FORM |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the fiscal year ended | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to . |
Commission File Number: |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | ☒ | Smaller reporting company | | Emerging growth company | | |||||||||||||||||||||
Page | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 1B. | ||||||||
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ITEM 9A. | ||||||||
ITEM 9B. | ||||||||
ITEM 10. | ||||||||
ITEM 11. | ||||||||
ITEM 12. | ||||||||
ITEM 13. | ||||||||
ITEM 14. | ||||||||
ITEM 15. | ||||||||
Fiscal Period | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||
2020 | High | $ | 3.10 | $ | 2.51 | $ | 1.71 | $ | 1.74 | ||||||||||||||||||||
Low | $ | 2.28 | $ | 0.68 | $ | 0.70 | $ | 1.12 | |||||||||||||||||||||
2019 | High | $ | 3.70 | $ | 5.00 | $ | 4.84 | $ | 4.64 | ||||||||||||||||||||
Low | $ | 2.15 | $ | 3.67 | $ | 4.15 | $ | 2.76 |
For the year ended, (in thousands, except per share data) | November 1, 2020 | November 3, 2019 | October 28, 2018 | ||||||||||||||
52 weeks | 53 weeks | 52 weeks | |||||||||||||||
STATEMENT OF OPERATIONS DATA | |||||||||||||||||
Net revenue | $ | 822,055 | $ | 997,090 | $ | 1,039,170 | |||||||||||
Operating loss | $ | (29,369) | $ | (9,833) | $ | (28,407) | |||||||||||
Net loss | $ | (33,587) | $ | (15,186) | $ | (32,685) | |||||||||||
PER SHARE DATA: | |||||||||||||||||
Basic: | |||||||||||||||||
Net loss | $ | (1.56) | $ | (0.72) | $ | (1.55) | |||||||||||
Weighted average number of shares | 21,507 | 21,119 | 21,051 | ||||||||||||||
Diluted: | |||||||||||||||||
Net loss | $ | (1.56) | $ | (0.72) | $ | (1.55) | |||||||||||
Weighted average number of shares | 21,507 | 21,119 | 21,051 | ||||||||||||||
(in thousands) | November 1, 2020 | November 3, 2019 | October 28, 2018 | ||||||||||||||
BALANCE SHEET DATA | |||||||||||||||||
Cash and cash equivalents | $ | 38,550 | $ | 28,672 | $ | 24,763 | |||||||||||
Working capital | $ | 101,756 | $ | 89,352 | $ | 104,171 | |||||||||||
Total assets | $ | 241,845 | $ | 218,004 | $ | 236,696 | |||||||||||
Long-term debt, excluding current portion | $ | 60,000 | $ | 55,000 | $ | 50,000 | |||||||||||
Total stockholders’ equity | $ | 27,874 | $ | 36,189 | $ | 50,499 | |||||||||||
Note - Cash dividends were not declared or paid during the above periods. |
Year Ended November 1, 2020 | |||||||||||||||||||||||||||||||||||
(in thousands) | Total | North American Staffing | International Staffing | North American MSP | Corporate and Other | Elimination | |||||||||||||||||||||||||||||
Net revenue | $ | 822,055 | $ | 689,095 | $ | 95,308 | $ | 37,915 | $ | 674 | $ | (937) | |||||||||||||||||||||||
Cost of services | 694,204 | 586,255 | 79,087 | 29,471 | 328 | (937) | |||||||||||||||||||||||||||||
Gross margin | 127,851 | 102,840 | 16,221 | 8,444 | 346 | — | |||||||||||||||||||||||||||||
Selling, administrative and other operating costs | 137,666 | 85,776 | 14,484 | 5,370 | 32,036 | — | |||||||||||||||||||||||||||||
Restructuring and severance costs | 2,641 | 883 | 338 | — | 1,420 | — | |||||||||||||||||||||||||||||
Impairment charges | 16,913 | 1,859 | — | — | 15,054 | — | |||||||||||||||||||||||||||||
Operating income (loss) | (29,369) | 14,322 | 1,399 | 3,074 | (48,164) | — | |||||||||||||||||||||||||||||
Other income (expense), net | (3,173) | ||||||||||||||||||||||||||||||||||
Income tax provision | 1,045 | ||||||||||||||||||||||||||||||||||
Net loss | $ | (33,587) |
Year Ended November 3, 2019 | |||||||||||||||||||||||||||||||||||
(in thousands) | Total | North American Staffing | International Staffing | North American MSP | Corporate and Other (1) | Elimination (2) | |||||||||||||||||||||||||||||
Net revenue | $ | 997,090 | $ | 830,947 | $ | 114,377 | $ | 39,010 | $ | 15,320 | $ | (2,564) | |||||||||||||||||||||||
Cost of services | 844,527 | 708,824 | 95,552 | 28,324 | 14,391 | (2,564) | |||||||||||||||||||||||||||||
Gross margin | 152,563 | 122,123 | 18,825 | 10,686 | 929 | — | |||||||||||||||||||||||||||||
Selling, administrative and other operating costs | 157,052 | 103,437 | 15,422 | 5,595 | 32,598 | — | |||||||||||||||||||||||||||||
Restructuring and severance costs | 4,656 | 719 | 510 | 68 | 3,359 | — | |||||||||||||||||||||||||||||
Impairment charges | 688 | 4 | — | — | 684 | — | |||||||||||||||||||||||||||||
Operating income (loss) | (9,833) | 17,963 | 2,893 | 5,023 | (35,712) | — | |||||||||||||||||||||||||||||
Other income (expense), net | (4,375) | ||||||||||||||||||||||||||||||||||
Income tax provision | 978 | ||||||||||||||||||||||||||||||||||
Net loss | $ | (15,186) |
Global Liquidity | |||||||||||||||||
November 3, 2019 | February 2, 2020 | May 3, 2020 | August 2, 2020 | November 1, 2020 | |||||||||||||
Cash and cash equivalents (a) | $ | 28,672 | $ | 30,876 | $ | 26,223 | $ | 30,928 | $ | 38,550 | |||||||
Total outstanding debt | $ | 55,000 | $ | 55,000 | $ | 60,000 | $ | 60,000 | $ | 60,000 | |||||||
Cash in banks (b) (c) | $ | 19,945 | $ | 21,287 | $ | 22,876 | $ | 26,126 | $ | 36,218 | |||||||
DZ Financing Program | 22,271 | 11,302 | 4,202 | 5,122 | 2,828 | ||||||||||||
Global liquidity | 42,216 | 32,589 | 27,078 | 31,248 | 39,046 | ||||||||||||
Minimum liquidity threshold | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||||||
Available liquidity | $ | 27,216 | $ | 17,589 | $ | 12,078 | $ | 16,248 | $ | 24,046 | |||||||
For the Year Ended | |||||||||||
(in thousands) | November 1, 2020 | November 3, 2019 | |||||||||
Net cash provided by operating activities | $ | 18,154 | $ | 7,368 | |||||||
Net cash used in investing activities | (4,629) | (8,842) | |||||||||
Net cash provided by financing activities | 4,580 | 3,899 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (116) | (525) | |||||||||
Net increase in cash and cash equivalents | $ | 17,989 | $ | 1,900 |
VOLT INFORMATION SCIENCES, INC. | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Linda Perneau | ||||||||||||
Linda Perneau | ||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Herbert M. Mueller | ||||||||||||
Herbert M. Mueller | ||||||||||||||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Leonard Naujokas | ||||||||||||
Leonard Naujokas | ||||||||||||||
Controller and Chief Accounting Officer (Principal Accounting Officer) |
Date: January 13, 2021 | By: | /s/ William J. Grubbs | ||||||||||||
William J. Grubbs | ||||||||||||||
Chairman of the Board | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Linda Perneau | ||||||||||||
Linda Perneau | ||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Celia R. Brown | ||||||||||||
Celia R. Brown | ||||||||||||||
Director | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Nick S. Cyprus | ||||||||||||
Nick S. Cyprus | ||||||||||||||
Director | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Bruce G. Goodman | ||||||||||||
Bruce G. Goodman | ||||||||||||||
Director | ||||||||||||||
Date: January 13, 2021 | By: | /s/ Arnold Ursaner | ||||||||||||
Arnold Ursaner | ||||||||||||||
Director |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
NET REVENUE | $ | $ | |||||||||
Cost of services | |||||||||||
GROSS MARGIN | |||||||||||
Selling, administrative and other operating costs | |||||||||||
Restructuring and severance costs | |||||||||||
Impairment charges | |||||||||||
OPERATING LOSS | ( | ( | |||||||||
OTHER INCOME (EXPENSE), NET | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Foreign exchange gain (loss), net | ( | ( | |||||||||
Other income (expense), net | ( | ( | |||||||||
TOTAL OTHER INCOME (EXPENSE), NET | ( | ( | |||||||||
LOSS BEFORE INCOME TAXES | ( | ( | |||||||||
Income tax provision | |||||||||||
NET LOSS | $ | ( | $ | ( | |||||||
PER SHARE DATA: | |||||||||||
Basic: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Weighted average number of shares | |||||||||||
Diluted: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Weighted average number of shares |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
NET LOSS | $ | ( | $ | ( | |||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments net of taxes of $ | |||||||||||
COMPREHENSIVE LOSS | $ | ( | $ | ( |
November 1, 2020 | November 3, 2019 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Short-term investments | |||||||||||
Trade accounts receivable, net of allowances of $ | |||||||||||
Other current assets | |||||||||||
TOTAL CURRENT ASSETS | |||||||||||
Property, equipment and software, net | |||||||||||
Right of use assets - operating leases | |||||||||||
Other assets, excluding current portion | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accrued compensation | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued taxes other than income taxes | |||||||||||
Accrued insurance and other | |||||||||||
Operating lease liabilities | |||||||||||
Income taxes payable | |||||||||||
TOTAL CURRENT LIABILITIES | |||||||||||
Accrued payroll taxes and other, excluding current portion | |||||||||||
Operating lease liabilities - excluding current portion | |||||||||||
Deferred gain on sale of real estate, excluding current portion | |||||||||||
Income taxes payable, excluding current portion | |||||||||||
Deferred income taxes | |||||||||||
Long-term debt, net | |||||||||||
TOTAL LIABILITIES | |||||||||||
Commitments and contingencies | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Paid-in capital | |||||||||||
Retained deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost; | ( | ( | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ |
Common Stock $ | Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
BALANCE AT OCTOBER 28, 2018 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
BALANCE AT NOVEMBER 3, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | ( | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
BALANCE AT NOVEMBER 1, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Operating lease asset amortization | |||||||||||
Release of doubtful accounts and sales allowances | ( | ( | |||||||||
Unrealized foreign currency exchange loss | |||||||||||
Impairment charges | |||||||||||
(Gain) loss on dispositions of property, equipment and software | ( | ||||||||||
Amortization of gain on sale leaseback of property | — | ( | |||||||||
Deferred income tax benefit | ( | ( | |||||||||
Share-based compensation expense | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Trade accounts receivable | |||||||||||
Other assets | |||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses and other liabilities | ( | ||||||||||
Income taxes | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Sales of investments | |||||||||||
Purchases of investments | ( | ( | |||||||||
Proceeds from sales of property, equipment and software | |||||||||||
Purchases of property, equipment and software | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Repayment of borrowings | ( | ( | |||||||||
Draw-down on borrowings | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Withholding tax payment on vesting of restricted stock awards | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net increase in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash, beginning of year | |||||||||||
Cash, cash equivalents and restricted cash, end of year | $ | $ | |||||||||
Cash paid during the year: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | $ | $ | |||||||||
Reconciliation of cash, cash equivalents and restricted cash | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents and restricted cash, end of the period | $ | $ |
Buildings | |||||
Machinery and Equipment | |||||
Leasehold improvements | Shorter of length of lease or life of the asset | ||||
Software |
The components of lease expense were as follows (in thousands): | Year Ended November 1, 2020 | ||||
Operating lease expense | $ | ||||
Sublease income | ( | ||||
Variable lease expense | |||||
Total (1) (2) | $ |
Weighted average remaining lease terms and discount rates were as follows: | Year Ended November 1, 2020 | ||||
Weighted average remaining lease term (years) | |||||
Weighted average discount rate | % |
Fiscal Year: | Amount | ||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total future lease payments | $ | ||||
Less: Imputed interest | |||||
Total operating lease liabilities | $ |
Fiscal Year: | Amount | ||||
2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total future lease payments | $ |
Fiscal Year Ended November 1, 2020 | ||||||||||||||||||||
Segment | Total | North American Staffing | International Staffing | North American MSP | Corporate and Other | Eliminations | ||||||||||||||
Service Revenues: | ||||||||||||||||||||
Staffing Services | $ | $ | $ | $ | $ | $ | ( | |||||||||||||
Direct Placement Services | ||||||||||||||||||||
Managed Service Programs | ||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ( | ||||||||||||||
Geographical Markets: | ||||||||||||||||||||
Domestic | $ | $ | $ | $ | $ | $ | ( | |||||||||||||
International | ( | |||||||||||||||||||
$ | $ | $ | $ | $ | $ | ( |
Fiscal Year Ended November 3, 2019 | ||||||||||||||||||||
Segment | Total | North American Staffing | International Staffing | North American MSP | Corporate and Other (1) | Eliminations | ||||||||||||||
Service Revenues: | ||||||||||||||||||||
Staffing Services | $ | $ | $ | $ | $ | $ | ( | |||||||||||||
Direct Placement Services | ( | |||||||||||||||||||
Managed Service Programs | ||||||||||||||||||||
Call Center Services | ||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ( | ||||||||||||||
Geographical Markets: | ||||||||||||||||||||
Domestic | $ | $ | $ | $ | $ | $ | ( | |||||||||||||
International | ( | |||||||||||||||||||
$ | $ | $ | $ | $ | $ | ( |
November 1, 2020 | November 3, 2019 | Fair Value Hierarchy | |||||||||||||||
Short-term investments | $ | $ | Level 1 | ||||||||||||||
