Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Nov. 02, 2014 | Dec. 29, 2014 | 4-May-14 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PHOTRONICS INC | ||
Entity Central Index Key | 810136 | ||
Current Fiscal Year End Date | 9 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $529,675,990 | ||
Entity Common Stock, Shares Outstanding | 66,348,970 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 2-Nov-14 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 02, 2014 | Nov. 03, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $192,929 | $215,615 |
Accounts receivable, net of allowance of $3,078 in 2014 and $3,541 in 2013 | 94,515 | 73,357 |
Inventories | 22,478 | 18,849 |
Deferred income taxes | 7,223 | 1,082 |
Other current assets | 19,347 | 9,563 |
Total current assets | 336,492 | 318,466 |
Property, plant and equipment, net | 550,069 | 422,740 |
Investment in joint venture | 93,122 | 93,124 |
Intangible assets, net | 30,294 | 34,080 |
Deferred income taxes | 11,036 | 12,455 |
Other assets | 8,170 | 5,064 |
Total assets | 1,029,183 | 885,929 |
Current liabilities: | ||
Current portion of long-term borrowings | 10,381 | 11,818 |
Accounts payable | 77,779 | 59,210 |
Payables - related parties | 8,716 | 9,211 |
Accrued liabilities | 42,241 | 24,348 |
Total current liabilities | 139,117 | 104,587 |
Long-term borrowings | 131,805 | 182,203 |
Deferred income taxes | 3,045 | 1,007 |
Other liabilities | 15,722 | 10,301 |
Total liabilities | 289,689 | 298,098 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.01 par value, 2,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 150,000 shares authorized, 65,930 shares issued and outstanding at November 2, 2014, and 61,083 shares issued and outstanding at November 3, 2013 | 659 | 611 |
Additional paid-in capital | 520,182 | 498,861 |
Retained earnings | 85,435 | 59,439 |
Accumulated other comprehensive income | 21,774 | 26,403 |
Total Photronics, Inc. shareholders' equity | 628,050 | 585,314 |
Noncontrolling interests | 111,444 | 2,517 |
Total equity | 739,494 | 587,831 |
Total liabilities and equity | $1,029,183 | $885,929 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 02, 2014 | Nov. 03, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Current assets: | ||
Accounts receivable, allowance | $3,078 | $3,541 |
Equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000 | 150,000 |
Common stock, shares issued (in shares) | 65,930 | 61,083 |
Common stock, shares outstanding (in shares) | 65,930 | 61,083 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | ||
Consolidated Statements of Income [Abstract] | |||||
Net sales | $455,527 | $422,180 | $450,439 | ||
Cost and expenses: | |||||
Cost of sales | -355,181 | -322,540 | -338,519 | ||
Selling, general and administrative | -49,638 | -48,213 | -46,706 | ||
Research and development | -21,913 | -20,758 | -19,371 | ||
Consolidation, restructuring and related charges | 0 | 0 | -1,428 | ||
Operating income | 28,795 | 30,669 | 44,415 | ||
Other income (expense): | |||||
Gain on acquisition | 16,372 | 0 | 0 | ||
Interest expense | -7,247 | -7,756 | -7,488 | ||
Interest and other income (expense), net | 3,410 | 3,892 | 3,721 | ||
Income before income tax provision | 41,330 | 26,805 | 40,648 | ||
Income tax provision | -9,295 | -7,229 | -10,793 | ||
Net income | 32,035 | [1],[2] | 19,576 | [3] | 29,855 |
Net income attributable to noncontrolling interests | -6,039 | -1,610 | -1,987 | ||
Net income attributable to Photronics, Inc. shareholders | $25,996 | [1],[2] | $17,966 | [3] | $27,868 |
Earnings per share: | |||||
Basic (in dollars per share) | $0.42 | [1],[2] | $0.30 | [3] | $0.46 |
Diluted (in dollars per share) | $0.41 | [1],[2] | $0.29 | [3] | $0.44 |
Weighted-average number of common shares outstanding: | |||||
Basic (in shares) | 61,779 | 60,644 | 60,055 | ||
Diluted (in shares) | 66,679 | 61,599 | 76,464 | ||
[1] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||
[2] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. | ||||
[3] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | ||
Consolidated Statements of Comprehensive Income [Abstract] | |||||
Net income | $32,035 | [1],[2] | $19,576 | [3] | $29,855 |
Other comprehensive income (loss), net of tax of $0: | |||||
Foreign currency translation adjustments | -5,916 | 9,805 | 7,188 | ||
Amortization of cash flow hedge | 128 | 128 | 128 | ||
Other | -41 | 54 | -109 | ||
Total other comprehensive income (loss), net of tax | -5,829 | 9,987 | 7,207 | ||
Comprehensive income | 26,206 | 29,563 | 37,062 | ||
Less: comprehensive income attributable to noncontrolling interests | 5,238 | 858 | 3,387 | ||
Comprehensive income attributable to Photronics, Inc. shareholders | $20,968 | $28,705 | $33,675 | ||
[1] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||
[2] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. | ||||
[3] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Other comprehensive income, tax | $0 | $0 | $0 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Non-Controlling Interests [Member] | Total | |
In Thousands | |||||||
Balance at Oct. 30, 2011 | $597 | $486,674 | $13,605 | $10,171 | $48,709 | $559,756 | |
Balance (in shares) at Oct. 30, 2011 | 59,651 | ||||||
Net income | 0 | 0 | 27,868 | 0 | 1,987 | 29,855 | |
Other comprehensive income | 0 | 0 | 0 | 5,807 | 1,400 | 7,207 | |
Sale of common stock through employee stock option and purchase plan | 3 | 542 | 0 | 0 | 0 | 545 | |
Sale of common stock through employee stock option and purchase plan (in shares) | 277 | ||||||
Restricted stock awards vestings and expense | 1 | 901 | 0 | 0 | 0 | 902 | |
Restricted stock awards vestings and expense (in shares) | 108 | ||||||
Share-based compensation expense | 0 | 2,258 | 0 | 0 | 0 | 2,258 | |
Common stock issued upon debt conversion | 1 | 1,051 | 0 | 0 | 0 | 1,052 | |
Common stock issued upon debt conversion (in shares) | 177 | ||||||
Repurchase of common stock of subsidiary | 0 | 1,985 | 0 | -78 | -17,481 | -15,574 | |
Balance at Oct. 28, 2012 | 602 | 493,411 | 41,473 | 15,900 | 34,615 | 586,001 | |
Balance (in shares) at Oct. 28, 2012 | 60,213 | ||||||
Net income | 0 | 0 | 17,966 | 0 | 1,610 | 19,576 | [1] |
Other comprehensive income | 0 | 0 | 0 | 10,740 | -753 | 9,987 | |
Sale of common stock through employee stock option and purchase plan | 4 | 880 | 0 | 0 | 0 | 884 | |
Sale of common stock through employee stock option and purchase plan (in shares) | 397 | ||||||
Restricted stock awards vestings and expense | 2 | 1,281 | 0 | 0 | 0 | 1,283 | |
Restricted stock awards vestings and expense (in shares) | 158 | ||||||
Share-based compensation expense | 0 | 2,692 | 0 | 0 | 0 | 2,692 | |
Common stock issued upon debt conversion | 3 | -3 | 0 | 0 | 0 | 0 | |
Common stock issued upon debt conversion (in shares) | 315 | ||||||
Repurchase of common stock of subsidiary | 0 | 600 | 0 | -237 | -32,955 | -32,592 | |
Balance at Nov. 03, 2013 | 611 | 498,861 | 59,439 | 26,403 | 2,517 | 587,831 | |
Balance (in shares) at Nov. 03, 2013 | 61,083 | ||||||
Net income | 0 | 0 | 25,996 | 0 | 6,039 | 32,035 | [2],[3] |
Other comprehensive income | 0 | 0 | 0 | -5,028 | -801 | -5,829 | |
Sale of common stock through employee stock option and purchase plan | 3 | 1,424 | 0 | 0 | 0 | 1,427 | |
Sale of common stock through employee stock option and purchase plan (in shares) | 337 | ||||||
Restricted stock awards vestings and expense | 2 | 1,295 | 0 | 0 | 0 | 1,297 | |
Restricted stock awards vestings and expense (in shares) | 172 | ||||||
Share-based compensation expense | 0 | 2,774 | 0 | 0 | 0 | 2,774 | |
Acquisition of DPTT | 0 | -6,291 | 0 | 410 | 105,403 | 99,522 | |
Common stock issued upon debt conversion | 43 | 22,011 | 0 | 0 | 0 | 22,054 | |
Common stock issued upon debt conversion (in shares) | 4,338 | ||||||
Repurchase of common stock of subsidiary | 0 | 108 | 0 | -11 | -1,714 | -1,617 | |
Balance at Nov. 02, 2014 | $659 | $520,182 | $85,435 | $21,774 | $111,444 | $739,494 | |
Balance (in shares) at Nov. 02, 2014 | 65,930 | ||||||
[1] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. | ||||||
[2] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||||
[3] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | ||
Cash flows from operating activities: | |||||
Net income | $32,035 | [1],[2] | $19,576 | [3] | $29,855 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization of property, plant and equipment | 72,859 | 65,994 | 78,623 | ||
Amortization of deferred financing costs and intangible assets | 7,277 | 6,948 | 6,586 | ||
Gain on acquisition | -16,372 | 0 | 0 | ||
Consolidation, restructuring and related charges | 0 | 0 | 262 | ||
Share-based compensation | 4,071 | 3,975 | 3,160 | ||
Deferred income taxes | 4,215 | -266 | -615 | ||
Changes in assets and liabilities: | |||||
Accounts receivable | 5,271 | 2,400 | 11,190 | ||
Inventories | -2,552 | -891 | 4,683 | ||
Other current assets | 1,781 | -2,744 | -79 | ||
Accounts payable, accrued liabilities and other | -12,224 | 4,409 | -1,116 | ||
Net cash provided by operating activities | 96,361 | 99,401 | 132,549 | ||
Cash flows from investing activities: | |||||
Purchases of property, plant and equipment | -91,085 | -63,792 | -96,978 | ||
Cash from acquisition | 4,508 | 0 | 0 | ||
Investment in joint venture | 0 | 0 | -13,397 | ||
Purchases of intangible assets | -364 | -2,173 | -27 | ||
Other | -544 | -272 | -1,541 | ||
Net cash used in investing activities | -87,485 | -66,237 | -111,943 | ||
Cash flows from financing activities: | |||||
Proceeds from long-term borrowings | 0 | 0 | 25,000 | ||
Repayments of long-term borrowings | -29,782 | -8,314 | -5,293 | ||
Purchase of common stock of subsidiary | 0 | -32,374 | -15,598 | ||
Proceeds from share-based arrangements | 1,298 | 884 | 653 | ||
Payments of deferred financing fees | -346 | -40 | -198 | ||
Other | -711 | 0 | 0 | ||
Net cash provided by (used in) financing activities | -29,541 | -39,844 | 4,564 | ||
Effects of exchange rate changes on cash and cash equivalents | -2,021 | 4,252 | 2,945 | ||
Net increase (decrease) in cash and cash equivalents | -22,686 | -2,428 | 28,115 | ||
Cash and cash equivalents at beginning of year | 215,615 | 218,043 | 189,928 | ||
Cash and cash equivalents at end of year | 192,929 | 215,615 | 218,043 | ||
Supplemental disclosure of non-cash information: | |||||
Noncash net assets from acquisition | 110,211 | 0 | 0 | ||
Accrual for property, plant and equipment purchased during year | 28,672 | 17,502 | 5,052 | ||
Conversion of debt to common stock | 22,054 | 0 | 0 | ||
Capital lease obligation for purchases of property, plant and equipment | 0 | 26,356 | 0 | ||
Deposit related to facility purchase | $0 | $0 | $2,000 | ||
[1] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||
[2] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. | ||||
[3] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Nov. 02, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Business | |
Photronics, Inc. and its subsidiaries (the "Company" or "Photronics") is one of the world's leading manufacturers of photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits. Photomasks are a key element in the manufacture of semiconductors and flat panel displays ("FPDs"), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits ("ICs") and a variety of FPDs and, to a lesser extent, other types of electrical and optical components. The Company currently operates principally from nine manufacturing facilities; two of which are located in Europe, three in Taiwan, one in Korea, and three in the United States. | |
Consolidation | |
The accompanying consolidated financial statements include the accounts of Photronics, Inc. and its majority-owned subsidiaries that the Company controls. All intercompany balances and transactions have been eliminated in consolidation. | |
Estimates and Assumptions | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in them. Estimates are based on historical experience and on various assumptions that are believed to be reasonable under the circumstances. The Company's estimates are based on the facts and circumstances available at the time they are made. Actual results reported by the Company may differ from such estimates. The Company reviews these estimates periodically and reflects the effect of revisions in the period in which they are determined. | |
Derivative Instruments and Hedging Activities | |
The Company records derivatives in the consolidated balance sheets as assets or liabilities, measured at fair value. The Company does not engage in derivative instruments for speculative purposes. Gains or losses resulting from changes in the values of those derivatives are reflected in earnings, or as accumulated other comprehensive income or loss, a separate component of equity, depending on the use of the derivatives and whether they qualify for hedge accounting. In order to qualify for hedge accounting, among other criteria, a derivative must be a hedge of an interest rate, price, foreign currency exchange rate, or credit risk that is expected to be highly effective at the inception of the hedge, be highly effective in achieving offsetting changes in the fair value or cash flows of the hedged item during the term of the hedge and formally documented at the inception of the hedge. In general, the types of risks the Company has hedged are those related to the variability of future cash flows caused by movements in foreign currency exchange and interest rates. The Company documents its risk management strategy and hedge effectiveness at the inception of, and during the term of, each hedge. | |
Fiscal Year | |
The Company's fiscal year ends on the Sunday closest to October thirty-first, and, as a result, a 53-week year occurs every 5 to 6 years. Fiscal years 2014 and 2012 each included 52 weeks, while fiscal year 2013 included 53 weeks. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash and highly liquid investments purchased with an original maturity of 3 months or less. The carrying values of cash equivalents approximate their fair values due to the short-term maturities of these instruments. | |
Inventories | |
Inventories are primarily comprised of raw materials and are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or market. | |
Property, Plant and Equipment | |
Property, plant and equipment, except as explained below under "Impairment of Long-Lived Assets," are stated at cost less accumulated depreciation and amortization. Repairs and maintenance, as well as renewals and replacements of a routine nature, are charged to operations as incurred, while those that improve or extend the lives of existing assets are capitalized. Upon sale or other disposition, the cost of the asset and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in earnings. | |
Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. Buildings and improvements are depreciated over 15 to 40 years, machinery and equipment over 3 to 10 years and, furniture, fixtures and office equipment over 3 to 5 years. Leasehold improvements are amortized over the life of the lease or the estimated useful life of the improvement, whichever is less. Judgment and assumptions are used in establishing estimated useful lives and depreciation periods. The Company also uses judgment and assumptions as it periodically reviews property, plant and equipment for any potential impairment in carrying values whenever events such as a significant industry downturn, plant closures, technological obsolescence, or other change in circumstances indicate that their carrying amounts may not be recoverable. | |
Intangible Assets | |
Intangible assets consist primarily of a technology license agreement, a supply agreement and acquisition-related intangibles. These assets are stated at fair value as of the date acquired less accumulated amortization. Amortization is calculated based on the estimated useful lives of the assets, which range from 3 to 15 years, using the straight-line method or another method that more fairly represents the utilization of the assets. | |
The Company periodically evaluates the remaining useful lives of its intangible assets to determine whether events or circumstances warrant a revision to the remaining periods of amortization. In the event that the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over that revised remaining useful life. If it is determined that an intangible asset has an indefinite useful life, that intangible asset would be subject to impairment testing annually or whenever events or circumstances indicate that the carrying value may not, based on future undiscounted cash flows or market factors, be recoverable, and an impairment loss would be recorded in the period so determined. The measurement of the impairment loss would be based on the fair value of the intangible asset. | |
