Retirement Benefits

12 Months Ended

Dec. 01, 2012

Retirement Benefits

Retirement Benefits

13. Retirement Benefits

• Savings Plan

        Griffin maintains the Griffin Land & Nurseries, Inc. 401(k) Savings Plan (the "Griffin Savings Plan") for its employees, a defined contribution plan whereby Griffin matches 60% of each employee's contribution, up to a maximum of 5% of base salary. Griffin's contributions to the Griffin Savings Plan in fiscal 2012, fiscal 2011 and fiscal 2010 were $139, $146 and $132, respectively.

• Deferred Compensation Plan

        Griffin maintains a non-qualified deferred compensation plan (the "Deferred Compensation Plan") for certain of its employees who, due to Internal Revenue Service guidelines, cannot take full advantage of the Griffin Savings Plan. Griffin's liability under its Deferred Compensation Plan at December 1, 2012 and December 3, 2011 was $2,571 and $2,165, respectively. These amounts are included in other noncurrent liabilities on Griffin's consolidated balance sheets. The expense for Griffin's matching benefit to the Deferred Compensation Plan in fiscal 2012, fiscal 2011 and fiscal 2010 was $29, $31 and $32, respectively.

        The Deferred Compensation Plan is unfunded, with benefits to be paid from Griffin's general assets. The liability for the Deferred Compensation Plan reflects the amounts withheld from employees, Griffin'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.

• Postretirement Benefits

        Griffin maintains a postretirement benefits program that provides principally health and life insurance benefits to certain of its employees. Only those employees who were employed by Griffin's predecessor company as of December 31, 1993 are eligible to participate in the postretirement benefits program. The liability for postretirement benefits is included in other noncurrent liabilities on Griffin's consolidated balance sheets.

        Griffin accounts for postretirement benefits in accordance with FASB ASC 715-10, "Compensation—Retirement Benefits." This guidance requires recognition of the funded status on Griffin's consolidated balance sheet of its postretirement benefits program. The effect of FASB ASC 715-10 in fiscal 2012 and fiscal 2011 was an increase in noncurrent liabilities of $77 and $56, respectively, and decreases of $48 and $35, respectively, after tax, in accumulated other comprehensive income. The effect in fiscal 2010 was a decrease in noncurrent liabilities of $304 and an increase of $188, after tax, in accumulated other comprehensive income.

        Griffin's liability for postretirement benefits, as determined by the plan's actuary, is shown below. The program's liability is unfunded.

	Dec. 1, 2012			Dec. 3, 2011
Change in benefit obligation:
Benefit obligation at beginning of year	$	426		$	389
Actuarial loss		77			56
Interest cost		17			18
Service cost		11			10
Benefits paid		(4	)		(1	)
Amortization of actuarial gain		(39	)		(46	)
Benefit obligation at end of year	$	488		$	426

        Approximately $33 of the estimated net actuarial gain will be amortized from Griffin's accumulated other comprehensive loss into net periodic benefit cost in fiscal 2013.

        Griffin's liability for postretirement benefits as of December 1, 2012 and December 3, 2011 is attributed to the following:

	Dec. 1, 2012		Dec. 3, 2011
Amounts recognized in the consolidated balance sheets consist of:
Retirees	$	16	$	19
Fully eligible active participants		273		184
Other active participants		199		223
Liability for postretirement benefits	$	488	$	426

        The components of Griffin's postretirement benefits expense (income) are as follows:

	For the Fiscal Years Ended,
	Dec. 1, 2012			Dec. 3, 2011			Nov. 27, 2010
Service cost	$	11		$	10		$	16
Interest		17			18			30
Amortization of actuarial gain		(39	)		(46	)		(24	)
Total (income) expense		(11	)		(18	)		22
Other changes in benefit obligations recognized in other comprehensive loss:
Actuarial loss (gain)		77			56			(304	)
Total recognized in net periodic benefit expense (income) and other comprehensive loss	$	66		$	38		$	(282	)

        An assumed health care cost trend of 7.5% has been utilized for the next year, with an ultimate assumed rate of 4.5% being reached in 2027. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	One-Percentage- Point Increase		One-Percentage- Point Decrease
Effect on total of service and interest cost	$	1	$	(1	)
Effect on postretirement benefit obligation		16		(14	)

        Discount rates of 3.59% and 4.50% were used to compute the accumulated postretirement benefit obligations at December 1, 2012 and December 3, 2011, respectively. The discount rates used are based on the spot rate of the Citigroup Pension Discount Curve, which is used to discount the projected cash flows of the plan. Discount rates of 4.50%, 5.23% and 5.61% were used to compute the net periodic benefit expense for fiscal 2012, fiscal 2011 and fiscal 2010, respectively.

        The following benefit payments, which reflect expected future service as appropriate, are expected to be paid as follows:

2013	$	11
2014		12
2015		12
2016		15
2017		16
2018 - 2022		126