10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2016

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to          .

Commission File Number: 001-09232

VOLT INFORMATION SCIENCES, INC.

(Exact name of registrant as specified in its charter)

New York	13-5658129
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1133 Avenue of Americas, New York, New York	10036
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(212) 704-2400

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.   x  Yes     ¨   No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     x   Yes   ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer x	Non-accelerated filer ¨	Smaller reporting company ¨
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  ¨    No x

As of September 2, 2016, there were 20,894,383 shares of common stock outstanding.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(unaudited)

	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
REVENUE:
Staffing services revenue	$	313,428		$	341,383		$	939,356		$	1,064,481
Other revenue	17,062			23,285			53,403			68,442
NET REVENUE	330,490			364,668			992,759			1,132,923
EXPENSES:
Direct cost of staffing services revenue	266,684			287,554			798,682			900,909
Cost of other revenue	15,110			19,696			47,785			59,210
Selling, administrative and other operating costs	49,712			58,025			154,019			178,227
Restructuring and severance costs	970			1,867			4,571			3,093
Impairment charges	—			580			—			5,954
Gain on sale of building	—			—			(1,663		)	—
TOTAL EXPENSES	332,476			367,722			1,003,394			1,147,393
OPERATING LOSS	(1,986		)	(3,054		)	(10,635		)	(14,470		)
OTHER INCOME (EXPENSE), NET:
Interest income (expense), net	(826		)	(571		)	(2,346		)	(1,935		)
Foreign exchange gain (loss), net	(1,003		)	1,010			(1,238		)	(153		)
Other income (expense), net	(402		)	(178		)	(1,101		)	(37		)
TOTAL OTHER INCOME (EXPENSE), NET	(2,231		)	261			(4,685		)	(2,125		)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(4,217		)	(2,793		)	(15,320		)	(16,595		)
Income tax provision	393			1,351			2,037			3,262
LOSS FROM CONTINUING OPERATIONS	(4,610		)	(4,144		)	(17,357		)	(19,857		)
DISCONTINUED OPERATIONS
Loss from discontinued operations, net of income taxes (including loss on disposal of $1.2 million)	—			—			—			(4,519		)
NET LOSS	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(24,376	)
PER SHARE DATA:
Basic:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)
Weighted average number of shares	20,846			20,741			20,824			20,821
Diluted:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)
Weighted average number of shares	20,846			20,741			20,824			20,821

See accompanying Notes to Condensed Consolidated Financial Statements.

1

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(unaudited)

	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
NET LOSS	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(24,376	)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $0, respectively	(1,437		)	(1,431		)	(1,133		)	(1,065		)
Unrealized gain on marketable securities, net of taxes of $0, respectively	25			7			23			23
Total other comprehensiveloss	(1,412		)	(1,424		)	(1,110		)	(1,042		)
COMPREHENSIVE LOSS	$	(6,022	)	$	(5,568	)	$	(18,467	)	$	(25,418	)

See accompanying Notes to Condensed Consolidated Financial Statements.

2

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)

	July 31, 2016			November 1, 2015
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	12,886		$	10,188
Restricted cash and short-term investments	16,392			14,977
Trade accounts receivable, net of allowances of$718 and $960, respectively	179,088			198,385
Recoverable income taxes	17,244			16,633
Prepaid insurance and other current assets	13,396			15,865
Assets held for sale	19,680			22,943
TOTAL CURRENT ASSETS	258,686			278,991
Other assets, excluding current portion	25,573			23,740
Property, equipment and software, net	27,783			24,095
TOTAL ASSETS	$	312,042		$	326,826
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accrued compensation	$	29,850		$	29,548
Accounts payable	35,113			39,164
Accrued taxes other than income taxes	22,962			22,719
Accrued insurance and other	31,170			34,391
Short-term borrowings, including current portion of long-term debt	92,000			982
Income taxes payable	—			1,658
Liabilities held for sale	5,571			7,345
TOTAL CURRENT LIABILITIES	216,666			135,807
Accrued insurance and other, excluding current portion	11,868			10,474
Deferred gain on sale of real estate, excluding current portion	26,594			—
Income taxes payable, excluding current portion	6,647			6,516
Deferred income taxes	3,436			3,225
Long-term debt, excluding current portion	—			106,313
TOTAL LIABILITIES	265,211			262,335
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none	—			—
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003 and 23,738,003, respectively; Outstanding - 20,894,383and20,801,080, respectively	2,374			2,374
Paid-in capital	75,861			75,803
Retained earnings	18,692			38,034
Accumulated other comprehensive loss	(9,104		)	(7,994		)
Treasury stock, at cost; 2,843,620 and 2,936,923 shares, respectively	(40,992		)	(43,726		)
TOTAL STOCKHOLDERS' EQUITY	46,831			64,491
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	312,042		$	326,826

See accompanying Notes to Condensed Consolidated Financial Statements.

3

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

	Nine Months Ended
	July 31, 2016			August 2, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(17,357	)	$	(24,376	)
Loss from discontinued operations, net of income taxes	—			(4,519		)
Loss from continuing operations	(17,357		)	(19,857		)
Adjustment to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	4,541			5,110
Provision (release) of doubtful accounts and sales allowances	(240		)	391
Impairment charges	—			5,954
Unrealized foreign currency exchange loss (gain)	1,617			(528		)
Gain on dispositions of property and equipment	(2,326		)	(253		)
Deferred income tax benefit	—			(79		)
Share-based compensation expense	1,020			2,564
Accretion of convertible note discount	(90		)	(319		)
Change in operating assets and liabilities:
Trade accounts receivable	19,756			33,919
Restricted cash	(2,426		)	9,419
Prepaid insurance and other assets	(2,214		)	(886		)
Net assets held for sale	1,258			6,934
Accounts payable	(4,082		)	(18,568		)
Accrued expenses and other liabilities	1,409			(9,946		)
Income taxes	(2,181		)	2,251
Net cash provided by (used in) operating activities	(1,315		)	16,106
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments	1,230			1,011
Purchases of investments	(340		)	(582		)
Purchase of minority interest	(1,446		)	—
Proceeds from sale of property and equipment	36,795			389
Purchases of property, equipment and software	(13,632		)	(5,119		)
Net cash provided by (used in) investing activities	22,607			(4,301		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in cash restricted as collateral for borrowings	—			10,436
Repayment of borrowings	(10,000		)	(158,506		)
Draw-down of borrowings	2,000			155,000
Repayment of long-term debt	(7,295		)	(676		)
Debt issuance costs	(669		)	(746		)
Proceeds from exercise of stock options	24			504
Purchases of common stock under repurchase program	—			(4,262		)
Withholding tax payment on vesting of restricted stock awards	(116		)	—
Net cash provided by (used in) financing activities	(16,056		)	1,750
Effect of exchange rate changes on cash and cash equivalents	(2,538		)	(3,679		)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Cash flow from operating activities	—			(56		)
Cash flow from investing activities	—			(4,000		)
Net cash used in discontinued operations	—			(4,056		)
Net increase in cash and cash equivalents	2,698			5,820
Cash and cash equivalents, beginning of period	10,188			6,723
Change in cash from discontinued operations	—			(211		)
Cash and cash equivalents, end of period	$	12,886		$	12,332
Cash paid during the period:
Interest	$	2,436		$	2,435
Income taxes	$	3,727		$	1,638
Supplemental disclosure of non-cash investing and financing activities:
Note receivable in exchange for Computer Systems segment net assets sold	$	—		$	8,363

See accompanying Notes to Condensed Consolidated Financial Statements.

4

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

For the Fiscal Periods Ended July 31, 2016 and August 2, 2015

(Unaudited)

NOTE 1: Basis of Presentation

Basis of Presentation

The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. (“Volt” or the “Company”) have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended November 1, 2015. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, are based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended November 1, 2015.

Certain reclassifications have been made to the prior year financial statements in order to conform to the current year's presentation.

NOTE 2: Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies. Unless otherwise discussed, the Company believes that the adoption of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption.

In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force. The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. For public business entities that are SEC filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  This ASU requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. This update

5

is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU requires that debt issuance costs related to a recognized liability be presented on the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 clarifies the guidance in ASU 2015-03 regarding presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. The SEC Staff announced they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These ASUs are effective for reporting periods beginning after December 15, 2015, including interim reporting periods within those fiscal years.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This ASU is effective for the annual period ending after December 15, 2016, with early adoption permitted.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This standard is effective for fiscal years and interim reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that period. The Company is currently assessing the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures upon implementation in the first quarter of fiscal 2019.

From March through May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606):Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606):Identifying Performance Obligations and Licensing, ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815):Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606):Narrow-Scope Improvements and Practical Expedients. These amendments are intended to improve and clarify the implementation guidance of Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of ASU No. 2014-09 and ASU No. 2015-14.

Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

Recently Adopted Accounting Standards

In November 2015, the FASB issued Accounting Standards Update ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The Company has early adopted ASU 2015-17 prospectively beginning in the first quarter of fiscal 2016. Other than the revised balance sheet presentation of deferred taxes from current to non-current, the adoption of this ASU did not have a material impact to our consolidated financial statements.

NOTE 3: Discontinued Operations

On December 1, 2014, the Company completed the sale of its Computer Systems segment to NewNet Communication Technologies, LLC (“NewNet”), a Skyview Capital, LLC, portfolio company. The results of the Computer Systems segment are presented as discontinued operations and excluded from continuing operations and from segment results for all periods presented. 

6

The proceeds of the transaction are a $10.0 million note bearing interest at one half (0.5) percent per year due in four years and convertible into a capital interest of up to 20% in NewNet. The Company may convert the note at any time and is entitled to receive early repayment in the event of certain events such as a change in control of NewNet. The proceeds are in exchange for the ownership of Volt Delta Resources, LLC and its operating subsidiaries, which comprised the Company's Computer Systems segment, and payment of $4.0 million by the Company during the first 45 days following the transaction. An additional payment will be made between the parties based on the comparison of the actual transaction date working capital amount to an expected working capital amount of $6.0 million (the contractually agreed upon working capital). The note was initially valued at $8.4 million which approximated its fair value. At July 31, 2016, the note is carried at net realizable value and the unamortized discount was $1.1 million. The parties are currently in active discussions to finalize the closing balance sheet working capital amounts.

The Company recognized a loss on disposal of $1.2 million from the sale transaction in the first quarter of 2015. The total related costs associated with this transaction were $2.2 million comprised of $0.9 million in severance costs, $0.9 million of professional fees and $0.4 million of lease obligation costs. These costs are recorded in Discontinued operations in the Condensed Consolidated Statements of Operations. As of July 31, 2016, $2.0 million has been paid and $0.2 million remains payable and is included in Accrued insurance and other in the Condensed Consolidated Balance Sheets.

The following table reconciles the major line items in the Condensed Consolidated Statements of Operations for discontinued operations (in thousands):

	Nine Months Ended August 2, 2015
Loss from discontinued operations
Net revenue	$	4,708
Cost of revenue	5,730
Selling, administrative and other operating costs	1,388
Restructuring and other related costs	1,709
Other (income) expense, net	(978		)
Loss from discontinued operations	(3,141		)
Loss on disposal of discontinued operations	(1,187		)
Loss from discontinued operations before income taxes	(4,328		)
Income tax provision	191
Loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations	$	(4,519	)

NOTE 4: Assets and Liabilities Held for Sale

In October 2015, the Company's Board of Directors (the "Board") approved a plan to sell the Company’s information technology infrastructure services business (“Maintech”) and staffing services business in Uruguay (“Lakyfor, S.A.”).

Maintech met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2015. The potential disposal of Maintech did not represent a strategic shift that will have a major effect on the Company’s operations and financial results and is, therefore, not classified as discontinued operations in accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), (“ASU 2014-08”). As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations exceeded the carrying value of the net assets and no impairment charge was recorded. The timeline to complete a transaction has extended beyond the third quarter of fiscal 2016.

Lakyfor, S.A. met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2015.  The disposal of Lakyfor, S.A. did not represent a strategic shift that would have a major effect on the Company’s operations and financial results and was, therefore, not classified as discontinued operations in accordance with ASU 2014-08. As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations was significantly lower than the carrying value of the net assets and an impairment charge of $0.7 million was recorded in the fourth quarter of fiscal 2015. The sale occurred in December 2015 for nominal proceeds and the Company recognized a loss on disposal of $0.1 million from the sale transaction in the first quarter of fiscal 2016.

7

The following table reconciles the major classes of assets and liabilities classified as held for sale as part of continuing operations in the Condensed Consolidated Balance Sheets (in thousands):

	July 31, 2016		November 1, 2015
Assets included as part of continuing operations
Cash and cash equivalents	$	825	$	1,537
Trade accounts receivable, net	14,591		15,671
Recoverable income taxes	54		165
Prepaid insurance and other assets	3,573		4,886
Property, equipment and software, net	142		189
Purchased intangible assets	495		495
Total major classes of assets as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	19,680	$	22,943
Liabilities included as part of continuing operations
Accrued compensation	$	2,439	$	3,509
Accounts payable	684		1,387
Accrued taxes other than income taxes	775		1,165
Accrued insurance and other	586		523
Deferred revenue	1,087		761
Total major classes of liabilities as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	5,571	$	7,345

⁽¹⁾ The Balance Sheet as of July 31, 2016 only includes Maintech.

8

Note 5: Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss for the three and nine months ended July 31, 2016 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016						July 31, 2016
	Foreign Currency Translation			Unrealized Loss on Marketable Securities			Foreign Currency Translation			Unrealized Loss on Marketable Securities
Accumulated other comprehensive loss at beginning of the period	$	(7,667	)	$	(25	)	$	(7,971	)	$	(23	)
Other comprehensive income (loss) before reclassifications	(1,437		)	25			(1,133		)	23
Accumulated other comprehensive loss at July 31, 2016	$	(9,104	)	$	—		$	(9,104	)	$	—
Reclassifications from accumulated other comprehensive loss for the three and nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
Foreign currency translation
Sale of foreign subsidiaries, net of tax	$	—		$	—		$	—		$	(3,181	)
Closure of foreign subsidiary	(643		)	—			(643		)	—
Amount reclassified from accumulated other comprehensive loss for the nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
Details about Accumulated Other Comprehensive Loss Components	Fiscal Year			Amount Reclassified			Affected Line Item in the Statement Where Net Loss is Presented
Foreign currency translation
Closure of foreign subsidiary	2016			$	643		Foreign exchange gain (loss), net
Sale of foreign subsidiaries	2015			3,181			Discontinued operations

9

NOTE 6: Restricted Cash and Short-Term Investments

Restricted cash primarily includes amounts related to requirements under certain contracts with managed service program customers for whom the Company manages the customers’ contingent staffing requirements, including processing of associate vendor billings into single, combined customer billings and distribution of payments to associate vendors on behalf of customers, as well as minimum cash deposits required to be maintained as collateral. Distribution of payments to associate vendors are generally made shortly after receipt of payment from customers, with undistributed amounts included in restricted cash and accounts payable between receipt and distribution of these amounts. Changes in restricted cash collateral are classified as an operating activity, as this cash is directly related to the operations of this business. At July 31, 2016 and November 1, 2015, restricted cash included $10.6 million and $9.3 million, respectively, restricted for payment to associate vendors and $2.0 million and $0.9 million, respectively, restricted for other collateral accounts.

At July 31, 2016 and November 1, 2015, short-term investments were $3.8 million and $4.8 million, respectively. These short-term investments consisted primarily of the fair value of deferred compensation investments corresponding to employees’ selections, primarily in mutual funds, based on quoted prices in active markets.

NOTE 7: Income Taxes

The income tax provision reflects the geographic mix of earnings in various federal, state and foreign tax jurisdictions and their applicable rates resulting in a composite effective tax rate. The Company’s cumulative results for substantially all United States and certain non-United States jurisdictions for the most recent three-year period is a loss. Accordingly, a valuation allowance has been established for substantially all loss carryforwards and other net deferred tax assets for these jurisdictions, resulting in an effective tax rate that is significantly different than the statutory rate.

The Company's provision for income taxes primarily includes foreign jurisdictions and state taxes. The provision for income taxes in the third quarter of fiscal 2016 and 2015 was $0.4 million and $1.4 million, respectively, and for the nine months ended July 31, 2016 and August 2, 2015 was $2.0 million and $3.3 million, respectively. The Company's quarterly provision for income taxes is measured using an estimated annual effective tax rate, adjusted for discrete items that occur within the periods presented.

The Company adjusts its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate, consistent with Accounting Standards Codification (“ASC”) 270, “Interim Reporting,” and ASC 740-270, “Income Taxes – Intra Period Tax Allocation.” Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. The Company's future effective tax rates could be affected by earnings being different than anticipated in countries with differing statutory rates, increases in recorded valuation allowances of tax assets, or changes in tax laws.

NOTE 8: Real Estate Transactions

Orange, CA

In March 2016, Volt Orangeca Real Estate Corp., an indirect wholly-owned subsidiary of the Company completed the sale of real property comprised of land and buildings with office space of approximately 191,000 square feet in Orange, California for a purchase price of $35.9 million. The Company entered concurrently into a Purchase and Sale Agreement (the “PSA”) and a Lease Agreement (the “Lease”) with Glassell Grand Avenue Partners, LLC (the “Buyer”), a limited liability company formed by Hines, a real estate investment and management firm, and funds managed by Oaktree Capital Management L.P., an investment management firm. The Buyer assigned the PSA and the Lease to Glassell Acquisitions Partners LLC, an affiliate, prior to the closing.

The transaction was accounted for as a sale-leaseback transaction and as an operating lease. The initial lease term is 15 years plus renewal options for two terms of five years each based on the greater of fair market value at the time of the renewal or the base annual rent payable during the last month of the then-current term immediately preceding the extended period. The annual base rent will be $2.9 million for the first year of the initial term and increase on each adjustment date by 3.0% of the then-current annual base rent. A security deposit of $2.1 million is required for the first year of the lease term which is secured by a letter of credit under the Company's existing Financing Program with PNC Bank National Association (“PNC”) and will subsequently be reduced if certain conditions are met. Accordingly, the gain on sale of $29.4 million will be deferred and recognized in proportion to the related gross rental charges to expense over the lease term. For the three months and nine months ended July 31, 2016, the amortization was $0.5 million and $0.8 million, respectively.

San Diego, CA

In March 2016, Volt Opportunity Road Realty Corp., an indirect wholly-owned subsidiary of the Company, completed the sale with a private commercial real estate investor of real property comprised of land and building with office space of approximately 19,000

10

square feet in San Diego, California for a purchase price of $2.2 million. The Company recognized a gain of $1.7 million from the transaction during the second quarter of 2016.

NOTE 9: Debt

In January 2016, the Company amended its $150.0 million Financing Program with PNC to (1) extend the termination date to January 31, 2017; (2) eliminate the interest coverage ratio and modify the liquidity level requirement; (3) reduce the minimum funding threshold, as defined, from 60% to 40%; and (4) revise pricing from a LIBOR based rate plus 1.75% per the prior agreement, to a LIBOR based rate plus 1.90% on outstanding borrowings, and to increase the facility fee from 0.65% to 0.70%. The Financing Program is secured by receivables from certain Staffing Services businesses in the United States, Europe and Canada that are sold to a wholly-owned, consolidated, bankruptcy remote subsidiary. The bankruptcy remote subsidiary's sole business consists of the purchase of the receivables and subsequent granting of a security interest to PNC under the program, and its assets are available first to satisfy obligations to PNC and are not available to pay creditors of the Company's other legal entities. Borrowing capacity under the Financing Program is directly impacted by the level of accounts receivable. At July 31, 2016, the accounts receivable borrowing base was $151.7 million. As of November 1, 2015, the Financing Program was classified as long-term debt on the Condensed Consolidated Balance Sheets, however, as of the end of the Company's first quarter of fiscal 2016, the Financing Program was classified as short-term as the termination date is within twelve months of the Company’s first quarter of fiscal 2016 balance sheet date.