Impairment of Long-Lived Assets | |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on the Company's judgment and estimates of undiscounted future cash flows resulting from the use of the assets and their eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the assets. The carrying values of assets determined to be impaired are reduced to their estimated fair values. Fair values of any impaired assets would generally be determined using a market or income approach. | |
Business Combinations | |
When acquiring other businesses or participating in mergers or joint ventures in which the Company is deemed to be the acquirer, the Company generally recognizes identifiable assets acquired, liabilities assumed and any noncontrolling interests at their acquisition date fair values, and separately from any goodwill that may be required to be recognized. Goodwill, when recognizable, would be measured as the excess amount of any consideration transferred, which is generally measured at fair value, over the acquisition date fair values of the identifiable assets acquired and liabilities assumed. | |
Accounting for such transactions requires the Company’s management to make significant assumptions and estimates and, although the Company believes any estimates and assumptions it makes to be reasonable and appropriate at the time they are made, unanticipated events and circumstances may arise that affect their accuracy, causing actual results to differ from those estimated by the Company. When required, the Company will adjust the values of the assets acquired and liabilities assumed against the acquisition gain or goodwill, as initially recorded, for a period of up to one year after the transaction. | |
Costs incurred to effect a merger or acquisition, such as legal, accounting, valuation and other third party costs, as well as internal general and administrative costs incurred are charged to expense in the periods incurred. Costs incurred to issue any debt and equity securities are recognized in accordance with other applicable generally accepted accounting principles. | |
Investments in Joint Ventures | |
The financial results of investments in joint ventures of which the Company has a controlling financial interest are included in the Company’s consolidated financial statements. Investments in joint ventures over which the Company has the ability to exercise significant influence and that, in general, are at least 20 percent owned are accounted for under the equity method. An impairment loss would be recognized whenever a decrease in the fair value of such an investment below its carrying amount is determined to be other than temporary. In judging "other than temporary," the Company would consider the length of time and the extent to which the fair value of the investment has been less than the carrying amount of the investment, the near-term and longer-term operating and financial prospects of the investee, and the Company's longer-term intent of retaining its investment in the investee. | |
Variable Interest Entities | |
The Company accounts for the investments it makes in certain legal entities in which equity investors do not have 1) sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support or, 2) as a group, the holders of the equity investment at risk do not have either the power, through voting or similar rights, to direct the activities of the legal entity that most significantly impact the entity’s economic performance or, 3) the obligation to absorb the expected losses of the legal entity or the right to receive expected residual returns of the legal entity. These certain legal entities are referred to as “variable interest entities”, or “VIEs”. | |
The Company would consolidate the results of any such entity in which it determined that it has a controlling financial interest. The Company would have a “controlling financial interest” in such an entity when the Company has both the power to direct the activities that most significantly affect the VIE’s economic performance and the obligation to absorb the losses of, or right to receive benefits from, the VIE that could be potentially significant to the VIE. On a quarterly basis, the Company reassesses whether it has a controlling financial interest in any investments it has in these certain legal entities. | |
The Company accounts for investments it makes in VIEs in which it has determined that it does not have a controlling financial interest but has significant influence over and holds at least a 20 percent ownership interest using the equity method. Any investment not meeting the parameters to be accounted under the equity method would be accounted for using the cost method unless the investment had a readily determinable fair value, at which it would then be reported. | |
Income Taxes | |
The income tax provision is computed on the basis of the various tax jurisdictions' income or loss before income taxes. Deferred income taxes reflect the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effects of net operating losses and tax credit carryforwards. The Company uses judgment and assumptions to determine if valuation allowances for deferred income tax assets are required, if their realization is not more likely than not, by considering future market growth, forecasted operations, future taxable income, and the amount of earnings in the tax jurisdictions in which it operates. | |
The Company considers income taxes in each of the tax jurisdictions in which it operates in order to determine its effective income tax rate. Current income tax exposure is identified and temporary differences resulting from differing treatments of items for tax and financial reporting purposes are assessed. These differences result in deferred tax assets and liabilities, which are included in the Company's consolidated balance sheets. Additionally, the Company evaluates the potential realization of deferred income tax assets from future taxable income and establishes valuation allowances if their realization is deemed not more likely than not. Accordingly, income taxes charged against earnings may have been impacted by changes in the valuation allowance. Significant management estimates and judgment are required in determining any valuation allowances recorded against net deferred tax assets. | |
The Company accounts for uncertain tax positions by recording a liability for unrecognized tax benefits resulting from uncertain tax positions taken, or expected to be taken, in its tax returns. The Company includes any applicable interest and penalties related to uncertain tax positions in its income tax provision. | |
Earnings Per Share | |
Basic earnings per share ("EPS") is based on the weighted-average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution that could occur if certain share-based payment awards or financial instruments were exercised, earned or converted. | |
Share-Based Compensation | |
The Company recognizes share-based compensation expense over the service period that the awards are expected to vest. Share-based compensation expense includes the estimated effects of forfeitures, which are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized in the period of change and will also impact the amount of expense to be recognized in future periods. Determining the appropriate option pricing model, calculating the grant date fair value of share-based awards and estimating forfeiture rates requires considerable judgment, including the estimations of stock price volatility and the expected term of options granted. | |
The Company uses the Black-Scholes option pricing model to value employee stock options. The Company estimates stock price volatility based on daily averages of its historical volatility over a term approximately equal to the estimated time period the grant will remain outstanding. The expected term of options and forfeiture rate assumptions are derived from historical data. | |
Research and Development | |
Research and development costs are expensed as incurred, and consist primarily of global development efforts related to high-end process technologies for advanced sub-wavelength reticle solutions for IC photomask technologies. Research and development expenses also include the amortization of the carrying value of a technology license agreement with Micron Technology, Inc. (“Micron”). Under this technology license agreement, the Company has access to certain photomask technology developed by Micron. | |
Foreign Currency Translation | |
The Company's international subsidiaries maintain their accounts in their respective local currencies. Assets and liabilities of such subsidiaries are translated to U.S. dollars at year-end exchange rates. Income and expenses are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments are accumulated and reported in accumulated other comprehensive income, a component of equity. The effects of changes in exchange rates on foreign currency transactions, which are included in interest and other income (expense), net were a net gain of $1.4 million, $0.5 million and $0.2 million in fiscal years 2014, 2013 and 2012, respectively. | |
Noncontrolling Interests | |
Noncontrolling interests represents the minority shareholders' proportionate share in the equity of the Company's two majority-owned subsidiaries, PK Ltd. ("PKL") in Korea of which noncontrolling shareholders owned approximately 0.3% as of November 2, 2014 and November 3, 2013, and Photronics DNP Mask Corporation ("PDMC") in Taiwan, of which noncontrolling interests owned 49.99% and 1.37%, as of November 2, 2014 and November 3, 2013, respectively. The effect on its equity of the change in the Company’s ownership interest in PDMC is presented in Note 14. | |
Revenue Recognition | |
The Company recognizes revenue when there is persuasive evidence that an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery is determined by the shipping terms of the individual sales transactions. For sales with FOB destination or similar shipping terms, delivery occurs when the Company’s product reaches its destination and is received by the customer. For sales with FOB shipping point terms, delivery occurs when the Company’s product is received by the common carrier. The Company uses judgment when estimating the effect on revenue of discounts and product warranty obligations, both of which are accrued when the related revenue is recognized. | |
Warranties and Other Post Shipment Obligations – For a 30-day period, the Company warrants that items sold will conform to customer specifications. However, the Company’s liability is limited to the repair or replacement of the photomasks at its sole option. The Company inspects photomasks for conformity to customer specifications prior to shipment. Accordingly, customer returns of items under warranty have historically been insignificant. However, the Company records a liability at the time it recognizes revenue for the insignificant amount of estimated warranty returns based on historical experience. The Company’s specific return policies include accepting returns of products with defects, or products that have not been produced to precise customer specifications. | |
Sales Taxes – The Company reports its revenues net of any sales taxes billed to its customers. |
ACQUISITION_OF_DNP_PHOTOMASK_T
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. | 12 Months Ended | ||||||||
Nov. 02, 2014 | |||||||||
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. [Abstract] | |||||||||
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. | NOTE 2 – ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. | ||||||||
On April 4, 2014, DPTT merged into PSMC, the Company’s IC manufacturing subsidiary located in Taiwan, to form PDMC. Throughout this report the merger of DPTT into PSMC is referred to as the “DPTT Acquisition.” In connection with the DPTT Acquisition, the Company transferred consideration with a fair value of $41.0 million. The Company owns 50.01 percent of PDMC and includes its financial results in its consolidated financial statements, while DNP owns the remaining 49.99 percent of PDMC. The DPTT Acquisition was the result of the Company’s desire to combine the strengths in logic and memory photomask technologies of PSMC and DPTT in order to enhance its capability with customers in the region. | |||||||||
The DPTT Acquisition met the conditions of a business combination as defined by Accounting Standards Codification (“ASC”) 805 and, as such, is accounted for under ASC 805 using the acquisition method of accounting. ASC 805 defines the three elements of a business as Input, Process and Output. As a result of the DPTT Acquisition, Photronics acquired the machinery and equipment utilized in the processes to manufacture product, the building that houses the entire operation and the processes needed to manufacture the product, all previously owned by DPTT. The former DPTT employees hired by Photronics in connection with the acquisition brought with them the skills, experience and know-how necessary to provide the operational processes that, when applied to the acquired assets, represent processes being applied to inputs to create outputs. Having met all three elements of a business as defined in ASC 805, the Company determined that the DPTT Acquisition should be accounted for as a business combination. | |||||||||
The following table summarizes the provisional fair values of assets acquired and liabilities assumed of DPTT, the fair value of the noncontrolling interests and consideration for DPTT at the acquisition date. These provisional amounts could change as a result of the ultimate realization of the acquired net working capital. | |||||||||
Cash and cash equivalents | $ | 4,508 | |||||||
Accounts receivable (gross amount of $28,560, of which $500 is estimated to be uncollectable) | 28,060 | ||||||||
Inventory | 1,279 | ||||||||
Deferred tax asset | 9,787 | ||||||||
Other current assets | 11,517 | ||||||||
Property, plant and equipment | 95,431 | ||||||||
Identifiable intangible assets | 1,552 | ||||||||
Other long-term assets | 1,328 | ||||||||
Accounts payable and accrued expenses | (32,410 | ) | |||||||
Deferred tax liability | (3,042 | ) | |||||||
Other long-term liabilities | (3,291 | ) | |||||||
Total net assets acquired | 114,719 | ||||||||
Noncontrolling interests retained by DNP | 57,348 | ||||||||
57,371 | |||||||||
Consideration – 49.99% of fair value of PSMC | 40,999 | ||||||||
Gain on acquisition | $ | 16,372 | |||||||
In addition to recording the fair values of the net assets acquired, the Company also recorded a gain on acquisition of $16.4 million in the consolidated statement of income within other income (expense) in accordance with ASC 805 using the acquisition method of accounting. The gain on acquisition was primarily due to the difference between the market values of the acquired real estate and personal property exceeding the fair value of the consideration transferred. In addition, a deferred tax liability of $3.0 million was recorded in the opening balance sheet, which had the effect of reducing the gain on acquisition to $16.4 million. Prior to recording the gain, the Company reassessed whether it had correctly identified all of the assets acquired and all of the liabilities assumed. Additionally, the Company also reviewed the procedures used to measure the amounts of the identifiable assets acquired, liabilities assumed and consideration transferred. | |||||||||
The fair value of the consideration represents 49.99 percent of the fair value of PSMC, and is based on recent prices paid by the Company to acquire outstanding shares of PSMC (prior to the acquisition). As a result of the merger, the Company acquired the net assets of DPTT having a fair value of $114.7 million, less noncontrolling interests of $57.3 million retained by DNP, and transferred consideration with a fair value of $41.0 million, resulting in a gain of $16.4 million. | |||||||||
The acquisition date fair value of the property, plant and equipment of DPTT was $95.4 million, which was determined by utilizing the cost and, to a lesser extent, the market approach, based on an in-use premise of value. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions include local and current construction replacement cost multipliers, amounts of ancillary replacement costs, physical deterioration, and economic and functional obsolescence to adjust the current replacement costs by, as well as the estimated economic lives of the assets. | |||||||||
