9. Income Taxes

12 Months Ended

Oct. 31, 2011

Notes

9. Income Taxes:

9.  INCOME TAXES:

   The credit for income taxes from continuing operations is as follows:

	10/31/11	10/31/10	10/31/09
Currently payable:
Federal	$0	($5,000)	$44,000
State	2,000	2,000	3,000
	2,000	(3,000)	47,000
Deferred:
Federal	(1,328,000)	(1,991,000)	(169,000)
State	2,000	(185,000)	(160,000)
	(1,326,000)	(2,176,000)	(329,000)
Total	($1,324,000)	($2,179,000)	($282,000)

   A reconciliation between the amount computed using the statutory federal income tax rate of 34% and the actual credit for income taxes is as follows:

	10/31/11	10/31/10	10/31/09
Computed at statutory rate	($1,327,000)	($2,035,000)	($176,000)
State income taxes, net of federal income tax	2,000	(121,000)	(102,000)
Nondeductible expenses	1,000	(24,000)	0
Other	0	1,000	(4,000)
(Credit) provision for income taxes from continuing operations	($1,324,000)	($2,179,000)	($282,000)

   The components of the deferred tax assets and liabilities as of October 31, 2011 and 2010 are as follows:

	10/31/11	10/31/10
Deferred tax assets:
Accrued expenses	$27,000	$27,000
Deferred income	147,000	162,000
Defined benefit pension	1,553,000	1,164,000
Asset impairment	2,132,000	1,951,000
AMT credit carryforward	364,000	364,000
Net operating losses	6,287,000	4,680,000
Valuation allowance	(2,778,000)	(2,451,000)
Contribution carryforward	32,000	29,000
Stock options	164,000	165,000
Deferred tax asset	7,928,000	6,091,000

	10/31/11	10/31/10
Deferred tax liability:
Depreciation	9,398,000	9,222,000
Land basis	834,000	834,000
	10,232,000	10,056,000
Deferred income tax liability, net	$2,304,000	$3,965,000

   At October 31, 2011, the Companies have approximately $364,000 of Alternative Minimum Tax (AMT) credit carryforward available to reduce future income taxes.  The AMT credit has no expiration date.

   At October 31, 2011, the Companies had available approximately $10,321,000 of federal net operating loss carryforwards which will expire from 2024 to 2031. The Companies also have state net operating loss carryforwards of approximately $27,805,000 that will expire from 2019 to 2031.  The Companies have recorded a valuation allowance against state net operating losses, which are not expected to be utilized.

   The Companies recognize interest and/or penalties related to income tax matters in income tax expense.

   At October 31, 2011, the Companies had unsettled federal tax returns for Fiscal 2008, 2009 and 2010 and unsettled state tax returns for Fiscal 2008, 2009 and 2010 for the states of Louisiana, Minnesota, New Jersey, Pennsylvania, South Carolina, Texas and Colorado.