UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	For the quarterly period ended July ~~31, 2016~~30, 2017


¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	For the transition period from to .

Commission File Number: 001-09232

VOLT INFORMATION SCIENCES, INC.

(Exact name of registrant as specified in its charter)



New York	13-5658129
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1133 Avenue of Americas, New York, New York	10036
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(212) 704-2400

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer ¨	Accelerated filer x	Non-accelerated filer ¨	Smaller reporting company ¨	Emerging growth company ¨

				(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x

As of September ~~2, 2016,~~1, 2017, there were ~~20,894,383~~21,009,951 shares of common stock outstanding.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(unaudited)

Three Months Ended Nine Months Ended
July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015

REVENUE:
Staffing services revenue $ 313,428
$ 341,383
$ 939,356
$ 1,064,481
Other revenue 17,062
23,285
53,403
68,442
NET REVENUE 330,490
364,668
992,759
1,132,923

EXPENSES:
Direct cost of staffing services revenue 266,684
287,554
798,682
900,909
Cost of other revenue 15,110
19,696
47,785
59,210
Selling, administrative and other operating costs 49,712
58,025
154,019
178,227
Restructuring and severance costs 970
1,867
4,571
3,093
Impairment charges —
580
—
5,954
Gain on sale of building —
—
(1,663 ) —
TOTAL EXPENSES 332,476
367,722
1,003,394
1,147,393

OPERATING LOSS (1,986 ) (3,054 ) (10,635 ) (14,470 )

OTHER INCOME (EXPENSE), NET:
Interest income (expense), net (826 ) (571 ) (2,346 ) (1,935 )
Foreign exchange gain (loss), net (1,003 ) 1,010
(1,238 ) (153 )
Other income (expense), net (402 ) (178 ) (1,101 ) (37 )
TOTAL OTHER INCOME (EXPENSE), NET (2,231 ) 261
(4,685 ) (2,125 )

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (4,217 ) (2,793 ) (15,320 ) (16,595 )
Income tax provision 393
1,351
2,037
3,262
LOSS FROM CONTINUING OPERATIONS (4,610 ) (4,144 ) (17,357 ) (19,857 )
DISCONTINUED OPERATIONS
Loss from discontinued operations, net of income taxes (including loss on disposal of $1.2 million) —
—
—
(4,519 )
NET LOSS $ (4,610 ) $ (4,144 ) $ (17,357 ) $ (24,376 )

PER SHARE DATA:

Basic:
Loss from continuing operations $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (0.95 )
Loss from discontinued operations —
—
—
(0.22 )
Net loss $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (1.17 )
Weighted average number of shares 20,846
20,741
20,824
20,821
Diluted:
Loss from continuing operations $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (0.95 )
Loss from discontinued operations —
—
—
(0.22 )
Net loss $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (1.17 )
Weighted average number of shares 20,846
20,741
20,824
20,821



	Three Months Ended						Nine Months Ended
	July 30, 2017			July 31, 2016			July 30, 2017			July 31, 2016
	July 30, 2017			July 31, 2016			July 30, 2017			July 31, 2016
NET REVENUE	$	289,924		$	330,625		$	905,953		$	993,169
Cost of services	244,205			282,098			766,225			847,602
GROSS MARGIN	45,719			48,527			139,728			145,567
EXPENSES
Selling, administrative and other operating costs	46,931			49,543			146,992			153,294
Restructuring and severance costs	249			970			1,072			4,571
Impairment charge	—			—			290			—
Gain from divestitures	—			—			(3,938		)	(1,663		)
TOTAL EXPENSES	47,180			50,513			144,416			156,202
OPERATING LOSS	(1,461		)	(1,986		)	(4,688		)	(10,635		)
OTHER INCOME (EXPENSE), NET
Interest income (expense), net	(976		)	(826		)	(2,725		)	(2,346		)
Foreign exchange gain (loss), net	(1,730		)	(1,003		)	(1,419		)	(1,238		)
Other income (expense), net	(277		)	(402		)	(1,187		)	(1,101		)
TOTAL OTHER INCOME (EXPENSE), NET	(2,983		)	(2,231		)	(5,331		)	(4,685		)
LOSS BEFORE INCOME TAXES	(4,444		)	(4,217		)	(10,019		)	(15,320		)
Income tax provision	1,074			393			930			2,037
NET LOSS	$	(5,518	)	$	(4,610	)	$	(10,949	)	$	(17,357	)

PER SHARE DATA:
Basic:
Net loss	$	(0.26	)	$	(0.22	)	$	(0.52	)	$	(0.83	)
Weighted average number of shares	20,963			20,846			20,934			20,824
Diluted:
Net loss	$	(0.26	)	$	(0.22	)	$	(0.52	)	$	(0.83	)
Weighted average number of shares	20,963			20,846			20,934			20,824

See accompanying Notes to Condensed Consolidated Financial Statements.

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive ~~Income (Loss)~~Loss

(In thousands)

(unaudited)

Three Months Ended Nine Months Ended
July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015

NET LOSS $ (4,610 ) $ (4,144 ) $ (17,357 ) $ (24,376 )
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $0, respectively (1,437 ) (1,431 ) (1,133 ) (1,065 )
Unrealized gain on marketable securities, net of taxes of $0, respectively 25
7
23
23

Total other comprehensive loss
(1,412 ) (1,424 ) (1,110 ) (1,042 )
COMPREHENSIVE LOSS $ (6,022 ) $ (5,568 ) $ (18,467 ) $ (25,418 )



	Three Months Ended						Nine Months Ended
	July 30, 2017			July 31, 2016			July 30, 2017			July 31, 2016
	July 30, 2017			July 31, 2016			July 30, 2017			July 31, 2016
NET LOSS	$	(5,518	)	$	(4,610	)	$	(10,949	)	$	(17,357	)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $0 and $0, respectively	3,625			(1,437		)	4,722			(1,133		)
Unrealized gain on marketable securities, net of taxes of $0 and $0, respectively	—			25			—			23
COMPREHENSIVE LOSS	$	(1,893	)	$	(6,022	)	$	(6,227	)	$	(18,467	)

See accompanying Notes to Condensed Consolidated Financial Statements.

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)


	July 31, 2016			November 1, 2015			July 30, 2017			October 30, 2016
	(unaudited)						(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	12,886		$	10,188		$	16,357		$	6,386
Restricted cash and short-term investments	16,392			14,977			20,850			13,948
Trade accounts receivable, net of allowances of $718 and $960, respectively	179,088			198,385
Trade accounts receivable, net of allowances of $881 and $801, respectively							195,893			193,866
Recoverable income taxes	17,244			16,633			3,498			16,979
Prepaid insurance and other current assets	13,396			15,865
Other current assets							11,636			11,806
Assets held for sale	19,680			22,943			698			17,580
TOTAL CURRENT ASSETS	258,686			278,991			248,932			260,565
Other assets, excluding current portion	25,573			23,740			26,638			25,767
Property, equipment and software, net	27,783			24,095			31,914			30,133
TOTAL ASSETS	$	312,042		$	326,826		$	307,484		$	316,465

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accrued compensation	$	29,850		$	29,548		$	27,088		$	29,147
Accounts payable	35,113			39,164			40,726			32,425
Accrued taxes other than income taxes	22,962			22,719			21,830			22,791
Accrued insurance and other	31,170			34,391			29,095			34,306
Short-term borrowings, including current portion of long-term debt	92,000			982
Income taxes payable	—			1,658
Short-term borrowings							100,000			2,050
Liabilities held for sale	5,571			7,345			346			5,760
TOTAL CURRENT LIABILITIES	216,666			135,807			219,085			126,479
Accrued insurance and other, excluding current portion	11,868			10,474			10,467			9,999
Deferred gain on sale of real estate, excluding current portion	26,594			—			24,650			26,108
Income taxes payable, excluding current portion	6,647			6,516			5,500			6,777
Deferred income taxes	3,436			3,225			3,137			3,137
Long-term debt, excluding current portion	—			106,313
Long-term debt							—			95,000
TOTAL LIABILITIES	265,211			262,335			262,839			267,500
Commitments and contingencies

STOCKHOLDERS' EQUITY:
STOCKHOLDERS’ EQUITY:
Preferred stock, par value $1.00; Authorized - 500,000 shares; Issued - none	—			—			—			—
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003 and 23,738,003, respectively; Outstanding - 20,894,383 and 20,801,080, respectively	2,374			2,374
Common stock, par value $0.10; Authorized - 120,000,000 shares; Issued - 23,738,003 shares; Outstanding - 21,008,964 and 20,917,500 shares, respectively							2,374			2,374
Paid-in capital	75,861			75,803			78,044			76,564
Retained earnings	18,692			38,034			8,067			21,000
Accumulated other comprehensive loss	(9,104		)	(7,994		)	(5,890		)	(10,612		)
Treasury stock, at cost; 2,843,620 and 2,936,923 shares, respectively	(40,992		)	(43,726		)
TOTAL STOCKHOLDERS' EQUITY	46,831			64,491
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	312,042		$	326,826
Treasury stock, at cost; 2,729,039 and 2,820,503 shares, respectively							(37,950		)	(40,361		)
TOTAL STOCKHOLDERS’ EQUITY							44,645			48,965
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY							$	307,484		$	316,465

See accompanying Notes to Condensed Consolidated Financial Statements.

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)


	Nine Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 30, 2017			July 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(17,357	)	$	(24,376	)	$	(10,949	)	$	(17,357	)
Loss from discontinued operations, net of income taxes	—			(4,519		)
Loss from continuing operations	(17,357		)	(19,857		)
Adjustment to reconcile net loss to cash provided by (used in) operating activities:
Adjustment to reconcile net loss to cash used in operating activities:
Depreciation and amortization	4,541			5,110			5,618			4,541
Provision (release) of doubtful accounts and sales allowances	(240		)	391			573			(240		)
Unrealized foreign currency exchange loss							1,130			1,617
Impairment charges	—			5,954			290			—
Unrealized foreign currency exchange loss (gain)	1,617			(528		)
Gain on dispositions of property and equipment	(2,326		)	(253		)
Deferred income tax benefit	—			(79		)
Amortization of gain on sale leaseback of property							(1,459		)	(810		)
Loss on dispositions of property, equipment and software							12			147
Gain from divestitures							(3,938		)	(1,663		)
Share-based compensation expense	1,020			2,564			2,111			1,020
Accretion of convertible note discount	(90		)	(319		)
Change in operating assets and liabilities:
Trade accounts receivable	19,756			33,919			(2,199		)	19,756
Restricted cash	(2,426		)	9,419			(7,072		)	(2,426		)
Prepaid insurance and other assets	(2,214		)	(886		)
Other assets							1,470			(2,304		)
Net assets held for sale	1,258			6,934			158			1,258
Accounts payable	(4,082		)	(18,568		)	8,038			(4,082		)
Accrued expenses and other liabilities	1,409			(9,946		)	(9,025		)	1,409
Income taxes	(2,181		)	2,251			12,204			(2,181		)
Net cash provided by (used in) operating activities	(1,315		)	16,106
Net cash used in operating activities							(3,038		)	(1,315		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments	1,230			1,011			716			1,230
Purchases of investments	(340		)	(582		)	(231		)	(340		)
Purchase of minority interest	(1,446		)	—
Proceeds from sale of property and equipment	36,795			389
Purchases of property, equipment and software	(13,632		)	(5,119		)
Net cash provided by (used in) investing activities	22,607			(4,301		)
Purchases of minority interest							—			(1,446		)
Proceeds from divestitures							15,224			36,648
Proceeds from sale of property, equipment, and software							297			147
Purchases of property, equipment, and software							(7,753		)	(13,632		)
Net cash provided by investing activities							8,253			22,607
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in cash restricted as collateral for borrowings	—			10,436
Repayment of borrowings	(10,000		)	(158,506		)	(27,050		)	(10,000		)
Draw-down of borrowings	2,000			155,000
Draw-down on borrowings							30,000			2,000
Repayment of long-term debt	(7,295		)	(676		)	—			(7,295		)
Debt issuance costs	(669		)	(746		)	(751		)	(669		)
Proceeds from exercise of stock options	24			504
Purchases of common stock under repurchase program	—			(4,262		)
Proceeds from exercise of options							2			24
Withholding tax payment on vesting of restricted stock awards	(116		)	—			(46		)	(116		)
Net cash provided by (used in) financing activities	(16,056		)	1,750			2,155			(16,056		)
Effect of exchange rate changes on cash and cash equivalents	(2,538		)	(3,679		)	2,601			(2,538		)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Cash flow from operating activities	—			(56		)
Cash flow from investing activities	—			(4,000		)
Net cash used in discontinued operations	—			(4,056		)
Net increase in cash and cash equivalents	2,698			5,820			9,971			2,698
Cash and cash equivalents, beginning of period	10,188			6,723			6,386			10,188
Change in cash from discontinued operations	—			(211		)
Cash and cash equivalents, end of period	$	12,886		$	12,332		$	16,357		$	12,886

Cash paid during the period:
Interest	$	2,436		$	2,435		$	2,815		$	2,436
Income taxes	$	3,727		$	1,638		$	2,256		$	3,727
Supplemental disclosure of non-cash investing and financing activities:
Note receivable in exchange for Computer Systems segment net assets sold	$	—		$	8,363

See accompanying Notes to Condensed Consolidated Financial Statements.

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

For the Fiscal Periods Ended July 30, 2017 and July 31, 2016 ~~and August 2, 2015~~

(Unaudited)

NOTE 1: Basis of Presentation

Basis of Presentation

The accompanying interim condensed consolidated financial statements of Volt Information Sciences, Inc. (“Volt” or the “Company”) have been prepared in conformity with generally accepted accounting principles, consistent in all material respects with those applied in the Annual Report on Form 10-K for the year ended ~~November 1, 2015.~~October 30, 2016. The Company makes estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates and changes in estimates are reflected in the period in which they become known. Accounting for certain expenses, including income taxes, are based on full year assumptions, and the financial statements reflect all normal adjustments that, in the opinion of management, are necessary for fair presentation of the interim periods presented. The interim information is unaudited and is prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”), which provides for omission of certain information and footnote disclosures. This interim financial information should be read in conjunction with the consolidated financial statements in the ~~Company's~~Company’s Annual Report on Form 10-K for the year ended ~~November 1, 2015.~~October 30, 2016.

Certain reclassifications have been made to the prior year financial statements in order to conform to the current ~~year's~~year’s presentation.

NOTE 2: Recently Issued Accounting Pronouncements

~~From time to time, new accounting pronouncements are issued~~New Accounting Standards Not Yet Adopted by the Company

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides guidance on the types of changes to the terms or ~~other standard setting bodies. Unless otherwise discussed,~~conditions of share-based payment awards to which an entity would be required to apply modification accounting. An entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments are effective for annual periods beginning after December 15, 2017, which for the Company ~~believes~~will be the first quarter of fiscal 2019. The Company is currently assessing the impact that ~~the adoption of recently issued standards that are not yet effective~~this ASU will ~~not~~ have ~~a material impact on its consolidated financial position or results of operations~~ upon adoption.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets. This ASU clarifies the scope and application of Accounting Standards Codification (“ASC”) 610-20 on the sale or transfer of non-financial assets and in substance non-financial assets to non-customers, including partial sales. The amendments are effective for annual reporting periods beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. The Company does not anticipate a significant impact upon adoption.

In August 2016, the FASB issued ~~Accounting Standards Update (“ASU”)~~ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force. The amendments provide guidance on eight specific cash flow classification issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, corporate and bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The amendments ~~in this update~~ are effective ~~for public business entities~~ for fiscal years beginning after December 15, 2017, ~~and interim periods within those~~which for the Company will be the first quarter of fiscal years. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period.2019. The Company ~~is in the process of assessing the~~does not anticipate a significant impact ~~that the adoption of this ASU will have on its consolidated financial statements.~~upon adoption.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU provides guidance for recognizing credit losses on financial instruments based on an estimate of current expected credit losses model. ~~For public business entities that are SEC filers, the~~The amendments ~~in this update~~ are effective for fiscal years beginning after December 15, 2019, ~~including interim periods within those~~which for the Company will be the first quarter of fiscal years. All entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of assessing2021. Although the impact upon adoption will depend on the financial instruments held by the Company at that time, the ~~adoption of this ASU will have~~Company does not anticipate a significant impact on its consolidated financial ~~statements.~~statements based on the instruments currently held and its historical trend of bad debt expense relating to trade accounts receivable.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ~~For public business entities, the~~ The

amendments ~~in this update~~ are effective for annual periods beginning after December 15, 2016, ~~and interim periods within those annual periods. Early adoption is permitted~~which for ~~any entity in any interim or annual period. If an entity early adopts~~ the ~~amendments in an interim period, any adjustments should~~Company will be ~~reflected as~~the first quarter of ~~the beginning of the~~ fiscal ~~year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period.~~2018. The Company ~~is in the process of assessing the~~does not anticipate a significant impact ~~that the adoption of this ASU will have on its consolidated financial statements.~~upon adoption.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). 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 update~~

isThe amendments are effective for fiscal years beginning after December 15, 2018, ~~including interim~~which for the Company will be the first quarter of fiscal 2020. The Company has preliminarily evaluated the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements on a modified retrospective basis, and currently expects that most of our operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon our adoption, which will increase the Company’s total assets and total liabilities that the Company reports relative to such amounts prior to adoption.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. The ASU is effective for the annual period ending after December 15, 2016, which for the Company will be the fourth quarter of fiscal 2017.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The FASB issued subsequent amendments to improve and clarify the implementation guidance of Topic 606. This standard is effective for annual reporting periods ~~within~~beginning after December 15, 2017, which for the Company will be the first quarter of fiscal 2019. After the preliminary assessment, the Company does not anticipate that the new guidance will have a material impact on our revenue recognition policies, practices or systems. As the Company continues to evaluate the impacts of our pending adoption of Topic 606 in fiscal 2017, our preliminary assessments are subject to change.

Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures.

Recently Adopted Accounting Standards

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and other (Topic 350). This ASU simplifies the accounting for goodwill impairment and removes Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value limited to the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those ~~fiscal years. Early adoption is permitted. The~~with zero or negative carrying amounts. This ASU was early adopted by the Company ison a prospective basis in the ~~process~~second quarter of ~~assessing the~~fiscal 2017 for its annual impairment test resulting in no impact ~~that the adoption of this ASU will have~~ on its consolidated financial statements. It was determined that no adjustment to the carrying value of goodwill of $5.4 million was required as our Step 1 analysis resulted in the fair value of the reporting unit exceeding its carrying value. No triggering event has occurred since the annual impairment test.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract and expense the cost as the services are received. This ASU was adopted by the Company in the first quarter of fiscal 2017 on a prospective basis. The Company does not currently have any projects that meet the criteria to be in scope of the internal-use software guidance and it did not have any impact on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03,, Simplifying the Presentation of Debt Issuance ~~Costs.~~Costs. The ASU requires that debt issuance costs related to a recognized liability be presented on the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU 2015-15 clarifies the guidance in ASU 2015-03 regarding presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. The SEC Staff announced they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These ASUs ~~are effective for reporting periods beginning after December 15, 2015, including interim reporting periods within those fiscal years.~~

~~In August 2014,~~were adopted by the ~~FASB issued ASU 2014-15,~~ ~~Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.~~ This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This ASU is effective for the annual period ending after December 15, 2016, with early adoption permitted.

~~In May 2014, the FASB issued ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers (Topic 606)~~. The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This standard is effective for fiscal years and interim reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, ~~Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.~~ The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that period. The Company ~~is currently assessing the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures upon implementation~~ in the first quarter of fiscal ~~2019.~~

~~From March through May 2016,~~2017. The Company has continued to defer and present debt issuance costs as an asset and to amortize the ~~FASB issued ASU No. 2016-08,~~ ~~Revenue from Contracts with Customers (Topic 606):Principal versus Agent Considerations (Reporting Revenue Gross versus Net),~~ ~~ASU No. 2016-10,~~ ~~Revenue from Contracts with Customers (Topic 606):Identifying Performance Obligations and Licensing,~~ ~~ASU No. 2016-11,~~ ~~Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815):Rescission~~deferred issuance costs ratably over the term of ~~SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at~~ the ~~March 3, 2016 EITF Meeting~~ ~~and ASU No. 2016-12,~~ ~~Revenue from Contracts with Customers (Topic 606):Narrow-Scope Improvements and Practical Expedients.~~ These amendments are intended to improve and clarify the implementation guidance of Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of ASU No. 2014-09 and ASU No. 2015-14.

~~Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant~~line-of-credit arrangement resulting in no impact on ~~our consolidated financial statements and related disclosures.~~

~~Recently Adopted Accounting Standards~~

~~In November 2015, the FASB issued Accounting Standards Update ASU 2015-17,~~ ~~Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes~~. The amendments in this update simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The Company has early adopted ASU 2015-17 prospectively beginning in the first quarter of fiscal 2016. Other than the revised balance sheet presentation of deferred taxes from current to non-current, the adoption of this ASU did not have a material impact to ourits consolidated financial statements.

All other ASUs that became effective for Volt in the first nine months of fiscal 2017 were not applicable to the Company at this time and therefore did not have any impact during the period.

NOTE 3: Discontinued Operations

On December 1, 2014, the Company completed the sale of its Computer Systems segment to NewNet Communication Technologies, LLC (“NewNet”), a Skyview Capital, LLC, portfolio company. The ~~results of the Computer Systems segment are presented as discontinued operations and excluded from continuing operations and from segment results for all periods presented.~~

~~The~~ proceeds of the transaction ~~are~~were a $10.0 million note bearing interest at one half ~~(0.5)~~ percent (0.5 percent) per year due in four years and convertible into a capital interest of up to 20% in NewNet. The Company may convert the note at any time and is entitled to receive early repayment in the event of certain events such as a change in control of NewNet. The ~~proceeds~~note was valued at $8.4 million which approximated its fair value. At July 30, 2017, the note is carried at net realizable value and the unamortized discount is $1.1 million.

The Company and NewNet are in ~~exchange for~~discussions regarding the ownership of Volt Delta Resources, LLC and its operating subsidiaries, which comprised the Company's Computer Systems segment, and payment of $4.0 million by the Company during the first 45 days following the transaction. An additional payment will be made between the partiesfinal working capital adjustment amount based on the comparison of the actual transaction date working capital amount to an expected working capital amount, of $6.0 million (the contractually agreed upon working capital). The note was initially valued at $8.4 million which approximated its fair value. At July 31, 2016, the note is carried at net realizable value and the unamortized discount was $1.1 million. The parties are currently in active discussions to finalize the closing balance sheet working capital amounts.

along with certain minor indemnity claims. The Company ~~recognized~~does not believe the resolution will have a ~~loss~~material impact on disposal of $1.2 million from the sale transaction in the first quarter of 2015. The total related costs associated with this transaction were $2.2 million comprised of $0.9 million in severance costs, $0.9 million of professional fees and $0.4 million of lease obligation costs. These costs are recorded in Discontinued operations in the Condensed Consolidated Statements of Operations. As of July 31, 2016, $2.0 million has been paid and $0.2 million remains payable and is included in Accrued insurance and other in the Condensed Consolidated Balance Sheets.its financial statements or net income.

The ~~following table reconciles~~Company may consider monetizing the ~~major line items~~note prior to maturity in either a secondary market or an early extinguishment, if NewNet agrees, at some value less than the ~~Condensed Consolidated Statements~~face amount and may offset a settlement on the working capital adjustment and indemnity claims against the note. Accordingly, the Company has ceased accreting interest on the note until the matter is resolved. At this time, although there is no certainty, the Company does not believe that any associated adjustment to the value of ~~Operations for discontinued operations (in thousands):~~

Nine Months Ended August 2, 2015
Loss from discontinued operations
Net revenue $ 4,708
Cost of revenue 5,730
Selling, administrative and other operating costs 1,388
Restructuring and other related costs 1,709
Other (income) expense, net (978 )
Loss from discontinued operations (3,141 )
Loss on disposal of discontinued operations (1,187 )
Loss from discontinued operations before income taxes (4,328 )
Income tax provision 191
Loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations $ (4,519 )
the note would result in a material difference from its current carrying value.

NOTE 4: Assets and Liabilities Held for Sale

In October 2015, the ~~Company's~~Company’s Board of Directors ~~(the "Board")~~ approved a plan to sell the Company’s information technology infrastructure services business, Maintech, Incorporated (“Maintech”) ~~and staffing services business in Uruguay (“Lakyfor, S.A.”)~~.

Maintech met all of the criteria to classify its assets and liabilities as held for sale in the fourth quarter of fiscal 2015. The ~~potential~~ disposal of Maintech did not represent a strategic shift that ~~will~~would have a major effect on the Company’s operations and financial results and ~~is,~~was, therefore, not classified as discontinued operations in accordance with ASU 2014-08,Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)~~, (“ASU 2014-08”)~~. As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations exceeded the carrying value of the net assets and no impairment charge was recorded. ~~The timeline~~Maintech’s financial results were reported within the Corporate and Other category in our segment data.

On March 6, 2017, the Company completed the sale of Maintech to ~~complete~~Maintech Holdings, LLC, a ~~transaction has extended beyond~~newly-formed holding company and affiliate of Oak Lane Partners, LLC (“Buyer”). Under the ~~third quarter of fiscal 2016.~~

~~Lakyfor, S.A. met all~~terms of the ~~criteria~~Stock Purchase Agreement, the Company received proceeds of $18.3 million, subject to ~~classify its assets~~a $0.1 million holdback and ~~liabilities as held for sale in the fourth quarter of fiscal 2015. The disposal of Lakyfor, S.A. did not represent~~certain adjustments including a ~~strategic shift~~customary working capital adjustment that ~~would have a major effect on the Company’s operations and financial results and~~ was ~~therefore, not classified as discontinued operations in accordance with ASU 2014-08. As part~~finalized within 60 days of the ~~required evaluation under~~sale. Net proceeds from the ~~held for sale guidance, the Company determined that the approximate fair value less costs~~transaction amounted to ~~sell the operations was significantly lower than the carrying value~~$13.1 million after certain transaction-related fees, expenses and repayment of ~~the net assets and~~ an ~~impairment charge~~outstanding Bank of ~~$0.7 million was recorded in the fourth quarter of fiscal 2015.~~America, N.A. (“BofA”) loan balance. The ~~sale occurred in December 2015 for nominal proceeds and the~~ Company recognized a ~~loss~~gain on disposal of ~~$0.1~~$3.9 million from the sale transaction in the ~~first~~second quarter of fiscal ~~2016.~~2017.

Concurrently with the sale, the Company entered into a Transition Services and Asset Transfer Agreement (the “Transition Services Agreement”). Given that the Buyer had not yet formed legal entities in certain international jurisdictions, the Company still holds legal title to approximately $0.4 million, net, of certain of Maintech’s international assets and liabilities. Pursuant to the Transition Services Agreement, the Buyer is entitled to all of the economic benefit and burden of such international assets and liabilities commencing on the sale date, March 6, 2017, as if legal title had transferred. Following the sale, for a period of up to twelve months, both parties will work in good faith to enter into definitive documentation for the conveyance of these assets and liabilities. Also under the terms of the Transition Services Agreement, the Company will continue to provide certain accounting and operational support services to the Buyer, on a monthly fee-for-service basis for a period of up to six months post-closing.

The Company and Maintech have also executed a three-year IT as a service agreement, whereby Maintech will continue to provide helpdesk and network monitoring services to the Company, similar to the services that were provided before the transaction.

As of July 30, 2017, the Maintech assets and liabilities which have not yet legally transferred will continue to be presented as held for sale in the Condensed Consolidated Balance Sheets. The following table reconciles the major classes of assets and liabilities classified as held for sale as part of continuing operations in the Condensed Consolidated Balance Sheets (in thousands):

July 31, 2016 November 1, 2015
Assets included as part of continuing operations
Cash and cash equivalents $ 825
$ 1,537
Trade accounts receivable, net 14,591
15,671
Recoverable income taxes 54
165
Prepaid insurance and other assets 3,573
4,886
Property, equipment and software, net 142
189
Purchased intangible assets 495
495
Total major classes of assets as part of continuing operations - Maintech and Lakyfor, S.A. ⁽¹⁾
$ 19,680
$ 22,943

Liabilities included as part of continuing operations
Accrued compensation $ 2,439
$ 3,509
Accounts payable 684
1,387
Accrued taxes other than income taxes 775
1,165
Accrued insurance and other 586
523
Deferred revenue 1,087
761
Total major classes of liabilities as part of continuing operations - Maintech and Lakyfor, S.A. ⁽¹⁾
$ 5,571
$ 7,345

⁽¹⁾ ~~The Balance Sheet as of July 31, 2016 only includes Maintech.~~



	July 30, 2017		October 30, 2016
Assets included as part of continuing operations
Trade accounts receivable, net	$	483	$	13,553
Recoverable income taxes	—		15
Other assets	203		3,339
Property, equipment and software, net	12		178
Purchased intangible assets	—		495
Total major classes of assets as part of continuing operations	$	698	$	17,580

Liabilities included as part of continuing operations
Accrued compensation	$	—	$	2,432
Accounts payable	136		921
Accrued taxes other than income taxes	—		833
Accrued insurance and other	210		1,574
Total major classes of liabilities as part of continuing operations	$	346	$	5,760

~~Note~~NOTE 5: Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss for the three and nine months ended July 31, 2016 were (in thousands):
Three Months Ended Nine Months Ended
July 31, 2016 July 31, 2016
Foreign Currency Translation Unrealized Loss on Marketable Securities Foreign Currency Translation Unrealized Loss on Marketable Securities

Accumulated other comprehensive loss at beginning of the period $ (7,667 ) $ (25 ) $ (7,971 ) $ (23 )
Other comprehensive income (loss) before reclassifications (1,437 ) 25
(1,133 ) 23
Accumulated other comprehensive loss at July 31, 2016 $ (9,104 ) $ —
$ (9,104 ) $ —

Reclassifications from accumulated other comprehensive loss for the three and nine months ended July 31, 2016 and August 2, 2015 were (in thousands):
Three Months Ended Nine Months Ended
July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015
Foreign currency translation

Sale of foreign subsidiaries, net of tax $ —
$ —
$ —
$ (3,181 )
Closure of foreign subsidiary (643 ) —
(643 ) —

Amount reclassified from accumulated other comprehensive loss for the nine months ended July 31, 2016 and August 2, 2015 were (in thousands):

Details about Accumulated Other Comprehensive Loss Components Fiscal Year Amount Reclassified Affected Line Item in the Statement Where Net Loss is Presented
Foreign currency translation
Closure of foreign subsidiary 2016 $ 643
Foreign exchange gain (loss), net
Sale of foreign subsidiaries 2015 3,181
Discontinued operations



The changes in accumulated other comprehensive loss for the three and nine months ended July 30, 2017 were (in thousands):

	Three Months Ended			Nine Months Ended
	July 30, 2017
	Foreign Currency Translation
Accumulated other comprehensive loss at the beginning of the period	$	(9,515	)	$	(10,612	)
Other comprehensive income	3,625			4,722
Accumulated other comprehensive loss at July 30, 2017	$	(5,890	)	$	(5,890	)



Reclassifications from accumulated other comprehensive loss for the three and nine months ended July 30, 2017 and July 31, 2016 were (in thousands):
	Three Months Ended					Nine Months Ended
	July 30, 2017		July 31, 2016			July 30, 2017			July 31, 2016
Foreign currency translation
Sale of foreign subsidiaries	$	—	$	—		$	(612	)	$	—
Closure of foreign subsidiary	$	—	$	(643	)	$	—		$	(643	)



Details about Accumulated Other Comprehensive Loss Components	Fiscal Year		Amount Reclassified			Affected Line Item in the Statement Where Net Loss is Presented
Foreign currency translation
Sale of foreign subsidiaries	2017		$	(612	)	Foreign exchange gain (loss), net
Closure of foreign subsidiary	2016		$	(643	)	Foreign exchange gain (loss), net

NOTE 6: Restricted Cash and Short-Term Investments

Restricted cash primarily includes amounts related to requirements under certain contracts with managed service program customers for whom the Company manages the customers’ contingent staffing requirements, including processing of associate vendor billings into single, combined customer billings and distribution of payments to associate vendors on behalf of customers, as well as minimum cash deposits required to be maintained as collateral. Distribution of payments to associate vendors ~~are~~is generally made shortly after receipt of payment from customers, with undistributed amounts included in restricted cash and accounts payable between receipt and distribution of these amounts. Changes in restricted cash collateral are classified as an operating activity, as this cash is directly related to the operations of this business. At July ~~31,~~30, 2017 and October 30, 2016, ~~and November 1, 2015,~~ restricted cash included ~~$10.6~~$15.6 million and ~~$9.3~~$8.4 million, respectively, restricted for payment to associate vendors and ~~$2.0~~$1.9 million and ~~$0.9~~$1.9 million, respectively, restricted for other collateral accounts.

At July ~~31,~~30, 2017 and October 30, 2016, ~~and November 1, 2015,~~ short-term investments were ~~$3.8~~$3.4 million and ~~$4.8~~$3.6 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.

NOTE 7: Income Taxes

The income tax provision (benefit) reflects the geographic mix of earnings in various federal, state and foreign tax jurisdictions and their applicable rates resulting in a composite effective tax rate. The Company’s cumulative results for substantially all United States and certain non-United States jurisdictions for the most recent three-year period is a loss. Accordingly, a valuation allowance has been established for substantially all loss carryforwards and other net deferred tax assets for these jurisdictions, resulting in an effective tax rate that is significantly different than the statutory rate.

The Company's provision for income taxes primarily includes foreign jurisdictions and state taxes. The provision for income taxes in the third quarter of fiscal 2016 and 2015 was $0.4 million and $1.4 million, respectively, and for the nine months ended July 31, 2016 and August 2, 2015 was $2.0 million and $3.3 million, respectively. The Company's quarterly provision for income taxes is measured using an estimated annual effective tax rate, adjusted for discrete items that occur within the periods presented.