Identifiable intangible assets acquired were primarily customer relationships, which represent the fair value of relationships and agreements DPTT had in place at the date of the merger. The customer relationships had a fair value of $1.5 million at the acquisition date, determined by using the multi-period excess earnings method, and are amortized over a twelve year estimated useful life. The acquisition date fair value of the remainder of the identifiable assets acquired and liabilities assumed were equivalent to, or did not materially differ from, their carrying values. | |||||||||
Acquisition costs related to the merger were $2.5 million and $0.8 million for fiscal year 2014 and 2013, respectively, and are included in selling, general and administrative expense in the consolidated statements of income. | |||||||||
Revenues and net income of PDMC included in the Company’s financial results from the April 4, 2014 acquisition date through November 2, 2014, were $101.8 million and $6.0 million, respectively. | |||||||||
Unaudited Pro Forma Financial Information | |||||||||
The following unaudited pro forma financial information presents financial information as if the DPTT acquisition had occurred as of the beginning of fiscal year 2013. The pro forma earnings for fiscal years 2014 and 2013 were adjusted to exclude the above mentioned $2.5 million and $0.8 million non-recurring acquisition related costs and the gain on acquisition of $16.4 million. Other material non-recurring pro forma adjustments made to arrive at the below earnings amounts included the add back of additional depreciation recorded against DPTT long-lived assets of $6.6 million and $12.9 million for fiscal years 2014 and 2013, respectively. The pro forma information presented does not purport to represent results that would have been achieved had the merger occurred as of the beginning of the earliest period presented, or to be indicative of the Company’s future financial performance. | |||||||||
Year Ended | |||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
Revenues | $ | 499,968 | $ | 514,265 | |||||
Net income | $ | 23,969 | $ | 34,922 | |||||
Net income attributable to Photronics, Inc. shareholders | $ | 12,169 | $ | 21,902 | |||||
Diluted earnings per share | $ | 0.19 | $ | 0.36 |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Nov. 02, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT | NOTE 3 - PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment consists of the following: | |||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
Land | $ | 8,598 | $ | 8,692 | |||||
Buildings and improvements | 124,787 | 103,676 | |||||||
Machinery and equipment | 1,367,691 | 1,225,091 | |||||||
Leasehold improvements | 20,165 | 4,179 | |||||||
Furniture, fixtures and office equipment | 12,086 | 11,546 | |||||||
Construction in progress | 81,351 | 97,319 | |||||||
1,614,678 | 1,450,503 | ||||||||
Less accumulated depreciation and amortization | 1,064,609 | 1,027,763 | |||||||
$ | 550,069 | $ | 422,740 | ||||||
Property under capital leases are included in above property, plant and equipment as follows: | |||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
Machinery and equipment | $ | 56,245 | $ | 21,327 | |||||
Construction in progress | - | 34,918 | |||||||
56,245 | 56,245 | ||||||||
Less accumulated amortization | 10,430 | 4,932 | |||||||
$ | 45,815 | $ | 51,313 |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
INTANGIBLE ASSETS [Abstract] | |||||||||||||
INTANGIBLE ASSETS | NOTE 4 - INTANGIBLE ASSETS | ||||||||||||
Intangible assets include assets related to the investment to form the MP Mask joint venture and other finite lived intangible assets. Amortization expense of intangible assets was $5.8 million, $5.5 million and $5.0 million in fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
Intangible assets consist of: | |||||||||||||
Gross | Accumulated | Net | |||||||||||
As of November 2, 2014 | Amount | Amortization | Amount | ||||||||||
Technology license agreement | $ | 59,616 | $ | 33,451 | $ | 26,165 | |||||||
Customer relationships | 8,716 | 6,394 | 2,322 | ||||||||||
Supply agreements | 6,959 | 6,605 | 354 | ||||||||||
Software and other | 6,223 | 4,770 | 1,453 | ||||||||||
$ | 81,514 | $ | 51,220 | $ | 30,294 | ||||||||
As of November 3, 2013 | |||||||||||||
Technology license agreement | $ | 59,616 | $ | 29,477 | $ | 30,139 | |||||||
Customer relationships | 7,210 | 5,599 | 1,611 | ||||||||||
Supply agreements | 6,959 | 6,381 | 578 | ||||||||||
Software and other | 5,728 | 3,976 | 1,752 | ||||||||||
$ | 79,513 | $ | 45,433 | $ | 34,080 | ||||||||
The weighted-average amortization period for intangible assets acquired in fiscal year 2014 is nine years, which is comprised of customer relationships and software and other that have weighted-average amortization periods of twelve years and three years, respectively. The weighted-average amortization period for intangible assets acquired in fiscal year 2013 is three years, which is comprised of software and other. | |||||||||||||
Intangible asset amortization over the next five years is estimated to be as follows: | |||||||||||||
Fiscal Years: | |||||||||||||
2015 | $ | 6,120 | |||||||||||
2016 | 5,668 | ||||||||||||
2017 | 5,340 | ||||||||||||
2018 | 5,064 | ||||||||||||
2019 | 4,972 |
JOINT_VENTURE_TECHNOLOGY_LICEN
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. [Abstract] | |||||||||||||
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. | NOTE 5 - JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. | ||||||||||||
In May 2006, Photronics and Micron Technology, Inc. ("Micron") entered into the MP Mask joint venture (“MP Mask”), which develops and produces photomasks for leading-edge and advanced next generation semiconductors. At the time of the formation of the joint venture, the Company also entered into both an agreement to license photomask technology developed by Micron and certain supply agreements. | |||||||||||||
This joint venture is a variable interest entity ("VIE") (as that term is defined in the Accounting Standards Codification ("ASC") ) because all costs of the joint venture are passed on to the Company and Micron through purchase agreements they have entered into with the joint venture, and it is dependent upon the Company and Micron for any additional cash requirements. On a quarterly basis the Company reassesses whether its interest in MP Mask gives it a controlling financial interest in this VIE. The purpose of this quarterly reassessment is to identify the primary beneficiary (which is defined in the ASC as the entity that consolidates a VIE) of the VIE. As a result of the reassessments in fiscal year 2014, the Company determined that Micron is still the primary beneficiary of the VIE, by virtue of its tie-breaking voting rights within MP Mask’s Board of Managers, thereby giving it the power to direct the activities of MP Mask that most significantly impact its economic performance, including its decision making authority in the ordinary course of business and its purchasing the majority of products produced by the VIE. | |||||||||||||
The Company has utilized MP Mask for both high-end IC photomask production and research and development purposes. MP Mask charges its variable interest holders based on their actual usage of its facility and charges separately for any research and development activities it engages in at the requests of its owners. | |||||||||||||
MP Mask is governed by a Board of Managers, appointed by Micron and the Company. Since MP Mask's inception, Micron, as a result of its majority ownership, has held majority voting power on the Board of Managers. The voting power held by each party is subject to change as ownership interests change. Under the MP Mask joint venture operating agreement, the Company may be required to make additional capital contributions to MP Mask up to the maximum amount defined in the operating agreement. However, should the Board of Managers determine that further additional funding is required, MP Mask shall pursue its own financing. If MP Mask is unable to obtain its own financing, it may request additional capital contributions from the Company. Should the Company choose not to make a requested contribution to MP Mask, its ownership percentage may be reduced. MP Mask did not request, and the Company did not make, any contributions to MP Mask in fiscal years 2014 or 2013 and it did not receive any distributions from MP Mask during fiscal years 2014 or 2013. | |||||||||||||
The Company's investment in the VIE, which represents its maximum exposure to loss, was $93.1 million at November 2, 2014 and November 3, 2013. These amounts are reported in the Company's consolidated balance sheets as Investment in joint venture. The Company recorded losses from its investment in MP Mask of $0.1 million in fiscal years 2013 and 2012, and none in fiscal year 2014. Income (loss) from MP Mask is included in Interest and other income, net, in the consolidated statements of income. | |||||||||||||
As of November 2, 2014, the Company owed MP Mask $4.2 million and had a receivable from Micron of $6.8 million, both primarily related to the aforementioned supply agreements. The Company, in 2014, recorded $1.2 million of commission revenue earned under the supply agreements it has with Micron and MP Mask, and amortization of $0.2 million of the related supply agreement intangible asset. In 2014 the Company also recorded cost of sales in the amount of $3.2 million for photomasks produced by MP Mask for the Company's customers, and incurred expenses of $1.6 million for research and development activities and other goods and services purchased from MP Mask by the Company. In 2014 the Company purchased equipment from MP Mask for $1.3 million. | |||||||||||||
As of November 3, 2013, the Company owed MP Mask $4.5 million and had a receivable from Micron of $4.9 million, both primarily related to the aforementioned supply agreements. The Company, in 2013, recorded $0.9 million of commission revenue earned under the supply agreements it has with Micron and MP Mask, and amortization of $0.3 million of the related supply agreement intangible asset. In 2013 the Company also recorded cost of sales in the amount of $8.7 million for photomasks produced by MP Mask for the Company's customers, and incurred expenses of $1.6 million for research and development activities and other goods and services purchased from MP Mask by the Company. In 2013 the Company purchased equipment from MP Mask for $6.1 million. | |||||||||||||
The Company, in 2012, recorded $1.6 million of commission revenue earned under the supply agreements it has with Micron and MP Mask, and amortization of $0.4 million of the related supply agreement intangible asset. In 2012 the Company also recorded cost of sales in the amount of $7.6 million for photomasks produced by MP Mask for the Company's customers, and incurred expenses of $2.0 million for research and development activities and other goods and services purchased from MP Mask by the Company. In 2012 the Company purchased equipment from MP Mask for $1.9 million. | |||||||||||||
In the second quarter of fiscal 2012 the Company paid $35 million to Micron in connection with the purchase of the U.S. nanoFab facility and the remaining term of the operating lease agreement through 2014 was cancelled. | |||||||||||||
Summarized financial information of MP Mask is presented below. | |||||||||||||
As of Fiscal Year End | |||||||||||||
2014 | 2013 | ||||||||||||
Current assets | $ | 31,696 | $ | 35,794 | |||||||||
Noncurrent assets | 205,457 | 177,769 | |||||||||||
Current liabilities | 44,024 | 28,497 | |||||||||||
Noncurrent liabilities | 6,804 | - | |||||||||||
Fiscal Year | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | $ | 81,399 | $ | 77,900 | $ | 84,216 | |||||||
Gross profit | 3,427 | 4,663 | 1,799 | ||||||||||
Net income | 1,259 | 4,735 | 831 |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Nov. 02, 2014 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | NOTE 6 - ACCRUED LIABILITIES |
Accrued liabilities include salaries, wages and related benefits of $10.4 million and $10.2 million at November 2, 2014 and November 3, 2013, respectively, and an acquisition liability of $7.2 million at November 2, 2014. |
LONGTERM_BORROWINGS
LONG-TERM BORROWINGS | 12 Months Ended | ||||||||
Nov. 02, 2014 | |||||||||
LONG-TERM BORROWINGS [Abstract] | |||||||||
LONG-TERM BORROWINGS | NOTE 7 - LONG-TERM BORROWINGS | ||||||||
Long-term borrowings consist of the following: | |||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
3.25% convertible senior notes due in April 2016 | $ | 115,000 | $ | 115,000 | |||||
5.50% convertible senior notes due and converted in October 2014 | - | 22,054 | |||||||
2.77% capital lease obligation payable through July 2018 | 20,481 | 25,065 | |||||||
3.09% capital lease obligation payable through March 2016 | 6,705 | 10,652 | |||||||
Term loan, which bore interest at a variable rate, as defined (2.69% at November 3, 2013), repaid in December 2013 | - | 21,250 | |||||||
142,186 | 194,021 | ||||||||
Less current portion | 10,381 | 11,818 | |||||||
$ | 131,805 | $ | 182,203 | ||||||
The $115.0 million of long-term borrowings, excluding capital lease obligations, that was outstanding as of November 2, 2014, matures in fiscal year 2016. | |||||||||
As of November 2, 2014, minimum lease payments under the Company's capital lease obligations were as follows: | |||||||||
Fiscal Years: | |||||||||
2015 | $ | 11,070 | |||||||
2016 | 7,546 | ||||||||
2017 | 5,168 | ||||||||
2018 | 4,698 | ||||||||
28,482 | |||||||||
Less interest | 1,296 | ||||||||
Net minimum lease payments under capital leases | 27,186 | ||||||||
Less current portion of net minimum lease payments | 10,381 | ||||||||
Long-term portion of minimum lease payments | $ | 16,805 | |||||||
In October 2014 the 5.50% convertible senior notes, with a principal balance of $22.1 million, matured and were converted into 4.3 million shares of the Company’s common stock. See below for further discussion. | |||||||||
In August 2014 the Company amended its credit facility. The credit facility, which expires in December 2018, has a $50 million limit with an expansion capacity to $75 million, and is secured by substantially all of the Company’s assets located in the United States and common stock the Company owns in certain of its foreign subsidiaries. The credit facility is subject to a minimum interest coverage ratio, total leverage ratio and minimum unrestricted cash balance financial covenants, all of which the Company was in compliance with at November 2, 2014. The Company had no outstanding borrowings against the credit facility at November 2, 2014, and $50 million was available for borrowing. The interest rate on the credit facility (1.67% at November 2, 2014) is based on the Company’s total leverage ratio at LIBOR plus a spread, as defined in the credit facility. | |||||||||
In August 2013 a $26.4 million principal amount, five year capital lease commenced to fund the purchase of a high-end lithography tool. Payments under the capital lease, which bears interest at 2.77% are $0.5 million per month through July 2018. Under the terms of the lease agreement, the Company must maintain the equipment in good working order, and is subject to a cross default with cross acceleration provision related to certain nonfinancial covenants incorporated in its credit facility. As of November 2, 2014, the total amount payable through the end of the lease term was $21.6 million, of which $20.5 million represented principal and $1.1 million represented interest. | |||||||||
In March 2012 the Company, in connection with its purchase of the U.S. nanoFab facility (see Note 5 for further discussion), amended its credit facility (“the credit facility”) to include the addition of a $25 million term loan that was to mature in March 2017. Simultaneously with entering into the amended credit facility, the Company repaid the $21.3 million balance of this term loan. | |||||||||
In March 2011 the Company issued through a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended, $115 million aggregate principal amount of 3.25% convertible senior notes. The notes mature on April 1, 2016, and note holders may convert each $1,000 principal amount of notes to approximately 96 shares of common stock (equivalent to an initial conversion price of $10.37 per share of common stock) at any time prior to the close of business on the second scheduled trading day immediately preceding April 1, 2016. The conversion rate is subject to adjustment upon the occurrence of certain events, which are described in the indenture dated March 28, 2011. The Company is not required to redeem the notes prior to their maturity date. Interest on the notes accrues in arrears, and is paid semiannually through the notes’ maturity date. The net proceeds of the notes were approximately $110.7 million, which were used, in part, to acquire $35.4 million of the Company’s then outstanding 5.5% convertible senior notes and to repay, in full, its then outstanding obligations under capital leases of $19.8 million. | |||||||||
