Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.4
Income Taxes (Tables)
12 Months Ended
Oct. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Taxes
Income (loss) before income taxes is derived from (in thousands):
  Year Ended
  October 31, 2021 November 1, 2020
U.S. Domestic $ (2,193) $ (34,889)
International 4,970  2,347 
Income (loss) before income tax $ 2,777  $ (32,542)
Schedule of Components of Income Tax Expense (Benefit)
Income tax provision (benefit) by taxing jurisdiction consists of (in thousands):
  Year Ended
  October 31, 2021 November 1, 2020
Current:
U.S. State and local $ 117  $ 118 
International 1,207  938 
Total current $ 1,324  $ 1,056 
Deferred:
International $ 79  $ (11)
Total deferred 79  (11)
Income tax provision $ 1,403  $ 1,045 
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 31, 2021 November 1, 2020
U.S. Federal statutory rate $ 586  $ (6,834)
U.S. State income tax, net of U.S. Federal tax benefits 262  (1,235)
International permanent differences 15  91 
International tax rate differentials 508  232 
U.S. tax on international income (173) (705)
General business credits (351) (999)
Foreign tax credit, net 1,558  — 
Non-deductible compensation 529  — 
Non-deductible expenses 92  66 
Capital loss —  3,357 
Change in valuation allowance for deferred tax assets (1,623) 7,072 
Income tax provision $ 1,403  $ 1,045 
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):
October 31, 2021 November 1, 2020
Deferred tax assets:
Net operating loss carryforwards $ 60,559  $ 61,723 
Interest carryforward 896  1,345 
U.S. federal tax credit carryforwards 53,317  54,727 
Operating lease liabilities 10,189  11,477 
Deferred withholding tax 3,435  5,385 
Compensation accruals 3,341  1,639 
Other, net 8,005  5,366 
Total deferred tax assets 139,742  141,662 
Less valuation allowance (123,792) (125,396)
Deferred tax assets, net 15,950  16,266 
Deferred tax liabilities:
Un-remitted earnings from foreign subsidiaries 1,518  1,725 
Software development costs 8,453  7,914 
Right-of-use assets - operating leases 5,530  6,178 
Other, net 450  452 
Total deferred tax liabilities 15,951  16,269 
Net deferred tax liabilities $ (1) $ (3)
Balance sheet classification
Non-current assets $ —  $ — 
Non-current liabilities (1) (3)
Net deferred tax liability $ (1) $ (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):
October 31, 2021 November 1, 2020
Balance, beginning of year $ 85  $ 283 
Decrease relating to tax positions taken in a prior period —  (3)
Settlements —  (195)
Lapse of statute of limitations (20) — 
Total $ 65  $ 85