11. Supplemental Financial Statement Information

Deferred Revenue on Land Sale

In the 2012 third quarter, Griffin Land closed on the Dollar Tree Sale. As required under the terms of the Dollar Tree Sale, Griffin Land was required to construct a sewer line to service the land that was sold. As a result of Griffin Land’s continuing involvement with the land sold, this transaction was accounted for under the percentage of completion method, whereby the revenue and the pretax gain on sale were being recognized on a pro rata basis in a ratio equal to the percentage of the total costs incurred to the total anticipated costs of sale, including the costs of the required construction of the sewer line. Costs included in determining the percentage of completion were the cost of the land sold, allocated master planning costs of Tradeport, selling and transaction costs and estimated future costs related to the land sold.

As of June 1, 2013, all of the costs related to the Dollar Tree Sale have been incurred; therefore, from the date of the transaction through June 1, 2013, all of the revenue and pretax gain on sale have been recognized in Griffin’s consolidated statements of operations. Griffin’s consolidated statement of operations for the 2013 second quarter and 2013 six month period include revenue of $1,590 and $2,474, respectively, and a pretax gain on sale of $1,368 and $2,109, respectively, from the Dollar Tree Sale. Including the pretax gain on sale of $3,942 recognized in fiscal 2012, the total pretax gain on the Dollar Tree Sale was $6,051. Property sales revenue and pretax gain in the 2013 second quarter and the 2013 six month period also include $177 from an amended agreement related to the Dollar Tree Sale.

Supplemental Cash Flow Information

Decreases of $1,034 and $301, respectively, in the 2013 and 2012 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. In the 2013 six month period, Griffin sold 1,324,688 shares of its Centaur Media common stock (see Note 7).

Included in accounts payable and accrued liabilities at June 1, 2013 and December 1, 2012 were $721 and $942, respectively, for additions to real estate assets. Accounts payable and accrued liabilities related to additions to real estate assets decreased by $221 in the 2013 six month period and increased by $1,355 in the 2012 six month period.

As of December 1, 2012, Griffin’s accrued liabilities included $1,028 for a dividend on Griffin’s common stock that was declared prior to the end of fiscal 2012 and paid in the 2013 first quarter.

	For the 13 Weeks Ended,				For the 26 Weeks Ended,
	June 1, 2013		June 2, 2012		June 1, 2013		June 2, 2012

Interest payments, net of capitalized interest	$	658	$	961	$	1,847	$	1,926

Income Taxes

Griffin’s effective income tax rate on continuing operations was 30.3% for the 2013 six month period as compared to 40.1% in the 2012 six month period. The effective tax rate in the 2013 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.

As of June 1, 2013, Griffin’s consolidated balance sheet includes a net current deferred tax asset of $542 and a net noncurrent deferred tax asset of $1,930. Although Griffin has incurred pretax losses from continuing operations for the fiscal years ended December 1, 2012, December 3, 2011 and November 27, 2010, 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 are currently being performed.