Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 28, 2018 | Jan. 04, 2019 | Apr. 27, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Oct. 28, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VISI | ||
Entity Registrant Name | VOLT INFORMATION SCIENCES, INC. | ||
Entity Central Index Key | 103,872 | ||
Current Fiscal Year End Date | --10-28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding (shares) | 21,191,030 | ||
Entity Public Float | $ 43,665,518 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Income Statement [Abstract] | ||
NET REVENUE | $ 1,039,170 | $ 1,194,436 |
Cost of services | 885,492 | 1,007,041 |
GROSS MARGIN | 153,678 | 187,395 |
Selling, administrative and other operating costs | 173,337 | 197,130 |
Restructuring and severance costs | 8,242 | 1,379 |
Gain from divestitures | 0 | (51,971) |
Settlement and impairment charges | 506 | 1,694 |
OPERATING INCOME (LOSS) | (28,407) | 39,163 |
OTHER INCOME (EXPENSE), NET | ||
Interest income | 173 | 39 |
Interest expense | (2,765) | (3,790) |
Foreign exchange gain (loss), net | 403 | (1,637) |
Other income (expense), net | (1,131) | (1,562) |
TOTAL OTHER INCOME (EXPENSE), NET | (3,320) | (6,950) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (31,727) | 32,213 |
Income tax provision | 958 | 3,388 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (32,685) | 28,825 |
DISCONTINUED OPERATIONS | ||
Loss from discontinued operations, net of income taxes | 0 | (1,693) |
NET INCOME (LOSS) | $ (32,685) | $ 27,132 |
Basic: | ||
Income (loss) from continuing operations (USD per share) | $ (1.55) | $ 1.38 |
Loss from discontinued operations (USD per share) | 0 | (0.08) |
Net Income (loss) (USD per share) | $ (1.55) | $ 1.30 |
Weighted average number of shares (shares) | 21,051 | 20,942 |
Diluted: | ||
Income (loss) from continuing operations (USD per share) | $ (1.55) | $ 1.37 |
Loss from discontinued operations (USD per share) | 0 | (0.08) |
Net Income (loss) (USD per share) | $ (1.55) | $ 1.29 |
Weighted average number of shares (shares) | 21,051 | 21,017 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ (32,685) | $ 27,132 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments net of taxes of $0 and $0, respectively | (1,809) | 5,351 |
Total other comprehensive income (loss) | (1,809) | 5,351 |
COMPREHENSIVE INCOME (LOSS) | $ (34,494) | $ 32,483 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, taxes | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 28, 2018 | Oct. 29, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 24,763 | $ 37,077 |
Restricted cash | 11,781 | 17,020 |
Short-term investments | 3,063 | 3,524 |
Trade accounts receivable, net of allowances of $759 and $1,249, respectively | 157,445 | 173,818 |
Recoverable income taxes | 96 | 1,643 |
Other current assets | 7,348 | 11,755 |
TOTAL CURRENT ASSETS | 204,496 | 244,837 |
Other assets, excluding current portion | 7,808 | 10,851 |
Property, equipment and software, net | 24,392 | 29,121 |
TOTAL ASSETS | 236,696 | 284,809 |
CURRENT LIABILITIES: | ||
Accrued compensation | 27,120 | 24,504 |
Accounts payable | 33,498 | 36,895 |
Accrued taxes other than income taxes | 15,275 | 20,467 |
Accrued insurance and other | 23,335 | 30,282 |
Short-term borrowings, including current portion of long-term debt | 0 | 50,000 |
Income taxes payable | 1,097 | 808 |
TOTAL CURRENT LIABILITIES | 100,325 | 162,956 |
Accrued insurance and other, excluding current portion | 13,478 | 10,828 |
Deferred gain on sale of real estate, excluding current portion | 22,216 | 24,162 |
Income taxes payable, excluding current portion | 600 | 1,663 |
Deferred income taxes | 510 | 1,206 |
Long-term debt, excluding current portion, net | 49,068 | 0 |
TOTAL LIABILITIES | 186,197 | 200,815 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none | 0 | 0 |
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003; Outstanding - 21,179,068 and 21,026,253, respectively | 2,374 | 2,374 |
Paid-in capital | 79,057 | 78,645 |
Retained earnings | 9,738 | 45,843 |
Accumulated other comprehensive loss | (7,070) | (5,261) |
Treasury stock, at cost; 2,558,935 and 2,711,750 shares, respectively | (33,600) | (37,607) |
TOTAL STOCKHOLDERS’ EQUITY | 50,499 | 83,994 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 236,696 | $ 284,809 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 28, 2018 | Oct. 29, 2017 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 759 | $ 1,249 |
Preferred stock, par value (USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (shares) | 500,000 | 500,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (shares) | 23,738,003 | 23,738,003 |
Common stock, shares outstanding (shares) | 21,179,068 | 21,026,253 |
Treasury stock, shares (shares) | 2,558,935 | 2,711,750 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
BALANCE (shares) at Oct. 30, 2016 | 23,738,003 | |||||
BALANCE at Oct. 30, 2016 | $ 48,965 | $ 2,374 | $ 76,564 | $ 21,000 | $ (10,612) | $ (40,361) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 27,132 | 27,132 | ||||
Share-based compensation expense | 2,595 | 2,595 | ||||
Issuance of common stock | (49) | (514) | (2,289) | 2,754 | ||
Other comprehensive income (loss) | 5,351 | 5,351 | ||||
BALANCE (shares) at Oct. 29, 2017 | 23,738,003 | |||||
BALANCE at Oct. 29, 2017 | 83,994 | $ 2,374 | 78,645 | 45,843 | (5,261) | (37,607) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (32,685) | (32,685) | ||||
Share-based compensation expense | 1,270 | 1,270 | ||||
Issuance of common stock | (271) | (858) | (3,420) | 4,007 | ||
Other comprehensive income (loss) | (1,809) | (1,809) | ||||
BALANCE (shares) at Oct. 28, 2018 | 23,738,003 | |||||
BALANCE at Oct. 28, 2018 | $ 50,499 | $ 2,374 | $ 79,057 | $ 9,738 | $ (7,070) | $ (33,600) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | Oct. 28, 2018 | Oct. 29, 2017 | Oct. 30, 2016 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (USD per share) | $ 0.10 | $ 0.10 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET INCOME (LOSS) | $ (32,685) | $ 27,132 |
Loss from discontinued operations, net of income taxes | 0 | (1,693) |
Income (loss) from continuing operations | (32,685) | 28,825 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 7,209 | 8,025 |
Provisions (release) of doubtful accounts and sales allowances | (198) | 1,039 |
Unrealized foreign currency exchange loss | 27 | 1,262 |
Settlement and impairment charges | 506 | 1,694 |
Amortization of gain on sale leaseback of property | (1,944) | (1,946) |
Gain (loss) from divestitures | 266 | (51,959) |
Deferred income tax provision | 24 | 719 |
Share-based compensation expense | 1,270 | 2,755 |
Change in operating assets and liabilities: | ||
Trade accounts receivable | 16,735 | 5,928 |
Restricted cash | 5,239 | (6,673) |
Other assets | 5,111 | 6,760 |
Accounts payable | (3,723) | 4,475 |
Accrued expenses and other liabilities | (4,107) | (11,072) |
Income taxes | 774 | 14,737 |
Net cash provided by (used in) operating activities | (5,496) | 4,569 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Sales of investments | 755 | 884 |
Purchases of investments | (443) | (380) |
Net proceeds from divestitures | 0 | 81,102 |
Proceeds from sales of property, equipment and software | 19 | 372 |
Purchases of property, equipment, and software | (3,565) | (9,312) |
Net cash provided by (used in) investing activities | (3,234) | 72,666 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of borrowings | (124,696) | (77,050) |
Draw-down on borrowings | 124,696 | 30,000 |
Debt issuance costs | (1,469) | (1,190) |
Proceeds from exercise of stock options | 0 | 2 |
Withholding tax payment on vesting of restricted stock awards | (271) | (52) |
Net cash used in financing activities | (1,740) | (48,290) |
Effect of exchange rate changes on cash and cash equivalents | (1,844) | 1,746 |
Net increase (decrease) in cash and cash equivalents | (12,314) | 30,691 |
Cash and cash equivalents, beginning of year | 37,077 | 6,386 |
Cash and cash equivalents, end of year | 24,763 | 37,077 |
Cash paid during the year: | ||
Interest | 2,765 | 3,840 |
Income taxes | $ 3,341 | $ 3,521 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Oct. 28, 2018 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies We are a global provider of staffing services (traditional time and materials-based as well as project-based). Our staffing services consist of workforce solutions that include providing contingent workers, personnel recruitment services, and managed staffing services programs supporting primarily administrative and light industrial (“commercial”) as well as technical, information technology and engineering (“professional”) positions. Our managed service programs (“MSP”) involves managing the procurement and on-boarding of contingent workers from multiple providers. Our customer care solutions business specializes in serving as an extension of our customers' consumer relationships and processes including collaborating with customers, from help desk inquiries to advanced technical support. We also provided quality assurance services through the date of sale of this business in October 2017. In addition, through the date of the sale of Maintech in March 2017, we provided information technology infrastructure services. Our information technology infrastructure services provided server, storage, network and desktop IT hardware maintenance, data center and network monitoring and operations. Our complementary businesses offer customized talent and supplier management solutions to a diverse client base. Volt services global industries including aerospace, automotive, banking and finance, consumer electronics, information technology, insurance, life sciences, manufacturing, media and entertainment, pharmaceutical, software, telecommunications, transportation, and utilities. The Company was incorporated in New York in 1957. The Company's stock is traded on the NYSE AMERICAN under the symbol “VISI”. (a) Fiscal Year The Company’s fiscal year ends on the Sunday nearest October 31st. The fiscal years 2018 and 2017 consisted of 52 weeks. (b) Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries over which the Company exercises control. All intercompany balances and transactions have been eliminated in consolidation. (c) Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates, assumptions and judgments, including those related to revenue recognition, allowance for doubtful accounts, casualty reserves, valuation of goodwill, intangible assets and other long-lived assets, stock compensation, employee benefit plans, restructuring and severance accruals, income taxes and related valuation allowances and loss contingencies. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. (d) Revenue Recognition Revenue is generally recognized when persuasive evidence of an arrangement exists, products have been delivered or services have been rendered, the fee is fixed or determinable, and collectability is reasonably assured. For any arrangements within the scope of the multiple-deliverable guidance, a deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. Services are sometimes provided despite a customer arrangement not yet being finalized. In these cases, revenue is deferred until arrangements are finalized or in some cases until cash is received. The cumulative revenue deferred for each arrangement is recognized in the period the revenue recognition criteria are met. The following revenue recognition policies define the manner in which the Company accounts for specific transaction types: Staffing Services Revenue is primarily derived from supplying contingent staff to the Company’s customers or providing other services on a time and material basis. Contingent staff primarily consist of contingent workers working under a contract for a fixed period of time or on a specific customer project. Revenue is also derived from permanent placement services, which is generally recognized after placements are made and when the fees are not contingent upon any future event. Our technology outsourcing services, from our quality assurance business, which was sold in the fourth quarter of fiscal 2017, provided pre- and post- production development support, testing, and customer support to companies in the mobile, gaming, and technology devices industries. Reimbursable costs, including those related to travel and out-of-pocket expenses, are also included in Net revenue, and equivalent amounts of reimbursable costs are included in Cost of services. Under certain of the Company’s service arrangements, contingent staff are provided to customers through contracts involving other vendors or contractors. When the Company is the principal in the transaction and therefore the primary obligor for the contingent staff, we record the gross amount of the revenue and expense from the service arrangement. When the Company acts only as an agent for the customer and is not the primary obligor for the contingent staff, we record revenue net of vendor or contractor costs. The Company is generally the primary obligor when responsible for the fulfillment of services under the contract, even if the contingent workers are neither employees of the Company nor directly contracted by the Company. Usually, in these situations, the contractual relationship with the vendors and contractors is exclusively with the Company and the Company bears customer credit risk and generally has latitude in establishing vendor pricing and has discretion in vendor or contractor selection. The Company is generally not the primary obligor when we provide comprehensive administration of multiple vendors for customers that operate significant contingent workforces, referred to as managed service programs. The Company is considered an agent in these transactions if it does not have responsibility for the fulfillment of the services by the vendors or contractors (referred to as associate vendors). In such arrangements, the Company is typically designated by its customers to be a facilitator of consolidated associate vendor billing and a processor of the payments to be made to the associate vendors on behalf of the customer. Usually in these situations the contractual relationship is between the customers, the associate vendors and the Company, with the associate vendors being the primary obligor and assuming the customer credit risk and the Company generally earning negotiated fixed mark-ups and not having discretion in supplier selection. Information Technology Infrastructure Services Revenue from hardware maintenance, computer and network operations infrastructure services under fixed-price contracts and stand-alone post-contract support was generally recognized ratably over the contract period, provided that all other revenue recognition criteria are met, and the cost associated with these contracts were recognized as incurred. For time and material contracts, the Company recognized revenue and costs as services are rendered, provided that all other revenue recognition criteria are met. (e) Expense Recognition Cost of services within staffing services consists primarily of contingent worker payroll, related employment taxes and benefits, and the cost of facilities used by contingent workers in fulfilling assignments and projects for staffing services customers, including reimbursable costs. Indirect cost of staffing services is included in Selling, administrative and other operating costs in the Consolidated Statements of Operations. The Cost of services differ from the cost included within Selling, administrative and other operating costs in that they arise specifically and directly from the actions of providing staffing services to customers. Cost of information technology infrastructure services consisted of the direct and indirect cost of providing non-staffing services, which include payroll and related employment taxes, benefits, materials, and equipment costs. Gross margin is calculated as revenue less direct costs for staffing services and revenue less direct and indirect costs for non-staffing services. Selling, Administrative and Other Operating Costs Selling, administrative and other operating costs primarily relate to the Company’s selling and administrative efforts, as well as the indirect costs associated with providing staffing services. (f) Comprehensive Income (Loss) Comprehensive income (loss) is the net income (loss) of the Company combined with other changes in stockholders’ equity not involving ownership interest changes. The Company recognizes foreign currency translation as comprehensive income (loss). (g) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. (h) Short-Term Investments and Related Deferred Compensation, Net The Company has a nonqualified deferred compensation and supplemental savings plan that permits eligible employees to defer a portion of their compensation. The employee compensation deferral is invested in short-term investments corresponding to the employees’ investment selections, primarily mutual funds, which are held in a trust and are reported at current market prices. The liability associated with the nonqualified deferred compensation and supplemental savings plan consists of participant deferrals and earnings thereon, and is reflected as a current liability within Accrued compensation in an amount equal to the fair value of the underlying short-term investments held in the plan. Changes in asset values result in offsetting changes in the liability as the employees realize the rewards and bear the risks of their investment selections. (i) Property, Equipment and Software, Net Property and equipment are stated at cost and depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs for software that will be used for internal purposes and incurred during the application development stage are capitalized and amortized to expense over the estimated useful life of the underlying software. Training and maintenance costs are expensed as incurred. The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Buildings 25 to 32 years Machinery and Equipment 3 to 15 years Leasehold improvements Shorter of length of lease or life of the asset Software 3 to 7 years Property, equipment and software are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or it is no longer probable that software development will be completed. If circumstances require a long-lived asset or asset group be reviewed for possible impairment, the Company first compares undiscounted cash flows expected to be generated by each asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds the fair value. (j) Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The Company early-adopted and applies the method of assessing goodwill for possible impairment permitted by Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. The Company first assesses the qualitative factors for reporting units that carry goodwill. If the qualitative assessment results in a conclusion that it is more likely than not that the fair value of a reporting unit exceeds the carrying value, then no further testing is performed for that reporting unit. When a qualitative assessment is not used, or if the qualitative assessment is not conclusive and it is necessary to calculate fair value of a reporting unit, then the impairment analysis for goodwill is performed at the reporting unit level using a one-step approach. In conducting the goodwill impairment test, the fair value of a reporting unit is compared with its carrying amount utilizing various valuation techniques. If the fair value of the reporting unit exceeds its carrying value, then no further testing is performed. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The Company performs its annual impairment review of goodwill in its second fiscal quarter and when a triggering event occurs between annual impairment tests. (k) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using current tax laws and rates in effect for the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized within income in the period that includes the enactment date. The Company must then assess the likelihood that its deferred tax assets will be realized. If the Company does not believe that it is more likely than not that its deferred tax assets will be realized, a valuation allowance is established. When a valuation allowance is increased or decreased, a corresponding tax expense or benefit is recorded. Accounting for income taxes involves uncertainty and judgment in how to interpret and apply tax laws and regulations within the Company’s annual tax filings. Such uncertainties may result in tax positions that may be challenged and overturned by a tax authority in the future, which would result in additional tax liability, interest charges and possible penalties. Interest and penalties are classified as a component of income tax expense. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. Changes in recognition or measurement are reflected in the period in which the change in estimate occurs. (l) Share-Based Compensation The Company accounts for share-based awards as either equity or liability awards based upon the characteristics of each instrument. The compensation cost is measured based on the grant date fair value of the award. The fair value of liability awards is re-measured periodically based on the effect that the market condition has on these awards. The share-based compensation expense for all awards are recognized over the requisite service or performance periods as a cost in Selling, administrative and other operating costs in the Company’s Consolidated Statement of Operations. The Company has elected to account for forfeitures as they occur. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate any remaining unearned stock-based compensation cost or incur incremental cost. (m) Foreign Currency Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at average exchange rates during the year which approximate the rates in effect at the transaction dates. The resulting translation adjustments are directly recorded to a separate component of Accumulated other comprehensive income (loss). Gains and losses arising from intercompany foreign currency transactions that are of a long-term nature are reported in the same manner as translation adjustments. Gains and losses arising from intercompany foreign currency transactions that are not of a long-term nature and certain transactions of the Company’s subsidiaries which are denominated in currencies other than the subsidiaries’ functional currency are recognized as incurred in Foreign exchange gain (loss), net in the Consolidated Statements of Operations. (n) Fair Value Measurement In accordance with Accounting Standards Codification ( “ASC”) 820, Fair Value Measurements ( “ASC 820”), the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities, quoted prices for identically similar assets or liabilities in markets that are not active and models for which all significant inputs are observable either directly or indirectly. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs for inactive markets. The Company uses this framework for measuring fair value and disclosures about fair value measurement. The Company uses fair value measurements in areas that include: the allocation of purchase price consideration to tangible, and identifiable intangible assets; impairment testing for goodwill and long-lived assets; share-based compensation arrangements, and financial instruments. The carrying amounts of the Company’s financial instruments, which include cash, cash equivalents, restricted cash, accounts receivable, accounts payable, and short-term borrowings under the Company’s credit facilities, approximated their fair values, due to the short-term nature of these instruments, and the fair value of the long-term debt is based on the interest rates the Company believes it could obtain for borrowings with similar terms. The Company recognizes transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. (o) Legal and Other Contingencies The Company is involved in various demands, claims and actual and threatened litigation that arise in the normal course of business. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, a liability and an expense are recorded for the estimated loss. Significant judgment is required in both the determination of probability and the determination of whether an exposure is reasonably estimable. Actual expenses could differ from these estimates in subsequent periods as additional information becomes known. (p) Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions and deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and the Company mitigates its credit risk by spreading its deposits across multiple financial institutions and monitoring their respective risk profiles. (q) Restructuring and Severance Charges The Company accounts for restructuring activities in accordance with ASC 420, Exit or Disposal Cost Obligations. Under the guidance, for the cost of restructuring activities that do not constitute a discontinued operation, the liability for the current fair value of expected future costs associated with such restructuring activity is recognized in the period in which the liability is incurred. The costs of restructuring activities taken pursuant to a management approved restructuring plan are segregated. (r) Earnings (Loss) Per Share Basic earnings per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. The diluted earnings per share computation includes the effect of potential common shares outstanding during the period. Potential common shares include the dilutive effects of shares that would be issuable upon the exercise of outstanding "in the money" stock options and unvested restricted stock units. The dilutive impact is determined by applying the treasury stock method. Performance-based share awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied by the end of the reporting period, or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive. (s) Treasury Stock The Company records treasury stock at the cost to acquire it and includes treasury stock as a component of Stockholders’ Equity. In determining the cost of the treasury shares when either sold or issued, the Company uses the FIFO (first-in, first-out) method. If the proceeds from the sale of the treasury shares are greater than the cost of the shares sold, the excess proceeds are recorded as additional paid-in capital. If the proceeds from the sale of the treasury shares are less than the original cost of the shares sold, the excess cost first reduces any additional paid-in capital arising from previous sales of treasury shares for that class of stock, and any additional excess is recorded as a reduction of retained earnings. (t) Assets and Liabilities Held for Sale The Company classifies long-lived assets (disposal group) to be sold as held for sale in accordance with ASU 2014-08, Presentation Of Financial Statements (Topic 205) And Property, Plant, And Equipment (Topic 360): Reporting Discontinued Operations And Disclosures Of Disposals Of Components Of An Entity (“ASU 2014-08“), in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal group); an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year , except if events or circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset (disposal group) that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale. The fair value of a long-lived asset (disposal group) less any costs to sell is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the asset (disposal group), as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset (disposal group) meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented, if material, in the line items Assets held for sale and Liabilities held for sale, respectively, in the Consolidated Balance Sheets. (u) Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. For any transaction expected to be structured as a sale of shares of an entity and not a sale of assets, the Company classifies the deferred taxes as part of Assets or Liabilities held for sale. (v) Reclassifications Certain reclassifications have been made to the prior year financial statements in order to conform to the current year’s presentation. Currently, the reclassifications are related to segment reporting changes. (w) New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. New Accounting Standards Not Yet Adopted by the Company On August 29, 2018, the FASB issued ASU 2018-15 , Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”), which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption of the amendments is permitted including adoption in any interim period. The amendments in ASU 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. ASU 2018-15 is effective for the Company in the first quarter of fiscal 2021. The Company is currently evaluating the impact that ASU 2018-15 has upon adoption on its consolidated financial statements. On August 28, 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC 820. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of ASU 2018-13. ASU 2018-13 is effective for the Company in the first quarter of fiscal 2021. The Company does not anticipate a significant impact upon adoption. In June 2018, the FASB issued ASU 2018-07, C ompensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the guidance in Topic 718 to include share-based payments for goods and services to non-employees and generally aligns it with the guidance for share-based payments to employees. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, which for the Company will be the first quarter of fiscal 2020. The Company does not anticipate a significant impact upon adoption. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments are effective for annual periods beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. The Company does not anticipate a significant impact upon adoption based on the historical and current trend of the Company’s modifications for share-based awards, but the impact could be affected by the types of modifications, if any, at that time. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets (“ASU 2017-05”). ASU 2017-05 clarifies the scope and application of ASC 610-20 on the sale or transfer of non-financial assets and in substance non-financial assets to non-customers, including partial sales. The amendments are effective for annual reporting periods beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. The Company does not anticipate a significant impact upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force . The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The amendments are effective for fiscal years beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. The Company does not anticipate a significant impact upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. The amendments are effective for fiscal years beginning after December 15, 2019, which for the Company will be the first quarter of fiscal 2021. Although the impact upon adoption will depend on the financial instruments held by the Company at that time, the Company does not anticipate a significant impact on its consolidated financial statements based on the instruments currently held and its historical trend of bad debt expense relating to trade accounts receivable. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The FASB issued subsequent amendments to improve and clarify the implementation guidance of Topic 842. The amendments are effective for fiscal years begi |
Sale of Quality Assurance and I
Sale of Quality Assurance and Information Technology Infrastructure Businesses | 12 Months Ended |
Oct. 28, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Quality Assurance and Information Technology Infrastructure Businesses | Sale of Quality Assurance and Information Technology Infrastructure Businesses Quality Assurance Business On October 27, 2017, the Company completed the sale of its quality assurance business within the Technology Outsourcing Services and Solutions segment to Keywords International Limited and Keywords Studios plc for a purchase price of $66.4 million , subject to a customary working capital adjustment. The gain on sale of $48.0 million was recorded in continuing operations in the Consolidated Statements of Operations for the year ended October 29, 2017. The divestiture did not meet the criteria to be presented as discontinued operations in accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) . However, the disposition did represent an individually significant component of the Company’s business. The pretax income of the quality assurance business included in the Company’s Consolidated Statements of Operations prior to the disposition was $4.5 million . Concurrently with the sale, the Company entered into a Transition Services and Asset Transfer Agreement, under which the Company continued to provide certain accounting and operational support services to the buyer, on a monthly fee-for-service basis for a period of up to six months post-closing. Information Technology Infrastructure Business In March 2017, the Company completed the sale of Maintech to Maintech Holdings, LLC, a newly-formed holding company and affiliate of Oak Lane Partners, LLC (“Buyer”). Under the terms of the Stock Purchase Agreement, the Company received proceeds of $18.3 million , subject to a $0.1 million holdback and certain adjustments including a customary working capital adjustment that was finalized within 60 days of the sale. Net proceeds from the transaction amounted to $13.1 million after certain transaction-related fees, expenses and repayment of an outstanding Bank of America, N.A. (“BofA”) loan balance. The Company recognized a gain on disposal of $3.9 million from the sale transaction in the second quarter of fiscal 2017. Concurrently with the sale, the Company entered into a Transition Services and Asset Transfer Agreement, under which the Company continued to provide certain accounting and operational support services to the Buyer, on a monthly fee-for-service basis for a period of up to six months post-closing. The Company and Maintech have also executed a three -year IT as a service agreement, whereby Maintech will continue to provide helpdesk and network monitoring services to the Company, similar to the services that were provided before the transaction. Discontinued Operations On December 1, 2014, the Company completed the sale of its Computer Systems segment to NewNet Communication Technologies, LLC (“NewNet”), a Skyview Capital, LLC, portfolio company. The proceeds of the transaction were a $10.0 million note bearing interest at one half percent ( 0.5 percent) per year due in four years and convertible into a capital interest of up to 20% in NewNet. The note was valued at $8.4 million on the transaction date which approximated fair value. The unamortized discount for the note was $1.1 million through the settlement date. On October 27, 2017, the Company and NewNet entered into a Settlement Agreement and Mutual General Release (the “Settlement Agreement”). Pursuant to the terms of the Settlement Agreement, NewNet agreed to early payment of the note for $7.5 million . The payment was offset by a $1.5 million deduction to settle the outstanding working capital adjustment and minor indemnity claims under the Membership Interest Purchase Agreement dated as of December 1, 2014 (the “Purchase Agreement”), and receivables under the transition services agreement related to the Purchase Agreement. As a result, the Company received $6.0 million on a net basis. The early payment of the note resulted in a settlement charge of $1.4 million , which was recorded in the Consolidated Statements of Operations for the year ended October 29, 2017. The Company also incurred a working capital adjustment of $1.7 million , which was recorded as a loss on disposal in Discontinued operations in the Consolidated Statements of Operations for the year ended October 29, 2017. The following table reconciles the major line items in the Company’s Consolidated Statements of Operations for discontinued operations (in thousands): Year Ended October 29, 2017 Loss from discontinued operations Net revenue $ — Cost of services — Selling, administrative and other operating costs — Other (income) expense, net — Loss from discontinued operations — Loss on disposal of discontinued operations (1,693 ) Loss from discontinued operations before income taxes (1,693 ) Income tax provision — Loss from discontinued operations that is presented in the Consolidated Statements of Operations $ (1,693 ) |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Oct. 28, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Sale of Quality Assurance and Information Technology Infrastructure Businesses Quality Assurance Business On October 27, 2017, the Company completed the sale of its quality assurance business within the Technology Outsourcing Services and Solutions segment to Keywords International Limited and Keywords Studios plc for a purchase price of $66.4 million , subject to a customary working capital adjustment. The gain on sale of $48.0 million was recorded in continuing operations in the Consolidated Statements of Operations for the year ended October 29, 2017. The divestiture did not meet the criteria to be presented as discontinued operations in accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) . However, the disposition did represent an individually significant component of the Company’s business. The pretax income of the quality assurance business included in the Company’s Consolidated Statements of Operations prior to the disposition was $4.5 million . Concurrently with the sale, the Company entered into a Transition Services and Asset Transfer Agreement, under which the Company continued to provide certain accounting and operational support services to the buyer, on a monthly fee-for-service basis for a period of up to six months post-closing. Information Technology Infrastructure Business In March 2017, the Company completed the sale of Maintech to Maintech Holdings, LLC, a newly-formed holding company and affiliate of Oak Lane Partners, LLC (“Buyer”). Under the terms of the Stock Purchase Agreement, the Company received proceeds of $18.3 million , subject to a $0.1 million holdback and certain adjustments including a customary working capital adjustment that was finalized within 60 days of the sale. Net proceeds from the transaction amounted to $13.1 million after certain transaction-related fees, expenses and repayment of an outstanding Bank of America, N.A. (“BofA”) loan balance. The Company recognized a gain on disposal of $3.9 million from the sale transaction in the second quarter of fiscal 2017. Concurrently with the sale, the Company entered into a Transition Services and Asset Transfer Agreement, under which the Company continued to provide certain accounting and operational support services to the Buyer, on a monthly fee-for-service basis for a period of up to six months post-closing. The Company and Maintech have also executed a three -year IT as a service agreement, whereby Maintech will continue to provide helpdesk and network monitoring services to the Company, similar to the services that were provided before the transaction. Discontinued Operations On December 1, 2014, the Company completed the sale of its Computer Systems segment to NewNet Communication Technologies, LLC (“NewNet”), a Skyview Capital, LLC, portfolio company. The proceeds of the transaction were a $10.0 million note bearing interest at one half percent ( 0.5 percent) per year due in four years and convertible into a capital interest of up to 20% in NewNet. The note was valued at $8.4 million on the transaction date which approximated fair value. The unamortized discount for the note was $1.1 million through the settlement date. On October 27, 2017, the Company and NewNet entered into a Settlement Agreement and Mutual General Release (the “Settlement Agreement”). Pursuant to the terms of the Settlement Agreement, NewNet agreed to early payment of the note for $7.5 million . The payment was offset by a $1.5 million deduction to settle the outstanding working capital adjustment and minor indemnity claims under the Membership Interest Purchase Agreement dated as of December 1, 2014 (the “Purchase Agreement”), and receivables under the transition services agreement related to the Purchase Agreement. As a result, the Company received $6.0 million on a net basis. The early payment of the note resulted in a settlement charge of $1.4 million , which was recorded in the Consolidated Statements of Operations for the year ended October 29, 2017. The Company also incurred a working capital adjustment of $1.7 million , which was recorded as a loss on disposal in Discontinued operations in the Consolidated Statements of Operations for the year ended October 29, 2017. The following table reconciles the major line items in the Company’s Consolidated Statements of Operations for discontinued operations (in thousands): Year Ended October 29, 2017 Loss from discontinued operations Net revenue $ — Cost of services — Selling, administrative and other operating costs — Other (income) expense, net — Loss from discontinued operations — Loss on disposal of discontinued operations (1,693 ) Loss from discontinued operations before income taxes (1,693 ) Income tax provision — Loss from discontinued operations that is presented in the Consolidated Statements of Operations $ (1,693 ) |
Restricted Cash and Short-Term
Restricted Cash and Short-Term Investments | 12 Months Ended |
Oct. 28, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Short-Term Investments | Restricted Cash and Short-Term Investments Restricted cash primarily includes amounts related to requirements under certain contracts with managed service program customers for whom the Company manages the customers’ contingent staffing requirements, including processing of associate vendor billings into single, combined customer billings and distribution of payments to associate vendors on behalf of customers, as well as minimum cash deposits required to be maintained as collateral. Distribution of payments to associate vendors are generally made shortly after receipt of payment from customers, with undistributed amounts included in restricted cash and accounts payable between receipt and distribution of these amounts. Changes in restricted cash collateral are classified as an operating activity, as this cash is directly related to the operations of this business. At October 28, 2018 and October 29, 2017 restricted cash included $11.3 million and $15.1 million , respectively, restricted for payment to associate vendors and $0.5 million and $1.9 million , respectively, restricted for other collaterized accounts. At October 28, 2018 and October 29, 2017, short-term investments were $3.1 million and $3.5 million , respectively. These short-term investments consisted primarily of the fair value of deferred compensation investments corresponding to employees’ selections, primarily in mutual funds, based on quoted prices in active markets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Oct. 28, 2018 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents assets and liabilities measured at fair value (in thousands): October 28, 2018 October 29, Fair Value Hierarchy Short-term investments $ 3,063 $ 3,524 Level 1 Total financial assets $ 3,063 $ 3,524 Deferred compensation plan liabilities $ 3,063 $ 3,524 Level 1 Total financial liabilities $ 3,063 $ 3,524 The fair value of the deferred compensation plan liabilities is based on the fair value of the investments corresponding to the employees’ investment selections, primarily in mutual funds, based on quoted prices in active markets for identical assets. The deferred compensation plan liability is recorded in Accrued compensation in the Consolidated Balance Sheets. There have been no changes in the methodology used to fair value the financial instruments as well as no transfers between levels during the fiscal years ended October 28, 2018 and October 29, 2017. |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Oct. 28, 2018 | |
Receivables [Abstract] | |
Trade Accounts Receivable | Trade Accounts Receivable Trade accounts receivable includes both billed and unbilled amounts due from customers. Billed trade receivables generally do not bear interest and are recorded at the amount invoiced less amounts for which revenue has been deferred because customer arrangements are not finalized. Unbilled receivables represent accrued revenue earned and recognized on contracts for which billings have not yet been presented to the customer. At October 28, 2018 and October 29, 2017, trade accounts receivable included unbilled receivables of $7.9 million and $12.9 million , respectively. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions, customers’ financial condition, and current receivable aging and payment patterns. Additions to the allowance for doubtful accounts are recorded to Selling, administrative and other operating costs. The Company also maintains a sales allowance for specific customers related to volume discounts and billing disputes. The amount of the sales allowance is determined based on discount estimates and historical credits issued and additions to the sales allowance are recorded as a reduction to net revenue. Account balances are written off against the allowances when the Company believes it is probable the amount will not be received. For the years ended October 28, 2018 and October 29, 2017, the activity in the allowance accounts were as follows (in thousands): Balance at beginning of year Provision / (Release) Deductions Balance at end of year Year Ended October 28, 2018: Sales allowance $ 895 $ (190 ) $ — $ 705 Allowance for doubtful accounts 354 (8 ) (292 ) 54 Total $ 1,249 $ (198 ) $ (292 ) $ 759 Balance at beginning of year Provision / (Release) Deductions Balance at end of year Year Ended October 29, 2017: Sales allowance $ 213 $ 682 $ — $ 895 Allowance for doubtful accounts 588 357 (591 ) 354 Total $ 801 $ 1,039 $ (591 ) $ 1,249 |
Property, Equipment and Softwar
Property, Equipment and Software | 12 Months Ended |
Oct. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | Property, Equipment and Software Property, equipment and software consisted of (in thousands): October 28, 2018 October 29, Land and buildings $ 363 $ 406 Machinery and equipment 31,856 32,250 Leasehold improvements 4,322 4,775 Less: Accumulated depreciation and amortization (31,751 ) (32,264 ) Property and equipment 4,790 5,167 Software 94,527 94,032 Less: Accumulated amortization (74,925 ) (70,078 ) Property, equipment, and software, net $ 24,392 $ 29,121 Depreciation and amortization expense totaled $7.2 million and $8.0 million for the fiscal years ended 2018 and 2017, respectively. Depreciation and amortization is included in Cost of services and Selling, administrative and other operating costs in the Consolidated Statements of Operations. |
Impairment Charges
Impairment Charges | 12 Months Ended |
Oct. 28, 2018 | |
Restructuring and Related Activities [Abstract] | |