The liquidity level requirement under our Financing Program set a minimum global liquidity level of $20.0 million at the origination of the facility in July 2015. Under the first amendment to the Financing Program, the liquidity level was increased from $20.0 million to $35.0 million effective January 31, 2016 and to $50.0 million effective July 31, 2016. The July 31st threshold was established assuming the Company completed certain liquidity events. In order to better align the covenants to the timing of certain liquidity events, in July 2016, the Company further amended the Financing Program to reduce the minimum liquidity covenant level from $50.0 million to $35.0 million for the period beginning July 31, 2016 through the earlier of: 1) the date of the sale of Maintech, if such is closed on or before September 30, 2016, and 2) October 30, 2016 thereafter it increases to $50.0 million. The amendment also adds a negative covenant prohibiting certain capital stock transactions by the Company through the earlier of: 1) the date of the sale of Maintech, if such is closed on or before September 30, 2016, and 2) October 31, 2016.

In addition to customary representations, warranties and affirmative and negative covenants, the program is subject to termination under standard events of default including change of control, failure to pay principal or interest, breach of the liquidity covenant, triggering of portfolio ratio limits, or other material adverse events as defined. At July 31, 2016, the Company was in compliance with all debt covenant requirements.

The Financing Program has a feature under which the facility limit can be increased from $150.0 million up to $250.0 million subject to credit approval from PNC. Borrowings are priced based upon a fixed program rate plus the daily adjusted one-month LIBOR index, as defined. The program also contains a revolving credit provision under which proceeds can be drawn for a definitive tranche period of 30, 60, 90 or 180 days priced at the adjusted LIBOR index rate in effect for that period. In addition to United States dollars, drawings can be denominated in Canadian dollars, subject to a Canadian dollar $30.0 million limit, and British Pounds Sterling, subject to a £20.0 million limit. The program also includes a letter of credit sublimit of $50.0 million and minimum borrowing requirements. As of July 31, 2016, there were no foreign currency denominated borrowings, and the letter of credit participation was $31.0 million inclusive of $28.9 million for the Company's casualty insurance program and $2.1 million for the security deposit required under the Orange facility lease agreement.

At July 31, 2016 and November 1, 2015, the Company had outstanding borrowing under this program of $90.0 million and $100.0 million, respectively, and bore a weighted average annual interest rate of 2.4% and 1.7% during the third quarter of fiscal 2016 and 2015, respectively, and 2.3% and 1.7% during the first nine months of fiscal 2016 and 2015, respectively, which is inclusive of certain facility fees. At July 31, 2016, there was $29.0 million additional availability under this program, exclusive of the availability under the aforementioned accordion feature.

In February 2016, Maintech, as borrower, entered into a $10.0 million364-day secured revolving credit agreement with Bank of America, N.A. The credit agreement provides for revolving loans as well as a $0.1 million sub-line for letters of credit and is subject to borrowing base and availability restrictions and requirements. The credit agreement is secured by assets of the borrower, including accounts receivable, and the Company has guaranteed the obligations of the borrower under the agreement not to exceed $3.0 million. The credit agreement contains certain customary representations and warranties, events of default and affirmative and negative covenants, including a minimum interest requirement based on $2.0 million drawn, which was the outstanding amount under this facility at July 31, 2016. At July 31, 2016, there was $3.4 million of additional availability under this program.

The borrower may optionally terminate the credit agreement and repay the borrowings prior to the expiration date, without premium or penalty at any time by the delivery of a notice to that effect as provided under the credit agreement. It is anticipated that the credit agreement will be terminated before a sale of the borrower. Borrowings will be used for working capital and general corporate

11

purposes. Interest under the credit agreement is one month LIBOR plus 2.75% on drawn amounts and a fixed rate of 0.375% on undrawn amounts.

In February 2016, Volt Orangeca Real Estate Corp., an indirect wholly-owned subsidiary of the Company, entered into a PSA for the sale of real property comprised of land and buildings with office space of approximately 191,000 square feet in Orange, California (the “Property”) for a purchase price of $35.9 million. The transaction closed in March 2016 with terms consistent with the PSA and the mortgage on the Property was repaid. At November 1, 2015, the Company had $7.3 million of a long-term term loan on this Property, of which $1.0 million was current at the period end date.

NOTE 10: Stock Compensation Plans    

2015 Equity Incentive Plan

On June 9, 2016, the stockholders of the Company approved the 2015 Equity Incentive Plan (the “2015 Plan”), which replaces the 2006 Incentive Stock Plan (the “2006 Plan”) that terminated on September 5, 2016. All outstanding shares granted under the 2006 Plan will remain valid. The 2015 Plan was previously adopted by the Board on October 19, 2015 and subsequently amended on January 13, 2016. The 2015 Plan authorizes the Board to award equity-based compensation in the form of (1) stock options, including incentive stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units (“RSUs”), (5) performance awards, (6) other stock-based awards, and (7) performance compensation awards. Subject to adjustment as provided in the 2015 Plan, up to an aggregate of 3,000,000 shares of the Company’s common stock may be issued or transferred in connection with awards granted thereunder.

During the third quarter of fiscal 2016, the Company granted an aggregate of 938,767 stock options and 253,271 RSUs under the 2015 Plan in addition to 26,031 stock options and 5,233 RSUs under the 2006 Plan. This was comprised of: (i) 782,748 stock options and 156,608 RSUs granted to certain employees including executive management as long term incentive awards, (ii) 182,050 stock options and 40,016 RSUs granted to the Chief Executive Officer which was subject to shareholder approval of the 2015 Plan pursuant to his employment agreement dated October 19, 2015 and (iii) 61,880 RSUs granted to members of the Board as part of their annual compensation.

The grants were based on the fair value at the grant date with a total fair value of approximately $3.8 million. The grants for the Board members vested immediately whereas the grants for the employees will vest in tranches ratably over three years provided the employees remain employed on each of those vesting dates. The weighted average fair value per unit for the RSUs was $6.06. Compensation expense for the vested units was recognized on the grant date. The stock options have a weighted average exercise price of $6.49 and expire 10 years from the initial grant date. Compensation expense for the stock options and units that were not immediately vested is recognized over the vesting period.

Determining Fair Value - Stock Options

The fair value of the option grant was estimated using the Black-Scholes option pricing model which requires estimates of key assumptions based on both historical information and management judgment regarding market factors and trends.

Expected volatility - We developed the expected volatility by using the historical volatilities of the Company for a period equal to the expected life of the option.

Expected term - We derived our expected term assumption based on the simplified method due to a lack of historical exercise data, which results in an expected term based on the midpoint between the graded vesting dates and contractual term of an option.

Risk-free interest rate - The rates are based on the average yield of a U.S. Treasury bond whose term was consistent with the expected life of the stock options.

Expected dividend yield - We have not paid and do not anticipate paying cash dividends on our shares of common stock; therefore, the expected dividend yield was assumed to be zero.

12

The weighted average assumptions used to estimate the fair value of stock options for the three months ended July 31, 2016 were as follows:

Fair value of stock option granted	$	2.32
Expected volatility	40.0		%
Expected term (in years)	6.0
Risk-free interest rate	1.29		%
Expected dividend yield	0.0		%

For the three months ended July 31, 2016, stock compensation expense related to these grants was approximately $0.6 million and was recognized in Selling, administrative and other operating costs in the Company’s Consolidated Statements of Operations. As of July 31, 2016, total unrecognized compensation expense of $3.2 million related to stock options and RSUs from these grants will be recognized over the remaining weighted average vesting period of 2.75 years, of which $0.6 million, $1.7 million, $0.7 million and $0.2 million is expected to be recognized in fiscal 2016, 2017, 2018 and 2019, respectively.

13

NOTE 11: Earnings (Loss) Per Share

Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts):

	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
Numerator
Loss from continuing operations	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(19,857	)
Loss from discontinued operations, net of income taxes	—			—			—			(4,519		)
Net loss	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(24,376	)
Denominator
Basic weighted average number of shares	20,846			20,741			20,824			20,821
Diluted weighted average number of shares	20,846			20,741			20,824			20,821
Basic:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations, net of income taxes	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)
Diluted:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations, net of income taxes	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)

Options to purchase 1,898,397 and 1,007,911 shares of the Company’s common stock were outstanding at July 31, 2016 and August 2, 2015, respectively. Additionally, there were 237,864 and 42,000 unvested restricted shares outstanding at July 31, 2016 and August 2, 2015, respectively. The options and restricted shares were not included in the computation of diluted earnings (loss) per share in the three and nine months of fiscal 2016 and 2015 because the effect of their inclusion would have been anti-dilutive as a result of the Company’s net loss position in those periods.

Note 12: Restructuring and Severance Costs

In November 2015, the Company implemented a cost reduction plan. In connection with the initial and ongoing plan to reduce costs, the Company estimates that it will incur restructuring charges of approximately $5.5 million in fiscal 2016, primarily resulting from a reduction in workforce, facility consolidation and lease termination costs.

14

The Company incurred total restructuring and severance costs of $1.0 million for the three months ended July 31, 2016 and $4.6 million for the nine months ended July 31, 2016. The following table presents the restructuring and severance costs for the three and nine months ended July 31, 2016 (in thousands):

	Three Months Ended		Nine Months Ended
	July 31, 2016		July 31, 2016
Staffing Services segment
Severance and benefit costs	$	571	$	1,928
Other	138		293
	709		2,221
Other segment
Severance and benefit costs	46		934
Corporate
Severance and benefit costs	215		1,416
Total restructuring and severance costs	$	970	$	4,571
Consolidated
Severance and benefit costs	$	832	$	4,278
Other	138		293
Total restructuring and severance costs	$	970	$	4,571

Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Condensed Consolidated Balance Sheets. Activity for the nine months ended July 31, 2016 are summarized as follows (in thousands):

Balance at November 1, 2015	$	—
Charged to expense	4,571
Cash payments	(3,607		)
Balance at July 31, 2016	$	964

The remaining charges as of July 31, 2016 for the Staffing Services and Other segments as well as Corporate of $0.7 million, $0.1 million and $0.2 million, respectively, are expected to be paid during fiscal 2016 and 2017.

NOTE 13: Commitments and Contingencies

(a) Legal Proceedings

The Company is involved in various claims and legal actions arising in the ordinary course of business. The Company’s loss contingencies consist primarily of claims and legal actions arising in the normal course of business related to contingent worker employment matters in the Staffing Services segment. These matters are at varying stages of investigation, arbitration or adjudication. The Company has accrued for losses on individual matters that are both probable and reasonably estimable.

Estimates are based on currently available information and assumptions. Significant judgment is required in both the determination of probability and the determination of whether a matter is reasonably estimable. The Company’s estimates may change and actual expenses could differ in the future as additional information becomes available.

NOTE 14: Segment Data

The Company’s operating segments are determined in accordance with the Company’s internal management structure, which is based on operating activities. The Company is currently assessing potential changes to its reportable segments in fiscal 2016 based on the new management organization and the changes anticipated by implementing new business strategies, including the initiatives to exit non-strategic and non-core operations.

Segment operating income (loss) is comprised of segment net revenues less direct cost of staffing services revenue or cost of other revenue, selling, administrative and other operating costs and restructuring and severance costs. The Company allocates all operating costs to the segments except for costs not directly relating to operating activities such as corporate-wide general and administrative

15

costs. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and they are not used by management to measure segment performance.

Commencing in the first quarter of fiscal 2016, the Company changed its methodology for the allocation of costs to more effectively reflect and measure the individual businesses' financial and operational efficiency.  Prior period segment results have been revised for these changes.

Financial data concerning the Company’s revenue and segment operating income (loss) by reportable operating segment for the three and nine months ended July 31, 2016 and August 2, 2015 are summarized in the following tables (in thousands):

	Three Months Ended July 31, 2016
	Total			Staffing Services		Other
Net revenue	$	330,490		$	313,428	$	17,062
Expenses
Direct cost of staffing services revenue	266,684			266,684		—
Cost of other revenue	15,110			—		15,110
Selling, administrative and other operating costs	41,367			39,926		1,441
Restructuring and severance costs	755			709		46
Segment operating income	6,574			6,109		465
Corporate general and administrative	8,345
Corporate restructuring and severance costs	215
Operating loss	$	(1,986	)

	Three Months Ended August 2, 2015
	Total			Staffing Services		Other
Net revenue	$	364,668		$	341,383	$	23,285
Expenses
Direct cost of staffing services revenue	287,554			287,554		—
Cost of other revenue	19,696			—		19,696
Selling, administrative and other operating costs	46,950			43,197		3,753
Restructuring and severance costs	400			341		59
Impairment charges	580			2,130		(1,550		)
Segment operating income	9,488			8,161		1,327
Corporate general and administrative	11,075
Corporate restructuring costs	1,467
Operating loss	$	(3,054	)

	Nine Months Ended July 31, 2016
	Total			Staffing Services		Other
Net revenue	$	992,759		$	939,356	$	53,403
Expenses
Direct cost of staffing services revenue	798,682			798,682		—
Cost of other revenue	47,785			—		47,785
Selling, administrative and other operating costs	127,042			122,676		4,366
Restructuring and severance costs	3,155			2,221		934
Segment operating income	16,095			15,777		318
Corporate general and administrative	26,977
Corporate restructuring and severance costs	1,416
Gain on sale of building	(1,663		)
Operating loss	$	(10,635	)

16

	Nine Months Ended August 2, 2015
	Total			Staffing Services		Other
Net revenue	$	1,132,923		$	1,064,481	$	68,442
Expenses
Direct cost of staffing services revenue	900,909			900,909		—
Cost of other revenue	59,210			—		59,210
Selling, administrative and other operating costs	148,354			137,721		10,633
Restructuring and severance costs	651			616		35
Impairment charges	5,954			3,107		2,847
Segment operating income (loss)	17,845			22,128		(4,283		)
Corporate general and administrative	29,873
Corporate restructuring and severance costs	2,442
Operating loss	$	(14,470	)

NOTE 15: Subsequent Event

On September 6, 2016, the Company amended its Financing Program to increase the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. The Company entered into this amendment to utilize the additional borrowing base provided by the current and potential growth in eligible accounts receivable balances.

On September 7, 2016, the Company's Human Resources and Compensation Committee of the Board of Directors approved the Volt Information Sciences, Inc. Annual Incentive Plan ("AIP"). The purpose of the AIP is to provide eligible employees with annual compensation opportunities intended to promote and reward both company and individual performances that are aligned with the overall company strategy.

17

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis (“MD&A”) of financial condition and results of operations is provided as a supplement to and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes to enhance the understanding of our results of operations, financial condition and cash flows. This MD&A should be read in conjunction with the MD&A included in our Form 10-K for the fiscal year ended November 1, 2015, as filed with the SEC on January 13, 2016 (the “2015 Form 10-K”). References in this document to “Volt,” “Company,” “we,” “us” and “our” mean Volt Information Sciences, Inc. and our consolidated subsidiaries, unless the context requires otherwise. The statements below should also be read in conjunction with the description of the risks and uncertainties set forth from time to time in our reports and other filings made with the SEC, including under Part I, “Item 1A. Risk Factors” of the 2015 Form 10-K.

Note Regarding the Use of Non-GAAP Financial Measures

We have provided certain Non-GAAP financial information, which includes adjustments for special items, as additional information for our consolidated income (loss) from continuing operations and segment operating income (loss). These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies. We believe that the presentation of Non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations because it permits evaluation of the results of our continuing operations without the effect of special items that management believes make it more difficult to understand and evaluate our results of operations.

Special items generally include impairments, restructuring and certain expenses or income not indicative of our current or future period performance. In addition, as a result of our Company's strategic reorganization, which included changes to executive management and the Board of Directors as well as the ongoing execution of new strategic initiatives, certain charges were identified as "special items" which were not historically common operational expenditures for us. Such charges included professional search fees, certain board compensation and other professional service fees. While we believe that the inclusion of these charges as special items were useful in the evaluation of our results compared to prior periods, we do not anticipate that these items will be included in our Non-GAAP measure comparative in the future.

Overview

We are a global provider of staffing services (traditional time and materials-based as well as project-based), and information technology infrastructure services. Our staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services, and managed staffing services programs supporting primarily light industrial, professional administration, technical, information technology and engineering positions. Our project-based staffing assists with individual customer assignments as well as customer care call centers and gaming industry quality assurance testing services. Our managed service programs consist of managing the procurement and on-boarding of contingent workers from multiple providers. Our information technology infrastructure services (“Maintech”) provide server, storage, network and desktop IT hardware maintenance, data center and network monitoring and operations.

As of July 31, 2016, we employed approximately 26,000 people, including 23,800 contingent workers. Contingent workers are on our payroll for the length of their assignment. We operate from 110 locations worldwide with approximately 85% of our revenues generated in the United States. Our principal international markets include Canada, Europe and several Asia Pacific locations. The industry is highly fragmented and very competitive in all of the markets we serve.

Results of Continuing Operations

The following discussion and analysis of operating results is presented at the reporting segment level. Since this discussion would be substantially the same at the consolidated level, we have therefore not included a redundant discussion.  

18

RESULTS OF CONTINUING OPERATIONS

Consolidated Results by Segment

	Three Months Ended July 31, 2016							Three Months Ended August 2, 2015
(in thousands)	Total			Staffing Services		Other		Total			Staffing Services		Other
Net revenue	$	330,490		$	313,428	$	17,062	$	364,668		$	341,383	$	23,285
Expenses
Direct cost of staffing services revenue	266,684			266,684		—		287,554			287,554		—
Cost of other revenue	15,110			—		15,110		19,696			—		19,696
Selling, administrative and other operating costs	41,367			39,926		1,441		46,950			43,197		3,753
Restructuring and severance costs	755			709		46		400			341		59
Impairment charges	—			—		—		580			2,130		(1,550		)
Segment operating income	6,574			6,109		465		9,488			8,161		1,327
Corporate general and administrative	8,345							11,075
Corporate restructuring and severance costs	215							1,467
Operating loss	(1,986		)					(3,054		)
Other income (expense), net	(2,231		)					261
Income tax provision	393							1,351
Net loss from continuing operations	$	(4,610	)					$	(4,144	)

Results of Operations (Q3 2016 vs. Q3 2015)

Staffing Services

Net revenue: The segment’s net revenue in the third quarter of fiscal 2016 decreased$28.0 million, or 8.2%, to $313.4 million from $341.4 million in fiscal 2015. The revenue decline was primarily driven by our traditional staffing, project-based and managed services programs. In our traditional staffing offering, we experienced both lower demand from our customers in our technical skill sets as well as a change in the overall mix from technical to A&I skill sets. Declines were most prevalent with our customers in the industrial and commercial manufacturing and utility industries, partially offset by increases in transportation manufacturing, communications and retail apparel industries. Project-based programs experienced decreases primarily attributed to lower volume from a large customer in both our application testing and call center service offerings. Managed services programs experienced a decrease primarily due to lower volume as well as our decision not to pursue continued business with certain customers. Additionally, the decrease was partially attributed to unprofitable businesses that were either sold or shutdown during the latter part of 2015 and in 2016.