In September 2009 the Company issued, through a public offering, $57.5 million aggregate principal amount of 5.5% convertible senior notes with a five year term. Under the terms of the offering, the note holders could convert each $1,000 principal amount of notes to approximately 197 shares of common stock (equivalent to an initial conversion price of $5.08 per share of common stock) on, or before, September 30, 2014. The net proceeds of this offering were approximately $54.9 million, which were used to reduce amounts outstanding under the Company’s credit facility. As discussed above, $35.4 million of these notes were repurchased in fiscal 2011 with a portion of the proceeds from the March 2011 issuance of the Company’s 3.25% convertible senior notes. As discussed above, the remaining $22.1 million of these notes were converted in a non-cash transaction by their holders to 4.3 million shares of the Company’s common stock upon their maturity in October 2014. | |||||||||
In April 2011 the Company entered into a five year, $21.2 million capital lease for manufacturing equipment. Payments under the lease, which bears interest at 3.09%, are $0.4 million per month through March 2016. The lease agreement provides that the Company must maintain the equipment in good working order, and includes a cross default with cross acceleration provision related to certain non-financial covenants incorporated in the Company's credit facility agreement. As of November 2, 2014, the total amount payable through the end of the lease term was $6.9 million, of which $6.7 million represented principal and $0.2 million represented interest. | |||||||||
Interest payments were $6.3 million in fiscal 2014, 2013 and 2012, including deferred financing cost payments of $0.3 million and $0.2 million in fiscal 2014 and 2012, respectively. |
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended | ||||
Nov. 02, 2014 | |||||
OPERATING LEASES [Abstract] | |||||
OPERATING LEASES | NOTE 8 - OPERATING LEASES | ||||
The Company leases various real estate and equipment under non-cancelable operating leases, for which rental expense was $2.8 million, $2.7 million and $2.7 million in fiscal years 2014, 2013 and 2012, respectively. In fiscal 2012 the Company paid the former lessor $35 million in connection with its purchase of the U.S. nanoFab, which reduced the Company’s outstanding operating lease commitments by a total of $15 million for fiscal years 2013 and 2014. | |||||
At November 2, 2014, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year are as follows: | |||||
2015 | $ | 2,292 | |||
2016 | 2,063 | ||||
2017 | 1,595 | ||||
2018 | 569 | ||||
2019 | 340 | ||||
Thereafter | 1,983 | ||||
$ | 8,842 | ||||
See Note 7 for disclosures related to the Company's capital lease obligations. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Nov. 02, 2014 | ||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||
SHARE-BASED COMPENSATION | NOTE 9 – SHARE-BASED COMPENSATION | |||||||||||||
The Company has a share-based compensation plan ("Plan"), under which options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance units, and other awards based on, or related to, shares of the Company's common stock may be granted from shares authorized but unissued or shares previously issued and reacquired by the Company. The maximum number of shares of common stock approved by the Company’s shareholders to be issued under the Plan was increased from six million to nine million shares during fiscal 2014. Awards may be granted to officers, employees, directors, consultants, advisors, and independent contractors of the Company or its subsidiaries. In the event of a change in control (as defined in the Plan), the vesting of awards may be accelerated. The Plan, aspects of which are more fully described below, prohibits further awards from being issued under prior plans. The Company incurred total share-based compensation expenses of $4.1 million, $4.0 million and $3.2 million in fiscal years 2014, 2013 and 2012, respectively. No share-based compensation cost was capitalized as part of an asset and no related income tax benefits were recorded during the fiscal years presented. | ||||||||||||||
Stock Options | ||||||||||||||
Option awards generally vest in one to four years, and have a ten year contractual term. All incentive and non-qualified stock option grants must have an exercise price no less than the market value of the underlying common stock on the date of grant. The grant date fair values of options are based on the closing prices of the Company’s common stock on the date of grant using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility of the Company's stock. The Company uses historical option exercise behavior and employee termination data to estimate expected term, which represents the period of time that the options granted are expected to remain outstanding. The risk-free rate of return for the estimated term of the option is based on the U.S. Treasury yield curve in effect at the date of grant. | ||||||||||||||
The weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair values of options issued during fiscal years 2014, 2013 and 2012 are presented in the following table: | ||||||||||||||
Year Ended | ||||||||||||||
November 2, | November 3, | October 28, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected volatility | 61 | % | 98 | % | 102.1 | % | ||||||||
Risk-free rate of return | 1.4 | % | 0.5 – 1.4 | % | 0.6 – 0.9 | % | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
Expected term | 4.6 years | 4.3 years | 4.3 years | |||||||||||
A summary of option activity under the Plan as of November 2, 2014, and changes during the year then ended is presented as follows: | ||||||||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Exercise Price | Remaining | Intrinsic Value | ||||||||||||
Options | Contractual Life | |||||||||||||
Outstanding at November 3, 2013 | 4,174,302 | $ | 8.43 | |||||||||||
Granted | 632,500 | 8.86 | ||||||||||||
Exercised | (283,083 | ) | 3.75 | |||||||||||
Cancelled and forfeited | (446,938 | ) | 19.5 | |||||||||||
Outstanding at November 2, 2014 | 4,076,781 | $ | 7.6 | 5.6 years | $ | 10,778 | ||||||||
Exercisable at November 2, 2014 | 2,628,203 | $ | 7.78 | 4.2 years | $ | 8,314 | ||||||||
Expected to vest as of November 2, 2014 | 1,329,318 | $ | 7.29 | 8.2 years | $ | 2,261 | ||||||||
The weighted-average grant date fair value of options granted during fiscal years 2014, 2013 and 2012 were $4.44, $4.00 and $4.47, respectively. The total intrinsic value of options exercised during fiscal years 2014, 2013 and 2012 was $1.4 million, $1.6 million and $1.3 million, respectively. | ||||||||||||||
The Company received cash from option exercises of $1.1 million, $0.5 million and $0.3 million in fiscal years 2014, 2013 and 2012, respectively. As of November 2, 2014, the total unrecognized compensation cost of unvested option awards was approximately $3.9 million. That cost is expected to be recognized over a weighted-average amortization period of 2.3 years. | ||||||||||||||
Restricted Stock | ||||||||||||||
The Company periodically grants restricted stock awards. The restrictions on these awards typically lapse over a service period of less-than-one to four years. The weighted-average grant date fair values of restricted stock awards issued during fiscal years 2014, 2013 and 2012 were $8.86, $5.48 and $6.28, respectively. The total fair value of awards for which restrictions lapsed was $1.5 million, $1.3 million and $0.5 million during fiscal years 2014, 2013 and 2012, respectively. As of November 2, 2014, the total compensation cost for restricted stock awards not yet recognized was approximately $0.9 million. That cost is expected to be recognized over a weighted-average amortization period of 2.1 years. | ||||||||||||||
A summary of the status of the Company's outstanding restricted stock awards as of November 2, 2014, is presented below: | ||||||||||||||
Shares | Weighted- | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
at Grant | ||||||||||||||
Restricted Stock | Date | |||||||||||||
Outstanding at November 3, 2013 | 303,627 | $ | 6.48 | |||||||||||
Granted | 111,667 | 8.86 | ||||||||||||
Vested | (171,563 | ) | 7.6 | |||||||||||
Cancelled | (8,250 | ) | 5.91 | |||||||||||
Outstanding at November 2, 2014 | 235,481 | 6.81 | ||||||||||||
Expected to vest as of November 2, 2014 | 220,531 | 6.82 | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
The Company's Employee Stock Purchase Plan ("ESPP") permits employees to purchase shares at 85% of the lower of the fair market value at the commencement of the offering or the last day of the payroll payment period. The maximum number of shares of common stock approved by the Company's shareholders to be purchased under the ESPP was increased from 1.2 million shares to 1.5 million shares during fiscal 2012. The vesting period for shares purchased under the ESPP is approximately one year. Under the ESPP, approximately 1.3 million shares had been issued through November 2, 2014, and approximately 57,000 shares are subject to outstanding subscriptions. As of November 2, 2014, the total compensation cost related to the ESPP not yet recognized was $0.1 million, which is expected to be recognized in fiscal 2015. |
EMPLOYEE_RETIREMENT_PLAN
EMPLOYEE RETIREMENT PLAN | 12 Months Ended |
Nov. 02, 2014 | |
EMPLOYEE RETIREMENT PLAN [Abstract] | |
EMPLOYEE RETIREMENT PLAN | NOTE 10 - EMPLOYEE RETIREMENT PLAN |
The Company maintains a 401(k) Savings and Profit Sharing Plan ("401(k) Plan") which covers all full-time domestic employees who have completed three months of service and are 18 years of age or older. Under the terms of the 401(k) Plan, employees may contribute up to 50% of their salary, subject to certain maximum amounts, which will be matched by the Company at 50% of the employee's contributions that are not in excess of 4% of the employee's compensation. Employee and employer contributions vest upon contribution. Employer contributions amounted to $0.4 million in fiscal years 2014, 2013 and 2012. |
CONSOLIDATION_RESTRUCTURING_AN
CONSOLIDATION, RESTRUCTURING AND RELATED CHARGES | 12 Months Ended |
Nov. 02, 2014 | |
CONSOLIDATION, RESTRUCTURING AND RELATED CHARGES [Abstract] | |
CONSOLIDATION, RESTRUCTURING AND RELATED CHARGES | NOTE 11 - CONSOLIDATION, RESTRUCTURING AND RELATED CHARGES |
In the first quarter of fiscal 2012 the Company ceased the manufacture of photomasks at its Singapore facility and, in connection therewith, recorded charges of $1.4 million during fiscal 2012. This restructuring, which was comprised primarily of employee termination costs, was substantially completed in fiscal 2012. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
INCOME TAXES | NOTE 12 - INCOME TAXES | ||||||||||||
Income before the income tax provisions consist of the following: | |||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (23,083 | ) | $ | (14,164 | ) | $ | (5,474 | ) | ||||
Foreign | 64,413 | 40,969 | 46,122 | ||||||||||
$ | 41,330 | $ | 26,805 | $ | 40,648 | ||||||||
The income tax provisions consist of the following: | |||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 354 | $ | 208 | $ | 81 | |||||||
State | - | 65 | (5 | ) | |||||||||
Foreign | 4,726 | 7,222 | 11,332 | ||||||||||
Deferred: | |||||||||||||
Federal | - | - | - | ||||||||||
State | (5 | ) | (181 | ) | - | ||||||||
Foreign | 4,220 | (85 | ) | (615 | ) | ||||||||
Total | $ | 9,295 | $ | 7,229 | $ | 10,793 | |||||||
The income tax provisions differ from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes as a result of the following: | |||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal income tax at statutory rate | $ | 14,465 | $ | 9,382 | $ | 14,227 | |||||||
Changes in valuation allowances | (7,575 | ) | 1,325 | 1,806 | |||||||||
Distributions from foreign subsidiaries | 12,674 | 1,957 | 2,073 | ||||||||||
State income taxes, net of federal benefit | (141 | ) | 267 | (1,956 | ) | ||||||||
Foreign tax rate differentials | (4,864 | ) | (4,851 | ) | (3,805 | ) | |||||||
Tax credits | (2,847 | ) | (3,967 | ) | (1,071 | ) | |||||||
Uncertain tax positions, including reserves, settlements and resolutions | (2,255 | ) | 1,471 | 1,984 | |||||||||
Debt extinguishment losses | - | - | (2,879 | ) | |||||||||
Gain on acquisition of DPTT | (5,748 | ) | - | - | |||||||||
Intercompany gain elimination | 4,759 | - | - | ||||||||||
Equity based compensation | 714 | 765 | 499 | ||||||||||
Other, net | 113 | 880 | (85 | ) | |||||||||
$ | 9,295 | $ | 7,229 | $ | 10,793 | ||||||||
The effective tax rate differs from the U.S. statutory rate of 35% in fiscal years 2014, 2013 and 2012 primarily due to earnings, including the fiscal year 2014 gain on acquisition of DPTT, being taxed at lower statutory rates in foreign jurisdictions, combined with the benefit of various investment credits in a foreign jurisdiction. Valuation allowances in jurisdictions with historic and continuing losses eliminate the effective rate impact of these jurisdictions. | |||||||||||||
The net deferred income tax assets consist of the following: | |||||||||||||
As of | |||||||||||||
November 2, | November 3, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating losses | $ | 64,529 | $ | 57,631 | |||||||||
Reserves not currently deductible | 6,948 | 7,101 | |||||||||||
Alternative minimum tax credits | 3,121 | 3,116 | |||||||||||
Tax credit carryforwards | 8,368 | 7,051 | |||||||||||
Other | 1,773 | 1,892 | |||||||||||
84,739 | 76,791 | ||||||||||||
Valuation allowances | (49,548 | ) | (56,661 | ) | |||||||||
35,191 | 20,130 | ||||||||||||
Deferred income tax liabilities: | |||||||||||||
Undistributed earnings of foreign subsidiaries | (5,366 | ) | (5,347 | ) | |||||||||
Property, plant and equipment | (11,503 | ) | (890 | ) | |||||||||
Investments | (2,660 | ) | (371 | ) | |||||||||
Other | (448 | ) | (992 | ) | |||||||||
(19,977 | ) | (7,600 | ) | ||||||||||
Net deferred income tax assets | $ | 15,214 | $ | 12,530 | |||||||||
Reported as: | |||||||||||||
Current deferred tax assets | $ | 7,223 | $ | 1,082 | |||||||||
Noncurrent deferred tax assets | 11,036 | 12,455 | |||||||||||
Noncurrent deferred tax liabilities | (3,045 | ) | (1,007 | ) | |||||||||
$ | 15,214 | $ | 12,530 | ||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows: | |||||||||||||
Year Ended | |||||||||||||
2-Nov-14 | 3-Nov-13 | October 28, | |||||||||||
2012 | |||||||||||||
Balance at beginning of year | $ | 4,757 | $ | 3,793 | $ | 1,824 | |||||||
Additions (reductions) for tax positions in prior years | 3,437 | 1,224 | 1,932 | ||||||||||
Additions based on current year tax positions | 272 | 207 | 616 | ||||||||||
Settlements | (3,155 | ) | (406 | ) | (518 | ) | |||||||
Lapses of statutes of limitations | (318 | ) | (61 | ) | (61 | ) | |||||||
Balance at end of year | $ | 4,993 | $ | 4,757 | $ | 3,793 | |||||||
Unrecognized tax benefits associated with uncertain tax positions were $5.1 million at November 2, 2014, of which $5.0 million is recorded in other liabilities in the consolidated balance sheet and $0.1 million is recorded as a reduction to deferred tax assets, and were $4.9 million at November 3, 2013, of which $1.7 million is recorded in other liabilities in the consolidated balance sheet, and $3.2 million is recorded as a reduction to deferred tax assets. If recognized, $5.0 million of the benefits would favorably impact the Company's effective tax rate in future periods. Included in these amounts for both fiscal years 2014 and 2013 was $0.1 million of interest and penalties. The Company includes any applicable interest and penalties related to uncertain tax positions in its income tax provision. The above table includes the fiscal year 2014 settlement of an Internal Revenue Service (“IRS”) income tax examination of the Company’s 2011 and 2012 federal income tax returns, as well as the recognition of previously unrecognized tax benefits resulting from the lapse of the assessment periods, which were offset in part by uncertain tax positions related to the acquisition of DPTT (as discussed in Note 2). The IRS income tax settlement had limited impact on the fiscal 2014 income tax expense, as the changes that resulted from the examination were offset by loss carryforwards, for which the related deferred tax assets were subject to a valuation allowance. Shortly after the close of the 2013 fiscal year, the Company reached a settlement with the relevant tax authorities regarding one of its non-US subsidiary’s 2010 tax year, as reflected in the fiscal 2013 table above. As of November 2, 2014, the Company does not believe it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease in the next twelve months. The Company is no longer subject to examination by the U.S. for years prior to and including fiscal year 2012. With respect to major foreign and state tax jurisdictions, the Company is no longer subject to tax authority examinations for years prior to and including fiscal year 2009. | |||||||||||||
