Income Taxes (Tables)

12 Months Ended

Oct. 28, 2012

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

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

	Year ended
	October 28, 2012			October 30, 2011		October 31, 2010
U.S. Domestic	$	(18,008	)	$	3,511	$	(38,419	)
International, principally Europe		6,796			11,770		4,658
	$	(11,212	)	$	15,281	$	(33,761	)

Schedule of Components of Income Tax Expense

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

	Year ended
	October 28, 2012			October 30, 2011			October 31, 2010
Current:
U.S. Federal	$	(558	)	$	991		$	(8,728	)
State and local		75			(528	)		216
International, principally Europe		1,068			4,122			3,875
	$	585		$	4,585		$	(4,637	)
Deferred:
U.S. Federal	$	-		$	-		$	54,904
State and local		-			(2,500	)		13,160
International, principally Europe		1,806			(2,433	)		(813	)
		1,806			(4,933	)		67,251
	$	2,391		$	(348	)	$	62,614

Schedule of Income Tax Rate Reconciliation

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

	Year ended
	October 28, 2012			October 30, 2011			October 31, 2010
U.S. federal statutory rate	$	(3,924	)	$	5,349		$	(11,816	)
State income tax, net of US federal tax benefits		(95	)		495			11,479
Income from international sources		2,127			5,312			2,832
Foreign permanent differences		(286	)		841			1,246
International tax rate differentials		98			(1,274	)		(589	)
Foreign tax credit		-			(1,857	)		(3,675	)
General business credits		(2,967	)		(5,363	)		(1,300	)
Meals and entertainment		1,713			2,013			1,742
Other, net		(770	)		1,732			(75	)
Change in valuation allowance for deferred tax assets		6,495			(7,596	)		62,770
	$	2,391		$	(348	)	$	62,614

Components of Deferred Tax Assets and Liabilities

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

	Year ended
	October 28, 2012			October 30, 2011
Deferred tax assets:
Net operating loss carryforwards	$	35,163		$	22,488
U.S. federal tax credit carryforwards		20,018			15,781
Purchased intangible assets		15,683			16,274
Deferred income		13,809			23,073
Compensation accruals		7,949			7,791
Accelerated tax depreciation and amortization		1,538			369
Other accruals, reserves and allowances		519			1,686
Other, net		5,585			8,279
Total deferred tax assets		100,264			95,741
Less valuation allowance		(82,952	)		(76,374	)
Deferred tax assets, net	$	17,312		$	19,367

	Year ended
	October 28, 2012			October 30, 2011
Deferred tax liabilities:
Unremitted earnings from foreign subsidiaries	$	8,974		$	8,833
Software development costs		891			718
Other, net		5,139			5,681
Total deferred tax liabilities		15,004			15,232
Net deferred tax asset	$	2,308		$	4,135
Balance sheet classification
Current assets	$	1,321		$	3,382
Non-current assets		6,019			6,461
Current liabilities		(2,273	)		(2,216	)
Non-current liabilities		(2,759	)		(3,492	)
Net deferred tax asset	$	2,308		$	4,135

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):

	Year ended
	October 28, 2012			October 30, 2011
Balance, beginning of year	$	10,287		$	9,601
Increase related to current year tax provisions		1,069			710
Lapse of statute of limitations		(284	)		(24	)
	$	11,072		$	10,287

Schedule of Open Tax Years, by Major Tax Jurisdiction

The following describes the open tax years, by major tax jurisdiction, as of October 28, 2012:

United States – Federal	2004-present
United States – State	2004-present
Canada	2006-present
Germany	2006-present
United Kingdom	2006-present