Impairment Charges | Impairment Charges Impairment of Property, Equipment and Software As a result of a system-wide upgrade to its operational and financial systems, the Company identified previously purchased software that will no longer be used and incurred impairment charges of $0.5 million and $0.3 million in fiscal 2018 and fiscal 2017, respectively. Impairment of Goodwill The Company performs its annual impairment test for goodwill during the second quarter of the fiscal year and when a triggering event occurs between annual impairment tests. For the fiscal 2018 test performed in the second quarter, we elected to bypass the qualitative assessment and prepared a Step 1 analysis. Our Step 1 analysis used significant assumptions including expected revenue and expense growth rates, forecasted capital expenditures, working capital levels and a discount rate of 12% . Under the market-based approach significant assumptions included relevant comparable company earnings multiples including the determination of whether a premium or discount should be applied to those comparables. During the second quarter of fiscal 2018, it was determined that no adjustment to the carrying value of goodwill of $5.7 million was required as our Step 1 analysis resulted in the fair value of the reporting unit exceeding its carrying value. During fiscal 2018 and 2017, no adjustment to the carrying value of goodwill was required. The following represents the change in the carrying amount of goodwill during each fiscal year (in thousands): International Staffing October 28, 2018 October 29, 2017 Aggregate goodwill acquired $ 10,483 $ 10,483 Accumulated impairment losses (3,733 ) (3,733 ) Foreign currency translation adjustment (1,399 ) (1,274 ) Goodwill, net of impairment losses $ 5,351 $ 5,476 Restructuring and Severance Charges The Company incurred total restructuring and severance costs of $8.2 million and $1.4 million for fiscal 2018 and 2017, respectively. 2018 Restructuring Plan On October 16, 2018, the Company approved a restructuring plan (the “2018 Plan”) based on an organizational and process redesign intended to optimize the Company’s strategic growth initiatives and overall business performance. In connection with the 2018 Plan, the Company incurred a restructuring charge of $4.3 million in the fourth quarter of fiscal 2018 comprised of $1.5 million related to severance and benefit costs and $2.8 million related to facility and lease termination costs. The lease termination costs primarily consist of the differential cost between the lease obligation for the former corporate office in New York, NY and the total sublease payments to be received pursuant to a sublease agreement entered into in the fourth quarter of fiscal 2018. The 2018 Plan is expected to be completed by the Company's fiscal year end on November 3, 2019. As of October 28, 2018, the Company anticipates payments of $2.2 million and $0.6 million will be made in fiscal 2019 and 2020, respectively. The remaining $1.3 million related to facility and lease termination costs will be paid through December 2025. Change in Executive Management Effective June 6, 2018, Mr. Dean departed from his role as President and Chief Executive Officer of the Company and is no longer a member of the Board of Directors of the Company (the “Board of Directors”). The Company and Mr. Dean subsequently executed a separation agreement, effective June 29, 2018. The Company incurred related severance costs of $2.6 million in the third quarter of fiscal 2018, which is payable over a period of 24 months . Other Restructuring Costs During fiscal 2018, there were other restructuring actions taken by the Company as part of its continued efforts to reduce costs and achieve operational efficiency. The Company recorded severance costs of $1.3 million , primarily resulting from the elimination of certain positions. Additionally, the Company incurred restructuring and severance costs of $1.4 million during fiscal 2017 under a cost reduction plan implemented in fiscal 2016 resulting primarily from a reduction in workforce, facility consolidation and lease termination costs. The following table presents the restructuring and severance costs for the twelve months ended October 28, 2018 and October 29, 2017 (in thousands): Year Ended October 28, 2018 Total North American Staffing International Staffing North American MSP Corporate & Other Severance and benefit costs $ 1,526 $ 401 $ — $ — $ 1,125 Other 2,826 428 — — 2,398 2018 Plan 4,352 829 — — 3,523 Severance and benefit costs 1,009 103 210 37 659 Other 246 — 118 108 20 Other 1,255 103 328 145 679 Change in Executive Management 2,635 — — — 2,635 Total $ 8,242 $ 932 $ 328 $ 145 $ 6,837 Year Ended October 29, 2017 Total North American Staffing International Staffing North American MSP Corporate & Other Severance and benefit costs $ 1,301 $ 294 $ 24 $ — $ 983 Other 78 88 (10 ) — — 2016 Plan $ 1,379 $ 382 $ 14 $ — $ 983 Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Consolidated Balance Sheets. Activity for the fiscal years ended October 28, 2018 and October 29, 2017 are summarized as follows (in thousands): October 28, 2018 October 29, 2017 Balance, beginning of year $ 297 $ 1,653 Charged to expense 8,242 1,379 Cash payments (2,837 ) (2,735 ) Ending Balance $ 5,702 $ 297 The remaining balance at October 28, 2018 of $5.7 million , primarily related to Corporate and Other, includes $3.5 million related to the cost reduction plan implemented in fiscal 2018 and $2.2 million of other restructuring and severance charges. |
Restructuring and Severance Cha
Restructuring and Severance Charges | 12 Months Ended |
Oct. 28, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Severance Charges | Impairment Charges Impairment of Property, Equipment and Software As a result of a system-wide upgrade to its operational and financial systems, the Company identified previously purchased software that will no longer be used and incurred impairment charges of $0.5 million and $0.3 million in fiscal 2018 and fiscal 2017, respectively. Impairment of Goodwill The Company performs its annual impairment test for goodwill during the second quarter of the fiscal year and when a triggering event occurs between annual impairment tests. For the fiscal 2018 test performed in the second quarter, we elected to bypass the qualitative assessment and prepared a Step 1 analysis. Our Step 1 analysis used significant assumptions including expected revenue and expense growth rates, forecasted capital expenditures, working capital levels and a discount rate of 12% . Under the market-based approach significant assumptions included relevant comparable company earnings multiples including the determination of whether a premium or discount should be applied to those comparables. During the second quarter of fiscal 2018, it was determined that no adjustment to the carrying value of goodwill of $5.7 million was required as our Step 1 analysis resulted in the fair value of the reporting unit exceeding its carrying value. During fiscal 2018 and 2017, no adjustment to the carrying value of goodwill was required. The following represents the change in the carrying amount of goodwill during each fiscal year (in thousands): International Staffing October 28, 2018 October 29, 2017 Aggregate goodwill acquired $ 10,483 $ 10,483 Accumulated impairment losses (3,733 ) (3,733 ) Foreign currency translation adjustment (1,399 ) (1,274 ) Goodwill, net of impairment losses $ 5,351 $ 5,476 Restructuring and Severance Charges The Company incurred total restructuring and severance costs of $8.2 million and $1.4 million for fiscal 2018 and 2017, respectively. 2018 Restructuring Plan On October 16, 2018, the Company approved a restructuring plan (the “2018 Plan”) based on an organizational and process redesign intended to optimize the Company’s strategic growth initiatives and overall business performance. In connection with the 2018 Plan, the Company incurred a restructuring charge of $4.3 million in the fourth quarter of fiscal 2018 comprised of $1.5 million related to severance and benefit costs and $2.8 million related to facility and lease termination costs. The lease termination costs primarily consist of the differential cost between the lease obligation for the former corporate office in New York, NY and the total sublease payments to be received pursuant to a sublease agreement entered into in the fourth quarter of fiscal 2018. The 2018 Plan is expected to be completed by the Company's fiscal year end on November 3, 2019. As of October 28, 2018, the Company anticipates payments of $2.2 million and $0.6 million will be made in fiscal 2019 and 2020, respectively. The remaining $1.3 million related to facility and lease termination costs will be paid through December 2025. Change in Executive Management Effective June 6, 2018, Mr. Dean departed from his role as President and Chief Executive Officer of the Company and is no longer a member of the Board of Directors of the Company (the “Board of Directors”). The Company and Mr. Dean subsequently executed a separation agreement, effective June 29, 2018. The Company incurred related severance costs of $2.6 million in the third quarter of fiscal 2018, which is payable over a period of 24 months . Other Restructuring Costs During fiscal 2018, there were other restructuring actions taken by the Company as part of its continued efforts to reduce costs and achieve operational efficiency. The Company recorded severance costs of $1.3 million , primarily resulting from the elimination of certain positions. Additionally, the Company incurred restructuring and severance costs of $1.4 million during fiscal 2017 under a cost reduction plan implemented in fiscal 2016 resulting primarily from a reduction in workforce, facility consolidation and lease termination costs. The following table presents the restructuring and severance costs for the twelve months ended October 28, 2018 and October 29, 2017 (in thousands): Year Ended October 28, 2018 Total North American Staffing International Staffing North American MSP Corporate & Other Severance and benefit costs $ 1,526 $ 401 $ — $ — $ 1,125 Other 2,826 428 — — 2,398 2018 Plan 4,352 829 — — 3,523 Severance and benefit costs 1,009 103 210 37 659 Other 246 — 118 108 20 Other 1,255 103 328 145 679 Change in Executive Management 2,635 — — — 2,635 Total $ 8,242 $ 932 $ 328 $ 145 $ 6,837 Year Ended October 29, 2017 Total North American Staffing International Staffing North American MSP Corporate & Other Severance and benefit costs $ 1,301 $ 294 $ 24 $ — $ 983 Other 78 88 (10 ) — — 2016 Plan $ 1,379 $ 382 $ 14 $ — $ 983 Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Consolidated Balance Sheets. Activity for the fiscal years ended October 28, 2018 and October 29, 2017 are summarized as follows (in thousands): October 28, 2018 October 29, 2017 Balance, beginning of year $ 297 $ 1,653 Charged to expense 8,242 1,379 Cash payments (2,837 ) (2,735 ) Ending Balance $ 5,702 $ 297 The remaining balance at October 28, 2018 of $5.7 million , primarily related to Corporate and Other, includes $3.5 million related to the cost reduction plan implemented in fiscal 2018 and $2.2 million of other restructuring and severance charges. |
Accrued Insurance
Accrued Insurance | 12 Months Ended |
Oct. 28, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Insurance | Accrued Insurance (a) Casualty Insurance Program Workers’ compensation insurance is purchased through mandated participation in certain state funds, and the experience-rated premiums in these state plans relieve the Company of any additional liability. Liability for workers’ compensation in all other states as well as automobile and general liability (collectively "casualty liability") is insured under a paid loss deductible casualty insurance program for losses exceeding specified deductible levels. The Company is financially responsible for losses below the specified policy deductible limits while losses incurred above the deductible limit are absorbed by the insurer. The casualty program is secured by a letter of credit against the Company's DZ Financing Program of $23.5 million as of October 28, 2018. The Company recognizes expense and establishes accruals for amounts estimated to be incurred up to the policy deductible, both reported and not yet reported, policy premiums and related legal and other claims administration costs. The Company develops estimates for claims, as well as claims incurred but not yet reported, using actuarial principles and assumptions based on historical and projected claim incidence patterns, claim size and the length of time over which payments are expected to be made. Actuarial estimates are updated as loss experience develops, additional claims are reported or settled and new information becomes available. Any changes in estimates are reflected in operating results in the period in which the estimates are changed. Depending on the policy year, adjustments to final expected paid amounts are determined as of a future date, between four or five years after the end of the respective policy year or through the ultimate life of the claim. Expense recognized by the Company under its casualty insurance program amounted to $10.2 million and $9.3 million in fiscal 2018 and 2017, respectively. (b) Medical Insurance Programs The Company is self-insured for a portion of its medical benefit programs for its employees. Eligible contingent staff on assignment with customers are offered medical benefits through a fully insured program administered by a third-party. Employees contribute a portion of the cost of these medical benefit programs. The liability for the self-insured medical benefits is limited on a per claimant basis through the purchase of stop-loss insurance. The Company’s retained liability for the self-insured medical benefits is determined utilizing actuarial estimates of expected claims based on statistical analysis of historical data. Amounts contributed by employees and additional amounts necessary to fund the self-insured program administered by the third party were transferred to a 501(c)(9) employee welfare benefit trust. The Company terminated the employee welfare benefit trust during October 2016. The Company records the expense associated with the expected losses, net of employee contributions, in Cost of services or Selling, administrative and other operating costs, depending on the employee’s role. Expense recognized by the Company under its self-insured medical benefit programs amounted to $4.8 million and $7.1 million in fiscal 2018 and 2017, respectively. In fiscal 2017, the expense was reduced by the release of a reserve related to the dissolution of the employee welfare benefit trust of $1.4 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) from continuing operations before income taxes is derived from (in thousands): Year Ended October 28, October 29, U.S. Domestic $ (36,077 ) $ 22,464 International 4,350 9,749 Income (loss) from continuing operations before income tax $ (31,727 ) $ 32,213 Income tax provision (benefit) by taxing jurisdiction consists of (in thousands): Year Ended October 28, October 29, 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 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, October 29, 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 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and also include operating loss carryforwards. The significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): October 28, October 29, 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 ) At October 28, 2018, the Company has available unused U.S. federal net operating loss (“NOL”) carryforwards of $187.5 million , U.S. state NOL carryforwards of $224.1 million , international NOL carryforwards of $9.1 million , capital loss carryforwards of $12.9 million and federal tax credits of $51.3 million . As of October 28, 2018, the U.S. federal NOL carryforwards will expire at various dates between 2031 and 2038 (with some indefinite), the U.S. state NOL carryforwards expire at various dates between 2020 and 2038, the international NOL carryforwards expire at various dates beginning in 2019 (with some indefinite), capital loss carryforwards expire between 2019 and 2022 and federal tax credits expire between 2020 and 2037. At October 28, 2018, the undistributed earnings of the Company’s non-U.S. subsidiaries are not intended to be permanently invested outside of the U.S. and therefore U.S. deferred taxes have been provided. A valuation allowance has been recognized due to the uncertainty of realization of the loss carryforwards and other deferred tax assets. Beginning in fiscal 2010, the Company’s cumulative U.S. domestic and certain non-U.S. results for each three -year period were a loss. Accordingly, the Company recorded a full valuation allowance against its net U.S. domestic and certain net non-U.S. deferred tax assets as a non-cash charge to income tax expense. The three -year cumulative loss continued in fiscal 2018, 2017, and 2016 so the Company maintained a full valuation allowance against its net U.S. domestic and certain net non-U.S. deferred tax assets resulting in a total valuation allowance of $118.6 million and $134.2 million for fiscal 2018 and fiscal 2017, respectively. In reaching this conclusion, the Company considered the U.S. domestic demand and recent operating losses causing the Company to be in a three -year cumulative loss position. Management believes that the remaining deferred tax assets are more likely than not to be realized based upon consideration of all positive and negative evidence, including scheduled reversal of deferred tax liabilities and tax planning strategies determined on a jurisdiction-by-jurisdiction basis. The Company recognizes income tax benefits for tax positions determined more likely than not to be sustained upon examination based on the technical merits of the positions. The following table sets forth the change in the accrual for uncertain tax positions, excluding interest and penalties (in thousands): October 28, October 29, 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 . Of the total unrecognized tax benefits at October 28, 2018 and October 29, 2017, approximately $0.5 million and $1.5 million , respectively, would affect the Company’s effective income tax rate, if and when recognized in future years. The amount accrued for related potential interest and penalties at October 28, 2018 and October 29, 2017 was $0.1 million and $0.2 million , respectively. The income tax provision for the fiscal years ended October 28, 2018 and October 29, 2017 included a reversal of reserves on uncertain tax provisions of $1.1 million and $1.3 million , respectively. The Company is subject to taxation at the federal, state and local levels in the U.S. and in various international jurisdictions. With few exceptions, the Company is generally no longer subject to examination by the U.S. federal, state, local or non-U.S. income tax authorities for years before fiscal 2008. On December 22, 2017, the U.S. President signed the Tax Cuts and Jobs Act (“Tax Act”) into law. The Tax Act includes a number of provisions, including the lowering of the U.S. corporate tax rate from 35.0% to 21.0% , and the establishment of a territorial-style system for taxing foreign-source income of domestic multinational corporations. The Tax Act reduces the U.S. statutory tax rate from 35.0% to 21.0% effective January 1, 2018. U.S. tax law required that taxpayers with a fiscal year that begins before and ends after the effective date of a rate change calculate a blended tax rate based on the pro-rata number of days in the fiscal year before and after the effective date. As a result, for the fiscal year ending October 28, 2018, the Company’s statutory income tax rate is 23.4% . Our statutory rate will be approximately 21.0% for the fiscal year ended November 3, 2019. Other provisions under the Tax Act are not effective for us until fiscal 2019, including limitations on deductibility of executive compensation and interest, as well as a new minimum tax on Global Intangible Low-Taxed Income (“GILTI”). The SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The measurement period ended on December 22, 2018. There is no significant impact. The Company did not record any change to its U.S. net deferred tax balances as of the enactment date since our U.S. net deferred tax assets are fully offset by a full valuation allowance. We have reduced our net deferred tax assets and corresponding valuation allowance by approximately $26.8 million for the fiscal year ended October 28, 2018. Under the Tax Act, the Company may be subject to a Transition Tax on the untaxed foreign earnings of its foreign subsidiaries by deeming those earnings to be repatriated. Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5% rate and the remaining earnings are taxed at an 8.0% rate. In calculating the Transition Tax, the Company must calculate the cumulative earnings and profits of each of the non-U.S. subsidiaries back to 1987. The Company has completed this computation and due to the Company’s cumulative historic foreign losses, the Company did not have an impact related to the Transition Tax. The Company also adjusted its deferred tax liability related to its unremitted earnings taking into consideration the impact of the reduced statutory rate and the Transition Tax computation. This adjustment did not have an impact on the Company’s financials as the decrease in deferred tax liability was offset by a corresponding adjustment to the Company’s valuation allowance. |
Real Estate Transactions
Real Estate Transactions | 12 Months Ended |
Oct. 28, 2018 | |
Leases [Abstract] | |
Real Estate Transactions | Real Estate Transactions Orange, CA In March 2016, Volt Orangeca Real Estate Corp., an indirect wholly-owned subsidiary of the Company, completed the sale of real property comprised of land and buildings with office space of approximately 191,000 square feet in Orange, California for a purchase price of $35.9 million . The Company concurrently entered into a Purchase and Sale Agreement (the “PSA”) and a Lease Agreement (the “Lease”) with Glassell Grand Avenue Partners, LLC (the “Buyer”), a limited liability company formed by Hines, a real estate investment and management firm, and funds managed by Oaktree Capital Management L.P., an investment management firm. The Buyer assigned the PSA and the Lease to Glassell Acquisitions Partners LLC, an affiliate of the Buyer, prior to the closing. The transaction was accounted for as a sale-leaseback transaction and as an operating lease. The initial lease term is 15 years plus renewal options for two terms of five years, each based on the greater of fair market value at the time of the renewal or the base annual rent payable during the last month of the then-current term immediately preceding the extended period. The annual base rent was $2.9 million for the first year of the initial term and subsequently increases on each adjustment date by 3.0% of the then-current annual base rent. A security deposit of $2.1 million was required for the first year of the lease term which is secured by a letter of credit under the Company’s existing financing program, which was reduced to $1.4 million in the second quarter of fiscal 2017 and further reduced to $0.7 million in the second quarter of fiscal 2018. The security deposit will subsequently be reduced if certain conditions are met. Accordingly, the gain on sale of $29.4 million will be deferred and recognized in proportion to the related gross rental charges to expense over the lease term. For fiscal 2018 and 2017, the amortization was $1.9 million and $1.9 million , respectively. |
Debt
Debt | 12 Months Ended |