Direct cost of staffing services revenue: Direct cost of staffing services revenue in the third quarter of 2016 decreased$20.9 million, or 7.3%, to $266.7 million from $287.6 million in 2015. The decrease was primarily the result of fewer contingent staff on assignment within our traditional staffing business as well as a reduction in revenues in our project-based and managed services programs. Direct margin of staffing services revenue as a percent of staffing revenue was 14.9% compared to 15.8% in 2015. Despite an increase in our traditional staffing direct margin percentage from 2015, the decline in direct margin percentage was primarily experienced in our higher margin project-based programs.

Selling, administrative and other operating costs: The segment’s selling, administrative and other operating costs in the third quarter of 2016 decreased$3.3 million, or 7.6%, to $39.9 million from $43.2 million in 2015, primarily due to lower headcount as part of our cost reduction efforts across all businesses and the impact of the sale of our Uruguayan staffing business during the first quarter of 2016. As a percent of staffing revenue, these costs were 12.7% in both the third quarter of 2016 and 2015.

Impairment charges: The $2.1 million impairment charge during 2015 is primarily related to an impairment of previously capitalized internally developed software as it was no longer expected to provide future value in light of an anticipated technology upgrade.

Segment operating income: The segment’s operating income in the third quarter of 2016 decreased$2.1 million to $6.1 million from $8.2 million in 2015. The decrease in operating income is primarily due to a decline in the results of our project-based programs and managed services programs due to the decline in revenue and related direct margin, partially offset by the increase in direct margins in our traditional staffing services, reductions in selling, administrative and other operating costs as well as impairment charges.

19

Operating income in 2016 of $6.1 million included $0.7 million of a special item related restructuring and severance costs. Excluding the impact of this special item, segment operating income would have been $6.8 million on a Non-GAAP basis. Operating income in 2015 of $8.2 million included $2.5 million of special items related to impairment charges and restructuring and severance costs. Excluding the impact of these special items, segment operating income would have been $10.7 million on a Non-GAAP basis.

Other

Net revenue: The segment’s net revenue in the third quarter of fiscal 2016 decreased$6.2 million, or 26.7%, to $17.1 million from $23.3 million in fiscal 2015. This decline is primarily due to the sale of our telephone directory publishing and printing business (“printing”) in the third quarter of 2015 and the sale of substantially all of the assets of the telecommunications infrastructure and security services business (“VTG”) in the fourth quarter of 2015. The remaining decrease was attributable to our information technology infrastructure services business due in part to lower volume from one of our aeronautical defense contractor customers resulting from decreased federal funding as well as in our sub-contractor revenue solution as the prime contractor was not awarded contract renewals.

Cost of other revenue: The segment’s cost of other revenue in the third quarter of 2016 decreased$4.6 million, or 23.3%, to $15.1 million from $19.7 million in 2015. This decrease is primarily due to the sale of our printing and VTG businesses as discussed above as well as the decrease in our information technology infrastructure services business.

Selling, administrative and other operating costs: The segment’s selling, administrative and other operating costs decreased$2.4 million, or 61.6%, to $1.4 million in the third quarter of 2016 from $3.8 million in 2015, primarily in our information technology infrastructure services business in response to the decrease in revenue and lower legal fees as well as the sales of our printing and VTG businesses as discussed above.

Impairment charges: In the third quarter of 2015, an adjustment of $1.6 million was recorded to the impairment charge recorded in the second quarter of 2015 related to valuation allowances on impaired deferred tax assets.  

Segment operating income: The segment’s operating income in the third quarter of 2016 decreased $0.8 million to $0.5 million from $1.3 million in 2015 primarily from the impairment charge recorded in 2015 as well as the sale of our printing business.

Corporate and Other Expenses

Corporate general and administrative: Corporate general and administrative costs in the third quarter of 2016 decreased$2.8 million, or 24.7%, to $8.3 million from $11.1 million in 2015 primarily from decreased stock-based compensation as compared to the amount provided to our new Board of Directors in 2015 and professional fees.

Operating loss: Operating loss in the third quarter of 2016 decreased to $2.0 million from $3.1 million in 2015. This decrease was primarily from a reduction of our Corporate general and administrative costs, decreased restructuring and severance costs as well as the absence of impairment charges in the third quarter of 2016, partially offset by a decrease in operating results from our Staffing Services segment.

Other income (expense), net: Other income (expense) in the third quarter of 2016 decreased$2.5 million to other expense of $2.2 million from other income of $0.3 million in 2015, primarily related to fluctuation in European currency rates, closure of a foreign subsidiary and non-cash foreign exchange net losses on intercompany balances.

Income tax provision: Income tax provision was $0.4 million compared to $1.4 million in the third quarter of 2016 and 2015, respectively. The provision in both periods primarily related to locations outside of the United States.

20

Consolidated Results by Segment

	Nine Months Ended July 31, 2016							Nine Months Ended August 2, 2015
(in thousands)	Total			Staffing Services		Other		Total			Staffing Services		Other
Net revenue	$	992,759		$	939,356	$	53,403	$	1,132,923		$	1,064,481	$	68,442
Expenses
Direct cost of staffing services revenue	798,682			798,682		—		900,909			900,909		—
Cost of other revenue	47,785			—		47,785		59,210			—		59,210
Selling, administrative and other operating costs	127,042			122,676		4,366		148,354			137,721		10,633
Restructuring and severance costs	3,155			2,221		934		651			616		35
Impairment charges	—			—		—		5,954			3,107		2,847
Segment operating income (loss)	16,095			15,777		318		17,845			22,128		(4,283		)
Corporate general and administrative	26,977							29,873
Corporate restructuring and severance costs	1,416							2,442
Gain on sale of building	(1,663		)					—
Operating loss	(10,635		)					(14,470		)
Other income (expense), net	(4,685		)					(2,125		)
Income tax provision	2,037							3,262
Net loss from continuing operations	$	(17,357	)					$	(19,857	)

Results of Operations (Q3 2016 YTD vs. Q3 2015 YTD)

Staffing Services

Net revenue: The segment’s net revenue in the first nine months of fiscal 2016 decreased$125.1 million, or 11.8%, to $939.4 million from $1,064.5 million in fiscal 2015. The revenue decline is primarily driven by our traditional staffing, project-based and managed services programs. In our traditional staffing offering, we experienced both lower demand from our customers in both our technical and non-technical A&I skill sets as well as a change in overall mix from technical to A&I skill sets. Declines were most prevalent with our customers in the industrial and commercial manufacturing (primarily supporting the oil and gas industry) and utility industries, partially offset by increases in transportation manufacturing, communications and retail apparel industries. Project-based programs experienced decreases primarily attributed to lower volume from a large customer in both our application testing and call center service offerings. Managed services programs experienced lower volume as well as a decrease primarily from our decision not to pursue continued business with certain customers. Additionally, the decrease was partially attributed to unprofitable businesses that were either sold or shutdown during the latter part of 2015 and in 2016.

Direct cost of staffing services revenue: Direct cost of staffing services revenue in the first nine months of 2016 decreased$102.2 million, or 11.3%, to $798.7 million from $900.9 million in 2015. The decrease was primarily the result of fewer contingent staff on assignment within our traditional staffing business as well as a reduction in revenues in our project-based and managed services programs. Direct margin of staffing services revenue as a percent of staffing revenue in 2016 was 15.0% from 15.4% in 2015. Despite a slight increase in our traditional staffing direct margin percentage from 2015, the decline in direct margin percentage was primarily experienced in our higher margin project-based programs.

Selling, administrative and other operating costs: The segment’s selling, administrative and other operating costs in the first nine months of 2016 decreased$15.0 million, or 10.9%, to $122.7 million from $137.7 million in 2015, primarily due to lower headcount as part of our cost reduction efforts across all businesses and the impact of the sale of our Uruguayan staffing business during the first quarter of 2016. As a percent of staffing services revenue, these costs were 13.1% and 12.9% for 2016 and 2015, respectively.

Restructuring and severance costs: The segment's restructuring and severance costs were $2.2 million and $0.6 million in the first nine months of 2016 and 2015, respectively. These costs, primarily severance, were incurred as part of our overall cost reduction plan.

Impairment charges: The $3.1 million charge during 2015 is a result of impairment of previously capitalized internally developed software resulting from an approved plan to upgrade a certain portion of our front office technology as well as our annual impairment test for goodwill during the second quarter of 2015 related to our staffing reporting unit in Uruguay.

21

Segment operating income: The segment’s operating income in the first nine months of 2016 decreased$6.3 million to $15.8 million from $22.1 million in 2015. The decrease in operating income is primarily due to a decline in the results of our project-based programs and managed services programs due to the decline in revenue and related direct margin, partially offset by reductions in selling, administrative and other operating costs as well as impairment charges. Operating income in 2016 of $15.8 million included a special item related to restructuring and severance costs of $2.2 million. Excluding the impact of this special item, segment operating income would have been $18.0 million on a Non-GAAP basis. Operating income in 2015 of $22.1 million included $3.7 million of special items related to impairment charges of $3.1 million and restructuring and severance costs of $0.6 million. Excluding the impact of these special items, segment operating income would have been $25.8 million on a Non-GAAP basis.

Other

Net revenue: The segment’s net revenue in the first nine months of fiscal 2016 decreased$15.0 million, or 22.0%, to $53.4 million from $68.4 million in fiscal 2015. This decline is primarily due to the sale of our printing business in the third quarter of 2015 and the sale of substantially all of the assets of the VTG business in the fourth quarter of 2015. The remaining decrease was attributable to our information technology infrastructure services business due in part to lower volume from one of our aeronautical defense contractor customers resulting from decreased federal funding as well as in our sub-contractor revenue solution as the prime contractor was not awarded contract renewals.

Cost of other revenue: The segment’s cost of other revenue in the first nine months of 2016 decreased$11.4 million, or 19.3%, to $47.8 million from $59.2 million in 2015. The decrease is primarily due to the sale of our printing and VTG businesses as discussed above as well as the decrease in our information technology infrastructure services business.

Selling, administrative and other operating costs: The segment’s selling, administrative and other operating costs decreased$6.2 million, or 58.9%, to $4.4 million in the first nine months of 2016 from $10.6 million in 2015, primarily from the sales of our printing and VTG businesses as discussed above as well as in our information technology infrastructure services business in response to the decrease in revenue as well as lower legal fees.

Restructuring and severance costs: The segment's restructuring and severance costs were $0.9 million in the first nine months of 2016. These costs, primarily severance, were incurred in response to the decrease in revenue.

Impairment charges: In conjunction with the initiative to potentially exit certain non-core operations, we performed an assessment in 2015 of the telephone directory publishing and printing business in Uruguay. Consequently, the net assets of the business of $2.8 million were fully impaired.

Segment operating income (loss): The segment’s operating results in the first nine months of 2016 increased $4.6 million to operating income of $0.3 million compared with an operating loss of $4.3 million in 2015 primarily from the impairment charge recorded in 2015, the sale of our printing business as well as decreased results in our information technology infrastructure services business primarily from lower volume from one of our aeronautical defense contractor customers resulting from decreased federal funding as well as in our sub-contractor revenue solution as the prime contractor was not awarded contract renewals.

Corporate and Other Expenses

Corporate general and administrative: Corporate general and administrative costs decreased$2.9 million, or 9.7%, to $27.0 million from $29.9 million in 2015 primarily from a decrease in costs incurred in connection with responding to activist shareholders and related Board of Directors' search fees, decreased stock-based compensation as compared to what was provided to our new Board of Directors in 2015 as well as a decrease in audit fees, partially offset in the current year for costs incurred in executive search and consulting fees on corporate-wide initiatives linked to our turn-around strategies.

Corporate restructuring and severance costs: Corporate restructuring and severance costs in the first nine months of fiscal 2016 included $1.4 million of severance costs incurred as part of our overall cost reduction plan. Corporate restructuring costs in the first nine months of fiscal 2015 included $2.4 million of severance charges associated with the departure of our former Chief Executive Officer and Chief Financial Officer.

Gain on sale of building: Volt Opportunity Road Realty Corp., an indirect wholly-owned subsidiary of Volt, closed on the sale of real property comprised of land and building in San Diego, California during the second quarter of 2016. There was no mortgage on the property and the gain recorded on the sale was $1.7 million.

Operating loss: Operating loss in the first nine months of 2016 decreased to $10.6 million from $14.5 million in 2015. The decrease in operating loss was primarily from impairments within our Staffing Services and Other segments in 2015, the decrease in selling,

22

administrative and other operating costs and the gain on the sale of our building in San Diego, California. These items were partially offset by the decrease in operating results from our Staffing Services segment.

Other income (expense), net: Other expense in the first nine months of 2016 increased $2.6 million to $4.7 million from $2.1 million in 2015, primarily due to non-cash foreign exchange net losses on intercompany balances as well as the amortization of deferred financing fees.

Income tax provision: Income tax provision was $2.0 million compared to $3.3 million in the first nine months of 2016 and 2015, respectively. The provision in both periods primarily related to locations outside of the United States.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash flows from operations and proceeds from our Financing Program. Borrowing capacity under this program is directly impacted by the level of accounts receivable which fluctuates during the year due to seasonality and other factors. Our business is subject to seasonality with fiscal first quarter billings typically the lowest due to the holiday season and generally increasing in the fiscal third and fourth quarters when our customers increase the use of contingent labor. Generally, the first and fourth quarters of our fiscal year are the strongest for operating cash flows. In February 2016, Maintech entered into a $10.0 million short-term credit facility with Bank of America, N.A. (“BofA”), which supplements our existing Financing Program and provides additional liquidity for working capital and general corporate purposes.

Our operating cash flows consist primarily of collections of customer receivables offset by payments for payroll and related items for our contingent staff and in-house employees; federal, foreign, state and local taxes; and trade payables. We generally provide customers with 30 - 45 day credit terms, with few extenuating exceptions to 60 days, while our payroll and certain taxes are paid weekly.

We manage our cash flow and related liquidity on a global basis. We fund payroll, taxes and other working capital requirements using cash supplemented as needed from short-term borrowings. Our weekly payroll payments inclusive of employment related taxes and payments to vendors approximates $20.0 million. We generally target minimum global liquidity to be 1.5 to 2.0 times our average weekly requirements. We also maintain minimum effective cash balances in foreign operations and use a multi-currency netting and overdraft facility for our European entities to further minimize overseas cash requirements.

Our current Financing Program provides for a minimum liquidity covenant which is measured weekly and consists of cash in banks plus undrawn amounts of the program. Under the current amendment to our Financing Program, the required minimum liquidity covenant level is $35.0 million through the earlier of 1) the date of the sale of the Company's subsidiary, Maintech, if such sale is closed on or before September 30, 2016, and 2) October 30, 2016, thereafter it increases to $50.0 million. This places restrictions on our ability to utilize this cash. As of July 31, 2016, our global liquidity, as defined in our debt agreement, was $49.3 million and at September 2, 2016 was $43.2 million. On September 6, 2016, we amended our Financing Program to increase the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. We entered into this amendment to utilize the additional borrowing base provided by the current and potential growth in eligible accounts receivable balances.

Our current Financing Program expires on January 31, 2017 and we are currently in discussions with our lender to potentially extend the Program for sixteen months with revised covenants. We also continue to actively pursue longer term financing and are exploring alternative financing arrangements. We believe our cash flow from operations and planned liquidity will be sufficient to meet our cash needs for the next twelve months.

Capital Allocation

In addition to our planned improvements in technology, we have prioritized our capital allocation strategy to strengthen our balance sheet and increase our competitiveness in the marketplace. The timing of these initiatives is highly dependent upon attaining the profitability objectives outlined in our plan and the cash flow resulting from the completion of our liquidity initiatives. We also see this as an opportunity to demonstrate our ongoing commitment to Volt shareholders as we continue to execute on our plan and return to sustainable profitability. Our capital allocation strategy includes the following elements:

• Maintaining appropriate levels of working capital. Our business requires a certain level of cash resources to efficiently execute operations. Consistent with similar companies in our industry and operational capabilities, we estimate this amount to be 1.5 to 2.0 times our weekly cash distributions on a global basis and must accommodate seasonality and cyclical trends;

• Reinvesting in our business. We are executing a company-wide initiative to reinvest in our business including new information technology systems which will support our front-end recruitment and placement capabilities as well as increase

23

efficiencies in our back-office financial suite. We are also investing in our sales and recruiting process and resources, which will enhance our ability to win in the marketplace;

• Deleveraging our balance sheet. By lowering our debt level, we will strengthen our balance sheet, reduce interest costs and reduce risk going forward;

• Returning capital to shareholders. Part of our strategy is to return capital to our shareholders in connection with share buybacks through our existing share buyback program; and

• Acquiring value-added businesses. Potentially in the longer-term identifying and acquiring companies which would be accretive to our operating income and that could leverage Volt's scale, infrastructure and capabilities. Strategic acquisitions would strengthen Volt in certain industry verticals or in specific geographic locations.

Initiatives to Improve Operating Income, Cash Flows and Liquidity

We continue to make progress on several initiatives undertaken to enhance our liquidity position and shareholder value. We continue to actively manage our portfolio of business units and have exited both non-core businesses that were incurring losses and core businesses that were marginally profitable. We completed a number of significant divestitures in the latter part of fiscal 2015 and the first quarter of 2016, including the sale of our printing and staffing businesses in Uruguay, and the sale of substantially all the assets of our telecommunications, infrastructure and security services business. The above transactions netted nominal proceeds, however, we expect these transactions will be accretive to future operating cash flows.

We sold and simultaneously entered into a lease on our Orange, California property in March 2016 for a purchase price of $35.9 million. After the repayment of the mortgage on the property along with transaction-related expenses and fees, we received net cash proceeds of $27.1 million from the sale of the property. The lease on the property will expire in March 2031 with an annual base rent of $2.9 million for the first year with a 3.0% annual increase on the then-current base rent. The net proceeds from the sale will be used to ensure adequate levels of liquidity for working capital purposes, as well as to fund investments in technology and sales and marketing activities in support of our growth objectives.

As previously disclosed, we are engaged in a sales process of our Maintech business. We expect to consummate an acceptable transaction with a buyer over the next several months or we will continue to operate the business as part of our overall business. Maintech’s business is accretive to our overall net income, cash flow and liquidity.

In March 2016, Volt Opportunity Road Realty Corp., an indirect wholly-owned subsidiary of Volt, closed on the sale of real property comprised of land and building with office space of approximately 19,000 square feet in San Diego, California with a private commercial real estate investor. There was no mortgage on the property and net proceeds, after transaction-related expenses and fees, totaled $2.0 million.

We have significant tax benefits. Included in our recoverable income taxes of $17.2 million is $16.0 million from the filing of our amended tax returns for our fiscal years 2004 through 2010. We have fully completed the audit process and are waiting for the IRS to submit the results of the audits to their Joint Committee. As we cannot control the internal process at the IRS and their disbursement of funds, we cannot predict the timing of resolution. We expect to wrap-up the process with the IRS in the next quarter or two. Entering fiscal 2016 we also have federal net operating loss carryforwards, which are fully reserved with a valuation allowance of $133.6 million, capital loss carryforwards of $82.3 million and federal tax credits of $41.3 million which we will be able to utilize against future profits.

