Income Taxes (Tables)

12 Months Ended

Nov. 02, 2014

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 2, 2014			November 3, 2013			October 28, 2012
U.S. Domestic	$	(2,148	)	$	(8,970	)	$	(20,545	)
International, principally Europe	3,987			(851		)	6,222
Total	$	1,839		$	(9,821	)	$	(14,323	)

Schedule of Components of Income Tax Expense (Benefit)

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

	Year ended
	November 2, 2014			November 3, 2013			October 28, 2012
Current:
U.S. Federal	$	(36	)	$	(146	)	$	(558	)
U.S. State and local	978			(162		)	40
International, principally Europe	1,996			3,129			1,659
Total current	$	2,938		$	2,821		$	1,141
Deferred:
U.S. Federal	$	—		$	—		$	—
U.S. State and local	225			—			—
International, principally Europe	2,063			101			571
Total deferred	2,288			101			571
Income tax expense	$	5,226		$	2,922		$	1,712

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
	November 2, 2014			November 3, 2013			October 28, 2012
U.S. federal statutory rate	$	643		$	(3,437	)	$	(5,014	)
U.S. State income tax, net of U.S. federal tax benefits	530			(1,336		)	614
International permanent differences	(489		)	320			1,141
International tax rate differentials	345			(364		)	(1,007		)
U.S. tax on international income	1,787			554			3,328
General business credits	(5,642		)	(4,977		)	(2,967		)
Meals and entertainment	770			941			1,661
Other, net	(294		)	1,686			289
Change in valuation allowance for deferred tax assets	7,576			9,535			3,667
Total	$	5,226		$	2,922		$	1,712

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 2, 2014			November 3, 2013
Deferred tax assets:
Net operating loss carryforwards	$	58,740		$	50,201
U.S. federal tax credit carryforwards	35,364			27,676
Purchased intangible assets	11,183			13,363
Deferred income	3,482			8,659
Compensation accruals	6,645			7,996
Other, net	6,225			3,914
Total deferred tax assets	121,639			111,809
Less valuation allowance	(109,245		)	(96,231		)
Deferred tax assets, net	$	12,394		$	15,578
Deferred tax liabilities:
Unremitted earnings from foreign subsidiaries	$	8,714		$	8,769
Software development costs	175			1,317
Accelerated tax depreciation and amortization	2,580			9
Other, net	1,786			4,170
Total deferred tax liabilities	$	13,255		$	14,265
Net deferred tax asset (liability)	$	(861	)	$	1,313
Balance sheet classification
Current assets	$	320		$	—
Non-current assets	2,992			4,422
Current liabilities	(2,910		)	(2,759		)
Non-current liabilities	(1,263		)	(350		)
Net deferred tax asset (liability)	$	(861	)	$	1,313

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 2, 2014			November 3, 2013
Balance, beginning of year	$	8,459		$	9,773
Decrease related to current year tax provisions	(458		)	(103		)
Settlements	—			(313		)
Lapse of statute of limitations	(672		)	(898		)
Total	$	7,329		$	8,459

Schedule of Open Tax Years, by Major Tax Jurisdiction

The following describes the open tax years, by major tax jurisdiction, as of November 2, 2014:

United States - Federal	2004-present
United States - State	2004-present
Canada	2007-present
United Kingdom	2011-present