Oct. 28, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s primary sources of liquidity are cash flows from operations and proceeds from our financing arrangements. Both operating cash flows and borrowing capacity under the Company’s financing arrangements are directly related to the levels of accounts receivable generated by its businesses. The Company’s operating cash flows consist primarily of collections of customer receivables offset by payments for payroll and related items for the Company’s contingent staff and in-house employees; federal, foreign, state and local taxes; and trade payables. The Company’s level of borrowing capacity under its financing arrangements increases or decreases in tandem with any change in accounts receivable based on revenue fluctuations. The Company manages its cash flow and related liquidity on a global basis. The weekly payroll payments inclusive of employment-related taxes and payments to vendors are approximately $20.0 million . The Company generally targets minimum global liquidity to be 1.5 to 2.0 times its average weekly requirements. The Company also maintains minimum effective cash balances in foreign operations and uses a multi-currency netting and overdraft facility for its European entities to further minimize overseas cash requirements. On January 25, 2018, the Company entered into a two -year $115.0 million accounts receivable securitization program (“DZ Financing Program”) with DZ Bank AG Deutsche Zentral-Genossenschafsbank (“DZ Bank”) and exited its financing relationship with PNC Bank (“PNC Financing Program”). While the borrowing capacity was reduced from $160.0 million under the PNC Financing Program, the new agreement increases available liquidity and provides greater financial flexibility with less restrictive financial covenants and fewer restrictions on use of proceeds, as well as reduces overall borrowing costs. The size of the DZ Financing Program may be increased with the approval of DZ Bank. The DZ Financing Program is fully collateralized by certain receivables of the Company that are sold to a wholly-owned, consolidated, bankruptcy-remote subsidiary. To finance the purchase of such receivables, the Company may request that DZ Bank make loans from time to time to the Company that are secured by liens on those receivables. At October 28, 2018, the Company was subject to certain financial and portfolio performance covenants under our DZ Financing Program, including a minimum tangible net worth of $40.0 million , positive net income in fiscal year 2019, maximum debt to tangible net worth ratio of 3 :1 and a minimum of $15.0 million in liquid assets, as defined. At October 28, 2018, the Company was in compliance with all debt covenants. At October 28, 2018, there was $38.3 million of borrowing availability, as defined, under the DZ Financing program. On June 8, 2018, the Company amended its DZ Financing Program to modify a provision in the calculation of eligible receivables, as defined. This amendment permits the Company to exclude the receivables of a single large, high-quality customer from its threshold limitation, resulting in additional borrowing capacity of approximately $10.0 million . On January 4, 2019, the Company amended the DZ Financing Program. Key changes to the amendment were to: (1) extend the term of the program to January 25, 2021; (2) revise an existing financial covenant to maintain Tangible Net Worth (as defined under the DZ Financing Program) of at least $30.0 million through fiscal 2019, which will revert back to $40.0 million in fiscal 2020; and (3) revise an existing covenant to maintain positive net income in any fiscal year ending after 2019; (4) increase the eligibility threshold for obligors with payment terms in excess of 60 days from 2.5% to 10.0% , which will add flexibility and borrowing capacity for the Company. All other material terms and conditions remain substantially unchanged. Loan advances may be made under the DZ Financing Program through January 25, 2021 and all loans will mature no later than July 25, 2021. Loans will accrue interest (i) with respect to loans that are funded through the issuance of commercial paper notes, at the commercial paper (“CP”) rate, and (ii) otherwise, at a rate per annum equal to adjusted LIBOR. The CP rate will be based on the rates paid by the applicable lender on notes it issues to fund related loans. Adjusted LIBOR is based on LIBOR for the applicable interest period and the rate prescribed by the Board of Governors of the Federal Reserve System for determining the reserve requirements with respect to Eurocurrency funding. If an event of default occurs, all loans shall bear interest at a rate per annum equal to the prime rate (the federal funds rate plus 3% ) plus 2.5% . The DZ Financing Program also includes a letter of credit sub-facility with a sub-limit of $35.0 million . As of October 28, 2018, the letter of credit participation was $25.4 million , inclusive of $23.5 million for the Company’s casualty insurance program, $1.1 million for the security deposit required under certain real estate lease agreements and $0.8 million for the Company's corporate credit card program. The Company used $30.0 million of funds available under the DZ Financing Program to temporarily collateralize the letters of credit, until the letters of credit were established with DZ Bank on January 31, 2018. The DZ Financing Program contains customary representations and warranties as well as affirmative and negative covenants, with such covenants being less restrictive than those under the PNC Financing Program. The agreement also contains customary default, indemnification and termination provisions. The DZ Financing Program is not an off-balance sheet arrangement, as the bankruptcy-remote subsidiary is a 100%-owned consolidated subsidiary of the Company. The Company used funds made available by the DZ Financing Program to repay all amounts outstanding under the PNC Financing Program, which terminated in accordance with its terms, and expects to use remaining availability from the DZ Financing Program from time to time for working capital and other general corporate purposes. Until the termination date, the PNC Financing Program was secured by receivables from certain staffing services businesses in the United States and Europe that were sold to a wholly-owned, consolidated, bankruptcy-remote subsidiary. The bankruptcy-remote subsidiary’s sole business consisted of the purchase of the receivables and subsequent granting of a security interest to PNC Bank under the program, and its assets were available first to satisfy obligations to PNC Bank and were not available to pay creditors of the Company’s other legal entities. Borrowing capacity under the PNC Financing Program was directly impacted by the level of accounts receivable. In addition to customary representations, warranties and affirmative and negative covenants, the PNC Financing Program was subject to termination under standard events of default including change of control, failure to pay principal or interest, breach of the liquidity or performance covenants, triggering of portfolio ratio limits, or other material adverse events, as defined. On January 11, 2018, the Company entered into Amendment No. 10 to the PNC Financing Program, which gave the Company the option to extend the termination date of the program from January 31, 2018 to March 2, 2018, and amended the financial covenant requiring the Company to meet the minimum earnings before interest and taxes levels for the fiscal quarter ended October 29, 2017. All other material terms and conditions remained substantially unchanged, including interest rates. At October 28, 2018, the Company had outstanding borrowings under the DZ Financing Program of $50.0 million , with a weighted average annual interest rate of 3.6% during fiscal 2018. At October 29, 2017, the Company had outstanding borrowings under the PNC Financing Program of $50.0 million with a weighted average annual interest rate of 3.1% during fiscal 2017, which is inclusive of certain facility fees. Long-term debt consists of the following (in thousands): October 28, October 29, Financing programs $ 50,000 $ 50,000 Less: Current portion — 50,000 Deferred financing fees 932 — Total long-term debt, net $ 49,068 $ — |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 28, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Common Stock Each outstanding share of common stock is entitled to one vote per share on all matters submitted to a vote by shareholders. Subject to the rights of any preferred stock which may from time to time be outstanding, the holders of outstanding shares of common stock are entitled to receive dividends and, upon liquidation or dissolution, are entitled to receive pro rata all assets legally available for distribution to stockholders. No dividends were declared or paid on the common stock during fiscal 2018 or 2017. The holders of common stock have no preemptive or other subscription rights and there is no redemption or sinking fund provisions with respect to such shares. There is no preferred stock outstanding. (b) Treasury Stock The Company issues shares out of treasury stock to satisfy stock-based compensation awards. Activity for the fiscal years ended October 28, 2018 and October 29, 2017 is summarized as follows (in thousands): October 28, 2018 October 29, 2017 Balance, beginning of the year $ (37,607 ) $ (40,361 ) Shares issued for stock-based compensation awards 4,007 2,754 Ending Balance $ (33,600 ) $ (37,607 ) (c) Comprehensive Income (Loss) The accumulated balances for each classification of other comprehensive income (loss) are as follows (in thousands): Foreign currency gains/(losses) Balance at October 30, 2016 $ (10,612 ) Other comprehensive income (loss) before reclassifications 3,614 Amounts reclassified from accumulated other comprehensive income (loss) 1,737 Current period other comprehensive income (loss) 5,351 Balance at October 29, 2017 (5,261 ) Other comprehensive income (loss) before reclassifications (1,809 ) Current period other comprehensive income (1,809 ) Balance at October 28, 2018 $ (7,070 ) Reclassifications from Accumulated other comprehensive loss for the twelve months ended October 28, 2018 and October 29, 2017 were (in thousands): Year Ended Affected Line Item in the Statement Where Net Loss is Presented October 28, 2018 October 29, 2017 Foreign currency translation Sale of foreign subsidiary $ — $ (1,737 ) Foreign exchange gain (loss), net Total reclassifications, net of tax $ — $ (1,737 ) |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Oct. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans On June 9, 2016, the stockholders of the Company approved the 2015 Equity Incentive Plan (the “2015 Plan”), which replaced the 2006 Plan. The 2006 Plan terminated on September 5, 2016 and all of the outstanding shares granted under the 2006 Plan remain valid. The 2015 Plan was previously adopted by the Board of Directors (the “Board”) on October 19, 2015 and subsequently amended on January 13, 2016. The 2015 Plan authorizes the Board to award equity-based compensation in the form of (1) stock options, including incentive stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units (“RSUs”), (5) performance awards, (6) other stock-based awards, and (7) performance compensation awards. Subject to adjustment as provided in the 2015 Plan, up to an aggregate of 3,000,000 shares of the Company’s common stock may be issued or transferred in connection with awards granted thereunder. For fiscal 2018, the Company granted an aggregate of 276,396 performance stock units (“PSUs”), 491,138 “RSUs” and 133,181 stock options. The grants were comprised mostly of long-term incentive awards to key employees including executive management in the third quarter of fiscal 2018. Additionally, on June 29, 2018, the Company's former chief executive officer entered into a separation agreement that included terms related to his stock-based awards. Pursuant to its terms, an aggregate of 721,731 stock options were cancelled and 159,443 RSUs and 424,710 stock options became fully vested. The options remain exercisable for 12 months following his separation from the Company on June 6, 2018. For fiscal 2017, the Company granted an aggregate of 851,488 stock options, 248,915 RSUs and 71,311 phantom units in the form of cash-settled RSUs. This was comprised of: (i) 851,488 stock options and 175,145 RSUs granted to certain employees including executive management as long-term incentive awards, (ii) 73,770 RSUs granted to independent members of the Board as part of their annual compensation that vested immediately and (iii) 71,311 phantom units granted to certain senior management level employees. Stock Options The Company granted 133,181 and 851,488 stock options in fiscal 2018 and 2017, respectively. The total fair value at the grant date of these stock options was $0.2 million in fiscal 2018 and $1.6 million in fiscal 2017. The fair value of the option grants was estimated using the Black-Scholes option-pricing model, which requires estimates of key assumptions based on both historical information and management judgment regarding market factors and trends. Determining Fair Value - Stock Options The fair value of the option grants under both plans was estimated using the Black-Scholes option-pricing model, which requires estimates of key assumptions based on both historical information and management judgment regarding market factors and trends. Expected volatility - We developed the expected volatility by using the historical volatilities of the Company for a period equal to the expected life of the option. Expected term - We derived our expected term assumption based on the simplified method due to a lack of historical exercise data, which results in an expected term based on the midpoint between the graded vesting dates and contractual term of an option. Risk-free interest rate - The rates are based on the average yield of a U.S. Treasury bond, with a term that was consistent with the expected life of the stock options. Expected dividend yield - We have not paid and do not anticipate paying cash dividends on our shares of common stock; therefore, the expected dividend yield was assumed to be zero . The weighted average assumptions used to estimate the fair value of stock options for the respective fiscal years were as follows: Fiscal Year Ended October 28, October 29, Weighted-average fair value of stock option granted $1.75 $1.83 Expected volatility 40.0% 40.0% Expected term (in years) 6.00 6.00 Risk-free interest rate 2.73% 1.89% Expected dividend yield 0.0% 0.0% The grants vest in equal annual tranches over three years , provided the employees remain employed on each of those vesting dates. Compensation expense for the stock options is recognized over the vesting period. The stock options expire 10 years from the initial grant date and have a weighted average exercise price of $4.10 and $4.46 for fiscal 2018 and 2017, respectively. The following table summarizes the transactions related to stock options: Stock Options Number of shares Weighted average exercise price Weighted average contractual life (in years) Aggregate Intrinsic Value (in thousands) Outstanding - October 30, 2016 1,921,035 $ 7.70 8.23 $ 242 Granted 851,488 $ 4.46 — $ — Exercised (300 ) $ 6.39 — $ — Forfeited (272,301 ) $ 10.24 — $ — Outstanding - October 29, 2017 2,499,922 $ 6.32 8.20 $ 6,051 Granted 133,181 $ 4.10 — $ — Forfeited (1,033,063 ) $ 7.16 — $ — Outstanding - October 28, 2018 1,600,040 $ 5.25 7.27 $ 3,126 Unvested at October 28, 2018 769,027 $ — — $ 780 Exercisable at October 28, 2018 831,013 $ 6.46 6.08 $ 2,346 Restricted Stock Awards The Company granted 491,138 and 248,915 RSUs in fiscal 2018 and 2017, respectively. The total fair value at the grant date of these RSUs was $1.6 million in fiscal 2018 and $2.7 million in fiscal 2017. For RSUs granted in the current and prior fiscal years that are classified as equity awards, the grant date fair value is measured using the closing stock price on the grant date. There are 462,683 RSUs granted in fiscal 2018 that are classified as liability-based awards. For those awards classified as a liability, the grant date fair values were determined through a Monte Carlo simulation using the following assumptions: the closing stock price on the grant date of June 14, 2018, an expected volatility of 58.3% , a risk-free interest rate of 2.67% and an expected term of three years . These liability awards are classified at fair value and re-measured periodically based on the effect that the market condition has on these awards. The liability and corresponding expense are adjusted accordingly until the awards are settled in either cash or stock at the Company’s election, with any stock settlement being subject to the Company having a sufficient number of shares available under its equity incentive plan to satisfy such awards. Any RSUs settled in cash will be capped at two times the Company’s closing stock price on the grant date, multiplied by the number of RSUs vesting. All of the grants vest in equal annual tranches over three years , provided the employees remain employed on each of those vesting dates. The stock compensation cost is recognized over the related service periods. The following table summarizes the activity related to the restricted stock awards: Restricted Stock Awards Number of shares Weighted average grant date fair value Outstanding - October 30, 2016 229,733 $ 6.31 Granted 248,915 $ 4.43 Forfeited (23,288 ) $ 6.68 Deferred 36,885 $ 4.35 Vested (153,279 ) $ 5.57 Outstanding - October 29, 2017 338,966 $ 5.20 Granted 491,138 $ 3.23 Forfeited (40,769 ) $ 4.62 Vested (206,504 ) $ 5.33 Outstanding - October 28, 2018 582,831 $ 3.53 Performance Share Units The Company granted 276,396 PSUs in fiscal 2018. The total fair value at the grant date of these PSUs in fiscal 2018 was approximately $0.9 million. These awards are classified as a liability at fair value and re-measured periodically based on the effect that the market condition has on these awards. The liability and corresponding expense are adjusted accordingly until the awards are settled. The grant date fair values were determined through a Monte Carlo simulation using the following assumptions: the closing stock price on the grant date of June 14, 2018, an expected volatility of 58.3% , a risk-free interest rate of 2.67% and an expected term of three years . Vesting of the PSUs is dependent on the achievement of target stock prices at the end of each of the one -year, two -year and three -year performance periods. The target stock price will be based on the average stock price of the last 20 trading days of the applicable measurement period. The PSUs will be eligible to vest in three equal tranches at the end of each performance period subject to meeting the target stock price goals, including a minimum threshold which must be reached for any vesting to occur and also subject to the employee’s continued employment with the Company on each of the vesting dates. The payout percentages can range from 0% to 200% . The stock compensation cost is recognized over the related service or performance periods. Upon vesting, the PSUs may be settled in either cash or stock at the Company’s election, with any stock settlement being subject to the Company having a sufficient number of shares available under its equity incentive plan to satisfy such awards. Any PSUs settled in cash will be capped at two times the Company’s closing stock price on the grant date, multiplied by the number of PSUs vesting. The following table summarizes the activity related to the performance share units: Performance Share Units Number of units Weighted average grant date fair value Outstanding - October 29, 2017 — $ — Granted 276,396 $ 3.38 Outstanding - October 28, 2018 276,396 $ 3.38 Phantom Units In fiscal 2017, the Company granted 71,311 phantom units in the form of cash-settled RSUs to certain senior management level employees. The total fair value at the grant date was approximately $0.3 million with a weighted average fair value per unit was $4.35 . The units vest in equal annual tranches over three years provided the employees remain employed on each of those vesting dates. Compensation expense is recognized over the vesting period. These awards are classified as a liability and re-measured at the end of each reporting period based on the change in fair value of one share of the Company’s common stock. The liability and corresponding expense are adjusted accordingly until the awards are settled. The following table summarizes the activity related to the phantom units: Phantom Units Number of units Outstanding - October 30, 2016 — Granted 71,311 Forfeited (29,507 ) Outstanding - October 29, 2017 41,804 Forfeited (18,307 ) Vested (9,836 ) Outstanding - October 28, 2018 13,661 Share-based compensation expense was recognized in Selling, administrative and other operating costs in the Company’s Consolidated Statements of Operations as follows (in thousands): Year Ended October 28, October 29, Selling, administrative and other operating costs $ 1,760 $ 2,755 Total $ 1,760 $ 2,755 As of October 28, 2018, total unrecognized compensation expense of $2.4 million related to PSUs, stock options, RSUs and phantom units will be recognized over the remaining weighted average vesting period of 2.6 years, of which $1.6 million , $0.6 million , and $0.2 million is expected to be recognized in fiscal 2019, 2020 and 2021, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Oct. 28, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts): Year Ended October 28, 2018 October 29, 2017 Numerator Income (loss) from continuing operations $ (32,685 ) $ 28,825 Loss from discontinued operations, net of income taxes — (1,693 ) Net income (loss) $ (32,685 ) $ 27,132 Denominator Basic weighted average number of shares 21,051 20,942 Dilutive weighted average number of shares 21,051 21,017 Per Share Data: Basic: Income (loss) from continuing operations $ (1.55 ) $ 1.38 Loss from discontinued operations, net of income taxes — (0.08 ) Net income (loss) $ (1.55 ) $ 1.30 Diluted: Income (loss) from continuing operations $ (1.55 ) $ 1.37 Loss from discontinued operations, net of income taxes — (0.08 ) Net income (loss) $ (1.55 ) $ 1.29 Options to purchase 1,600,040 and 2,499,922 shares of the Company’s common stock were outstanding at October 28, 2018 and October 29, 2017, respectively. Additionally, there were 545,948 and 338,968 unvested RSUs outstanding at October 28, 2018 and October 29, 2017, respectively, and 276,396 unvested PSUs outstanding at October 28, 2018. The fiscal 2018 diluted earnings per share did not include the effect of potentially dilutive outstanding shares comprised of 97,719 RSUs, 1,600,040 of stock options and 276,936 PSUs because the effect would have been anti-dilutive . For the year ended October 29, 2017, potentially dilutive shares comprising of 51,598 RSUs and 23,550 stock options were included in the computation of diluted earnings per share. The fiscal 2017 diluted earnings per share did not include the effect of potentially dilutive outstanding shares comprised of 222,634 RSUs and 2,332,073 of stock options because the effect would have been anti-dilutive . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Leases The future minimum rental commitments as of October 28, 2018 for all non-cancelable operating leases were as follows (in thousands): Fiscal year: Amount 2019 $ 12,180 2020 9,871 2021 7,476 2022 5,888 2023 5,364 Thereafter 32,531 Total minimum payments required (a) $ 73,310 (a) - Minimum payments have not been reduced by minimum sublease rentals of $6.2 million , or approximately $0.7 million annually, due in the future under noncancelable subleases. Many of the leases also require the Company to pay and contribute to property taxes, insurance and ordinary repairs and maintenance. The lease agreements, which expire at various dates through 2031 , may be subject in some cases to renewal options, early termination options or escalation clauses. Rent expense for all operating leases in fiscal 2018 and 2017 were $16.3 million and $18.5 million , respectively. (b) Legal Proceedings The Company is involved in various claims and legal actions arising in the ordinary course of business. The Company’s loss contingencies not discussed elsewhere consist primarily of claims and legal actions arising in the normal course of business related to contingent worker employment matters in the staffing services business. These matters are at varying stages of investigation, arbitration or adjudication. The Company has accrued for losses on individual matters that are both probable and reasonably estimable. Estimates are based on currently available information and assumptions. Significant judgment is required in both the determination of probability and the determination of whether a matter is reasonably estimable. The Company’s estimates may change and actual expenses could differ in the future as additional information becomes available. (c) Other Matters Certain qualification failures related to nondiscrimination testing for the Company’s 401(k) plans consisting of the (1) Volt Technical Services Savings Plan and the (2) Volt Information Sciences, Inc. Savings Plan occurred during plan years prior to 2016. The Company currently estimates that it will need to contribute approximately $0.9 million to the plan to correct the failures. The Company does not expect to contribute any amounts to the plan to correct the failures until the Company has obtained the approval of the Internal Revenue Service regarding the method for curing the failures and the amount of the contribution. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 28, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 7, 2018, Linda Perneau, interim President and Chief Executive Officer of the Company, was appointed President and Chief Executive Officer of the Company. Ms. Perneau was also appointed by the Board of Directors to serve as a director of the Company. On November 8, 2018, the Company issued a press release stating that its Board of Directors had ended its previously announced review of strategic alternatives. On January 4, 2019, the Company amended the DZ Financing Program. Key changes to the amendment were to: (1) extend the term of the program to January 25, 2021; (2) revise an existing financial covenant to maintain Tangible Net Worth (as defined under the DZ Financing Program) of at least $30.0 million through fiscal 2019, which will revert back to $40.0 million in 2020; (3) revise an existing covenant to maintain positive net income in any fiscal year ending after 2019; and (4) increase the eligibility threshold for obligors with payment terms in excess of 60 days from 2.5% to 10.0% , which will add flexibility and borrowing capacity for the Company. All other material terms and conditions remain substantially unchanged. |
Segment Disclosures
Segment Disclosures | 12 Months Ended |