We remain committed to delivering superior client service at a reasonable cost. In an effort to reduce our future operating costs, we are making a significant investment to update our business processes, back-office financial suite and information technology tools that are critical to our success and offer more functionality at a lower cost. We are making progress and intend to complete the project over the next several quarters with an estimated cost of approximately $12.0 million in expensed and capitalized costs. We expect that these activities will reduce costs of service through either the consolidation and/or elimination of certain systems and processes along with other reductions in discretionary spending. Through our strategy of improving efficiency in all aspects of our operations, we believe we can realize organic growth opportunities, reduce costs and increase profitability.

In the first quarter of fiscal 2016, we implemented a cost reduction plan as part of our overall initiative to become more efficient, competitive and profitable. We incurred restructuring charges of $3.6 million, excluding our Other segment, primarily resulting from a reduction in workforce, facility consolidation and lease termination costs. Actions taken in the first nine months of fiscal 2016 will result in annual savings of approximately $13.0 million. Consistent with our ongoing strategic efforts, cost savings will be used to strengthen our operations.

24

The following table sets forth our cash and available liquidity levels at the end of our last five quarters and our most recent week ended (in thousands):

Global Liquidity
	August 2, 2015		November 1, 2015		January 31, 2016		May 1, 2016		July 31, 2016		September 2, 2016
Cash and cash equivalents (a)	$	12,332	$	10,188	$	16,515	$	23,171	$	12,886
Cash in banks (b)	$	18,134	$	13,652	$	21,140	$	29,626	$	16,918	$	16,631
Financing Program - PNC	8,900		35,700		23,584		26,053		28,986		23,986
Short-Term Credit Facility - BofA	—		—		—		3,105		3,359		2,615
Available liquidity	$	27,034	$	49,352	$	44,724	$	58,784	$	49,263	$	43,232

(a) Per financial statements.

(b) Amount generally includes unpresented checks.

Cash flows from operating, investing and financing activities, as reflected in our Condensed Consolidated Statements of Cash Flows, are summarized in the following table (in thousands):

	Nine Months Ended
	July 31, 2016			August 2, 2015
Net cash provided by (used in) operating activities	$	(1,315	)	$	16,106
Net cash provided by (used in) investing activities	22,607			(4,301		)
Net cash provided by (used in) financing activities	(16,056		)	1,750
Effect of exchange rate changes on cash and cash equivalents	(2,538		)	(3,679		)
Net cash used in discontinued operations	—			(4,056		)
Net increase in cash and cash equivalents	$	2,698		$	5,820

Cash Flows - Operating Activities

The net cash used in operating activities in the first nine months ended July 31, 2016 was $1.3 million, a decrease of $17.4 million from the same period in 2015. This decrease resulted primarily from decreased working capital relating to accounts receivable, restricted cash, net assets held for sale and income taxes partially offset by accounts payable and accrued expenses and other liabilities (accrued insurance and other). In addition, there was an increase in our net loss when adjusted for non-cash items related to impairment charges, gain on dispositions of property and equipment and unrealized foreign currency exchange loss.

Cash Flows - Investing Activities

The net cash provided by investing activities in the first nine months ended July 31, 2016 was $22.6 million, principally from the sale of property and equipment of $36.8 million, partially offset by the purchases of property, equipment and software of $13.6 million primarily relating to our investment in updating our business processes, back-office financial suite and information technology tools. The net cash used in investing activities in the first nine months ended August 2, 2015 was $4.3 million, principally from the purchase of property, equipment and software of $5.1 million.

Cash Flows - Financing Activities

The net cash used in financing activities in the first nine months ended July 31, 2016 was $16.1 million principally from the net repayment of borrowings of $8.0 million and repayment of long-term debt of $7.3 million as a result of the sale-leaseback of our Orange, California facility. The net cash provided by financing activities in the first nine months of 2015 was $1.8 million resulting from the elimination of cash restricted as collateral for borrowings of $10.4 million, partially offset by $4.3 million for the purchase of common stock and the net repayment of borrowings of $3.5 million.

25

Availability of Credit

At July 31, 2016 and November 1, 2015, our Financing Program provided for multi-currency borrowing and issuance of letters of credit up to an aggregate of $150.0 million, and up to $250.0 million under an accordion feature, subject to bank credit review and Volt board approval. At July 31, 2016 and November 1, 2015, we had outstanding borrowings of $90.0 million and $100.0 million, respectively, under the Financing Program and bore a weighted average annual interest rate of 2.3% and 1.7%, respectively, inclusive of certain facility fees.

In February 2016, Maintech entered into a $10.0 million 364-day short-term revolving credit facility with Bank of America, N.A., as lender. The provisions of the agreement will not preclude structuring and other activities required in anticipation of our sale of Maintech. As of July 31, 2016, the amount drawn under this facility was $2.0 million.

Financing Program

In January 2016, we amended our $150.0 million Financing Program with PNC Bank, National Association (“PNC”) to (1) extend the termination date to January 31, 2017; (2) eliminate the interest coverage ratio and modify the liquidity level requirement; (3) reduce the minimum funding threshold, as defined, from 60% to 40%, and (4) revise pricing from a LIBOR based rate plus 1.75% per the prior agreement, to a LIBOR based rate plus 1.90% on outstanding borrowings, and to increase the facility fee from 0.65% to 0.70%. The Financing Program is secured by receivables from certain Staffing Services businesses in the United States, Europe and Canada that are sold to a wholly-owned, consolidated, bankruptcy remote subsidiary. The subsidiary's sole business consists of the purchase of the receivables and subsequent granting of a security interest to PNC under the program, and its assets are available first to satisfy obligations to PNC and are not available to pay creditors of our other legal entities. Borrowing capacity under the Financing Program is directly impacted by the level of accounts receivable. As of November 1, 2015, the Financing Program was classified as long-term debt on the Condensed Consolidated Balance Sheets, however, as of the end of our fiscal first quarter 2016, the Financing Program was classified as short-term as the termination date is within twelve months of our first quarter 2016 balance sheet date.

The liquidity level requirement under our Financing Program set a minimum global liquidity level of $20.0 million at the origination of the facility in July 2015. Under the first amendment to the Financing Program, the liquidity level was increased from $20.0 million to $35.0 million effective January 31, 2016 and to $50.0 million effective July 31, 2016. The July 31st threshold was established assuming we completed certain liquidity events. In order to better align the covenants to the timing of certain liquidity events, in July 2016, we further amended the Financing Program to reduce the minimum liquidity covenant level from $50.0 million to $35.0 million for the period beginning July 31, 2016 through the earlier of: 1) the date of the sale of the Company's subsidiary, Maintech Incorporated, if such is closed on or before September 30, 2016, and 2) October 30, 2016. The amendment also adds a negative covenant prohibiting certain capital stock transactions by us through the earlier of: 1) the date of the sale of our subsidiary, Maintech Incorporated, if such is closed on or before September 30, 2016, and 2) October 31, 2016.

In addition to customary representations, warranties and affirmative and negative covenants, the program is subject to termination under standard events of default including change of control, failure to pay principal or interest, breach of the liquidity covenant, triggering of portfolio ratio limits, or other material adverse events as defined. At July 31, 2016, we were in compliance with all debt covenant requirements.

The Financing Program has a feature under which the facility limit can be increased from $150.0 million up to $250.0 million subject to credit approval from PNC. Borrowings are priced based upon a fixed program rate plus the daily adjusted one-month LIBOR index, as defined. The program also contains a revolving credit provision under which proceeds can be drawn for a definitive tranche period of 30, 60, 90 or 180 days priced at the adjusted LIBOR index rate in effect for that period. In addition to United States dollars, drawings can be denominated in Canadian dollars, subject to a Canadian dollar $30.0 million limit, and British Pounds Sterling, subject to a £20.0 million limit. The program also includes a letter of credit sublimit of $50.0 million and minimum borrowing requirements. As of July 31, 2016, there were no foreign currency denominated borrowings, and the letter of credit participation was $31.0 million inclusive of $28.9 million for the Company's casualty insurance program and $2.1 million for the security deposit required under the Orange facility lease agreement.

On September 6, 2016, we amended our Financing Program to increase the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. We entered into this amendment to utilize the additional borrowing base provided by the current and potential growth in eligible accounts receivable balances.

Bank of America Short-Term Credit Facility

In February 2016, Maintech, Incorporated, an indirect wholly-owned subsidiary of Volt, as borrower, entered into a $10.0 million 364-day secured revolving credit agreement with Bank of America, N.A. The credit agreement provides for revolving loans as well as a $0.1 million sub-line for letters of credit and is subject to borrowing base and availability restrictions and requirements. The credit

26

agreement is secured by assets of the borrower, including accounts receivable, and the Company has guaranteed the obligations of the borrower under the agreement not to exceed $3.0 million. The credit agreement contains certain customary representations and warranties, events of default and affirmative and negative covenants.

The borrower may optionally terminate the credit agreement and repay the borrowings prior to the expiration date, without premium or penalty at any time by the delivery of a notice to that effect as provided under the credit agreement. It is anticipated that the credit agreement will be terminated before a sale of the borrower. Borrowings will be used for working capital and general corporate purposes. Interest under the credit agreement is one month LIBOR plus 2.75% on drawn amounts and a fixed rate of 0.375% on undrawn amounts.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information in this section should be read in conjunction with the information on financial market risk related to non-U.S. currency exchange rates, changes in interest rates and other financial market risks in Part II, Item 7A., “ Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended November 1, 2015.

Market risk is the potential economic gain or loss that may result from changes in market rates and prices. In the normal course of business, the Company’s earnings, cash flows and financial position are exposed to market risks relating to the impact of interest rate changes, foreign currency exchange rate fluctuations and changes in the market value of financial instruments. We limit these risks through risk management policies and procedures.

Interest Rate Risk

We centrally manage our debt and investment portfolios considering investment opportunities and risks, tax consequences and overall financing strategies. At July 31, 2016, we had cash and cash equivalents on which interest income is earned at variable rates. At July 31, 2016, we had a $150.0 million accounts receivable securitization program, which can be increased up to $250.0 million subject to credit approval from PNC, to provide additional liquidity to meet our short-term financing needs. In addition, we have a $10.0 million secured revolving credit facility with Bank of America, N.A. which provides additional liquidity to meet our short-term financing needs.

The interest rates on these borrowings and financings are variable and, therefore, interest and other expense and interest income are affected by the general level of U.S. and foreign interest rates. Based upon the current levels of cash invested, notes payable to banks and utilization of the securitization program, on a short-term basis, a hypothetical 1-percentage-point increase in interest rates would have increased net interest expense by $0.7 million and a hypothetical 1-percentage-point decrease in interest rates would have decreased net interest expense by $0.9 million in the third quarter of fiscal 2016.

Foreign Currency Risk

We have operations in several foreign countries and conduct business in the local currency in these countries. As a result, we have risk associated with currency fluctuations as the value of foreign currencies fluctuates against the dollar, in particular the British Pound (see Item 1A. Risk Factors for further discussion), Euro, Canadian Dollar and Indian Rupee. These fluctuations impact reported earnings.

Fluctuations in currency exchange rates also impact the U.S. dollar amount of our net investment in foreign operations. The assets and liabilities of our foreign subsidiaries are translated into U.S. dollars at the exchange rates in effect at the fiscal period-end balance sheet date. Income and expense accounts are translated at an average exchange rate during the year which approximates the rates in effect at the transaction dates. The resulting translation adjustments are recorded in stockholders’ equity as a component of accumulated other comprehensive loss. The U.S. dollar strengthened relative to many foreign currencies as of July 31, 2016 compared to November 1, 2015. Consequently, stockholders’ equity decreased by $1.1 million as a result of the foreign currency translation as of July 31, 2016.

Based upon the current levels of net foreign assets, a hypothetical 10% devaluation of the U.S. dollar as compared to these currencies as of July 31, 2016 would result in an approximate $1.2 million positive translation adjustment recorded in other comprehensive loss within stockholders’ equity. Conversely, a hypothetical 10% appreciation of the U.S. dollar as compared to these currencies as of July 31, 2016 would result in an approximate $1.2 million negative translation adjustment recorded in other comprehensive loss within stockholders’ equity. We do not use derivative instruments for trading or other speculative purposes.

27

Equity Risk

Our investments are exposed to market risk as they relate to changes in market value. We hold investments primarily in mutual funds for the benefit of participants in our non-qualified deferred compensation plan. Changes in the market value of these investments result in offsetting changes in our liability under the non-qualified deferred compensation plans as the employees realize the rewards and bear the risks of their investment selections. At July 31, 2016, the total market value of these investments was approximately $3.8 million.

ITEM 4. CONTROLS AND PROCEDURES

Volt maintains “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, Volt’s management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and Volt’s management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Volt has carried out an evaluation, as of the end of the period covered by this report, under the supervision and with the participation of Volt’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of Volt’s disclosure controls and procedures. Based upon their evaluation and subject to the foregoing, the Chief Executive Officer and Chief Financial Officer concluded that Volt’s disclosure controls and procedures were effective.

There have been no significant changes in Volt’s internal controls over financial reporting that occurred during the fiscal quarter ended July 31, 2016 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Company is subject to claims in legal proceedings arising in the ordinary course of its business, including payroll-related and various employment-related matters. All litigation currently pending against the Company relates to matters that have arisen in the ordinary course of business and the Company believes that such matters will not have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

Since our 2015 Form 10-K, there have been no material developments in the material legal proceedings in which we are involved.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2015 10-K, which could materially affect our business, financial position and results of operations. Our risk factors have not changed materially since November 1, 2015, except for the following:

The United Kingdom’s referendum to exit from the European Union will have uncertain effects and could adversely impact our business, results of operations and financial condition.

On June 23, 2016, the U.K. voted to exit from the European Union (“E.U.”) (commonly referred to as “Brexit”). The terms of Brexit and the resulting U.K./E.U. relationship are uncertain for companies doing business both in the U.K. and the overall global economy. The U.K. vote has impacted global markets, including currencies, and resulted in a sharp decline in the value of the British Pound as compared to the U.S. dollar and other currencies.  The fluctuation of currency exchange rates may expose us to gains and losses on non U.S. currency transactions. Volatility in the securities markets and in currency exchange rates may continue as the U.K. negotiates its exit from the E.U. In the longer term, any impact from Brexit on our business and operations will depend, in part, on the outcome of tariff, tax treaties, trade, regulatory, and other negotiations. While we have not experienced any material impact from Brexit on our underlying business to date, we cannot predict its future implications, which will in part depend on the outcome of the trade negotiations referenced above. 

28

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable

ITEM 5. OTHER INFORMATION

Amendment No. 3 to Receivables Financing Agreement

On September 6, 2016, the Company entered into Amendment No. 3, dated September 6, 2016 ("Amendment No. 3"), to its Receivables Financing Agreement which increases the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. The remaining terms and conditions are substantially unchanged.

Annual Incentive Plan

On September 7, 2016, the Company's Human Resources and Compensation Committee of the Board of Directors (the "Compensation Committee") approved the Volt Information Sciences, Inc. Annual Incentive Plan ("AIP"). The purpose of the AIP is to reinforce corporate, divisional and individual goals and to promote and reward the achievement of financial, organizational, leadership and other objectives aligned to the overall strategy of the Company.

Each participant is eligible to receive an annual cash bonus on the achievement of established performance objectives for the fiscal year. The AIP is administered by, and participants will be designated by, the Compensation Committee or those to whom it has delegated authority and may include the Company’s senior officers. Performance objectives may include, without limitation, earnings-based measures (such as EBITDA, adjusted EBITDA, operating income or revenue), measures relating to the Company’s share price and/or individual management objectives.

The foregoing summaries of Amendment No. 3 and the AIP do not purport to be complete and are qualified in their entirety by reference to the full text of Amendment No. 3 and the AIP, respectively, copies of which are attached to this Quarterly Report on Form 10-Q and are incorporated herein by reference.

29

ITEM 6. EXHIBITS

The following exhibits are filed as part of, or incorporated by reference into, this Report:

Exhibits	Description
3.1	Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K filed January 30, 1997; File No. 001-09232)
3.2	Certificate of Amendment to Certificate of Incorporation of the Company (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed April 11, 2007; File No. 001-09232)
3.3	Amended and Restated By-Laws of the Company, as amended through October 30, 2015 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed November 4, 2015; File No. 001-9232)
10.1	Amendment No. 2, dated as of July 29, 2016, to the Receivables Financing Agreement, dated as of July 30, 2015, by and among Volt Funding Corp., as borrower, PNC Bank, National Association, as letter of credit bank and administrative agent, the persons from time to time party thereto as lenders and letter of credit participants, and Volt Information Sciences, Inc., as initial servicer (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August 2, 2016; File No. 001-09232)
10.2	Amendment No. 3, dated as of September 6, 2016, to the Receivables Financing Agreement, dated as of July 30, 2015, by and among Volt Funding Corp., as borrower, PNC Bank, National Association, as letter of credit bank and administrative agent, the persons from time to time party thereto as lenders and letter of credit participants, and Volt Information Sciences, Inc., as initial servicer
10.3	Volt Information Sciences, Inc. Annual Incentive Plan, effective September 7, 2016
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350
32.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	VOLT INFORMATION SCIENCES, INC.
Date: September 8, 2016	By:	/s/	Michael Dean
		Michael Dean
		President and Chief Executive Officer (Principal Executive Officer)
Date: September 8, 2016	By:	/s/	Paul Tomkins
		Paul Tomkins
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)
Date: September 8, 2016	By:	/s/	Bryan Berndt
		Bryan Berndt
		Controller and Chief Accounting Officer (Principal Accounting Officer)

31

EX-10.2

AMENDMENT NO. 3 TO RECEIVABLES FINANCING AGREEMENT This AMENDMENT NO. 3 TO RECEIVABLES FINANCING AGREEMENT (this “Amendment No. 3”), dated as of September 6, 2016, is by and among VOLT FUNDING CORP. (“Volt Funding”), as borrower (the “Borrower”), the Persons from time to time party hereto as Lenders and LC Participants, PNC BANK, NATIONAL ASSOCIATION (“PNC”), as LC Bank, as an LC Participant, as a Lender and as Administrative Agent, and VOLT INFORMATION SCIENCES, INC. (“Volt”), as initial servicer (the “Servicer”). BACKGROUND WHEREAS, the parties hereto entered into the Receivables Financing Agreement as of July 30, 2015 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Financing Agreement”); and WHEREAS, the parties hereto wish to amend the Receivables Financing Agreement pursuant to the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: SECTION 1. Definitions. Capitalized terms used but not defined in this Amendment No. 3 shall have the meanings assigned to them in the Receivables Financing Agreement. SECTION 2. Amendments to Receivables Financing Agreement. Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the Receivables Financing Agreement is hereby amended as follows: (a) The definition of “Facility Limit” set forth in Section 1.01 of the Receivables Financing Agreement in hereby amended by deleting the amount “$150,000,000” in its entirety and replacing it with the amount “$160,000,000”. (b) Schedule I to the Receivables Financing Agreement is hereby deleted and replaced in its entirety with the schedule set forth in Exhibit A attached hereto. SECTION 3. Conditions Precedent. The effectiveness of this Amendment No. 3 is subject to the satisfaction of all of the following conditions precedent: (a) The Administrative Agent shall have received a fully executed counterpart of this Amendment No. 3 and the First Amended and Restated Amendment Fee Letter, dated as of the date hereof, by and among PNC as the Administrative Agent, a Lender, the LC Bank, and an LC Participant, PNC Capital Markets LLC and the Borrower (collectively, the “Amendment No. 3 Documents”). (b) The Administrative Agent shall have received such documents and certificates as the Administrative Agent shall have reasonably requested on or prior to the date hereof.

