Taxes on Income

9 Months Ended

Nov. 02, 2019

Income Tax Disclosure [Abstract]

Taxes on Income

10. Taxes on Income

Each reporting period, the Company evaluates the realizability of its deferred tax assets.  As of November 2, 2019, the Company continued to maintain a full valuation allowance against its deferred tax assets in the United States and the foreign subsidiaries acquired in the Hi-Tec Acquisition.  These valuation allowances will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that these deferred tax assets will be realized.   

As of November 2, 2019, the reserve for uncertain tax positions resulting from unrecognized tax benefits related to the Company’s Hi-Tec subsidiaries was $3.3 million.  There was no change in the three months ended November 2, 2019 and a decrease of $0.1 million in the nine months ended November 2, 2019, in the Company’s liability for uncertain tax positions.