Total financial assets | $ | $ | |||||||||||||||
Deferred compensation plan liabilities | $ | $ | Level 1 | ||||||||||||||
Total financial liabilities | $ | $ |
Balance at beginning of year | Activity | Balance at end of year | |||||||||||||||||||||
Year Ended November 1, 2020 | |||||||||||||||||||||||
Allowance for doubtful accounts included in Trade accounts receivable | $ | $ | $ | ||||||||||||||||||||
Accrued sales reserve included in Accrued insurance and other | $ | $ | ( | $ | |||||||||||||||||||
Balance at beginning of year | Adoption of Topic 606 | Activity | Balance at end of year | ||||||||||||||||||||
Year Ended November 3, 2019 | |||||||||||||||||||||||
Sales allowance | $ | $ | ( | $ | $ | ||||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||||||||
Total included in Trade accounts receivable | $ | $ | ( | $ | $ | ||||||||||||||||||
Accrued Sales Reserve included in Accrued insurance and other | $ | $ | $ | ( | $ | ||||||||||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
Land and buildings | $ | $ | |||||||||
Machinery and equipment | |||||||||||
Leasehold improvements | |||||||||||
Less: Accumulated depreciation and amortization | ( | ( | |||||||||
Property and equipment | |||||||||||
Software | |||||||||||
Less: Accumulated amortization | ( | ( | |||||||||
Property, equipment and software, net | $ | $ |
International Staffing | |||||||||||||||||||||||||||||
October 28, 2018 | Foreign Currency Translation Adjustment | November 3, 2019 | Foreign Currency Translation Adjustment | November 1, 2020 | |||||||||||||||||||||||||
Aggregate goodwill acquired | $ | $ | — | $ | $ | — | $ | ||||||||||||||||||||||
Accumulated impairment losses | ( | — | ( | — | ( | ||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||||||||
Goodwill, net of impairment losses | $ | $ | $ | $ | $ |
Year Ended November 1, 2020 | |||||||||||||||||||||||||||||
Total | North American Staffing | International Staffing | North American MSP | Corporate & Other | |||||||||||||||||||||||||
Severance and benefit costs | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
2020 Plan | |||||||||||||||||||||||||||||
Severance and benefit costs | ( | ( | |||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
2018 Plan | |||||||||||||||||||||||||||||
Severance and benefit costs | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Year Ended November 3, 2019 | |||||||||||||||||||||||||||||
Total | North American Staffing | International Staffing | North American MSP | Corporate & Other | |||||||||||||||||||||||||
Severance and benefit costs | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
2018 Plan | |||||||||||||||||||||||||||||
Severance and benefit costs | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Exit of Customer Care Solutions Business | |||||||||||||||||||||||||||||
Severance and benefit costs | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Change in Executive Management | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
November 1, 2020 | November 3, 2019 | |||||||||||||
Balance, end of previous year | $ | $ | ||||||||||||
Cease use liabilities transferred to ROU assets | ( | |||||||||||||
Charged to expense | ||||||||||||||
Cash payments | ( | ( | ||||||||||||
Ending Balance | $ | $ |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
U.S. Domestic | $ | ( | $ | ( | |||||||
International | |||||||||||
Loss before income tax | $ | ( | $ | ( |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
Current: | |||||||||||
U.S. Federal | $ | $ | |||||||||
U.S. State and local | |||||||||||
International | |||||||||||
Total current | $ | $ | |||||||||
Deferred: | |||||||||||
U.S. State and local | $ | $ | |||||||||
International | ( | ( | |||||||||
Total deferred | ( | ( | |||||||||
Income tax provision | $ | $ |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
U.S. Federal statutory rate | $ | ( | $ | ( | |||||||
U.S. State income tax, net of U.S. Federal tax benefits | ( | ||||||||||
International permanent differences | |||||||||||
International tax rate differentials | |||||||||||
U.S. tax on international income | ( | ||||||||||
General business credits | ( | ( | |||||||||
Non-deductible expenses | |||||||||||
Capital Loss | |||||||||||
Change in valuation allowance for deferred tax assets | |||||||||||
Income tax provision | $ | $ |
November 1, 2020 | November 3, 2019 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | $ | |||||||||
Interest carryforward | |||||||||||
Capital loss carryforwards | |||||||||||
U.S. federal tax credit carryforwards | |||||||||||
Deferred income | |||||||||||
Operating lease liabilities | |||||||||||
Deferred withholding tax | |||||||||||
Compensation accruals | |||||||||||
Other, net | |||||||||||
Total deferred tax assets | |||||||||||
Less valuation allowance | ( | ( | |||||||||
Deferred tax assets, net | |||||||||||
Deferred tax liabilities: | |||||||||||
Unremitted earnings from foreign subsidiaries | |||||||||||
Software development costs | |||||||||||
Right of use assets - operating leases | |||||||||||
Other, net | |||||||||||
Total deferred tax liabilities | |||||||||||
Net deferred tax liability | $ | ( | $ | ( | |||||||
Balance sheet classification | |||||||||||
Non-current assets | $ | $ | |||||||||
Non-current liabilities | ( | ( | |||||||||
Net deferred tax asset (liability) | $ | ( | $ | ( |
November 1, 2020 | November 3, 2019 | ||||||||||
Balance, beginning of year | $ | $ | |||||||||
Decreases relating to tax positions taken in a prior period | ( | ( | |||||||||
Settlements | ( | ( | |||||||||
Lapse of statute of limitations | ( | ||||||||||
Total | $ | $ |
November 1, 2020 | November 3, 2019 | ||||||||||
Financing programs | $ | $ | |||||||||
Less: | |||||||||||
Deferred financing fees | |||||||||||
Total long-term debt, net | $ | $ |
November 1, 2020 | November 3, 2019 | ||||||||||
Balance, beginning of the year | $ | ( | $ | ( | |||||||
Shares issued for share-based compensation awards | |||||||||||
Ending Balance | $ | ( | $ | ( |
Foreign currency gains/(losses) | November 1, 2020 | November 3, 2019 | |||||||||
Balance, beginning of the year | $ | ( | $ | ( | |||||||
Other comprehensive income (loss) before reclassifications | |||||||||||
Current period other comprehensive income (loss) | |||||||||||
Ending Balance | $ | ( | $ | ( |
Number of | Weighted Average | ||||||||||
Performance Share Units | Shares | Grant Date Fair Value | |||||||||
Outstanding at October 28, 2018 | $ | ||||||||||
Granted (a) (b) | $ | ||||||||||
Forfeited | ( | $ | |||||||||
Vested | ( | $ | |||||||||
Outstanding at November 3, 2019 | $ | ||||||||||
Forfeited | ( | $ | |||||||||
Vested | ( | $ | |||||||||
Outstanding at November 1, 2020 | $ | ||||||||||
(a) Includes the incremental issuance of shares related to the fiscal 2018 PSU grant. | |||||||||||
(b) Includes the incremental shares for the first tranche of the fiscal 2019 PSU grant based on attainment of the fiscal 2019 EBITDA margin percentage goal that were issued upon vesting. |
Number of | Weighted Average | ||||||||||
Restricted Stock Units | Shares | Grant Date Fair Value | |||||||||
Outstanding at October 28, 2018 | $ | ||||||||||
Granted | $ | ||||||||||
Forfeited | ( | $ | |||||||||
Vested | ( | $ | |||||||||
Outstanding at November 3, 2019 | $ | ||||||||||
Granted | $ | ||||||||||
Forfeited | ( | $ | |||||||||
Vested | ( | $ | |||||||||
Outstanding at November 1, 2020 | $ |
Stock Options | Number of shares | Weighted average exercise price | Weighted average contractual life (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||||||||
Outstanding at October 28, 2018 | $ | $ | |||||||||||||||||||||
Exercised | ( | $ | — | $ | — | ||||||||||||||||||
Forfeited | ( | $ | — | $ | — | ||||||||||||||||||
Expired | ( | $ | — | $ | — | ||||||||||||||||||
Outstanding at November 3, 2019 | $ | $ | |||||||||||||||||||||
Forfeited | ( | $ | — | $ | — | ||||||||||||||||||
Expired | ( | $ | — | $ | — | ||||||||||||||||||
Outstanding at November 1, 2020 | $ | ||||||||||||||||||||||
Unvested at November 1, 2020 | $ | ||||||||||||||||||||||
Exercisable at November 1, 2020 | $ | ||||||||||||||||||||||
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
Numerator | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Denominator | |||||||||||
Basic weighted average number of shares | |||||||||||
Dilutive weighted average number of shares | |||||||||||
Per Share Data: | |||||||||||
Basic: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Diluted: | |||||||||||
Net loss | $ | ( | $ | ( |
Year Ended November 1, 2020 | |||||||||||||||||||||||||||||||||||
Total | North American Staffing | International Staffing | North American MSP | Corporate and Other | Eliminations | ||||||||||||||||||||||||||||||
Net revenue | $ | $ | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Cost of services | ( | ||||||||||||||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||||||||||||||
Selling, administrative and other operating costs | |||||||||||||||||||||||||||||||||||
Restructuring and severance costs | |||||||||||||||||||||||||||||||||||
Impairment charges | |||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||||||||||||||||||||
Income tax provision | |||||||||||||||||||||||||||||||||||
Net loss | $ | ( |
Year Ended November 3, 2019 | |||||||||||||||||||||||||||||||||||
Total | North American Staffing | International Staffing | North American MSP | Corporate and Other (1) | Eliminations (2) | ||||||||||||||||||||||||||||||
Net revenue | $ | $ | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Cost of services | ( | ||||||||||||||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||||||||||||||
Selling, administrative and other operating costs | |||||||||||||||||||||||||||||||||||
Restructuring and severance costs | |||||||||||||||||||||||||||||||||||
Impairment charges | |||||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||||||||||||||
Other income (expense), net | ( | ||||||||||||||||||||||||||||||||||
Income tax provision | |||||||||||||||||||||||||||||||||||
Net loss | $ | ( |
November 1, 2020 | November 3, 2019 | ||||||||||
Assets: | |||||||||||
North American Staffing | $ | $ | |||||||||
International Staffing | |||||||||||
North American MSP | |||||||||||
Corporate & Other | |||||||||||
Total Assets | $ | $ |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
Net Revenue: | |||||||||||
Domestic | $ | $ | |||||||||
International | |||||||||||
Total Net Revenue | $ | $ |
November 1, 2020 | November 3, 2019 | ||||||||||
Long-Lived Assets: | (1) | ||||||||||
Domestic | $ | $ | |||||||||
International | |||||||||||
Total Long-Lived Assets | $ | $ | |||||||||
(1) Long-lived assets in Fiscal 2020 includes the ROU assets resulting from the adoption of ASC 842, Leases. |
Year Ended | |||||||||||
November 1, 2020 | November 3, 2019 | ||||||||||
Capital Expenditures: | |||||||||||
North American Staffing | $ | $ | |||||||||
International Staffing | |||||||||||
North American MSP | |||||||||||
Corporate & Other | |||||||||||
Total Capital Expenditures | $ | $ | |||||||||
Depreciation and Amortization: | |||||||||||
North American Staffing | $ | $ | |||||||||
International Staffing | |||||||||||
North American MSP | |||||||||||
Corporate & Other | |||||||||||
Total Depreciation and Amortization | $ | $ |
Three Months Ended | |||||||||||||||||||||||
February 2, 2020 | May 3, 2020 | August 2, 2020 | November 1, 2020 | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
13 weeks | 13 weeks | 13 weeks | 13 weeks | ||||||||||||||||||||
NET REVENUE | $ | $ | $ | $ | |||||||||||||||||||
Cost of services | |||||||||||||||||||||||
GROSS MARGIN | |||||||||||||||||||||||
Selling, administrative and other operating costs | |||||||||||||||||||||||
Restructuring and severance costs | |||||||||||||||||||||||
Impairment charges | |||||||||||||||||||||||
OPERATING LOSS | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Foreign exchange gain (loss), net | ( | ( | ( | ||||||||||||||||||||
Other income (expense), net | ( | ( | ( | ( | |||||||||||||||||||
LOSS BEFORE INCOME TAXES | ( | ( | ( | ( | |||||||||||||||||||
Income tax provision (benefit) | |||||||||||||||||||||||
NET LOSS | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
PER SHARE DATA: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average number of shares | |||||||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average number of shares |
Three Months Ended | |||||||||||||||||||||||
January 27, 2019 | April 28, 2019 | July 28, 2019 | November 3, 2019 | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
13 weeks | 13 weeks | 13 weeks | 14 weeks | ||||||||||||||||||||
NET REVENUE | $ | $ | $ | $ | |||||||||||||||||||
Cost of services | |||||||||||||||||||||||
GROSS MARGIN | |||||||||||||||||||||||
Selling, administrative and other operating costs | |||||||||||||||||||||||
Restructuring and severance costs | |||||||||||||||||||||||
Impairment charges | |||||||||||||||||||||||
OPERATING INCOME (LOSS) | ( | ( | ( | ||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Foreign exchange gain (loss), net | ( | ( | ( | ||||||||||||||||||||
Other income (expense), net | ( | ( | ( | ( | |||||||||||||||||||
LOSS BEFORE INCOME TAXES | ( | ( | ( | ( | |||||||||||||||||||
Income tax provision | |||||||||||||||||||||||
NET LOSS | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
PER SHARE DATA: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net Loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average number of shares | |||||||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net Loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted average number of shares |
No. | Name (1) | Jurisdiction of Incorporation | |||||||||
1 | Arctern Consulting Private Limited (2) | India | |||||||||