The Company adjusts its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate, consistent with ~~Accounting Standards Codification (“ASC”)~~ASC 270, “Interim Reporting,” and ASC 740-270, “Income Taxes – Intra Period Tax Allocation.” Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. The ~~Company's~~Company’s future effective tax rates could be affected by earnings being different than anticipated in countries with differing statutory rates, increases in recorded valuation allowances of tax assets, or changes in tax laws.

The Company’s provision for income taxes primarily includes foreign jurisdictions and state taxes. In the third quarter of fiscal 2017 and fiscal 2016, income taxes were a provision of $1.1 million and $0.4 million, respectively. For the nine months ended July 30, 2017 and July 31, 2016, income taxes were a provision of $0.9 million and $2.0 million, respectively. The Company’s quarterly income taxes are measured using an estimated annual effective tax rate, adjusted for discrete items that occur within the periods presented.

In the third quarter of fiscal 2017, the income tax provision was higher than the comparable 2016 period due to the timing of profits in foreign jurisdictions. For the nine months ended July 30, 2017, the Company recorded a net discrete tax benefit of approximately $1.3 million resulting from the resolution of uncertain tax positions upon the completion and effective settlement of the audit of the Company’s fiscal 2004 through 2010 federal income tax returns and associated state tax audits. The Company received $13.8 million of federal refunds related to the completion of the audit periods in March 2017. The Company continues to work with the IRS to resolve one remaining matter related to fiscal 2010 and anticipates having the matter resolved within the next several quarters.

NOTE 8: Real Estate Transactions

Orange, CA

In March 2016, Volt Orangeca Real Estate Corp., an indirect wholly-owned subsidiary of the Company completed the sale of real property comprised of land and buildings with office space of approximately 191,000 square feet in Orange, California for a purchase price of $35.9 million. The ~~Company entered concurrently into~~sale was effected pursuant to a Purchase and Sale Agreement (the “PSA”) with, and the Company also concurrently entered into a Lease Agreement (the “Lease”) with, Glassell Grand Avenue Partners, LLC (the “Buyer”), a limited liability company formed by Hines, a real estate investment and management firm, and funds managed by Oaktree Capital Management L.P., an investment management firm. The Buyer assigned the PSA and the Lease to Glassell Acquisitions Partners LLC, an affiliate, prior to the closing.

The transaction was accounted for as a sale-leaseback transaction and as an operating lease. The initial lease term is 15 years plus renewal options for two terms of five years each based on the greater of fair market value at the time of the renewal or the base annual rent payable during the last month of the then-current term immediately preceding the extended period. The annual base rent ~~will be~~was $2.9 million for the first year of the initial term and ~~increase~~increases on each adjustment date by 3.0% of the then-current annual base rent. A security deposit of $2.1 million iswas required for the first year of the lease term which is secured by a letter of credit under the ~~Company's~~Company’s existing ~~Financing Program~~financing program (the “Financing Program”) with PNC Bank National Association (“PNC”) ~~and~~, which was reduced to $1.4 million in the second quarter of fiscal 2017. The security deposit will subsequently be reduced if certain conditions are met. Accordingly, the gain on sale of $29.4 million will be deferred and recognized in proportion to the related gross rental charges to expense over the lease term. ~~For the three months and nine months ended July 31, 2016, the amortization was $0.5 million and $0.8 million, respectively.~~

San Diego, CA

In March 2016, Volt Opportunity Road Realty Corp., an indirect wholly-owned subsidiary of the Company, completed the sale with a private commercial real estate investor of real property comprised of land and a building with office space of approximately 19,000

square feet in San Diego, California for a purchase price of $2.2 million. The Company recognized a gain of $1.7 million from the transaction during the second quarter of fiscal 2016.

NOTE 9: Debt

In January ~~2016,~~2017, the Company amended its ~~$150.0~~$160.0 million Financing Program with ~~PNC~~PNC. Key changes to the agreement were to: (1) extend the termination date to January 31, ~~2017;~~2018; (2) ~~eliminate~~increase the ~~interest coverage ratio and modify~~minimum global liquidity covenant to $25.0 million upon the ~~liquidity level requirement;~~sale of Maintech in March 2017, which will increase to $35.0 million if the Company pays a dividend or repurchases shares of its stock; (3) reduce the unbilled receivables eligibility from 15% to 10% of total eligible receivables, (4) permit a $5.0 million basket for supply chain finance receivables and (5) introduce a performance covenant requiring a minimum ~~funding threshold,~~level of Earnings Before Interest and Taxes (“EBIT”), as defined, which is measured quarterly. As Maintech was sold and the IRS refund was received in March 2017, up to $0.5 million in distributions can be made per fiscal quarter provided that available liquidity is at least $40.0 million after the distribution. All other material terms and conditions remain substantially unchanged, including interest rates. With the sale of Maintech in March 2017, the minimum liquidity requirement increased from ~~60%~~$20.0 million to ~~40%; and (4) revise pricing from a LIBOR based rate plus 1.75% per~~$25.0 million, until subsequently amended on August 25, 2017.

On July 14, 2017, the ~~prior agreement, to a LIBOR based rate plus 1.90% on outstanding borrowings, and~~Company amended its Financing Program to increase the ~~facility fee~~permitted ratio of delinquent receivables to 2.5% from ~~0.65%~~2.0% for the period of July 2017 through September 2017. The threshold of 2.0% will be unchanged from October 2017. On August 25, 2017, the Company further amended its Financing Program to ~~0.70%~~lower EBIT minimum targets for the fiscal quarter ended July 30, 2017 and the fiscal quarter ending October 29, 2017. Additionally, effective from the date of execution, the amendment lowers the required liquidity level amount, as defined, to $5.0 million from $25.0 million. This decrease is offset by the establishment of a minimum $10.0 million block on its borrowing base availability, resulting in a net $10.0 million increase in overall availability under this agreement. Also effective from the date of execution, the amendment includes an increase in both the program and LC fees from 1.2% to 1.8%.

available first to satisfy obligations to PNC and are not available to pay creditors of the ~~Company's~~Company’s other legal entities. Borrowing capacity under the Financing Program is directly impacted by the level of accounts receivable. At July ~~31, 2016,~~30, 2017, the accounts receivable borrowing base was ~~$151.7~~$142.7 million. As of November 1, 2015, the Financing Program was classified as long-term debt on the Condensed Consolidated Balance Sheets, however, as of the end of the Company's first quarter of fiscal 2016, the Financing Program was classified as short-term as the termination date is within twelve months of the Company’s first quarter of fiscal 2016 balance sheet date.

The liquidity level requirement under our Financing Program set a minimum global liquidity level of $20.0 million at the origination of the facility in July 2015. Under the first amendment to the Financing Program, the liquidity level was increased from $20.0 million to $35.0 million effective January 31, 2016 and to $50.0 million effective July 31, 2016. The July 31st threshold was established assuming the Company completed certain liquidity events. In order to better align the covenants to the timing of certain liquidity events, in July 2016, the Company further amended the Financing Program to reduce the minimum liquidity covenant level from $50.0 million to $35.0 million for the period beginning July 31, 2016 through the earlier of: 1) the date of the sale of Maintech, if such is closed on or before September 30, 2016, and 2) October 30, 2016 thereafter it increases to $50.0 million. The amendment also adds a negative covenant prohibiting certain capital stock transactions by the Company through the earlier of: 1) the date of the sale of Maintech, if such is closed on or before September 30, 2016, and 2) October 31, 2016.

In addition to customary representations, warranties and affirmative and negative covenants, the program is subject to termination under standard events of default including change of control, failure to pay principal or interest, breach of the liquidity ~~covenant,~~or performance covenants, triggering of portfolio ratio limits, or other material adverse events, as defined. At July ~~31, 2016,~~30, 2017, the Company was in compliance with all debt covenant requirements.

The Financing Program has aan accordion feature under which the facility limit can be increased ~~from $150.0 million~~ up to $250.0 million subject to credit approval from PNC. Borrowings are priced based upon a fixed program rate plus the daily adjusted one-month LIBOR index, as defined. The program also contains a revolving credit provision under which proceeds can be drawn for a definitive tranche period of 30, 60, 90 or 180 days priced at the adjusted LIBOR index rate in effect for that period. In addition to United States dollars, drawings can be denominated in Canadian dollars, subject to a Canadian dollar $30.0 million ~~limit,~~sub-limit, and British Pounds Sterling, subject to a £20.0 million ~~limit.~~sub-limit. The program also includes a letter of credit ~~sublimit~~sub-limit of $50.0 million and minimum borrowing requirements. As of July ~~31, 2016,~~30, 2017, there were no foreign currency denominated borrowings, and the letter of credit participation was ~~$31.0~~$28.3 million inclusive of ~~$28.9~~$26.9 million for the ~~Company's~~Company’s casualty insurance program and ~~$2.1~~$1.4 million for the security deposit required under the Orange facility lease agreement.

At July ~~31,~~30, 2017 and October 30, 2016, ~~and November 1, 2015,~~ the Company had outstanding ~~borrowing~~borrowings under ~~this program~~the Financing Program of ~~$90.0~~$100.0 million and ~~$100.0~~$95.0 million, respectively, ~~and bore~~that had a weighted average annual interest rate of ~~2.4%~~3.1% and ~~1.7%~~2.4% during the third quarter of fiscal ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~2.3%~~2.9% and ~~1.7%~~2.3% during the first nine months of fiscal ~~2016~~2017 and ~~2015,~~2016, respectively, which is inclusive of certain facility fees. At July ~~31, 2016,~~30, 2017, there was ~~$29.0~~$14.4 million additional availability under this program, exclusive of ~~the~~any potential availability under the ~~aforementioned~~ accordion feature.

In February 2016, Maintech, as borrower, entered into a ~~$10.0~~$10.0 million 364-day secured revolving credit agreement with ~~Bank of America, N.A.~~BofA. The credit agreement ~~provides~~provided for revolving loans as well as a ~~$0.1~~$0.1 million sub-line for letters of credit and is subject to borrowing base and availability restrictions and requirements. The credit agreement iswas secured by assets of the borrower, including accounts receivable, and the Company ~~has~~had guaranteed the obligations of the borrower ~~under the agreement not~~up to ~~exceed~~ $3.0 million. The credit agreement ~~contains~~contained certain customary representations and warranties, events of default and affirmative and negative covenants, including a minimum interest requirement based on $2.0 million ~~drawn, which was the outstanding amount under this facility at July 31, 2016. At July 31, 2016, there was $3.4 million of additional availability under this program.~~drawn.

The borrower ~~may optionally~~could terminate the credit agreement and repay the borrowings prior to the expiration date, without premium or penalty at any time by the delivery of a notice to that ~~effect as provided under the credit agreement. It is anticipated that the credit agreement will be terminated before a sale of the borrower.~~effect. Borrowings ~~will be~~were used for working capital and general corporate

purposes. Interest under the credit agreement iswas one month LIBOR plus 2.75% on drawn amounts and a fixed rate of 0.375% on undrawn amounts.

InThe agreement was extended for one month in February ~~2016, Volt Orangeca Real Estate Corp., an indirect wholly-owned subsidiary~~2017. Subsequently, all amounts outstanding under the credit agreement as of March 6, 2017 were satisfied with the ~~Company, entered into a PSA for~~proceeds from the sale of ~~real property comprised of land and buildings~~Maintech, at which time the Company’s obligation as a guarantor was discharged. At October 30, 2016, the amount outstanding was $2.1 million, with office space of approximately 191,000 square feet in Orange, California (the “Property”) for a purchase price of $35.9 million. The transaction closed in March 2016 with terms consistent with the PSA and the mortgage on the Property was repaid. At November 1, 2015, the Company had $7.3$3.3 million of additional availability.

Long-term debt consists of the following (in thousands):



	July 30, 2017		October 30, 2016
Financing programs	$	100,000	$	97,050
Less: current portion	100,000		2,050
Total long-term debt	$	—	$	95,000

NOTE 10: Earnings (Loss) Per Share

Basic and diluted net loss per share is calculated as follows (in thousands, except per share amounts):



	Three Months Ended						Nine Months Ended
	July 30, 2017			July 31, 2016			July 30, 2017			July 31, 2016
Numerator
Net loss	$	(5,518	)	$	(4,610	)	$	(10,949	)	$	(17,357	)
Denominator
Basic weighted average number of shares	20,963			20,846			20,934			20,824
Diluted weighted average number of shares	20,963			20,846			20,934			20,824

Net loss per share:
Basic	$	(0.26	)	$	(0.22	)	$	(0.52	)	$	(0.83	)
Diluted	$	(0.26	)	$	(0.22	)	$	(0.52	)	$	(0.83	)

Options to purchase 2,572,091 and 1,898,397 shares of the Company’s common stock were outstanding at July 30, 2017 and July 31, 2016, respectively. Additionally, there were 324,277 and 237,864 unvested restricted shares outstanding at July 30, 2017 and July 31, 2016, respectively. The options were not included in the computation of diluted loss per share in the three and nine months of fiscal 2017 and 2016 because the effect of their inclusion would have been anti-dilutive as a ~~long-term term loan on this Property,~~result of ~~which $1.0 million was current at~~ the ~~period end date.~~Company’s net loss position in those periods.

NOTE ~~10:~~11: Stock Compensation ~~Plans~~Plan

~~2015 Equity Incentive Plan~~

~~On June 9, 2016,~~During the ~~stockholders~~third quarter of fiscal 2017, pursuant to the terms of the ~~Company approved the~~Company’s 2015 Equity Incentive Plan (the “2015 Plan”), ~~which replaces~~ the ~~2006 Incentive Stock Plan (the “2006 Plan”~~Company granted an aggregate of 809,554 stock options, 240,428 restricted stock units (“RSUs”) ~~that terminated on September 5, 2016. All outstanding shares granted under the 2006 Plan will remain valid. The 2015 Plan was previously adopted by the Board on October 19, 2015~~ and ~~subsequently amended on January 13, 2016. The 2015 Plan authorizes the Board to award equity-based compensation~~71,311 phantom units in the form of ~~(1)~~cash-settled RSUs. This was comprised of: (i) 809,554 stock options and 166,658 RSUs granted to certain employees including executive management as long-term incentive ~~stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units (“RSUs”), (5) performance~~ awards, ~~(6) other stock-based awards, and (7) performance compensation awards. Subject~~(ii) 73,770 RSUs granted to ~~adjustment as provided in the 2015 Plan, up to an aggregate of 3,000,000 shares~~independent members of the ~~Company’s common stock may be issued or transferred in connection with awards~~Board as part of their annual compensation and (iii) 71,311 phantom units granted ~~thereunder.~~

to certain senior management level employees.

During the third quarter of fiscal 2016, the Company granted an aggregate of 938,767 stock options and 253,271 RSUs under the 2015 Plan in addition to 26,031 stock options and 5,233 RSUs under the 2006 Incentive Stock Plan. This was comprised of: (i) 782,748 stock options and 156,608 RSUs granted to certain employees including executive management as long term incentive awards, (ii) 182,050 stock options and 40,016 RSUs granted to the Chief Executive Officer which was subject to shareholder approval of the 2015 Plan pursuant to his employment agreement dated October 19, 2015 and (iii) 61,880 RSUs granted to members of the Board as part of their annual compensation.

The ~~grants were based on the~~total fair value at the grant date ~~with a total fair value~~ of these stock options and RSUs were approximately $2.5 million and $3.8 ~~million.~~million in fiscal 2017 and 2016, respectively. The grants for the Board members vested immediately whereas the grants for the employees will vest in tranches ratably over three years provided the employees remain employed on each of those vesting dates. The weighted average fair value per unit for the RSUs in fiscal 2017 and 2016 was ~~$6.06.~~$4.35 and $6.06, respectively. Compensation expense for the vested ~~units~~RSUs was recognized on the grant date. The stock options expire 10 years from the initial grant date and have a weighted average exercise price of $4.36 in fiscal 2017 and $6.49 ~~and expire 10 years from the initial grant date.~~in fiscal 2016. Compensation expense for the stock options and ~~units~~RSUs that ~~were~~did not immediately ~~vested~~vest is recognized over the vesting period.

Determining Fair Value - Stock Options

The fair value of the stock option grant was estimated using the Black-Scholes option pricing model, which requires estimates of key assumptions based on both historical information and management judgment regarding market factors and trends.

Expected volatility - We developed the expected volatility by using the historical volatilities of the Company for a period equal to the expected life of the option.

Expected term - We derived our expected term assumption based on the simplified method due to a lack of historical exercise data, which results in an expected term based on the midpoint between the graded vesting dates and contractual term of an option.

Risk-free interest rate - The rates are based on the average yield of a U.S. Treasury bond, ~~whose~~with a term that was consistent with the expected life of the stock options.

Expected dividend yield - We have not paid and do not anticipate paying cash dividends on our shares of common stock; therefore, the expected dividend yield was assumed to be zero.

The weighted average assumptions used to estimate the fair value of stock options for the three months ended July 30, 2017 and July 31, 2016 were as follows:


				July 30, 2017			July 31, 2016
Fair value of stock option granted	$	2.32		$	1.79		$	2.32
Expected volatility	40.0		%	40.0		%	40.0		%
Expected term (in years)	6.0			6.0			6.0
Risk-free interest rate	1.29		%	1.91		%	1.29		%
Expected dividend yield	0.0		%	0.0		%	0.0		%

~~For~~The total fair value at the grant date of the phantom units was approximately $0.3 million. The units vest in tranches ratably over three years provided the employees remain employed on each of those vesting dates. The weighted average fair value per unit was $4.35. These cash-settled awards are classified as a liability and remeasured at the end of each reporting period based on the change in fair value of one share of the Company’s common stock. Compensation expense is recognized over the vesting period. The liability and corresponding expense are adjusted accordingly until the awards are settled.

