Income Taxes (Tables)

12 Months Ended

Oct. 31, 2021

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)

Income tax provision (benefit) by taxing jurisdiction consists of (in thousands):

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

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)

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