2 | Arctern, Inc. | Virginia | |||||||||
3 | Nuco I, Ltd. | Nevada | |||||||||
4 | P/S Partner Solutions, Ltd. | Delaware | |||||||||
5 | ProcureStaff Technologies, Ltd. | Delaware | |||||||||
6 | Volt Consulting MSP Canada Ltd. | Canada | |||||||||
7 | VMC Consulting Europe Limited | United Kingdom | |||||||||
8 | VMC Consulting Germany Gmbh | Germany | |||||||||
9 | VMC Services India Private Limited (3) | India | |||||||||
10 | Volt Asia Enterprises (Malaysia) Sdn. Bhd. | Malaysia | |||||||||
11 | Volt Asia Enterprises, Ltd. | Delaware | |||||||||
12 | Volt Consulting Group, Ltd. | Delaware | |||||||||
13 | Volt Delta International B.V. | Netherlands | |||||||||
14 | Volt Delta Resource Holdings, Inc | Nevada | |||||||||
15 | Volt Europe (Belgium) SPRL | Belgium | |||||||||
16 | Volt Europe (Deutschland) GmbH | Germany | |||||||||
17 | Volt Europe (Espana) S.L. | Spain | |||||||||
18 | Volt Europe (France) SARL | France | |||||||||
19 | Volt Europe (Germany) GmbH | Germany | |||||||||
20 | Volt Europe (Nederland) BV | Netherlands | |||||||||
21 | Volt Europe (Switzerland) SA | Switzerland | |||||||||
22 | Volt Europe Ceska Republika s.r.o | Czech Republic | |||||||||
23 | Volt Europe Holdings Limited | United Kingdom | |||||||||
24 | Volt Europe Limited | United Kingdom | |||||||||
25 | Volt Europe Slovakia s.r.o. | Slovakia | |||||||||
26 | Volt Europe Temporary Services Limited | United Kingdom | |||||||||
27 | Volt Funding II, LLC | Delaware | |||||||||
28 | Volt Gatton Holding, Inc. | Delaware | |||||||||
29 | Volt Information Sciences (India) Private Limited (2) | India | |||||||||
30 | Volt Management Corp. | Delaware | |||||||||
31 | Volt Netherlands Holding BV | Netherlands | |||||||||
32 | Volt Reach, Inc. | Delaware | |||||||||
33 | Volt Consulting Group Limited | United Kingdom | |||||||||
34 | Volt Service Corporation Pte, Ltd. | Singapore | |||||||||
35 | Volt Service K.K. | Japan | |||||||||
36 | Volt Services Group (Netherlands) B.V. | Netherlands |
/s/ Linda Perneau | |||||
Linda Perneau | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Herbert M. Mueller | |||||
Herbert M. Mueller | |||||
Senior Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
/s/ Linda Perneau | |||||
Linda Perneau | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ Herbert M. Mueller | |||||
Herbert M. Mueller | |||||
Senior Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Income Statement [Abstract] | ||||||||||
NET REVENUE | $ 211,073 | $ 185,941 | $ 207,275 | $ 217,766 | $ 258,408 | $ 233,176 | $ 252,070 | $ 253,436 | $ 822,055 | $ 997,090 |
Cost of services | 176,844 | 155,983 | 175,038 | 186,339 | 215,449 | 197,528 | 215,813 | 215,737 | 694,204 | 844,527 |
GROSS MARGIN | 34,229 | 29,958 | 32,237 | 31,427 | 42,959 | 35,648 | 36,257 | 37,699 | 127,851 | 152,563 |
Selling, administrative and other operating costs | 30,735 | 31,245 | 36,189 | 39,497 | 39,908 | 38,395 | 38,939 | 39,810 | 137,666 | 157,052 |
Restructuring and severance costs | 438 | 546 | 411 | 1,246 | 1,856 | 2,017 | 724 | 59 | 2,641 | 4,656 |
Impairment charges | 14,518 | 2,384 | 0 | 11 | 262 | 79 | 347 | 0 | 16,913 | 688 |
Operating income (loss) | (11,462) | (4,217) | (4,363) | (9,327) | 933 | (4,843) | (3,753) | (2,170) | (29,369) | (9,833) |
OTHER INCOME (EXPENSE), NET | ||||||||||
Interest income | 8 | 9 | 31 | 30 | 66 | 87 | 66 | 55 | 78 | 274 |
Interest expense | (439) | (476) | (652) | (730) | (789) | (801) | (765) | (801) | (2,297) | (3,156) |
Foreign exchange gain (loss), net | (62) | 571 | (266) | (328) | (360) | (151) | (314) | 213 | (85) | (612) |
Other income (expense), net | (291) | (168) | (152) | (258) | (292) | (184) | (166) | (239) | (869) | (881) |
TOTAL OTHER INCOME (EXPENSE), NET | (3,173) | (4,375) | ||||||||
LOSS BEFORE INCOME TAXES | (12,246) | (4,281) | (5,402) | (10,613) | (442) | (5,892) | (4,932) | (2,942) | (32,542) | (14,208) |
Income tax provision | 271 | 556 | 23 | 195 | 307 | 165 | 233 | 273 | 1,045 | 978 |
NET LOSS | $ (12,517) | $ (4,837) | $ (5,425) | $ (10,808) | $ (749) | $ (6,057) | $ (5,165) | $ (3,215) | $ (33,587) | $ (15,186) |
Basic: | ||||||||||
Net loss (USD per share) | $ (0.58) | $ (0.22) | $ (0.25) | $ (0.50) | $ (0.04) | $ (0.29) | $ (0.24) | $ (0.15) | $ (1.56) | $ (0.72) |
Weighted average number of shares (shares) | 21,607 | 21,589 | 21,416 | 21,416 | 21,157 | 21,157 | 21,082 | 21,080 | 21,507 | 21,119 |
Diluted: | ||||||||||
Net loss (USD per share) | $ (0.58) | $ (0.22) | $ (0.25) | $ (0.50) | $ (0.04) | $ (0.29) | $ (0.24) | $ (0.15) | $ (1.56) | $ (0.72) |
Weighted average number of shares (shares) | 21,607 | 21,589 | 21,416 | 21,416 | 21,157 | 21,157 | 21,082 | 21,080 | 21,507 | 21,119 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||
NET LOSS | $ (33,587) | $ (15,186) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments net of taxes of $0 and $0, respectively | 343 | 269 |
COMPREHENSIVE LOSS | $ (33,244) | $ (14,917) |
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, taxes | $ 0.0 | $ 0.0 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Nov. 01, 2020 |
Nov. 03, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 219 | $ 117 |
Preferred stock, par value (USD per share) | $ 1.00 | $ 1.00 |
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) | 120,000,000.00 | 120,000,000.00 |
Common stock, shares issued (shares) | 23,738,003 | 23,738,003 |
Common stock, shares outstanding (shares) | 21,729,400 | 21,367,821 |
Treasury stock, shares (shares) | 2,008,603 | 2,370,182 |
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Common Stock |
Paid-in Capital |
(Accumulated Deficit) Retained Earnings |
(Accumulated Deficit) Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
|
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
---|---|---|---|---|---|---|---|---|
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Balance at beginning of period (shares) at Oct. 28, 2018 | 23,738,003 | |||||||
Balance at beginning of period at Oct. 28, 2018 | $ 50,499 | $ 426 | $ 2,374 | $ 79,057 | $ 9,738 | $ 426 | $ (7,070) | $ (33,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (15,186) | (15,186) | ||||||
Share-based compensation | 499 | 499 | ||||||
Issuance of common stock | (318) | (1,868) | (5,895) | 7,445 | ||||
Other comprehensive income (loss) | 269 | 269 | ||||||
Balance at end of period (shares) at Nov. 03, 2019 | 23,738,003 | |||||||
Balance at end of period at Nov. 03, 2019 | 36,189 | $ 22,216 | $ 2,374 | 77,688 | (10,917) | $ 22,216 | (6,801) | (26,155) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (33,587) | (33,587) | ||||||
Share-based compensation | 1,736 | 1,736 | ||||||
Issuance of common stock | 977 | 513 | (7,505) | 7,969 | ||||
Other comprehensive income (loss) | 343 | 343 | ||||||
Balance at end of period (shares) at Nov. 01, 2020 | 23,738,003 | |||||||
Balance at end of period at Nov. 01, 2020 | $ 27,874 | $ 2,374 | $ 79,937 | $ (29,793) | $ (6,458) | $ (18,186) |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
Nov. 01, 2020 |
Nov. 03, 2019 |
Oct. 28, 2018 |
---|---|---|---|
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (USD per share) | $ 0.10 | $ 0.10 | $ 0.10 |
Summary of Business and Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 | |||||||||||||||||||||||||||||||
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”) involve managing the procurement and on-boarding of contingent workers from multiple providers. Through the time of our exit from the customer care solutions business in June 2019, we served as an extension of our customers’ consumer relationships and processes including collaborating with customers, from help desk inquiries to advanced technical support. 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 was traded on the NYSE AMERICAN under the symbol “VISI” until September 6, 2019. As of September 9, 2019, the Company’s stock was traded on the NYSE AMERICAN under the symbol “VOLT”. (a)Fiscal Year The Company’s fiscal year ends on the Sunday nearest October 31st. The fiscal year 2020 consisted of 52 weeks and fiscal 2019 consisted of 53 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, share-based 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 recognized when control of the promised services is transferred to the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The majority of customer contracts have performance obligations that the Company satisfies over time and revenue is recognized by consistently applying a method of measuring progress toward satisfaction of that performance obligation. The Company will generally utilize an input measure of time (e.g., hours, weeks, months) of service provided, which depicts the progress toward completion of each performance obligation. Certain customer contracts have variable consideration, including rebates, guarantees, credits, or other similar items that reduce the transaction price. The Company will generally estimate the variable consideration using the expected value method to predict the amount of consideration to which it will become entitled, based on the circumstances of each customer contract and historical evidence. Revenue is recognized net of variable consideration to the extent that it is probable that a significant future reversal will not occur. In scenarios where a third-party vendor is involved in the Company's revenue transactions with its customers, the Company will evaluate whether it is the principal or the agent in the transaction. When Volt acts as the principal, it controls the performance obligation prior to transfer of the service to the customer and reports the related consideration as gross revenues and the costs as cost of services. When Volt acts as an agent, it does not control the performance obligation prior to transfer of the service to the customer and it reports the related amounts as revenue on a net basis. Refer to Note 3, Revenue Recognition for the revenue policies related to each specific transaction type. (e)Expense Recognition Cost of Services Cost of 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 costs are 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. Gross margin is calculated as revenue less cost of 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 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 both on-premise and cloud computing 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:
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)Leases The Company adopted Accounting Standards Codification (“ASC”) 842, Leases in the first quarter of fiscal 2020. As such, the Company implemented new accounting policies and recognized assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. Refer to Note 2: Leases for a description of the accounting policies. (k)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. (l)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. (m)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 is 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 share-based compensation cost or incur incremental cost. (n)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. (o)Fair Value Measurement In accordance with 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: impairment testing using level 3 inputs for goodwill, right-of-use (“ROU”) assets as well as other 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 and accounts payable, approximated their fair values due to the short-term nature of these instruments. 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 and is classified as a Level 2 in the fair value hierarchy. 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. (p)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. (q)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. (r)Restructuring and Severance Costs 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. (s)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. (t)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. (u)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 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The Company intends to apply ASU 2020-04 in the first quarter of fiscal 2021 and does not anticipate a significant impact on its consolidated financial statements upon adoption. In August 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 on the consolidated financial statements upon adoption. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), as clarified in ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2018-19, amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. The amendments are effective for fiscal years beginning after December 15, 2022, which for the Company will be the first quarter of fiscal 2024. 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. 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 by the Company In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 18): 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. ASU 2018-07 was effective for the Company in the first quarter of fiscal 2020 and the adoption of this guidance had no impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU 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. This ASU was effective in the first quarter of fiscal 2020 resulting in the Company recording ROU assets and lease liabilities on the consolidated balance sheet. The adoption of this standard did not have a material impact on the consolidated financial statements of operations and consolidated statements of cash flows. For the impact on the Company's consolidated financial statements, refer to Note 2 - Leases. All other ASUs that became effective for Volt for fiscal 2020 were not applicable to the Company at this time and therefore, did not have any impact during the period.
