XML 26 R14.htm IDEA: XBRL DOCUMENT v3.3.1.900
INCOME TAXES
3 Months Ended
Jan. 31, 2016
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE 7 - INCOME TAXES
 
The effective tax rate differs from the U.S. statutory rate of 35% in the three month periods ended January 31, 2016 and February 1, 2015, primarily due to earnings being taxed at lower statutory rates in foreign jurisdictions, combined with the benefit of various investment credits in a foreign jurisdiction. Valuation allowances in jurisdictions with historic losses eliminate the effective rate impact of these jurisdictions.
 
Unrecognized tax benefits related to uncertain tax positions were $4.1 million at January 31, 2016 and at November 1, 2015, all of which would favorably impact the Company's effective tax rate if recognized. Accrued interest and penalties related to unrecognized tax benefits was $0.1 million at January 31, 2016 and November 1, 2015. As of January 31, 2016, the total amount of unrecognized tax benefits is not expected to significantly increase or decrease in the next twelve months.

PKLT, the Company's FPD manufacturing facility in Taiwan, has been accorded a tax holiday, which started in 2012 and expires in 2017. This tax holiday had no dollar or per share effect in the three month periods ended January 31, 2016 and February 1, 2015. PDMC, the Company’s IC manufacturing facility in Taiwan was accorded a tax holiday that commenced in 2015 and expires in 2019. The Company realized $0.1 million in tax benefits from this tax holiday in each of the three month periods ended January 31, 2016 and February 1, 2015. The tax holiday had no per share effect in the three month periods ended January 31, 2016 and February 1, 2015.