101270756\V-3 2 (c) The Administrative Agent shall have received all fees and other amounts due and payable to it under the Receivables Financing Agreement and in connection with the Amendment No. 3 Documents on or prior to the date hereof, including, to the extent invoiced, payment or reimbursement of all fees and expenses (including reasonable and documented out-of-pocket fees, charges and disbursements of counsel) required to be paid or reimbursed on or prior to the date hereof. To the extent such fees and other amounts have not yet been invoiced, the Borrower agrees to remit payment to the applicable party promptly upon receipt of such invoice. (d) No Event of Default or Unmatured Event of Default, as set forth in Section 10.01 of the Receivables Financing Agreement, shall have occurred and be continuing. SECTION 4. Amendment. The Borrower, PNC as the LC Bank, an LC Participant, a Lender, and the Administrative Agent, and the Servicer, hereby agree that the provisions and effectiveness of this Amendment No. 3 shall apply to the Receivables Financing Agreement as of the date hereof. Except as amended by this Amendment No. 3 and any prior amendments, the Receivables Financing Agreement remains unchanged and in full force and effect. This Amendment No. 3 is a Transaction Document. SECTION 5. Counterparts. This Amendment No. 3 may be executed in any number of counterparts, each of which when so executed shall be deemed an original and all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart hereof by facsimile or other electronic means shall be equally effective as delivery of an originally executed counterpart. SECTION 6. Captions. The headings of the Sections of this Amendment No. 3 are provided solely for convenience of reference and shall not modify, define, expand or limit any of the terms or provisions of this Amendment No. 3. SECTION 7. Successors and permitted assigns. The terms of this Amendment No. 3 shall be binding upon, and shall inure to the benefit of the Borrower, PNC as the LC Bank, an LC Participant, a Lender, and the Administrative Agent, and the Servicer, and their respective successors and permitted assigns. SECTION 8. Severability. Any provision of this Amendment No. 3 which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. SECTION 9. Governing Law and Jurisdiction. The provisions of the Receivables Financing Agreement with respect to governing law, jurisdiction, and agent for service of process are incorporated in this Amendment No. 3 by reference as if such provisions were set forth herein. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Amendment 3 to RFA (PNC/Volt) S-1 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 3 by their duly authorized officers as of the date first above written. VOLT FUNDING CORP., as the Borrower By: /s/ Kevin Hannon Name: Kevin Hannon Title: Treasurer VOLT INFORMATION SCIENCES, INC., as the Servicer By: /s/ Kevin Hannon Name: Kevin Hannon Title: VP & Treasurer

Amendment 3 to RFA (PNC/Volt) S-2 PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent By: /s/ Eric Bruno Name: Eric Bruno Title: Senior Vice President PNC BANK, NATIONAL ASSOCIATION, as LC Bank and as an LC Participant By: /s/ Eric Bruno Name: Eric Bruno Title: Senior Vice President PNC BANK, NATIONAL ASSOCIATION, as a Lender By: /s/ Eric Bruno Name: Eric Bruno Title: Senior Vice President

Ex. A-1 Exhibit A to Amendment 3 to RFA SCHEDULE I Commitments Party Capacity Commitment PNC Lender $160,000,000 PNC LC Participant $50,000,000 PNC LC Bank $50,000,000

EX-10.3

#4819-0510-5719v5 VOLT INFORMATION SCIENCES, INC. ANNUAL INCENTIVE PLAN 1. Purpose. The purpose of this Volt Information Sciences, Inc. (the “Company”) Annual Incentive Plan (as amended from time to time, this “Plan”) is to reinforce corporate, divisional and individual goals and to promote and reward the achievement of financial, organizational, leadership and other objectives aligned to the overall strategy of the Company. 2. Eligibility. Eligible employees in this Plan shall consist of such employees of the Company and its affiliates that the Committee (as defined herein) in its sole discretion selects to participate (any employee so selected, a “Participant”). An employee who is a Participant for one Performance Period (as defined herein) shall not have the right to be a Participant in any subsequent Performance Period. In determining Participants in this Plan, the Committee shall take into account such factors as the Committee shall deem relevant in connection with accomplishing the purposes of this Plan. It is the intent of the Committee that all of the Company’s annual bonus payments, if any, shall be paid pursuant to this Plan. 3. Plan Administration. 3.1 Committee. This Plan shall be administered as follows: (i) with respect to Participants who are Senior Officers of the Company (as defined below), this Plan shall be administered by the Human Resources and Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”), subject to the terms of its Charter; and (ii) with respect to all Participants who are not Senior Officers, the Compensation Committee shall delegate its authority under this Plan to one or more Senior Officers of the Company (the “Sub-Committee”). References to the “Committee” shall mean the Compensation Committee or the Sub-Committee, as applicable. For purposes of this Plan, “Senior Officers” means the Chief Executive Officer of the Company and each other officer of the Company subject to Section 16 of the Securities Exchange Act of 1934, as amended. 3.2 Authority. The Committee shall have the authority in its sole discretion, subject to and not inconsistent with the express provisions of this Plan, to administer this Plan and to exercise all the powers and authorities either specifically granted to it under this Plan or necessary or advisable in the administration of this Plan, including, without limitation, the authority to make Bonus Awards (as defined below); to determine the persons to whom and the time or times at which Bonus Awards shall be made; to determine the terms, conditions, restrictions and performance criteria relating to any Bonus Award; to determine whether, to what extent, and under what circumstances a Participant’s right to receive a Bonus Award may be cancelled, forfeited, or surrendered;

#4819-0510-5719v5 to construe and interpret this Plan and any Bonus Award; to prescribe, amend and rescind rules and regulations relating to this Plan; to determine the terms and provisions of Bonus Awards; and to make all other determinations deemed necessary or advisable for the administration of this Plan. The Committee shall have the authority to make equitable adjustments to the performance criteria and/or Bonus Awards in such circumstances as the Committee deems appropriate. The Compensation Committee shall have the authority to make adjustments to the performance criteria and/or Bonus Awards in recognition of unusual or non-recurring events affecting the Company or any affiliate of the Company or the financial statements of the Company or any affiliate of the Company, in response to changes in applicable laws or regulations or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles. All decisions, determinations and interpretations of the Committee shall be final and binding on all persons, including the Company and the Participant (or any person claiming any rights under this Plan from or through any Participant). The Committee may delegate any of its duties and powers, in whole or in part, to any subcommittee thereof. 4. Bonus Awards. 4.1 Annual Bonuses. A Participant may be designated as eligible to receive an incentive cash bonus with respect to an annual performance period (the “Annual Bonus”), subject to the procedures and requirements set forth in this Plan. A Participant’s Annual Bonus may be measured by, among other things, a percentage of the Participant’s annual base salary. 4.2 Other Bonuses. The Committee may award other cash bonuses in such amounts and on such terms and conditions as it determines in its sole discretion, without regard to the procedures and requirements set forth in this Plan (an “Other Bonus” and collectively with any Annual Bonuses, “Bonus Awards”), to any individual who is or has been hired by the Company or any of its affiliates, to the extent any such person is identified as an eligible Participant by the Committee. 5. Procedure. 5.1 Performance Period. Unless otherwise determined by the Committee, the annual performance period with respect to an Annual Bonus shall be the Company’s fiscal year (any such period, a “Performance Period”). 5.2 Establishment of Performance Goals. The Committee (or its designee) shall establish (i) the performance goals applicable to the Performance Period; (ii) the performance measures to be used to measure the performance goals; (iii) the method for computing the amount of compensation payable to each Participant if such

#4819-0510-5719v5 performance goals are obtained; and (iv) the Participants or class of Participants to which such performance goals apply. Such performance goals may include, without limitation, earnings-based measures (e.g., EBITDA, adjusted EBITDA, operating income, revenue), measures relating to the Company’s share price and/or individual management based objectives (“MBOs”), in any case, as may be determined by the Committee with respect to a given Performance Period. The Sub-Committee may delegate its authority to set MBOs to one or more officers or managers of the Company, including individuals who are responsible for a Participant’s division or business unit within the Company. Performance goals may also be based on comparisons to the performance of other companies or an index covering multiple companies, measured with respect to one or more of the applicable performance measures. The performance goals with respect to a given Performance Period shall be communicated to the applicable Participant or class of Participants as soon as reasonably practicable following the Committee’s determination of such performance goals for the Performance Period. 5.3 Determination of Annual Bonus Amounts. As soon as reasonably practicable following the completion of each Performance Period, the Committee shall confirm which of the applicable performance goals, if any, have been achieved and the amount of Annual Bonus payable as a result thereof to each applicable Participant (the “Preliminary Bonus Amount”). 5.4 Committee Discretion to Modify Awards. Following the Committee’s determination of the Preliminary Bonus Amount, the Committee shall have the discretion to increase or decrease the Preliminary Bonus Amount by a percentage determined by the Committee for the applicable Performance Period (the resulting amount, the “Modified Bonus Amount”), and the Modified Bonus Amount shall represent the amount of Annual Bonus to be paid to a Participant in respect of that Performance Period; provided, however, that nothing herein shall require the Committee to exercise such discretion or prevent the Committee from revising the percentage by which the Preliminary Bonus Amount can be modified for a particular Performance Period. 5.5 Payment of Bonus Awards. The Annual Bonus shall be paid, if at all, to Participants within a reasonable period of time following the end of the Performance Period to which such Annual Bonus relates, but in no event shall any Bonus Award be paid later than March 15th of the calendar year immediately following the fiscal year with respect to which the applicable Bonus Award was earned. 6. General Provisions. 6.1 Compliance with Legal Requirements. This Plan and the payment of Bonus Awards, and the other obligations of the Company under this Plan shall be subject to all

#4819-0510-5719v5 applicable federal and state laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required. 6.2 No Right to Continued Service. Nothing in this Plan shall confer upon any Participant the right to continue in the service of the Company or any of its affiliates or to be entitled to any compensation or benefits or to interfere with or limit in any way whatever rights otherwise exist of the Company or any of its affiliates to terminate such Participant’s service or change such Participant’s compensation. 6.3 Withholding Taxes. The Company and its affiliates shall have the right to deduct from any payment made under this Plan any federal, state, local or foreign income or other taxes they determine are required to be withheld with respect to such payment. 6.4 Amendment, Termination and Duration of this Plan. The Compensation Committee may at any time and from time to time alter, amend, suspend, or terminate this Plan in whole or in part, with or without Participant consent. Notwithstanding the foregoing, no amendment (other than an amendment deemed necessary by the Compensation Committee to comply with Section 409A of the Code (as defined below)) shall affect adversely any of the rights of any Participant under any Bonus Award following the end of the Performance Period (if applicable) to which such Bonus Award relates. 6.5 Participant Rights. No Participant shall have any claim to be granted any Bonus Award under this Plan, and there is no obligation for uniformity of treatment among Participants. 6.6 Eligibility for Other Bonuses and Annual Bonuses (i) Unless otherwise provided by the Committee or provided for otherwise in a Participant's employment agreement, a Participant must be actively employed by the Company or one of its affiliates on the date Bonus Awards are paid in order to receive payment in respect of such award. Accordingly, a Participant shall forfeit his/her right to receive payment in respect of any unpaid Bonus Award upon his/her termination of employment with the Company. (ii) Subject to the provisions of Section 6.6(i), in the event a person is a Participant in the Plan for less than the entire Performance Period, he/she shall be eligible to receive a portion of any Annual Bonus earned in respect of such Performance Period, prorated such that the numerator equals the number days the person was a Participant in the Plan during such Performance Period and the denominator equals the total number of days occurring during such Performance Period.

#4819-0510-5719v5 (iii) In the event that, during a Performance Period, a Participant transitions between positions, business divisions or units within the Company, the Participant’s Annual Bonus shall consist of a portion of the Annual Bonus (if any) calculated for each position, business division or unit in respect of such Performance Period, pro-rated, in each case, such that the numerator equals the number of days the person was a Participant in the Plan and providing services to the applicable business division or unit or in the applicable position during such Performance Period, and the denominator equals the total number of days during such Performance Period. For purposes of this Section 6.6, “actively employed” shall mean all full and part time employees, employees on workers’ compensation, maternity leave, or disability and employees on other approved leaves of absence with a legal or contractual right to reinstatement. 6.7 Change in Control. Upon a Change in Control (as defined in the Company’s 2015 Equity Incentive Plan, as it may be amended and/or restated from time to time), the Compensation Committee shall determine, in its sole discretion, the treatment of Bonus Awards. Notwithstanding any provision in this Plan to the contrary, and unless otherwise determined by the Compensation Committee, to the extent a Change in Control becomes effective following the completion of a Performance Period, but prior to the date on which Annual Bonuses have been paid in respect of such Performance Period, a Participant’s Annual Bonus with respect to such period (if any) shall be paid within 15 days of the effective date of the Change in Control. 6.8 Unfunded Status of Awards. This Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant pursuant to a Bonus Award, nothing contained in this Plan shall give any such Participant any rights that are greater than those of a general creditor of the Company. 6.9 Governing Law. This Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of New York without giving effect to the conflict of laws principles thereof. 6.10. Section 409A. This Plan and the payments and benefits hereunder are intended to be exempt from Section 409A of the Code (“Section 409A”). To the extent that any provision of this Plan would result in the payment of additional tax, interest or tax penalties under Section 409A, the Company agrees to amend this Plan if permitted under Section 409A in a manner which does not impose any additional taxes, interest or penalties in order to bring this Plan into compliance with Section 409A, without materially changing the economic value of the arrangements under this Plan to any Participant, and thereafter the Company shall interpret its provisions in a manner that

#4819-0510-5719v5 complies with Section 409A. Notwithstanding the foregoing, no particular tax result for any Participant with respect to any income recognized in connection with this Plan is guaranteed, and in no event shall the Company or any of its affiliates, or any of their respective representatives, be liable for any taxes, interest or penalties incurred by any Participant in connection with this Plan, the payments or benefits hereunder, or otherwise. 6.11 Effective Date. This Plan became effective as of September 7, 2016, the date this Plan was approved by the Compensation Committee.

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO EXCHANGE ACT RULES 13A-14(A) AND 15D-14(A),

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Dean, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Volt Information Sciences, Inc.

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

(3) Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 8, 2016	By:	/s/ Michael Dean
		Michael Dean President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO EXCHANGE ACT RULES 13A-14(A) AND 15D-14(A),

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul Tomkins, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Volt Information Sciences, Inc.

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

(3) Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 8, 2016	By:	/s/ Paul Tomkins
		Paul Tomkins Senior Vice President and
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Volt Information Sciences, Inc. (the “Company”) on Form 10-Q for the quarter ended July 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Dean, Chief Executive Officer of the Company, certify that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 8, 2016	By:	/s/ Michael Dean
		Michael Dean
		President and Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Volt Information Sciences, Inc. and will be retained by Volt Information Sciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Volt Information Sciences, Inc. (the “Company”) on Form 10-Q for the quarter ended July 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paul Tomkins, Chief Financial Officer of the Company, certify that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 8, 2016	By:	/s/ Paul Tomkins
		Paul Tomkins
		Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Volt Information Sciences, Inc. and will be retained by Volt Information Sciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2016	Sep. 02, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	VISI
Entity Registrant Name	VOLT INFORMATION SCIENCES, INC.
Entity Central Index Key	0000103872
Current Fiscal Year End Date	--10-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (shares)		20,894,383

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
REVENUE:
Staffing services revenue	$ 313,428	$ 341,383	$ 939,356	$ 1,064,481
Other revenue	17,062	23,285	53,403	68,442
NET REVENUE	330,490	364,668	992,759	1,132,923
EXPENSES:
Direct cost of staffing services revenue	266,684	287,554	798,682	900,909
Cost of other revenue	15,110	19,696	47,785	59,210
Selling, administrative and other operating costs	49,712	58,025	154,019	178,227
Restructuring and severance costs	970	1,867	4,571	3,093
Impairment charges	0	580	0	5,954
Gain on sale of building	0	0	(1,663)	0
TOTAL EXPENSES	332,476	367,722	1,003,394	1,147,393
OPERATING LOSS	(1,986)	(3,054)	(10,635)	(14,470)
OTHER INCOME (EXPENSE), NET:
Interest income (expense), net	(826)	(571)	(2,346)	(1,935)
Foreign exchange gain (loss), net	(1,003)	1,010	(1,238)	(153)
Other income (expense), net	(402)	(178)	(1,101)	(37)
TOTAL OTHER INCOME (EXPENSE), NET	(2,231)	261	(4,685)	(2,125)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(4,217)	(2,793)	(15,320)	(16,595)
Income tax provision	393	1,351	2,037	3,262
LOSS FROM CONTINUING OPERATIONS	(4,610)	(4,144)	(17,357)	(19,857)
DISCONTINUED OPERATIONS
Loss from discontinued operations, net of income taxes (including loss on disposal of $1.2 million)	0	0	0	(4,519)
NET LOSS	$ (4,610)	$ (4,144)	$ (17,357)	$ (24,376)
Basic:
Loss from continuing operations (usd per share)	$ (0.22)	$ (0.20)	$ (0.83)	$ (0.95)
Loss from discontinued operations (usd per share)	0.00	0.00	0.00	(0.22)
Net loss (usd per share)	$ (0.22)	$ (0.20)	$ (0.83)	$ (1.17)
Weighted average number of shares - basic (shares)	20,846	20,741	20,824	20,821
Diluted:
Loss from continuing operations (usd per share)	$ (0.22)	$ (0.20)	$ (0.83)	$ (0.95)
Loss from discontinued operations (usd per share)	0.00	0.00	0.00	(0.22)
Net loss (usd per share)	$ (0.22)	$ (0.20)	$ (0.83)	$ (1.17)
Weighted average number of shares - diluted (shares)	20,846	20,741	20,824	20,821

XML

Condensed Consolidated Statements of Operations (Parenthetical) $ in Millions	9 Months Ended
	Aug. 02, 2015 USD ($)
Income Statement [Abstract]
Loss on disposal	$ 1.2

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Statement of Comprehensive Income [Abstract]
NET LOSS	$ (4,610)	$ (4,144)	$ (17,357)	$ (24,376)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $0, respectively	(1,437)	(1,431)	(1,133)	(1,065)
Unrealized gain on marketable securities, net of taxes of $0, respectively	25	7	23	23
Total other comprehensive loss	(1,412)	(1,424)	(1,110)	(1,042)
COMPREHENSIVE LOSS	$ (6,022)	$ (5,568)	$ (18,467)	$ (25,418)

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, taxes	$ 0	$ 0	$ 0	$ 0
Unrealized gains (loss) on marketable securities, taxes	$ 0	$ 0	$ 0	$ 0

