Stock Incentive Plan
Our sole stock option plan expired by its terms on April 29, 2009 and no further stock options or rights are available for grant under the plan. We had 250,000 employee stock options outstanding during the year ended October 31, 2008 and until April 29, 2009, when all outstanding options under the plan terminated as well. The effect of the employee stock options outstanding for the years ended October 30, 2009 and October 31, 2008 were not included in the calculation of diluted shares and diluted earnings per share as to do so would be anti-dilutive. No stock options or rights were granted during the years ended October 30, 2009 and October 31, 2008. As of April 29, 2009, there were no stock options or rights to purchase shares of our common stock outstanding.
401(K) Plan for Sales, Administrative, Supervisory and Certain Other Employees
During the fiscal year ended November 3, 2006, we implemented a qualified 401(K) retirement plan (the “Plan”) for our sales, administrative, supervisory and certain other employees. During fiscal years 2009 and 2008, we made total contributions to the Plan in the amounts of $409 and $414, respectively.
NOTE 4- Income Taxes:
The provision (benefit) for taxes on income includes the following:
| |
|
2009 |
|
|
2008 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
25 |
|
|
$ |
1 |
|
State |
|
|
230 |
|
|
|
70 |
|
| |
|
|
255 |
|
|
|
71 |
|
| |
|
|
|
|
|
|
|
|
Deferred: |
|
|
|
|
|
|
|
|
Federal |
|
|
— |
|
|
|
5,557 |
|
State |
|
|
— |
|
|
|
951 |
|
| |
|
|
— |
|
|
|
6,508 |
|
| |
|
$ |
255 |
|
|
$ |
6,579 |
|
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:
| |
|
2009 |
|
|
2008 |
|
Provision (benefit) for federal income taxes at the applicable statutory rate |
|
$ |
2,394 |
|
|
$ |
(1,995 |
) |
(Decrease) increase in provision resulting from state income taxes, net of federal income tax benefit |
|
|
521 |
|
|
|
(372 |
) |
Research & development tax credit |
|
|
(16 |
) |
|
|
(15 |
) |
Non-taxable life insurance gain |
|
|
(110 |
) |
|
|
315 |
|
Change in valuation allowance |
|
|
(2,551 |
) |
|
|
8,615 |
|
Other, net |
|
|
17 |
|
|
|
31 |
|
| |
|
$ |
255 |
|
|
$ |
6,579 |
|
Deferred income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.
| |
|
2009 |
|
|
2008 |
|
Receivables allowance |
|
$ |
161 |
|
|
$ |
158 |
|
Returns allowance |
|
|
189 |
|
|
|
202 |
|
Inventory packaging reserve |
|
|
26 |
|
|
|
209 |
|
Inventory capitalization |
|
|
236 |
|
|
|
242 |
|
Incentive compensation |
|
|
39 |
|
|
|
45 |
|
State taxes |
|
|
78 |
|
|
|
24 |
|
Employee benefits |
|
|
1,045 |
|
|
|
1,479 |
|
Other |
|
|
78 |
|
|
|
63 |
|
Valuation allowance |
|
|
(1,852 |
) |
|
|
(2,422 |
) |
Current tax assets, net |
|
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
Incentive compensation |
|
$ |
489 |
|
|
$ |
96 |
|
Pension and health care benefits |
|
|
4,598 |
|
|
|
2,983 |
|
Depreciation |
|
|
47 |
|
|
|
(125 |
) |
Net operating loss carry-forward |
|
|
1,458 |
|
|
|
3,239 |
|
Valuation allowance |
|
|
(6,592 |
) |
|
|
(6,193 |
) |
Non-current tax assets, net |
|
$ |
— |
|
|
$ |
— |
|