Oct. 28, 2018 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures We report our segment data in accordance with the provisions of ASC 280, Segment Reporting , aligning with the way the Company evaluates its business performance and manages its operations. During the fourth quarter of fiscal 2018, in accordance with ASC 280, the Company determined that its North American Managed Service Program (“MSP”) meets the criteria to be presented as a reportable segment. To provide period over period comparability, the Company has recast the prior period North American MSP segment data to conform to the current presentation in the prior period. This change did not have any impact on the consolidated financial results for any period presented. Our current reportable segments are (i) North American Staffing, (ii) International Staffing and (iii) North American MSP. The non-reportable businesses are combined and disclosed with corporate services under the category Corporate and Other. The Company sold the quality assurance business from within the Technology Outsourcing Services and Solutions segment on October 27, 2017, leaving the Company's call center services as the remaining activity within that segment. The Company has renamed the operating segment Volt Customer Care Solutions and its results are now reported as part of the Corporate and Other category, as it does not meet the criteria for a reportable segment under ASC 280. To provide period over period comparability, the Company has recast the prior period Technology Outsourcing Services and Solutions segment data to conform to the current presentation within the Corporate and Other category in the prior period. This change did not have any impact on the consolidated financial results for any period presented. In addition, Corporate and Other also included our previously owned Maintech, Incorporated (“Maintech”) business in the first six months of fiscal 2017. Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, settlement and impairment charges and restructuring and severance costs. The Company allocates to the segments all operating costs except for costs not directly related to the operating activities such as corporate-wide general and administrative costs. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and are not used by management to measure segment performance. Financial data concerning the Company’s segment revenue and operating income (loss) as well as results from Corporate and Other are summarized in the following tables (in thousands): Year Ended October 28, 2018 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 1,039,170 $ 860,544 $ 117,351 $ 29,986 $ 35,228 $ (3,939 ) Cost of services 885,492 735,050 98,640 22,637 33,104 (3,939 ) Gross margin 153,678 125,494 18,711 7,349 2,124 — Selling, administrative and other operating costs 173,337 112,459 15,986 5,571 39,321 — Restructuring and severance costs 8,242 932 328 145 6,837 — Settlement and impairment charges 506 — — — 506 — Operating income (loss) (28,407 ) 12,103 2,397 1,633 (44,540 ) — Other income (expense), net (3,320 ) Income tax provision 958 Net loss $ (32,685 ) Year Ended October 29, 2017 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 1,194,436 $ 919,260 $ 119,762 $ 36,783 $ 125,089 $ (6,458 ) Cost of services 1,007,041 782,405 101,064 29,309 100,721 (6,458 ) Gross margin 187,395 136,855 18,698 7,474 24,368 — Selling, administrative and other operating costs 197,130 119,320 15,836 4,861 57,113 — Restructuring and severance costs 1,379 382 14 — 983 — Gain from divestitures (51,971 ) — — — (51,971 ) — Settlement and impairment charges 1,694 — — — 1,694 — Operating income 39,163 17,153 2,848 2,613 16,549 — Other income (expense), net (6,950 ) Income tax provision 3,388 Net income from continuing operations 28,825 Loss from discontinued operations, net of income taxes (1,693 ) Net income $ 27,132 (1) Revenues are primarily derived from Volt Customer Care Solutions. In addition, fiscal 2017 included our previously owned quality assurance business as well as our information technology infrastructure services through the date of sale of Maintech in March 2017. (2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions and our previously owned quality assurance business. Assets of the Company by reportable operating segment are summarized in the following table (in thousands): October 28, October 29, Assets: North American Staffing $ 121,510 $ 128,695 International Staffing 27,765 36,773 North American MSP 20,194 28,296 Corporate & Other 67,227 91,045 Total Assets $ 236,696 $ 284,809 Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands): Year Ended October 28, October 29, Net Revenue: Domestic $ 916,561 $ 1,036,567 International, principally Europe 122,609 157,869 Total Net Revenue $ 1,039,170 $ 1,194,436 October 28, October 29, Long-Lived Assets: Domestic $ 23,274 $ 27,777 International 1,118 1,344 Total Long-Lived Assets $ 24,392 $ 29,121 Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands): Year Ended October 28, October 29, Capital Expenditures: North American Staffing $ 340 $ 279 International Staffing 207 144 North American MSP 28 7 Corporate & Other 2,990 8,882 Total Capital Expenditures $ 3,565 $ 9,312 Depreciation and Amortization: North American Staffing $ 464 $ 543 International Staffing 359 374 North American MSP 9 7 Corporate & Other 6,377 7,101 Total Depreciation and Amortization $ 7,209 $ 8,025 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Oct. 28, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) The following tables present certain unaudited consolidated quarterly financial information for each quarter in the fiscal years ended October 28, 2018 and October 29, 2017 (in thousands, except per share amounts): Three Months Ended January 28, 2018 April 29, 2018 July 29, 2018 October 28, 2018 (unaudited) (unaudited) (unaudited) (unaudited) NET REVENUE $ 253,338 $ 263,219 $ 257,808 $ 264,805 Cost of services 217,329 225,918 221,448 220,797 GROSS MARGIN 36,009 37,301 36,360 44,008 Selling, administrative and other operating costs 46,938 42,916 42,222 41,261 Restructuring and severance costs 518 104 3,108 4,512 Impairment charges — 155 — 351 OPERATING LOSS (11,447 ) (5,874 ) (8,970 ) (2,116 ) Interest income 22 47 50 54 Interest expense (804 ) (678 ) (602 ) (681 ) Foreign exchange gain (loss), net 703 (497 ) (294 ) 491 Other income (expense), net (528 ) (55 ) (296 ) (252 ) LOSS BEFORE INCOME TAXES (12,054 ) (7,057 ) (10,112 ) (2,504 ) Income tax provision (benefit) (1,360 ) 630 1,306 382 NET LOSS $ (10,694 ) $ (7,687 ) $ (11,418 ) $ (2,886 ) PER SHARE DATA: Basic: Loss from continuing operations $ (0.51 ) $ (0.37 ) $ (0.54 ) $ (0.14 ) Weighted average number of shares 21,029 21,032 21,071 21,072 Diluted: Loss from continuing operations $ (0.51 ) $ (0.37 ) $ (0.54 ) $ (0.14 ) Weighted average number of shares 21,029 21,032 21,071 21,072 Three Months Ended January 29, 2017 April 30, 2017 July 30, 2017 October 29, 2017 (unaudited) (unaudited) (unaudited) (unaudited) NET REVENUE $ 313,024 $ 303,005 $ 289,924 $ 288,483 Cost of services 266,134 255,886 244,205 240,816 GROSS MARGIN 46,890 47,119 45,719 47,667 Selling, administrative and other operating costs 48,890 51,171 46,931 50,138 Restructuring and severance costs 624 199 249 307 Gain from divestitures — (3,938 ) — (48,033 ) Settlement and impairment charges — 290 — 1,404 OPERATING INCOME (LOSS) (2,624 ) (603 ) (1,461 ) 43,851 Interest income 31 8 1 (1 ) Interest expense (889 ) (899 ) (977 ) (1,025 ) Foreign exchange gain (loss), net 127 184 (1,730 ) (218 ) Other income (expense), net (599 ) (311 ) (277 ) (375 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (3,954 ) (1,621 ) (4,444 ) 42,232 Income tax provision (benefit) 623 (767 ) 1,074 2,458 INCOME (LOSS) FROM CONTINUING OPERATIONS (4,577 ) (854 ) (5,518 ) 39,774 Loss from discontinued operations, net of income taxes — — — (1,693 ) NET INCOME (LOSS) $ (4,577 ) $ (854 ) $ (5,518 ) $ 38,081 PER SHARE DATA: Basic: Income (loss) from continuing operations $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.90 Loss from discontinued operations — — — (0.08 ) Net income (loss) $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.82 Weighted average number of shares 20,918 20,921 20,963 20,967 Diluted: Income (loss) from continuing operations $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.90 Loss from discontinued operations — — — (0.08 ) Net income (loss) $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.82 Weighted average number of shares 20,918 20,921 20,963 20,982 |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 28, 2018 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Sunday nearest October 31st. The fiscal years 2018 and 2017 consisted of 52 weeks. |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and all subsidiaries over which the Company exercises control. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates, assumptions and judgments, including those related to revenue recognition, allowance for doubtful accounts, casualty reserves, valuation of goodwill, intangible assets and other long-lived assets, stock compensation, employee benefit plans, restructuring and severance accruals, income taxes and related valuation allowances and loss contingencies. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. |
Revenue Recognition | Revenue Recognition Revenue is generally recognized when persuasive evidence of an arrangement exists, products have been delivered or services have been rendered, the fee is fixed or determinable, and collectability is reasonably assured. For any arrangements within the scope of the multiple-deliverable guidance, a deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. Services are sometimes provided despite a customer arrangement not yet being finalized. In these cases, revenue is deferred until arrangements are finalized or in some cases until cash is received. The cumulative revenue deferred for each arrangement is recognized in the period the revenue recognition criteria are met. The following revenue recognition policies define the manner in which the Company accounts for specific transaction types: Staffing Services Revenue is primarily derived from supplying contingent staff to the Company’s customers or providing other services on a time and material basis. Contingent staff primarily consist of contingent workers working under a contract for a fixed period of time or on a specific customer project. Revenue is also derived from permanent placement services, which is generally recognized after placements are made and when the fees are not contingent upon any future event. Our technology outsourcing services, from our quality assurance business, which was sold in the fourth quarter of fiscal 2017, provided pre- and post- production development support, testing, and customer support to companies in the mobile, gaming, and technology devices industries. Reimbursable costs, including those related to travel and out-of-pocket expenses, are also included in Net revenue, and equivalent amounts of reimbursable costs are included in Cost of services. Under certain of the Company’s service arrangements, contingent staff are provided to customers through contracts involving other vendors or contractors. When the Company is the principal in the transaction and therefore the primary obligor for the contingent staff, we record the gross amount of the revenue and expense from the service arrangement. When the Company acts only as an agent for the customer and is not the primary obligor for the contingent staff, we record revenue net of vendor or contractor costs. The Company is generally the primary obligor when responsible for the fulfillment of services under the contract, even if the contingent workers are neither employees of the Company nor directly contracted by the Company. Usually, in these situations, the contractual relationship with the vendors and contractors is exclusively with the Company and the Company bears customer credit risk and generally has latitude in establishing vendor pricing and has discretion in vendor or contractor selection. The Company is generally not the primary obligor when we provide comprehensive administration of multiple vendors for customers that operate significant contingent workforces, referred to as managed service programs. The Company is considered an agent in these transactions if it does not have responsibility for the fulfillment of the services by the vendors or contractors (referred to as associate vendors). In such arrangements, the Company is typically designated by its customers to be a facilitator of consolidated associate vendor billing and a processor of the payments to be made to the associate vendors on behalf of the customer. Usually in these situations the contractual relationship is between the customers, the associate vendors and the Company, with the associate vendors being the primary obligor and assuming the customer credit risk and the Company generally earning negotiated fixed mark-ups and not having discretion in supplier selection. Information Technology Infrastructure Services Revenue from hardware maintenance, computer and network operations infrastructure services under fixed-price contracts and stand-alone post-contract support was generally recognized ratably over the contract period, provided that all other revenue recognition criteria are met, and the cost associated with these contracts were recognized as incurred. For time and material contracts, the Company recognized revenue and costs as services are rendered, provided that all other revenue recognition criteria are met. |
Expense Recognition | Expense Recognition Cost of services within staffing services consists primarily of contingent worker payroll, related employment taxes and benefits, and the cost of facilities used by contingent workers in fulfilling assignments and projects for staffing services customers, including reimbursable costs. Indirect cost of staffing services is included in Selling, administrative and other operating costs in the Consolidated Statements of Operations. The Cost of services differ from the cost included within Selling, administrative and other operating costs in that they arise specifically and directly from the actions of providing staffing services to customers. Cost of information technology infrastructure services consisted of the direct and indirect cost of providing non-staffing services, which include payroll and related employment taxes, benefits, materials, and equipment costs. Gross margin is calculated as revenue less direct costs for staffing services and revenue less direct and indirect costs for non-staffing services. Selling, Administrative and Other Operating Costs Selling, administrative and other operating costs primarily relate to the Company’s selling and administrative efforts, as well as the indirect costs associated with providing staffing services. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is the net income (loss) of the Company combined with other changes in stockholders’ equity not involving ownership interest changes. The Company recognizes foreign currency translation as comprehensive income (loss). |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Short-Term Investments and Related Deferred Compensation, Net | Short-Term Investments and Related Deferred Compensation, Net The Company has a nonqualified deferred compensation and supplemental savings plan that permits eligible employees to defer a portion of their compensation. The employee compensation deferral is invested in short-term investments corresponding to the employees’ investment selections, primarily mutual funds, which are held in a trust and are reported at current market prices. The liability associated with the nonqualified deferred compensation and supplemental savings plan consists of participant deferrals and earnings thereon, and is reflected as a current liability within Accrued compensation in an amount equal to the fair value of the underlying short-term investments held in the plan. Changes in asset values result in offsetting changes in the liability as the employees realize the rewards and bear the risks of their investment selections. |
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property and equipment are stated at cost and depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs for software that will be used for internal purposes and incurred during the application development stage are capitalized and amortized to expense over the estimated useful life of the underlying software. Training and maintenance costs are expensed as incurred. The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Buildings 25 to 32 years Machinery and Equipment 3 to 15 years Leasehold improvements Shorter of length of lease or life of the asset Software 3 to 7 years Property, equipment and software are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or it is no longer probable that software development will be completed. If circumstances require a long-lived asset or asset group be reviewed for possible impairment, the Company first compares undiscounted cash flows expected to be generated by each asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds the fair value. |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. The Company early-adopted and applies the method of assessing goodwill for possible impairment permitted by Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. The Company first assesses the qualitative factors for reporting units that carry goodwill. If the qualitative assessment results in a conclusion that it is more likely than not that the fair value of a reporting unit exceeds the carrying value, then no further testing is performed for that reporting unit. When a qualitative assessment is not used, or if the qualitative assessment is not conclusive and it is necessary to calculate fair value of a reporting unit, then the impairment analysis for goodwill is performed at the reporting unit level using a one-step approach. In conducting the goodwill impairment test, the fair value of a reporting unit is compared with its carrying amount utilizing various valuation techniques. If the fair value of the reporting unit exceeds its carrying value, then no further testing is performed. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The Company performs its annual impairment review of goodwill in its second fiscal quarter and when a triggering event occurs between annual impairment tests. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using current tax laws and rates in effect for the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized within income in the period that includes the enactment date. The Company must then assess the likelihood that its deferred tax assets will be realized. If the Company does not believe that it is more likely than not that its deferred tax assets will be realized, a valuation allowance is established. When a valuation allowance is increased or decreased, a corresponding tax expense or benefit is recorded. Accounting for income taxes involves uncertainty and judgment in how to interpret and apply tax laws and regulations within the Company’s annual tax filings. Such uncertainties may result in tax positions that may be challenged and overturned by a tax authority in the future, which would result in additional tax liability, interest charges and possible penalties. Interest and penalties are classified as a component of income tax expense. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. Changes in recognition or measurement are reflected in the period in which the change in estimate occurs. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based awards as either equity or liability awards based upon the characteristics of each instrument. The compensation cost is measured based on the grant date fair value of the award. The fair value of liability awards is re-measured periodically based on the effect that the market condition has on these awards. The share-based compensation expense for all awards are recognized over the requisite service or performance periods as a cost in Selling, administrative and other operating costs in the Company’s Consolidated Statement of Operations. The Company has elected to account for forfeitures as they occur. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate any remaining unearned stock-based compensation cost or incur incremental cost. |
Foreign Currency | Foreign Currency Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at average exchange rates during the year which approximate the rates in effect at the transaction dates. The resulting translation adjustments are directly recorded to a separate component of Accumulated other comprehensive income (loss). Gains and losses arising from intercompany foreign currency transactions that are of a long-term nature are reported in the same manner as translation adjustments. Gains and losses arising from intercompany foreign currency transactions that are not of a long-term nature and certain transactions of the Company’s subsidiaries which are denominated in currencies other than the subsidiaries’ functional currency are recognized as incurred in Foreign exchange gain (loss), net in the Consolidated Statements of Operations. |
Fair Value Measurement | Fair Value Measurement In accordance with Accounting Standards Codification ( “ASC”) 820, Fair Value Measurements ( “ASC 820”), the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities, quoted prices for identically similar assets or liabilities in markets that are not active and models for which all significant inputs are observable either directly or indirectly. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs for inactive markets. The Company uses this framework for measuring fair value and disclosures about fair value measurement. The Company uses fair value measurements in areas that include: the allocation of purchase price consideration to tangible, and identifiable intangible assets; impairment testing for goodwill and long-lived assets; share-based compensation arrangements, and financial instruments. The carrying amounts of the Company’s financial instruments, which include cash, cash equivalents, restricted cash, accounts receivable, accounts payable, and short-term borrowings under the Company’s credit facilities, approximated their fair values, due to the short-term nature of these instruments, and the fair value of the long-term debt is based on the interest rates the Company believes it could obtain for borrowings with similar terms. The Company recognizes transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. |
Legal and Other Contingencies | Legal and Other Contingencies The Company is involved in various demands, claims and actual and threatened litigation that arise in the normal course of business. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, a liability and an expense are recorded for the estimated loss. Significant judgment is required in both the determination of probability and the determination of whether an exposure is reasonably estimable. Actual expenses could differ from these estimates in subsequent periods as additional information becomes known. |
Concentrations of Credit Risk | Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions and deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and the Company mitigates its credit risk by spreading its deposits across multiple financial institutions and monitoring their respective risk profiles. |
Restructuring and Severance Charges | Restructuring and Severance Charges The Company accounts for restructuring activities in accordance with ASC 420, Exit or Disposal Cost Obligations. Under the guidance, for the cost of restructuring activities that do not constitute a discontinued operation, the liability for the current fair value of expected future costs associated with such restructuring activity is recognized in the period in which the liability is incurred. The costs of restructuring activities taken pursuant to a management approved restructuring plan are segregated. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. The diluted earnings per share computation includes the effect of potential common shares outstanding during the period. Potential common shares include the dilutive effects of shares that would be issuable upon the exercise of outstanding "in the money" stock options and unvested restricted stock units. The dilutive impact is determined by applying the treasury stock method. Performance-based share awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied by the end of the reporting period, or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive. |
