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Note 4 - Income Taxes
 12 Months Ended
Nov. 02, 2012
Income Tax Disclosure [Text Block]
NOTE 4- Income Taxes:

The provision for taxes on income includes the following:

   
2012
(53 Weeks)
   
2011
(52 Weeks)
 
Current:
           
Federal
 
$
(14
)
 
$
(603
)
State
   
379
     
(66
)
     
365
     
(669
)
Deferred:
               
Federal
     -      
-
 
State
     -      
-
 
      -       -  
   
$
365
   
$
(669
)

The total tax provision differs from the expected amount computed by applying the statutory federal income tax rate to income before income taxes as follows:

   
2012
(53 Weeks)
   
2011
(52 Weeks)
 
Provision for federal income taxes at the applicable statutory rate
 
$
1,366
   
$
(378
)
Increase in provision resulting from state income taxes, net of federal income tax benefit
   
411
     
(98
)
Research & development tax credit
   
(8
)
   
-
 
Non-taxable life insurance gain
   
(238
)
   
(163
)
Benefits of tax law changes - state
     -      
(114
)
Change in valuation allowance
   
(1,115
)
   
(4
)
Other, net
   
(51
)
   
88
 
   
$
365
   
$
(669
)

Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.

   
2012
   
2011
 
Receivables allowance
 
$
38
   
$
53
 
Returns allowance
   
158
     
180
 
Inventory packaging reserve
   
187
     
76
 
Inventory overhead capitalization
   
289
     
254
 
Incentive compensation
   
201
     
361
 
State taxes
   
61
     
16
 
Employee benefits
   
1,468
     
1,483
 
Other
   
38
     
9
 
Valuation allowance
   
(2,440
)
   
(2,432
)
Current tax assets, net
 
$
-
   
$
-
 
                 
State taxes
 
$
511
   
$
282
 
Incentive compensation
   
374
     
290
 
Pension and health care benefits
   
9,888
     
7,789
 
Depreciation
   
(1,018
)
   
(801
)
Net operating loss carry-forward and credits
   
1,343
     
1,484
 
Valuation allowance
   
(11,098
)
   
(9,044
)
Non-current tax assets, net
 
$
-
   
$
-
 

Management evaluated the need for a full valuation allowance at the end of fiscal 2012.  Management evaluated both positive and negative evidence.  The weight of negative factors and level of economic uncertainty in our current business continued to support the conclusion that the realization of our deferred tax assets does not meet the more likely than not standard.  Therefore, a full valuation allowance will remain against the net deferred tax assets.

As of November 2, 2012, the Company had federal and state net operating loss carryforwards of approximately $1,681 and $3,506 respectively.  These loss carryforwards will expire at various dates from 2018 through 2032.

In July 2006, the FASB issued guidance to clarify the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This interpretation prescribed a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance also discussed derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The cumulative effect, if any, of applying this guidance is to be reported as an adjustment to the opening balance of retained earnings in the year of adoption.  The provisions of this guidance have been incorporated into Accounting Standards Codification ("ASC") 740-10.

As of November 2, 2012, we have provided a liability of $97 for unrecognized tax benefits related to various federal and state income tax matters. This entire amount would reduce our effective income tax rate if the asset is recognized in future reporting periods.  We have not identified any new unrecognized tax benefits.

As of October 28, 2011, we have provided a liability of $105 for unrecognized tax benefits related to various federal and state income tax matters.  This entire amount would reduce our effective income tax rate if the asset is recognized in future reporting periods.  We have not identified any new unrecognized tax benefits.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

   
2012
(53 Weeks)
   
2011
(52 Weeks)
 
Balance at beginning of year
 
$
105
   
$
95
 
Additions based on tax positions related to the current year
   
-
     
-
 
Additions for tax positions of prior years
   
1
     
10
 
Reductions for tax positions of prior years
   
(9
) 
   
  -
 
Settlements
   
-
     
  -
 
                 
Balance at end of year
 
$
97
   
$
105
 

We recognize any future accrued interest and penalties related to unrecognized tax benefits in income tax expense.  As of November 2, 2012, we had approximately $3 in accrued interest and penalties which is included as a component of the $97 unrecognized tax benefit noted above.

Our federal income tax returns are open to audit under the statute of limitations for the years ended October 31, 2008 through 2010. 

We are subject to income tax in California and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute of limitations for the fiscal years ended October 31, 2008 through 2011.

We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.