INCOME TAXES (Tables)

12 Months Ended

Oct. 30, 2016

Schedule of components of income tax expense (benefit)

The income tax provision for the fiscal years ended 2016, 2015 and 2014, consisted of the following (in thousands):



	Fiscal Year Ended
	October 30, 2016			November 1, 2015			November 2, 2014
Current:
Federal	$	22,602		$	12,366		$	3,919
State	3,179			336			1,016
Foreign	838			1,638			516
Total current	26,619			14,340			5,451
Deferred:
Federal	105			(5,193		)	(198		)
State	1,380			91			(319		)
Foreign	(167		)	(266		)	(3,444		)
Total deferred	1,318			(5,368		)	(3,961		)
Total provision	$	27,937		$	8,972		$	1,490

Schedule of effective income tax rate reconciliation

The reconciliation of income tax computed at the United States federal statutory tax rate to the effective income tax rate is as follows:



	Fiscal Year Ended
	October 30, 2016		November 1, 2015		November 2, 2014
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes	3.8	%	1.6	%	4.6	%
Production activities deduction	(3.4	)%	(6.4	)%	(3.7	)%
Canadian valuation allowance	—	%	—	%	(23.3	)%
Non-deductible expenses	1.3	%	4.1	%	7.0	%
Uncertain tax position adjustment	—	%	—	%	(2.4	)%
Foreign tax benefit	—	%	—	%	(4.5	)%
Other	(1.3	)%	(0.8	)%	(0.9	)%
Effective tax rate	35.4	%	33.5	%	11.8	%

Tax effect of temporary differences

The tax effects of the temporary differences for fiscal 2016 and 2015 are as follows (in thousands):



	October 30, 2016			November 1, 2015
Deferred tax assets:
Inventory obsolescence	$	2,195		$	2,302
Bad debt reserve	1,094			1,044
Accrued and deferred compensation	22,339			22,203
Accrued insurance reserves	2,054			1,464
Deferred revenue	10,440			9,811
Net operating loss and tax credit carryover	4,301			4,512
Depreciation and amortization	473			60
Pension	6,568			5,770
Other reserves	502			1,098
Total deferred tax assets	49,966			48,264
Less valuation allowance	(210		)	(115		)
Net deferred tax assets	49,756			48,149
Deferred tax liabilities:
Depreciation and amortization	(44,292		)	(39,708		)
U.S. tax on unremitted foreign earnings	(1,107		)	(1,106		)
Other	(58		)	(797		)
Total deferred tax liabilities	(45,457		)	(41,611		)
Total deferred tax asset, net	$	4,299		$	6,538

Rollforward of valuation allowance on deferred tax activity

The following table represents the rollforward of the valuation allowance on deferred taxes activity for the fiscal years ended October 30, 2016, November 1, 2015 and November 2, 2014 (in thousands):



	October 30, 2016		November 1, 2015		November 2, 2014
Beginning balance	$	115	$	—	$	4,046
(Reductions) additions	95		115		(4,046		)
Ending balance	$	210	$	115	$	—

Schedule of unrecognized tax benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits during fiscal 2016 and 2015 (in thousands):



	October 30, 2016			November 1, 2015
Unrecognized tax benefits at beginning of year	$	143		$	143
Additions for tax positions related to prior years	—			—
Reductions resulting from expiration of statute of limitations	(143		)	—
Unrecognized tax benefits at end of year	$	—		$	143