Income Taxes (Tables)

12 Months Ended

Nov. 03, 2013

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
	November 3, 2013		October 28, 2012		October 30, 2011
U.S. Domestic	$	(27,273)	$	(18,008)	$	3,511
International, principally Europe		(3,133)		6,796		11,770
Total	$	(30,406)	$	(11,212)	$	15,281

Schedule of Components of Income Tax Expense (Benefit)

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

	Year ended
	November 3, 2013		October 28, 2012		October 30, 2011
Current:
U.S. Federal	$	(146)	$	(558)	$	991
State and local		(378)		75		(528)
International, principally Europe		2,675		1,068		4,122
Total current	$	2,151	$	585	$	4,585
Deferred:
U.S. Federal	$	-	$	-	$	-
State and local		-		-		(2,500)
International, principally Europe		(1,682)		1,806		(2,433)
Total deferred		(1,682)		1,806		(4,933)
Income tax expense (benefit)	$	469	$	2,391	$	(348)

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
	November 3, 2013		October 28, 2012		October 30, 2011
U.S. federal statutory rate	$	(10,642)	$	(3,924)	$	5,349
State income tax, net of U.S. federal tax benefits		(1,463)		(95)		495
Income from international sources		119		2,127		5,312
Foreign permanent differences		(1,539)		(286)		841
International tax rate differentials		14		98		(1,274)
General business credits		(4,977)		(2,967)		(5,363)
Meals and entertainment		987		1,713		2,013
Foreign tax credit		-		-		(1,857)
Other, net		1,258		(770)		1,732
Change in valuation allowance for deferred tax assets		16,712		6,495		(7,596)
Total	$	469	$	2,391	$	(348)

Components of Deferred Tax Assets and Liabilities

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

	November 3, 2013		October 28, 2012
Deferred tax assets:
Net operating loss carryforwards	$	55,130	$	35,163
US federal tax credit carryforwards		27,676		20,018
Purchased intangible assets		13,363		15,683
Deferred income		10,418		13,809
Compensation accruals		7,996		7,949
Accelerated tax depreciation and amortization		-		1,538
Other accruals, reserves and allowances		548		519
Other, net		3,704		5,585
Total deferred tax assets		118,835		100,264
Less valuation allowance		(100,376)		(82,952)
Deferred tax assets, net	$	18,459	$	17,312

	November 3, 2013		October 28, 2012
Deferred tax liabilities:
Unremitted earnings from foreign subsidiaries	$	8,769	$	8,974
Software development costs		883		891
Other, net		4,783		5,139
Total deferred tax liabilities		14,435		15,004
Net deferred tax asset	$	4,024	$	2,308
Balance sheet classification
Current assets	$	1,014	$	1,321
Non-current assets		9,286		6,019
Current liabilities		(4,574)		(2,273)
Non-current liabilities		(1,702)		(2,759)
Net deferred tax asset	$	4,024	$	2,308

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):

	November 3, 2013		October 28, 2012
Balance, beginning of year	$	11,072	$	10,287
Increase related to current year tax provisions		73		1,069
Settlements		(313)		-
Lapse of statute of limitations		(1,636)		(284)
Total	$	9,196	$	11,072

Schedule of Open Tax Years, by Major Tax Jurisdiction

The following describes the open tax years, by major tax jurisdiction, as of November 3, 2013:

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