Supplemental Financial Statement Information

12 Months Ended

Nov. 30, 2020

Supplemental Financial Statement Information

Supplemental Financial Statement Information

10. Supplemental Financial Statement Information

Investments - Held-to-Maturity Securities

At November 30, 2020, INDUS did not have any short-term investments. At November 30, 2019, INDUS’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

INDUS's other assets are comprised of the following:

	Nov. 30, 2020		Nov. 30, 2019
Deferred rent receivable	$	6,610	$	5,740
Deferred leasing costs, net		5,453		4,468
Prepaid expenses		3,206		2,926
Intangible assets, net		2,170		1,907
Proceeds from sales of real estate assets held in escrow		1,993		—
Deposits		1,078		234
Right-of-use assets		716		—
Accounts receivable (primarily leases)		499		904
Mortgage escrows		491		515
Registration statement costs		281		281
Furniture, fixtures and equipment, net		183		193
Deferred financing costs related to revolving lines of credit		180		256
Other		285		154
Total other assets	$	23,145	$	17,578

INDUS’s intangible assets relate to the acquisition of several industrial/logistics buildings and consist of the values of in-place leases and the associated relationships with tenants. Intangible assets are shown net of amortization of $2,156 and $1,578 as of November 30, 2020 and November 30, 2019, respectively.

Amortization expense of intangible assets is as follows:

	For the Fiscal Years Ended
	Nov. 30, 2020		Nov. 30, 2019		Nov. 30, 2018
Amortization expense	$	578	$	307	$	296

Estimated amortization expense of intangible assets over each of the next five fiscal years is:

2021	$	535
2022		377
2023		331
2024		331
2025		248

Deferred leasing costs, net, reflected accumulated amortization of $7,359 and $6,699 as of November 30, 2020 and November 30, 2019, respectively. Amortization expense related to deferred leasing costs in fiscal 2020, fiscal 2019 and fiscal 2018 was $1,074, $998 and $1,159, respectively. Furniture, fixtures and equipment, net, reflected accumulated depreciation of $1,065 and $992 as of November 30, 2020 and November 30, 2019, respectively. Total depreciation expense related to furniture, fixtures and equipment in fiscal 2020, fiscal 2019 and fiscal 2018 was $82, $80 and $96, respectively.

Accounts Payable and Accrued Liabilities

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

	Nov. 30, 2020		Nov. 30, 2019
Accrued salaries, wages and other compensation	$	1,130	$	863
Trade payables		914		295
Accrued interest payable		584		568
Accrued construction costs and retainage		439		1,849
Accrued lease commissions		269		223
Other		756		520
Total accounts payable and accrued liabilities	$	4,092	$	4,318

Other Liabilities

INDUS's other liabilities are comprised of the following:

	Nov. 30, 2020		Nov. 30, 2019
Interest rate swap liabilities	$	8,962	$	4,052
Deferred compensation plan		4,170		5,593
Prepaid rent from tenants		1,435		1,013
Lease liabilities		748		—
Intangible liability, net		705		—
Security deposits of tenants		690		538
Contingent value rights liability		681		—
Conditional asset retirement obligations		161		171
Other		100		142
Total other liabilities	$	17,652	$	11,509

Supplemental Cash Flow Information

INDUS maintains a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for certain of its employees (see below). In fiscal 2020, the liability for the Deferred Compensation Plan was reduced by $1,927 for a payment made to Frederick M. Danziger, INDUS’s former Executive Chairman, as a result of his retirement in fiscal 2019. Noncash expense related to the Deferred Compensation Plan in fiscal 2020, fiscal 2019 and fiscal 2018 was $469, $376 and $23, respectively.

In fiscal 2020, fiscal 2019 and fiscal 2018, INDUS received 24,893, 22,390 and 30,039 shares, respectively, 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 increases in treasury stock of $1,358, $846 and $1,189 in fiscal 2020, fiscal 2019 and fiscal 2018, respectively, and did not affect the Company’s cash.

Accounts payable and accrued liabilities related to additions to real estate assets decreased by $1,410 in fiscal 2020 and increased by $1,017 in fiscal 2019.

INDUS received a tax refund in fiscal 2020 of $202 related to alternative minimum taxes paid in prior years. The Company did not receive any income tax refunds in fiscal 2019 or fiscal 2018. Interest payments in fiscal 2020, fiscal 2019 and fiscal 2018 were $6,935, $6,402 and $6,041, respectively, including capitalized interest of $114, $351 and $352 in fiscal 2020, fiscal 2019 and fiscal 2018, respectively.

Savings Plan

INDUS maintains the INDUS Realty Trust, Inc. 401(k) Savings Plan (the “INDUS Savings Plan”) for its employees, a defined contribution plan whereby INDUS matches 60% of each employee’s contribution, up to a maximum of 5% of base salary. The Company’s contributions to the INDUS Savings Plan in fiscal 2020, fiscal 2019 and fiscal 2018 were $69, $68 and $65, respectively.

Deferred Compensation Plan

The Company maintains the “Deferred Compensation Plan” for certain of its employees who, due to IRC regulations, cannot take full advantage of the INDUS Savings Plan. The Company’s liability under its Deferred Compensation Plan at November 30, 2020 and 2019 was $4,170 and $5,593, respectively. These amounts are included in other liabilities on INDUS’s consolidated balance sheets. The expense for the Company’s matching benefit to the Deferred Compensation Plan in fiscal 2020, fiscal 2019 and fiscal 2018 was $11, $11 and $12, respectively. In fiscal 2020, the liability for the Deferred Compensation Plan was reduced by $1,927 (see above) for payment made to INDUS’s former Executive Chairman upon his retirement in fiscal 2019.

The Deferred Compensation Plan is unfunded, with benefits to be paid from INDUS’s assets. The liability for the Deferred Compensation Plan reflects the amounts withheld from employees, the Company’s matching benefit and any gains or losses on participant account balances based on the assumed investment of amounts credited to participants’ accounts in certain mutual funds. Participant balances are tracked and any gain or loss is determined based on the performance of the mutual funds as selected by the participants and included in general and administrative expenses on INDUS’s consolidated statements of operations.