The total stock compensation expense for the three and nine months ended July 30, 2017 was $0.9 million and $2.1 million, respectively, and for the three and nine months ended July 31, 2016 ~~stock compensation expense related to these grants~~ was ~~approximately~~ $0.6 million and $1.0 million, respectively. Stock compensation expense was recognized in Selling, administrative and other operating costs in the Company’s Condensed Consolidated Statements of Operations. As of July ~~31, 2016,~~30, 2017, total unrecognized compensation expense of ~~$3.2~~$3.4 million related to stock options and RSUs ~~from these grants~~and of $0.2 million related to the phantom units will be recognized over the remaining weighted average vesting period of ~~2.75~~3 years, of which ~~$0.6 million, $1.7 million,~~ $0.7 million, $2.0 million, $0.8 million and ~~$0.2~~$0.1 million is expected to be recognized in fiscal ~~2016,~~ 2017, 2018, 2019 and ~~2019,~~2020, respectively.

~~NOTE 11: Earnings (Loss) Per Share~~

~~Basic and diluted net income (loss) per share is calculated as follows (in thousands, except per share amounts):~~

Three Months Ended Nine Months Ended
July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015
Numerator
Loss from continuing operations $ (4,610 ) $ (4,144 ) $ (17,357 ) $ (19,857 )
Loss from discontinued operations, net of income taxes —
—
—
(4,519 )
Net loss $ (4,610 ) $ (4,144 ) $ (17,357 ) $ (24,376 )
Denominator
Basic weighted average number of shares 20,846
20,741
20,824
20,821
Diluted weighted average number of shares 20,846
20,741
20,824
20,821

Basic:
Loss from continuing operations $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (0.95 )
Loss from discontinued operations, net of income taxes —
—
—
(0.22 )
Net loss $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (1.17 )

Diluted:
Loss from continuing operations $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (0.95 )
Loss from discontinued operations, net of income taxes —
—
—
(0.22 )
Net loss $ (0.22 ) $ (0.20 ) $ (0.83 ) $ (1.17 )

Options to purchase 1,898,397 and 1,007,911 shares of the Company’s common stock were outstanding at July 31, 2016 and August 2, 2015, respectively. Additionally, there were 237,864 and 42,000 unvested restricted shares outstanding at July 31, 2016 and August 2, 2015, respectively. The options and restricted shares were not included in the computation of diluted earnings (loss) per share in the three and nine months of fiscal 2016 and 2015 because the effect of their inclusion would have been anti-dilutive as a result of the Company’s net loss position in those periods.

~~Note~~NOTE 12: Restructuring and Severance Costs

~~In November 2015, the~~The Company implemented a cost reduction ~~plan. In connection with the initial and ongoing~~ plan ~~to reduce costs, the Company estimates that it will incur restructuring charges of approximately $5.5 million~~ in fiscal 2016 and incurred restructuring and severance costs primarily resulting from a reduction in workforce, facility consolidation and lease termination costs.

The total costs since inception are approximately $6.8 million consisting of $1.3 million in North American Staffing, $0.7 million in International Staffing, $0.4 million in Technology Outsourcing Services and Solutions and $4.4 million in Corporate and Other.

The Company incurred total restructuring and severance costs of approximately $0.2 million and $1.0 million for the three months ended July 30, 2017 and July 31, 2016, respectively, and $1.1 million and $4.6 million for the nine months ended July 30, 2017 and July 31, ~~2016.~~2016, respectively. The following ~~table presents~~tables present the restructuring and severance costs for the three and nine months ended July ~~31, 2016~~30, 2017 (in thousands):


	Three Months Ended		Nine Months Ended		Three Months Ended July 30, 2017
	July 31, 2016		July 31, 2016		Total		North American Staffing		International Staffing			Technology Outsourcing Services and Solutions		Corporate and Other
Staffing Services segment
Severance and benefit costs	$	571	$	1,928	$	211	$	34	$	7		$	2	$	168
Other	138		293		38		41		(3		)	—		—
	709		2,221
Other segment
Severance and benefit costs	46		934
Corporate
Severance and benefit costs	215		1,416
Total restructuring and severance costs	$	970	$	4,571

Consolidated
Severance and benefit costs	$	832	$	4,278
Other	138		293
Total restructuring and severance costs	$	970	$	4,571
Total costs					$	249	$	75	$	4		$	2	$	168



	Nine Months Ended July 30, 2017
	Total		North American Staffing		International Staffing			Technology Outsourcing Services and Solutions		Corporate and Other
Severance and benefit costs	$	998	$	131	$	24		$	39	$	804
Other	74		84		(10		)	—		—
Total costs	$	1,072	$	215	$	14		$	39	$	804

Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Condensed Consolidated Balance Sheets. Activity for the nine months ended July ~~31, 2016~~30, 2017 are summarized as follows (in thousands):


				July 30, 2017
Balance at November 1, 2015	$	—
Beginning balance				$	1,653
Charged to expense	4,571			1,072
Cash payments	(3,607		)	(2,111		)
Balance at July 31, 2016	$	964
Ending balance				$	614

The remaining charges as of July ~~31, 2016 for the Staffing Services~~30, 2017 of $0.6 million, primarily related to Corporate and Other, ~~segments as well as Corporate of $0.7 million, $0.1 million and $0.2 million, respectively,~~ are expected to be paid ~~during~~through the second quarter of fiscal ~~2016 and 2017.~~2018.

NOTE 13: Commitments and Contingencies


~~(a)~~	~~Legal Proceedings~~

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~~a majority of which generally consist of employment-related claims involving contingent ~~worker employment matters in the Staffing Services segment.~~workers. 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.

Other Matters

In August 2017, the Company determined that it will need to perform recalculations in connection with its compliance testing on its 401(k) plans for certain prior periods, which will result in the Company making additional contributions to such plans. The Company is currently in the process of conducting an assessment and, at this time, is unable to reasonably estimate the amount or range of such contributions. The Company anticipates completing its internal assessment of the matter in the fourth quarter of fiscal 2017.

NOTE 14: Segment Data

The ~~Company’s~~Company changed its operating and reportable segments during the fourth quarter of fiscal 2016. Our current reportable segments are ~~determined~~(i) North American Staffing, (ii) International Staffing and (iii) Technology Outsourcing Services and Solutions. The non-reportable businesses are combined and disclosed with corporate services under the category Corporate and Other. Accordingly, all prior periods have been recast to reflect the current segment presentation. The change in ~~accordance with the Company’s internal management structure, which is based on operating activities. The Company is currently assessing potential changes to its~~ reportable segments ~~in fiscal 2016 based~~did not have any impact on ~~the new management organization and the changes anticipated by implementing new business strategies, including the initiatives to exit non-strategic and non-core operations.~~previously reported consolidated financial results.

Segment operating income (loss) is comprised of segment net ~~revenues~~revenue less ~~direct~~ cost of ~~staffing~~ services, ~~revenue or cost of other revenue,~~ selling, administrative and other operating costs, impairment charges and restructuring and severance costs. The Company allocates to the segments all operating costs ~~to the segments~~ except for costs not directly ~~relating~~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 ~~they~~ are not used by management to measure segment performance.

~~Commencing~~

Effective in the first quarter of fiscal ~~2016,~~2017, in an effort to simplify and refine its internal reporting, the Company ~~changed~~modified its ~~methodology~~intersegment sales structure between North American Staffing and Technology Outsourcing Services and Solutions segments. The resulting changes are as follows:

Intersegment revenue for North American Staffing from Technology Outsourcing Services and Solutions is now based on a set percentage of direct labor dollars for recruiting and administrative services; and

The direct labor costs associated with the ~~allocation~~contingent employees placed by North American Staffing on behalf of ~~costs to more effectively reflect~~Technology, Outsourcing Services and ~~measure~~Solutions’ customers are now directly borne by the ~~individual businesses' financial~~Technology Outsourcing Services and ~~operational efficiency. Prior~~Solutions segment instead of by North American Staffing.

To provide period over period comparability, the Company has reclassified the prior period segment data to conform to the current presentation. This change does not have any impact on the consolidated financial results ~~have been revised~~ for ~~these changes.~~any period presented.

Financial data ~~concerning~~pertaining to the Company’s segment revenue and ~~segment~~ operating income (loss) ~~by reportable operating segment~~as well as results from Corporate and Other for the three and nine months ended July 30, 2017 and July 31, 2016 ~~and August 2, 2015~~ are summarized in the following tables (in thousands):

Three Months Ended July 31, 2016
Total Staffing Services Other
Net revenue $ 330,490
$ 313,428
$ 17,062
Expenses
Direct cost of staffing services revenue 266,684
266,684
—
Cost of other revenue 15,110
—
15,110
Selling, administrative and other operating costs 41,367
39,926
1,441
Restructuring and severance costs 755
709
46
Segment operating income 6,574

6,109

465
Corporate general and administrative 8,345

Corporate restructuring and severance costs 215

Operating loss $ (1,986 )

Three Months Ended August 2, 2015
Total Staffing Services Other
Net revenue $ 364,668
$ 341,383
$ 23,285
Expenses
Direct cost of staffing services revenue 287,554
287,554
—
Cost of other revenue 19,696
—
19,696
Selling, administrative and other operating costs 46,950
43,197
3,753
Restructuring and severance costs
400
341
59
Impairment charges 580
2,130
(1,550 )
Segment operating income 9,488
8,161
1,327
Corporate general and administrative 11,075

Corporate restructuring costs 1,467

Operating loss $ (3,054 )

Nine Months Ended July 31, 2016
Total Staffing Services Other
Net revenue $ 992,759
$ 939,356
$ 53,403
Expenses
Direct cost of staffing services revenue 798,682
798,682
—
Cost of other revenue 47,785
—
47,785
Selling, administrative and other operating costs 127,042
122,676
4,366
Restructuring and severance costs 3,155
2,221
934
Segment operating income 16,095
15,777
318
Corporate general and administrative 26,977

Corporate restructuring and severance costs 1,416

Gain on sale of building (1,663 )
Operating loss $ (10,635 )



	Three Months Ended July 30, 2017
	Total			North American Staffing		International Staffing		Technology Outsourcing Services and Solutions		Corporate and Other (1)			Eliminations (2)
Net revenue	$	289,924		$	229,372	$	29,018	$	24,323	$	9,042		$	(1,831	)
Cost of services	244,205			194,594		24,459		19,788		7,195			(1,831		)
Gross margin	45,719			34,778		4,559		4,535		1,847			—

Selling, administrative and other operating costs	46,931			28,962		3,824		3,561		10,584			—
Restructuring and severance costs	249			75		4		2		168			—
Operating income (loss)	(1,461		)	5,741		731		972		(8,905		)	—
Other income (expense), net	(2,983		)
Income tax provision	1,074
Net loss	$	(5,518	)

Nine Months Ended August 2, 2015
Total Staffing Services Other
Net revenue $ 1,132,923
$ 1,064,481
$ 68,442
Expenses
Direct cost of staffing services revenue 900,909
900,909
—
Cost of other revenue 59,210
—
59,210
Selling, administrative and other operating costs 148,354
137,721
10,633
Restructuring and severance costs
651
616
35
Impairment charges 5,954
3,107
2,847
Segment operating income (loss) 17,845
22,128
(4,283 )
Corporate general and administrative 29,873

Corporate restructuring and severance costs 2,442

Operating loss $ (14,470 )



	Three Months Ended July 31, 2016
	Total			North American Staffing		International Staffing		Technology Outsourcing Services and Solutions			Corporate and Other (1)			Eliminations (2)
Net revenue	$	330,625		$	249,730	$	32,565	$	23,857		$	27,206		$	(2,733	)
Cost of services	282,098			211,806		27,672		21,820			23,533			(2,733		)
Gross margin	48,527			37,924		4,893		2,037			3,673			—

Selling, administrative and other operating costs	49,543			30,757		3,888		2,929			11,969			—
Restructuring and severance costs	970			482		138		—			350			—
Operating income (loss)	(1,986		)	6,685		867		(892		)	(8,646		)	—
Other income (expense), net	(2,231		)
Income tax provision	393
Net loss	$	(4,610	)



	Nine Months Ended July 30, 2017
	Total			North American Staffing			International Staffing		Technology Outsourcing Services and Solutions		Corporate and Other (1)			Eliminations (2)
Net revenue	$	905,953		$	695,041		$	89,599	$	74,493	$	51,371		$	(4,551	)
Cost of services	766,225			592,504			75,786		60,196		42,290			(4,551		)
Gross margin	139,728			102,537			13,813		14,297		9,081			—

Selling, administrative and other operating costs	146,992			90,695			11,895		10,625		33,777			—
Restructuring and severance costs	1,072			215			14		39		804			—
Impairment charge	290			—		—	—		—		290			—
Gain from divestitures	(3,938		)	—			—		—		(3,938		)	—
Operating income (loss)	(4,688		)	11,627			1,904		3,633		(21,852		)	—
Other income (expense), net	(5,331		)
Income tax provision	930
Net loss	$	(10,949	)



	Nine Months Ended July 31, 2016
	Total			North American Staffing		International Staffing		Technology Outsourcing Services and Solutions		Corporate and Other (1)			Eliminations (2)
Net revenue	$	993,169		$	739,186	$	99,766	$	76,052	$	87,201		$	(9,036	)
Cost of services	847,602			633,139		85,133		63,583		74,783			(9,036		)
Gross margin	145,567			106,047		14,633		12,469		12,418			—

Selling, administrative and other operating costs	153,294			92,418		12,453		9,833		38,590			—
Restructuring and severance costs	4,571			1,074		608		225		2,664			—
Gain from divestitures	(1,663		)	—		—		—		(1,663		)	—
Operating income (loss)	(10,635		)	12,555		1,572		2,411		(27,173		)	—
Other income (expense), net	(4,685		)
Income tax provision	2,037
Net loss	$	(17,357	)

(1) Revenues are primarily derived from managed service programs and information technology infrastructure services through the date of the sale of Maintech.

(2) The majority of intersegment sales results from North American Staffing providing resources to Technology Outsourcing Services and Solutions.

NOTE 15: Subsequent ~~Event~~Events

On ~~September 6, 2016,~~August 25, 2017, the Company ~~amended~~entered into Amendment No. 8 to its Receivables Financing Agreement with PNC dated as of July 30, 2015.

Amendment No. 8 amends Section 8.04 of the Financing Program to ~~increase~~adjust its financial covenants by: (1) lowering the ~~facility limit~~required Liquidity Level amount, as defined therein, to $5.0 million from ~~$150.0~~$25.0 million, ~~to $160.0~~and (2) lowering minimum targets for the Company’s earnings before interest and taxes for its fiscal quarter ended July 30, 2017 and its fiscal quarter ending October 29, 2017. Amendment No. 8 also establishes a minimum $10.0 million ~~under the expandable accordion feature in the program. The Company entered into this amendment to utilize the additional~~block on our borrowing ~~base provided by~~availability through the current ~~and potential growth in eligible accounts receivable balances.~~term of the Financing Program.

On September 7, 2016, the Company's Human Resources and Compensation Committee of the Board of Directors approved the Volt Information Sciences, Inc. Annual Incentive Plan ("AIP"). The purpose of the AIP is to provide eligible employees with annual compensation opportunities intended to promote and reward both company and individual performances that are aligned with the overall company strategy.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis (“MD&A”) of financial condition and results of operations is provided as a supplement to and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes to enhance the understanding of our results of operations, financial condition and cash flows. This MD&A should be read in conjunction with the MD&A included in our Form 10-K for the fiscal year ended ~~November 1, 2015,~~October 30, 2016, as filed with the SEC on January ~~13, 2016~~11, 2017 (the ~~“2015~~“2016 Form 10-K”). References in this document to “Volt,” “Company,” “we,” “us” and “our” mean Volt Information Sciences, Inc. and our consolidated subsidiaries, unless the context requires otherwise. The statements below should also be read in conjunction with the description of the risks and uncertainties set forth from time to time in our reports and other filings made with the SEC, including under Part I, “Item 1A. Risk Factors” of the ~~2015~~2016 Form 10-K.

Note Regarding the Use of Non-GAAP Financial Measures

We have provided certain Non-GAAP financial information, which includes adjustments for special items and certain line items on a constant currency basis, as additional information for segment revenue, our consolidated net income (loss) ~~from continuing operations~~ and segment operating income (loss). These measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies. We believe that the presentation of Non-GAAP measures on a constant currency basis and eliminating special items provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations because ~~it permits~~they permit evaluation of the results of our ~~continuing~~ operations without the effect of currency fluctuations or special items that management believes make it more difficult to understand and evaluate our results of operations.