Treasury Stock | Treasury Stock The Company records treasury stock at the cost to acquire it and includes treasury stock as a component of Stockholders’ Equity. In determining the cost of the treasury shares when either sold or issued, the Company uses the FIFO (first-in, first-out) method. If the proceeds from the sale of the treasury shares are greater than the cost of the shares sold, the excess proceeds are recorded as additional paid-in capital. If the proceeds from the sale of the treasury shares are less than the original cost of the shares sold, the excess cost first reduces any additional paid-in capital arising from previous sales of treasury shares for that class of stock, and any additional excess is recorded as a reduction of retained earnings. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies long-lived assets (disposal group) to be sold as held for sale in accordance with ASU 2014-08, Presentation Of Financial Statements (Topic 205) And Property, Plant, And Equipment (Topic 360): Reporting Discontinued Operations And Disclosures Of Disposals Of Components Of An Entity (“ASU 2014-08“), in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal group); an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year , except if events or circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset (disposal group) that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale. The fair value of a long-lived asset (disposal group) less any costs to sell is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the asset (disposal group), as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset (disposal group) meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented, if material, in the line items Assets held for sale and Liabilities held for sale, respectively, in the Consolidated Balance Sheets. |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. For any transaction expected to be structured as a sale of shares of an entity and not a sale of assets, the Company classifies the deferred taxes as part of Assets or Liabilities held for sale. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior year financial statements in order to conform to the current year’s presentation. Currently, the reclassifications are related to segment reporting changes. |
New Accounting Pronouncements | New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. New Accounting Standards Not Yet Adopted by the Company On August 29, 2018, the FASB issued ASU 2018-15 , Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”), which align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption of the amendments is permitted including adoption in any interim period. The amendments in ASU 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. ASU 2018-15 is effective for the Company in the first quarter of fiscal 2021. The Company is currently evaluating the impact that ASU 2018-15 has upon adoption on its consolidated financial statements. On August 28, 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which changes the fair value measurement disclosure requirements of ASC 820. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of ASU 2018-13. ASU 2018-13 is effective for the Company in the first quarter of fiscal 2021. The Company does not anticipate a significant impact upon adoption. In June 2018, the FASB issued ASU 2018-07, C ompensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the guidance in Topic 718 to include share-based payments for goods and services to non-employees and generally aligns it with the guidance for share-based payments to employees. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, which for the Company will be the first quarter of fiscal 2020. The Company does not anticipate a significant impact upon adoption. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments are effective for annual periods beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. The Company does not anticipate a significant impact upon adoption based on the historical and current trend of the Company’s modifications for share-based awards, but the impact could be affected by the types of modifications, if any, at that time. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets (“ASU 2017-05”). ASU 2017-05 clarifies the scope and application of ASC 610-20 on the sale or transfer of non-financial assets and in substance non-financial assets to non-customers, including partial sales. The amendments are effective for annual reporting periods beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. The Company does not anticipate a significant impact upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force . The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The amendments are effective for fiscal years beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. The Company does not anticipate a significant impact upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. The amendments are effective for fiscal years beginning after December 15, 2019, which for the Company will be the first quarter of fiscal 2021. Although the impact upon adoption will depend on the financial instruments held by the Company at that time, the Company does not anticipate a significant impact on its consolidated financial statements based on the instruments currently held and its historical trend of bad debt expense relating to trade accounts receivable. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The FASB issued subsequent amendments to improve and clarify the implementation guidance of Topic 842. The amendments are effective for fiscal years beginning after December 15, 2018, which for the Company will be the first quarter of fiscal 2020. The Company has preliminarily evaluated the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements on a modified retrospective basis, and currently expects that most of our operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon our adoption, which will increase the Company’s total assets and total liabilities that the Company reports relative to such amounts prior to adoption. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The FASB issued subsequent amendments to improve and clarify the implementation guidance of Topic 606. This standard is effective for annual reporting periods beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. During fiscal 2018, we made significant progress toward completing our evaluation of the potential impact that adopting the new standard will have on our consolidated financial statements. Based on our preliminary analysis, revenue from our staffing services contracts and substantially all of our other contracts with customers will continue to be recognized as the services are rendered. The Company does not anticipate that the new guidance will have a material impact on our revenue recognition policies, practices or systems. The primary impact is expected to be expanded disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. As we finalize our review of current contracts with customers, accounting policies and business practices, we will continue to evaluate the impact of this guidance on our consolidated financial statements, disclosures and internal controls. Our preliminary assessments are subject to change. We expect to implement the standard with the modified retrospective approach effective October 29, 2018. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of fiscal 2018. Upon adoption, the excess tax benefits and deficiencies are recognized as income tax expense or benefit in the Consolidated Statement of Operations in the reporting period incurred. The ASU 2016-09 transition guidance requires that this election be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, net of any valuation allowance required on the deferred tax assets. Because the Company has provided a full valuation allowance against its net deferred tax assets, this adoption had no impact to the opening balance of total stockholder’s equity. The Company has elected to present the changes for excess tax benefits in the statement of cash flows prospectively and to account for forfeitures as they occur. There was no impact to the change in presentation in the statement of cash flows related to statutory tax withholding requirements since the Company has historically classified the cash paid for tax withholding as a financing activity. All other ASUs that became effective for Volt in fiscal 2018 were not applicable to the Company at this time and therefore did not have any impact during the period. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Accounting Policies [Abstract] | |
Major classifications and expected useful lives of property, equipment and software | The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Buildings 25 to 32 years Machinery and Equipment 3 to 15 years Leasehold improvements Shorter of length of lease or life of the asset Software 3 to 7 years Property, equipment and software consisted of (in thousands): October 28, 2018 October 29, Land and buildings $ 363 $ 406 Machinery and equipment 31,856 32,250 Leasehold improvements 4,322 4,775 Less: Accumulated depreciation and amortization (31,751 ) (32,264 ) Property and equipment 4,790 5,167 Software 94,527 94,032 Less: Accumulated amortization (74,925 ) (70,078 ) Property, equipment, and software, net $ 24,392 $ 29,121 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations activity | The following table reconciles the major line items in the Company’s Consolidated Statements of Operations for discontinued operations (in thousands): Year Ended October 29, 2017 Loss from discontinued operations Net revenue $ — Cost of services — Selling, administrative and other operating costs — Other (income) expense, net — Loss from discontinued operations — Loss on disposal of discontinued operations (1,693 ) Loss from discontinued operations before income taxes (1,693 ) Income tax provision — Loss from discontinued operations that is presented in the Consolidated Statements of Operations $ (1,693 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of assets and liabilities measured at fair value | The following table presents assets and liabilities measured at fair value (in thousands): October 28, 2018 October 29, Fair Value Hierarchy Short-term investments $ 3,063 $ 3,524 Level 1 Total financial assets $ 3,063 $ 3,524 Deferred compensation plan liabilities $ 3,063 $ 3,524 Level 1 Total financial liabilities $ 3,063 $ 3,524 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Receivables [Abstract] | |
Summary of activity in allowance accounts | For the years ended October 28, 2018 and October 29, 2017, the activity in the allowance accounts were as follows (in thousands): Balance at beginning of year Provision / (Release) Deductions Balance at end of year Year Ended October 28, 2018: Sales allowance $ 895 $ (190 ) $ — $ 705 Allowance for doubtful accounts 354 (8 ) (292 ) 54 Total $ 1,249 $ (198 ) $ (292 ) $ 759 Balance at beginning of year Provision / (Release) Deductions Balance at end of year Year Ended October 29, 2017: Sales allowance $ 213 $ 682 $ — $ 895 Allowance for doubtful accounts 588 357 (591 ) 354 Total $ 801 $ 1,039 $ (591 ) $ 1,249 |
Property, Equipment and Softw_2
Property, Equipment and Software (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, equipment and software | The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Buildings 25 to 32 years Machinery and Equipment 3 to 15 years Leasehold improvements Shorter of length of lease or life of the asset Software 3 to 7 years Property, equipment and software consisted of (in thousands): October 28, 2018 October 29, Land and buildings $ 363 $ 406 Machinery and equipment 31,856 32,250 Leasehold improvements 4,322 4,775 Less: Accumulated depreciation and amortization (31,751 ) (32,264 ) Property and equipment 4,790 5,167 Software 94,527 94,032 Less: Accumulated amortization (74,925 ) (70,078 ) Property, equipment, and software, net $ 24,392 $ 29,121 |
Impairment Charges (Tables)
Impairment Charges (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of impaired intangible assets | The following represents the change in the carrying amount of goodwill during each fiscal year (in thousands): International Staffing October 28, 2018 October 29, 2017 Aggregate goodwill acquired $ 10,483 $ 10,483 Accumulated impairment losses (3,733 ) (3,733 ) Foreign currency translation adjustment (1,399 ) (1,274 ) Goodwill, net of impairment losses $ 5,351 $ 5,476 |
Restructuring and Severance C_2
Restructuring and Severance Charges (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and severance costs | The following table presents the restructuring and severance costs for the twelve months ended October 28, 2018 and October 29, 2017 (in thousands): Year Ended October 28, 2018 Total North American Staffing International Staffing North American MSP Corporate & Other Severance and benefit costs $ 1,526 $ 401 $ — $ — $ 1,125 Other 2,826 428 — — 2,398 2018 Plan 4,352 829 — — 3,523 Severance and benefit costs 1,009 103 210 37 659 Other 246 — 118 108 20 Other 1,255 103 328 145 679 Change in Executive Management 2,635 — — — 2,635 Total $ 8,242 $ 932 $ 328 $ 145 $ 6,837 Year Ended October 29, 2017 Total North American Staffing International Staffing North American MSP Corporate & Other Severance and benefit costs $ 1,301 $ 294 $ 24 $ — $ 983 Other 78 88 (10 ) — — 2016 Plan $ 1,379 $ 382 $ 14 $ — $ 983 |
Schedule of restructuring and severance costs included in accrued compensation and accrued insurance | Activity for the fiscal years ended October 28, 2018 and October 29, 2017 are summarized as follows (in thousands): October 28, 2018 October 29, 2017 Balance, beginning of year $ 297 $ 1,653 Charged to expense 8,242 1,379 Cash payments (2,837 ) (2,735 ) Ending Balance $ 5,702 $ 297 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
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, October 29, 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, October 29, 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, October 29, 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, October 29, 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, October 29, 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 . |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): October 28, October 29, Financing programs $ 50,000 $ 50,000 Less: Current portion — 50,000 Deferred financing fees 932 — Total long-term debt, net $ 49,068 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Equity [Abstract] | |
Schedule of Treasury stock value activity | Activity for the fiscal years ended October 28, 2018 and October 29, 2017 is summarized as follows (in thousands): October 28, 2018 October 29, 2017 Balance, beginning of the year $ (37,607 ) $ (40,361 ) Shares issued for stock-based compensation awards 4,007 2,754 Ending Balance $ (33,600 ) $ (37,607 ) |
Accumulated balances for each classification of other comprehensive income (loss) | The accumulated balances for each classification of other comprehensive income (loss) are as follows (in thousands): Foreign currency gains/(losses) Balance at October 30, 2016 $ (10,612 ) Other comprehensive income (loss) before reclassifications 3,614 Amounts reclassified from accumulated other comprehensive income (loss) 1,737 Current period other comprehensive income (loss) 5,351 Balance at October 29, 2017 (5,261 ) Other comprehensive income (loss) before reclassifications (1,809 ) Current period other comprehensive income (1,809 ) Balance at October 28, 2018 $ (7,070 ) |
Reclassification out of accumulated other comprehensive income | Reclassifications from Accumulated other comprehensive loss for the twelve months ended October 28, 2018 and October 29, 2017 were (in thousands): Year Ended Affected Line Item in the Statement Where Net Loss is Presented October 28, 2018 October 29, 2017 Foreign currency translation Sale of foreign subsidiary $ — $ (1,737 ) Foreign exchange gain (loss), net Total reclassifications, net of tax $ — $ (1,737 ) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of weighted average assumptions, options | The weighted average assumptions used to estimate the fair value of stock options for the respective fiscal years were as follows: Fiscal Year Ended October 28, October 29, Weighted-average fair value of stock option granted $1.75 $1.83 Expected volatility 40.0% 40.0% Expected term (in years) 6.00 6.00 Risk-free interest rate 2.73% 1.89% Expected dividend yield 0.0% 0.0% |
Schedule of transactions involving outstanding stock options | The following table summarizes the transactions related to stock options: Stock Options Number of shares Weighted average exercise price Weighted average contractual life (in years) Aggregate Intrinsic Value (in thousands) Outstanding - October 30, 2016 1,921,035 $ 7.70 8.23 $ 242 Granted 851,488 $ 4.46 — $ — Exercised (300 ) $ 6.39 — $ — Forfeited (272,301 ) $ 10.24 — $ — Outstanding - October 29, 2017 2,499,922 $ 6.32 8.20 $ 6,051 Granted 133,181 $ 4.10 — $ — Forfeited (1,033,063 ) $ 7.16 — $ — Outstanding - October 28, 2018 1,600,040 $ 5.25 7.27 $ 3,126 Unvested at October 28, 2018 769,027 $ — — $ 780 Exercisable at October 28, 2018 831,013 $ 6.46 6.08 $ 2,346 |
Schedule of transactions involving outstanding restricted stock awards, performance share units, and phantom units | The following table summarizes the activity related to the restricted stock awards: Restricted Stock Awards Number of shares Weighted average grant date fair value Outstanding - October 30, 2016 229,733 $ 6.31 Granted 248,915 $ 4.43 Forfeited (23,288 ) $ 6.68 Deferred 36,885 $ 4.35 Vested (153,279 ) $ 5.57 Outstanding - October 29, 2017 338,966 $ 5.20 Granted 491,138 $ 3.23 Forfeited (40,769 ) $ 4.62 Vested (206,504 ) $ 5.33 Outstanding - October 28, 2018 582,831 $ 3.53 The following table summarizes the activity related to the performance share units: Performance Share Units Number of units Weighted average grant date fair value Outstanding - October 29, 2017 — $ — Granted 276,396 $ 3.38 Outstanding - October 28, 2018 276,396 $ 3.38 The following table summarizes the activity related to the phantom units: Phantom Units Number of units Outstanding - October 30, 2016 — Granted 71,311 Forfeited (29,507 ) Outstanding - October 29, 2017 41,804 Forfeited (18,307 ) Vested (9,836 ) Outstanding - October 28, 2018 13,661 |
Summary of share based compensation expense recognized in selling, administrative and other operating costs in consolidated statements of operations | Share-based compensation expense was recognized in Selling, administrative and other operating costs in the Company’s Consolidated Statements of Operations as follows (in thousands): Year Ended October 28, October 29, Selling, administrative and other operating costs $ 1,760 $ 2,755 Total $ 1,760 $ 2,755 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Earnings Per Share [Abstract] | |
Summary of basic and diluted net income (loss) per share | Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts): Year Ended October 28, 2018 October 29, 2017 Numerator Income (loss) from continuing operations $ (32,685 ) $ 28,825 Loss from discontinued operations, net of income taxes — (1,693 ) Net income (loss) $ (32,685 ) $ 27,132 Denominator Basic weighted average number of shares 21,051 20,942 Dilutive weighted average number of shares 21,051 21,017 Per Share Data: Basic: Income (loss) from continuing operations $ (1.55 ) $ 1.38 Loss from discontinued operations, net of income taxes — (0.08 ) Net income (loss) $ (1.55 ) $ 1.30 Diluted: Income (loss) from continuing operations $ (1.55 ) $ 1.37 Loss from discontinued operations, net of income taxes — (0.08 ) Net income (loss) $ (1.55 ) $ 1.29 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | The future minimum rental commitments as of October 28, 2018 for all non-cancelable operating leases were as follows (in thousands): Fiscal year: Amount 2019 $ 12,180 2020 9,871 2021 7,476 2022 5,888 2023 5,364 Thereafter 32,531 Total minimum payments required (a) $ 73,310 (a) - Minimum payments have not been reduced by minimum sublease rentals of $6.2 million , or approximately $0.7 million annually, due in the future under noncancelable subleases. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Segment Reporting [Abstract] | |
Summary of sales and segment operating income (loss) by reportable operating segment | Financial data concerning the Company’s segment revenue and operating income (loss) as well as results from Corporate and Other are summarized in the following tables (in thousands): Year Ended October 28, 2018 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 1,039,170 $ 860,544 $ 117,351 $ 29,986 $ 35,228 $ (3,939 ) Cost of services 885,492 735,050 98,640 22,637 33,104 (3,939 ) Gross margin 153,678 125,494 18,711 7,349 2,124 — Selling, administrative and other operating costs 173,337 112,459 15,986 5,571 39,321 — Restructuring and severance costs 8,242 932 328 145 6,837 — Settlement and impairment charges 506 — — — 506 — Operating income (loss) (28,407 ) 12,103 2,397 1,633 (44,540 ) — Other income (expense), net (3,320 ) Income tax provision 958 Net loss $ (32,685 ) Year Ended October 29, 2017 Total North American Staffing International Staffing North American MSP Corporate and Other (1) Eliminations (2) Net revenue $ 1,194,436 $ 919,260 $ 119,762 $ 36,783 $ 125,089 $ (6,458 ) Cost of services 1,007,041 782,405 101,064 29,309 100,721 (6,458 ) Gross margin 187,395 136,855 18,698 7,474 24,368 — Selling, administrative and other operating costs 197,130 119,320 15,836 4,861 57,113 — Restructuring and severance costs 1,379 382 14 — 983 — Gain from divestitures (51,971 ) — — — (51,971 ) — Settlement and impairment charges 1,694 — — — 1,694 — Operating income 39,163 17,153 2,848 2,613 16,549 — Other income (expense), net (6,950 ) Income tax provision 3,388 Net income from continuing operations 28,825 Loss from discontinued operations, net of income taxes (1,693 ) Net income $ 27,132 (1) Revenues are primarily derived from Volt Customer Care Solutions. In addition, fiscal 2017 included our previously owned quality assurance business as well as our information technology infrastructure services through the date of sale of Maintech in March 2017. (2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions and our previously owned quality assurance business. |
Summary of assets by reportable operating segment | Assets of the Company by reportable operating segment are summarized in the following table (in thousands): October 28, October 29, Assets: North American Staffing $ 121,510 $ 128,695 International Staffing 27,765 36,773 North American MSP 20,194 28,296 Corporate & Other 67,227 91,045 Total Assets $ 236,696 $ 284,809 |
Summary of sales to external customers and long-lived assets by geographic area | Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands): Year Ended October 28, October 29, Net Revenue: Domestic $ 916,561 $ 1,036,567 International, principally Europe 122,609 157,869 Total Net Revenue $ 1,039,170 $ 1,194,436 October 28, October 29, Long-Lived Assets: Domestic $ 23,274 $ 27,777 International 1,118 1,344 Total Long-Lived Assets $ 24,392 $ 29,121 |
Summary of capital expenditures and depreciation and amortization by operating segments | Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands): Year Ended October 28, October 29, Capital Expenditures: North American Staffing $ 340 $ 279 International Staffing 207 144 North American MSP 28 7 Corporate & Other 2,990 8,882 Total Capital Expenditures $ 3,565 $ 9,312 Depreciation and Amortization: North American Staffing $ 464 $ 543 International Staffing 359 374 North American MSP 9 7 Corporate & Other 6,377 7,101 Total Depreciation and Amortization $ 7,209 $ 8,025 |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Oct. 28, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected consolidated statements of operations data | The following tables present certain unaudited consolidated quarterly financial information for each quarter in the fiscal years ended October 28, 2018 and October 29, 2017 (in thousands, except per share amounts): Three Months Ended January 28, 2018 April 29, 2018 July 29, 2018 October 28, 2018 (unaudited) (unaudited) (unaudited) (unaudited) NET REVENUE $ 253,338 $ 263,219 $ 257,808 $ 264,805 Cost of services 217,329 225,918 221,448 220,797 GROSS MARGIN 36,009 37,301 36,360 44,008 Selling, administrative and other operating costs 46,938 42,916 42,222 41,261 Restructuring and severance costs 518 104 3,108 4,512 Impairment charges — 155 — 351 OPERATING LOSS (11,447 ) (5,874 ) (8,970 ) (2,116 ) Interest income 22 47 50 54 Interest expense (804 ) (678 ) (602 ) (681 ) Foreign exchange gain (loss), net 703 (497 ) (294 ) 491 Other income (expense), net (528 ) (55 ) (296 ) (252 ) LOSS BEFORE INCOME TAXES (12,054 ) (7,057 ) (10,112 ) (2,504 ) Income tax provision (benefit) (1,360 ) 630 1,306 382 NET LOSS $ (10,694 ) $ (7,687 ) $ (11,418 ) $ (2,886 ) PER SHARE DATA: Basic: Loss from continuing operations $ (0.51 ) $ (0.37 ) $ (0.54 ) $ (0.14 ) Weighted average number of shares 21,029 21,032 21,071 21,072 Diluted: Loss from continuing operations $ (0.51 ) $ (0.37 ) $ (0.54 ) $ (0.14 ) Weighted average number of shares 21,029 21,032 21,071 21,072 Three Months Ended January 29, 2017 April 30, 2017 July 30, 2017 October 29, 2017 (unaudited) (unaudited) (unaudited) (unaudited) NET REVENUE $ 313,024 $ 303,005 $ 289,924 $ 288,483 Cost of services 266,134 255,886 244,205 240,816 GROSS MARGIN 46,890 47,119 45,719 47,667 Selling, administrative and other operating costs 48,890 51,171 46,931 50,138 Restructuring and severance costs 624 199 249 307 Gain from divestitures — (3,938 ) — (48,033 ) Settlement and impairment charges — 290 — 1,404 OPERATING INCOME (LOSS) (2,624 ) (603 ) (1,461 ) 43,851 Interest income 31 8 1 (1 ) Interest expense (889 ) (899 ) (977 ) (1,025 ) Foreign exchange gain (loss), net 127 184 (1,730 ) (218 ) Other income (expense), net (599 ) (311 ) (277 ) (375 ) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (3,954 ) (1,621 ) (4,444 ) 42,232 Income tax provision (benefit) 623 (767 ) 1,074 2,458 INCOME (LOSS) FROM CONTINUING OPERATIONS (4,577 ) (854 ) (5,518 ) 39,774 Loss from discontinued operations, net of income taxes — — — (1,693 ) NET INCOME (LOSS) $ (4,577 ) $ (854 ) $ (5,518 ) $ 38,081 PER SHARE DATA: Basic: Income (loss) from continuing operations $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.90 Loss from discontinued operations — — — (0.08 ) Net income (loss) $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.82 Weighted average number of shares 20,918 20,921 20,963 20,967 Diluted: Income (loss) from continuing operations $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.90 Loss from discontinued operations — — — (0.08 ) Net income (loss) $ (0.22 ) $ (0.04 ) $ (0.26 ) $ 1.82 Weighted average number of shares 20,918 20,921 20,963 20,982 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Major Classifications and Expected Useful Lives of Property, Equipment and Software (Details) | 12 Months Ended |