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2016	Nov. 01, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 12,886	$ 10,188
Restricted cash and short-term investments	16,392	14,977
Trade accounts receivable, net of allowances of $718 and $960, respectively	179,088	198,385
Recoverable income taxes	17,244	16,633
Prepaid insurance and other current assets	13,396	15,865
Assets held for sale	19,680	22,943
TOTAL CURRENT ASSETS	258,686	278,991
Other assets, excluding current portion	25,573	23,740
Property, equipment and software, net	27,783	24,095
TOTAL ASSETS	312,042	326,826
CURRENT LIABILITIES:
Accrued compensation	29,850	29,548
Accounts payable	35,113	39,164
Accrued taxes other than income taxes	22,962	22,719
Accrued insurance and other	31,170	34,391
Short-term borrowings, including current portion of long-term debt	92,000	982
Income taxes payable	0	1,658
Liabilities held for sale	5,571	7,345
TOTAL CURRENT LIABILITIES	216,666	135,807
Accrued insurance and other, excluding current portion	11,868	10,474
Deferred gain on sale of real estate, excluding current portion	26,594	0
Income taxes payable, excluding current portion	6,647	6,516
Deferred income taxes	3,436	3,225
Long-term debt, excluding current portion	0	106,313
TOTAL LIABILITIES	265,211	262,335
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none	0	0
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003 and 23,738,003, respectively; Outstanding - 20,894,383 and 20,801,080, respectively	2,374	2,374
Paid-in capital	75,861	75,803
Retained earnings	18,692	38,034
Accumulated other comprehensive loss	(9,104)	(7,994)
Treasury stock, at cost; 2,843,620 and 2,936,923 shares, respectively	(40,992)	(43,726)
TOTAL STOCKHOLDERS' EQUITY	46,831	64,491
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 312,042	$ 326,826

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2016	Nov. 01, 2015
Statement of Financial Position [Abstract]
Trade accounts receivable, allowances	$ 718	$ 960
Preferred stock, par value (usd per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Common stock, par value (usd per share)	$ 0.10	$ 0.10
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	23,738,003	23,738,003
Common stock, shares outstanding	20,894,383	20,801,080
Treasury stock, shares	2,843,620	2,936,923

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
NET LOSS	$ (17,357)	$ (24,376)
Loss from discontinued operations, net of income taxes	0	(4,519)
Loss from continuing operations	(17,357)	(19,857)
Adjustment to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	4,541	5,110
Provision (release) of doubtful accounts and sales allowances	(240)	391
Impairment charges	0	5,954
Unrealized foreign currency exchange loss (gain)	1,617	(528)
Gain on dispositions of property and equipment	(2,326)	(253)
Deferred income tax benefit	0	(79)
Share-based compensation expense	1,020	2,564
Accretion of convertible note discount	(90)	(319)
Change in operating assets and liabilities:
Trade accounts receivable	19,756	33,919
Restricted cash	(2,426)	9,419
Prepaid insurance and other assets	(2,214)	(886)
Net assets held for sale	1,258	6,934
Accounts payable	(4,082)	(18,568)
Accrued expenses and other liabilities	1,409	(9,946)
Income taxes	(2,181)	2,251
Net cash provided by (used in) operating activities	(1,315)	16,106
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments	1,230	1,011
Purchases of investments	(340)	(582)
Purchase of minority interest	(1,446)	0
Proceeds from sale of property and equipment	36,795	389
Purchases of property, equipment and software	(13,632)	(5,119)
Net cash provided by (used in) investing activities	22,607	(4,301)
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in cash restricted as collateral for borrowings	0	10,436
Repayment of borrowings	(10,000)	(158,506)
Draw-down of borrowings	2,000	155,000
Repayment of long-term debt	(7,295)	(676)
Debt issuance costs	(669)	(746)
Proceeds from exercise of stock options	24	504
Purchases of common stock under repurchase program	0	(4,262)
Withholding tax payment on vesting of restricted stock awards	(116)	0
Net cash provided by (used in) financing activities	(16,056)	1,750
Effect of exchange rate changes on cash and cash equivalents	(2,538)	(3,679)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Cash flow from operating activities	0	(56)
Cash flow from investing activities	0	(4,000)
Net cash used in discontinued operations	0	(4,056)
Net increase in cash and cash equivalents	2,698	5,820
Cash and cash equivalents, beginning of period	10,188	6,723
Change in cash from discontinued operations	0	(211)
Cash and cash equivalents, end of period	12,886	12,332
Cash paid during the period:
Interest	2,436	2,435
Income taxes	3,727	1,638
Supplemental disclosure of non-cash investing and financing activities:
Note receivable in exchange for Computer Systems segment net assets sold	$ 0	$ 8,363

XML

Basis of Presentation

9 Months Ended

Jul. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

Basis of Presentation

The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. (“Volt” or the “Company”) have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended November 1, 2015. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, are based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended November 1, 2015.

Certain reclassifications have been made to the prior year financial statements in order to conform to the current year's presentation.

XML

Recently Issued Accounting Pronouncements

9 Months Ended

Jul. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies. Unless otherwise discussed, the Company believes that the adoption of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption.

In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force. The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. For public business entities that are SEC filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  This ASU requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. This update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU requires that debt issuance costs related to a recognized liability be presented on the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 clarifies the guidance in ASU 2015-03 regarding presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. The SEC Staff announced they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These ASUs are effective for reporting periods beginning after December 15, 2015, including interim reporting periods within those fiscal years.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This ASU is effective for the annual period ending after December 15, 2016, with early adoption permitted.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This standard is effective for fiscal years and interim reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that period. The Company is currently assessing the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures upon implementation in the first quarter of fiscal 2019.

From March through May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606):Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606):Identifying Performance Obligations and Licensing, ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815):Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606):Narrow-Scope Improvements and Practical Expedients. These amendments are intended to improve and clarify the implementation guidance of Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of ASU No. 2014-09 and ASU No. 2015-14.

Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

Recently Adopted Accounting Standards

In November 2015, the FASB issued Accounting Standards Update ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The Company has early adopted ASU 2015-17 prospectively beginning in the first quarter of fiscal 2016. Other than the revised balance sheet presentation of deferred taxes from current to non-current, the adoption of this ASU did not have a material impact to our consolidated financial statements.

XML

Discontinued Operations

9 Months Ended

Jul. 31, 2016

Disposed of by Sale

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued Operations

Discontinued Operations

On December 1, 2014, the Company completed the sale of its Computer Systems segment to NewNet Communication Technologies, LLC (“NewNet”), a Skyview Capital, LLC, portfolio company. The results of the Computer Systems segment are presented as discontinued operations and excluded from continuing operations and from segment results for all periods presented. 

The proceeds of the transaction are a $10.0 million note bearing interest at one half (0.5) percent per year due in four years and convertible into a capital interest of up to 20% in NewNet. The Company may convert the note at any time and is entitled to receive early repayment in the event of certain events such as a change in control of NewNet. The proceeds are in exchange for the ownership of Volt Delta Resources, LLC and its operating subsidiaries, which comprised the Company's Computer Systems segment, and payment of $4.0 million by the Company during the first 45 days following the transaction. An additional payment will be made between the parties based on the comparison of the actual transaction date working capital amount to an expected working capital amount of $6.0 million (the contractually agreed upon working capital). The note was initially valued at $8.4 million which approximated its fair value. At July 31, 2016, the note is carried at net realizable value and the unamortized discount was $1.1 million. The parties are currently in active discussions to finalize the closing balance sheet working capital amounts.

The Company recognized a loss on disposal of $1.2 million from the sale transaction in the first quarter of 2015. The total related costs associated with this transaction were $2.2 million comprised of $0.9 million in severance costs, $0.9 million of professional fees and $0.4 million of lease obligation costs. These costs are recorded in Discontinued operations in the Condensed Consolidated Statements of Operations. As of July 31, 2016, $2.0 million has been paid and $0.2 million remains payable and is included in Accrued insurance and other in the Condensed Consolidated Balance Sheets.

The following table reconciles the major line items in the Condensed Consolidated Statements of Operations for discontinued operations (in thousands):

	Nine Months Ended August 2, 2015
Loss from discontinued operations
Net revenue	$	4,708
Cost of revenue	5,730
Selling, administrative and other operating costs	1,388
Restructuring and other related costs	1,709
Other (income) expense, net	(978		)
Loss from discontinued operations	(3,141		)
Loss on disposal of discontinued operations	(1,187		)
Loss from discontinued operations before income taxes	(4,328		)
Income tax provision	191
Loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations	$	(4,519	)

XML

Assets and Liabilities Held for Sale

9 Months Ended

Jul. 31, 2016

Assets Held-for-sale

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Assets and Liabilities Held for Sale

Assets and Liabilities Held for Sale

In October 2015, the Company's Board of Directors (the "Board") approved a plan to sell the Company’s information technology infrastructure services business (“Maintech”) and staffing services business in Uruguay (“Lakyfor, S.A.”).

Maintech met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2015. The potential disposal of Maintech did not represent a strategic shift that will have a major effect on the Company’s operations and financial results and is, therefore, not classified as discontinued operations in accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), (“ASU 2014-08”). As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations exceeded the carrying value of the net assets and no impairment charge was recorded. The timeline to complete a transaction has extended beyond the third quarter of fiscal 2016.

Lakyfor, S.A. met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2015.  The disposal of Lakyfor, S.A. did not represent a strategic shift that would have a major effect on the Company’s operations and financial results and was, therefore, not classified as discontinued operations in accordance with ASU 2014-08. As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations was significantly lower than the carrying value of the net assets and an impairment charge of $0.7 million was recorded in the fourth quarter of fiscal 2015. The sale occurred in December 2015 for nominal proceeds and the Company recognized a loss on disposal of $0.1 million from the sale transaction in the first quarter of fiscal 2016.

The following table reconciles the major classes of assets and liabilities classified as held for sale as part of continuing operations in the Condensed Consolidated Balance Sheets (in thousands):

	July 31, 2016		November 1, 2015
Assets included as part of continuing operations
Cash and cash equivalents	$	825	$	1,537
Trade accounts receivable, net	14,591		15,671
Recoverable income taxes	54		165
Prepaid insurance and other assets	3,573		4,886
Property, equipment and software, net	142		189
Purchased intangible assets	495		495
Total major classes of assets as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	19,680	$	22,943
Liabilities included as part of continuing operations
Accrued compensation	$	2,439	$	3,509
Accounts payable	684		1,387
Accrued taxes other than income taxes	775		1,165
Accrued insurance and other	586		523
Deferred revenue	1,087		761
Total major classes of liabilities as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	5,571	$	7,345

⁽¹⁾ The Balance Sheet as of July 31, 2016 only includes Maintech.

XML

Accumulated Other Comprehensive Loss

9 Months Ended

Jul. 31, 2016

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss for the three and nine months ended July 31, 2016 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016						July 31, 2016
	Foreign Currency Translation			Unrealized Loss on Marketable Securities			Foreign Currency Translation			Unrealized Loss on Marketable Securities
Accumulated other comprehensive loss at beginning of the period	$	(7,667	)	$	(25	)	$	(7,971	)	$	(23	)
Other comprehensive income (loss) before reclassifications	(1,437		)	25			(1,133		)	23
Accumulated other comprehensive loss at July 31, 2016	$	(9,104	)	$	—		$	(9,104	)	$	—
Reclassifications from accumulated other comprehensive loss for the three and nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
Foreign currency translation
Sale of foreign subsidiaries, net of tax	$	—		$	—		$	—		$	(3,181	)
Closure of foreign subsidiary	(643		)	—			(643		)	—
Amount reclassified from accumulated other comprehensive loss for the nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
Details about Accumulated Other Comprehensive Loss Components	Fiscal Year			Amount Reclassified			Affected Line Item in the Statement Where Net Loss is Presented
Foreign currency translation
Closure of foreign subsidiary	2016			$	643		Foreign exchange gain (loss), net
Sale of foreign subsidiaries	2015			3,181			Discontinued operations

XML

Restricted Cash and Short-Term Investments

9 Months Ended

Jul. 31, 2016

Cash and Cash Equivalents [Abstract]

Restricted Cash and Short-Term Investments

Restricted Cash and Short-Term Investments

Restricted cash primarily includes amounts related to requirements under certain contracts with managed service program customers for whom the Company manages the customers’ contingent staffing requirements, including processing of associate vendor billings into single, combined customer billings and distribution of payments to associate vendors on behalf of customers, as well as minimum cash deposits required to be maintained as collateral. Distribution of payments to associate vendors are generally made shortly after receipt of payment from customers, with undistributed amounts included in restricted cash and accounts payable between receipt and distribution of these amounts. Changes in restricted cash collateral are classified as an operating activity, as this cash is directly related to the operations of this business. At July 31, 2016 and November 1, 2015, restricted cash included $10.6 million and $9.3 million, respectively, restricted for payment to associate vendors and $2.0 million and $0.9 million, respectively, restricted for other collateral accounts.

At July 31, 2016 and November 1, 2015, short-term investments were $3.8 million and $4.8 million, respectively. These short-term investments consisted primarily of the fair value of deferred compensation investments corresponding to employees’ selections, primarily in mutual funds, based on quoted prices in active markets.

XML

Income Taxes

9 Months Ended

Jul. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision reflects the geographic mix of earnings in various federal, state and foreign tax jurisdictions and their applicable rates resulting in a composite effective tax rate. The Company’s cumulative results for substantially all United States and certain non-United States jurisdictions for the most recent three-year period is a loss. Accordingly, a valuation allowance has been established for substantially all loss carryforwards and other net deferred tax assets for these jurisdictions, resulting in an effective tax rate that is significantly different than the statutory rate.

The Company's provision for income taxes primarily includes foreign jurisdictions and state taxes. The provision for income taxes in the third quarter of fiscal 2016 and 2015 was $0.4 million and $1.4 million, respectively, and for the nine months ended July 31, 2016 and August 2, 2015 was $2.0 million and $3.3 million, respectively. The Company's quarterly provision for income taxes is measured using an estimated annual effective tax rate, adjusted for discrete items that occur within the periods presented.

The Company adjusts its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate, consistent with Accounting Standards Codification (“ASC”) 270, “Interim Reporting,” and ASC 740-270, “Income Taxes – Intra Period Tax Allocation.” Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. The Company's future effective tax rates could be affected by earnings being different than anticipated in countries with differing statutory rates, increases in recorded valuation allowances of tax assets, or changes in tax laws.

XML

Real Estate Transactions

9 Months Ended

Jul. 31, 2016

Leases [Abstract]

Real Estate Transactions

Real Estate Transactions

Orange, CA

In March 2016, Volt Orangeca Real Estate Corp., an indirect wholly-owned subsidiary of the Company completed the sale of real property comprised of land and buildings with office space of approximately 191,000 square feet in Orange, California for a purchase price of $35.9 million. The Company entered concurrently into a Purchase and Sale Agreement (the “PSA”) and a Lease Agreement (the “Lease”) with Glassell Grand Avenue Partners, LLC (the “Buyer”), a limited liability company formed by Hines, a real estate investment and management firm, and funds managed by Oaktree Capital Management L.P., an investment management firm. The Buyer assigned the PSA and the Lease to Glassell Acquisitions Partners LLC, an affiliate, prior to the closing.

The transaction was accounted for as a sale-leaseback transaction and as an operating lease. The initial lease term is 15 years plus renewal options for two terms of five years each based on the greater of fair market value at the time of the renewal or the base annual rent payable during the last month of the then-current term immediately preceding the extended period. The annual base rent will be $2.9 million for the first year of the initial term and increase on each adjustment date by 3.0% of the then-current annual base rent. A security deposit of $2.1 million is required for the first year of the lease term which is secured by a letter of credit under the Company's existing Financing Program with PNC Bank National Association (“PNC”) and will subsequently be reduced if certain conditions are met. Accordingly, the gain on sale of $29.4 million will be deferred and recognized in proportion to the related gross rental charges to expense over the lease term. For the three months and nine months ended July 31, 2016, the amortization was $0.5 million and $0.8 million, respectively.

San Diego, CA

In March 2016, Volt Opportunity Road Realty Corp., an indirect wholly-owned subsidiary of the Company, completed the sale with a private commercial real estate investor of real property comprised of land and building with office space of approximately 19,000 square feet in San Diego, California for a purchase price of $2.2 million. The Company recognized a gain of $1.7 million from the transaction during the second quarter of 2016.

XML

Debt

9 Months Ended

Jul. 31, 2016

Debt Disclosure [Abstract]

Debt

Debt

In January 2016, the Company amended its $150.0 million Financing Program with PNC to (1) extend the termination date to January 31, 2017; (2) eliminate the interest coverage ratio and modify the liquidity level requirement; (3) reduce the minimum funding threshold, as defined, from 60% to 40%; and (4) revise pricing from a LIBOR based rate plus 1.75% per the prior agreement, to a LIBOR based rate plus 1.90% on outstanding borrowings, and to increase the facility fee from 0.65% to 0.70%. The Financing Program is secured by receivables from certain Staffing Services businesses in the United States, Europe and Canada that are sold to a wholly-owned, consolidated, bankruptcy remote subsidiary. The bankruptcy remote subsidiary's sole business consists of the purchase of the receivables and subsequent granting of a security interest to PNC under the program, and its assets are available first to satisfy obligations to PNC and are not available to pay creditors of the Company's other legal entities. Borrowing capacity under the Financing Program is directly impacted by the level of accounts receivable. At July 31, 2016, the accounts receivable borrowing base was $151.7 million. As of November 1, 2015, the Financing Program was classified as long-term debt on the Condensed Consolidated Balance Sheets, however, as of the end of the Company's first quarter of fiscal 2016, the Financing Program was classified as short-term as the termination date is within twelve months of the Company’s first quarter of fiscal 2016 balance sheet date.

The liquidity level requirement under our Financing Program set a minimum global liquidity level of $20.0 million at the origination of the facility in July 2015. Under the first amendment to the Financing Program, the liquidity level was increased from $20.0 million to $35.0 million effective January 31, 2016 and to $50.0 million effective July 31, 2016. The July 31st threshold was established assuming the Company completed certain liquidity events. In order to better align the covenants to the timing of certain liquidity events, in July 2016, the Company further amended the Financing Program to reduce the minimum liquidity covenant level from $50.0 million to $35.0 million for the period beginning July 31, 2016 through the earlier of: 1) the date of the sale of Maintech, if such is closed on or before September 30, 2016, and 2) October 30, 2016 thereafter it increases to $50.0 million. The amendment also adds a negative covenant prohibiting certain capital stock transactions by the Company through the earlier of: 1) the date of the sale of Maintech, if such is closed on or before September 30, 2016, and 2) October 31, 2016.

In addition to customary representations, warranties and affirmative and negative covenants, the program is subject to termination under standard events of default including change of control, failure to pay principal or interest, breach of the liquidity covenant, triggering of portfolio ratio limits, or other material adverse events as defined. At July 31, 2016, the Company was in compliance with all debt covenant requirements.

The Financing Program has a feature under which the facility limit can be increased from $150.0 million up to $250.0 million subject to credit approval from PNC. Borrowings are priced based upon a fixed program rate plus the daily adjusted one-month LIBOR index, as defined. The program also contains a revolving credit provision under which proceeds can be drawn for a definitive tranche period of 30, 60, 90 or 180 days priced at the adjusted LIBOR index rate in effect for that period. In addition to United States dollars, drawings can be denominated in Canadian dollars, subject to a Canadian dollar $30.0 million limit, and British Pounds Sterling, subject to a £20.0 million limit. The program also includes a letter of credit sublimit of $50.0 million and minimum borrowing requirements. As of July 31, 2016, there were no foreign currency denominated borrowings, and the letter of credit participation was $31.0 million inclusive of $28.9 million for the Company's casualty insurance program and $2.1 million for the security deposit required under the Orange facility lease agreement.

