		206		245
Deferred financing costs related to the Webster Credit Line		54		33
Interest rate swap assets		6		3,157
Other		309		265
Total other assets	$	21,715	$	20,048

Accounts Payable and Accrued Liabilities

Griffin's accounts payable and accrued liabilities are comprised of the following:


	Aug. 31, 2019		Nov. 30, 2018
Accrued construction costs and retainage	$	2,315	$	832
Accrued interest payable		551		555
Accrued lease commissions		491		136
Accrued salaries, wages and other compensation		483		931
Trade payables		352		380
Other		624		499
Total accounts payable and accrued liabilities	$	4,816	$	3,333

Other Liabilities

Griffin's other liabilities are comprised of the following:


	Aug. 31, 2019		Nov. 30, 2018
Interest rate swap liabilities	$	5,736	$	56
Deferred compensation plan		5,382		5,145
Prepaid rent from tenants		1,357		1,134
Security deposits of tenants		547		533
Conditional asset retirement obligations		171		171
Land sale deposits		—		260
Other		78		79
Total other liabilities	$	13,271	$	7,378

Supplemental Cash Flow Information

In the 2019 nine month period, Griffin received 22,390 shares of its Common Stock in connection with the exercise of stock options as consideration for the exercise price and for reimbursement of income tax withholdings related to those stock option exercises. The shares received were recorded as treasury stock which resulted in an increase in treasury stock of $846 and did not affect Griffin’s cash.

In the 2018 nine month period, Griffin received 30,039 shares of its Common Stock in connection with the exercise of stock options as consideration for the exercise price and for reimbursement of income tax withholdings related to those stock option exercises. The shares received were recorded as treasury stock, which resulted in an increase in treasury stock of $1,189, and did not affect Griffin’s cash.

Accounts payable and accrued liabilities related to additions to real estate assets increased by $1,483 and $1,461 in the 2019 nine month period and 2018 nine month period, respectively.

Interest payments were as follows:


For the Three Months Ended					For the Nine Months Ended
Aug. 31, 2019		Aug. 31, 2018		Aug. 31, 2019		Aug. 31, 2018
$	1,609	$	1,545	$	4,828	$	4,474

Included in deferred leasing costs and other on the Consolidated Statement of Cash Flows for the 2019 nine month period are net proceeds of $126 from an insurance recovery.

Income Taxes

Griffin’s income tax provision was $689 in the 2019 nine month period as compared to $733 in the 2018 nine month period. The 2019 nine month period income tax provision included: (a) a charge of $1,621 related to the 2019 nine month period pretax income of $6,939, reflecting an effective tax rate of 23.4%; partially offset by (b) a benefit of $873 for the partial reduction of the valuation allowance on deferred tax assets related primarily to net operating loss carryforwards in Connecticut; and (c) an income tax benefit of $59 for the exercise of stock options. On June 26, 2019, Connecticut enacted legislation phasing out its capital based tax over a four-year period beginning January 1, 2021. Griffin historically has paid the Connecticut capital based tax rather than the corporation income tax, because the capital based tax was the higher amount. In light of the new tax law, management evaluated the recoverability of its Connecticut deferred tax assets and determined that, based on projected future operating results and the phase-out of the capital based tax, the valuation allowance against its Connecticut deferred tax assets should be reduced.

The income tax provision in the 2018 nine month period included a charge of $1,001 for the re-measurement of Griffin’s deferred tax assets and liabilities as a result of the reduction in the U.S. federal corporate statutory rate from 35% to 21% under the TCJA, which was enacted on December 22, 2017 and became effective for Griffin in the 2018 first quarter. As Griffin had net deferred tax assets when the TCJA became effective for Griffin, the re-measurement of its deferred tax assets and liabilities resulted in the charge that is included in Griffin’s 2018 nine month period income tax provision. Partially offsetting the charge for the re-measurement of deferred tax assets and liabilities in the 2018 nine month period was an income tax benefit of $148 based on the 2018 nine month period pretax loss of $781, reflecting an effective tax rate of 19.0%, and an income tax benefit of $120 for the exercise of stock options.

Griffin’s federal income tax returns for fiscal 2016, fiscal 2017 and fiscal 2018 are open to examination by the Internal Revenue Service.