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Leases | Leases The Company adopted ASC 842, Leases on November 4, 2019 using the modified transition method without retrospective application to comparative periods. The Company elected the package of three practical expedients allowed for under the transition guidance. Accordingly, the Company did not reassess: (1) whether any expired or existing contracts are/or contain leases; (2) the lease classification for any expired or existing leases; or (3) initial direct costs for any existing leases. The Company has also elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of 12 months or less. The Company’s material operating leases consist of branch locations, as well as corporate office space. Our leases have remaining terms of 1 - 11 years. The lease term is the minimum of the non-cancelable period of the lease or the lease term inclusive of reasonably certain renewal option periods. Volt determines if an arrangement meets the criteria of a lease at inception, at which time it also performs an analysis to determine whether the lease qualifies as operating or financing. The Company does not currently have any finance leases. Upon adoption, the Company recorded approximately $47.2 million of ROU assets and $52.0 million of lease liabilities related to operating leases in the Consolidated Balance Sheet. At transition, the ROU asset was measured at the initial amount of the lease liability adjusted for any deferred rent and cease-use liabilities. The Company also recognized a $22.2 million cumulative-effect adjustment to retained earnings related to the deferred gain on the sale and leaseback of real estate. This gain was previously being amortized at approximately $0.5 million per quarter as an offset to rent expense in the Consolidated Statements of Operations. Since the Company has a full valuation allowance against its deferred tax assets, the impact is a reduction to our deferred tax assets and related valuation allowance, which resulted in no tax impact to the net change to equity. Operating lease liabilities represent the present value of lease payments not yet paid. ROU assets represent Volt's right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepaid or accrued lease payments, initial direct costs, lease incentives and impairment of operating lease assets. As the rate implicit in the lease is not readily determinable, the Company used its incremental borrowing rates based on the information available at the lease commencement date in determining the present value of lease payments. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases. The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate and instead account for each as a single lease component, for all underlying asset classes. Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance, tax payments and other miscellaneous costs. The variable portion of lease payments is not included in the ROU assets or lease liabilities. Rather, variable payments, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred and are included in lease expenses. Accordingly, all expenses associated with a lease contract are accounted for as lease expenses. Operating leases are included in Right of use assets - operating leases and Operating lease liabilities, current and long-term, in the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term and is included in Selling, administrative and other operating costs in the Consolidated Statement of Operations. During fiscal 2020, cash paid for the amount that was included in the measurement of operating lease liabilities was $11.6 million and the ROU assets obtained in exchange for operating lease liabilities was $2.0 million.
(1) Approximately $0.3 million of lease expense is included in restructuring. (2) The Company has minimal short-term lease expense.
Maturities of operating lease liabilities as of November 1, 2020 were as follows (in thousands):
Maturities of operating leases accounted for under ASC 840 as of fiscal year-end 2019 were as follows (in thousands):
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Revenue Recognition | Revenue Recognition Adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) As of October 29, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method applied to those contracts which were not completed as of October 29, 2018. Results for reporting periods beginning on October 29, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting guidance. The cumulative impact of adopting ASC 606 resulted in an increase of $0.4 million to opening retained earnings. The impact is primarily driven by an adjustment to deferred revenue due to a change in the required criteria for defining customer contracts under the new guidance. As of and for the period ended November 1, 2020 and November 3, 2019, the consolidated financial statements were not materially impacted by the implementation of ASC 606. Revenue Recognition All of the Company’s revenue and trade receivables are generated from contracts with customers. Revenue is recognized when control of the promised services is transferred to the Company’s customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company’s revenue is recorded net of any sales or other similar taxes collected from its customers. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The majority of the Company’s contracts contain single performance obligations. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward satisfaction of that performance obligation. The Company will generally utilize an input measure of time (e.g., hours, weeks, months) of service provided, which depicts the progress toward completion of each performance obligation. Volt generally determines the standalone selling prices based on the prices included in the customer contracts. The price as specified in its customer contracts is typically considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar customer. Certain customer contracts have variable consideration, including rebates, guarantees, credits, or other similar items that reduce the transaction price. The Company will generally estimate the variable consideration using the expected value method to predict the amount of consideration to which it will become entitled, based on the circumstances of each customer contract and historical evidence. Revenue is recognized net of variable consideration to the extent that it is probable that a significant future reversal will not occur. The Company’s estimated amounts of variable consideration are not material and it does not believe that there will be significant changes to its estimates. In certain scenarios where a third-party vendor is involved in the Company’s revenue transactions with its customers, the Company will evaluate whether it is the principal or the agent in the transaction. When Volt acts as the principal, it controls the performance obligation prior to transfer of the service to the customer and reports the related consideration as gross revenues and the costs as cost of services. When Volt acts as an agent, it does not control the performance obligation prior to transfer of the service to the customer and it reports the related amounts as revenue on a net basis. The Company generally demonstrates control over the service when it is responsible for the fulfillment of services under the contract, responsible for the workers performing the service and when it has latitude in establishing pricing. Volt generally acts as an agent in its transactions within its MSP programs where the Company provides comprehensive management of its customer’s contingent workforce and receive fees based on the volume of services managed within each program. The Company is the agent in these transactions since it does not have the responsibility for the fulfillment of the services by the vendors or contractors (referred to as associate vendors). In these transactions, the Company does not control the third-party providers’ staffing services provided to the customers prior to those services being transferred to the customer. Revenue Service Types Staffing Services Volt’s primary service is providing contingent (temporary) workers to its customers. These services are primarily provided through direct agreements with customers and Volt provides these services using its employees and, in some cases, by subcontracting with other vendors of contingent workers. Volt’s costs in providing these services consist of the wages and benefits provided to the contingent workers as well as the recruiting costs, payroll department costs and other administrative costs. The Company recognizes revenue for its contingent staffing services over time as services are performed in an amount that reflects the consideration it expects to be entitled to in exchange for its services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The customer simultaneously receives and consumes the benefits of the services as they are provided. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Direct Placement Services Direct placement services include providing qualified candidates to the Company’s customers to hire on a permanent basis. These services are primarily recognized at a point in time when the qualified candidate is placed and begins permanent employment which is the point when control has transferred to the customer and the Company has the right to payment for the service. Each placement is a single performance obligation under the Company’s contracts and the related consideration is typically based upon a percentage of the candidates’ base salary. Direct placement revenue is recognized net of a reserve for permanent placement candidates that do not remain with the customer through the contingency period, which is typically 60 days or less. This contingency is estimated based on historical data and recorded as a refund liability. Managed Service Programs (“MSP”) The Company’s MSP programs provide comprehensive solutions for delivery of contingent labor for assignment to customers, including supplier and worker sourcing, selecting, qualifying, on/off-boarding, time and expense recordation, reporting and approved invoicing and payment processing procedures. Since the individual activities are not distinct, the Company accounts for these activities as a single performance obligation. The Company’s fee for these MSP services is a fixed percentage of the staffing services spend that is managed through the program. The Company recognizes revenue over time for each month of MSP services provided as the customer simultaneously receives and consumes the services the Company provides. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Call Center Services The customer care solutions business through June 2019 specialized in serving as an extension of its customers’ relationships and processes, from help desk inquiries to advanced technical support. The Company earned a fee based upon the type, volume and level of services provided as part of the call center operations. Since the individual activities are not distinct, the Company accounted for them as a single performance obligation. The Company recognized revenue over time as the customer simultaneously received and consumed the services the Company provided. The Company applied the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it had the right to invoice the customer. Disaggregation of Revenues The following table presents the Company's segment revenues disaggregated by service type (in thousands):
(1) Includes the revenues from Volt's Customer Care Solutions business through the time of exit in June 2019. Payment Terms Customer payment terms vary by arrangement although payments are typically due within 15 - 45 days of invoicing. The timing between the satisfaction of the performance obligations and the payment is not significant and the Company currently does not have any significant financing components or significant payment terms. Unsatisfied Performance Obligations The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which they will recognize revenue at the amount to which it has the right to invoice for services performed. Unsatisfied performance obligations for contracts not meeting the aforementioned criteria are immaterial. Accounts Receivable, Contract Assets and Contract Liabilities The Company records accounts receivable when its right to consideration becomes unconditional. The Company maintains a sales allowance for any potential billing errors and service-related adjustments to the customer. The amount of the sales allowance is determined based on a historical transaction analysis and additions to the sales allowance are recorded as a reduction to net revenue. As required under Topic 606, the Company changed its presentation to show this allowance as a liability, whereas under Topic 605, these accounts receivables were recorded net of an allowance. As of November 3, 2019, the change in the reserve balance from adoption was $0.4 million. The change in the reserve balance during fiscal 2020 and as of November 1, 2020 was not material. Contract assets primarily relate to the Company’s rights to consideration for services provided that are conditional on satisfaction of future performance obligations. The Company records contract liabilities when payments are made or due prior to the related performance obligations being satisfied. The current portion of contract liabilities is included in Accrued insurance and other in the Consolidated Balance Sheets. The Company does not have any material contract assets or long-term contract liabilities as of November 1, 2020 and November 3, 2019. The Company may incur fulfillment costs after obtaining a contract to generate a resource that will be used to provide the MSP services. These costs are related to the set up and implementation of customer specific MSP programs and are considered incremental and recoverable costs to fulfill the Company’s contract with the customer. These costs are deferred and amortized over the expected period of benefit of the MSP services provided to the customer, determined by taking into consideration its customer contracts and other relevant factors. Amortization expense is included in Selling, administrative and other operating costs on the Consolidated Statements of Operations. Deferred fulfillment costs were immaterial as of November 1, 2020 and November 3, 2019. Economic Factors The Company's operations are subject to variations in the economic condition and regulatory environment in their jurisdictions of operations. Adverse economic conditions may severely reduce the demand for the Company’s services and directly impact the revenue. In addition, the Company faces risks in complying with various legal requirements and unpredictable changes in both U.S. and foreign regulations which may have a financial impact on the business and operations. The global spread of COVID-19 has created significant volatility, uncertainty and global macroeconomic disruption. This was due to related government actions, non-governmental agency recommendations and public perceptions and disruption in global economic and labor market conditions. Our business, results of operations and financial condition have been and may continue to be adversely impacted by the coronavirus pandemic and future adverse impacts could be material and are difficult to predict.
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Restricted Cash and Short-Term Investments |
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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 MSP 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, where contractually required. At November 1, 2020 and November 3, 2019 restricted cash included $9.2 million and $9.3 million, respectively, restricted for payment to associate vendors and $0.5 million and $0.5 million, respectively, restricted for other collateral accounts. At November 1, 2020, restricted cash also included $8.2 million restricted under the Company’s long-term accounts receivable securitization program (“DZ Financing Program”) with DZ Bank AG Deutsche Zentral-Genossenschaftsbank (“DZ Bank”). This cash was restricted as it supplemented collateral provided by accounts receivable towards the Company’s aggregate borrowing base usage of $84.5 million, inclusive of $60.0 million outstanding and $24.5 million in issued letters of credit as of November 1, 2020. At November 1, 2020 and November 3, 2019, short-term investments were $2.9 million and $3.0 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.
