Supplemental Financial Statement Information

6 Months Ended

Jun. 02, 2012

Supplemental Financial Statement Information

Supplemental Financial Statement Information

11.          Supplemental Financial Statement Information

Gain on Insurance Recovery

In the 2011 six month period, snow load from winter storms caused the collapse of some of Imperial’s hoop houses and some of the plants stored in those hoop houses became unsaleable.  A charge of $300 was included in costs of landscape nursery sales in the 2011 six month period to establish a reserve for the estimated book value of the inventory that became unsaleable.  There was no charge to earnings related to the damage to the hoop houses because they were fully depreciated prior to fiscal 2011.  Initial insurance proceeds of $200, related to the hoop house damage, were received in the 2011 first quarter and were reflected as a gain on insurance recovery in the 2011 six month period consolidated statement of operations.   The claim for the damaged hoop houses was settled in the 2011 fourth quarter when Griffin received additional proceeds of $279 (see Notes 5 and 8).

Supplemental Cash Flow Information

Decreases of $301 and $315, respectively, in the 2012 and 2011 six month periods in Griffin’s Investment in Centaur Media reflect the mark to market adjustments of this investment and did not affect Griffin’s cash.

Included in accounts payable and accrued liabilities at June 2, 2012 and December 3, 2011 were $1,897 and $542, respectively, for additions to real estate assets.  Accounts payable and accrued liabilities related to additions to real estate assets increased by $1,355 and $9 in the 2012 and 2011 six month periods, respectively.

As of December 3, 2011, Griffin’s accrued liabilities included $513 for a dividend on Griffin’s common stock that was declared prior to the end of fiscal 2011 and paid in the 2012 first quarter.

	For the 13 Weeks Ended,				For the 26 Weeks Ended,
	June 2, 2012		May 28, 2011		June 2, 2012		May 28, 2011
Interest payments, net of capitalized interest	$	741	$	1,023	$	1,557	$	2,023

Income Taxes

Griffin’s effective income tax benefit rate on continuing operations was 40.1% for the 2012 six month period as compared to 37.1% for the 2011 six month period.  The effective tax benefit rate used in the 2012 six month period is based on management’s projections for the balance of the year.  To the extent that actual results differ from current projections, the effective income tax rate may change.

The following increases and decreases to deferred income taxes are included as charges and credits, respectively, in Griffin’s other comprehensive loss:

	For the 13 Weeks Ended June 2, 2012								For the 26 Weeks Ended June 2, 2012
	Pretax			Tax (Expense) Benefit		Net-of-Tax			Pretax			Tax (Expense) Benefit		Net-of-Tax
Decrease in fair value of Centaur Media	$	(720	)	$	252	$	(468	)	$	(257	)	$	90	$	(167	)
Decrease in fair value of Centaur Media due to exchange gain	(95		)	33		(62		)	(44		)	15		(29		)
Decrease in fair value of cash flow hedges	(313		)	116		(197		)	(553		)	205		(348		)
Other comprehensive loss	$	(1,128	)	$	401	$	(727	)	$	(854	)	$	310	$	(544	)

	For the 13 Weeks Ended May 28, 2011									For the 26 Weeks Ended May 28, 2011
	Pretax			Tax (Expense) Benefit			Net-of-Tax			Pretax			Tax (Expense) Benefit			Net-of-Tax
Decrease in fair value of Centaur Media	$	(986	)	$	345		$	(641	)	$	(575	)	$	201		$	(374	)
Increase in fair value of Centaur Media due to exchange gain	74			(26		)	48			260			(91		)	169
(Decrease) increase in fair value of cash flow hedges	(570		)	211			(359		)	188			(69		)	119
Other comprehensive loss	$	(1,482	)	$	530		$	(952	)	$	(127	)	$	41		$	(86	)

As of June 2, 2012, Griffin’s consolidated balance sheet includes a net current deferred tax asset of $607 and a net noncurrent deferred tax asset of $3,370.  Although Griffin has incurred pretax losses for the fiscal years ended November 28, 2009, November 27, 2010 and December 3, 2011, management has concluded that a valuation allowance against those net deferred tax assets is not required.

Examinations of Griffin’s fiscal 2007, fiscal 2008 and fiscal 2009 New York state income tax returns and Griffin’s fiscal 2007 Connecticut state income tax return are currently being performed.