As of November 2, 2014, the Company had available U.S. Federal tax operating loss carryforwards of approximately $123.6 million which expire between 2023 and 2034, and research and development tax credit carryforwards of approximately $4.0 million which expire between 2019 and 2034. As of November 2, 2014, the Company also has U.S. state tax operating loss carryforwards of approximately $209.5 million and foreign tax operating loss carryforwards of approximately $73.1 million, including $34.6 million remaining of the $58.6 million acquired in the acquisition of DPTT. These loss carryforwards expire between 2015 and 2034 with the exception of $1.0 million that has an indefinite life. | |||||||||||||
The Company has established a valuation allowance for a portion of its deferred tax assets because it believes, based on the weight of all available evidence, that it is more likely than not that a portion of its net operating loss carryforwards will expire prior to utilization. The valuation allowance increased (decreased) by $(7.1 million), $1.1 million and $2.5 million in fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
As of November 2, 2014, the Company had $3.1 million of alternative minimum tax credit carryforwards that are available to offset future federal income taxes payable and will not expire. The Company also has state tax credits available of $5.6 million which, if they are not utilized, will expire between 2015 and 2034 and a foreign investment tax credit of $0.8 million that expires in 2019 if not utilized. | |||||||||||||
As of November 2, 2014, the undistributed earnings of foreign subsidiaries included in consolidated retained earnings amounted to $142.5 million, of which $15.3 million is not considered to be permanently invested. No provision has been made for future U.S. taxes payable on the remaining undistributed earnings of $127.2 million, as they are expected to be indefinitely invested in foreign jurisdictions and therefore are not anticipated to be subject to U.S. tax. The amount of undistributed earnings is calculated taking into account the net amount of earnings of the Company’s foreign subsidiaries, considering its multitier subsidiary structure, and translating those earnings into U.S. dollars using exchange rates in effect as of the balance sheet date. Prior to the acquisition of DPTT, PDMC (formerly PSMC), in accordance with the ownership provisions in the DPTT acquisition agreements, made a onetime remittance of $35 million in earnings that were previously considered to be indefinitely invested. The Company has not changed its assertion on the balance of PDMC earnings which remain indefinitely invested. Should the Company elect in the future to repatriate the foreign earnings so invested, it may incur additional income tax expense on those foreign earnings, the amount of which is not practicable to compute. | |||||||||||||
PKLT, the Company's FPD manufacturing facility in Taiwan, has been accorded a tax holiday, which started in 2012 and expires in 2017. This tax holiday had no dollar or per share effect in the fiscal years ended November 2, 2014, November 3, 2013 and October 28, 2012. PDMC, acquired an IC manufacturing facility in Taiwan as a result of the DPTT Acquisition, that has been accorded a tax holiday which is scheduled to commence in 2015 and expire in 2019. This tax holiday had no dollar or per share effect on the 2014, 2013 or 2012 fiscal years. In Korea, various investment tax credits have been earned to reduce the Company's effective income tax rate. | |||||||||||||
Income tax payments were $5.2 million, $10.7 million and $14.3 million in fiscal 2014, 2013 and 2012, respectively. Cash received for refunds of income taxes paid in prior years amounted to $1.4 million, $0.3 million and $0.1 million in fiscal years 2014, 2013 and 2012, respectively. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||
EARNINGS PER SHARE | NOTE 13 - EARNINGS PER SHARE | ||||||||||||
The calculation of basic and diluted earnings per share is presented as follows: | |||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 25,996 | $ | 17,966 | $ | 27,868 | |||||||
Effect of dilutive securities: | |||||||||||||
Interest expense on convertible notes, net of related tax effects | 1,426 | - | 6,168 | ||||||||||
Gain related to common stock warrants fair value adjustment | - | - | (94 | ) | |||||||||
Earnings for diluted earnings per share | $ | 27,422 | $ | 17,966 | $ | 33,942 | |||||||
Weighted-average common shares computations: | |||||||||||||
Weighted-average common shares used for basic earnings per share | 61,779 | 60,644 | 60,055 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Convertible notes | 3,945 | - | 15,423 | ||||||||||
Share-based payment awards | 955 | 813 | 767 | ||||||||||
Common stock warrants | - | 142 | 219 | ||||||||||
Dilutive potential common shares | 4,900 | 955 | 16,409 | ||||||||||
Weighted-average common shares used for diluted earnings per share | 66,679 | 61,599 | 76,464 | ||||||||||
Basic earnings per share | $ | 0.42 | $ | 0.3 | $ | 0.46 | |||||||
Diluted earnings per share | $ | 0.41 | $ | 0.29 | $ | 0.44 | |||||||
The table below shows the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise price exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be antidilutive. The table also shows convertible notes that, if converted, would have been antidilutive. | |||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Convertible notes | 11,085 | 6,168 | - | ||||||||||
Share based payment awards | 1,911 | 2,880 | 2,587 | ||||||||||
Total potentially dilutive shares excluded | 12,996 | 9,048 | 2,587 | ||||||||||
In the first quarter of fiscal year 2015, the Company awarded approximately 0.4 million shared-based payment awards to its employees and directors. |
SUBSIDIARY_SHARE_REPURCHASE_AN
SUBSIDIARY SHARE REPURCHASE AND TENDER OFFER | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
SUBSIDIARY SHARE REPURCHASE AND TENDER OFFER [Abstract] | |||||||||||||
SUBSIDIARY SHARE REPURCHASE AND TENDER OFFER | NOTE 14 – SUBSIDIARY SHARE REPURCHASE AND TENDER OFFER | ||||||||||||
Since the second quarter of fiscal 2011, the board of directors of PSMC (in 2014 PSMC’s name was changed to PDMC, see Note 2), a subsidiary of the Company based in Taiwan, authorized several share repurchase programs for PSMC to purchase for retirement shares of its outstanding common stock. The last of these repurchase programs concluded in the first fiscal quarter of 2013 in which PSMC purchased 9.2 million shares at a cost of $4.2 million. These repurchase programs increased the Company's ownership in PSMC from 72.09% at October 28, 2012, to 75.11% at January 27, 2013. During fiscal 2013 the Company increased its ownership interest in PSMC, primarily through a tender offer, to 98.63% by purchasing 51.4 million shares at a cost of $28.1 million. In January 2014 the Company increased its ownership percentage in PSMC to 100% at a cost of $1.7 million for the then remaining 3.0 million shares that were not owned by the Company. | |||||||||||||
The table below presents the effect of the change in the Company’s ownership interest in PSMC on the Company's equity for fiscal years 2014, 2013 and 2012 (in 2014 112.9 million shares of PSMC common stock were issued and 3.0 million shares were acquired, and shares of PSMC common stock were purchased in the amounts of 60.5 million shares in 2013 and 35.9 million shares in 2012). | |||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 25,996 | $ | 17,966 | $ | 27,868 | |||||||
Increase (decrease) in Photronics, Inc.'s additional paid-in capital | (6,183 | ) | 600 | 1,985 | |||||||||
Increase (decrease) in Photronics, Inc.’s accumulated other comprehensive income | 399 | (237 | ) | (78 | ) | ||||||||
Change from net income attributable to Photronics, Inc. shareholders due to issuance of shares of PDMC and transfers to or from noncontrolling interests | $ | 20,212 | $ | 18,329 | $ | 29,775 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Nov. 02, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 - COMMITMENTS AND CONTINGENCIES |
At November 2, 2014, the Company had outstanding purchase commitments of $84 million, which included $83 million related to capital expenditures, and had recorded liabilities for the purchase of equipment of $31 million. See Note 8 for operating lease commitments. | |
The Company is subject to various claims that arise in the ordinary course of business. The Company believes such claims, individually or in the aggregate, will not have a material effect on its consolidated financial statements. |
GEOGRAPHIC_AND_SIGNIFICANT_CUS
GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION [Abstract] | |||||||||||||
GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION | NOTE 16 - GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION | ||||||||||||
The Company operates as a single operating segment as a manufacturer of photomasks, which are high precision quartz plates containing microscopic images of electronic circuits for use in the fabrication of IC's and FPDs. Geographic net sales are based primarily on where the Company's manufacturing facility is located. | |||||||||||||
The Company's 2014, 2013 and 2012 net sales by geographic area and of ICs and FPDs, and long-lived assets by geographic area were as follows: | |||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Taiwan | $ | 167,075 | $ | 117,364 | $ | 109,232 | |||||||
Korea | 140,386 | 134,300 | 161,154 | ||||||||||
United States | 106,740 | 127,054 | 135,170 | ||||||||||
Europe | 38,726 | 41,126 | 40,653 | ||||||||||
All other | 2,600 | 2,336 | 4,230 | ||||||||||
$ | 455,527 | $ | 422,180 | $ | 450,439 | ||||||||
IC | $ | 352,679 | $ | 320,579 | $ | 350,105 | |||||||
FPD | 102,848 | 101,601 | 100,334 | ||||||||||
$ | 455,527 | $ | 422,180 | $ | 450,439 | ||||||||
As of | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Long-lived assets | |||||||||||||
Taiwan | $ | 207,324 | $ | 66,836 | $ | 72,185 | |||||||
Korea | 176,141 | 153,878 | 120,628 | ||||||||||
United States | 158,325 | 191,518 | 177,614 | ||||||||||
Europe | 8,259 | 10,471 | 10,262 | ||||||||||
All other | 20 | 37 | 119 | ||||||||||
$ | 550,069 | $ | 422,740 | $ | 380,808 | ||||||||
One customer accounted for 16%, 18% and 22% of the Company's net sales in fiscal years 2014, 2013 and 2012, respectively, and another customer accounted for 11% of the Company’s net sales in fiscal 2014. |
CHANGES_IN_ACCUMULATED_OTHER_C
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | 12 Months Ended | ||||||||||||||||
Nov. 02, 2014 | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | NOTE 17 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | ||||||||||||||||
The following tables set forth the changes in the Company's accumulated other comprehensive income by component (net of tax of $0) for the years ended November 2, 2014 and November 3, 2013: | |||||||||||||||||
Year Ended November 2, 2014 | |||||||||||||||||
Foreign Currency | Amortization | Other | Total | ||||||||||||||
Translation | of Cash | ||||||||||||||||
Adjustments | Flow Hedge | ||||||||||||||||
Balance at November 3, 2013 | $ | 27,797 | $ | (562 | ) | $ | (832 | ) | $ | 26,403 | |||||||
Other comprehensive income (loss) before reclassifications | (5,916 | ) | - | (41 | ) | (5,957 | ) | ||||||||||
Amounts reclassified from other accumulated comprehensive income | - | 128 | - | 128 | |||||||||||||
Net current period other comprehensive income (loss) | (5,916 | ) | 128 | (41 | ) | (5,829 | ) | ||||||||||
Less: other comprehensive loss attributable to noncontrolling interests | 770 | - | 31 | 801 | |||||||||||||
Other accumulated comprehensive income allocated to noncontrolling interests | 410 | 410 | |||||||||||||||
Purchase of common stock of subsidiary | - | - | (11 | ) | (11 | ) | |||||||||||
Balance at November 2, 2014 | $ | 22,651 | $ | (434 | ) | $ | (443 | ) | $ | 21,774 | |||||||
Year Ended November 3, 2013 | |||||||||||||||||
Foreign Currency | Amortization | Other | Total | ||||||||||||||
Translation | of Cash | ||||||||||||||||
Adjustments | Flow Hedge | ||||||||||||||||
Balance at October 29, 2012 | $ | 17,241 | $ | (690 | ) | $ | (651 | ) | $ | 15,900 | |||||||
Other comprehensive income before reclassifications | 9,805 | - | 54 | 9,859 | |||||||||||||
Amounts reclassified from other comprehensive income | - | 128 | - | 128 | |||||||||||||
Net current period other comprehensive income | 9,805 | 128 | 54 | 9,987 | |||||||||||||
Less: other comprehensive loss attributable to noncontrolling interests | 751 | - | 2 | 753 | |||||||||||||
Purchase of common stock of subsidiary | - | - | (237 | ) | (237 | ) | |||||||||||
Balance at November 3, 2013 | $ | 27,797 | $ | (562 | ) | $ | (832 | ) | $ | 26,403 | |||||||
The amortization of the cash flow hedge is included in Cost of sales in the consolidated statements of income for all periods presented. |
CONCENTRATIONS_OF_CREDIT_RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Nov. 02, 2014 | |
CONCENTRATIONS OF CREDIT RISK [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | NOTE 18 – CONCENTRATIONS OF CREDIT RISK |
Financial instruments that potentially subject the Company to credit risk principally consist of trade accounts receivables and temporary cash investments. The Company sells its products primarily to manufacturers in the semiconductor and FPD industries in North America, Europe and Asia. The Company believes that the concentration of credit risk in its trade receivables is substantially mitigated by the Company's ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. | |
The Company's cash and cash equivalents are deposited in several financial institutions, including institutions located within all of the countries in which it manufactures photomasks. Portions of deposits in some of these institutions may exceed the amount of insurance available for such deposits at these institutions. As these deposits are generally redeemable upon demand and are held by high quality, reputable institutions, the Company considers them to bear minimal credit risk. The Company further mitigates credit risks related to its cash and cash equivalents by spreading such risk among a number of institutions. |
OTHER_RELATED_PARTY_TRANSACTIO
OTHER RELATED PARTY TRANSACTIONS | 12 Months Ended |
Nov. 02, 2014 | |
OTHER RELATED PARTY TRANSACTIONS [Abstract] | |
OTHER RELATED PARTY TRANSACTIONS | NOTE 19 - OTHER RELATED PARTY TRANSACTIONS |
The chairman of the board and chief executive officer of the Company is also a director of a company that provides secure managed information technology services to Photronics. Another director of the Company is also a shareholder, chief executive officer and chairman of the board of this company. Since 2002, the Company has entered into various service contracts with this company to provide services to all of the Company's worldwide facilities. The Company incurred expenses for services provided by this company of $1.2 million, $1.7 million, and $1.8 million in fiscal years 2014, 2013 and 2012, respectively, and had an outstanding balance of $0.1 million due to this company as of November 2, 2014 and November 3, 2013. As of November 2, 2014, the Company had contracted with this company for various services through June 2015 at a cost of $0.9 million. | |
The Company purchases photomask blanks from a company of which an officer of the Company is a significant shareholder. The Company purchased $20.1 million, $20.0 million and $20.1 million of photomask blanks from this company in 2014, 2013 and 2012, respectively, for which the amount owed to this company was $4.4 million at November 2, 2014, and $4.6 million at November 3, 2013. | |
The Company believes that the terms of its transactions with the related parties described above were negotiated at arm's length and were no less favorable to the Company than terms it could have obtained from unrelated third parties. See Note 5 for other related party transactions. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Nov. 02, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 20 - FAIR VALUE MEASUREMENTS | ||||||||||||||||
The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices in active markets for identical securities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly; and Level 3, defined as unobservable inputs that are not corroborated by market data. | |||||||||||||||||
