Real Estate Assets

6 Months Ended

Jun. 02, 2012

Real Estate Assets

Real Estate Assets

6.     Real Estate Assets

Real estate assets consist of:

	Estimated Useful Lives	June 2, 2012			December 3, 2011
Land		$	10,267		$	10,435
Land improvements	10 to 30 years	14,040			14,037
Buildings and improvements	10 to 40 years	117,390			117,120
Tenant improvements	Shorter of useful life or terms of related lease	14,441			14,104
Development costs		20,956			12,464
		177,094			168,160
Accumulated depreciation		(54,304		)	(51,865		)
		$	122,790		$	116,295

Included in real estate assets, net, as of June 2, 2012 and December 3, 2011 was $2,025 and $2,161, respectively, reflecting the net book value of Imperial’s Florida farm that was shut down in fiscal 2009 and is being leased to another landscape nursery grower.

Total depreciation expense and capitalized interest related to real estate assets, net, were as follows:

	For the 13 Weeks Ended,				For the 26 Weeks Ended,
	June 2, 2012		May 28, 2011		June 2, 2012		May 28, 2011
Depreciation expense	$	1,289	$	1,331	$	2,570	$	2,677
Capitalized interest	$	220	$	—	$	369	$	—

Real estate held for sale consists of:

	Estimated Useful Lives	June 2, 2012		December 3, 2011
Land		$	203	$	1,911
Land improvements	10 to 30 years	—		4
Buildings and improvements	10 to 40 years	—		11,855
Development costs		1,658		1,151
		1,861		14,921
Accumulated depreciation		—		(1,932		)
		$	1,861	$	12,989

The decrease in real estate held for sale during the 2012 six month period principally reflects the sale of the warehouse in Manchester, Connecticut that closed on January 31, 2012 (see Note 2).