At July 31, 2016 and November 1, 2015, the Company had outstanding borrowing under this program of $90.0 million and $100.0 million, respectively, and bore a weighted average annual interest rate of 2.4% and 1.7% during the third quarter of fiscal 2016 and 2015, respectively, and 2.3% and 1.7% during the first nine months of fiscal 2016 and 2015, respectively, which is inclusive of certain facility fees. At July 31, 2016, there was $29.0 million additional availability under this program, exclusive of the availability under the aforementioned accordion feature.

In February 2016, Maintech, as borrower, entered into a $10.0 million364-day secured revolving credit agreement with Bank of America, N.A. The credit agreement provides for revolving loans as well as a $0.1 million sub-line for letters of credit and is subject to borrowing base and availability restrictions and requirements. The credit agreement is secured by assets of the borrower, including accounts receivable, and the Company has guaranteed the obligations of the borrower under the agreement not to exceed $3.0 million. The credit agreement contains certain customary representations and warranties, events of default and affirmative and negative covenants, including a minimum interest requirement based on $2.0 million drawn, which was the outstanding amount under this facility at July 31, 2016. At July 31, 2016, there was $3.4 million of additional availability under this program.

The borrower may optionally terminate the credit agreement and repay the borrowings prior to the expiration date, without premium or penalty at any time by the delivery of a notice to that effect as provided under the credit agreement. It is anticipated that the credit agreement will be terminated before a sale of the borrower. Borrowings will be used for working capital and general corporate purposes. Interest under the credit agreement is one month LIBOR plus 2.75% on drawn amounts and a fixed rate of 0.375% on undrawn amounts.

In February 2016, Volt Orangeca Real Estate Corp., an indirect wholly-owned subsidiary of the Company, entered into a PSA for the sale of real property comprised of land and buildings with office space of approximately 191,000 square feet in Orange, California (the “Property”) for a purchase price of $35.9 million. The transaction closed in March 2016 with terms consistent with the PSA and the mortgage on the Property was repaid. At November 1, 2015, the Company had $7.3 million of a long-term term loan on this Property, of which $1.0 million was current at the period end date.

XML

Stock Compensation Plans

9 Months Ended

Jul. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Plans

Stock Compensation Plans    

2015 Equity Incentive Plan

On June 9, 2016, the stockholders of the Company approved the 2015 Equity Incentive Plan (the “2015 Plan”), which replaces the 2006 Incentive Stock Plan (the “2006 Plan”) that terminated on September 5, 2016. All outstanding shares granted under the 2006 Plan will remain valid. The 2015 Plan was previously adopted by the Board on October 19, 2015 and subsequently amended on January 13, 2016. The 2015 Plan authorizes the Board to award equity-based compensation in the form of (1) stock options, including incentive stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units (“RSUs”), (5) performance awards, (6) other stock-based awards, and (7) performance compensation awards. Subject to adjustment as provided in the 2015 Plan, up to an aggregate of 3,000,000 shares of the Company’s common stock may be issued or transferred in connection with awards granted thereunder.

During the third quarter of fiscal 2016, the Company granted an aggregate of 938,767 stock options and 253,271 RSUs under the 2015 Plan in addition to 26,031 stock options and 5,233 RSUs under the 2006 Plan. This was comprised of: (i) 782,748 stock options and 156,608 RSUs granted to certain employees including executive management as long term incentive awards, (ii) 182,050 stock options and 40,016 RSUs granted to the Chief Executive Officer which was subject to shareholder approval of the 2015 Plan pursuant to his employment agreement dated October 19, 2015 and (iii) 61,880 RSUs granted to members of the Board as part of their annual compensation.

The grants were based on the fair value at the grant date with a total fair value of approximately $3.8 million. The grants for the Board members vested immediately whereas the grants for the employees will vest in tranches ratably over three years provided the employees remain employed on each of those vesting dates. The weighted average fair value per unit for the RSUs was $6.06. Compensation expense for the vested units was recognized on the grant date. The stock options have a weighted average exercise price of $6.49 and expire 10 years from the initial grant date. Compensation expense for the stock options and units that were not immediately vested is recognized over the vesting period.

Determining Fair Value - Stock Options

The fair value of the option grant was estimated using the Black-Scholes option pricing model which requires estimates of key assumptions based on both historical information and management judgment regarding market factors and trends.

Expected volatility - We developed the expected volatility by using the historical volatilities of the Company for a period equal to the expected life of the option.

Expected term - We derived our expected term assumption based on the simplified method due to a lack of historical exercise data, which results in an expected term based on the midpoint between the graded vesting dates and contractual term of an option.

Risk-free interest rate - The rates are based on the average yield of a U.S. Treasury bond whose term was consistent with the expected life of the stock options.

Expected dividend yield - We have not paid and do not anticipate paying cash dividends on our shares of common stock; therefore, the expected dividend yield was assumed to be zero.

The weighted average assumptions used to estimate the fair value of stock options for the three months ended July 31, 2016 were as follows:

Fair value of stock option granted	$	2.32
Expected volatility	40.0		%
Expected term (in years)	6.0
Risk-free interest rate	1.29		%
Expected dividend yield	0.0		%

For the three months ended July 31, 2016, stock compensation expense related to these grants was approximately $0.6 million and was recognized in Selling, administrative and other operating costs in the Company’s Consolidated Statements of Operations. As of July 31, 2016, total unrecognized compensation expense of $3.2 million related to stock options and RSUs from these grants will be recognized over the remaining weighted average vesting period of 2.75 years, of which $0.6 million, $1.7 million, $0.7 million and $0.2 million is expected to be recognized in fiscal 2016, 2017, 2018 and 2019, respectively.

XML

Earnings (Loss) Per Share

9 Months Ended

Jul. 31, 2016

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts):

	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
Numerator
Loss from continuing operations	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(19,857	)
Loss from discontinued operations, net of income taxes	—			—			—			(4,519		)
Net loss	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(24,376	)
Denominator
Basic weighted average number of shares	20,846			20,741			20,824			20,821
Diluted weighted average number of shares	20,846			20,741			20,824			20,821
Basic:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations, net of income taxes	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)
Diluted:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations, net of income taxes	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)

Options to purchase 1,898,397 and 1,007,911 shares of the Company’s common stock were outstanding at July 31, 2016 and August 2, 2015, respectively. Additionally, there were 237,864 and 42,000 unvested restricted shares outstanding at July 31, 2016 and August 2, 2015, respectively. The options and restricted shares were not included in the computation of diluted earnings (loss) per share in the three and nine months of fiscal 2016 and 2015 because the effect of their inclusion would have been anti-dilutive as a result of the Company’s net loss position in those periods.

XML

Restructuring and Severance Costs

9 Months Ended

Jul. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Severance Costs

Restructuring and Severance Costs

In November 2015, the Company implemented a cost reduction plan. In connection with the initial and ongoing plan to reduce costs, the Company estimates that it will incur restructuring charges of approximately $5.5 million in fiscal 2016, primarily resulting from a reduction in workforce, facility consolidation and lease termination costs.

The Company incurred total restructuring and severance costs of $1.0 million for the three months ended July 31, 2016 and $4.6 million for the nine months ended July 31, 2016. The following table presents the restructuring and severance costs for the three and nine months ended July 31, 2016 (in thousands):

	Three Months Ended		Nine Months Ended
	July 31, 2016		July 31, 2016
Staffing Services segment
Severance and benefit costs	$	571	$	1,928
Other	138		293
	709		2,221
Other segment
Severance and benefit costs	46		934
Corporate
Severance and benefit costs	215		1,416
Total restructuring and severance costs	$	970	$	4,571
Consolidated
Severance and benefit costs	$	832	$	4,278
Other	138		293
Total restructuring and severance costs	$	970	$	4,571

Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Condensed Consolidated Balance Sheets. Activity for the nine months ended July 31, 2016 are summarized as follows (in thousands):

Balance at November 1, 2015	$	—
Charged to expense	4,571
Cash payments	(3,607		)
Balance at July 31, 2016	$	964

The remaining charges as of July 31, 2016 for the Staffing Services and Other segments as well as Corporate of $0.7 million, $0.1 million and $0.2 million, respectively, are expected to be paid during fiscal 2016 and 2017.

XML

Commitments and Contingencies

9 Months Ended

Jul. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

(a) Legal Proceedings

The Company is involved in various claims and legal actions arising in the ordinary course of business. The Company’s loss contingencies consist primarily of claims and legal actions arising in the normal course of business related to contingent worker employment matters in the Staffing Services segment. These matters are at varying stages of investigation, arbitration or adjudication. The Company has accrued for losses on individual matters that are both probable and reasonably estimable.

Estimates are based on currently available information and assumptions. Significant judgment is required in both the determination of probability and the determination of whether a matter is reasonably estimable. The Company’s estimates may change and actual expenses could differ in the future as additional information becomes available.

XML

Segment Data

9 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Segment Data

Segment Data

The Company’s operating segments are determined in accordance with the Company’s internal management structure, which is based on operating activities. The Company is currently assessing potential changes to its reportable segments in fiscal 2016 based on the new management organization and the changes anticipated by implementing new business strategies, including the initiatives to exit non-strategic and non-core operations.

Segment operating income (loss) is comprised of segment net revenues less direct cost of staffing services revenue or cost of other revenue, selling, administrative and other operating costs and restructuring and severance costs. The Company allocates all operating costs to the segments except for costs not directly relating to operating activities such as corporate-wide general and administrative costs. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and they are not used by management to measure segment performance.

Commencing in the first quarter of fiscal 2016, the Company changed its methodology for the allocation of costs to more effectively reflect and measure the individual businesses' financial and operational efficiency.  Prior period segment results have been revised for these changes.

Financial data concerning the Company’s revenue and segment operating income (loss) by reportable operating segment for the three and nine months ended July 31, 2016 and August 2, 2015 are summarized in the following tables (in thousands):

	Three Months Ended July 31, 2016
	Total			Staffing Services		Other
Net revenue	$	330,490		$	313,428	$	17,062
Expenses
Direct cost of staffing services revenue	266,684			266,684		—
Cost of other revenue	15,110			—		15,110
Selling, administrative and other operating costs	41,367			39,926		1,441
Restructuring and severance costs	755			709		46
Segment operating income	6,574			6,109		465
Corporate general and administrative	8,345
Corporate restructuring and severance costs	215
Operating loss	$	(1,986	)

	Three Months Ended August 2, 2015
	Total			Staffing Services		Other
Net revenue	$	364,668		$	341,383	$	23,285
Expenses
Direct cost of staffing services revenue	287,554			287,554		—
Cost of other revenue	19,696			—		19,696
Selling, administrative and other operating costs	46,950			43,197		3,753
Restructuring and severance costs	400			341		59
Impairment charges	580			2,130		(1,550		)
Segment operating income	9,488			8,161		1,327
Corporate general and administrative	11,075
Corporate restructuring costs	1,467
Operating loss	$	(3,054	)

	Nine Months Ended July 31, 2016
	Total			Staffing Services		Other
Net revenue	$	992,759		$	939,356	$	53,403
Expenses
Direct cost of staffing services revenue	798,682			798,682		—
Cost of other revenue	47,785			—		47,785
Selling, administrative and other operating costs	127,042			122,676		4,366
Restructuring and severance costs	3,155			2,221		934
Segment operating income	16,095			15,777		318
Corporate general and administrative	26,977
Corporate restructuring and severance costs	1,416
Gain on sale of building	(1,663		)
Operating loss	$	(10,635	)

	Nine Months Ended August 2, 2015
	Total			Staffing Services		Other
Net revenue	$	1,132,923		$	1,064,481	$	68,442
Expenses
Direct cost of staffing services revenue	900,909			900,909		—
Cost of other revenue	59,210			—		59,210
Selling, administrative and other operating costs	148,354			137,721		10,633
Restructuring and severance costs	651			616		35
Impairment charges	5,954			3,107		2,847
Segment operating income (loss)	17,845			22,128		(4,283		)
Corporate general and administrative	29,873
Corporate restructuring and severance costs	2,442
Operating loss	$	(14,470	)

XML

Subsequent Event

9 Months Ended

Jul. 31, 2016

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On September 6, 2016, the Company amended its Financing Program to increase the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. The Company entered into this amendment to utilize the additional borrowing base provided by the current and potential growth in eligible accounts receivable balances.

On September 7, 2016, the Company's Human Resources and Compensation Committee of the Board of Directors approved the Volt Information Sciences, Inc. Annual Incentive Plan ("AIP"). The purpose of the AIP is to provide eligible employees with annual compensation opportunities intended to promote and reward both company and individual performances that are aligned with the overall company strategy.

XML

Basis of Presentation (Policies)

9 Months Ended

Jul. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. (“Volt” or the “Company”) have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended November 1, 2015. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, are based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended November 1, 2015.

Certain reclassifications have been made to the prior year financial statements in order to conform to the current year's presentation.

Recently Issued Accounting Pronouncements and Recently Adopted Accounting Standards

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies. Unless otherwise discussed, the Company believes that the adoption of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption.

In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force. The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. For public business entities that are SEC filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  This ASU requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. This update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact that the adoption of this ASU will have on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU requires that debt issuance costs related to a recognized liability be presented on the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 clarifies the guidance in ASU 2015-03 regarding presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. The SEC Staff announced they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These ASUs are effective for reporting periods beginning after December 15, 2015, including interim reporting periods within those fiscal years.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This ASU is effective for the annual period ending after December 15, 2016, with early adoption permitted.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This standard is effective for fiscal years and interim reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that period. The Company is currently assessing the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures upon implementation in the first quarter of fiscal 2019.

From March through May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606):Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606):Identifying Performance Obligations and Licensing, ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815):Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606):Narrow-Scope Improvements and Practical Expedients. These amendments are intended to improve and clarify the implementation guidance of Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of ASU No. 2014-09 and ASU No. 2015-14.

Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

Recently Adopted Accounting Standards

In November 2015, the FASB issued Accounting Standards Update ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The amendments in this update simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The Company has early adopted ASU 2015-17 prospectively beginning in the first quarter of fiscal 2016. Other than the revised balance sheet presentation of deferred taxes from current to non-current, the adoption of this ASU did not have a material impact to our consolidated financial statements.

XML

Discontinued Operations (Tables)

9 Months Ended

Jul. 31, 2016

Disposed of by Sale

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of discontinued operations activity

The following table reconciles the major line items in the Condensed Consolidated Statements of Operations for discontinued operations (in thousands):

	Nine Months Ended August 2, 2015
Loss from discontinued operations
Net revenue	$	4,708
Cost of revenue	5,730
Selling, administrative and other operating costs	1,388
Restructuring and other related costs	1,709
Other (income) expense, net	(978		)
Loss from discontinued operations	(3,141		)
Loss on disposal of discontinued operations	(1,187		)
Loss from discontinued operations before income taxes	(4,328		)
Income tax provision	191
Loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations	$	(4,519	)

XML

Assets and Liabilities Held for Sale (Tables)

9 Months Ended

Jul. 31, 2016

Assets Held-for-sale

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of major classes of assets and liabilities classified as held for sale

The following table reconciles the major classes of assets and liabilities classified as held for sale as part of continuing operations in the Condensed Consolidated Balance Sheets (in thousands):

	July 31, 2016		November 1, 2015
Assets included as part of continuing operations
Cash and cash equivalents	$	825	$	1,537
Trade accounts receivable, net	14,591		15,671
Recoverable income taxes	54		165
Prepaid insurance and other assets	3,573		4,886
Property, equipment and software, net	142		189
Purchased intangible assets	495		495
Total major classes of assets as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	19,680	$	22,943
Liabilities included as part of continuing operations
Accrued compensation	$	2,439	$	3,509
Accounts payable	684		1,387
Accrued taxes other than income taxes	775		1,165
Accrued insurance and other	586		523
Deferred revenue	1,087		761
Total major classes of liabilities as part of continuing operations - Maintech and Lakyfor, S.A. (1)	$	5,571	$	7,345

⁽¹⁾ The Balance Sheet as of July 31, 2016 only includes Maintech.

XML

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Jul. 31, 2016

Equity [Abstract]

Schedule of accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive loss for the three and nine months ended July 31, 2016 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016						July 31, 2016
	Foreign Currency Translation			Unrealized Loss on Marketable Securities			Foreign Currency Translation			Unrealized Loss on Marketable Securities
Accumulated other comprehensive loss at beginning of the period	$	(7,667	)	$	(25	)	$	(7,971	)	$	(23	)
Other comprehensive income (loss) before reclassifications	(1,437		)	25			(1,133		)	23
Accumulated other comprehensive loss at July 31, 2016	$	(9,104	)	$	—		$	(9,104	)	$	—
Reclassifications from accumulated other comprehensive loss for the three and nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
Foreign currency translation
Sale of foreign subsidiaries, net of tax	$	—		$	—		$	—		$	(3,181	)
Closure of foreign subsidiary	(643		)	—			(643		)	—
Amount reclassified from accumulated other comprehensive loss for the nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
Details about Accumulated Other Comprehensive Loss Components	Fiscal Year			Amount Reclassified			Affected Line Item in the Statement Where Net Loss is Presented
Foreign currency translation
Closure of foreign subsidiary	2016			$	643		Foreign exchange gain (loss), net
Sale of foreign subsidiaries	2015			3,181			Discontinued operations

Reclassification out of accumulated other comprehensive loss

The changes in accumulated other comprehensive loss for the three and nine months ended July 31, 2016 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016						July 31, 2016
	Foreign Currency Translation			Unrealized Loss on Marketable Securities			Foreign Currency Translation			Unrealized Loss on Marketable Securities
Accumulated other comprehensive loss at beginning of the period	$	(7,667	)	$	(25	)	$	(7,971	)	$	(23	)
Other comprehensive income (loss) before reclassifications	(1,437		)	25			(1,133		)	23
Accumulated other comprehensive loss at July 31, 2016	$	(9,104	)	$	—		$	(9,104	)	$	—
Reclassifications from accumulated other comprehensive loss for the three and nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
Foreign currency translation
Sale of foreign subsidiaries, net of tax	$	—		$	—		$	—		$	(3,181	)
Closure of foreign subsidiary	(643		)	—			(643		)	—
Amount reclassified from accumulated other comprehensive loss for the nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
Details about Accumulated Other Comprehensive Loss Components	Fiscal Year			Amount Reclassified			Affected Line Item in the Statement Where Net Loss is Presented
Foreign currency translation
Closure of foreign subsidiary	2016			$	643		Foreign exchange gain (loss), net
Sale of foreign subsidiaries	2015			3,181			Discontinued operations

XML

Stock Compensation Plans (Tables)

9 Months Ended

Jul. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Weighted average assumptions used to estimate fair value of stock options

The weighted average assumptions used to estimate the fair value of stock options for the three months ended July 31, 2016 were as follows:

Fair value of stock option granted	$	2.32
Expected volatility	40.0		%
Expected term (in years)	6.0
Risk-free interest rate	1.29		%
Expected dividend yield	0.0		%

XML

Earnings (Loss) Per Share (Tables)

9 Months Ended

Jul. 31, 2016

Earnings Per Share [Abstract]

Summary of basic and diluted net income (loss) per share

Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts):

