PENSION PLANS

12 Months Ended

Oct. 31, 2011

PENSION PLANS [Text Block]

17. PENSION PLANS

Canal has a defined benefit pension plan covering substantially all of its salaried employees (the "Plan"). The benefits are based on years of service and the employee's compensation earned each year. The Company's funding policy is to contribute the amount that can be deducted for federal income tax purposes. Accordingly, the Company has made contributions of approximately $183,000 for fiscal 2011 and $22,000 for fiscal 2010. Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. Assets of the plan were invested in U.S. Government securities, common stocks and antiquities. The Company uses an October 31 measurement date for its pension plan.

The following tables set forth the benefit obligations, fair value of plan assets, funded status, and amounts recognized in the Company's consolidated balance sheets at October 31, 2011 and 2010.

		Plan Year
($ 000's Omitted)		2011			2010
Benefit obligation
Benefit obligation at beginning of year	$	1,927		$	1,819
Service cost		11			9
Interest cost		86			96
Plan participants’ contributions		0			0
Amendments		0			0
Actuarial (gain) loss		64			127
Benefits paid		(106	)		(124	)
Benefit obligation at end of year	$	1,982		$	1,927
Plan assets
Fair value of plan assets at beginning of year	$	1,057		$	1,022
Actual return on plan assets		36			137
Employer contribution		183			22
Plan participants’ contributions		0			0
Benefits paid		(106	)		(124	)
Fair value of plan assets at end of year	$	1,170		$	1,057
Net Amount Recognized
Funded Status	$	(813	)	$	(870	)
Amounts Recognized in the Consolidated Balance Sheets as of October 31,
Current Liabilities	$	0		$	0
Non-current Liabilities		(813	)		(870	)
Net Amount Recognized	$	(813	)	$	(870	)
Amounts Recognized in Accumulated Other Comprehensive Income as of October 31,
Net Loss	$	1,919		$	1,894
Information for Pension Plans With an Accumulated Benefit Obligation in Excess of Plan Assets
Projected Benefit Obligation	$	1,982		$	1,927
Accumulated Benefit Obligation		1,968			1,917
Fair Value of Plan Assets		1,170			1,057
Components of Net Periodic Benefit Cost
Service Cost	$	11		$	9
Interest Cost		86			96
Expected Return on Plan Assets		(99	)		(82	)
Amortization of Prior Service Costs		0			0
Amortization of Net Loss or (Gain)		103			93
Net Periodic Benefit Cost	$	101		$	116
Additional Information
Decrease in Minimum Liability Included in Other Comprehensive Income, Net of $0 Recognized due to FAS 158 for change in Accrued Benefit Cost and Funded Status	$	0		$	0
Weighted-Average Assumptions Used to Determine Benefit Obligations at October 31
Discount Rate		4.85%			4.65%
Rate of Compensation Increase		2.50%			2.50%
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended October 31
Discount Rate		4.65%			5.50%
Expected Return on Plan Assets		8.00%			8.00%
Rate of Compensation Increase		2.50%			4.00%

The expected long-term rate of return for the plan’s total assets is based on the expected return of each of the above categories, weighted based on the median of the target allocation for each class. Equity securities are expected to return 10% to 11% over the long-term, while cash and fixed income is expected to return between 4% to 6%. Based on historical experience, the company expects that the plan’s asset managers will provide a modest (0.5% to 1.0% per annum) premium to their respective market benchmark indices.

Plan Assets

The company’s pension plan weighted-average asset allocations at October 31, 2011 and 2010, by asset category are as follows:

	Plan Year
	2011	2010
Asset Category
Equity Securities*	86.0%	82.0%
Debt Securities	0.0%	11.0%
Real Estate	0.0%	0.0%
Other	14.0%	7.0%
Total	100.0%	100.0%

* Includes Canal Capital Corporation common stock in the amounts of approximately $1,000 (0.0%) at both October 31, 2011 and 2010, respectively.

The policy as established by the pension plan trustees, is to provide for growth of capital with a moderate level of volatility by investing assets per the established target allocations. The assets will be reallocated from time to time to meet the target allocations. The investment policy will be reviewed on a regular basis, to determine if the established policies should be changed.

Cash Flows & Contributions

The company expects to contribute approximately $182,000 to its pension plan in fiscal 2012.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the fiscal years ending:

2012	$	133,000
2013		139,000
2014		155,000
2015		159,000
2016		158,000
2017 through 2021		741,000

401(k) Plan

The Company has a defined contribution 401(k) plan covering substantially all of its full time stockyard employees. The plan provides for employee contributions and 401(k) matching contributions of up to 2 ½% of the employee’s annual salary by the Company. The Company made 401(k) matching contributions of approximately $10,000 and $11,000 for each of fiscal 2011 and 2010, respectively.