Special items generally include ~~impairments,~~impairment, restructuring and severance costs, as well as certain ~~expenses~~income or ~~income~~expenses not indicative of our current or future period performance. In addition, as a result of our ~~Company's~~Company’s strategic reorganization, which included changes to executive management and the Board of Directors, as well as the ongoing execution of new strategic initiatives, certain charges were identified as ~~"special items"~~“special items” which were not historically common operational expenditures for us. Such charges included professional search fees, certain board compensation and other professional service fees. While we believe that the inclusion of these charges as special items ~~were~~is useful in the evaluation of our results compared to prior periods, we do not anticipate that these items will be included in our Non-GAAP ~~measure comparative~~measures in the future.

Segments

We changed our operating and reportable segments during the fourth quarter of fiscal 2016. Our current reportable segments are (i) North American Staffing, (ii) International Staffing and (iii) Technology Outsourcing Services and Solutions. The non-reportable businesses are combined and disclosed with corporate services under the category Corporate and Other.

We report our segment information in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 280, Segment Reporting. The financial information presented below for the third quarter and first nine months of fiscal 2016 has been restated as required to reflect our new segment structure as if the structure were in place during that period. There has been no change in our total consolidated financial condition or results of operations previously reported as a result of the change in our segment structure. See Note 14, “Segment Data” for further information.

Overview

We are a global provider of staffing services (traditional time and materials-based as well as project-based), and information technology infrastructure ~~services.~~services through the date of the sale of Maintech, Incorporated (“Maintech”) in March 2017. 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 ~~professional administration,~~(“commercial”) as well as technical, information technology and engineering (“professional”) positions. Our ~~project-based staffing assists~~technology outsourcing services assist with individual customer assignments, as well as customer care call centers and gaming industry quality assurance testing services. Our managed service programs (“MSP”) consist of managing the procurement and on-boarding of contingent workers from multiple providers. Our information technology infrastructure services ~~(“Maintech”) provide~~provided server, storage, network and desktop IT hardware maintenance, data center and network monitoring and operations.

As of July ~~31, 2016,~~30, 2017, we employed approximately ~~26,000~~23,700 people, including ~~23,800~~22,100 contingent workers. Contingent workers are on our payroll for the length of their assignment. We operate ~~from 110~~in approximately 100 locations worldwide with approximately ~~85%~~86% of our revenues generated in the United States. Our principal international markets include Canada, Europe and several Asia Pacific locations. The industry is highly fragmented and very competitive in all of the markets we serve.

~~Results of Continuing Operations~~

~~The following discussion~~Recent Developments

On August 25, 2017, we entered into Amendment No. 8 to our Financing Program which adjusts our financial covenants by: (1) lowering the required liquidity level amount, as defined therein, to $5.0 million from $25.0 million, and ~~analysis~~(2) lowering minimum targets for the Company’s earnings before interest and taxes for our fiscal quarter ended July 30, 2017 and our fiscal quarter ending October 29, 2017. Amendment No. 8 also establishes a minimum $10.0 million block on our borrowing availability through the current term of ~~operating results is presented at~~ the ~~reporting segment level. Since this discussion would be substantially the same at the consolidated level, we have therefore not included a redundant discussion.~~ Financing Program.

~~RESULTS OF CONTINUING OPERATIONS~~

Consolidated Results by Segment

Three Months Ended July 31, 2016 Three Months Ended August 2, 2015
(in thousands) Total Staffing Services Other Total Staffing Services Other
Net revenue $ 330,490
$ 313,428
$ 17,062
$ 364,668
$ 341,383
$ 23,285

Expenses
Direct cost of staffing services revenue 266,684
266,684
—
287,554
287,554
—
Cost of other revenue 15,110
—
15,110
19,696
—
19,696
Selling, administrative and other operating costs 41,367
39,926
1,441
46,950
43,197
3,753
Restructuring and severance costs 755
709
46
400
341
59
Impairment charges —
—
—
580
2,130
(1,550 )
Segment operating income 6,574

6,109

465

9,488

8,161

1,327
Corporate general and administrative 8,345
11,075

Corporate restructuring and severance costs 215
1,467

Operating loss (1,986 )

(3,054 )
Other income (expense), net (2,231 ) 261

Income tax provision 393
1,351

Net loss from continuing operations $ (4,610 )

$ (4,144 )



	Three Months Ended July 30, 2017
(in thousands)	Total			North American Staffing		International Staffing		Technology Outsourcing Services and Solutions		Corporate and Other (1)			Eliminations (2)
Net revenue	$	289,924		$	229,372	$	29,018	$	24,323	$	9,042		$	(1,831	)
Cost of services	244,205			194,594		24,459		19,788		7,195			(1,831		)
Gross margin	45,719			34,778		4,559		4,535		1,847			—

Selling, administrative and other operating costs	46,931			28,962		3,824		3,561		10,584			—
Restructuring and severance costs	249			75		4		2		168			—
Operating income (loss)	(1,461		)	5,741		731		972		(8,905		)	—
Other income (expense), net	(2,983		)
Income tax provision	1,074
Net loss	$	(5,518	)



	Three Months Ended July 31, 2016
(in thousands)	Total			North American Staffing		International Staffing		Technology Outsourcing Services and Solutions			Corporate and Other (1)			Eliminations (2)
Net revenue	$	330,625		$	249,730	$	32,565	$	23,857		$	27,206		$	(2,733	)
Cost of services	282,098			211,806		27,672		21,820			23,533			(2,733		)
Gross margin	48,527			37,924		4,893		2,037			3,673			—

Selling, administrative and other operating costs	49,543			30,757		3,888		2,929			11,969			—
Restructuring and severance costs	970			482		138		—			350			—
Operating income (loss)	(1,986		)	6,685		867		(892		)	(8,646		)	—
Other income (expense), net	(2,231		)
Income tax provision	393
Net loss	$	(4,610	)

(1) Revenues are primarily derived from managed service programs and information technology infrastructure services through the date of sale of Maintech.

(2) The majority of intersegment sales results from North American Staffing providing resources to Technology Outsourcing Services and Solutions.

Results of Operations by Segment (Q3 ~~2016~~2017 vs. Q3 ~~2015)~~2016)

Net Revenue

~~Staffing Services~~

Net ~~revenue: The segment’s net~~ revenue in the third quarter of fiscal ~~2016~~2017 decreased ~~$28.0~~$40.7 million, or ~~8.2%~~12.3%, to ~~$313.4~~$289.9 million from ~~$341.4~~$330.6 million in fiscal 2015. The revenue decline was primarily driven by our traditional staffing, project-based and managed services programs. In our traditional staffing offering, we experienced both lower demand from our customers in our technical skill sets as well as a change in the overall mix from technical to A&I skill sets. Declines were most prevalent with our customers in the industrial and commercial manufacturing and utility industries, partially offset by increases in transportation manufacturing, communications and retail apparel industries. Project-based programs experienced decreases primarily attributed to lower volume from a large customer in both our application testing and call center service offerings. Managed services programs experienced a decrease primarily due to lower volume as well as our decision not to pursue continued business with certain customers. Additionally, the decrease was partially attributed to unprofitable businesses that were either sold or shutdown during the latter part of 2015 and in 2016.

~~Direct cost of staffing services revenue: Direct cost of staffing services revenue~~ in the third quarter of ~~2016~~fiscal 2016. The revenue decline was driven by decreases in our North American Staffing segment of $20.3 million, a decrease from the sale of Maintech of $17.1 million, as well as both decreases of $2.2 million and the impact of foreign exchange rate fluctuations of $1.3 million in our International Staffing segment.

North American Staffing segment revenue decreased ~~$20.9~~$20.3 million, or ~~7.3%~~8.2%, driven by lower demand from customers in both our professional and commercial job families, largely associated within the aerospace industry and a significant change in a transportation manufacturing client’s contingent labor strategy.

International Staffing segment revenue decreased $3.5 million, or 10.9%, driven by lower demand due in part to economic softening in the United Kingdom. This decrease was offset by increases in Belgium and the impact of foreign exchange rate fluctuations of $1.3 million. On a constant currency basis, International Staffing revenue decreased year-over-year by $2.2 million or 7.2%.

Technology Outsourcing Services and Solutions segment revenue increased $0.5 million, or 2.0%, primarily due to an increase in the customer care call center services, partially offset by lower volume in our quality assurance testing services.

Corporate and Other category revenue decrease of $18.2 million was primarily attributable to a $17.1 million decline as a result of the sale of Maintech in March 2017.

Cost of Services and Gross Margin

Cost of services in the third quarter of fiscal 2017 decreased $37.9 million, or 13.4%, to ~~$266.7~~$244.2 million from ~~$287.6~~$282.1 million in ~~2015. The~~the third quarter of fiscal 2016. This decrease was primarily the result of fewer ~~contingent~~ staff on assignment, ~~within~~consistent with the related decrease in revenues in our ~~traditional~~two staffing ~~business~~services segments as well as a ~~reduction~~decrease in ~~revenues~~Corporate and Other due to the sale of Maintech in ~~our project-based and managed services programs. Direct~~March 2017. Gross margin ~~of staffing services revenue~~ as a percent of ~~staffing~~revenue in the third quarter of fiscal 2017 increased to 15.8% from 14.7% in the third quarter of fiscal 2016. This increase was primarily attributable to our Technology Outsourcing Services and Solutions segment, which experienced higher costs in the third quarter of fiscal 2016 on several lower margin quality assurance testing projects as well as improved margins on certain customer care call center projects in fiscal 2017. In addition, the increase in gross margin as a percent of revenue was ~~14.9% compared~~attributable to the sale of non-core businesses in fiscal 2017 and 2016. Excluding these businesses, gross margin increased to 15.8% ~~in 2015. Despite an increase in our traditional staffing direct margin percentage~~ from ~~2015, the decline in direct margin percentage was primarily experienced in our higher margin project-based programs.~~14.9%.

Selling, Administrative and Other Operating Costs

Selling, ~~administrative and other operating costs: The segment’s selling,~~ administrative and other operating costs in the third quarter of ~~2016~~fiscal 2017 decreased ~~$3.3~~$2.6 million, or ~~7.6%~~5.3%, to ~~$39.9~~$46.9 million from ~~$43.2~~$49.5 million in 2015, primarily due to lower headcount as part of our cost reduction efforts across all businesses and the impact of the sale of our Uruguayan staffing business during the first quarter of 2016. As a percent of staffing revenue, these costs were 12.7% in both the third quarter of 2016 and 2015.

~~Impairment charges~~: The $2.1 million impairment charge during 2015 is primarily related to an impairment of previously capitalized internally developed software as it was no longer expected to provide future value in light of an anticipated technology upgrade.

~~Segment operating income: The segment’s operating income~~ in the third quarter of ~~2016 decreased $2.1 million to $6.1 million from $8.2 million in 2015. The~~fiscal 2016. This decrease ~~in operating income is~~was primarily due to the sale of Maintech of $1.5 million, the release of a ~~decline~~reserve related to the dissolution of the Employee Welfare Benefit Trust of $1.4 million and on-going cost reductions in all areas of the business offset by higher depreciation and software license expenses related to completion of the first phase of the upgrade of our back-office financial suite and information technology tools. As a percent of revenue, these costs were 16.2% and 15.0% in the ~~results~~third quarter of ~~our project-based programs~~fiscal 2017 and ~~managed services programs due to~~2016, respectively. Excluding the ~~decline in revenue~~$1.5 million from the sale of Maintech and ~~related direct margin, partially offset by~~ the ~~increase in direct margins in our traditional staffing services, reductions in~~$1.4 million release of the reserve, selling, administrative and other operating costs ~~as well as impairment charges.~~increased $0.3 million, or 0.7%.

Restructuring and Severance Costs

~~Operating income~~The Company implemented a cost reduction plan in the first quarter of fiscal 2016, ~~of $6.1 million included $0.7 million of a special item related~~and incurred restructuring and severance ~~costs. Excluding~~costs of $0.2 million and $1.0 million in the ~~impact~~third quarter of ~~this special item, segment operating income would have been $6.8~~fiscal 2017 and 2016, respectively, primarily resulting from a reduction in workforce.

Other Income (Expense), net

Other expense in the third quarter of fiscal 2017 increased $0.8 million, ~~on a Non-GAAP basis. Operating income in 2015 of $8.2~~or 33.7%, to $3.0 million ~~included $2.5~~from $2.2 million of special items related to impairment charges and restructuring and severance costs. Excluding the impact of these special items, segment operating income would have been $10.7 million on a Non-GAAP basis.

~~Other~~

~~Net revenue: The segment’s net revenue~~ in the third quarter of fiscal 2016, ~~decreased $6.2 million, or 26.7%,~~primarily related to ~~$17.1 million from $23.3 million in fiscal 2015. This decline is primarily due~~non-cash net foreign exchange loss on intercompany balances.

Income Tax Provision

Income taxes amounted to ~~the sale~~a provision of our telephone directory publishing and printing business (“printing”) in the third quarter of 2015 and the sale of substantially all of the assets of the telecommunications infrastructure and security services business (“VTG”) in the fourth quarter of 2015. The remaining decrease was attributable to our information technology infrastructure services business due in part to lower volume from one of our aeronautical defense contractor customers resulting from decreased federal funding as well as in our sub-contractor revenue solution as the prime contractor was not awarded contract renewals.

~~Cost of other revenue~~: The segment’s cost of other revenue in the third quarter of 2016 decreased $4.6 million, or 23.3%, to $15.1 million from $19.7 million in 2015. This decrease is primarily due to the sale of our printing and VTG businesses as discussed above as well as the decrease in our information technology infrastructure services business.

~~Selling, administrative and other operating costs: The segment’s selling, administrative and other operating costs decreased $2.4 million, or 61.6%, to $1.4~~$1.1 million in the third quarter of ~~2016 from $3.8 million in 2015, primarily in our information technology infrastructure services business in response to the decrease in revenue~~fiscal 2017 and ~~lower legal fees as well as the sales of our printing and VTG businesses as discussed above.~~

~~Impairment charges~~: In the third quarter of 2015, an adjustment of $1.6 million was recorded to the impairment charge recorded in the second quarter of 2015 related to valuation allowances on impaired deferred tax assets.

~~Segment operating income~~: The segment’s operating income in the third quarter of 2016 decreased $0.8 million to $0.5 million from $1.3 million in 2015 primarily from the impairment charge recorded in 2015 as well as the sale of our printing business.

~~Corporate and Other Expenses~~

~~Corporate general and administrative:~~ Corporate general and administrative costs in the third quarter of 2016 decreased $2.8 million, or 24.7%, to $8.3 million from $11.1 million in 2015 primarily from decreased stock-based compensation as compared to the amount provided to our new Board of Directors in 2015 and professional fees.

~~Operating loss~~: Operating loss in the third quarter of 2016 decreased to $2.0 million from $3.1 million in 2015. This decrease was primarily from a reduction of our Corporate general and administrative costs, decreased restructuring and severance costs as well as the absence of impairment charges in the third quarter of 2016, partially offset by a decrease in operating results from our Staffing Services segment.

~~Other income (expense), net~~: Other income (expense) in the third quarter of 2016 decreased $2.5 million to other expense of $2.2 million from other income of $0.3 million in 2015, primarily related to fluctuation in European currency rates, closure of a foreign subsidiary and non-cash foreign exchange net losses on intercompany balances.

~~Income tax provision: Income tax provision was~~ $0.4 ~~million compared to $1.4~~ million in the third quarter of ~~2016 and 2015, respectively.~~fiscal 2016. The provision in ~~both periods~~the third quarter of fiscal 2017 and 2016 primarily related to locations outside of the United States. In the third quarter of fiscal 2017, the income tax provision was higher than the comparable 2016 period due to the timing of profits in foreign jurisdictions.

Consolidated Results by Segment

Nine Months Ended July 31, 2016 Nine Months Ended August 2, 2015
(in thousands) Total Staffing Services Other Total Staffing Services Other
Net revenue $ 992,759
$ 939,356
$ 53,403
$ 1,132,923
$ 1,064,481
$ 68,442

Expenses
Direct cost of staffing services revenue 798,682
798,682
—
900,909
900,909
—
Cost of other revenue 47,785
—
47,785
59,210
—
59,210
Selling, administrative and other operating costs 127,042
122,676
4,366
148,354
137,721
10,633
Restructuring and severance costs 3,155
2,221
934
651
616
35
Impairment charges —
—
—
5,954
3,107
2,847
Segment operating income (loss) 16,095
15,777
318
17,845
22,128
(4,283 )
Corporate general and administrative 26,977
29,873

Corporate restructuring and severance costs 1,416
2,442

Gain on sale of building (1,663 ) —

Operating loss (10,635 ) (14,470 )
Other income (expense), net (4,685 ) (2,125 )
Income tax provision 2,037
3,262

Net loss from continuing operations $ (17,357 ) $ (19,857 )



	Nine Months Ended July 30, 2017
(in thousands)	Total			North American Staffing		International Staffing		Technology Outsourcing Services and Solutions		Corporate and Other (1)			Eliminations (2)
Net revenue	$	905,953		$	695,041	$	89,599	$	74,493	$	51,371		$	(4,551	)
Cost of services	766,225			592,504		75,786		60,196		42,290			(4,551		)
Gross margin	139,728			102,537		13,813		14,297		9,081			—

Selling, administrative and other operating costs	146,992			90,695		11,895		10,625		33,777			—
Restructuring and severance costs	1,072			215		14		39		804			—
Impairment charge	290			—		—		—		290			—
Gain from divestitures	(3,938		)	—		—		—		(3,938		)	—
Operating income (loss)	(4,688		)	11,627		1,904		3,633		(21,852		)	—
Other income (expense), net	(5,331		)
Income tax provision	930
Net loss	$	(10,949	)



	Nine Months Ended July 31, 2016
(in thousands)	Total			North American Staffing		International Staffing		Technology Outsourcing Services and Solutions		Corporate and Other (1)			Eliminations (2)
Net revenue	$	993,169		$	739,186	$	99,766	$	76,052	$	87,201		$	(9,036	)
Cost of services	847,602			633,139		85,133		63,583		74,783			(9,036		)
Gross margin	145,567			106,047		14,633		12,469		12,418			—

Selling, administrative and other operating costs	153,294			92,418		12,453		9,833		38,590			—
Restructuring and severance costs	4,571			1,074		608		225		2,664			—
Gain from divestitures	(1,663		)	—		—		—		(1,663		)	—
Operating income (loss)	(10,635		)	12,555		1,572		2,411		(27,173		)	—
Other income (expense), net	(4,685		)
Income tax provision	2,037
Net loss	$	(17,357	)

(1) Revenues are primarily derived from managed service programs and information technology infrastructure services through the date of sale of Maintech.

