|
401(K) Plan for Sales, Administrative, Supervisory and Certain Other Employees
During the fiscal year ended November 3, 2006, the Company implemented a qualified 401(K) retirement plan (the “Plan”) for its sales, administrative, supervisory and certain other employees. During fiscal years 2007 and 2006, the Company made total contributions to the Plan in the amounts of $470 and $229, respectively.
NOTE 4- Income Taxes:
The provision (benefit) for taxes on income includes the following:
|
|
2007 |
|
2006 |
|
2005 |
|
Current: |
|
|
|
|
|
|
|
Federal |
|
$ |
37 |
|
$ |
(171 |
) |
$ |
(1,262 |
) |
State |
|
136 |
|
28 |
|
(208 |
) |
|
|
173 |
|
(143 |
) |
(1,470 |
) |
|
|
|
|
|
|
|
|
Deferred: |
|
|
|
|
|
|
|
Federal |
|
(432 |
) |
357 |
|
318 |
|
State |
|
(122 |
) |
43 |
|
(159 |
) |
|
|
(554 |
) |
400 |
|
159 |
|
|
|
$ |
(381 |
) |
$ |
257 |
|
$ |
(1,311 |
) |
The total tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes as follows:
|
|
2007 |
|
2006 |
|
2005 |
|
(Benefit) provision for federal income taxes at the applicable statutory rate |
|
$ |
(229 |
) |
$ |
509 |
|
$ |
(766 |
) |
(Decrease) increase in provision resulting from state income taxes, net of federal income
tax benefit |
|
(47 |
) |
44 |
|
(90 |
) |
Tax reserve release |
|
— |
|
— |
|
(330 |
) |
Research & development tax credit |
|
(25 |
) |
(154 |
) |
— |
|
Non-taxable life insurance gain |
|
(211 |
) |
(142 |
) |
(202 |
) |
Other, net |
|
131 |
|
— |
|
77 |
|
|
|
$ |
(381 |
) |
$ |
257 |
|
$ |
(1,311 |
) |
Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.
|
|
2007 |
|
2006 |
|
Receivables allowance |
|
$ |
193 |
|
$ |
209 |
|
Inventory capitalization |
|
364 |
|
381 |
|
Incentive compensation |
|
69 |
|
74 |
|
State taxes |
|
(241 |
) |
(200 |
) |
Employee benefits |
|
1,051 |
|
1,332 |
|
Other |
|
54 |
|
25 |
|
Current tax assets, net |
|
$ |
1,490 |
|
$ |
1,821 |
|
Incentive compensation |
|
$ |
114 |
|
$ |
136 |
|
Pension and health care benefits |
|
2,306 |
|
3,666 |
|
Depreciation |
|
(274 |
) |
(445 |
) |
Net operating loss carry-forward |
|
1,734 |
|
— |
|
Non-current tax assets, net |
|
$ |
3,880 |
|
$ |
3,357 |
|
|
