Income Taxes (Tables)

12 Months Ended

Oct. 29, 2017

Schedule of income before income tax, domestic and foreign

Income (loss) from continuing operations before income taxes is derived from (in thousands):



	Year Ended
	October 29, 2017		October 30, 2016			November 1, 2015
U.S. Domestic	$	22,464	$	(20,643	)	$	(63,205	)
International	9,749		8,248			48,065
Income (loss) from continuing operations before income tax	$	32,213	$	(12,395	)	$	(15,140	)

Schedule of components of income tax expense (benefit)

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



	Year Ended
	October 29, 2017			October 30, 2016			November 1, 2015
Current:
U.S. Federal	$	(1,178	)	$	86		$	90
U.S. State and local	448			186			(1,616		)
International	3,399			2,444			5,200
Total current	$	2,669		$	2,716		$	3,674
Deferred:
U.S. Federal	$	1		$	—		$	—
U.S. State and local	721			(190		)	634
International	(3		)	(351		)	338
Total deferred	719			(541		)	972
Income tax provision	$	3,388		$	2,175		$	4,646

Schedule of income tax rate reconciliation

The difference between the income tax provision on income (loss) and the amount computed at the U.S. federal statutory rate is due to (in thousands):



	Year Ended
	October 29, 2017			October 30, 2016			November 1, 2015
U.S. Federal statutory rate	$	11,275		$	(4,338	)	$	(5,299	)
U.S. State income tax, net of U.S. Federal tax benefits	419			513			(1,435		)
International permanent differences	651			(110		)	(4,293		)
International tax rate differentials	(467		)	(1,291		)	(7,046		)
U.S. tax on international income	3,446			3,136			(1,118		)
General business credits	1,099			(4,287		)	(3,839		)
Meals and entertainment	163			209			531
Other, net	(387		)	(160		)	942
Change in valuation allowance for dispositions	(2,211		)	—			(4,237		)
Change in valuation allowance for deferred tax assets	(10,600		)	8,503			30,440
Income tax provision	$	3,388		$	2,175		$	4,646

Components of deferred tax assets and liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):



	October 29, 2017			October 30, 2016
Deferred tax assets:
Net operating loss carryforwards	$	66,806		$	62,670
Capital loss carryforwards	5,293			21,131
U.S. federal tax credit carryforwards	48,154			47,866
Deferred income	10,251			10,714
Compensation accruals	6,276			6,170
Other, net	8,738			7,813
Total deferred tax assets	145,518			156,364
Less valuation allowance	(134,195		)	(144,863		)
Deferred tax assets, net	11,323			11,501

Deferred tax liabilities:
Unremitted earnings from foreign subsidiaries	3,453			3,356
Software development costs	6,403			5,226
Other, net	1,606			3,914
Total deferred tax liabilities	11,462			12,496
Net deferred tax asset (liability)	$	(139	)	$	(995	)

Balance sheet classification
Non-current assets	$	1,067		$	2,142
Non-current liabilities	(1,206		)	(3,137		)
Net deferred tax asset (liability)	$	(139	)	$	(995	)

Schedule of uncertain tax positions

The following table sets forth the change in the accrual for uncertain tax positions, excluding interest and penalties (in thousands):



	October 29, 2017			October 30, 2016
Balance, beginning of year	$	5,237		$	5,215
Add related to current year tax provision	269			52
Reduction for tax provision of prior years - (a)	(2,973		)	—
Settlements	(993		)	—
Lapse of statute of limitations	(45		)	(30		)
Total	$	1,495		$	5,237

(a) - As a result of the sale of the quality assurance business, the parent-subsidiary relationship between the Company and Volt Canada, Inc. no longer exists and, as such, the indemnity granted at the time of sale is subject to recognition under ASC 460 by the Company. As of October 27, 2017, the Company recognized approximately $3.7 million related to the fair value of amounts accrued by Volt Canada, Inc. as of the date of the separation which are expected to be covered by the indemnity. If additional information becomes available, the Company will update the liability provision for the indemnity. This amount had previously been recognized as part of the Company’s FIN 48 liability and has been reclassified to Accrued insurance and other under ASC 460.