(2) The majority of intersegment sales results from North American Staffing providing resources to Technology Outsourcing Services and Solutions.

Results of Operations by Segment (Q3 ~~2016~~2017 YTD vs. Q3 ~~2015~~2016 YTD)

Net Revenue

~~Staffing Services~~

Net ~~revenue: The segment’s net~~ revenue in the first nine months of fiscal ~~2016~~2017 decreased ~~$125.1~~$87.2 million, or ~~11.8%~~8.8%, to ~~$939.4~~$906.0 million from ~~$1,064.5~~$993.2 million in the first nine months of fiscal ~~2015.~~2016. The revenue decline ~~is primarily~~was driven by decreases in our ~~traditional staffing, project-based and managed services programs. In our traditional staffing offering, we experienced both~~North American Staffing segment of $44.2 million, a decrease from the sale of Maintech of $30.2 million as well as the impact of foreign exchange rate fluctuations of $9.0 million.

North American Staffing segment revenue decreased $44.2 million, or 6.0% driven by lower demand from ~~our~~ customers in both our ~~technical~~professional and ~~non-technical A&I skill sets~~commercial job families, largely associated within the aerospace industry. However, our year-over-year decrease in revenue declined from 7.7% in the first nine months of fiscal 2016 to 6.0% in the first nine months of fiscal 2017.

International Staffing segment revenue decreased $10.2 million, or 10.2% primarily driven by the impact of foreign exchange rate fluctuations of $9.0 million, as well as the impact of countries in which we no longer have operations of $1.1 million. On a ~~change~~constant currency basis and excluding the impact of countries in ~~overall mix from technical~~which we no longer have operations, International Staffing revenue decreased

slightly year-over-year by $0.5 million, or 0.1%, primarily due to ~~A&I skill sets. Declines were most prevalent with our customers~~lower demand related in part to economic softening in the ~~industrial and commercial manufacturing (primarily supporting the oil and gas industry) and utility industries,~~United Kingdom partially offset by increases in ~~transportation manufacturing, communications~~Belgium.

The Technology Outsourcing Services and ~~retail apparel industries. Project-based programs experienced decreases~~Solutions segment revenue decreased $1.6 million, or 2.0%, primarily ~~attributed~~due to lower volume ~~from a large~~in our quality assurance testing services, partially offset by an increase in our customer ~~in both our application testing and~~care call center ~~service offerings. Managed services programs experienced~~services.

The Corporate and Other category revenue decrease of $35.8 million was primarily attributable to a $30.2 million decline as a result of the sale of Maintech in March 2017 and a $4.4 million decline in our North American MSP business due to lower volume as well as contracts that were not renewed in the latter half of fiscal 2016.

Cost of Services and Gross Margin

Cost of services in the first nine months of fiscal 2017 decreased $81.4 million, or 9.6%, to $766.2 million from $847.6 million in the first nine months of fiscal 2016. This decrease was primarily the result of fewer staff on assignment, consistent with the related decrease in revenues in all segments as well as a decrease ~~primarily from our decision not~~in Corporate and Other due to ~~pursue continued business with certain customers. Additionally,~~ the ~~decrease was partially attributed to unprofitable businesses that were either sold or shutdown during the latter part~~sale of ~~2015 and~~Maintech in ~~2016.~~

~~Direct cost~~March 2017. Gross margin as a percent of ~~staffing services revenue: Direct cost of staffing services~~ revenue in the first nine months of ~~2016 decreased $102.2 million, or 11.3%,~~fiscal 2017 increased to ~~$798.7 million~~15.4% from ~~$900.9 million~~14.7% in ~~2015.~~the first nine months of fiscal 2016. The ~~decrease was primarily the result of fewer contingent staff on assignment within our traditional staffing business as well as a reduction~~increase in ~~revenues in our project-based and managed services programs. Direct~~gross margin ~~of staffing services revenue~~ as a percent of ~~staffing~~ revenue was in ~~2016 was 15.0%~~part due to the sale of non-core businesses in fiscal 2017 and 2016. Excluding these businesses, gross margin in the first nine months of fiscal 2017 increased to 15.5% from ~~15.4%~~14.9% in ~~2015. Despite a slight~~the first nine months of fiscal 2016. The increase in ~~our traditional staffing direct~~gross margin ~~percentage from 2015, the decline in direct margin percentage~~ was primarily ~~experienced~~ in our Technology Outsourcing Services and Solutions segment, which experienced higher costs in the first nine months of fiscal 2016 on several lower margin ~~project-based programs.~~quality assurance testing projects and improved margins on certain customer call care projects in fiscal 2017. Higher gross margins were also driven by our North American Staffing segment due in part to favorable workers’ compensation experience and a reduction in lower margin subcontractor revenue.

Selling, Administrative and Other Operating Costs

Selling, ~~administrative and other operating costs: The segment’s selling,~~ administrative and other operating costs in the first nine months of ~~2016~~fiscal 2017 decreased ~~$15.0~~$6.3 million, or ~~10.9%~~4.1%, to ~~$122.7~~$147.0 million from $137.7 million in 2015, primarily due to lower headcount as part of our cost reduction efforts across all businesses and the impact of the sale of our Uruguayan staffing business during the first quarter of 2016. As a percent of staffing services revenue, these costs were 13.1% and 12.9% for 2016 and 2015, respectively.

~~Restructuring and severance costs: The segment's restructuring and severance costs were $2.2 million and $0.6~~$153.3 million in the first nine months of ~~2016 and 2015, respectively. These costs, primarily severance, were incurred as part of our overall cost reduction plan.~~

~~Impairment charges~~: The $3.1 million charge during 2015 is a result of impairment of previously capitalized internally developed software resulting from an approved plan to upgrade a certain portion of our front office technology as well as our annual impairment test for goodwill during the second quarter of 2015 related to our staffing reporting unit in Uruguay.

~~Segment operating income: The segment’s operating income in the first nine months of 2016 decreased $6.3 million to $15.8 million from $22.1 million in 2015. The~~fiscal 2016. This decrease ~~in operating income is~~was primarily due to on-going cost reductions in all areas of the business and the sale of Maintech and other non-core businesses sold of $3.1 million and the release of a ~~decline in the results of our project-based programs and managed services programs due~~reserve related to the ~~decline in revenue and related direct margin,~~dissolution of the Employee Welfare Benefit Trust of $1.4 million, partially offset by ~~reductions~~higher depreciation and software license expenses related to completion of the first phase of the upgrade of our back-office financial suite and information technology tools. As a percent of revenue, these costs were 16.2% and 15.4% in fiscal 2017 and 2016, respectively. Excluding the $3.1 million from the sale of non-core businesses and the $1.4 million release of the reserve, selling, administrative and other operating costs ~~as well as impairment charges. Operating income~~decreased $1.8 million, or 1.2%.

Restructuring and Severance Costs

The Company implemented a cost reduction plan in the first quarter of fiscal 2016, ~~of $15.8 million included a special item related to~~and incurred restructuring and severance costs of $2.2 million. Excluding the impact of this special item, segment operating income would have been $18.0 million on a Non-GAAP basis. Operating income in 2015 of $22.1 million included $3.7 million of special items related to impairment charges of $3.1$1.1 million and ~~restructuring and severance costs of $0.6 million. Excluding the impact of these special items, segment operating income would have been $25.8~~$4.6 million ~~on a Non-GAAP basis.~~

~~Other~~

~~Net revenue: The segment’s net revenue~~ in the first nine months of fiscal 2017 and 2016, ~~decreased $15.0 million, or 22.0%, to $53.4 million~~respectively, primarily resulting from ~~$68.4 million~~a reduction in ~~fiscal 2015. This decline is primarily due to the sale of our printing business in the third quarter of 2015 and the sale of substantially all~~workforce.

Impairment Charge

The Company determined that a previously purchased software module will not be used as part of the ~~assets~~new back-office financial suite, which resulted in an impairment charge of the VTG business in the fourth quarter of 2015. The remaining decrease was attributable to our information technology infrastructure services business due in part to lower volume from one of our aeronautical defense contractor customers resulting from decreased federal funding as well as in our sub-contractor revenue solution as the prime contractor was not awarded contract renewals.

~~Cost of other revenue~~: The segment’s cost of other revenue in the first nine months of 2016 decreased $11.4 million, or 19.3%, to $47.8 million from $59.2 million in 2015. The decrease is primarily due to the sale of our printing and VTG businesses as discussed above as well as the decrease in our information technology infrastructure services business.

~~Selling, administrative and other operating costs: The segment’s selling, administrative and other operating costs decreased $6.2 million, or 58.9%, to $4.4~~$0.3 million in the first nine months of ~~2016~~fiscal 2017.

Gain from ~~$10.6 million in 2015, primarily from~~Divestitures

In the ~~sales~~second quarter of ~~our printing and VTG businesses as discussed above as well as in our information technology infrastructure services business in response to the decrease in revenue as well as lower legal fees.~~

~~Restructuring and severance costs: The segment's restructuring and severance costs were $0.9 million in the first nine months of 2016. These costs, primarily severance, were incurred in response to the decrease in revenue.~~

~~Impairment charges:~~ ~~In conjunction with the initiative to potentially exit certain non-core operations,~~fiscal 2017, we ~~performed an assessment in 2015 of the telephone directory publishing and printing business in Uruguay. Consequently, the net assets of the business of $2.8 million were fully impaired.~~

~~Segment operating income (loss)~~: The segment’s operating results in the first nine months of 2016 increased $4.6 million to operating income of $0.3 million compared with an operating loss of $4.3 million in 2015 primarily from the impairment charge recorded in 2015,completed the sale of ~~our printing business as well as decreased results in our information technology infrastructure services business primarily from lower volume from one~~Maintech to Maintech Holdings LLC, a newly formed holding company and affiliate of ~~our aeronautical defense contractor customers resulting from decreased federal funding as well as in our sub-contractor revenue solution as~~Oak Lane Partners, LLC and recognized a gain on the ~~prime contractor was not awarded contract renewals.~~sale of $3.9 million.

~~Corporate and Other Expenses~~

~~Corporate general and administrative:~~ Corporate general and administrative costs decreased $2.9 million, or 9.7%, to $27.0 million from $29.9 million in 2015 primarily from a decrease in costs incurred in connection with responding to activist shareholders and related Board of Directors' search fees, decreased stock-based compensation as compared to what was provided to our new Board of Directors in 2015 as well as a decrease in audit fees, partially offset inIn the ~~current year for costs incurred in executive search and consulting fees on corporate-wide initiatives linked to our turn-around strategies.~~

~~Corporate restructuring and severance costs:~~ ~~Corporate restructuring and severance costs in the first nine months~~second quarter of fiscal 2016, included $1.4 million of severance costs incurred as part of our overall cost reduction plan. Corporate restructuring costs in the first nine months of fiscal 2015 included $2.4 million of severance charges associated with the departure of our former Chief Executive Officer and Chief Financial Officer.

~~Gain on sale of building:~~ Volt Opportunity Road Realty Corp., an indirect wholly-owned subsidiary of Volt, ~~closed on the sale of~~sold real property comprised of land and a building in San Diego, ~~California during the second quarter of 2016.~~California. There was no mortgage on the property and the gain recorded on the sale ~~was $1.7 million.~~

~~Operating loss: Operating loss in~~during the first nine months of fiscal 2016 ~~decreased to $10.6 million from $14.5 million in 2015. The decrease in operating loss~~ was ~~primarily from impairments within our Staffing Services and~~ $1.7 million.

Other ~~segments in 2015, the decrease in selling,~~

administrative and other operating costs and the gain on the sale of our building in San Diego, California. These items were partially offset by the decrease in operating results from our Staffing Services segment.

~~Other income (expense)~~Income (Expense), net:

Other expense in the first nine months of ~~2016~~fiscal 2017 increased ~~$2.6~~$0.6 million, or 13.8%, to ~~$4.7~~$5.3 million from ~~$2.1 million in 2015, primarily due to non-cash foreign exchange net losses on intercompany balances as well as the amortization of deferred financing fees.~~

~~Income tax provision: Income tax provision was $2.0 million compared to $3.3~~$4.7 million in the first nine months of fiscal 2016, primarily related to non-cash net foreign exchange loss on intercompany balances and ~~2015, respectively.~~increased interest expense.

Income Tax Provision

Income tax amounted to a provision of $0.9 million in the first nine months of fiscal 2017 and $2.0 million in the first nine months of fiscal 2016. The provision in ~~both periods~~the nine months of fiscal 2017 relates to favorable IRS audit results and the release of uncertain tax positions related to the closure of the IRS audit and associated state audits. The provision in the first nine months of fiscal 2017 and 2016 primarily related to locations outside of the United States.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash flows from operations and proceeds from our ~~Financing Program.~~financing program (the “Financing Program”) with PNC Bank, National Association (“PNC”). Borrowing capacity under this program is directly impacted by the level of accounts receivable which fluctuates during the year due to seasonality and other factors. Our business is subject to seasonality with our fiscal first quarter billings typically the lowest due to the holiday season and generally increasing in the fiscal third and fourth quarters when our customers increase the use of contingent labor. Generally, the first and fourth quarters of our fiscal year are the strongest for operating cash flows. In February 2016, Maintech entered into a $10.0 million short-term credit facility with Bank of America, N.A. (“BofA”), which supplements our existing Financing Program and provides additional liquidity for working capital and general corporate purposes.

Our operating cash flows consist primarily of collections of customer receivables offset by payments for payroll and related items for our contingent staff and in-house employees; federal, foreign, state and local taxes; and trade payables. We generally provide customers with 30 - 45 day credit terms, with few extenuating exceptions, ~~to 60 days,~~ while our payroll and certain taxes are paid weekly.

We manage our cash flow and related liquidity on a global basis. We fund payroll, taxes and other working capital requirements using cash supplemented as needed from short-term borrowings. Our weekly payroll payments inclusive of ~~employment related~~employment-related taxes and payments to vendors ~~approximates~~are approximately $20.0 million. We generally target minimum global liquidity to be 1.5 to 2.0 times our average weekly requirements. We also maintain minimum effective cash balances in foreign operations and use a multi-currency netting and overdraft facility for our European entities to further minimize overseas cash requirements.

Our current Financing Program provides for a minimum liquidity covenant which is measured weekly and consists of cash in banks plus undrawn amounts of the program. Under the current amendment to our Financing Program, the required minimum liquidity covenant level is $35.0 million through the earlier of 1) the date of the sale of the Company's subsidiary, Maintech, if such sale is closed on or before September 30, 2016, and 2) October 30, 2016, thereafter it increases to $50.0 million. This places restrictions on our ability to utilize this cash. As of July 31, 2016, our global liquidity, as defined in our debt agreement, was $49.3 million and at September 2, 2016 was $43.2 million. On September 6, 2016, we amended our Financing Program to increase the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. We entered into this amendment to utilize the additional borrowing base provided by the current and potential growth in eligible accounts receivable balances.

Our current Financing Program expires on January 31, 2017 and we are currently in discussions with our lender to potentially extend the Program for sixteen months with revised covenants. We also continue to actively pursue longer term financing and are exploring alternative financing arrangements. We believe our cash flow from operations and planned liquidity will be sufficient to meet our cash needs for the next twelve months.

