Income Taxes (Tables)

12 Months Ended

Oct. 28, 2018

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 28, 2018			October 29, 2017
U.S. Domestic	$	(36,077	)	$	22,464
International	4,350			9,749
Income (loss) from continuing operations before income tax	$	(31,727	)	$	32,213

Schedule of components of income tax expense (benefit)

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



	Year Ended
	October 28, 2018			October 29, 2017
Current:
U.S. Federal	$	(1,423	)	$	(1,178	)
U.S. State and local	188			448
International	2,169			3,399
Total current	$	934		$	2,669
Deferred:
U.S. Federal	$	—		$	1
U.S. State and local	(2		)	721
International	26			(3		)
Total deferred	24			719
Income tax provision	$	958		$	3,388

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 28, 2018			October 29, 2017
U.S. Federal statutory rate	$	(7,424	)	$	11,275
U.S. State income tax, net of U.S. Federal tax benefits	212			419
International permanent differences	(161		)	651
International tax rate differentials	1,282			(467		)
U.S. tax on international income	(1,136		)	3,446
General business credits	(2,400		)	1,099
Meals and entertainment	64			163
Other, net	(1,108		)	(387		)
Change in valuation allowance for rate change	26,798			—
Change in valuation allowance for dispositions	—			(2,211		)
Change in valuation allowance for deferred tax assets	(15,169		)	(10,600		)
Income tax provision	$	958		$	3,388

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 28, 2018			October 29, 2017
Deferred tax assets:
Net operating loss carryforwards	$	55,522		$	66,806
Capital loss carryforwards	3,403			5,293
U.S. federal tax credit carryforwards	51,288			48,154
Deferred income	6,366			10,251
Compensation accruals	4,305			6,276
Other, net	5,365			8,738
Total deferred tax assets	126,249			145,518
Less valuation allowance	(118,559		)	(134,195		)
Deferred tax assets, net	7,690			11,323

Deferred tax liabilities:
Unremitted earnings from foreign subsidiaries	2,010			3,453
Software development costs	4,884			6,403
Other, net	959			1,606
Total deferred tax liabilities	7,853			11,462
Net deferred tax asset (liability)	$	(163	)	$	(139	)

Balance sheet classification
Non-current assets	$	347		$	1,067
Non-current liabilities	(510		)	(1,206		)
Net deferred tax asset (liability)	$	(163	)	$	(139	)

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 28, 2018			October 29, 2017
Balance, beginning of year	$	1,495		$	5,237
Add related to current year tax provision	(10		)	269
Reduction for tax provision of prior years - (a)	—			(2,973		)
Settlements	—			(993		)
Lapse of statute of limitations	(994		)	(45		)
Total	$	491		$	1,495

(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 of approximately $3.7 million is subject to recognition under ASC 460 by the Company. This amount had previously been recognized as part of the Company’s uncertain tax positions and has been reclassified to Accrued insurance and other under ASC 460. As of October 28, 2018, the liability provision was $1.6 million.