Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
12 Months Ended
Oct. 29, 2017
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 29,
2017
 
October 30,
2016
 
November 1,
2015
U.S. Domestic
$
22,464

 
$
(20,643
)
 
$
(63,205
)
International
9,749

 
8,248

 
48,065

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

 
$
(12,395
)
 
$
(15,140
)
Schedule of components of income tax expense (benefit)
Income tax provision (benefit) by taxing jurisdiction consists of (in thousands):
 
Year Ended
 
October 29,
2017
 
October 30,
2016
 
November 1,
2015
Current:
 
 
 
 
 
U.S. Federal
$
(1,178
)
 
$
86

 
$
90

U.S. State and local
448

 
186

 
(1,616
)
International
3,399

 
2,444

 
5,200

Total current
$
2,669

 
$
2,716

 
$
3,674

Deferred:
 
 
 
 
 
U.S. Federal
$
1

 
$

 
$

U.S. State and local
721

 
(190
)
 
634

International
(3
)
 
(351
)
 
338

Total deferred
719

 
(541
)
 
972

Income tax provision
$
3,388

 
$
2,175

 
$
4,646

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 29,
2017
 
October 30,
2016
 
November 1,
2015
U.S. Federal statutory rate
$
11,275

 
$
(4,338
)
 
$
(5,299
)
U.S. State income tax, net of U.S. Federal tax benefits
419

 
513

 
(1,435
)
International permanent differences
651

 
(110
)
 
(4,293
)
International tax rate differentials
(467
)
 
(1,291
)
 
(7,046
)
U.S. tax on international income
3,446

 
3,136

 
(1,118
)
General business credits
1,099

 
(4,287
)
 
(3,839
)
Meals and entertainment
163

 
209

 
531

Other, net
(387
)
 
(160
)
 
942

Change in valuation allowance for dispositions
(2,211
)
 

 
(4,237
)
Change in valuation allowance for deferred tax assets
(10,600
)
 
8,503

 
30,440

Income tax provision
$
3,388

 
$
2,175

 
$
4,646

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 29,
2017
 
October 30,
2016
Deferred tax assets:
 
 
 
Net operating loss carryforwards
$
66,806

 
$
62,670

Capital loss carryforwards
5,293

 
21,131

U.S. federal tax credit carryforwards
48,154

 
47,866

Deferred income
10,251

 
10,714

Compensation accruals
6,276

 
6,170

Other, net
8,738

 
7,813

Total deferred tax assets
145,518

 
156,364

Less valuation allowance
(134,195
)
 
(144,863
)
Deferred tax assets, net
11,323

 
11,501

 
 
 
 
Deferred tax liabilities:
 
 
 
Unremitted earnings from foreign subsidiaries
3,453

 
3,356

Software development costs
6,403

 
5,226

Other, net
1,606

 
3,914

Total deferred tax liabilities
11,462

 
12,496

Net deferred tax asset (liability)
$
(139
)
 
$
(995
)
 
 
 
 
Balance sheet classification
 
 
 
Non-current assets
$
1,067

 
$
2,142

Non-current liabilities
(1,206
)
 
(3,137
)
Net deferred tax asset (liability)
$
(139
)
 
$
(995
)
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 29,
2017
 
October 30,
2016
Balance, beginning of year
$
5,237

 
$
5,215

Add related to current year tax provision
269

 
52

Reduction for tax provision of prior years - (a)
(2,973
)
 

Settlements
(993
)
 

Lapse of statute of limitations
(45
)
 
(30
)
Total
$
1,495

 
$
5,237



(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 is subject to recognition under ASC 460 by the Company. As of October 27, 2017, the Company recognized approximately $3.7 million related to the fair value of amounts accrued by Volt Canada, Inc. as of the date of the separation which are expected to be covered by the indemnity.  If additional information becomes available, the Company will update the liability provision for the indemnity. This amount had previously been recognized as part of the Company’s FIN 48 liability and has been reclassified to Accrued insurance and other under ASC 460.