Capital Allocation

In addition to our ~~planned~~recent improvements in technology, we have prioritized our capital allocation strategy to strengthen our balance sheet and increase our competitiveness in the marketplace. The timing of these initiatives is highly dependent upon attaining the profitability objectives outlined in our plan and the cash flow resulting from ~~the completion of~~ our ongoing liquidity initiatives. We also see this as an opportunity to demonstrate our ongoing commitment to Volt shareholders as we continue to execute on our plan and return to sustainable profitability. Our capital allocation strategy includes the following elements:

Maintaining appropriate levels of working capital. Our business requires a certain level of cash resources to efficiently execute operations. Consistent with similar companies in our industry and operational capabilities, we estimate this amount to be 1.5 to 2.0 times our weekly cash distributions on a global basis and must accommodate seasonality and cyclical trends;

Reinvesting in our business. We ~~are executing a~~continue to execute on our company-wide initiative ~~to reinvest~~of disciplined reinvestment in our business including ~~new~~our recently implemented information technology systems which ~~will support~~supports our front-end recruitment and placement capabilities as well as increase

efficiencies in our back-office financial suite. We are also investing in our sales and recruiting process and resources, which ~~will enhance our ability~~are critical to ~~win in the marketplace;~~drive profitable revenue growth;

Deleveraging our balance sheet. By lowering our debt level, we will strengthen our balance sheet, reduce interest costs and reduce risk going forward;

Returning capital to shareholders. Part of our strategy is to return capital to our shareholders when circumstances permit in connection with share buybacks through our existing share buyback program; and

Acquiring value-added businesses. Potentially in the longer-term, and when circumstances permit, identifying and acquiring companies which would be accretive to our operating income and that could leverage ~~Volt's~~Volt’s scale, infrastructure and capabilities. Strategic acquisitions ~~would~~could potentially strengthen Volt in certain industry verticals or in specific geographic locations.

Recent Initiatives to Improve Operating Income, Cash Flows and Liquidity

We continue to make progress on several initiatives undertaken to enhance our liquidity position and shareholder value. ~~We continue to actively manage our portfolio of business units and have exited both non-core businesses that were incurring losses and core businesses that were marginally profitable. We~~On March 6, 2017, we completed ~~a number of significant divestitures in the latter part of fiscal 2015 and the first quarter of 2016, including~~ the sale of Maintech, our ~~printing~~information technology infrastructure business, to Maintech Holdings, LLC, a newly-formed holding company and ~~staffing businesses in Uruguay,~~affiliate of Oak Lane Partners, LLC. Under the terms of the agreement, we received gross proceeds of

$18.3 million, subject to certain adjustments including a customary working capital adjustment that was finalized within 60 days of the sale. Net proceeds from the transaction amounted to $13.1 million after certain transaction related fees and expenses and repayment of loan balances. Due to the sale of ~~substantially all~~Maintech, our minimum liquidity requirement under our current Financing Program has increased from $20.0 million to $25.0 million until the assets of our telecommunications, infrastructure and security services business. The above transactions netted nominal proceeds, however, we expect these transactions will be accretive to future operating cash flows.

~~We sold and simultaneously entered into a lease~~Financing Program was subsequently amended on our Orange, California property in March 2016 for a purchase price of $35.9 million. After the repayment of the mortgage on the property along with transaction-related expenses and fees, we received net cash proceeds of $27.1 million from the sale of the property. The lease on the property will expire in March 2031 with an annual base rent of $2.9 million for the first year with a 3.0% annual increase on the then-current base rent. The net proceeds from the sale will be used to ensure adequate levels of liquidity for working capital purposes, as well as to fund investments in technology and sales and marketing activities in support of our growth objectives.

As previously disclosed, we are engaged in a sales process of our Maintech business. We expect to consummate an acceptable transaction with a buyer over the next several months or we will continue to operate the business as part of our overall business. Maintech’s business is accretive to our overall net income, cash flow and liquidity.August 25, 2017.

In ~~March 2016, Volt Opportunity Road Realty Corp., an indirect wholly-owned subsidiary~~February 2017, the IRS approved the federal portion of ~~Volt, closed on~~ the sale of real property comprised of land and building with office space of approximately 19,000 square feet in San Diego, California with a private commercial real estate investor. There was no mortgage on the property and net proceeds, after transaction-related expenses and fees, totaled $2.0 million.

~~We have significant tax benefits. Included in our recoverable income taxes of $17.2 million is $16.0 million~~IRS refund from the filing of our amended tax returns for our fiscal years 2004 through ~~2010. We have fully completed~~2010 and we received $13.8 million. The remaining receivable of approximately $3.5 million primarily relates to state refunds and interest as a result of the IRS audit ~~process~~conclusion and are ~~waiting for the IRS~~expected to submit the results of the audits to their Joint Committee. As we cannot control the internal process at the IRS and their disbursement of funds, we cannot predict the timing of resolution. We expect to wrap-up the process with the IRS inbe received within the next ~~quarter or two.~~ several quarters, as well as current activity.

Entering fiscal ~~2016~~2017, we ~~also~~ have significant tax benefits including federal net operating loss carryforwards of $145.1 million, which are fully reserved with a valuation allowance ~~of $133.6 million, capital loss carryforwards of $82.3 million and~~as well as federal tax credits of ~~$41.3~~$47.8 million, which we will be able to utilize against future ~~profits.~~profits resulting from our strategic initiatives. We also have capital loss carryforwards of $55.4 million, which we will be able to utilize against future capital gains that may arise in the near future.

We remain committed to delivering superior client service at a reasonable cost. In an effort to reduce our future operating costs, we ~~are making a significant investment~~continue to ~~update~~invest in updates to our business processes, back-office financial suite and information technology tools that are critical to our success and offer more functionality at a lower cost. ~~We are making progress and intend to complete~~The first phase of the project was completed in March 2017 in which approximately $16.0 million in implementation costs were capitalized. These costs, along with the related license and recurring subscription fees will be amortized over either the estimated useful life of the asset or expensed ratably over the ~~next several quarters with an estimated cost~~term of ~~approximately $12.0 million in expensed and capitalized costs. We expect that these activities will reduce costs~~the contract based on the nature of ~~service through either~~ the ~~consolidation and/or elimination of certain systems and processes along with other reductions in discretionary spending.~~fees which has driven higher non-cash expenses into fiscal 2017. Through our strategy of improving efficiency in all aspects of our operations, we believe we can realize organic growth opportunities, reduce costs and increase profitability.

In ~~the first quarter of~~ fiscal 2016, we implemented a cost reduction plan as part of our overall initiative to become more efficient, competitive and profitable. We incurred restructuring ~~charges~~and severance costs of ~~$3.6~~$5.7 million, excluding ~~our Other segment,~~$1.1 million relating to Maintech, primarily resulting from a reduction in workforce, facility consolidation and lease termination costs. ~~Actions~~These actions taken, in fiscal 2016 and in the ~~first~~ nine months of fiscal ~~2016~~2017, will result in ~~annual~~net annualized labor savings of approximately ~~$13.0~~$13.5 million. Consistent with our ongoing strategic efforts, cost savings will be used to strengthen our operations.

Liquidity Outlook and Further Considerations

As previously noted, our primary sources of liquidity are cash flows from operations and proceeds from our Financing Program. Both operating cash flows and borrowing capacity under our Financing Program are directly related to the levels of accounts receivable generated by our businesses. Our level of borrowing capacity under the Financing Program increases in tandem with any increases in accounts receivable based on revenue growth. However, our operating cash flow may initially decrease as we fund the revenue growth. As the business grows, we would need to borrow funds to ensure adequate amounts of liquidity to fund operational requirements.

We are subject to certain covenants under our Financing Program, including a minimum liquidity threshold and minimum Earnings Before Interest and Taxes (EBIT) as defined. The minimum liquidity threshold test is performed weekly whereby we must maintain a minimum liquidity level comprised of the sum of availability under our Financing Program and unrestricted global cash. As of July 30, 2017, our minimum liquidity level was $25.0 million. Subsequent to the end of the quarter, the minimum liquidity and EBIT thresholds were amended as disclosed in the Financing Program section.

Our Financing Program is subject to termination under certain events of default such as breach of covenants, including the aforementioned liquidity and EBIT covenants. At July 30, 2017, we were in compliance with all debt covenants, as amended, and we believe we will continue to be able to meet our covenants. In the event we are not on track to meet our operating and liquidity forecasts for the remainder of fiscal 2017, we believe we can take steps to preserve liquidity and reduce operating costs to ensure compliance with the Financing Program’s covenants. Such steps would include the delay or reduction of capital and working capital investments and/or further reductions in operating expenses. However, as the Financing Program is due to expire on January 31, 2018, we have initiated the process to extend the Financing Program or pursue longer term financing and we expect to have a new arrangement by the end of the calendar year.

Under an accordion feature in our Financing Program, we have the ability to increase the facility amount from $160.0 million up to $250.0 million as revenue and related accounts receivable increase. As revenues and related accounts receivables rise, correspondingly, our borrowing base increases, but is capped at the present facility amount of $160.0 million. A cap on the facility amount would have the impact of minimizing overall global liquidity as business levels increase. Incremental increases to the facility amount are subject to approval by our Board of Directors and credit approval by PNC.

The following table sets forth our cash and liquidity available ~~liquidity~~ levels at the end of our last five quarters and our most recent week ended (in thousands):


Global Liquidity
	August 2, 2015		November 1, 2015		January 31, 2016		May 1, 2016		July 31, 2016		September 2, 2016
													July 31, 2016		October 30, 2016		January 29, 2017		April 30, 2017		July 30, 2017		September 1, 2017
Cash and cash equivalents (a)	$	12,332	$	10,188	$	16,515	$	23,171	$	12,886			$	12,886	$	6,386	$	19,018	$	20,743	$	16,357

Cash in banks (b)	$	18,134	$	13,652	$	21,140	$	29,626	$	16,918	$	16,631	$	16,918	$	11,248	$	24,805	$	24,080	$	18,981	$	23,480
Financing Program - PNC	8,900		35,700		23,584		26,053		28,986		23,986		28,986		33,986		16,445		31,837		14,445		15,437
Short-Term Credit Facility - BofA	—		—		—		3,105		3,359		2,615		3,359		3,291		2,709		—		—		—
Available liquidity	$	27,034	$	49,352	$	44,724	$	58,784	$	49,263	$	43,232	$	49,263	$	48,525	$	43,959	$	55,917	$	33,426	$	38,917

(a) Per financial statements.

(b) Amount generally includes ~~unpresented~~outstanding checks.

Cash flows from operating, investing and financing activities, as reflected in our Condensed Consolidated Statements of Cash Flows, are summarized in the following table (in thousands):


	Nine Months Ended						Nine Months Ended
	July 31, 2016			August 2, 2015			July 30, 2017			July 31, 2016
Net cash provided by (used in) operating activities	$	(1,315	)	$	16,106
Net cash provided by (used in) investing activities	22,607			(4,301		)
Net cash used in operating activities							$	(3,038	)	$	(1,315	)
Net cash provided by investing activities							8,253			22,607
Net cash provided by (used in) financing activities	(16,056		)	1,750			2,155			(16,056		)
Effect of exchange rate changes on cash and cash equivalents	(2,538		)	(3,679		)	2,601			(2,538		)
Net cash used in discontinued operations	—			(4,056		)
Net increase in cash and cash equivalents	$	2,698		$	5,820		$	9,971		$	2,698

Cash Flows - Operating Activities

The net cash used in operating activities in the ~~first~~ nine months ended July ~~31, 2016~~30, 2017 was ~~$1.3~~$3.0 million, ~~a decrease~~an increase of ~~$17.4~~$1.7 million from the same period in ~~2015.~~fiscal 2016. This ~~decrease~~increase resulted primarily from ~~decreased working capital relating to~~a decrease in cash provided by operating assets and liabilities, primarily from accounts receivable ~~restricted cash, net assets held for sale and income taxes partially offset by accounts payable~~ and accrued expenses and other liabilities ~~(accrued insurance~~partially offset by accounts payable, the receipt of the IRS refund and ~~other). In addition, there was an increase~~a decrease in ~~our~~ net ~~loss when adjusted for non-cash items related to impairment charges, gain on dispositions of property and equipment and unrealized foreign currency exchange~~ loss.

Cash Flows - Investing Activities

The net cash provided by investing activities in the ~~first~~ nine months ended July ~~31, 2016~~30, 2017 was ~~$22.6~~$8.3 million, principally from proceeds from the sale of ~~property and equipment~~Maintech of ~~$36.8~~$15.2 million partially offset by ~~the~~ purchases of property, equipment and software of ~~$13.6~~$7.8 million ~~primarily~~ relating to our investment in updating our business processes, back-office financial suite and information technology tools. The net cash ~~used in~~provided by investing activities in the ~~first~~ nine months ended ~~August 2, 2015~~July 31, 2016 was ~~$4.3~~$22.6 million, principally from the sale - leaseback of our Orange, California facility of $36.6 million, partially offset by the purchase of property, equipment and software of ~~$5.1 million.~~$13.6 million relating to our investment in updating our business processes, back-office financial suite and information technology tools.

Cash Flows - Financing Activities

The net cash provided by financing activities in the nine months ended July 30, 2017 was $2.2 million mainly for the net draw down of borrowings of $3.0 million. The net cash used in financing activities in the ~~first~~ nine months ended July 31, 2016 was $16.1 million, principally from the net repayment of borrowings of $8.0 million and the repayment of long-term debt of $7.3 million ~~as a result of~~in connection with the sale-leaseback of our Orange, California facility. The net cash provided by financing activities in the first nine months of 2015 was $1.8 million resulting from the elimination of cash restricted as collateral for borrowings of $10.4 million, partially offset by $4.3 million for the purchase of common stock and the net repayment of borrowings of $3.5 million.

Availability of Credit

At July ~~31,~~30, 2017 and October 30, 2016, ~~and November 1, 2015,~~ our Financing Program provided for ~~multi-currency~~ borrowing and issuance of letters of credit of up to an aggregate of ~~$150.0 million, and~~$160.0 million. We have the ability to increase the limit up to $250.0 million ~~under an accordion feature,~~ subject to ~~bank~~ credit ~~review and Volt board approval.~~approval from PNC. At July ~~31,~~30, 2017 and October 30, 2016, ~~and November 1, 2015,~~ we had outstanding borrowings of ~~$90.0~~$100.0 million and ~~$100.0~~$95.0 million, respectively, under the Financing Program ~~and bore~~that had a weighted average annual interest rate of ~~2.3%~~2.9% and ~~1.7%~~2.3%, respectively, inclusive of certain facility and program fees. Borrowing availability under this program was $14.4 million at July 30, 2017.

In February 2016, Maintech entered into a $10.0 million 364-day short-term revolving credit facility with Bank of America, N.A., as lender. ~~The provisions of~~In March 2017, the ~~agreement will not preclude structuring and other activities required in anticipation of our~~facility was repaid with proceeds from the sale of Maintech. ~~As of July 31, 2016, the amount drawn under this facility was $2.0 million.~~

Financing Program

In January ~~2016,~~2017, we amended our ~~$150.0 million~~ Financing Program with ~~PNC Bank, National Association (“PNC”)~~PNC. Key changes to the agreement were to: (1) extend the termination date to January 31, ~~2017;~~2018; (2) ~~eliminate~~increase the ~~interest coverage ratio~~minimum global liquidity to $25.0 million upon the sale of Maintech in March 2017, and ~~modify the liquidity level requirement;~~will increase to $35.0 million if we pay a dividend or repurchases shares of our stock; (3) reduce the unbilled receivables eligibility from 15% to 10% of total eligible receivables, (4) permit a $5.0 million basket for supply chain finance receivables and (5) introduce a performance covenant requiring a minimum ~~funding threshold,~~level of EBIT, as defined, ~~from 60%~~which is measured quarterly. Up to ~~40%,~~$0.5 million in distributions can be made per fiscal quarter provided that available liquidity is at least $40.0 million after the distribution. All other material terms and ~~(4) revise pricing from a LIBOR based rate plus 1.75% per the prior agreement, to a LIBOR based rate plus 1.90% on outstanding borrowings, and~~conditions remained substantially unchanged, including interest rates. The Financing Program was subsequently amended.

On July 14, 2017, we amended our Financing Program to increase the ~~facility fee~~permitted ratio of delinquent receivables to 2.5% from ~~0.65%~~2.0% for the periodofJuly 2017 through September 2017. The threshold of 2.0% will be unchanged from October 2017. On August 25, 2017, we further amended our Financing Program to ~~0.70%~~lower EBIT minimum targets for the fiscal quarter ended July 30, 2017 and the fiscal quarter ending October 29, 2017. Additionally, effective from the date of execution, the amendment lowers the required liquidity level amount, as defined, to $5.0 million from $25.0 million. This decrease is offset by the establishment of a minimum $10.0 million block on our borrowing base availability, resulting in a net $10.0 million increase in overall availability under this agreement. Also effective from the date of execution, the amendment includes an increase in both the program and LC fees from 1.2% to 1.8%. These amendments provide the flexibility with ongoing compliance with the Financing Program as we resolve certain temporary billing issues that impacted our liquidity during the post implementation phase of our information technology upgrade.

The Financing Program is secured by receivables from certain Staffing Services businesses in the United States, Europe and Canada that are sold to a wholly-owned, consolidated, bankruptcy remote subsidiary. The ~~subsidiary's~~bankruptcy remote subsidiary’s sole business consists of the purchase of the receivables and subsequent granting of a security interest to PNC under the program, and its assets are available first to satisfy obligations to PNC and are not available to pay creditors of ~~our~~the Company’s other legal entities. Borrowing capacity under the Financing Program is directly impacted by the level of accounts receivable. ~~As of November 1, 2015,~~At July 30, 2017, the accounts receivable borrowing base was $142.7 million.

