Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Nov. 01, 2020
Income Tax Disclosure [Abstract]  
Schedule of Loss before Domestic and Foreign Income Tax
Loss before income taxes is derived from (in thousands):
  Year Ended
  November 1, 2020 November 3, 2019
U.S. Domestic $ (34,889) $ (17,529)
International 2,347  3,321 
Loss before income tax $ (32,542) $ (14,208)
Schedule of Components of Income Tax Expense (Benefit)
Income tax provision (benefit) by taxing jurisdiction consists of (in thousands):
  Year Ended
  November 1, 2020 November 3, 2019
Current:
U.S. Federal $ —  $ — 
U.S. State and local 118 
International 938  1,060 
Total current $ 1,056  $ 1,066 
Deferred:
U.S. State and local $ —  $
International (11) (92)
Total deferred (11) (88)
Income tax provision $ 1,045  $ 978 
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
  November 1, 2020 November 3, 2019
U.S. Federal statutory rate $ (6,834) $ (2,984)
U.S. State income tax, net of U.S. Federal tax benefits (1,235) 142 
International permanent differences 91  95 
International tax rate differentials 232  145 
U.S. tax on international income (705) 471 
General business credits (999) (1,718)
Non-deductible expenses 66  358 
Capital Loss 3,357  — 
Change in valuation allowance for deferred tax assets 7,072  4,469 
Income tax provision $ 1,045  $ 978 
Schedule of Components of Deferred Tax Assets and Liabilities The significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
November 1, 2020 November 3, 2019
Deferred tax assets:
Net operating loss carryforwards $ 61,723  $ 60,706 
Interest carryforward 1,345  — 
Capital loss carryforwards —  3,357 
U.S. federal tax credit carryforwards 54,727  53,462 
Deferred income —  6,045 
Operating lease liabilities 11,477  — 
Deferred withholding tax 5,385  — 
Compensation accruals 1,639  3,199 
Other, net 5,366  5,744 
Total deferred tax assets 141,662  132,513 
Less valuation allowance (125,396) (123,266)
Deferred tax assets, net 16,266  9,247 
Deferred tax liabilities:
Unremitted earnings from foreign subsidiaries 1,725  2,017 
Software development costs 7,914  6,767 
Right of use assets - operating leases 6,178  — 
Other, net 452  466 
Total deferred tax liabilities 16,269  9,250 
Net deferred tax liability $ (3) $ (3)
Balance sheet classification
Non-current assets $ —  $ 14 
Non-current liabilities (3) (17)
Net deferred tax asset (liability) $ (3) $ (3)
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):
November 1, 2020 November 3, 2019
Balance, beginning of year $ 283  $ 491 
Decreases relating to tax positions taken in a prior period (3) (21)
Settlements (195) (146)
Lapse of statute of limitations —  (41)
Total $ 85  $ 283