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Fair Value of Financial Instruments |
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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):
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 November 1, 2020 and November 3, 2019.
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Trade Accounts Receivable |
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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. Unbilled receivables represent accrued revenue earned and recognized on contracts for which billings have not yet been presented to the customer. At November 1, 2020 and November 3, 2019, trade accounts receivable included unbilled receivables of $3.2 million and $7.7 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 in the Consolidated Statement of Operations. The Company also maintains a sales allowance for specific customers related to 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. As required under ASC 606, the Company changed its presentation to show this sales allowance as a liability, which is included in Accrued insurance and other in the Consolidated Balance Sheet. For the years ended November 1, 2020 and November 3, 2019, the activity in the allowance accounts were as follows (in thousands):
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Property, Equipment and Software |
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Property, Equipment and Software | Property, Equipment and Software Property, equipment and software consisted of (in thousands):
Depreciation and amortization expense totaled $8.0 million and $7.0 million for the fiscal years ended 2020 and 2019, respectively. Depreciation and amortization is included in Cost of services and Selling, administrative and other operating costs in the Consolidated Statements of Operations.
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Impairment Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment Charges | Impairment Charges Long-lived Assets Long-lived assets primarily consist of right-of-use assets, capitalized software costs, leasehold improvements and office equipment. The Company reviews these assets for impairment under ASC 360 Property, Plant and Equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset (if any) are less than the carrying value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on discounted cash flow analysis or other valuation techniques. Due to the economic impact and continued uncertainty related to the COVID-19 pandemic, certain real estate rationalization decisions were made in the second half of fiscal 2020 resulting in the Company consolidating and exiting certain leased office locations throughout North America based on where the Company could be fully operational and successfully support its clients and business operations remotely. The changes in the use of these right-of-use assets triggered an impairment review and based on the results of this review, the Company recorded an impairment charge of $16.1 million to reduce the carrying value of these assets to their estimated fair value. Significant assumptions used to estimate fair value were the current economic environment, real estate market conditions and general market participant assumptions. The Company also recorded impairment charges of $0.8 million primarily related to the leasehold improvements and office equipment associated with these closed facilities. Impairment charges incurred in fiscal 2020 were $1.9 million for the North American Staffing segment and $15.0 million for the Corporate and Other category. In fiscal 2019, there was a $0.3 million impairment of equipment used in the customer care solutions business, which was exited in June 2019. In addition, the Company recorded a $0.3 million impairment charge for previously purchased software that will no longer be used, as well as a $0.1 million impairment charge on equipment from closed facilities. 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 2020 test performed in the second quarter, the Company 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 15.0%. 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 2020, it was determined that no adjustment to the carrying value of goodwill as required as our Step 1 analysis resulted in the fair value of the reporting unit exceeding its carrying value. The following represents the change in the carrying amount of goodwill during each fiscal year (in thousands):
The Company incurred total restructuring and severance costs of $2.6 million and $4.7 million for fiscal 2020 and 2019, respectively. 2020 Restructuring Plan In the first quarter of fiscal 2020, the Company approved a restructuring plan (the “2020 Plan”) as part of its strategic initiative to optimize the Company’s cost infrastructure. The 2020 Plan leveraged the global capabilities of the Company's staffing operations based in Bangalore, India and off-shored a significant number of strategically identified roles to this location. The total costs incurred in fiscal 2020 in connection with the 2020 Plan were $1.2 million, consisting of $0.1 million in North American Staffing, $0.1 million in International Staffing and $1.0 million in the Corporate and Other category. 2018 Restructuring Plan In October 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 restructuring charges comprised of severance and benefit costs and facility and lease termination costs. The 2018 Plan was completed by the end of fiscal 2019. The total costs since inception through November 3, 2019 were approximately $5.6 million, consisting of $1.1 million in North American Staffing, $0.4 million in International Staffing and $4.1 million in Corporate and Other. Change in Executive Management Effective June 6, 2018, Michael 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 was paid over a period of 24 months. Effective August 23, 2019, Paul Tomkins stepped down from his role as Senior Vice President and Chief Financial Officer of the Company. The Company and Mr. Tomkins subsequently executed a separation agreement, effective September 11, 2019. The Company incurred related severance costs of $0.9 million in the fourth quarter of fiscal 2019, which was paid over a period of 12 months beginning November 2019. Exit of Customer Care Solutions Business In June 2019, the Company exited its customer care solutions business, which was reported as a part of the Corporate and Other category. This exit enabled the Company to further strengthen its focus on its core staffing business, align its resources to streamline operations, improve cost competitiveness and increase profitability. As a result of this exit, the Company incurred restructuring and severance costs of $2.1 million during fiscal 2019. Other Restructuring Costs During fiscal 2020 and 2019, there were other restructuring actions taken by the Company as part of its continued efforts to reduce costs and to offset COVID-19 related revenue losses. The Company recorded severance costs of $1.3 million and $0.7 million, respectively, primarily resulting from the elimination of certain positions. The following tables present the restructuring and severance and benefit costs for the twelve months ended November 1, 2020 and November 3, 2019 (in thousands):
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 November 1, 2020 and November 3, 2019 are summarized as follows (in thousands):
Upon adoption of ASC 842 Leases, $2.0 million of accrued restructuring related to the exit of leased real estate was reclassified as a reduction to the related ROU asset, per the accounting guidance. The remaining balance as of November 1, 2020 of $0.2 million, primarily related to other restructuring costs in the North American Staffing and International Staffing segments.
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Restructuring and Severance Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Severance Charges | Impairment Charges Long-lived Assets Long-lived assets primarily consist of right-of-use assets, capitalized software costs, leasehold improvements and office equipment. The Company reviews these assets for impairment under ASC 360 Property, Plant and Equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset (if any) are less than the carrying value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on discounted cash flow analysis or other valuation techniques. Due to the economic impact and continued uncertainty related to the COVID-19 pandemic, certain real estate rationalization decisions were made in the second half of fiscal 2020 resulting in the Company consolidating and exiting certain leased office locations throughout North America based on where the Company could be fully operational and successfully support its clients and business operations remotely. The changes in the use of these right-of-use assets triggered an impairment review and based on the results of this review, the Company recorded an impairment charge of $16.1 million to reduce the carrying value of these assets to their estimated fair value. Significant assumptions used to estimate fair value were the current economic environment, real estate market conditions and general market participant assumptions. The Company also recorded impairment charges of $0.8 million primarily related to the leasehold improvements and office equipment associated with these closed facilities. Impairment charges incurred in fiscal 2020 were $1.9 million for the North American Staffing segment and $15.0 million for the Corporate and Other category. In fiscal 2019, there was a $0.3 million impairment of equipment used in the customer care solutions business, which was exited in June 2019. In addition, the Company recorded a $0.3 million impairment charge for previously purchased software that will no longer be used, as well as a $0.1 million impairment charge on equipment from closed facilities. 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 2020 test performed in the second quarter, the Company 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 15.0%. 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 2020, it was determined that no adjustment to the carrying value of goodwill as required as our Step 1 analysis resulted in the fair value of the reporting unit exceeding its carrying value. The following represents the change in the carrying amount of goodwill during each fiscal year (in thousands):
The Company incurred total restructuring and severance costs of $2.6 million and $4.7 million for fiscal 2020 and 2019, respectively. 2020 Restructuring Plan In the first quarter of fiscal 2020, the Company approved a restructuring plan (the “2020 Plan”) as part of its strategic initiative to optimize the Company’s cost infrastructure. The 2020 Plan leveraged the global capabilities of the Company's staffing operations based in Bangalore, India and off-shored a significant number of strategically identified roles to this location. The total costs incurred in fiscal 2020 in connection with the 2020 Plan were $1.2 million, consisting of $0.1 million in North American Staffing, $0.1 million in International Staffing and $1.0 million in the Corporate and Other category. 2018 Restructuring Plan In October 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 restructuring charges comprised of severance and benefit costs and facility and lease termination costs. The 2018 Plan was completed by the end of fiscal 2019. The total costs since inception through November 3, 2019 were approximately $5.6 million, consisting of $1.1 million in North American Staffing, $0.4 million in International Staffing and $4.1 million in Corporate and Other. Change in Executive Management Effective June 6, 2018, Michael 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 was paid over a period of 24 months. Effective August 23, 2019, Paul Tomkins stepped down from his role as Senior Vice President and Chief Financial Officer of the Company. The Company and Mr. Tomkins subsequently executed a separation agreement, effective September 11, 2019. The Company incurred related severance costs of $0.9 million in the fourth quarter of fiscal 2019, which was paid over a period of 12 months beginning November 2019. Exit of Customer Care Solutions Business In June 2019, the Company exited its customer care solutions business, which was reported as a part of the Corporate and Other category. This exit enabled the Company to further strengthen its focus on its core staffing business, align its resources to streamline operations, improve cost competitiveness and increase profitability. As a result of this exit, the Company incurred restructuring and severance costs of $2.1 million during fiscal 2019. Other Restructuring Costs During fiscal 2020 and 2019, there were other restructuring actions taken by the Company as part of its continued efforts to reduce costs and to offset COVID-19 related revenue losses. The Company recorded severance costs of $1.3 million and $0.7 million, respectively, primarily resulting from the elimination of certain positions. The following tables present the restructuring and severance and benefit costs for the twelve months ended November 1, 2020 and November 3, 2019 (in thousands):
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 November 1, 2020 and November 3, 2019 are summarized as follows (in thousands):
Upon adoption of ASC 842 Leases, $2.0 million of accrued restructuring related to the exit of leased real estate was reclassified as a reduction to the related ROU asset, per the accounting guidance. The remaining balance as of November 1, 2020 of $0.2 million, primarily related to other restructuring costs in the North American Staffing and International Staffing segments.