	Three Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 31, 2016			August 2, 2015
Numerator
Loss from continuing operations	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(19,857	)
Loss from discontinued operations, net of income taxes	—			—			—			(4,519		)
Net loss	$	(4,610	)	$	(4,144	)	$	(17,357	)	$	(24,376	)
Denominator
Basic weighted average number of shares	20,846			20,741			20,824			20,821
Diluted weighted average number of shares	20,846			20,741			20,824			20,821
Basic:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations, net of income taxes	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)
Diluted:
Loss from continuing operations	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(0.95	)
Loss from discontinued operations, net of income taxes	—			—			—			(0.22		)
Net loss	$	(0.22	)	$	(0.20	)	$	(0.83	)	$	(1.17	)

XML

Restructuring and Severance Costs (Tables)

9 Months Ended

Jul. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and severance costs

The following table presents the restructuring and severance costs for the three and nine months ended July 31, 2016 (in thousands):

	Three Months Ended		Nine Months Ended
	July 31, 2016		July 31, 2016
Staffing Services segment
Severance and benefit costs	$	571	$	1,928
Other	138		293
	709		2,221
Other segment
Severance and benefit costs	46		934
Corporate
Severance and benefit costs	215		1,416
Total restructuring and severance costs	$	970	$	4,571
Consolidated
Severance and benefit costs	$	832	$	4,278
Other	138		293
Total restructuring and severance costs	$	970	$	4,571

Schedule of restructuring and severance costs included in accrued compensation and accrued insurance

Activity for the nine months ended July 31, 2016 are summarized as follows (in thousands):

Balance at November 1, 2015	$	—
Charged to expense	4,571
Cash payments	(3,607		)
Balance at July 31, 2016	$	964

XML

Segment Data (Tables)

9 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Summary of sales and segment operating income (loss) by reportable operating segment

Financial data concerning the Company’s revenue and segment operating income (loss) by reportable operating segment for the three and nine months ended July 31, 2016 and August 2, 2015 are summarized in the following tables (in thousands):

	Three Months Ended July 31, 2016
	Total			Staffing Services		Other
Net revenue	$	330,490		$	313,428	$	17,062
Expenses
Direct cost of staffing services revenue	266,684			266,684		—
Cost of other revenue	15,110			—		15,110
Selling, administrative and other operating costs	41,367			39,926		1,441
Restructuring and severance costs	755			709		46
Segment operating income	6,574			6,109		465
Corporate general and administrative	8,345
Corporate restructuring and severance costs	215
Operating loss	$	(1,986	)

	Three Months Ended August 2, 2015
	Total			Staffing Services		Other
Net revenue	$	364,668		$	341,383	$	23,285
Expenses
Direct cost of staffing services revenue	287,554			287,554		—
Cost of other revenue	19,696			—		19,696
Selling, administrative and other operating costs	46,950			43,197		3,753
Restructuring and severance costs	400			341		59
Impairment charges	580			2,130		(1,550		)
Segment operating income	9,488			8,161		1,327
Corporate general and administrative	11,075
Corporate restructuring costs	1,467
Operating loss	$	(3,054	)

	Nine Months Ended July 31, 2016
	Total			Staffing Services		Other
Net revenue	$	992,759		$	939,356	$	53,403
Expenses
Direct cost of staffing services revenue	798,682			798,682		—
Cost of other revenue	47,785			—		47,785
Selling, administrative and other operating costs	127,042			122,676		4,366
Restructuring and severance costs	3,155			2,221		934
Segment operating income	16,095			15,777		318
Corporate general and administrative	26,977
Corporate restructuring and severance costs	1,416
Gain on sale of building	(1,663		)
Operating loss	$	(10,635	)

	Nine Months Ended August 2, 2015
	Total			Staffing Services		Other
Net revenue	$	1,132,923		$	1,064,481	$	68,442
Expenses
Direct cost of staffing services revenue	900,909			900,909		—
Cost of other revenue	59,210			—		59,210
Selling, administrative and other operating costs	148,354			137,721		10,633
Restructuring and severance costs	651			616		35
Impairment charges	5,954			3,107		2,847
Segment operating income (loss)	17,845			22,128		(4,283		)
Corporate general and administrative	29,873
Corporate restructuring and severance costs	2,442
Operating loss	$	(14,470	)

XML

Discontinued Operations - Additional Information (Details) - Disposed of by Sale - Computer Systems Segment - USD ($)		3 Months Ended	9 Months Ended
	Dec. 01, 2014	Feb. 01, 2015	Jul. 31, 2016	Aug. 02, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on disposal		$ 1,200,000
Restructuring and other related costs		2,200,000		$ 1,709,000
NewNet Communication Technologies, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Note receivable	$ 10,000,000.0
Interest rate	0.50%
Payment term	4 years
Payment to acquire note receivable	$ 4,000,000
Payment term	45 days
Working capital	$ 6,000,000
Notes receivable, fair value	$ 8,400,000
Unamortized discount			$ 1,100,000
Employee Severance
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring and other related costs		900,000
Professional Fees Incurred
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring and other related costs		900,000
Lease Obligation Costs
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring and other related costs		$ 400,000
Payments for restructuring			2,000,000
Expected cost remaining			$ 200,000
Maximum | NewNet Communication Technologies, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Capital interest percentage	20.00%

XML

Discontinued Operations - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Feb. 01, 2015	Jul. 31, 2016	Aug. 02, 2015
Loss from discontinued operations
Other (income) expense, net	$ 402	$ 178		$ 1,101	$ 37
Loss from discontinued operations before income taxes	$ 0	$ 0		$ 0	(4,519)
Disposed of by Sale | Computer Systems Segment
Loss from discontinued operations
Net revenue					4,708
Cost of revenue					5,730
Selling, administrative and other operating costs					1,388
Restructuring and other related costs			$ 2,200		1,709
Other (income) expense, net					(978)
Loss from discontinued operations					(3,141)
Loss on disposal of discontinued operations					(1,187)
Loss from discontinued operations before income taxes					(4,328)
Income tax provision					191
Loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations					$ (4,519)

XML

Assets and Liabilities Held for Sale (Details) - Assets Held-for-sale - Information Technology Infrastructure Support Service - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Nov. 01, 2015	Jul. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of assets		$ 700
Loss on disposal of discontinued operations	$ 100
Assets included as part of continuing operations
Cash and cash equivalents		1,537	$ 825
Trade accounts receivable, net		15,671	14,591
Recoverable income taxes		165	54
Prepaid insurance and other assets		4,886	3,573
Property, equipment and software, net		189	142
Purchased intangible assets		495	495
Total major classes of assets of discontinued operations - Computer Systems		22,943	19,680
Liabilities included as part of continuing operations
Accrued compensation		3,509	2,439
Accounts payable		1,387	684
Accrued taxes other than income taxes		1,165	775
Accrued insurance and other		523	586
Deferred revenue		761	1,087
Total major classes of liabilities of discontinued operations - Computer Systems		$ 7,345	$ 5,571

XML

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Closure of foreign subsidiary	$ 1,003	$ (1,010)	$ 1,238	$ 153
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss, beginning balance	(7,667)		(7,971)
Other comprehensive income (loss) before reclassifications	(1,437)		(1,133)
Accumulated other comprehensive loss, ending balance	(9,104)		(9,104)
Foreign Currency Translation | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Sale of foreign subsidiaries, net of tax	0	0	0	(3,181)
Closure of foreign subsidiary	(643)	$ 0	(643)	$ 0
Unrealized Loss on Marketable Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss, beginning balance	(25)		(23)
Other comprehensive income (loss) before reclassifications	25		23
Accumulated other comprehensive loss, ending balance	$ 0		$ 0

XML

Restricted Cash and Short-Term Investments - Additional Information (Detail) - Restricted cash and short-term investments - USD ($) $ in Millions	Jul. 31, 2016	Nov. 01, 2015
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 10.6	$ 9.3
Short-term investments	3.8	4.8
Short-Term Credit Facility
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted as collateral	$ 2.0	$ 0.9

XML

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Income Tax Disclosure [Abstract]
Income tax provision	$ 393	$ 1,351	$ 2,037	$ 3,262

XML

Real Estate Transactions (Details) ft² in Thousands, $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2016 USD ($) ft² renewal_option	Feb. 29, 2016 USD ($) ft²	Jul. 31, 2016 USD ($)	May 01, 2016 USD ($)	Jul. 31, 2016 USD ($)
Volt Orangeca Real Estate Corp
Sale Leaseback Transaction [Line Items]
Sales of real estate	$ 35.9	$ 35.9
Term of lease agreement	15 years
Number of renewal options | renewal_option	2
Operating leases, renewal term	5 years
Annual rental payments	$ 2.9
Percentage increase in annual base rent	3.00%
Security deposit	$ 2.1
Gain on sale of property	$ 29.4
Current period gain recognized			$ 0.5		$ 0.8
Volt Opportunity Road Realty Corp
Sale Leaseback Transaction [Line Items]
Sales of real estate				$ 2.2
Gain on sale of property				$ 1.7
Office Building | Volt Orangeca Real Estate Corp
Sale Leaseback Transaction [Line Items]
Area of real estate property | ft²	191	191
Office Building | Volt Opportunity Road Realty Corp
Sale Leaseback Transaction [Line Items]
Area of real estate property | ft²	19

XML

Debt - Additional Information (Detail) ft² in Thousands, £ in Millions, CAD in Millions		1 Months Ended		2 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2016 USD ($) ft²	Feb. 29, 2016 USD ($) ft²	Jan. 31, 2016	Dec. 31, 2015	Jul. 31, 2016 USD ($)	Aug. 02, 2015	Jul. 31, 2016 USD ($)	Aug. 02, 2015	Oct. 31, 2016 USD ($)	Jul. 01, 2016 USD ($)	May 01, 2016 GBP (£)	May 01, 2016 CAD	May 01, 2016 USD ($)	Nov. 01, 2015 USD ($)	Jul. 31, 2015 USD ($)
Letter of Credit
Extinguishment of Debt [Line Items]
Current borrowing capacity													$ 50,000,000
Fair value of amount outstanding					$ 31,000,000		$ 31,000,000
Letter of Credit, Casualty Insurance Program
Extinguishment of Debt [Line Items]
Fair value of amount outstanding					28,900,000		28,900,000
Letter of Credit, Security Deposit
Extinguishment of Debt [Line Items]
Fair value of amount outstanding					2,100,000		2,100,000
Line of Credit
Extinguishment of Debt [Line Items]
Current borrowing capacity											£ 20.0	CAD 30.0	150,000,000
Minimum funding threshold percent			40.00%	60.00%
Commitment fee percentage			0.70%	0.65%
Fair value of amount outstanding					151,700,000		151,700,000
Cash collateral for borrowed securities					35,000,000.0		35,000,000.0			$ 50,000,000.0					$ 20,000,000
Borrowing capacity of facility					150,000,000		150,000,000						$ 250,000,000.0
Amount outstanding					$ 90,000,000		$ 90,000,000							$ 100,000,000
Weighted average interest rate during period					2.40%	1.70%	2.30%	1.70%
Available borrowing capacity of facility					$ 29,000,000		$ 29,000,000
Line of Credit | Forecast
Extinguishment of Debt [Line Items]
Cash collateral for borrowed securities									$ 50,000,000.0
Short-Term Financing Program
Extinguishment of Debt [Line Items]
Weighted average interest rate during period						1.70%
Short-Term Financing Program | Line of Credit
Extinguishment of Debt [Line Items]
Weighted average interest rate during period						1.90%
London Interbank Offered Rate (LIBOR) | Line of Credit
Extinguishment of Debt [Line Items]
Basis spread on variable rate			1.90%	1.75%
Maintech, Incorporated | Letter of Credit
Extinguishment of Debt [Line Items]
Current borrowing capacity		$ 100,000
Portion of debt secured by parent		3,000,000
Maintech, Incorporated | Revolving Credit Facility
Extinguishment of Debt [Line Items]
Current borrowing capacity		$ 10,000,000
Amount outstanding					2,000,000		2,000,000
Available borrowing capacity of facility					$ 3,400,000		$ 3,400,000
Term of debt instrument		364 days
Stated interest rate		0.375%
Maintech, Incorporated | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Extinguishment of Debt [Line Items]
Basis spread on variable rate		2.75%
Volt Orangeca Real Estate Corp
Extinguishment of Debt [Line Items]
Sales of real estate	$ 35,900,000	$ 35,900,000
Long-term debt														7,300,000
Current maturities														$ 1,000,000
Office Building | Volt Orangeca Real Estate Corp
Extinguishment of Debt [Line Items]
Area of real estate property | ft²	191	191

XML

Stock Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2016	Aug. 02, 2015	Jun. 09, 2016
Black-Scholes Option Pricing Model
Stock compensation expense	$ 600	$ 1,020	$ 2,564
Compensation cost not yet recognized	3,200	$ 3,200
Compensation cost not yet recognized, period for recognition		2 years 9 months
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Compensation cost not yet recognized, expected in 2016	600	$ 600
Compensation cost not yet recognized, expected in 2017	1,700	1,700
Compensation cost not yet recognized, expected in 2018	700	700
Compensation cost not yet recognized, expected in 2019	$ 200	$ 200
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, weighted average grant date fair value (usd per share)	$ 2.32
Black-Scholes Option Pricing Model
Expected volatility	40.00%
Expected term (in years)	6 years
Risk-free interest rate	1.29%
Expected dividend yield	0.00%
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (shares)				3,000,000
2015 Equity Incentive Plan | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)	938,767
2015 Equity Incentive Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (shares)	253,271
2006 Plan | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)	26,031
2006 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (shares)	5,233
Certain Employees | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)	782,748
Certain Employees | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (shares)	156,608
Chief Executive Officer | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)	182,050
Chief Executive Officer | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (shares)	40,016
Board of Directors | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (shares)	61,880
Senior level employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period, fair value	$ 3,800
Award vesting period	3 years
Senior level employees | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, weighted average grant date fair value (usd per share)	$ 6.49
Expiration period	10 years
Senior level employees | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs, weighted average grant date fair value (usd per share)	$ 6.06

XML

Earnings (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Numerator
Loss from continuing operations	$ (4,610)	$ (4,144)	$ (17,357)	$ (19,857)
Loss from discontinued operations, net of income taxes	0	0	0	(4,519)
NET LOSS	$ (4,610)	$ (4,144)	$ (17,357)	$ (24,376)
Denominator
Basic weighted average number of shares (shares)	20,846	20,741	20,824	20,821
Dilutive weighted average number of shares (shares)	20,846	20,741	20,824	20,821
Basic:
Loss from continuing operations (usd per share)	$ (0.22)	$ (0.20)	$ (0.83)	$ (0.95)
Loss from discontinued operations (usd per share)	0.00	0.00	0.00	(0.22)
Net loss (usd per share)	(0.22)	(0.20)	(0.83)	(1.17)
Diluted:
Loss from continuing operations (usd per share)	(0.22)	(0.20)	(0.83)	(0.95)
Loss from discontinued operations (usd per share)	0.00	0.00	0.00	(0.22)
Net loss (usd per share)	$ (0.22)	$ (0.20)	$ (0.83)	$ (1.17)

XML

Earnings (Loss) Per Share - Additional Information (Detail) - shares	Jul. 31, 2016	Aug. 02, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options to purchase common stock outstanding (shares)	1,898,397	1,007,911
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Restricted shares outstanding (shares)	237,864	42,000

XML

Restructuring and Severance Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015	Nov. 30, 2015
Restructuring Cost and Reserve [Line Items]
Expected cost					$ 5,500
Restructuring and severance costs	$ 970	$ 1,867	$ 4,571	$ 3,093
Restructuring Reserve [Roll Forward]
Charged to expense	970		4,571
Severance and benefit costs
Restructuring Reserve [Roll Forward]
Charged to expense	832		4,278
Other
Restructuring Reserve [Roll Forward]
Charged to expense	138		293
Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring and severance costs	755	400	3,155	651
Operating Segments | Staffing Services
Restructuring Cost and Reserve [Line Items]
Expected cost	700		700
Restructuring and severance costs	709	341	2,221	616
Restructuring Reserve [Roll Forward]
Beginning Balance			0
Charged to expense	709		2,221
Cash payments			(3,607)
Ending Balance	964		964
Operating Segments | Staffing Services | Severance and benefit costs
Restructuring Reserve [Roll Forward]
Charged to expense	571		1,928
Operating Segments | Staffing Services | Other
Restructuring Reserve [Roll Forward]
Charged to expense	138		293
Operating Segments | Other
Restructuring Cost and Reserve [Line Items]
Expected cost	100		100
Restructuring and severance costs	46	59	934	35
Operating Segments | Other | Severance and benefit costs
Restructuring Reserve [Roll Forward]
Charged to expense	46		934
Corporate
Restructuring Cost and Reserve [Line Items]
Expected cost	200		200
Restructuring and severance costs	215	$ 1,467	1,416	$ 2,442
Corporate | Severance and benefit costs
Restructuring Reserve [Roll Forward]
Charged to expense	$ 215		$ 1,416

XML

Segment Data - Summary of Sales and Segment Operating Income (Loss) by Reportable Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenue	$ 330,490	$ 364,668	$ 992,759	$ 1,132,923
Expenses
Direct cost of staffing services revenue	266,684	287,554	798,682	900,909
Cost of other revenue	15,110	19,696	47,785	59,210
Selling, administrative and other operating costs	49,712	58,025	154,019	178,227
Restructuring and severance costs	970	1,867	4,571	3,093
Gain on sale of building	0	0	(1,663)	0
Impairment charges	0	580	0	5,954
OPERATING LOSS	(1,986)	(3,054)	(10,635)	(14,470)
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenue	330,490	364,668	992,759	1,132,923
Expenses
Direct cost of staffing services revenue	266,684	287,554	798,682	900,909
Cost of other revenue	15,110	19,696	47,785	59,210
Selling, administrative and other operating costs	41,367	46,950	127,042	148,354
Restructuring and severance costs	755	400	3,155	651
Impairment charges		580		5,954
Segment operating income	6,574	9,488	16,095	17,845
Operating Segments | Staffing Services
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenue	313,428	341,383	939,356	1,064,481
Expenses
Direct cost of staffing services revenue	266,684	287,554	798,682	900,909
Cost of other revenue	0	0	0	0
Selling, administrative and other operating costs	39,926	43,197	122,676	137,721
Restructuring and severance costs	709	341	2,221	616
Impairment charges		2,130		3,107
Segment operating income	6,109	8,161	15,777	22,128
Operating Segments | Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net revenue	17,062	23,285	53,403	68,442
Expenses
Direct cost of staffing services revenue	0	0	0	0
Cost of other revenue	15,110	19,696	47,785	59,210
Selling, administrative and other operating costs	1,441	3,753	4,366	10,633
Restructuring and severance costs	46	59	934	35
Impairment charges		(1,550)		2,847
Segment operating income	465	1,327	318	(4,283)
Corporate general and administrative
Expenses
Selling, administrative and other operating costs	8,345	11,075	26,977	29,873
Restructuring and severance costs	$ 215	$ 1,467	$ 1,416	$ 2,442

XML

Subsequent Event (Details) - Line of Credit - USD ($)	Sep. 06, 2016	Jul. 31, 2016	May 01, 2016
Subsequent Event [Line Items]
Borrowing capacity of facility		$ 150,000,000	$ 250,000,000.0
Subsequent Event
Subsequent Event [Line Items]
Borrowing capacity of facility	$ 160,000,000