The Company did not have any assets or liabilities measured at fair value, on a recurring or a nonrecurring basis, at November 2, 2014, or November 3, 2013. During the three month period ended May 4, 2014, the Company measured and recorded the net assets it acquired in its subsidiary’s acquisition of DPTT at fair value. See Note 2 for further information. | |||||||||||||||||
Fair Value of Other Financial Instruments | |||||||||||||||||
The fair values of the Company's cash and cash equivalents (Level 1 measurements), accounts receivable, accounts payable, and certain other current assets and current liabilities (Level 2 measurements) approximate their carrying value due to their short-term maturities. The fair value of the Company's variable rate term loan is a Level 2 measurement and approximates its carrying value due to the variable nature of the underlying interest rates. The fair value of the Company's convertible senior notes is a Level 2 measurement that is determined using recent bid prices. | |||||||||||||||||
The table below presents the fair and carrying values of the Company's convertible senior notes at November 2, 2014, and November 3, 2013. | |||||||||||||||||
2-Nov-14 | 3-Nov-13 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
3.25% convertible senior notes | $ | 122,544 | $ | 115,000 | $ | 130,330 | $ | 115,000 | |||||||||
5.5% convertible senior notes | $ | - | $ | - | $ | 37,567 | $ | 22,054 |
QUARTERLY_RESULTS_OF_OPERATION
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Nov. 02, 2014 | |||||||||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) [Abstract] | |||||||||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | NOTE 21 - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||
The following table sets forth certain unaudited quarterly financial data: | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Fiscal 2014: | |||||||||||||||||||||
(a) | (b) (c) | (b) (d) | |||||||||||||||||||
Net sales | $ | 101,542 | $ | 104,882 | $ | 124,852 | $ | 124,251 | $ | 455,527 | |||||||||||
Gross margin | 22,882 | 22,190 | 28,650 | 26,624 | 100,346 | ||||||||||||||||
Net income | 2,041 | 15,950 | 7,344 | 6,700 | 32,035 | ||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 1,993 | 15,540 | 4,186 | 4,277 | 25,996 | ||||||||||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.03 | $ | 0.25 | $ | 0.07 | $ | 0.07 | $ | 0.42 | |||||||||||
Diluted | $ | 0.03 | $ | 0.22 | $ | 0.07 | $ | 0.07 | $ | 0.41 | |||||||||||
Fiscal 2013: | |||||||||||||||||||||
(e) | (e) | ||||||||||||||||||||
Net sales | $ | 99,839 | $ | 106,680 | $ | 109,652 | $ | 106,009 | $ | 422,180 | |||||||||||
Gross margin | 21,098 | 24,789 | 27,078 | 26,675 | 99,640 | ||||||||||||||||
Net income | 2,859 | 5,442 | 6,364 | 4,911 | 19,576 | ||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 2,323 | 4,863 | 5,940 | 4,840 | 17,966 | ||||||||||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.04 | $ | 0.08 | $ | 0.1 | $ | 0.08 | $ | 0.3 | |||||||||||
Diluted | $ | 0.04 | $ | 0.08 | $ | 0.1 | $ | 0.08 | $ | 0.29 | |||||||||||
(a) | Includes expenses of $0.5 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(b) | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(c) | Includes expenses of $2.0 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(d) | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(e) | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Nov. 02, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 22 - RECENT ACCOUNTING PRONOUNCEMENTS |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09 – Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of this ASU is that revenue should be recognized for the amount of consideration expected to be received for promised goods or services transferred to customers. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, and assets recognized for costs incurred to obtain or fulfill a contract. This ASU will be effective for the Company in its first quarter of fiscal 2018. Early adoption is not permitted. The ASU allows for either full retrospective or modified retrospective adoption. The Company is evaluating the transition method that will be elected and the potential effects of the adoption of this ASU on its financial statements. |
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||
Nov. 02, 2014 | ||||||||||||||||||
Schedule II-Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | Schedule II | |||||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||||
for the Years Ended November 2, 2014, November 3, 2013 | ||||||||||||||||||
and October 28, 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Balance at | Charged to | Deductions | Balance at | |||||||||||||||
Beginning of | Costs and | End of | ||||||||||||||||
Year | Expenses | Year | ||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||
Year ended November 2, 2014 | $ | 3,541 | $ | (740 | ) | $ | 277 | (a) | $ | 3,078 | ||||||||
Year ended November 3, 2013 | $ | 3,902 | $ | (398 | ) | $ | 37 | (a) | $ | 3,541 | ||||||||
Year ended October 28, 2012 | $ | 4,055 | $ | (203 | ) | $ | 50 | (a) | $ | 3,902 | ||||||||
Deferred Tax Asset Valuation Allowance | ||||||||||||||||||
Year ended November 2, 2014 | $ | 56,661 | $ | - | $ | (7,113 | ) | (b) | $ | 49,548 | ||||||||
Year ended November 3, 2013 | $ | 55,536 | $ | 1,125 | $ | - | $ | 56,661 | ||||||||||
Year ended October 28, 2012 | $ | 53,063 | $ | 3,331 | $ | (858 | ) | (c) | $ | 55,536 | ||||||||
(a) | Uncollectible accounts written off, net, and impact of foreign currency translation. | |||||||||||||||||
(b) | Decrease offset by increase in deferred tax liability net of utilization of net operating losses. | |||||||||||||||||
(c) | Primarily due to utilization of net operating losses and expiration of investment tax credit. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Nov. 02, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Consolidation | Consolidation |
The accompanying consolidated financial statements include the accounts of Photronics, Inc. and its majority-owned subsidiaries that the Company controls. All intercompany balances and transactions have been eliminated in consolidation. | |
Estimates and Assumptions | Estimates and Assumptions |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in them. Estimates are based on historical experience and on various assumptions that are believed to be reasonable under the circumstances. The Company's estimates are based on the facts and circumstances available at the time they are made. Actual results reported by the Company may differ from such estimates. The Company reviews these estimates periodically and reflects the effect of revisions in the period in which they are determined. | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities |
The Company records derivatives in the consolidated balance sheets as assets or liabilities, measured at fair value. The Company does not engage in derivative instruments for speculative purposes. Gains or losses resulting from changes in the values of those derivatives are reflected in earnings, or as accumulated other comprehensive income or loss, a separate component of equity, depending on the use of the derivatives and whether they qualify for hedge accounting. In order to qualify for hedge accounting, among other criteria, a derivative must be a hedge of an interest rate, price, foreign currency exchange rate, or credit risk that is expected to be highly effective at the inception of the hedge, be highly effective in achieving offsetting changes in the fair value or cash flows of the hedged item during the term of the hedge and formally documented at the inception of the hedge. In general, the types of risks the Company has hedged are those related to the variability of future cash flows caused by movements in foreign currency exchange and interest rates. The Company documents its risk management strategy and hedge effectiveness at the inception of, and during the term of, each hedge. | |
Fiscal Year | Fiscal Year |
The Company's fiscal year ends on the Sunday closest to October thirty-first, and, as a result, a 53-week year occurs every 5 to 6 years. Fiscal years 2014 and 2012 each included 52 weeks, while fiscal year 2013 included 53 weeks. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include cash and highly liquid investments purchased with an original maturity of 3 months or less. The carrying values of cash equivalents approximate their fair values due to the short-term maturities of these instruments. | |
Inventories | Inventories |
Inventories are primarily comprised of raw materials and are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or market. | |
Property, Plant and Equipment | Property, Plant and Equipment |
Property, plant and equipment, except as explained below under "Impairment of Long-Lived Assets," are stated at cost less accumulated depreciation and amortization. Repairs and maintenance, as well as renewals and replacements of a routine nature, are charged to operations as incurred, while those that improve or extend the lives of existing assets are capitalized. Upon sale or other disposition, the cost of the asset and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in earnings. | |
Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. Buildings and improvements are depreciated over 15 to 40 years, machinery and equipment over 3 to 10 years and, furniture, fixtures and office equipment over 3 to 5 years. Leasehold improvements are amortized over the life of the lease or the estimated useful life of the improvement, whichever is less. Judgment and assumptions are used in establishing estimated useful lives and depreciation periods. The Company also uses judgment and assumptions as it periodically reviews property, plant and equipment for any potential impairment in carrying values whenever events such as a significant industry downturn, plant closures, technological obsolescence, or other change in circumstances indicate that their carrying amounts may not be recoverable. | |
Intangible Assets | Intangible Assets |
Intangible assets consist primarily of a technology license agreement, a supply agreement and acquisition-related intangibles. These assets are stated at fair value as of the date acquired less accumulated amortization. Amortization is calculated based on the estimated useful lives of the assets, which range from 3 to 15 years, using the straight-line method or another method that more fairly represents the utilization of the assets. | |
The Company periodically evaluates the remaining useful lives of its intangible assets to determine whether events or circumstances warrant a revision to the remaining periods of amortization. In the event that the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over that revised remaining useful life. If it is determined that an intangible asset has an indefinite useful life, that intangible asset would be subject to impairment testing annually or whenever events or circumstances indicate that the carrying value may not, based on future undiscounted cash flows or market factors, be recoverable, and an impairment loss would be recorded in the period so determined. The measurement of the impairment loss would be based on the fair value of the intangible asset. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on the Company's judgment and estimates of undiscounted future cash flows resulting from the use of the assets and their eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the assets. The carrying values of assets determined to be impaired are reduced to their estimated fair values. Fair values of any impaired assets would generally be determined using a market or income approach. | |
Business Combinations | Business Combinations |
When acquiring other businesses or participating in mergers or joint ventures in which the Company is deemed to be the acquirer, the Company generally recognizes identifiable assets acquired, liabilities assumed and any noncontrolling interests at their acquisition date fair values, and separately from any goodwill that may be required to be recognized. Goodwill, when recognizable, would be measured as the excess amount of any consideration transferred, which is generally measured at fair value, over the acquisition date fair values of the identifiable assets acquired and liabilities assumed. | |
Accounting for such transactions requires the Company’s management to make significant assumptions and estimates and, although the Company believes any estimates and assumptions it makes to be reasonable and appropriate at the time they are made, unanticipated events and circumstances may arise that affect their accuracy, causing actual results to differ from those estimated by the Company. When required, the Company will adjust the values of the assets acquired and liabilities assumed against the acquisition gain or goodwill, as initially recorded, for a period of up to one year after the transaction. | |
Costs incurred to effect a merger or acquisition, such as legal, accounting, valuation and other third party costs, as well as internal general and administrative costs incurred are charged to expense in the periods incurred. Costs incurred to issue any debt and equity securities are recognized in accordance with other applicable generally accepted accounting principles. | |
Investments in Joint Ventures | Investments in Joint Ventures |
The financial results of investments in joint ventures of which the Company has a controlling financial interest are included in the Company’s consolidated financial statements. Investments in joint ventures over which the Company has the ability to exercise significant influence and that, in general, are at least 20 percent owned are accounted for under the equity method. An impairment loss would be recognized whenever a decrease in the fair value of such an investment below its carrying amount is determined to be other than temporary. In judging "other than temporary," the Company would consider the length of time and the extent to which the fair value of the investment has been less than the carrying amount of the investment, the near-term and longer-term operating and financial prospects of the investee, and the Company's longer-term intent of retaining its investment in the investee. | |
Variable Interest Entities | Variable Interest Entities |
The Company accounts for the investments it makes in certain legal entities in which equity investors do not have 1) sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support or, 2) as a group, the holders of the equity investment at risk do not have either the power, through voting or similar rights, to direct the activities of the legal entity that most significantly impact the entity’s economic performance or, 3) the obligation to absorb the expected losses of the legal entity or the right to receive expected residual returns of the legal entity. These certain legal entities are referred to as “variable interest entities”, or “VIEs”. | |
The Company would consolidate the results of any such entity in which it determined that it has a controlling financial interest. The Company would have a “controlling financial interest” in such an entity when the Company has both the power to direct the activities that most significantly affect the VIE’s economic performance and the obligation to absorb the losses of, or right to receive benefits from, the VIE that could be potentially significant to the VIE. On a quarterly basis, the Company reassesses whether it has a controlling financial interest in any investments it has in these certain legal entities. | |
The Company accounts for investments it makes in VIEs in which it has determined that it does not have a controlling financial interest but has significant influence over and holds at least a 20 percent ownership interest using the equity method. Any investment not meeting the parameters to be accounted under the equity method would be accounted for using the cost method unless the investment had a readily determinable fair value, at which it would then be reported. | |
Income Taxes | Income Taxes |
The income tax provision is computed on the basis of the various tax jurisdictions' income or loss before income taxes. Deferred income taxes reflect the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effects of net operating losses and tax credit carryforwards. The Company uses judgment and assumptions to determine if valuation allowances for deferred income tax assets are required, if their realization is not more likely than not, by considering future market growth, forecasted operations, future taxable income, and the amount of earnings in the tax jurisdictions in which it operates. | |