Oct. 28, 2018 | |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 25 years |
Minimum | Machinery and Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 3 years |
Minimum | Software | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 3 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 32 years |
Maximum | Machinery and Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 15 years |
Maximum | Software | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 7 years |
Sale of Quality Assurance and_2
Sale of Quality Assurance and Information Technology Infrastructure Businesses (Details) - USD ($) $ in Thousands | Oct. 26, 2017 | Mar. 31, 2017 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | Oct. 27, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Gain from divestitures | $ (48,033) | $ 0 | $ (3,938) | $ 0 | $ 0 | $ (51,971) | |||
Net proceeds from divestitures | $ 0 | 81,102 | |||||||
Quality Assurance Business | Disposed of by Sale | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Purchase price | $ 66,400 | ||||||||
Gain from divestitures | $ (48,000) | ||||||||
Income before provision for income taxes | $ 4,500 | ||||||||
Quality Assurance Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Post-closing support services agreement, period (up to) | 6 months | ||||||||
Maintech Holdings, LLC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net proceeds from divestitures | $ 18,300 | ||||||||
Working capital adjustment | $ 100 | ||||||||
Working capital adjustment determination period | 60 days | ||||||||
Proceeds, net of fees, expenses, and repayment outstanding loan | $ 13,100 | ||||||||
Gain on disposal | $ 3,900 | ||||||||
Post-closing support services agreement, period (up to) | 6 months | ||||||||
Helpdesk and network monitoring services, service agreement, period | 3 years |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 01, 2014 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | Oct. 27, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Settlement and impairment charges | $ 351 | $ 0 | $ 155 | $ 0 | $ 1,404 | $ 0 | $ 290 | $ 0 | $ 506 | $ 1,694 | ||
NewNet Communication Technologies, LLC | Computer Systems Segment | Discontinued Operations, Disposed of by Sale | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Note receivable | $ 10,000 | |||||||||||
Interest rate | 0.50% | |||||||||||
Payment term | 4 years | |||||||||||
Capital interest percentage (up to) | 20.00% | |||||||||||
Unamortized discount | $ 1,100 | |||||||||||
Gross receivable amount | $ 7,500 | |||||||||||
Working capital adjustment | $ 1,700 | 1,700 | 1,500 | |||||||||
Receivable amount, net of working capital adjustment | $ 6,000 | |||||||||||
Settlement and impairment charges | $ 1,400 | |||||||||||
NewNet Communication Technologies, LLC | Computer Systems Segment | Discontinued Operations, Disposed of by Sale | Notes Receivable | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Loan receivable fair value | $ 8,400 |
Discontinued Operations - State
Discontinued Operations - Statements of Operations (Details) - Discontinued Operations, Disposed of by Sale $ in Thousands | 12 Months Ended |
Oct. 29, 2017USD ($) | |
Loss from discontinued operations | |
Net revenue | $ 0 |
Cost of services | 0 |
Selling, administrative and other operating costs | 0 |
Other (income) expense, net | 0 |
Loss from discontinued operations | 0 |
Loss on disposal of discontinued operations | (1,693) |
Loss from discontinued operations before income taxes | (1,693) |
Income tax provision | 0 |
Loss from discontinued operations that is presented in the Consolidated Statements of Operations | $ (1,693) |
Restricted Cash and Short-Ter_2
Restricted Cash and Short-Term Investments - (Details) - USD ($) $ in Millions | Oct. 28, 2018 | Oct. 29, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted short-term investments | $ 3.1 | $ 3.5 |
Associate Vendors | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 11.3 | 15.1 |
Other Collateralized Accounts | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 0.5 | $ 1.9 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Oct. 28, 2018 | Oct. 29, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 3,063 | $ 3,524 |
Total financial assets | 3,063 | 3,524 |
Total financial liabilities | 3,063 | 3,524 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan liabilities | 3,063 | 3,524 |
Short-term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 3,063 | $ 3,524 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) - USD ($) $ in Millions | Oct. 28, 2018 | Oct. 29, 2017 |
Receivables [Abstract] | ||
Unbilled receivables included in trade accounts receivable | $ 7.9 | $ 12.9 |
Trade Accounts Receivable - Sum
Trade Accounts Receivable - Summary of Activity in Allowance Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Allowance for Losses [Roll Forward] | ||
Balance at beginning of year | $ 1,249 | $ 801 |
Provision / (Release) | (198) | 1,039 |
Deductions | (292) | (591) |
Balance at end of year | 759 | 1,249 |
Sales allowance | ||
Allowance for Losses [Roll Forward] | ||
Balance at beginning of year | 895 | 213 |
Provision / (Release) | (190) | 682 |
Deductions | 0 | 0 |
Balance at end of year | 705 | 895 |
Allowance for doubtful accounts | ||
Allowance for Losses [Roll Forward] | ||
Balance at beginning of year | 354 | 588 |
Provision / (Release) | (8) | 357 |
Deductions | (292) | (591) |
Balance at end of year | $ 54 | $ 354 |
Property, Equipment and Softw_3
Property, Equipment and Software - Summary of Property, Equipment and Software (Details) - USD ($) $ in Thousands | Oct. 28, 2018 | Oct. 29, 2017 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation and amortization | $ (31,751) | $ (32,264) |
Property and equipment | 4,790 | 5,167 |
Software | 94,527 | 94,032 |
Less: Accumulated amortization | (74,925) | (70,078) |
Property, equipment, and software, net | 24,392 | 29,121 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 363 | 406 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 31,856 | 32,250 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 4,322 | $ 4,775 |
Property, Equipment and Softw_4
Property, Equipment and Software (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 7,209 | $ 8,025 |
Impairment Charges (Details)
Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 29, 2018 | Oct. 28, 2018 | Oct. 29, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, impairment, discount rate | 12.00% | ||
Goodwill, carrying value | $ 5,700 | $ 5,351 | $ 5,476 |
Software systems | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of indefinite lived intangible assets | $ 500 | $ 300 |
Impairment Charges - Summary of
Impairment Charges - Summary of Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | Oct. 28, 2018 | Apr. 29, 2018 | Oct. 29, 2017 |
Restructuring and Related Activities [Abstract] | |||
Aggregate goodwill acquired | $ 10,483 | $ 10,483 | |
Accumulated impairment losses | (3,733) | (3,733) | |
Foreign currency translation adjustment | (1,399) | (1,274) | |
Goodwill, net of impairment losses | $ 5,351 | $ 5,700 | $ 5,476 |
Restructuring and Severance C_3
Restructuring and Severance Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 62 Months Ended | |||||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 25, 2020 | Oct. 27, 2019 | Oct. 28, 2018 | Oct. 29, 2017 | Dec. 31, 2025 | Oct. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | $ 4,512 | $ 3,108 | $ 104 | $ 518 | $ 307 | $ 249 | $ 199 | $ 624 | $ 8,242 | $ 1,379 | ||||
Anticipated payments for restructuring | 2,837 | 2,735 | ||||||||||||
Severance costs | 1,300 | |||||||||||||
Restructuring costs | 5,702 | $ 297 | 5,702 | 297 | $ 1,653 | |||||||||
Severance and Benefit Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | 1,301 | |||||||||||||
Severance and Benefit Costs | Former Chief Executive Officer | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | $ 2,600 | 2,635 | ||||||||||||
Restructuring costs, payment period | 24 months | |||||||||||||
Other Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | $ 78 | |||||||||||||
Restructuring costs | 2,200 | 2,200 | ||||||||||||
2018 Plan | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | 4,300 | 4,352 | ||||||||||||
Restructuring costs | 3,500 | 3,500 | ||||||||||||
2018 Plan | Scenario, Forecast | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Anticipated payments for restructuring | $ 600 | $ 2,200 | $ 1,300 | |||||||||||
2018 Plan | Severance and Benefit Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | 1,500 | 1,526 | ||||||||||||
2018 Plan | Facility and Lease Termination Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | $ 2,800 | |||||||||||||
2018 Plan | Other Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Charged to expense | $ 2,826 |
Restructuring and Severance C_4
Restructuring and Severance Charges - Summary of Restructuring and Severance Costs, By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 4,512 | $ 3,108 | $ 104 | $ 518 | $ 307 | $ 249 | $ 199 | $ 624 | $ 8,242 | $ 1,379 |
Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 1,301 | |||||||||
Severance and benefit costs | Former Chief Executive Officer | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 2,600 | 2,635 | ||||||||
Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 78 | |||||||||
2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 4,300 | 4,352 | ||||||||
2018 Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 1,500 | 1,526 | ||||||||
2018 Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 2,826 | |||||||||
Other Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 1,255 | |||||||||
Other Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 1,009 | |||||||||
Other Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 246 | |||||||||
Operating Segments | North American Staffing | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 932 | 382 | ||||||||
Operating Segments | North American Staffing | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 294 | |||||||||
Operating Segments | North American Staffing | Severance and benefit costs | Former Chief Executive Officer | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | North American Staffing | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 88 | |||||||||
Operating Segments | North American Staffing | 2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 829 | |||||||||
Operating Segments | North American Staffing | 2018 Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 401 | |||||||||
Operating Segments | North American Staffing | 2018 Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 428 | |||||||||
Operating Segments | North American Staffing | Other Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 103 | |||||||||
Operating Segments | North American Staffing | Other Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 103 | |||||||||
Operating Segments | North American Staffing | Other Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | International Staffing | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 328 | 14 | ||||||||
Operating Segments | International Staffing | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 24 | |||||||||
Operating Segments | International Staffing | Severance and benefit costs | Former Chief Executive Officer | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | International Staffing | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | (10) | |||||||||
Operating Segments | International Staffing | 2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | International Staffing | 2018 Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | International Staffing | 2018 Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | International Staffing | Other Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 328 | |||||||||
Operating Segments | International Staffing | Other Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 210 | |||||||||
Operating Segments | International Staffing | Other Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 118 | |||||||||
Operating Segments | North American MSP | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 145 | 0 | ||||||||
Operating Segments | North American MSP | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | North American MSP | Severance and benefit costs | Former Chief Executive Officer | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | North American MSP | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | North American MSP | 2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | North American MSP | 2018 Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | North American MSP | 2018 Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 0 | |||||||||
Operating Segments | North American MSP | Other Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 145 | |||||||||
Operating Segments | North American MSP | Other Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 37 | |||||||||
Operating Segments | North American MSP | Other Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 108 | |||||||||
Corporate & Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 6,837 | 983 | ||||||||
Corporate & Other | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 983 | |||||||||
Corporate & Other | Severance and benefit costs | Former Chief Executive Officer | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 2,635 | |||||||||
Corporate & Other | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 0 | |||||||||
Corporate & Other | 2018 Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 3,523 | |||||||||
Corporate & Other | 2018 Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 1,125 | |||||||||
Corporate & Other | 2018 Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 2,398 | |||||||||
Corporate & Other | Other Plan | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 679 | |||||||||
Corporate & Other | Other Plan | Severance and benefit costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | 659 | |||||||||
Corporate & Other | Other Plan | Other | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and severance costs | $ 20 |
Restructuring and Severance C_5
Restructuring and Severance Charges - Summary of Accrued Restructuring and Severance Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Restructuring Reserve [Roll Forward] | ||||||||||
Balance, beginning of year | $ 297 | $ 1,653 | $ 297 | $ 1,653 | ||||||
Charged to expense | $ 4,512 | $ 3,108 | $ 104 | $ 518 | $ 307 | $ 249 | $ 199 | $ 624 | 8,242 | 1,379 |
Cash payments | (2,837) | (2,735) | ||||||||
Ending Balance | $ 5,702 | $ 297 | $ 5,702 | $ 297 |
Accrued Insurance (Details)
Accrued Insurance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Casualty Insurance Program | ||
Effects of Reinsurance [Line Items] | ||
Recognized insurance expense | $ 10.2 | $ 9.3 |
Medical Insurance Programs | ||
Effects of Reinsurance [Line Items] | ||
Recognized insurance expense | 4.8 | $ 7.1 |
Decrease in self insurance reserve | $ 1.4 | |
Minimum | Casualty Insurance Program | ||
Effects of Reinsurance [Line Items] | ||
Adjustments to final paid premium determined | 4 years | |
Maximum | Casualty Insurance Program | ||
Effects of Reinsurance [Line Items] | ||
Adjustments to final paid premium determined | 5 years | |
Short Term Financing Program | ||
Effects of Reinsurance [Line Items] | ||
Borrowing base | $ 23.5 |
Income Taxes - Schedule of Inc
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||||||||
U.S. Domestic | $ (36,077) | $ 22,464 | ||||||||
International | 4,350 | 9,749 | ||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ (2,504) | $ (10,112) | $ (7,057) | $ (12,054) | $ 42,232 | $ (4,444) | $ (1,621) | $ (3,954) | $ (31,727) | $ 32,213 |
Income Taxes - Schedule of Com
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 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 | 0 | 1 | ||||||||
U.S. State and local | (2) | 721 | ||||||||
International | 26 | (3) | ||||||||
Total deferred | 24 | 719 | ||||||||
Income tax provision | $ 382 | $ 1,306 | $ 630 | $ (1,360) | $ 2,458 | $ 1,074 | $ (767) | $ 623 | $ 958 | $ 3,388 |
Income Taxes - Schedule of I_2
Income Taxes - Schedule of Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||||||||
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 | 0 | ||||||||
Change in valuation allowance for dispositions | 0 | (2,211) | ||||||||
Change in valuation allowance for deferred tax assets | (15,169) | (10,600) | ||||||||
Income tax provision | $ 382 | $ 1,306 | $ 630 | $ (1,360) | $ 2,458 | $ 1,074 | $ (767) | $ 623 | $ 958 | $ 3,388 |
Income Taxes - Components of D
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2018 | Oct. 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) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 27, 2019 | Oct. 28, 2018 | Oct. 29, 2017 | |
Valuation Allowance [Line Items] | |||
Capital loss carryforwards | $ 12,900 | ||
Operating loss period | 3 years | ||
Net deferred tax assets, valuation allowance | $ 118,559 | $ 134,195 | |
Unrecognized tax benefits that would affect effective tax rate | 500 | 1,500 | |
Accrued interest and penalties | 100 | 200 | |
Reversal of reserves on uncertain tax provisions | $ 1,100 | $ 1,300 | |
Federal statutory income tax rate | 23.40% | ||
Tax Cuts and Jobs Act of 2017, decrease of deferred tax assets | $ 26,800 | ||
Scenario, Forecast | |||
Valuation Allowance [Line Items] | |||
Federal statutory income tax rate | 21.00% | ||
U.S. Federal | |||
Valuation Allowance [Line Items] | |||
Net operating loss carryforwards | 187,500 | ||
Tax credits | 51,300 | ||
U.S. State | |||
Valuation Allowance [Line Items] | |||
Net operating loss carryforwards | 224,100 | ||
International | |||
Valuation Allowance [Line Items] | |||
Net operating loss carryforwards | $ 9,100 | ||
Domestic and certain Non-Domestic | |||
Valuation Allowance [Line Items] | |||
Operating loss period | 3 years |
Income Taxes - Schedule of Unc
Income Taxes - Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | Oct. 27, 2017 | Oct. 28, 2018 | Oct. 29, 2017 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 1,495 | $ 5,237 | |
Reduction related to current year tax provision | (10) | ||
Add related to current year tax provision | 269 | ||
Reduction for tax provision of prior years | 0 | (2,973) | |
Settlements | 0 | (993) | |
Lapse of statute of limitations | (994) | (45) | |
Balance, ending of year | 491 | 1,495 | |
Accrued insurance and other | 13,478 | $ 10,828 | |
Quality Assurance Business | Disposed of by Sale | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Reduction for tax provision of prior years | $ (3,700) | ||
Accrued insurance and other | $ 1,600 |
Real Estate Transactions (Detai
Real Estate Transactions (Details) - Volt Orangeca Real Estate Corp ft² in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)ft²renewal_option | Apr. 29, 2018USD ($) | Apr. 30, 2017USD ($) | Oct. 28, 2018USD ($) | Oct. 29, 2017USD ($) | |
Sale Leaseback Transaction [Line Items] | |||||
Sale of real estate, purchase price | $ 35.9 | ||||
Term of lease agreement | 15 years | ||||
Number of renewal options | renewal_option | 2 | ||||
Operating leases, renewal term | 5 years | ||||
Annual rental payments | $ 2.9 | ||||
Percentage increase in annual base rent | 3.00% | ||||
Security deposit | $ 2.1 | $ 0.7 | $ 1.4 | ||
Gain on sale of property, deferred | $ 29.4 | ||||
Current period gain recognized | $ 1.9 | $ 1.9 | |||
Office Building | |||||
Sale Leaseback Transaction [Line Items] | |||||
Area of real estate property | ft² | 191 |
Debt (Details)
Debt (Details) | Jan. 04, 2019USD ($) | Jan. 03, 2019 | Oct. 28, 2018USD ($) | Jan. 25, 2018USD ($) | Oct. 28, 2018USD ($) | Oct. 29, 2017USD ($) | Jun. 08, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 24, 2018USD ($) |
Extinguishment of Debt [Line Items] | |||||||||
Approximate weekly employee compensation, payroll taxes and payments to vendors | $ 20,000,000 | ||||||||
DZ Financing Program | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Accounts receivable securitization program, term | 2 years | ||||||||
Accounts receivable securitization program, maximum investment limit | $ 115,000,000 | ||||||||
Outstanding borrowings | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||
Weighted average annual interest rate during period | 3.60% | 3.10% | |||||||
DZ Financing Program, 2018 Amendment | Subsequent Event | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Covenant, minimum tangible net worth, through fiscal 2019 | $ 30,000,000 | ||||||||
Covenant, minimum tangible net worth, fiscal 2020 | $ 40,000,000 | ||||||||
Maximum permitted delinquent receivables, payment terms (excess of) | 60 days | ||||||||
Maximum permitted delinquent receivables, percent | 10.00% | 2.50% | |||||||
Line of Credit | Minimum | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Target liquidity ratio | 1.5 | ||||||||
Line of Credit | Maximum | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Target liquidity ratio | 2 | ||||||||
Letter of Credit | DZ Financing Program | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Current borrowing capacity | $ 35,000,000 | ||||||||
Covenant, minimum tangible net worth | $ 40,000,000 | ||||||||
Covenant, maximum debt to tangible net worth ratio | 3 | ||||||||
Covenant, minimum liquid assets | $ 15,000,000 | $ 15,000,000 | |||||||
Available borrowing capacity of facility | 38,300,000 | 38,300,000 | |||||||
Additional borrowing capacity of facility | $ 10,000,000 | ||||||||
Credit facility debt outstanding | 25,400,000 | 25,400,000 | |||||||
Collateral | $ 30,000,000 | ||||||||
Letter of Credit | DZ Financing Program | Short Term Financing Program | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Credit facility debt outstanding | 23,500,000 | 23,500,000 | |||||||
Letter of Credit | DZ Financing Program | Federal Funds Rate | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 3.00% | ||||||||
Letter of Credit | DZ Financing Program | Prime Rate | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
Letter of Credit | PNC Financing Program | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Current borrowing capacity | $ 160,000,000 | ||||||||
Letter of Credit, Security Deposit | DZ Financing Program | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Credit facility debt outstanding | 1,100,000 | 1,100,000 | |||||||
Letter of Credit, Corporate Credit Card Program | DZ Financing Program | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Credit facility debt outstanding | $ 800,000 | $ 800,000 |
Debt - Schedule of Long-Term D
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Oct. 28, 2018 | Oct. 29, 2017 |
Less: | ||
Current portion | $ 0 | $ 50,000 |
Deferred financing fees | 932 | 0 |
Total long-term debt, net | 49,068 | 0 |
Short Term Financing Program | ||