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Accrued Insurance |
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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 $23.3 million as of November 1, 2020. The Company recognizes expense and establishes accruals for amounts estimated to be incurred, 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 through the ultimate life of the claim. Expense recognized by the Company under its casualty insurance program amounted to $6.4 million and $9.6 million in fiscal 2020 and 2019, 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. To limit exposure on a per claimant basis for the self-insured medical benefits, the Company purchases 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. The Company records the expense associated with the expected losses, net of employee contributions, primarily in Selling, administrative and other operating costs in the Consolidated Statement of Operations, depending on the employee’s role. Expense recognized by the Company under its self-insured medical benefit programs amounted to $4.9 million and $5.4 million in fiscal 2020 and 2019, respectively.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Loss before income taxes is derived from (in thousands):
Income tax provision (benefit) by taxing jurisdiction consists of (in thousands):
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):
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):
At November 1, 2020, the Company has available unused U.S. federal net operating loss (“NOL”) carryforwards of $212.0 million, U.S. state NOL carryforwards of $230.0 million, international NOL carryforwards of $10.3 million and federal tax credits of $54.7 million. As of November 1, 2020, the U.S. federal NOL carryforwards expire at various dates between 2031 and 2038 (with some indefinite), the U.S. state NOL carryforwards expire at various dates beginning in 2021 (with some indefinite), the international NOL carryforwards expire at various dates beginning in 2021 (with some indefinite) and federal tax credits expire between 2021 and 2040. At November 1, 2020, 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 -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 -year cumulative loss continued in fiscal 2020 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 $125.4 million and $123.3 million for fiscal 2020 and 2019, respectively. In reaching this conclusion, the Company considered the U.S. domestic demand and recent operating losses causing the Company to be in a -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):
Of the total unrecognized tax benefits at November 1, 2020 and November 3, 2019, approximately $0.1 million and $0.3 million, respectively, would affect the Company’s effective income tax rate, if and when recognized in future years. There was no amount accrued for related potential interest and penalties at November 1, 2020. The income tax provision for the fiscal years ended November 1, 2020 and November 3, 2019 included a reversal of reserves on uncertain tax provisions of $0.2 million and $0.2 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. Other provisions under the Tax Act which are effective for the Company in fiscal 2019, includes limitations on deductibility of executive compensation and interest, as well as a new minimum tax on Global Intangible Low-Taxed Income (“GILTI”), both of which did not have a material impact on the Company's financial statements.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DebtThe 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 $15.0 million. The Company generally targets minimum global liquidity to be 1.5 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 March 27, 2020, the U.S. government enacted the CARES Act which, among other things, permits the deferral of the employer’s portion of social security tax payments between March 27, 2020 and December 31, 2020. As a result, as of November 1, 2020 approximately $20.5 million of employer payroll tax payments were deferred with 50% due by December 31, 2021 and the remaining 50% by December 31, 2022. Further as a result of the economic repercussions of the COVID-19 pandemic, the Company experienced a reduction in both weekly payroll, vendor and related tax payments of approximately $3.0 million per week. 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, that subsidiary may request that DZ Bank make loans from time-to-time to that subsidiary which are secured by liens on those receivables. On July 19, 2019, the Company amended and restated its long-term DZ Financing Program, which was originally executed on January 25, 2018. The restated agreement allows for the inclusion of certain accounts receivable from an originator in the United Kingdom, which added $5.0 - $7.0 million in borrowing availability. All other material terms and conditions of the original agreement remained substantially unchanged. On January 14, 2020, the Company executed an amendment to the DZ Financing Program. The modifications to the agreement were to (1) extend the Amortization Date, as defined in the DZ Financing Program, from January 25, 2021 to January 25, 2023; (2) extend the Facility Maturity Date, as defined in the DZ Financing Program, from July 25, 2021 to July 25, 2023; and (3) revise an existing covenant to maintain positive net income in any fiscal year ending after 2020. All other terms and conditions remain unchanged. On March 12, 2020, the Company executed an amendment to the DZ Financing Program. The modifications to the agreement were to revise an existing covenant to maintain a Tangible Net Worth (“TNW”), as defined in the DZ Financing Program, from $40.0 million to $35.0 million through the Company’s fiscal quarter ending on or about July 31, 2020 and at least $40.0 million in each quarter thereafter. All other terms and conditions remain unchanged. On June 11, 2020, the Company amended the DZ Financing Program. The modifications to the agreement were to (1) replace an existing TNW covenant requirement, as defined in the DZ Financing Program, to a minimum TNW of $20.0 million through the Company's fiscal quarter ending on or about July 31, 2021 and $40.0 million in each quarter thereafter and (2) reduce the Maximum Facility Amount, as defined in the DZ Financing Program, from $115.0 million to $100.0 million. All other terms and conditions remain unchanged. On October 2, 2020 the Company amended the DZ Financing Program to replace the existing TNW covenant requirement, as defined in the DZ Financing Program, to a minimum TNW of $25.0 million for the Company’s fiscal quarter ending on or about October 31, 2021 and $40.0 million in each quarter thereafter. All other terms and conditions remain unchanged. Loan advances may be made under the DZ Financing Program through January 25, 2023 and all loans will mature no later than July 25, 2023. 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 November 1, 2020, the letter of credit participation was $24.5 million, inclusive of $23.3 million for the Company’s casualty insurance program and $1.2 million for the security deposit required under certain real estate lease agreements. The DZ Financing Program contains customary representations and warranties as well as affirmative and negative covenants. 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 is subject to certain financial and portfolio performance covenants under the DZ Financing Program, including (1) a minimum TNW, as defined in the DZ Financing Program, of $20.0 million through the Company's fiscal quarter ending on or about July 31, 2021, $25.0 million through the Company's fiscal quarter ending on or about October 31, 2021 and at least $40.0 million in each quarter thereafter; (2) positive net income in any fiscal year ending after 2020; (3) maximum debt to tangible net worth ratio of 3:1; and (4) a minimum of $15.0 million in liquid assets, as defined in the DZ Financing Program. At November 1, 2020, there was $2.8 million of borrowing availability, as defined, and the Company was in compliance with all debt covenants. At November 1, 2020 and November 3, 2019, the Company had outstanding borrowings under the DZ Financing Program of $60.0 million and $55.0 million, respectively, with a weighted average annual interest rate of 2.6% and 4.1% during fiscal years 2020 and 2019, respectively. Long-term debt consists of the following (in thousands):
On December 17, 2020, the Company amended the DZ Financing Program. The modifications to the agreement were to (1) extend the Amortization Date, as defined in the DZ Financing Program, from January 25, 2023 to January 25, 2024, and extend the Facility Maturity Date, as defined in the DZ Financing Program, from July 25, 2023 to July 25, 2024; (2) revise an existing covenant to maintain positive net income in any fiscal year ending after 2020 to any fiscal year ending after 2021; (3) replace the existing TNW covenant requirement, as defined in the DZ Financing Program, to a minimum TNW of $20.0 million through the Company’s fiscal quarter ending on or about July 31, 2021 and $25.0 million in each quarter thereafter; and (4) revise the eligibility threshold for the receivables of a large North American Staffing customer from 5% of eligible receivables to 8%, which will increase our overall availability under the Program by $1.0 - $3.0 million. All other terms and conditions of the DZ Financing Program remain substantially unchanged.
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Stockholders' Equity |
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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 2020 or 2019. 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 share-based compensation awards. Activity for the fiscal years ended November 1, 2020 and November 3, 2019 is summarized as follows (in thousands):
(c) Comprehensive Income (Loss) The accumulated balances for each classification of other comprehensive income (loss) are as follows (in thousands):
There were no reclassifications from accumulated other comprehensive loss in fiscal 2020 and 2019.
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Share-Based Compensation Plans |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans For fiscal years 2020 and 2019, the Company recognized share-based compensation expense of $1.4 million and $1.4 million, respectively. These expenses are included in Selling, administrative and other operating costs in the Company’s Consolidated Statements of Operations. 2019 Equity Incentive Plan On May 1, 2019, the stockholders of the Company approved the Company’s 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan permits the granting of (1) stock options, including incentive stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units, (5) performance awards and (6) other awards valued in whole or in part by reference to or otherwise based on our common stock (as defined in the 2019 Plan, “other share-based awards”). Subject to adjustment as provided in the 2019 Plan, up to an aggregate of 2,500,000 shares of the Company’s common stock will be available for awards under the 2019 Plan, plus any shares granted under the Company’s 2015 Equity Incentive Plan that become available for awards under such plan. Fiscal 2020 Awards During fiscal 2020, the Company granted restricted stock units (“RSUs”) to executive management and, due to limited share availability under its long-term incentive plan, issued deferred cash awards to certain employees including executive management. The RSUs and cash awards vest in equal annual tranches over three years, provided the employees remain employed with the Company on the applicable vesting date. The grant date fair value for the RSUs is measured using the closing stock price on the grant date and the total grant date fair value was $0.7 million. The deferred cash awards totaled $2.2 million. In addition, due to limited share availability, cash payments in the aggregate amount of $0.4 million were made in lieu of equity awards to non-executive directors of the Company. Fiscal 2019 Awards During fiscal 2019, the Company granted performance stock units (“PSUs”) to executive management, RSUs to certain employees including executive management and its annual equity grant of RSUs to the Board of Directors. The PSUs are eligible to vest in equal tranches at the end of each performance period. Vesting of the PSUs is dependent on the achievement of the adjusted Earnings Before Interest, Taxes, Depreciation and Amortization margin percentage goals based on adjusted revenues at the end of each fiscal year of the -year, -year and -year performance periods and provided that the employees remain employed with the Company on the applicable vesting date. The payout percentages can range from 0% to 150%. The RSUs for the employees vest in equal annual tranches over three years, provided the employees remain employed with the Company on the applicable vesting date. The RSUs for the Board of Directors vest one year from the grant date provided that the director provides continued service through the vesting date. The grant date fair value for the PSUs and RSUs is measured using the closing stock price on the grant date. The PSUs and RSUs had a total grant date fair value of approximately $1.2 million and $2.1 million, respectively. Summary of Equity and Liability Awards The following tables summarize the activities related to the Company’s share-based equity and liability awards for the fiscal year ended November 1, 2020 and November 3, 2019:
For the year ended November 1, 2020, there was no exercise of stock options. As of November 1, 2020 total unrecognized compensation expense of $1.3 million related to PSUs, stock options and RSUs will be recognized over the remaining weighted average vesting period of 2.0 years, of which $0.9 million, $0.3 million and $0.1 million is expected to be recognized in fiscal 2021, 2022 and 2023, respectively.
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Earnings (Loss) Per Share |
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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):
The fiscal 2020 diluted earnings per share did not include the effect of potentially dilutive outstanding shares comprised of 976,180 RSUs, 331,944 of stock options and 209,662 PSUs because the effect would have been anti-dilutive. The fiscal 2019 diluted earnings per share did not include the effect of potentially dilutive outstanding shares comprised of 667,082 RSUs, 603,484 of stock options and 376,986 PSUs because the effect would have been anti-dilutive.
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Related Party Transactions |
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Nov. 01, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsFor fiscal 2020, the Company provided staffing services in the aggregate amount of $175,000 to a company where Volt's Chairman of the Board, William J. Grubbs, serves as President. |
Commitments and Contingencies |
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Nov. 01, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a)Leases - refer to footnote 2 (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 As previously disclosed in the Annual Report on Form 10-K for the year ended October 28, 2018, 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 has obtained the approval from the Internal Revenue Service regarding the method for curing the failures and made a contribution of $0.8 million in the fourth quarter of fiscal 2019.
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Segment Disclosures |
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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. 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. In June 2019, the Company exited its customer care solutions business, which was reported as a part of the Corporate and Other category. This exit allowed the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. The Company’s other non-reportable businesses continued to be combined and disclosed with corporate services under the category Corporate and Other. Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, 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):
(1) Revenues are primarily derived from Volt Customer Care Solutions business through June 7, 2019. (2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions business. Assets of the Company by reportable segment are summarized in the following table (in thousands):
Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands):
Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands):
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Quarterly Financial Information (unaudited) |
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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 November 1, 2020 and November 3, 2019 (in thousands, except per share amounts):
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Summary of Business and Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Fiscal Year | Fiscal YearThe Company’s fiscal year ends on the Sunday nearest October 31st. The fiscal year 2020 consisted of 52 weeks and fiscal 2019 consisted of 53 weeks. | ||||||||||||||||||||||||||||||
Consolidation | ConsolidationThe 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 EstimatesThe 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, share-based 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 recognized when control of the promised services is transferred to the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The majority of customer contracts have performance obligations that the Company satisfies over time and revenue is recognized by consistently applying a method of measuring progress toward satisfaction of that performance obligation. The Company will generally utilize an input measure of time (e.g., hours, weeks, months) of service provided, which depicts the progress toward completion of each performance obligation. Certain customer contracts have variable consideration, including rebates, guarantees, credits, or other similar items that reduce the transaction price. The Company will generally estimate the variable consideration using the expected value method to predict the amount of consideration to which it will become entitled, based on the circumstances of each customer contract and historical evidence. Revenue is recognized net of variable consideration to the extent that it is probable that a significant future reversal will not occur. In scenarios where a third-party vendor is involved in the Company's revenue transactions with its customers, the Company will evaluate whether it is the principal or the agent in the transaction. When Volt acts as the principal, it controls the performance obligation prior to transfer of the service to the customer and reports the related consideration as gross revenues and the costs as cost of services. When Volt acts as an agent, it does not control the performance obligation prior to transfer of the service to the customer and it reports the related amounts as revenue on a net basis. Revenue Recognition All of the Company’s revenue and trade receivables are generated from contracts with customers. Revenue is recognized when control of the promised services is transferred to the Company’s customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company’s revenue is recorded net of any sales or other similar taxes collected from its customers. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The majority of the Company’s contracts contain single performance obligations. For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward satisfaction of that performance obligation. The Company will generally utilize an input measure of time (e.g., hours, weeks, months) of service provided, which depicts the progress toward completion of each performance obligation. Volt generally determines the standalone selling prices based on the prices included in the customer contracts. The price as specified in its customer contracts is typically considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar customer. Certain customer contracts have variable consideration, including rebates, guarantees, credits, or other similar items that reduce the transaction price. The Company will generally estimate the variable consideration using the expected value method to predict the amount of consideration to which it will become entitled, based on the circumstances of each customer contract and historical evidence. Revenue is recognized net of variable consideration to the extent that it is probable that a significant future reversal will not occur. The Company’s estimated amounts of variable consideration are not material and it does not believe that there will be significant changes to its estimates. In certain scenarios where a third-party vendor is involved in the Company’s revenue transactions with its customers, the Company will evaluate whether it is the principal or the agent in the transaction. When Volt acts as the principal, it controls the performance obligation prior to transfer of the service to the customer and reports the related consideration as gross revenues and the costs as cost of services. When Volt acts as an agent, it does not control the performance obligation prior to transfer of the service to the customer and it reports the related amounts as revenue on a net basis. The Company generally demonstrates control over the service when it is responsible for the fulfillment of services under the contract, responsible for the workers performing the service and when it has latitude in establishing pricing. Volt generally acts as an agent in its transactions within its MSP programs where the Company provides comprehensive management of its customer’s contingent workforce and receive fees based on the volume of services managed within each program. The Company is the agent in these transactions since it does not have the responsibility for the fulfillment of the services by the vendors or contractors (referred to as associate vendors). In these transactions, the Company does not control the third-party providers’ staffing services provided to the customers prior to those services being transferred to the customer. Revenue Service Types Staffing Services Volt’s primary service is providing contingent (temporary) workers to its customers. These services are primarily provided through direct agreements with customers and Volt provides these services using its employees and, in some cases, by subcontracting with other vendors of contingent workers. Volt’s costs in providing these services consist of the wages and benefits provided to the contingent workers as well as the recruiting costs, payroll department costs and other administrative costs. The Company recognizes revenue for its contingent staffing services over time as services are performed in an amount that reflects the consideration it expects to be entitled to in exchange for its services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The customer simultaneously receives and consumes the benefits of the services as they are provided. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Direct Placement Services Direct placement services include providing qualified candidates to the Company’s customers to hire on a permanent basis. These services are primarily recognized at a point in time when the qualified candidate is placed and begins permanent employment which is the point when control has transferred to the customer and the Company has the right to payment for the service. Each placement is a single performance obligation under the Company’s contracts and the related consideration is typically based upon a percentage of the candidates’ base salary. Direct placement revenue is recognized net of a reserve for permanent placement candidates that do not remain with the customer through the contingency period, which is typically 60 days or less. This contingency is estimated based on historical data and recorded as a refund liability. Managed Service Programs (“MSP”) The Company’s MSP programs provide comprehensive solutions for delivery of contingent labor for assignment to customers, including supplier and worker sourcing, selecting, qualifying, on/off-boarding, time and expense recordation, reporting and approved invoicing and payment processing procedures. Since the individual activities are not distinct, the Company accounts for these activities as a single performance obligation. The Company’s fee for these MSP services is a fixed percentage of the staffing services spend that is managed through the program. The Company recognizes revenue over time for each month of MSP services provided as the customer simultaneously receives and consumes the services the Company provides. The Company applies the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it has the right to invoice the customer. Call Center Services The customer care solutions business through June 2019 specialized in serving as an extension of its customers’ relationships and processes, from help desk inquiries to advanced technical support. The Company earned a fee based upon the type, volume and level of services provided as part of the call center operations. Since the individual activities are not distinct, the Company accounted for them as a single performance obligation. The Company recognized revenue over time as the customer simultaneously received and consumed the services the Company provided. The Company applied the practical expedient to recognize revenue for these services over the term of the agreement commensurate to the amount it had the right to invoice the customer.
