Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Oct. 28, 2018
Income Tax Disclosure [Abstract]  
Schedule of income before income tax, domestic and foreign
Income (loss) from continuing operations before income taxes is derived from (in thousands):
 
Year Ended
 
October 28,
2018
 
October 29,
2017
U.S. Domestic
$
(36,077
)
 
$
22,464

International
4,350

 
9,749

Income (loss) from continuing operations before income tax
$
(31,727
)
 
$
32,213

Schedule of components of income tax expense (benefit)
Income tax provision (benefit) by taxing jurisdiction consists of (in thousands):
 
Year Ended
 
October 28,
2018
 
October 29,
2017
Current:
 
 
 
U.S. Federal
$
(1,423
)
 
$
(1,178
)
U.S. State and local
188

 
448

International
2,169

 
3,399

Total current
$
934

 
$
2,669

Deferred:
 
 
 
U.S. Federal
$

 
$
1

U.S. State and local
(2
)
 
721

International
26

 
(3
)
Total deferred
24

 
719

Income tax provision
$
958

 
$
3,388

Schedule of income tax rate reconciliation
The difference between the income tax provision on income (loss) and the amount computed at the U.S. federal statutory rate is due to (in thousands):
 
Year Ended
 
October 28,
2018
 
October 29,
2017
U.S. Federal statutory rate
$
(7,424
)
 
$
11,275

U.S. State income tax, net of U.S. Federal tax benefits
212

 
419

International permanent differences
(161
)
 
651

International tax rate differentials
1,282

 
(467
)
U.S. tax on international income
(1,136
)
 
3,446

General business credits
(2,400
)
 
1,099

Meals and entertainment
64

 
163

Other, net
(1,108
)
 
(387
)
Change in valuation allowance for rate change
26,798

 

Change in valuation allowance for dispositions

 
(2,211
)
Change in valuation allowance for deferred tax assets
(15,169
)
 
(10,600
)
Income tax provision
$
958

 
$
3,388

Components of deferred tax assets and liabilities
The significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
 
October 28,
2018
 
October 29,
2017
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
55,522

 
$
66,806

Capital loss carryforwards
3,403

 
5,293

U.S. federal tax credit carryforwards
51,288

 
48,154

Deferred income
6,366

 
10,251

Compensation accruals
4,305

 
6,276

Other, net
5,365

 
8,738

Total deferred tax assets
126,249

 
145,518

Less valuation allowance
(118,559
)
 
(134,195
)
Deferred tax assets, net
7,690

 
11,323

 
 
 
 
Deferred tax liabilities:
 
 
 
Unremitted earnings from foreign subsidiaries
2,010

 
3,453

Software development costs
4,884

 
6,403

Other, net
959

 
1,606

Total deferred tax liabilities
7,853

 
11,462

Net deferred tax asset (liability)
$
(163
)
 
$
(139
)
 
 
 
 
Balance sheet classification
 
 
 
Non-current assets
$
347

 
$
1,067

Non-current liabilities
(510
)
 
(1,206
)
Net deferred tax asset (liability)
$
(163
)
 
$
(139
)
Schedule of uncertain tax positions
The following table sets forth the change in the accrual for uncertain tax positions, excluding interest and penalties (in thousands):
 
October 28,
2018
 
October 29,
2017
Balance, beginning of year
$
1,495

 
$
5,237

Add related to current year tax provision
(10
)
 
269

Reduction for tax provision of prior years - (a)

 
(2,973
)
Settlements

 
(993
)
Lapse of statute of limitations
(994
)
 
(45
)
Total
$
491

 
$
1,495



(a) - As a result of the sale of the quality assurance business, the parent-subsidiary relationship between the Company and Volt Canada, Inc. no longer exists and, as such, the indemnity granted at the time of sale of approximately $3.7 million is subject to recognition under ASC 460 by the Company. This amount had previously been recognized as part of the Company’s uncertain tax positions and has been reclassified to Accrued insurance and other under ASC 460. As of October 28, 2018, the liability provision was $1.6 million.