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Note 4 - Income Taxes | 12 Months Ended
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Oct. 28, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 4 - Income Taxes: The provision (benefit) for taxes on income includes the following:
|  | 52 Weeks |
|  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 3,874 |  |  | $ | 253 |
State |  |  | 226 |  |  |  | 100 |
|  |  | 4,100 |  |  |  | 353 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (883 | ) |  |  | (6,335 | )
State |  |  | (151 | ) |  |  | (1,342 | )
|  |  | (1,034 | ) |  |  | (7,677 | )
|  | $ | 3,066 |  |  | $ | (7,324 | )
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:
|  | 52 Weeks |
|  | 2016 |  |  | 2015 |
Provision for federal income taxes at the applicable statutory rate |  | $ | 3,684 |  |  | $ | 2,772 |
Increase in provision resulting from state income taxes, net of federal income tax benefit |  |  | 49 |  |  |  | 641 |
Research & development tax credit |  |  | - |  |  |  | (3 | )
Non-taxable life insurance gain |  |  | (37 | ) |  |  | (2 | )
Domestic Production Activities Deduction |  |  | (429 | ) |  |  | - |
Change in valuation allowance |  |  | - |  |  |  | (10,848 | )
Other, net |  |  | (201 | ) |  |  | 116 |
|  | $ | 3,066 |  |  | $ | (7,324 | )
Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.
|  | 2016 |  |  | 2015 |
Receivables allowance |  | $ | 7 |  |  | $ | 58 |
Returns allowance |  |  | 166 |  |  |  | 201 |
Inventory packaging reserve |  |  | 100 |  |  |  | 125 |
Inventory overhead capitalization |  |  | 524 |  |  |  | 400 |
Employee benefits |  |  | 552 |  |  |  | 793 |
Other |  |  | 1 |  |  |  | 1 |
State taxes |  |  | (655 | ) |  |  | (515 | )
Incentive compensation |  |  | 2,140 |  |  |  | 925 |
Pension and health care benefits |  |  | 12,438 |  |  |  | 9,202 |
Depreciation |  |  | (837 | ) |  |  | (816 | )
Net operating loss carry-forward and credits |  |  | 96 |  |  |  | 271 |
Non-current tax assets, net |  | $ | 14,532 |  |  | $ | 10,645 |
Accounting Standards Codification ("ASC") 740 requires that an entity's deferred tax assets be reduced by a valuation allowance to the extent its management determines that it is more likely than not that such deferred tax asset, or portion thereof, will not be realized. Management evaluated the realizability of its deferred tax assets to determine the need and appropriateness of a valuation allowance. In its determinations, Management considers items of evidence, both positive and negative, including those items outlined in ASC 740. 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 three criteria were met and the valuation allowance was reversed in its entirety during fiscal year 2015. The Company continues to measure the realizability of its deferred tax assets against the preset criteria. 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 October 28, 2016, the Company (1) has utilized its entire federal net operating loss, (2) has positive thirty - six month cumulative book income and (3) positive economic factors including lower and more stable commodity markets and current profitable operations are present. Management has concluded that the deferred tax assets are more likely than not to be realized as of October 28, 2016. Due to the degree of judgment involved, actual taxable income could differ materially from management's estimates, or the timing of taxable income could be such that the net operating losses could expire prior to their utilization. Management could determine in the future that the assets are unrealizable, materially decreasing net income in one or more periods. Following recognition, management could reinstate a full valuation allowance should operating performance decline. As of October 28, 2016, all federal and state net operating loss carryforwards were fully utilized. 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 ASC 740 - 10. In November 2015, the FASB issued guidance in ASU 2015 - 17 concerning the balance sheet classification of deferred taxes in an initiative to reduce complexity in accounting standards. All deferred tax liabilities and assets should now be classified as noncurrent in the statement of financial position to simplify presentation of deferred tax assets. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2016. We have already adopted this guidance and the change is reflected as of October 30, 2015. As of October 28, 2016, we have provided a liability of $130 for unrecognized tax benefits related to various federal and state income tax matters. A significant portion of this amount would generally reduce our effective income tax rate if recognized in future reporting periods. We have not identified any new unrecognized tax benefits. As of October 30, 2015, we have provided a liability of $112 for unrecognized tax benefits related to various federal and state income tax matters. A significant portion of this amount would generally reduce our effective income tax rate if 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:
|  | 52 Weeks |
|  | 2016 |  |  | 2015 |
Balance at beginning of year |  | $ | 112 |  |  | $ | 100 |
Additions based on tax positions related to the current year |  |  | 16 |  |  |  | 12 |
Additions for tax positions of prior years |  |  | 2 |  |  |  | 2 |
Reductions for tax positions of prior years |  |  | - |  |  |  | (2 | )
Settlements |  |  | - |  |  |  | - |
Balance at end of year |  | $ | 130 |  |  | $ | 112 |
We recognize any future accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of October 28, 2016, we had approximately $12 in accrued interest and penalties which is included as a component of the $130 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, 2013 through 2015. 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 2014. 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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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