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Expense Recognition | Expense Recognition Cost of Services Cost of 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 costs are 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. Gross margin is calculated as revenue less cost of 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 services.
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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 EquivalentsThe 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, NetThe 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 both on-premise and cloud computing 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:
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.
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Leases | Leases The Company adopted Accounting Standards Codification (“ASC”) 842, Leases in the first quarter of fiscal 2020. As such, the Company implemented new accounting policies and recognized assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. Refer to Note 2: Leases for a description of the accounting policies. | ||||||||||||||||||||||||||||||
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.
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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.
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Share-Based Compensation | Share-Based CompensationThe 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 is 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 share-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 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: impairment testing using level 3 inputs for goodwill, right-of-use (“ROU”) assets as well as other 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 and accounts payable, approximated their fair values due to the short-term nature of these instruments. 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 and is classified as a Level 2 in the fair value hierarchy. 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.
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Legal and Other Contingencies | Legal and Other ContingenciesThe 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 RiskCash 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 Costs | Restructuring and Severance CostsThe 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 StockThe 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. | ||||||||||||||||||||||||||||||
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 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The Company intends to apply ASU 2020-04 in the first quarter of fiscal 2021 and does not anticipate a significant impact on its consolidated financial statements upon adoption. In August 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 on the consolidated financial statements upon adoption. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), as clarified in ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2018-19, amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. The amendments are effective for fiscal years beginning after December 15, 2022, which for the Company will be the first quarter of fiscal 2024. 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. 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 by the Company In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 18): 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. ASU 2018-07 was effective for the Company in the first quarter of fiscal 2020 and the adoption of this guidance had no impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU 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. This ASU was effective in the first quarter of fiscal 2020 resulting in the Company recording ROU assets and lease liabilities on the consolidated balance sheet. The adoption of this standard did not have a material impact on the consolidated financial statements of operations and consolidated statements of cash flows. For the impact on the Company's consolidated financial statements, refer to Note 2 - Leases. All other ASUs that became effective for Volt for fiscal 2020 were not applicable to the Company at this time and therefore, did not have any impact during the period.
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Summary of Business and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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:
Property, equipment and software consisted of (in thousands):
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense |
(1) Approximately $0.3 million of lease expense is included in restructuring. (2) The Company has minimal short-term lease expense.
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Schedule of Weighted-Average Information |
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Schedule of Operating Lease Maturities under Topic 842 | Maturities of operating lease liabilities as of November 1, 2020 were as follows (in thousands):
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Schedule of Operating Lease Maturities under Topic 840 | Maturities of operating leases accounted for under ASC 840 as of fiscal year-end 2019 were as follows (in thousands):
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Revenues Disaggregated by Service Type | The following table presents the Company's segment revenues disaggregated by service type (in thousands):
(1) Includes the revenues from Volt's Customer Care Solutions business through the time of exit in June 2019.
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Fair Value of Financial Instruments (Tables) |
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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):
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Trade Accounts Receivable (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity in Allowance Accounts | For the years ended November 1, 2020 and November 3, 2019, the activity in the allowance accounts were as follows (in thousands):
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Property, Equipment and Software (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Equipment and Software | The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following:
Property, equipment and software consisted of (in thousands):
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Impairment Charges (Tables) |
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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):
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Restructuring and Severance Charges (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Severance Costs | The following tables present the restructuring and severance and benefit costs for the twelve months ended November 1, 2020 and November 3, 2019 (in thousands):
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Schedule of Restructuring and Severance Costs included in Accrued Compensation and Accrued Insurance | Activity for the fiscal years ended November 1, 2020 and November 3, 2019 are summarized as follows (in thousands):
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loss before Domestic and Foreign Income Tax | Loss before income taxes is derived from (in thousands):
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Schedule of Components of Income Tax Expense (Benefit) | Income tax provision (benefit) by taxing jurisdiction consists of (in thousands):
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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):
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Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
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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):
|
Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consists of the following (in thousands):
|
Stockholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Treasury Stock Value Activity | Activity for the fiscal years ended November 1, 2020 and November 3, 2019 is summarized as follows (in thousands):
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Schedule of 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):
|
Share-Based Compensation Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award Activity | The following tables summarize the activities related to the Company’s share-based equity and liability awards for the fiscal year ended November 1, 2020 and November 3, 2019:
|
Earnings (Loss) Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule 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):
|
Segment Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 01, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule 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):
(1) Revenues are primarily derived from Volt Customer Care Solutions business through June 7, 2019. (2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions business.
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Schedule of Assets by Reportable Segment | Assets of the Company by reportable segment are summarized in the following table (in thousands):
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Schedule 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):
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Schedule 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):
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Quarterly Financial Information (unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Selected Consolidated Statements of Operations Data | The following tables present certain unaudited consolidated quarterly financial information for each quarter in the fiscal years ended November 1, 2020 and November 3, 2019 (in thousands, except per share amounts):
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Summary of Business and Significant Accounting Policies - Major Classifications and Expected Useful Lives of Property, Equipment and Software (Details) |
12 Months Ended |
---|---|
Nov. 01, 2020 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 25 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 32 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 15 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, equipment and software | 7 years |
Leases - Components of Lease Expense (Details) $ in Thousands |
12 Months Ended |
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Nov. 01, 2020
USD ($)
| |
Leases [Abstract] | |
Operating lease expense | $ 10,990 |
Sublease income | (1,577) |
Variable lease expense | 760 |
Total | 10,173 |
Lease expense included in restructuring expense | $ 300 |
Leases - Weighted Average Lease Information (Details) |
Nov. 01, 2020 |
---|---|
Leases [Abstract] | |
Weighted average remaining lease term (years) | 7 years 11 months 19 days |
Weighted average discount rate (as a percent) | 6.30% |
Leases - Lease Maturities (Details) - USD ($) $ in Thousands |
Nov. 01, 2020 |
Nov. 04, 2019 |
Nov. 03, 2019 |
---|---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2021 | $ 9,638 | ||
2022 | 8,073 | ||
2023 | 6,936 | ||
2024 | 5,610 | ||
2025 | 5,255 | ||
Thereafter | 22,895 | ||
Total future lease payments | 58,407 | ||
Less: Imputed interest | 13,031 | ||
Total operating lease liabilities | $ 45,376 | $ 52,000 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2020 | $ 11,782 | ||
2021 | 9,287 | ||
2022 | 7,457 | ||
2023 | 6,328 | ||
2024 | 5,486 | ||
Thereafter | 28,422 | ||
Total future lease payments | $ 68,762 |
Revenue Recognition - Narrative (Details) - USD ($) |
Nov. 01, 2020 |
Nov. 04, 2019 |
Nov. 03, 2019 |
Oct. 28, 2018 |
---|---|---|---|---|
Disaggregation of Revenue [Line Items] | ||||
Stockholders' equity | $ 27,874,000 | $ 36,189,000 | $ 50,499,000 | |
Contract assets | 0 | 0 | ||
Long-term contract liabilities | 0 | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Disaggregation of Revenue [Line Items] | ||||
Stockholders' equity | 22,216,000 | 426,000 | ||
Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Reserve balance | 400,000 | |||
Retained Earnings | ||||
Disaggregation of Revenue [Line Items] | ||||
Stockholders' equity | $ (29,793,000) | (10,917,000) | 9,738,000 | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
Disaggregation of Revenue [Line Items] | ||||
Stockholders' equity | $ 22,200,000 | $ 22,216,000 | 426,000 | |
Retained Earnings | Accounting Standards Update 2014-09 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Disaggregation of Revenue [Line Items] | ||||
Stockholders' equity | $ 400,000 |
Restricted Cash and Short-Term Investments - Narrative (Details) - USD ($) $ in Thousands |
Nov. 01, 2020 |
Nov. 03, 2019 |
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Short-term investments | $ 2,853 | $ 3,022 |
DZ Financing Program | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 8,200 | |
Aggregate borrowing base usage | 84,500 | |
Long-term debt | 60,000 | 55,000 |
Restricted Cash and Short-term Investments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Short-term investments | 2,900 | 3,000 |
Line of Credit and Letters of Credit | Restricted Cash and Short-term Investments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted as collateral | 500 | 500 |
Letter of Credit | DZ Financing Program | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Line of credit, amount outstanding | 24,500 | |
Associated Vendors | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 9,200 | $ 9,300 |