The Company considers income taxes in each of the tax jurisdictions in which it operates in order to determine its effective income tax rate. Current income tax exposure is identified and temporary differences resulting from differing treatments of items for tax and financial reporting purposes are assessed. These differences result in deferred tax assets and liabilities, which are included in the Company's consolidated balance sheets. Additionally, the Company evaluates the potential realization of deferred income tax assets from future taxable income and establishes valuation allowances if their realization is deemed not more likely than not. Accordingly, income taxes charged against earnings may have been impacted by changes in the valuation allowance. Significant management estimates and judgment are required in determining any valuation allowances recorded against net deferred tax assets. | |
The Company accounts for uncertain tax positions by recording a liability for unrecognized tax benefits resulting from uncertain tax positions taken, or expected to be taken, in its tax returns. The Company includes any applicable interest and penalties related to uncertain tax positions in its income tax provision. | |
Earnings Per Share | Earnings Per Share |
Basic earnings per share ("EPS") is based on the weighted-average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution that could occur if certain share-based payment awards or financial instruments were exercised, earned or converted. | |
Share-Based Compensation | Share-Based Compensation |
The Company recognizes share-based compensation expense over the service period that the awards are expected to vest. Share-based compensation expense includes the estimated effects of forfeitures, which are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized in the period of change and will also impact the amount of expense to be recognized in future periods. Determining the appropriate option pricing model, calculating the grant date fair value of share-based awards and estimating forfeiture rates requires considerable judgment, including the estimations of stock price volatility and the expected term of options granted. | |
The Company uses the Black-Scholes option pricing model to value employee stock options. The Company estimates stock price volatility based on daily averages of its historical volatility over a term approximately equal to the estimated time period the grant will remain outstanding. The expected term of options and forfeiture rate assumptions are derived from historical data. | |
Research and Development | Research and Development |
Research and development costs are expensed as incurred, and consist primarily of global development efforts related to high-end process technologies for advanced sub-wavelength reticle solutions for IC photomask technologies. Research and development expenses also include the amortization of the carrying value of a technology license agreement with Micron Technology, Inc. (“Micron”). Under this technology license agreement, the Company has access to certain photomask technology developed by Micron. | |
Foreign Currency Translation | Foreign Currency Translation |
The Company's international subsidiaries maintain their accounts in their respective local currencies. Assets and liabilities of such subsidiaries are translated to U.S. dollars at year-end exchange rates. Income and expenses are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments are accumulated and reported in accumulated other comprehensive income, a component of equity. The effects of changes in exchange rates on foreign currency transactions, which are included in interest and other income (expense), net were a net gain of $1.4 million, $0.5 million and $0.2 million in fiscal years 2014, 2013 and 2012, respectively. | |
Noncontrolling Interests | Noncontrolling Interests |
Noncontrolling interests represents the minority shareholders' proportionate share in the equity of the Company's two majority-owned subsidiaries, PK Ltd. ("PKL") in Korea of which noncontrolling shareholders owned approximately 0.3% as of November 2, 2014 and November 3, 2013, and Photronics DNP Mask Corporation ("PDMC") in Taiwan, of which noncontrolling interests owned 49.99% and 1.37%, as of November 2, 2014 and November 3, 2013, respectively. The effect on its equity of the change in the Company’s ownership interest in PDMC is presented in Note 14. | |
Revenue Recognition | Revenue Recognition |
The Company recognizes revenue when there is persuasive evidence that an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery is determined by the shipping terms of the individual sales transactions. For sales with FOB destination or similar shipping terms, delivery occurs when the Company’s product reaches its destination and is received by the customer. For sales with FOB shipping point terms, delivery occurs when the Company’s product is received by the common carrier. The Company uses judgment when estimating the effect on revenue of discounts and product warranty obligations, both of which are accrued when the related revenue is recognized. | |
Warranty and Other Post Shipment Obligations | Warranties and Other Post Shipment Obligations – For a 30-day period, the Company warrants that items sold will conform to customer specifications. However, the Company’s liability is limited to the repair or replacement of the photomasks at its sole option. The Company inspects photomasks for conformity to customer specifications prior to shipment. Accordingly, customer returns of items under warranty have historically been insignificant. However, the Company records a liability at the time it recognizes revenue for the insignificant amount of estimated warranty returns based on historical experience. The Company’s specific return policies include accepting returns of products with defects, or products that have not been produced to precise customer specifications. |
Sales Taxes | Sales Taxes – The Company reports its revenues net of any sales taxes billed to its customers. |
ACQUISITION_OF_DNP_PHOTOMASK_T1
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. (Policies) | 12 Months Ended |
Nov. 02, 2014 | |
Business Acquisition [Line Items] | |
Business Combinations | Business Combinations |
When acquiring other businesses or participating in mergers or joint ventures in which the Company is deemed to be the acquirer, the Company generally recognizes identifiable assets acquired, liabilities assumed and any noncontrolling interests at their acquisition date fair values, and separately from any goodwill that may be required to be recognized. Goodwill, when recognizable, would be measured as the excess amount of any consideration transferred, which is generally measured at fair value, over the acquisition date fair values of the identifiable assets acquired and liabilities assumed. | |
Accounting for such transactions requires the Company’s management to make significant assumptions and estimates and, although the Company believes any estimates and assumptions it makes to be reasonable and appropriate at the time they are made, unanticipated events and circumstances may arise that affect their accuracy, causing actual results to differ from those estimated by the Company. When required, the Company will adjust the values of the assets acquired and liabilities assumed against the acquisition gain or goodwill, as initially recorded, for a period of up to one year after the transaction. | |
Costs incurred to effect a merger or acquisition, such as legal, accounting, valuation and other third party costs, as well as internal general and administrative costs incurred are charged to expense in the periods incurred. Costs incurred to issue any debt and equity securities are recognized in accordance with other applicable generally accepted accounting principles. | |
DNP Photomask Technology Taiwan Co., Ltd. (DPTT) [Member] | |
Business Acquisition [Line Items] | |
Business Combinations | The DPTT Acquisition met the conditions of a business combination as defined by Accounting Standards Codification (“ASC”) 805 and, as such, is accounted for under ASC 805 using the acquisition method of accounting. ASC 805 defines the three elements of a business as Input, Process and Output. As a result of the DPTT Acquisition, Photronics acquired the machinery and equipment utilized in the processes to manufacture product, the building that houses the entire operation and the processes needed to manufacture the product, all previously owned by DPTT. The former DPTT employees hired by Photronics in connection with the acquisition brought with them the skills, experience and know-how necessary to provide the operational processes that, when applied to the acquired assets, represent processes being applied to inputs to create outputs. Having met all three elements of a business as defined in ASC 805, the Company determined that the DPTT Acquisition should be accounted for as a business combination. |
In addition to recording the fair values of the net assets acquired, the Company also recorded a gain on acquisition of $16.4 million in the consolidated statement of income within other income (expense) in accordance with ASC 805 using the acquisition method of accounting. The gain on acquisition was primarily due to the difference between the market values of the acquired real estate and personal property exceeding the fair value of the consideration transferred. In addition, a deferred tax liability of $3.0 million was recorded in the opening balance sheet, which had the effect of reducing the gain on acquisition to $16.4 million. Prior to recording the gain, the Company reassessed whether it had correctly identified all of the assets acquired and all of the liabilities assumed. Additionally, the Company also reviewed the procedures used to measure the amounts of the identifiable assets acquired, liabilities assumed and consideration transferred. | |
The fair value of the consideration represents 49.99 percent of the fair value of PSMC, and is based on recent prices paid by the Company to acquire outstanding shares of PSMC (prior to the acquisition). As a result of the merger, the Company acquired the net assets of DPTT having a fair value of $114.7 million, less noncontrolling interests of $57.3 million retained by DNP, and transferred consideration with a fair value of $41.0 million, resulting in a gain of $16.4 million. | |
The acquisition date fair value of the property, plant and equipment of DPTT was $95.4 million, which was determined by utilizing the cost and, to a lesser extent, the market approach, based on an in-use premise of value. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a fair value measurement categorized within Level 3 of the fair value hierarchy. Key assumptions include local and current construction replacement cost multipliers, amounts of ancillary replacement costs, physical deterioration, and economic and functional obsolescence to adjust the current replacement costs by, as well as the estimated economic lives of the assets. | |
Identifiable intangible assets acquired were primarily customer relationships, which represent the fair value of relationships and agreements DPTT had in place at the date of the merger. The customer relationships had a fair value of $1.5 million at the acquisition date, determined by using the multi-period excess earnings method, and are amortized over a twelve year estimated useful life. The acquisition date fair value of the remainder of the identifiable assets acquired and liabilities assumed were equivalent to, or did not materially differ from, their carrying values. |
SHAREBASED_COMPENSATION_Polici
SHARE-BASED COMPENSATION (Policies) | 12 Months Ended |
Nov. 02, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options accounting policy | Share-Based Compensation |
The Company recognizes share-based compensation expense over the service period that the awards are expected to vest. Share-based compensation expense includes the estimated effects of forfeitures, which are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized in the period of change and will also impact the amount of expense to be recognized in future periods. Determining the appropriate option pricing model, calculating the grant date fair value of share-based awards and estimating forfeiture rates requires considerable judgment, including the estimations of stock price volatility and the expected term of options granted. | |
The Company uses the Black-Scholes option pricing model to value employee stock options. The Company estimates stock price volatility based on daily averages of its historical volatility over a term approximately equal to the estimated time period the grant will remain outstanding. The expected term of options and forfeiture rate assumptions are derived from historical data. | |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options accounting policy | Option awards generally vest in one to four years, and have a ten year contractual term. All incentive and non-qualified stock option grants must have an exercise price no less than the market value of the underlying common stock on the date of grant. The grant date fair values of options are based on the closing prices of the Company’s common stock on the date of grant using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility of the Company's stock. The Company uses historical option exercise behavior and employee termination data to estimate expected term, which represents the period of time that the options granted are expected to remain outstanding. The risk-free rate of return for the estimated term of the option is based on the U.S. Treasury yield curve in effect at the date of grant. |
INCOME_TAXES_Policies
INCOME TAXES (Policies) | 12 Months Ended |
Nov. 02, 2014 | |
INCOME TAXES [Abstract] | |
Unremitted Earnings in Foreign Investment | As of November 2, 2014, the undistributed earnings of foreign subsidiaries included in consolidated retained earnings amounted to $142.5 million, of which $15.3 million is not considered to be permanently invested. No provision has been made for future U.S. taxes payable on the remaining undistributed earnings of $127.2 million, as they are expected to be indefinitely invested in foreign jurisdictions and therefore are not anticipated to be subject to U.S. tax. The amount of undistributed earnings is calculated taking into account the net amount of earnings of the Company’s foreign subsidiaries, considering its multitier subsidiary structure, and translating those earnings into U.S. dollars using exchange rates in effect as of the balance sheet date. Prior to the acquisition of DPTT, PDMC (formerly PSMC), in accordance with the ownership provisions in the DPTT acquisition agreements, made a onetime remittance of $35 million in earnings that were previously considered to be indefinitely invested. The Company has not changed its assertion on the balance of PDMC earnings which remain indefinitely invested. Should the Company elect in the future to repatriate the foreign earnings so invested, it may incur additional income tax expense on those foreign earnings, the amount of which is not practicable to compute. |
FAIR_VALUE_MEASUREMENTS_Polici
FAIR VALUE MEASUREMENTS (Policies) | 12 Months Ended |
Nov. 02, 2014 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair value financial instruments policy | The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices in active markets for identical securities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly; and Level 3, defined as unobservable inputs that are not corroborated by market data. |
RECENT_ACCOUNTING_PRONOUNCEMEN1
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Nov. 02, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09 – Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of this ASU is that revenue should be recognized for the amount of consideration expected to be received for promised goods or services transferred to customers. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, and assets recognized for costs incurred to obtain or fulfill a contract. This ASU will be effective for the Company in its first quarter of fiscal 2018. Early adoption is not permitted. The ASU allows for either full retrospective or modified retrospective adoption. The Company is evaluating the transition method that will be elected and the potential effects of the adoption of this ASU on its financial statements. |
ACQUISITION_OF_DNP_PHOTOMASK_T2
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2014 | |||||||||
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. [Abstract] | |||||||||
