Supplemental Financial Statement Information

9 Months Ended

Aug. 31, 2020

Supplemental Financial Statement Information

Supplemental Financial Statement Information

9.    Supplemental Financial Statement Information

Short-Term Investments

At August 31, 2020, Griffin did not have any short-term investments. At November 30, 2019, Griffin’s short-term investments of $1,011 consisted of repurchase agreements accounted for as held-to-maturity securities under ASC 320 on its consolidated balance sheet. The repurchase agreements were with Webster Bank and were collateralized by securities issued by the United States Government or its sponsored agencies. The repurchase agreements were carried at their resell amounts, which approximated fair value due to their short-term nature.

Other Assets

Griffin's other assets are comprised of the following:

	Aug. 31, 2020		Nov. 30, 2019
Deferred rent receivable	$	6,284	$	5,740
Deferred leasing costs, net		4,964		4,468
Prepaid expenses		4,868		2,926
Intangible assets, net		2,308		1,907
Accounts receivable (primarily leases)		2,184		904
Right-of-use assets		744		—
Mortgage escrows		293		515
Registration statement costs		281		281
Furniture, fixtures and equipment, net		198		193
Deposits		150		234
Deferred financing costs related to revolving lines of credit		146		256
Other		689		154
Total other assets	$	23,109	$	17,578

Accounts Payable and Accrued Liabilities

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

	Aug. 31, 2020		Nov. 30, 2019
Trade payables	$	1,248	$	295
Accrued construction costs and retainage		628		1,849
Accrued interest payable		610		568
Accrued salaries, wages and other compensation		562		863
Accrued lease commissions		281		223
Other		779		520
Total accounts payable and accrued liabilities	$	4,108	$	4,318

Other Liabilities

Griffin's other liabilities are comprised of the following:

	Aug. 31, 2020		Nov. 30, 2019
Interest rate swap liabilities	$	9,952	$	4,052
Warrant liability		5,410		—
Deferred compensation plan		3,899		5,593
Contingent value rights liability		1,261		—
Prepaid rent from tenants		1,253		1,013
Lease liabilities		775		—
Intangible liability, net		733		—
Security deposits of tenants		691		538
Conditional asset retirement obligations		171		171
Other		103		142
Total other liabilities	$	24,248	$	11,509

Supplemental Cash Flow Information

Accounts payable and accrued liabilities related to additions to real estate assets decreased by $1,221 in the 2020 nine month period and increased by $1,483 in the 2019 nine month period.

Griffin maintains a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for certain of its employees. In the 2020 nine month period, the liability for the Deferred Compensation Plan was reduced by $1,927 for a payment made to Frederick M. Danziger, Griffin’s former Executive Chairman, as a result of his retirement in fiscal 2019.

In the 2020 nine month period, Griffin received 20,601 shares of its Common Stock in connection with the exercise of stock options as consideration for the exercise price related to those stock options. The shares received were recorded as treasury stock, which resulted in an increase in treasury stock of $1,079, and did not affect Griffin’s cash.

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.

Interest payments were as follows:

For the Three Months Ended				For the Nine Months Ended
Aug. 31, 2020		Aug. 31, 2019		Aug. 31, 2020		Aug. 31, 2019
$	1,750	$	1,609	$	5,183	$	4,828

Income Taxes

Griffin’s income tax benefit was $562 in the 2020 nine month period as compared to an income tax provision of $689 in the 2019 nine month period. The 2020 nine month period income tax benefit included a benefit of $368, adjusted for permanent differences, related to the 2020 nine month period pretax loss of $2,216, reflecting an effective tax rate of 16.6% and an income tax benefit of $194 for the exercise of stock options.

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. 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 effective tax rate in the 2020 nine month period is based on management’s projections of pretax results and permanent differences for the balance of the year. To the extent that actual results differ from current projections, the effective income tax rate may change.

Griffin’s federal income tax returns for fiscal 2017, fiscal 2018 and fiscal 2019 are open to examination by the Internal Revenue Service.