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - Level 1 - USD ($) $ in Thousands |
Nov. 01, 2020 |
Nov. 03, 2019 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 2,853 | $ 3,022 |
Total financial assets | 2,853 | 3,022 |
Deferred compensation plan liabilities | 2,853 | 3,022 |
Total financial liabilities | $ 2,853 | $ 3,022 |
Trade Accounts Receivable - Narrative (Details) - USD ($) $ in Millions |
Nov. 01, 2020 |
Nov. 03, 2019 |
---|---|---|
Receivables [Abstract] | ||
Unbilled receivables included in trade accounts receivable | $ 3.2 | $ 7.7 |
Property, Equipment and Software - Summary (Details) - USD ($) $ in Thousands |
Nov. 01, 2020 |
Nov. 03, 2019 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation and amortization | $ (27,417) | $ (29,757) |
Property and equipment | 4,958 | 4,231 |
Software | 104,002 | 101,903 |
Less: Accumulated amortization | (86,793) | (80,244) |
Property, equipment and software, net | 22,167 | 25,890 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 0 | 375 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 29,832 | 30,215 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 2,543 | $ 3,398 |
Property, Equipment and Software - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 7,981 | $ 6,955 |
Impairment Charges - Carrying Value of Goodwill (Details) - International Staffing - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Goodwill [Roll Forward] | ||
Balance of aggregate goodwill acquired at beginning of period | $ 10,483 | $ 10,483 |
Balance of accumulated impairment losses at beginning of period | (3,733) | (3,733) |
Balance of foreign currency translation adjustment at beginning of period | (1,353) | (1,399) |
Balance of goodwill, net of impairment losses, at beginning of period | 5,397 | 5,351 |
Current period foreign currency translation adjustment | 5 | 46 |
Balance of aggregate goodwill acquired at end of period | 10,483 | 10,483 |
Balance of accumulated impairment losses at end of period | (3,733) | (3,733) |
Balance of foreign currency translation adjustment at end of period | (1,348) | (1,353) |
Balance of goodwill, net of impairment losses, at end of period | $ 5,402 | $ 5,397 |
Restructuring and Severance Charges - Summary of Accrued Restructuring and Severance Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 05, 2019 |
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Restructuring Reserve [Roll Forward] | |||||||||||
Balance at beginning of period | $ 3,845 | $ 5,702 | $ 3,845 | $ 5,702 | |||||||
Cease use liabilities transferred to ROU assets | $ 2,000 | (1,964) | 0 | ||||||||
Charged to expense | $ 438 | $ 546 | $ 411 | $ 1,246 | $ 1,856 | $ 2,017 | $ 724 | $ 59 | 2,641 | 4,656 | |
Cash payments | (4,310) | (6,513) | |||||||||
Balance at end of period | $ 212 | $ 3,845 | $ 212 | $ 3,845 |
Accrued Insurance - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Casualty Insurance Program | ||
Effects of Reinsurance [Line Items] | ||
Recognized insurance expense | $ 6.4 | $ 9.6 |
Medical Insurance Programs | ||
Effects of Reinsurance [Line Items] | ||
Recognized insurance expense | 4.9 | $ 5.4 |
Short Term Financing Program | ||
Effects of Reinsurance [Line Items] | ||
Borrowing base | $ 23.3 |
Income Taxes - Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Income Tax Disclosure [Abstract] | ||||||||||
U.S. Domestic | $ (34,889) | $ (17,529) | ||||||||
International | 2,347 | 3,321 | ||||||||
LOSS BEFORE INCOME TAXES | $ (12,246) | $ (4,281) | $ (5,402) | $ (10,613) | $ (442) | $ (5,892) | $ (4,932) | $ (2,942) | $ (32,542) | $ (14,208) |
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Current: | ||||||||||
U.S. Federal | $ 0 | $ 0 | ||||||||
U.S. State and local | 118 | 6 | ||||||||
International | 938 | 1,060 | ||||||||
Total current | 1,056 | 1,066 | ||||||||
Deferred: | ||||||||||
U.S. State and local | 0 | 4 | ||||||||
International | (11) | (92) | ||||||||
Total deferred | (11) | (88) | ||||||||
Income tax provision | $ 271 | $ 556 | $ 23 | $ 195 | $ 307 | $ 165 | $ 233 | $ 273 | $ 1,045 | $ 978 |
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Income Tax Disclosure [Abstract] | ||||||||||
U.S. Federal statutory rate | $ (6,834) | $ (2,984) | ||||||||
U.S. State income tax, net of U.S. Federal tax benefits | (1,235) | 142 | ||||||||
International permanent differences | 91 | 95 | ||||||||
International tax rate differentials | 232 | 145 | ||||||||
U.S. tax on international income | (705) | 471 | ||||||||
General business credits | (999) | (1,718) | ||||||||
Non-deductible expenses | 66 | 358 | ||||||||
Capital Loss | 3,357 | 0 | ||||||||
Change in valuation allowance for deferred tax assets | 7,072 | 4,469 | ||||||||
Income tax provision | $ 271 | $ 556 | $ 23 | $ 195 | $ 307 | $ 165 | $ 233 | $ 273 | $ 1,045 | $ 978 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Valuation Allowance [Line Items] | ||
Operating loss period | 3 years | |
Net deferred tax assets, valuation allowance | $ 125,396 | $ 123,266 |
Unrecognized tax benefits that would affect effective tax rate | 100 | 300 |
Reversal of reserves on uncertain tax provisions | 200 | $ 200 |
U.S. Federal | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforwards | 212,000 | |
Tax credits | 54,700 | |
U.S. State | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforwards | 230,000 | |
International | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforwards | $ 10,300 | |
Domestic and certain Non-Domestic | ||
Valuation Allowance [Line Items] | ||
Operating loss period | 3 years |
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 283 | $ 491 |
Decreases relating to tax positions taken in a prior period | (3) | (21) |
Settlements | (195) | (146) |
Lapse of statute of limitations | 0 | (41) |
Balance, ending of year | $ 85 | $ 283 |
Debt - Summary (Details) - USD ($) $ in Thousands |
Nov. 01, 2020 |
Nov. 03, 2019 |
---|---|---|
Less: | ||
Deferred financing fees | $ 846 | $ 1,106 |
Total long-term debt, net | 59,154 | 53,894 |
Short Term Financing Program | ||
Debt Instrument [Line Items] | ||
Financing programs | $ 60,000 | $ 55,000 |
Stockholders' Equity - Narrative (Details) |
12 Months Ended | |
---|---|---|
Nov. 01, 2020
USD ($)
vote
$ / shares
shares
|
Nov. 03, 2019
USD ($)
$ / shares
shares
|
|
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 |
Reclassification from accumulated other comprehensive loss | $ | $ 0 | $ 0 |
Stockholders' Equity - Treasury Stock Value Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Schedule Of Treasury Stock Value Activity [Roll Forward] | ||
Balance at beginning of period | $ 36,189 | $ 50,499 |
Shares issued for share-based compensation awards | 977 | (318) |
Balance at end of period | 27,874 | 36,189 |
Treasury Stock | ||
Schedule Of Treasury Stock Value Activity [Roll Forward] | ||
Balance at beginning of period | (26,155) | (33,600) |
Shares issued for share-based compensation awards | 7,969 | 7,445 |
Balance at end of period | $ (18,186) | $ (26,155) |
Stockholders' Equity - Accumulated Balances for Each Classification of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 36,189 | $ 50,499 |
Total other comprehensive income (loss) | 343 | 269 |
Balance at end of period | 27,874 | 36,189 |
November 3, 2019 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (6,801) | (7,070) |
Other comprehensive income (loss) before reclassifications | 343 | 269 |
Total other comprehensive income (loss) | 343 | 269 |
Balance at end of period | $ (6,458) | $ (6,801) |
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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Numerator | ||||||||||
Net loss | $ (12,517) | $ (4,837) | $ (5,425) | $ (10,808) | $ (749) | $ (6,057) | $ (5,165) | $ (3,215) | $ (33,587) | $ (15,186) |
Denominator | ||||||||||
Basic weighted average number of shares (shares) | 21,607 | 21,589 | 21,416 | 21,416 | 21,157 | 21,157 | 21,082 | 21,080 | 21,507 | 21,119 |
Dilutive weighted average number of shares (shares) | 21,607 | 21,589 | 21,416 | 21,416 | 21,157 | 21,157 | 21,082 | 21,080 | 21,507 | 21,119 |
Per Share Data, Basic: | ||||||||||
Net Income (loss) (USD per share) | $ (0.58) | $ (0.22) | $ (0.25) | $ (0.50) | $ (0.04) | $ (0.29) | $ (0.24) | $ (0.15) | $ (1.56) | $ (0.72) |
Per Share Data, Diluted: | ||||||||||
Net Income (loss) (USD per share) | $ (0.58) | $ (0.22) | $ (0.25) | $ (0.50) | $ (0.04) | $ (0.29) | $ (0.24) | $ (0.15) | $ (1.56) | $ (0.72) |
Earnings (Loss) Per Share (Details) - shares |
12 Months Ended | |
---|---|---|
Nov. 01, 2020 |
Nov. 03, 2019 |
|
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS (shares) | 976,180 | 667,082 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS (shares) | 331,944 | 603,484 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS (shares) | 209,662 | 376,986 |
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Related Party Transaction [Line Items] | ||||||||||
Staffing services, aggregate amount | $ 211,073 | $ 185,941 | $ 207,275 | $ 217,766 | $ 258,408 | $ 233,176 | $ 252,070 | $ 253,436 | $ 822,055 | $ 997,090 |
Staffing Services | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Staffing services, aggregate amount | 791,163 | $ 950,595 | ||||||||
Related Party | Staffing Services | Chairman of the Board | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Staffing services, aggregate amount | $ 175 |
Commitments and Contingencies (Details) $ in Millions |
3 Months Ended |
---|---|
Nov. 03, 2019
USD ($)
| |
Unfavorable Regulatory Action | |
Loss Contingencies [Line Items] | |
Loss contingency contribution | $ 0.8 |
Segment Disclosures - Summary of Assets by Reportable Operating Segment (Details) - USD ($) $ in Thousands |
Nov. 01, 2020 |
Nov. 03, 2019 |
---|---|---|
ASSETS | ||
Total Assets | $ 241,845 | $ 218,004 |
Operating Segments | North American Staffing | ||
ASSETS | ||
Total Assets | 105,516 | 109,067 |
Operating Segments | International Staffing | ||
ASSETS | ||
Total Assets | 26,989 | 30,327 |
Operating Segments | North American MSP | ||
ASSETS | ||
Total Assets | 24,742 | 19,196 |
Corporate and Other | ||
ASSETS | ||
Total Assets | $ 84,598 | $ 59,414 |
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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Net Revenue: | ||||||||||
Net revenue | $ 211,073 | $ 185,941 | $ 207,275 | $ 217,766 | $ 258,408 | $ 233,176 | $ 252,070 | $ 253,436 | $ 822,055 | $ 997,090 |
Long-Lived Assets: | ||||||||||
Total Long-Lived Assets | 47,274 | 25,890 | 47,274 | 25,890 | ||||||
Domestic | ||||||||||
Net Revenue: | ||||||||||
Net revenue | 722,985 | 878,095 | ||||||||
Long-Lived Assets: | ||||||||||
Total Long-Lived Assets | 44,500 | 24,525 | 44,500 | 24,525 | ||||||
International | ||||||||||
Net Revenue: | ||||||||||
Net revenue | 99,070 | 118,995 | ||||||||
Long-Lived Assets: | ||||||||||
Total Long-Lived Assets | $ 2,774 | $ 1,365 | $ 2,774 | $ 1,365 |
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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2020 |
Aug. 02, 2020 |
May 03, 2020 |
Feb. 02, 2020 |
Nov. 03, 2019 |
Jul. 28, 2019 |
Apr. 28, 2019 |
Jan. 27, 2019 |
Nov. 01, 2020 |
Nov. 03, 2019 |
|
Condensed Financial Information Disclosure [Abstract] | ||||||||||
NET REVENUE | $ 211,073 | $ 185,941 | $ 207,275 | $ 217,766 | $ 258,408 | $ 233,176 | $ 252,070 | $ 253,436 | $ 822,055 | $ 997,090 |
Cost of services | 176,844 | 155,983 | 175,038 | 186,339 | 215,449 | 197,528 | 215,813 | 215,737 | 694,204 | 844,527 |
GROSS MARGIN | 34,229 | 29,958 | 32,237 | 31,427 | 42,959 | 35,648 | 36,257 | 37,699 | 127,851 | 152,563 |
Selling, administrative and other operating costs | 30,735 | 31,245 | 36,189 | 39,497 | 39,908 | 38,395 | 38,939 | 39,810 | 137,666 | 157,052 |
Restructuring and severance costs | 438 | 546 | 411 | 1,246 | 1,856 | 2,017 | 724 | 59 | 2,641 | 4,656 |
Impairment charges | 14,518 | 2,384 | 0 | 11 | 262 | 79 | 347 | 0 | 16,913 | 688 |
Operating income (loss) | (11,462) | (4,217) | (4,363) | (9,327) | 933 | (4,843) | (3,753) | (2,170) | (29,369) | (9,833) |
Interest income | 8 | 9 | 31 | 30 | 66 | 87 | 66 | 55 | 78 | 274 |
Interest expense | (439) | (476) | (652) | (730) | (789) | (801) | (765) | (801) | (2,297) | (3,156) |
Foreign exchange gain (loss), net | (62) | 571 | (266) | (328) | (360) | (151) | (314) | 213 | (85) | (612) |
Other income (expense), net | (291) | (168) | (152) | (258) | (292) | (184) | (166) | (239) | (869) | (881) |
LOSS BEFORE INCOME TAXES | (12,246) | (4,281) | (5,402) | (10,613) | (442) | (5,892) | (4,932) | (2,942) | (32,542) | (14,208) |
Income tax provision | 271 | 556 | 23 | 195 | 307 | 165 | 233 | 273 | 1,045 | 978 |
NET LOSS | $ (12,517) | $ (4,837) | $ (5,425) | $ (10,808) | $ (749) | $ (6,057) | $ (5,165) | $ (3,215) | $ (33,587) | $ (15,186) |
Basic: | ||||||||||
Net loss (USD per share) | $ (0.58) | $ (0.22) | $ (0.25) | $ (0.50) | $ (0.04) | $ (0.29) | $ (0.24) | $ (0.15) | $ (1.56) | $ (0.72) |
Weighted average number of shares (shares) | 21,607 | 21,589 | 21,416 | 21,416 | 21,157 | 21,157 | 21,082 | 21,080 | 21,507 | 21,119 |
Diluted: | ||||||||||
Net loss (USD per share) | $ (0.58) | $ (0.22) | $ (0.25) | $ (0.50) | $ (0.04) | $ (0.29) | $ (0.24) | $ (0.15) | $ (1.56) | $ (0.72) |
Weighted average number of shares (shares) | 21,607 | 21,589 | 21,416 | 21,416 | 21,157 | 21,157 | 21,082 | 21,080 | 21,507 | 21,119 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |
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