Debt Instrument [Line Items] | ||
Financing programs | $ 50,000 | $ 50,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended | |
Oct. 28, 2018vote$ / sharesshares | Oct. 29, 2017$ / sharesshares | |
Equity [Abstract] | ||
Number of votes per share | vote | 1 | |
Common stock, dividends declared (USD per share) | $ / shares | $ 0 | $ 0 |
Common stock, dividends paid (USD per share) | $ / shares | $ 0 | $ 0 |
Common stock, redemption shares (shares) | shares | 0 | 0 |
Preferred stock, shares outstanding (shares) | shares | 0 | 0 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock Value Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Schedule Of Treasury Stock Value Activity [Roll Forward] | ||
BALANCE | $ 83,994 | $ 48,965 |
Shares issued for stock-based compensation awards | (271) | (49) |
BALANCE | 50,499 | 83,994 |
Treasury Stock | ||
Schedule Of Treasury Stock Value Activity [Roll Forward] | ||
BALANCE | (37,607) | (40,361) |
Shares issued for stock-based compensation awards | 4,007 | 2,754 |
BALANCE | $ (33,600) | $ (37,607) |
Stockholders' Equity - Accumul
Stockholders' Equity - Accumulated Balances for Each Classification of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
BALANCE | $ 83,994 | $ 48,965 |
Total other comprehensive income (loss) | (1,809) | 5,351 |
BALANCE | 50,499 | 83,994 |
Foreign currency gains/(losses) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
BALANCE | (5,261) | (10,612) |
Other comprehensive income (loss) before reclassifications | (1,809) | 3,614 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,737 | |
Total other comprehensive income (loss) | (1,809) | 5,351 |
BALANCE | $ (7,070) | $ (5,261) |
Stockholders' Equity - Reclass
Stockholders' Equity - Reclassifications from Accumulated Other Comprehensive Loss (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Foreign exchange gain (loss), net | $ 0 | $ (1,737) |
Total reclassifications, net of tax | $ 0 | $ (1,737) |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - 2015 Equity Incentive Plan $ / shares in Units, $ in Millions | Jun. 29, 2018shares | Oct. 28, 2018USD ($)day$ / sharesshares | Oct. 29, 2017USD ($)$ / sharesshares | Jun. 09, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares issued (up to) (shares) | 3,000,000 | |||
Number of option shares, granted (shares) | 133,181 | 851,488 | ||
Number of shares cancelled (shares) | 1,033,063 | 272,301 | ||
Options granted in period, fair value | $ | $ 0.2 | $ 1.6 | ||
Weighted average exercise price, granted (USD per share) | $ / shares | $ 4.10 | $ 4.46 | ||
Total unrecognized compensation cost | $ | $ 2.4 | |||
Weighted average period | 2 years 7 months 6 days | |||
Compensation cost not yet recognized, expected in 2019 | $ | $ 1.6 | |||
Compensation cost not yet recognized, expected in 2020 | $ | 0.6 | |||
Compensation cost not yet recognized, expected in 2021 | $ | $ 0.2 | |||
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-option shares, granted (shares) | 276,396 | |||
Award vesting period | 3 years | |||
Fair value of grants in period | $ | $ 0.9 | |||
Expected volatility | 58.30% | |||
Risk-free interest rate | 2.67% | |||
Expected term (in years) | 3 years | |||
Equity instruments other than options, settled in cash, maximum multiplier for closing stock price on grant date | 2 | |||
Equity instruments other than options, average stock price prior to end of vesting period, number of trading days | day | 20 | |||
Weighted average grant date fair value (USD per share) | $ / shares | $ 3.38 | |||
Performance Share Units | Vesting Period One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Performance Share Units | Vesting Period Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Performance Share Units | Vesting Period Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Performance Share Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments other than options, payout percentage | 0.00% | |||
Performance Share Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments other than options, payout percentage | 200.00% | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-option shares, granted (shares) | 491,138 | 248,915 | ||
Number of non-options shares, vested (shares) | 206,504 | 153,279 | ||
Award vesting period | 3 years | |||
Fair value of grants in period | $ | $ 1.6 | $ 2.7 | ||
Weighted average grant date fair value (USD per share) | $ / shares | $ 3.23 | $ 4.43 | ||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of option shares, granted (shares) | 851,488 | |||
Expected dividend yield | 0.00% | 0.00% | ||
Award vesting period | 3 years | |||
Expiration period | 10 years | |||
Expected volatility | 40.00% | 40.00% | ||
Risk-free interest rate | 2.73% | 1.89% | ||
Expected term (in years) | 6 years | 6 years | ||
Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-option shares, granted (shares) | 71,311 | |||
Number of non-options shares, vested (shares) | 9,836 | |||
Award vesting period | 3 years | |||
Fair value of grants in period | $ | $ 0.3 | |||
Weighted average grant date fair value (USD per share) | $ / shares | $ 4.35 | |||
Restricted Stock Units, Liability-Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-option shares, granted (shares) | 462,683 | |||
Expected volatility | 58.30% | |||
Risk-free interest rate | 2.67% | |||
Expected term (in years) | 3 years | |||
Equity instruments other than options, settled in cash, maximum multiplier for closing stock price on grant date | 2 | |||
Former Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares cancelled (shares) | 721,731 | |||
Number of option shares, vested (shares) | 424,710 | |||
Remaining exercisable term | 12 months | |||
Former Chief Executive Officer | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-options shares, vested (shares) | 159,443 | |||
Certain Employees | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-option shares, granted (shares) | 175,145 | |||
Certain Employees | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of option shares, granted (shares) | 851,488 | |||
Director | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-option shares, granted (shares) | 73,770 | |||
Management | Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-option shares, granted (shares) | 71,311 |
Stock Compensation Plans - Sche
Stock Compensation Plans - Schedule of Weighted-Average Assumptions, Options (Details) - 2015 Equity Incentive Plan - Employee Stock Option - $ / shares | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value of stock option granted (USD per share) | $ 1.75 | $ 1.83 |
Expected volatility | 40.00% | 40.00% |
Expected term (in years) | 6 years | 6 years |
Risk-free interest rate | 2.73% | 1.89% |
Expected dividend yield | 0.00% | 0.00% |
Stock Compensation Plans - Sc_2
Stock Compensation Plans - Schedule of Transactions Involving Outstanding Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Oct. 28, 2018 | Oct. 29, 2017 | Oct. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares, Outstanding Beginning balance (shares) | 2,499,922 | ||
Number of shares, Outstanding Ending balance (shares) | 1,600,040 | 2,499,922 | |
2015 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares, Outstanding Beginning balance (shares) | 2,499,922 | 1,921,035 | |
Number of shares, Granted (shares) | 133,181 | 851,488 | |
Number of shares, Exercised (shares) | (300) | ||
Number of shares, Forfeited (shares) | (1,033,063) | (272,301) | |
Number of shares, Outstanding Ending balance (shares) | 1,600,040 | 2,499,922 | 1,921,035 |
Number of shares, Unvested (shares) | 769,027 | ||
Number of shares, Exercisable (shares) | 831,013 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | |||
Weighted average exercise price, Outstanding balance (USD per share) | $ 6.32 | $ 7.70 | |
Weighted average exercise price, Granted (USD per share) | 4.10 | 4.46 | |
Weighted average exercise price, Exercised (USD per share) | 6.39 | ||
Weighted average exercise price, Forfeited (USD per share) | 7.16 | 10.24 | |
Weighted average exercise price, Outstanding balance (USD per share) | 5.25 | $ 6.32 | $ 7.70 |
Weighted average exercise price, Exercisable (USD per share) | $ 6.46 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average contractual life, Outstanding | 7 years 3 months 7 days | 8 years 2 months 12 days | 8 years 2 months 23 days |
Weighted average contractual life, Exercisable | 6 years 29 days | ||
Aggregate Intrinsic Value, Outstanding | $ 3,126 | $ 6,051 | $ 242 |
Aggregate Intrinsic Value, Unvested | 780 | ||
Aggregate Intrinsic Value, Exercisable | $ 2,346 |
Stock Compensation Plans - Sc_3
Stock Compensation Plans - Schedule of Transactions Involving Outstanding Non-Options Awards (Details) - $ / shares | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, Outstanding Beginning balance (shares) | 338,968 | |
Number of shares, Outstanding Ending balance (shares) | 545,948 | 338,968 |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, Outstanding Ending balance (shares) | 276,396 | |
2015 Equity Incentive Plan | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, Outstanding Beginning balance (shares) | 338,966 | 229,733 |
Number of shares, Granted (shares) | 491,138 | 248,915 |
Number of shares, Forfeited (shares) | (40,769) | (23,288) |
Number of shares, Deferred (shares) | 36,885 | |
Number of shares, Vested (shares) | (206,504) | (153,279) |
Number of shares, Outstanding Ending balance (shares) | 582,831 | 338,966 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, Outstanding (USD per share) | $ 5.20 | $ 6.31 |
Weighted average grant date fair value, Granted (USD per share) | 3.23 | 4.43 |
Weighted average grant date fair value, Forfeited (USD per share) | 4.62 | 6.68 |
Weighted average grant date fair value, Deferred (USD per share) | 4.35 | |
Weighted average grant date fair value, Vested (USD per share) | 5.33 | 5.57 |
Weighted average grant date fair value, Outstanding (USD per share) | $ 3.53 | $ 5.20 |
2015 Equity Incentive Plan | Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, Outstanding Beginning balance (shares) | 0 | |
Number of shares, Granted (shares) | 276,396 | |
Number of shares, Outstanding Ending balance (shares) | 276,396 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, Outstanding (USD per share) | $ 0 | |
Weighted average grant date fair value, Granted (USD per share) | 3.38 | |
Weighted average grant date fair value, Outstanding (USD per share) | $ 3.38 | $ 0 |
2015 Equity Incentive Plan | Phantom Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, Outstanding Beginning balance (shares) | 41,804 | 0 |
Number of shares, Granted (shares) | 71,311 | |
Number of shares, Forfeited (shares) | (18,307) | (29,507) |
Number of shares, Vested (shares) | (9,836) | |
Number of shares, Outstanding Ending balance (shares) | 13,661 | 41,804 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, Granted (USD per share) | $ 4.35 |
Stock Compensation Plans - Sum
Stock Compensation Plans - Summary of Share Based Compensation Expense Recognized in Selling, Administrative and Other Operating Costs in Consolidated Statements of Operations (Details) - 2015 Equity Incentive Plan - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Selling, administrative and other operating costs | $ 1,760 | $ 2,755 |
Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Selling, administrative and other operating costs | $ 1,760 | $ 2,755 |
Earnings (Loss) Per Share - Su
Earnings (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Numerator | ||||||||||
Income (loss) from continuing operations | $ (2,886) | $ (11,418) | $ (7,687) | $ (10,694) | $ 39,774 | $ (5,518) | $ (854) | $ (4,577) | $ (32,685) | $ 28,825 |
Loss from discontinued operations, net of income taxes | (1,693) | 0 | 0 | 0 | 0 | (1,693) | ||||
NET INCOME (LOSS) | $ 38,081 | $ (5,518) | $ (854) | $ (4,577) | $ (32,685) | $ 27,132 | ||||
Denominator | ||||||||||
Basic weighted average number of shares (shares) | 21,072 | 21,071 | 21,032 | 21,029 | 20,967 | 20,963 | 20,921 | 20,918 | 21,051 | 20,942 |
Dilutive weighted average number of shares (shares) | 21,072 | 21,071 | 21,032 | 21,029 | 20,982 | 20,963 | 20,921 | 20,918 | 21,051 | 21,017 |
Per Share Data, Basic: | ||||||||||
Income (loss) from continuing operations (USD per share) | $ (0.14) | $ (0.54) | $ (0.37) | $ (0.51) | $ 1.90 | $ (0.26) | $ (0.04) | $ (0.22) | $ (1.55) | $ 1.38 |
Loss from discontinued operations, net of income taxes (USD per share) | (0.08) | 0 | 0 | 0 | 0 | (0.08) | ||||
Net Income (loss) (USD per share) | 1.82 | (0.26) | (0.04) | (0.22) | (1.55) | 1.30 | ||||
Per Share Data, Diluted: | ||||||||||
Income (loss) from continuing operations, diluted (USD per share) | $ (0.14) | $ (0.54) | $ (0.37) | $ (0.51) | 1.90 | (0.26) | (0.04) | (0.22) | (1.55) | 1.37 |
Loss from discontinued operations, net of income taxes (USD per share) | (0.08) | 0 | 0 | 0 | 0 | (0.08) | ||||
Net Income (loss) (USD per share) | $ 1.82 | $ (0.26) | $ (0.04) | $ (0.22) | $ (1.55) | $ 1.29 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase common stock outstanding (shares) | 1,600,040 | 2,499,922 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of shares outstanding (shares) | 545,948 | 338,968 |
Antidilutive securities excluded from computation of earnings per share (shares) | 97,719 | 222,634 |
Potentially dilutive securities included in computation of earnings per share (shares) | 51,598 | |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of shares outstanding (shares) | 276,396 | |
Antidilutive securities excluded from computation of earnings per share (shares) | 276,936 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (shares) | 1,600,040 | 2,332,073 |
Potentially dilutive securities included in computation of earnings per share (shares) | 23,550 |
Commitments and Contingencies
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Oct. 28, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 12,180 |
2,020 | 9,871 |
2,021 | 7,476 |
2,022 | 5,888 |
2,023 | 5,364 |
Thereafter | 32,531 |
Total minimum payments required | 73,310 |
Minimum sublease rentals | 6,200 |
Minimum sublease rentals, annual payment | $ 700 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Loss Contingencies [Line Items] | ||
Operating lease agreement expire period | 2,031 | |
Operating lease, rent expense | $ 16.3 | $ 18.5 |
Unfavorable Regulatory Action | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 0.9 |
Subsequent Events (Details)
Subsequent Events (Details) - DZ Financing Program, 2018 Amendment - Subsequent Event - USD ($) | Jan. 04, 2019 | Jan. 03, 2019 |
Subsequent Event [Line Items] | ||
Covenant, minimum tangible net worth, through fiscal 2019 | $ 30,000,000 | |
Covenant, minimum tangible net worth, fiscal 2020 | $ 40,000,000 | |
Maximum permitted delinquent receivables, payment terms (excess of) | 60 days | |
Maximum permitted delinquent receivables, percent | 10.00% | 2.50% |
Segment Disclosures - Summary
Segment Disclosures - Summary of Sales and Segment Operating Income (Loss) by Reportable Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||
Net revenue | $ 264,805 | $ 257,808 | $ 263,219 | $ 253,338 | $ 288,483 | $ 289,924 | $ 303,005 | $ 313,024 | $ 1,039,170 | $ 1,194,436 |
Cost of services | 220,797 | 221,448 | 225,918 | 217,329 | 240,816 | 244,205 | 255,886 | 266,134 | 885,492 | 1,007,041 |
GROSS MARGIN | 44,008 | 36,360 | 37,301 | 36,009 | 47,667 | 45,719 | 47,119 | 46,890 | 153,678 | 187,395 |
Selling, administrative and other operating costs | 41,261 | 42,222 | 42,916 | 46,938 | 50,138 | 46,931 | 51,171 | 48,890 | 173,337 | 197,130 |
Restructuring and severance costs | 4,512 | 3,108 | 104 | 518 | 307 | 249 | 199 | 624 | 8,242 | 1,379 |
Gain from divestitures | (48,033) | 0 | (3,938) | 0 | 0 | (51,971) | ||||
Settlement and impairment charges | 351 | 0 | 155 | 0 | 1,404 | 0 | 290 | 0 | 506 | 1,694 |
OPERATING INCOME (LOSS) | (2,116) | (8,970) | (5,874) | (11,447) | 43,851 | (1,461) | (603) | (2,624) | (28,407) | 39,163 |
Other income (expense), net | (3,320) | (6,950) | ||||||||
Income tax provision | 382 | 1,306 | 630 | (1,360) | 2,458 | 1,074 | (767) | 623 | 958 | 3,388 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | $ (2,886) | $ (11,418) | $ (7,687) | $ (10,694) | 39,774 | (5,518) | (854) | (4,577) | (32,685) | 28,825 |
Loss from discontinued operations, net of income taxes | (1,693) | 0 | 0 | 0 | 0 | (1,693) | ||||
NET INCOME (LOSS) | $ 38,081 | $ (5,518) | $ (854) | $ (4,577) | (32,685) | 27,132 | ||||
Operating Segments | North American Staffing | ||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||
Net revenue | 860,544 | 919,260 | ||||||||
Cost of services | 735,050 | 782,405 | ||||||||
GROSS MARGIN | 125,494 | 136,855 | ||||||||
Selling, administrative and other operating costs | 112,459 | 119,320 | ||||||||
Restructuring and severance costs | 932 | 382 | ||||||||
Gain from divestitures | 0 | |||||||||
Settlement and impairment charges | 0 | 0 | ||||||||
OPERATING INCOME (LOSS) | 12,103 | 17,153 | ||||||||
Operating Segments | International Staffing | ||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||
Net revenue | 117,351 | 119,762 | ||||||||
Cost of services | 98,640 | 101,064 | ||||||||
GROSS MARGIN | 18,711 | 18,698 | ||||||||
Selling, administrative and other operating costs | 15,986 | 15,836 | ||||||||
Restructuring and severance costs | 328 | 14 | ||||||||
Gain from divestitures | 0 | |||||||||
Settlement and impairment charges | 0 | 0 | ||||||||
OPERATING INCOME (LOSS) | 2,397 | 2,848 | ||||||||
Operating Segments | North American MSP | ||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||
Net revenue | 29,986 | 36,783 | ||||||||
Cost of services | 22,637 | 29,309 | ||||||||
GROSS MARGIN | 7,349 | 7,474 | ||||||||
Selling, administrative and other operating costs | 5,571 | 4,861 | ||||||||
Restructuring and severance costs | 145 | 0 | ||||||||
Gain from divestitures | 0 | |||||||||
Settlement and impairment charges | 0 | 0 | ||||||||
OPERATING INCOME (LOSS) | 1,633 | 2,613 | ||||||||
Corporate & Other | ||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||
Net revenue | 35,228 | 125,089 | ||||||||
Cost of services | 33,104 | 100,721 | ||||||||
GROSS MARGIN | 2,124 | 24,368 | ||||||||
Selling, administrative and other operating costs | 39,321 | 57,113 | ||||||||
Restructuring and severance costs | 6,837 | 983 | ||||||||
Gain from divestitures | (51,971) | |||||||||
Settlement and impairment charges | 506 | 1,694 | ||||||||
OPERATING INCOME (LOSS) | (44,540) | 16,549 | ||||||||
Eliminations | ||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||
Net revenue | (3,939) | (6,458) | ||||||||
Cost of services | (3,939) | (6,458) | ||||||||
GROSS MARGIN | 0 | 0 | ||||||||
Selling, administrative and other operating costs | 0 | 0 | ||||||||
Restructuring and severance costs | 0 | 0 | ||||||||
Gain from divestitures | 0 | |||||||||
Settlement and impairment charges | 0 | 0 | ||||||||
OPERATING INCOME (LOSS) | $ 0 | $ 0 |
Segment Disclosures - Summar_2
Segment Disclosures - Summary of Assets by Reportable Operating Segment (Details) - USD ($) $ in Thousands | Oct. 28, 2018 | Oct. 29, 2017 |
ASSETS | ||
Total Assets | $ 236,696 | $ 284,809 |
Operating Segments | North American Staffing | ||
ASSETS | ||
Total Assets | 121,510 | 128,695 |
Operating Segments | International Staffing | ||
ASSETS | ||
Total Assets | 27,765 | 36,773 |
Operating Segments | North American MSP | ||
ASSETS | ||
Total Assets | 20,194 | 28,296 |
Corporate & Other | ||
ASSETS | ||
Total Assets | $ 67,227 | $ 91,045 |
Segment Disclosures - Summar_3
Segment Disclosures - Summary of Sales to External Customers and Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Net Revenue: | ||||||||||
NET REVENUE | $ 264,805 | $ 257,808 | $ 263,219 | $ 253,338 | $ 288,483 | $ 289,924 | $ 303,005 | $ 313,024 | $ 1,039,170 | $ 1,194,436 |
Long-Lived Assets: | ||||||||||
Total Long-Lived Assets | 24,392 | 29,121 | 24,392 | 29,121 | ||||||
Domestic | ||||||||||
Net Revenue: | ||||||||||
NET REVENUE | 916,561 | 1,036,567 | ||||||||
Long-Lived Assets: | ||||||||||
Total Long-Lived Assets | 23,274 | 27,777 | 23,274 | 27,777 | ||||||
International, principally Europe | ||||||||||
Net Revenue: | ||||||||||
NET REVENUE | 122,609 | 157,869 | ||||||||
International | ||||||||||
Long-Lived Assets: | ||||||||||
Total Long-Lived Assets | $ 1,118 | $ 1,344 | $ 1,118 | $ 1,344 |
Segment Disclosures - Summar_4
Segment Disclosures - Summary of Capital Expenditures and Depreciation and Amortization by Operating Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 28, 2018 | Oct. 29, 2017 | |
Capital expenditures: | ||
Total Capital Expenditures | $ 3,565 | $ 9,312 |
Depreciation and amortization: | ||
Total Depreciation and Amortization | 7,209 | 8,025 |
Operating Segments | North American Staffing | ||
Capital expenditures: | ||
Total Capital Expenditures | 340 | 279 |
Depreciation and amortization: | ||
Total Depreciation and Amortization | 464 | 543 |
Operating Segments | International Staffing | ||
Capital expenditures: | ||
Total Capital Expenditures | 207 | 144 |
Depreciation and amortization: | ||
Total Depreciation and Amortization | 359 | 374 |
Operating Segments | North American MSP | ||
Capital expenditures: | ||
Total Capital Expenditures | 28 | 7 |
Depreciation and amortization: | ||
Total Depreciation and Amortization | 9 | 7 |
Corporate & Other | ||
Capital expenditures: | ||
Total Capital Expenditures | 2,990 | 8,882 |
Depreciation and amortization: | ||
Total Depreciation and Amortization | $ 6,377 | $ 7,101 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) - Selected Consolidated Statements of Operations Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Jan. 29, 2017 | Oct. 28, 2018 | Oct. 29, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||
NET REVENUE | $ 264,805 | $ 257,808 | $ 263,219 | $ 253,338 | $ 288,483 | $ 289,924 | $ 303,005 | $ 313,024 | $ 1,039,170 | $ 1,194,436 |
Cost of services | 220,797 | 221,448 | 225,918 | 217,329 | 240,816 | 244,205 | 255,886 | 266,134 | 885,492 | 1,007,041 |
GROSS MARGIN | 44,008 | 36,360 | 37,301 | 36,009 | 47,667 | 45,719 | 47,119 | 46,890 | 153,678 | 187,395 |
Selling, administrative and other operating costs | 41,261 | 42,222 | 42,916 | 46,938 | 50,138 | 46,931 | 51,171 | 48,890 | 173,337 | 197,130 |
Restructuring and severance costs | 4,512 | 3,108 | 104 | 518 | 307 | 249 | 199 | 624 | 8,242 | 1,379 |
Gain from divestitures | (48,033) | 0 | (3,938) | 0 | 0 | (51,971) | ||||
Settlement and impairment charges | 351 | 0 | 155 | 0 | 1,404 | 0 | 290 | 0 | 506 | 1,694 |
OPERATING INCOME (LOSS) | (2,116) | (8,970) | (5,874) | (11,447) | 43,851 | (1,461) | (603) | (2,624) | (28,407) | 39,163 |
Interest income | 54 | 50 | 47 | 22 | (1) | 1 | 8 | 31 | ||
Interest expense | (681) | (602) | (678) | (804) | (1,025) | (977) | (899) | (889) | (2,765) | (3,790) |
Foreign exchange gain (loss), net | 491 | (294) | (497) | 703 | (218) | (1,730) | 184 | 127 | 403 | (1,637) |
Other income (expense), net | (252) | (296) | (55) | (528) | (375) | (277) | (311) | (599) | (1,131) | (1,562) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (2,504) | (10,112) | (7,057) | (12,054) | 42,232 | (4,444) | (1,621) | (3,954) | (31,727) | 32,213 |
Income tax provision | 382 | 1,306 | 630 | (1,360) | 2,458 | 1,074 | (767) | 623 | 958 | 3,388 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | $ (2,886) | $ (11,418) | $ (7,687) | $ (10,694) | 39,774 | (5,518) | (854) | (4,577) | (32,685) | 28,825 |
Loss from discontinued operations, net of income taxes | (1,693) | 0 | 0 | 0 | 0 | (1,693) | ||||
NET INCOME (LOSS) | $ 38,081 | $ (5,518) | $ (854) | $ (4,577) | $ (32,685) | $ 27,132 | ||||
Basic: | ||||||||||
Income (loss) from continuing operations, basic (USD per share) | $ (0.14) | $ (0.54) | $ (0.37) | $ (0.51) | $ 1.90 | $ (0.26) | $ (0.04) | $ (0.22) | $ (1.55) | $ 1.38 |
Loss from discontinued operations (USD per share) | (0.08) | 0 | 0 | 0 | 0 | (0.08) | ||||
Net Income (loss) (USD per share) | $ 1.82 | $ (0.26) | $ (0.04) | $ (0.22) | $ (1.55) | $ 1.30 | ||||
Weighted average number of shares (shares) | 21,072 | 21,071 | 21,032 | 21,029 | 20,967 | 20,963 | 20,921 | 20,918 | 21,051 | 20,942 |
Diluted: | ||||||||||
Income (loss) from continuing operations, diluted (USD per share) | $ (0.14) | $ (0.54) | $ (0.37) | $ (0.51) | $ 1.90 | $ (0.26) | $ (0.04) | $ (0.22) | $ (1.55) | $ 1.37 |
Loss from discontinued operations (USD per share) | (0.08) | 0 | 0 | 0 | 0 | (0.08) | ||||
Net Income (loss) (USD per share) | $ 1.82 | $ (0.26) | $ (0.04) | $ (0.22) | $ (1.55) | $ 1.29 | ||||
Weighted average number of shares (shares) | 21,072 | 21,071 | 21,032 | 21,029 | 20,982 | 20,963 | 20,921 | 20,918 | 21,051 | 21,017 |