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Note 4 - Income Taxes | 12 Months Ended
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Nov. 01, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 4- Income Taxes: The provision for taxes on income includes the following:
|  | 2013 (52 Weeks) |  |  | 2012 (53 Weeks) |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 47 |  |  | $ | (14 | )
State |  |  | 122 |  |  |  | 379 |
|  |  | 169 |  |  |  | 365 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State |  |  | - |  |  |  | - |
|  |  |  |  |  |  | - |
|  | $ | 169 |  |  | $ | 365 |
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:
|  | 2013 (52 Weeks) |  |  | 2012 (53 Weeks) |
Provision for federal income taxes at the applicable statutory rate |  | $ | 1,049 |  |  | $ | 1,366 |
Increase in provision resulting from state income taxes, net of federal income tax benefit |  |  | 488 |  |  |  | 411 |
Research & development tax credit |  |  | (33 | ) |  |  | (8 | )
Non-taxable life insurance gain |  |  | (280 | ) |  |  | (238 | )
Change in valuation allowance |  |  | (1,214 | ) |  |  | (1,115 | )
Other, net |  |  | 159 |  |  |  | (51 | )
|  | $ | 169 |  |  | $ | 365 |
Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.
|  | 2013 |  |  | 2012 |
Receivables allowance |  | $ | 50 |  |  | $ | 38 |
Returns allowance |  |  | 165 |  |  |  | 158 |
Inventory packaging reserve |  |  | 209 |  |  |  | 187 |
Inventory overhead capitalization |  |  | 391 |  |  |  | 289 |
Incentive compensation |  |  | 178 |  |  |  | 201 |
State taxes |  |  | 49 |  |  |  | 61 |
Employee benefits |  |  | 1,232 |  |  |  | 1,468 |
Other |  |  | 2 |  |  |  | 38 |
Valuation allowance |  |  | (2,276 | ) |  |  | (2,440 | )
Current tax assets, net |  | $ | - |  |  | $ | - |
State taxes |  | $ | 186 |  |  | $ | 511 |
Incentive compensation |  |  | 487 |  |  |  | 374 |
Pension and health care benefits |  |  | 5,356 |  |  |  | 9,888 |
Depreciation |  |  | (1,623 | ) |  |  | (1,018 | )
Net operating loss carry-forward and credits |  |  | 1,265 |  |  |  | 1,343 |
Valuation allowance |  |  | (5,671 | ) |  |  | (11,098 | )
Non-current tax assets, net |  | $ | - |  |  | $ | - |
The Company policy outlines measurable objective criteria that must be met before a release of the valuation allowance will occur. The three criteria set forth in the policy must all be satisfied before the valuation allowance can be reversed. The criteria are as follows: first, the Company’s available federal tax net operating loss ("NOL") must be zero; second, the prior thirty-six month cumulative book basis pre-tax income (loss), after considering “one-time” events, is positive; third, the Company considers its outlook of near term continued profitable operations and assesses any material negative and positive trends or events on the immediate horizon. As of November 1, 2013, the Company (1) has a federal tax NOL of $1,394, (2) has positive thirty-six month cumulative book income and (3) commodity costs are trending higher for the fourth quarter of fiscal 2013 which creates uncertainty about the Company's ability to generate future earnings. Only the second criterion has been satisfied, therefore, the Company will maintain a full valuation allowance against its deferred tax assets as of November 1, 2013. 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 1, 2013, the Company had federal and state net operating loss carryforwards of approximately $1,394 and $3,302 respectively. These loss carryforwards will expire at various dates from 2019 through 2033. 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 provisions of this guidance have been incorporated into Accounting Standards Codification ("ASC") 740-10. As of November 1, 2013, we have provided a liability of $100 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 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. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
|  | 2013 (52 Weeks) |  |  | 2012 (53 Weeks) |
Balance at beginning of year |  | $ | 97 |  |  | $ | 105 |
Additions based on tax positions related to the current year |  |  | - |  |  |  | - |
Additions for tax positions of prior years |  |  | 3 |  |  |  | 1 |
Reductions for tax positions of prior years |  |  | - |  |  |  | (9 | )
Settlements |  |  | - |  |  |  | - |
Balance at end of year |  | $ | 100 |  |  | $ | 97 |
We recognize any future accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of November 1, 2013, we had approximately $3 in accrued interest and penalties which is included as a component of the $100 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, 2009 through 2012. 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, 2009 through 2012. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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