7. Supplemental Financial Statement Information

Available-for-Sale Securities

In the 2017 third quarter, Griffin sold its 1,952,462 shares in Centaur Media plc (“Centaur Media”) for cash proceeds of $1,216, after transaction costs, which resulted in a pretax gain of $275. Accordingly, Griffin no longer owned any shares of common stock in Centaur Media as of August 31, 2017.

Griffin's investment in the common stock of Centaur Media was accounted for as an available-for-sale security under ASC 320, “Investments – Debt and Equity Securities.” Accordingly, changes in the fair value of Centaur Media, reflecting both changes in the stock price and changes in the foreign currency exchange rate, were included, net of income taxes, in accumulated other comprehensive loss (see Note 6). Griffin did not sell any Centaur Media common stock in the 2016 nine month period.

Griffin’s investment in Centaur Media was included in other assets on Griffin’s consolidated balance sheet. The fair value, cost and unrealized loss of Griffin’s investment in Centaur Media were as follows:


	Nov. 30, 2016
Fair value	$	977
Cost		1,014
Unrealized loss	$	(37)

Other Assets

Griffin's other assets are comprised of the following:


	Aug. 31, 2017		Nov. 30, 2016
Deferred rent receivable	$	5,190	$	4,474
Deferred leasing costs		4,682		4,746
Prepaid expenses		4,369		2,333
Intangible assets, net		1,790		247
Lease receivables from tenants		1,242		369
Mortgage escrows		751		717
Property and equipment, net		290		280
Deposits and other expenditures related to potential real estate acquisitions		68		497
Deferred financing costs related to the Webster Credit Line		64		117
Interest rate swap assets		18		207
Available-for-sale securities		—		977
Other		132		199
Total other assets	$	18,596	$	15,163

Accounts Payable and Accrued Liabilities

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


	Aug. 31, 2017		Nov. 30, 2016
Accrued construction costs and retainage	$	3,009	$	1,252
Accrued interest payable		454		390
Accrued salaries, wages and other compensation		430		725
Trade payables		353		573
Accrued lease commissions		149		487
Other		702		713
Total accounts payable and accrued liabilities	$	5,097	$	4,140

Other Liabilities

Griffin's other liabilities are comprised of the following:


	Aug. 31, 2017		Nov. 30, 2016
Deferred compensation plan	$	4,846	$	4,334
Interest rate swap liabilities		2,447		1,892
Prepaid rent from tenants		1,078		938
Security deposits of tenants		583		413
Conditional asset retirement obligations		288		288
Land sale deposit		155		—
Other		75		78
Total other liabilities	$	9,472	$	7,943

Supplemental Cash Flow Information

In the 2017 nine month period, Griffin received $3,535 of cash, after transaction costs, from the fiscal 2016 sale of approximately 29 acres of undeveloped land in Griffin Center (the “Griffin Center Land Sale”). The proceeds from the Griffin Center Land Sale were deposited into escrow at the time the sale closed for the potential purchase of a replacement property in a 1031 Like-Kind Exchange. As a replacement property was not acquired in the time period required under the applicable tax code, the sale proceeds were returned to Griffin.

An increase of $245 in fiscal 2017 prior to the sale of the remaining shares and a decrease of $912 in the 2016 nine month period in Griffin’s investment in Centaur Media reflect the mark to market adjustments of this investment and did not affect Griffin’s cash.

Accounts payable and accrued liabilities related to additions to real estate assets increased by $1,757 and $293 in the 2017 nine month period and 2016 nine month period, respectively.

Interest payments were as follows:


For the Three Months Ended					For the Nine Months Ended
Aug. 31, 2017		Aug. 31, 2016		Aug. 31, 2017		Aug. 31, 2016
$	1,309	$	1,098	$	3,861	$	3,334

Income Taxes

Griffin’s effective income tax provision rate was 35.4% for the 2017 nine month period as compared to an income tax benefit rate of 21.2% for the 2016 nine month period. The effective tax provision rate for the 2017 nine month period reflects the federal statutory income tax rate adjusted for the effects of permanent differences and state income taxes. The effective tax rate in the 2017 nine month period is based on management’s projections of pretax results for the balance of the year. To the extent that actual results differ from current projections, the effective income tax rate may change. The income tax benefit for the 2016 nine month period reflected the effect of a change in Connecticut tax law, effective for Griffin in fiscal 2016, whereby the future usage of state net operating loss carryforwards is limited to 50% of taxable income. Therefore, in the 2016 nine month period, Griffin decreased its expected realization of the tax benefit related to its Connecticut state net operating loss carryforwards.