Borrowings under the Financing Program was classified as long-term debt on the Condensed Consolidated Balance Sheets, however, as of the end of our fiscal first quarter 2016, the Financing Program was classified as short-term as the termination date is within twelve months of our first quarter 2016 balance sheet date.

The liquidity level requirement under our Financing Program set a minimum global liquidity level of $20.0 million at the origination of the facility in July 2015. Under the first amendment to the Financing Program, the liquidity level was increased from $20.0 million to $35.0 million effective January 31, 2016 and to $50.0 million effective July 31, 2016. The July 31st threshold was established assuming we completed certain liquidity events. In order to better align the covenants to the timing of certain liquidity events, in July 2016, we further amended the Financing Program to reduce the minimum liquidity covenant level from $50.0 million to $35.0 million for the period beginning July 31, 2016 through the earlier of: 1) the date of the sale of the Company's subsidiary, Maintech Incorporated, if such is closed on or before September 30, 2016, and 2) October 30, 2016. The amendment also adds a negative covenant prohibiting certain capital stock transactions by us through the earlier of: 1) the date of the sale of our subsidiary, Maintech Incorporated, if such is closed on or before September 30, 2016, and 2) October 31, 2016.

In addition to customary representations, warranties and affirmative and negative covenants, the program is subject to termination under standard events of default including change of control, failure to pay principal or interest, breach of the liquidity covenant, triggering of portfolio ratio limits, or other material adverse events as defined. At July 31, 2016, we were in compliance with all debt covenant requirements.

~~The Financing Program has a feature under which the facility limit can be increased from $150.0 million up to $250.0 million subject to credit approval from PNC. Borrowings~~ are priced based upon a fixed program rate plus the daily adjusted one-month LIBOR index, as ~~defined.~~defined in the Financing Program. The program also contains a revolving credit provision under which proceeds can be drawn for a definitive tranche period of 30, 60, 90 or 180 days priced at the adjusted LIBOR index rate in effect for that period. In addition to United States dollars, drawings can be denominated in Canadian dollars, subject to a Canadian dollar $30.0 million ~~limit,~~sub-limit, and British Pounds Sterling, subject to a £20.0 million ~~limit.~~sub-limit. The program also includes a letter of credit ~~sublimit~~sub-limit of $50.0 million and minimum borrowing requirements. As of July ~~31, 2016,~~30, 2017, there were no foreign currency denominated borrowings, and the letter of credit participation was ~~$31.0~~$28.3 million inclusive of ~~$28.9~~$26.9 million for the ~~Company's~~Company’s casualty insurance program and ~~$2.1~~$1.4 million for the security deposit required under the Orange facility lease agreement.

~~On September 6, 2016, we amended our Financing Program~~In addition to increase the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. We entered into this amendment to utilize the additional borrowing base provided by the current and potential growth in eligible accounts receivable balances.

~~Bank of America Short-Term Credit Facility~~

In February 2016, Maintech, Incorporated, an indirect wholly-owned subsidiary of Volt, as borrower, entered into a $10.0 million 364-day secured revolving credit agreement with Bank of America, N.A. The credit agreement provides for revolving loans as well as a $0.1 million sub-line for letters of credit and is subject to borrowing base and availability restrictions and requirements. The credit

agreement is secured by assets of the borrower, including accounts receivable, and the Company has guaranteed the obligations of the borrower under the agreement not to exceed $3.0 million. The credit agreement contains certain customary representations, ~~and~~ warranties ~~events of default~~ and affirmative and negative ~~covenants.~~

~~The borrower may optionally terminate~~covenants, the ~~credit agreement and repay~~Financing Program is subject to termination under certain events of default including change of control, failure to pay principal or interest, breach of liquidity or performance covenants, triggering of portfolio ratio limits, or other material adverse events as defined. At July 30, 2017, the borrowings prior to the expiration date, without premium or penalty at any time by the delivery of a notice to that effect as provided under the credit agreement. It is anticipated that the credit agreement will be terminated before a sale of the borrower. Borrowings will be used for working capital and general corporate purposes. Interest under the credit agreement is one month LIBOR plus 2.75% on drawn amounts and a fixed rate of 0.375% on undrawn amounts.Company was in compliance with all debt covenant requirements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information in this section should be read in conjunction with the information on financial market risk related to non-U.S. currency exchange rates, changes in interest rates and other financial market risks in Part II, Item 7A., ~~“ Quantitative~~“Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended ~~November 1, 2015.~~

October 30, 2016.

Market risk is the potential economic gain or loss that may result from changes in market rates and prices. In the normal course of business, the Company’s earnings, cash flows and financial position are exposed to market risks relating to the impact of interest rate changes, foreign currency exchange rate fluctuations and changes in the market value of financial instruments. We limit these risks through risk management policies and procedures.

Interest Rate Risk

We centrally manage our debt and investment portfolios considering investment opportunities and risks, tax consequences and overall financing strategies. At July ~~31, 2016,~~30, 2017, we had cash and cash equivalents on which interest income is earned at variable rates. At July ~~31, 2016,~~30, 2017, we had a ~~$150.0~~$160.0 million accounts receivable securitization program, which can be increased up to $250.0 million subject to credit approval from PNC, to provide additional liquidity to meet our short-term financing needs. ~~In addition, we have a $10.0 million secured revolving credit facility with Bank of America, N.A. which provides additional liquidity to meet our short-term financing needs.~~

The interest rates on these borrowings and financings are variable and, therefore, interest income (expense) and other ~~expense and interest~~ income (expense) are affected by the general level of U.S. and foreign interest rates. Based upon the current levels of cash invested, notes payable to banks and utilization of the securitization program, on a short-term basis, a hypothetical 1-percentage-point increase in interest rates would have increased net interest expense by $0.7 million and a hypothetical 1-percentage-point decrease in interest rates would have decreased net interest expense by ~~$0.9~~$1.0 million in the third quarter of fiscal ~~2016.~~2017.

Foreign Currency Risk

We have operations in several foreign countries and conduct business in the local currency in these countries. As a result, we have risk associated with currency fluctuations as the value of foreign currencies fluctuates against the dollar, in particular the British Pound, ~~(see Item 1A. Risk Factors for further discussion),~~ Euro, Canadian Dollar and Indian Rupee. These fluctuations impact reported earnings.

Fluctuations in currency exchange rates also impact the U.S. dollar amount of our net investment in foreign operations. The assets and liabilities of our foreign subsidiaries are translated into U.S. dollars at the exchange rates in effect at the fiscal ~~period-end~~period balance sheet date. Income and ~~expense~~expenses accounts are translated at an average exchange rate during the year which approximates the rates in effect at the transaction dates. The resulting translation adjustments are recorded in stockholders’ equity as a component of ~~accumulated~~Accumulated other comprehensive loss. The U.S. dollar ~~strengthened~~weakened relative to many foreign currencies as of July ~~31, 2016~~30, 2017 compared to ~~November 1, 2015.~~October 30, 2016. Consequently, stockholders’ equity ~~decreased~~increased by ~~$1.1~~$4.7 million as a result of the foreign currency translation as of July ~~31, 2016.~~30, 2017.

Based upon the current levels of net foreign assets, a hypothetical 10% devaluation of the U.S. dollar as compared to these currencies as of July ~~31, 2016~~30, 2017 would result in an approximate ~~$1.2~~$2.2 million positive translation adjustment recorded in Accumulated other comprehensive loss within stockholders’ equity. Conversely, a hypothetical 10% appreciation of the U.S. dollar as compared to these currencies as of July ~~31, 2016~~30, 2017 would result in an approximate ~~$1.2~~$2.2 million negative translation adjustment recorded in Accumulated other comprehensive loss within stockholders’ equity. We do not use derivative instruments for trading or other speculative purposes.

Equity Risk

Our investments are exposed to market risk as ~~they relate~~it relates to changes in the market value. We hold investments primarily in mutual funds for the benefit of participants in our non-qualified deferred compensation ~~plan. Changes~~plan, and changes in the market value of these investments result in offsetting changes in our liability under the non-qualified deferred compensation plans as the employees realize the rewards and bear the risks of their investment selections. At July ~~31, 2016,~~30, 2017, the total market value of these investments was ~~approximately $3.8~~$3.4 million.

ITEM 4. CONTROLS AND PROCEDURES

Volt maintains “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, Volt’s management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and Volt’s management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Volt has carried out an evaluation, as of the end of the period covered by this report, under the supervision and with the participation of Volt’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of Volt’s disclosure controls and procedures. Based upon their evaluation and subject to the foregoing, the Chief Executive Officer and Chief Financial Officer concluded that Volt’s disclosure controls and procedures were effective.

~~There have been no significant changes in Volt’s~~During the quarter ended April 30, 2017, we completed the first phase of our upgrade of our enterprise resource planning (“ERP”) system as well as implemented a new Applicant Tracking System ("ATS”). The Company continues to review the impact of the new systems on its internal ~~controls~~control over financial reporting and where appropriate, make changes to these controls to address related system functionality and potential gaps. The Company believes that the internal control changes ultimately resulting from the new system implementations will improve the overall control environment. There were no other changes in the Company’s internal control

over financial reporting which occurred during the fiscal quarter ended July ~~31, 2016~~30, 2017, that have materially affected, or are reasonably likely to materially affect, ~~our~~the Company’s internal ~~controls~~control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Company is subject to claims in legal proceedings arising in the ordinary course of its business, including payroll-related and various employment-related matters. All litigation currently pending against the Company relates to matters that have arisen in the ordinary course of business and the Company believes that such matters will not have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

Since our ~~2015~~2016 Form 10-K, there have been no material developments in the material legal proceedings in which we are involved.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in ~~our 2015~~the 2016 10-K, which could materially affect ~~our~~the Company’s business, financial position and results of operations. ~~Our~~There are no material changes from the risk factors ~~have not changed materially since November 1, 2015, except for the following:~~

~~The United Kingdom’s referendum to exit from the European Union will have uncertain effects and could adversely impact our business, results of operations and financial condition.~~

On June 23, 2016, the U.K. voted to exit from the European Union (“E.U.”) (commonly referred to as “Brexit”). The terms of Brexit and the resulting U.K./E.U. relationship are uncertain for companies doing business bothset forth in Part I, “Item 1A. Risk Factors” in the U.K. and the overall global economy. The U.K. vote has impacted global markets, including currencies, and resulted in a sharp decline in the value of the British Pound as compared to the U.S. dollar and other currencies. The fluctuation of currency exchange rates may expose us to gains and losses on non U.S. currency transactions. Volatility in the securities markets and in currency exchange rates may continue as the U.K. negotiates its exit from the E.U. In the longer term, any impact from Brexit on our business and operations will depend, in part, on the outcome of tariff, tax treaties, trade, regulatory, and other negotiations. While we have not experienced any material impact from Brexit on our underlying business to date, we cannot predict its future implications, which will in part depend on the outcome of the trade negotiations referenced above. 2016 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable

ITEM 5. OTHER INFORMATION

~~Amendment No. 3 to Receivables Financing Agreement~~

On September 6, 2016, the Company entered into Amendment No. 3, dated September 6, 2016 ("Amendment No. 3"), to its Receivables Financing Agreement which increases the facility limit from $150.0 million to $160.0 million under the expandable accordion feature in the program. The remaining terms and conditions are substantially unchanged.

~~Annual Incentive Plan~~

On September 7, 2016, the Company's Human Resources and Compensation Committee of the Board of Directors (the "Compensation Committee") approved the Volt Information Sciences, Inc. Annual Incentive Plan ("AIP"). The purpose of the AIP is to reinforce corporate, divisional and individual goals and to promote and reward the achievement of financial, organizational, leadership and other objectives aligned to the overall strategy of the Company.

Each participant is eligible to receive an annual cash bonus on the achievement of established performance objectives for the fiscal year. The AIP is administered by, and participants will be designated by, the Compensation Committee or those to whom it has delegated authority and may include the Company’s senior officers. Performance objectives may include, without limitation, earnings-based measures (such as EBITDA, adjusted EBITDA, operating income or revenue), measures relating to the Company’s share price and/or individual management objectives.

The foregoing summaries of Amendment No. 3 and the AIP do not purport to be complete and are qualified in their entirety by reference to the full text of Amendment No. 3 and the AIP, respectively, copies of which are attached to this Quarterly Report on Form 10-Q and are incorporated herein by reference.

None

ITEM 6. EXHIBITS

The following exhibits are filed as part of, or incorporated by reference into, this ~~Report:~~

report:



Exhibits		Description

2.1		Stock Purchase Agreement, dated as of March 6, 2017, entered into by and among Volt Delta Resource Holdings, Inc., Maintech Holdings, LLC, MTECH Holdings, LLC and Volt Information Sciences, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed March 7, 2017; File No. 001-09232)

3.1		Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K filed January 30, 1997; File No. 001-09232)

3.2		Certificate of Amendment to Certificate of Incorporation of the Company (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed April 11, 2007; File No. 001-09232)

3.3		Amended and Restated By-Laws of the Company, as amended through October 30, 2015 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed November 4, 2015; File No. ~~001-9232)~~001-09232)

10.1		Amendment to Loan and Security Agreement, dated as of February 17, 2017, to the Loan and Security Agreement, dated as of February 17, 2016, between Maintech, Incorporated, as Borrower, and Bank of America, N.A., as lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 23, 2017; File No. 001-09232)

10.2		Amended and Restated Employment Agreement by and between the Company and Jerome Shaw, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 24, 2017; File No. 001-09232)

10.3		Transition Services Agreement, dated as of March 6, 2017, entered into by and between Volt Information Sciences, Inc. and Maintech, Incorporated (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 7, 2017; File No. 001-09232)

10.4		Employment Agreement, dated as of June 12, 2017, between the Company and Leonard Naujokas (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 12, 2017; File No. 001-09232)

10.5		Amendment No. 2,7, dated as of July ~~29, 2016,~~14, 2017, to the Receivables Financing Agreement, dated as of July 30, 2015, by and among Volt Funding Corp., as borrower, PNC Bank, National Association, as letter of credit bank and administrative agent, the persons from time to time party thereto as lenders and letter of credit participants, and Volt Information Sciences, Inc., as initial servicer (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 20, 2017; File No. 001-09232)

10.6		Amendment No. 8, dated as of August 25, 2017, to the Receivables Financing Agreement, dated as of July 30, 2015, by and among Volt Funding Corp., as borrower, PNC Bank, National Association, as letter of credit bank and administrative agent, the persons from time to time party thereto as lenders and letter of credit participants, and Volt Information Sciences, Inc., as initial servicer (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August ~~2, 2016;~~31, 2017; File No. 001-09232)

~~10.2~~		Amendment No. 3, dated as of September 6, 2016, to the Receivables Financing Agreement, dated as of July 30, 2015, by and among Volt Funding Corp., as borrower, PNC Bank, National Association, as letter of credit bank and administrative agent, the persons from time to time party thereto as lenders and letter of credit participants, and Volt Information Sciences, Inc., as initial servicer

~~10.3~~		~~Volt Information Sciences, Inc. Annual Incentive Plan, effective September 7, 2016~~

31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934

31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934

32.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350

32.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.



	VOLT INFORMATION SCIENCES, INC.

Date: September 8, ~~2016~~2017	By:		/s/	Michael Dean
		Michael Dean
		President and Chief Executive Officer (Principal Executive Officer)

Date: September 8, ~~2016~~2017	By:		/s/	Paul Tomkins
		Paul Tomkins
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)

Date: September 8, ~~2016~~2017	By:		/s/	~~Bryan Berndt~~ Leonard Naujokas
		~~Bryan Berndt~~Leonard Naujokas
		Controller and Chief Accounting Officer (Principal Accounting Officer)



	Nine Months Ended August 2, 2015
Loss from discontinued operations
Net revenue	$	4,708
Cost of revenue	5,730
Selling, administrative and other operating costs	1,388
Restructuring and other related costs	1,709
Other (income) expense, net	(978		)
Loss from discontinued operations	(3,141		)
Loss on disposal of discontinued operations	(1,187		)
Loss from discontinued operations before income taxes	(4,328		)
Income tax provision	191
Loss from discontinued operations that is presented in the Condensed Consolidated Statements of Operations	$	(4,519	)



	Three Months Ended July 31, 2016
	Total			Staffing Services		Other
Net revenue	$	330,490		$	313,428	$	17,062
Expenses
Direct cost of staffing services revenue	266,684			266,684		—
Cost of other revenue	15,110			—		15,110
Selling, administrative and other operating costs	41,367			39,926		1,441
Restructuring and severance costs	755			709		46
Segment operating income	6,574			6,109		465
Corporate general and administrative	8,345
Corporate restructuring and severance costs	215
Operating loss	$	(1,986	)



	Three Months Ended August 2, 2015
	Total			Staffing Services		Other
Net revenue	$	364,668		$	341,383	$	23,285
Expenses
Direct cost of staffing services revenue	287,554			287,554		—
Cost of other revenue	19,696			—		19,696
Selling, administrative and other operating costs	46,950			43,197		3,753
Restructuring and severance costs	400			341		59
Impairment charges	580			2,130		(1,550		)
Segment operating income	9,488			8,161		1,327
Corporate general and administrative	11,075
Corporate restructuring costs	1,467
Operating loss	$	(3,054	)