Fair values of assets acquired and liabilities assumed | The following table summarizes the provisional fair values of assets acquired and liabilities assumed of DPTT, the fair value of the noncontrolling interests and consideration for DPTT at the acquisition date. These provisional amounts could change as a result of the ultimate realization of the acquired net working capital. | ||||||||
Cash and cash equivalents | $ | 4,508 | |||||||
Accounts receivable (gross amount of $28,560, of which $500 is estimated to be uncollectable) | 28,060 | ||||||||
Inventory | 1,279 | ||||||||
Deferred tax asset | 9,787 | ||||||||
Other current assets | 11,517 | ||||||||
Property, plant and equipment | 95,431 | ||||||||
Identifiable intangible assets | 1,552 | ||||||||
Other long-term assets | 1,328 | ||||||||
Accounts payable and accrued expenses | (32,410 | ) | |||||||
Deferred tax liability | (3,042 | ) | |||||||
Other long-term liabilities | (3,291 | ) | |||||||
Total net assets acquired | 114,719 | ||||||||
Noncontrolling interests retained by DNP | 57,348 | ||||||||
57,371 | |||||||||
Consideration – 49.99% of fair value of PSMC | 40,999 | ||||||||
Gain on acquisition | $ | 16,372 | |||||||
Pro forma information | The following unaudited pro forma financial information presents financial information as if the DPTT acquisition had occurred as of the beginning of fiscal year 2013. The pro forma earnings for fiscal years 2014 and 2013 were adjusted to exclude the above mentioned $2.5 million and $0.8 million non-recurring acquisition related costs and the gain on acquisition of $16.4 million. Other material non-recurring pro forma adjustments made to arrive at the below earnings amounts included the add back of additional depreciation recorded against DPTT long-lived assets of $6.6 million and $12.9 million for fiscal years 2014 and 2013, respectively. The pro forma information presented does not purport to represent results that would have been achieved had the merger occurred as of the beginning of the earliest period presented, or to be indicative of the Company’s future financial performance. | ||||||||
Year Ended | |||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
Revenues | $ | 499,968 | $ | 514,265 | |||||
Net income | $ | 23,969 | $ | 34,922 | |||||
Net income attributable to Photronics, Inc. shareholders | $ | 12,169 | $ | 21,902 | |||||
Diluted earnings per share | $ | 0.19 | $ | 0.36 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |||||||||
Property, plant and equipment | Property, plant and equipment consists of the following: | ||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
Land | $ | 8,598 | $ | 8,692 | |||||
Buildings and improvements | 124,787 | 103,676 | |||||||
Machinery and equipment | 1,367,691 | 1,225,091 | |||||||
Leasehold improvements | 20,165 | 4,179 | |||||||
Furniture, fixtures and office equipment | 12,086 | 11,546 | |||||||
Construction in progress | 81,351 | 97,319 | |||||||
1,614,678 | 1,450,503 | ||||||||
Less accumulated depreciation and amortization | 1,064,609 | 1,027,763 | |||||||
$ | 550,069 | $ | 422,740 | ||||||
Property under capital leases included in property, plant and equipment | Property under capital leases are included in above property, plant and equipment as follows: | ||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
Machinery and equipment | $ | 56,245 | $ | 21,327 | |||||
Construction in progress | - | 34,918 | |||||||
56,245 | 56,245 | ||||||||
Less accumulated amortization | 10,430 | 4,932 | |||||||
$ | 45,815 | $ | 51,313 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
INTANGIBLE ASSETS [Abstract] | |||||||||||||
Intangible assets | Intangible assets consist of: | ||||||||||||
Gross | Accumulated | Net | |||||||||||
As of November 2, 2014 | Amount | Amortization | Amount | ||||||||||
Technology license agreement | $ | 59,616 | $ | 33,451 | $ | 26,165 | |||||||
Customer relationships | 8,716 | 6,394 | 2,322 | ||||||||||
Supply agreements | 6,959 | 6,605 | 354 | ||||||||||
Software and other | 6,223 | 4,770 | 1,453 | ||||||||||
$ | 81,514 | $ | 51,220 | $ | 30,294 | ||||||||
As of November 3, 2013 | |||||||||||||
Technology license agreement | $ | 59,616 | $ | 29,477 | $ | 30,139 | |||||||
Customer relationships | 7,210 | 5,599 | 1,611 | ||||||||||
Supply agreements | 6,959 | 6,381 | 578 | ||||||||||
Software and other | 5,728 | 3,976 | 1,752 | ||||||||||
$ | 79,513 | $ | 45,433 | $ | 34,080 | ||||||||
Intangible asset amortization over the next five years | Intangible asset amortization over the next five years is estimated to be as follows: | ||||||||||||
Fiscal Years: | |||||||||||||
2015 | $ | 6,120 | |||||||||||
2016 | 5,668 | ||||||||||||
2017 | 5,340 | ||||||||||||
2018 | 5,064 | ||||||||||||
2019 | 4,972 |
JOINT_VENTURE_TECHNOLOGY_LICEN1
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. [Abstract] | |||||||||||||
Summarized financial information of equity method investment | Summarized financial information of MP Mask is presented below. | ||||||||||||
As of Fiscal Year End | |||||||||||||
2014 | 2013 | ||||||||||||
Current assets | $ | 31,696 | $ | 35,794 | |||||||||
Noncurrent assets | 205,457 | 177,769 | |||||||||||
Current liabilities | 44,024 | 28,497 | |||||||||||
Noncurrent liabilities | 6,804 | - | |||||||||||
Fiscal Year | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | $ | 81,399 | $ | 77,900 | $ | 84,216 | |||||||
Gross profit | 3,427 | 4,663 | 1,799 | ||||||||||
Net income | 1,259 | 4,735 | 831 |
LONGTERM_BORROWINGS_Tables
LONG-TERM BORROWINGS (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2014 | |||||||||
LONG-TERM BORROWINGS [Abstract] | |||||||||
Long-term borrowings | Long-term borrowings consist of the following: | ||||||||
November 2, | November 3, | ||||||||
2014 | 2013 | ||||||||
3.25% convertible senior notes due in April 2016 | $ | 115,000 | $ | 115,000 | |||||
5.50% convertible senior notes due and converted in October 2014 | - | 22,054 | |||||||
2.77% capital lease obligation payable through July 2018 | 20,481 | 25,065 | |||||||
3.09% capital lease obligation payable through March 2016 | 6,705 | 10,652 | |||||||
Term loan, which bore interest at a variable rate, as defined (2.69% at November 3, 2013), repaid in December 2013 | - | 21,250 | |||||||
142,186 | 194,021 | ||||||||
Less current portion | 10,381 | 11,818 | |||||||
$ | 131,805 | $ | 182,203 | ||||||
Minimum lease payments under the Company's capital lease obligations | As of November 2, 2014, minimum lease payments under the Company's capital lease obligations were as follows: | ||||||||
Fiscal Years: | |||||||||
2015 | $ | 11,070 | |||||||
2016 | 7,546 | ||||||||
2017 | 5,168 | ||||||||
2018 | 4,698 | ||||||||
28,482 | |||||||||
Less interest | 1,296 | ||||||||
Net minimum lease payments under capital leases | 27,186 | ||||||||
Less current portion of net minimum lease payments | 10,381 | ||||||||
Long-term portion of minimum lease payments | $ | 16,805 |
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 12 Months Ended | ||||
Nov. 02, 2014 | |||||
OPERATING LEASES [Abstract] | |||||
Future minimum lease payments under non-cancelable operating leases | At November 2, 2014, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year are as follows: | ||||
2015 | $ | 2,292 | |||
2016 | 2,063 | ||||
2017 | 1,595 | ||||
2018 | 569 | ||||
2019 | 340 | ||||
Thereafter | 1,983 | ||||
$ | 8,842 |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Nov. 02, 2014 | ||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options | The weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair values of options issued during fiscal years 2014, 2013 and 2012 are presented in the followingtable: | |||||||||||||
Year Ended | ||||||||||||||
November 2, | November 3, | October 28, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected volatility | 61 | % | 98 | % | 102.1 | % | ||||||||
Risk-free rate of return | 1.4 | % | 0.5 – 1.4 | % | 0.6 – 0.9 | % | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
Expected term | 4.6 years | 4.3 years | 4.3 years | |||||||||||
Summary of option activity | A summary of option activity under the Plan as of November 2, 2014, and changes during the year then ended is presented as follows: | |||||||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||
Exercise Price | Remaining | Intrinsic Value | ||||||||||||
Options | Contractual Life | |||||||||||||
Outstanding at November 3, 2013 | 4,174,302 | $ | 8.43 | |||||||||||
Granted | 632,500 | 8.86 | ||||||||||||
Exercised | (283,083 | ) | 3.75 | |||||||||||
Cancelled and forfeited | (446,938 | ) | 19.5 | |||||||||||
Outstanding at November 2, 2014 | 4,076,781 | $ | 7.6 | 5.6 years | $ | 10,778 | ||||||||
Exercisable at November 2, 2014 | 2,628,203 | $ | 7.78 | 4.2 years | $ | 8,314 | ||||||||
Expected to vest as of November 2, 2014 | 1,329,318 | $ | 7.29 | 8.2 years | $ | 2,261 | ||||||||
Summary of the status of the Company's outstanding restricted stock awards | A summary of the status of the Company's outstanding restricted stock awards as of November 2, 2014, is presented below: | |||||||||||||
Shares | Weighted- | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
at Grant | ||||||||||||||
Restricted Stock | Date | |||||||||||||
Outstanding at November 3, 2013 | 303,627 | $ | 6.48 | |||||||||||
Granted | 111,667 | 8.86 | ||||||||||||
Vested | (171,563 | ) | 7.6 | |||||||||||
Cancelled | (8,250 | ) | 5.91 | |||||||||||
Outstanding at November 2, 2014 | 235,481 | 6.81 | ||||||||||||
Expected to vest as of November 2, 2014 | 220,531 | 6.82 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Income (loss) before income tax provision for domestic and foreign | Income before the income tax provisions consist of the following: | ||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (23,083 | ) | $ | (14,164 | ) | $ | (5,474 | ) | ||||
Foreign | 64,413 | 40,969 | 46,122 | ||||||||||
$ | 41,330 | $ | 26,805 | $ | 40,648 | ||||||||
Income tax provision | The income tax provisions consist of the following: | ||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 354 | $ | 208 | $ | 81 | |||||||
State | - | 65 | (5 | ) | |||||||||
Foreign | 4,726 | 7,222 | 11,332 | ||||||||||
Deferred: | |||||||||||||
Federal | - | - | - | ||||||||||
State | (5 | ) | (181 | ) | - | ||||||||
Foreign | 4,220 | (85 | ) | (615 | ) | ||||||||
Total | $ | 9,295 | $ | 7,229 | $ | 10,793 | |||||||
Income tax rate reconciliation | The income tax provisions differ from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes as a result of the following: | ||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal income tax at statutory rate | $ | 14,465 | $ | 9,382 | $ | 14,227 | |||||||
Changes in valuation allowances | (7,575 | ) | 1,325 | 1,806 | |||||||||
Distributions from foreign subsidiaries | 12,674 | 1,957 | 2,073 | ||||||||||
State income taxes, net of federal benefit | (141 | ) | 267 | (1,956 | ) | ||||||||
Foreign tax rate differentials | (4,864 | ) | (4,851 | ) | (3,805 | ) | |||||||
Tax credits | (2,847 | ) | (3,967 | ) | (1,071 | ) | |||||||
Uncertain tax positions, including reserves, settlements and resolutions | (2,255 | ) | 1,471 | 1,984 | |||||||||
Debt extinguishment losses | - | - | (2,879 | ) | |||||||||
Gain on acquisition of DPTT | (5,748 | ) | - | - | |||||||||
Intercompany gain elimination | 4,759 | - | - | ||||||||||
Equity based compensation | 714 | 765 | 499 | ||||||||||
Other, net | 113 | 880 | (85 | ) | |||||||||
$ | 9,295 | $ | 7,229 | $ | 10,793 | ||||||||
Net deferred income tax assets | The net deferred income tax assets consist of the following: | ||||||||||||
As of | |||||||||||||
November 2, | November 3, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating losses | $ | 64,529 | $ | 57,631 | |||||||||
Reserves not currently deductible | 6,948 | 7,101 | |||||||||||
Alternative minimum tax credits | 3,121 | 3,116 | |||||||||||
Tax credit carryforwards | 8,368 | 7,051 | |||||||||||
Other | 1,773 | 1,892 | |||||||||||
84,739 | 76,791 | ||||||||||||
Valuation allowances | (49,548 | ) | (56,661 | ) | |||||||||
35,191 | 20,130 | ||||||||||||
Deferred income tax liabilities: | |||||||||||||
Undistributed earnings of foreign subsidiaries | (5,366 | ) | (5,347 | ) | |||||||||
Property, plant and equipment | (11,503 | ) | (890 | ) | |||||||||
Investments | (2,660 | ) | (371 | ) | |||||||||
Other | (448 | ) | (992 | ) | |||||||||
(19,977 | ) | (7,600 | ) | ||||||||||
Net deferred income tax assets | $ | 15,214 | $ | 12,530 | |||||||||
Reported as: | |||||||||||||
Current deferred tax assets | $ | 7,223 | $ | 1,082 | |||||||||
Noncurrent deferred tax assets | 11,036 | 12,455 | |||||||||||
Noncurrent deferred tax liabilities | (3,045 | ) | (1,007 | ) | |||||||||
$ | 15,214 | $ | 12,530 | ||||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows: | ||||||||||||
Year Ended | |||||||||||||
2-Nov-14 | 3-Nov-13 | October 28, | |||||||||||
2012 | |||||||||||||
Balance at beginning of year | $ | 4,757 | $ | 3,793 | $ | 1,824 | |||||||
Additions (reductions) for tax positions in prior years | 3,437 | 1,224 | 1,932 | ||||||||||
Additions based on current year tax positions | 272 | 207 | 616 | ||||||||||
Settlements | (3,155 | ) | (406 | ) | (518 | ) | |||||||
Lapses of statutes of limitations | (318 | ) | (61 | ) | (61 | ) | |||||||
Balance at end of year | $ | 4,993 | $ | 4,757 | $ | 3,793 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||
Calculation of basic and diluted earnings per share | The calculation of basic and diluted earnings per share is presented as follows: | ||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 25,996 | $ | 17,966 | $ | 27,868 | |||||||
Effect of dilutive securities: | |||||||||||||
Interest expense on convertible notes, net of related tax effects | 1,426 | - | 6,168 | ||||||||||
Gain related to common stock warrants fair value adjustment | - | - | (94 | ) | |||||||||
Earnings for diluted earnings per share | $ | 27,422 | $ | 17,966 | $ | 33,942 | |||||||
Weighted-average common shares computations: | |||||||||||||
Weighted-average common shares used for basic earnings per share | 61,779 | 60,644 | 60,055 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Convertible notes | 3,945 | - | 15,423 | ||||||||||
Share-based payment awards | 955 | 813 | 767 | ||||||||||
Common stock warrants | - | 142 | 219 | ||||||||||
Dilutive potential common shares | 4,900 | 955 | 16,409 | ||||||||||
Weighted-average common shares used for diluted earnings per share | 66,679 | 61,599 | 76,464 | ||||||||||
Basic earnings per share | $ | 0.42 | $ | 0.3 | $ | 0.46 | |||||||
Diluted earnings per share | $ | 0.41 | $ | 0.29 | $ | 0.44 | |||||||
Outstanding securities excluded from the calculation of diluted earnings per share | The table below shows the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise price exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be antidilutive. The table also shows convertible notes that, if converted, would have been antidilutive. | ||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Convertible notes | 11,085 | 6,168 | - | ||||||||||
Share based payment awards | 1,911 | 2,880 | 2,587 | ||||||||||
Total potentially dilutive shares excluded | 12,996 | 9,048 | 2,587 |
SUBSIDIARY_SHARE_REPURCHASE_AN1
SUBSIDIARY SHARE REPURCHASE AND TENDER OFFER (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
SUBSIDIARY SHARE REPURCHASE AND TENDER OFFER [Abstract] | |||||||||||||
Effect of change in the entity's ownership interest in PSMC | The table below presents the effect of the change in the Company’s ownership interest in PSMC on the Company's equity for fiscal years 2014, 2013 and 2012 (in 2014 112.9 million shares of PSMC common stock were issued and 3.0 million shares were acquired, and shares of PSMC common stock were purchased in the amounts of 60.5 million shares in 2013 and 35.9 million shares in 2012). | ||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income attributable to Photronics, Inc. shareholders | $ | 25,996 | $ | 17,966 | $ | 27,868 | |||||||
Increase (decrease) in Photronics, Inc.'s additional paid-in capital | (6,183 | ) | 600 | 1,985 | |||||||||
Increase (decrease) in Photronics, Inc.’s accumulated other comprehensive income | 399 | (237 | ) | (78 | ) | ||||||||
Change from net income attributable to Photronics, Inc. shareholders due to issuance of shares of PDMC and transfers to or from noncontrolling interests | $ | 20,212 | $ | 18,329 | $ | 29,775 |
GEOGRAPHIC_AND_SIGNIFICANT_CUS1
GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2014 | |||||||||||||
GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION [Abstract] | |||||||||||||
Geographic information | The Company's 2014, 2013 and 2012 net sales by geographic area and of ICs and FPDs, and long-lived assets by geographic area were as follows: | ||||||||||||
Year Ended | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Taiwan | $ | 167,075 | $ | 117,364 | $ | 109,232 | |||||||
Korea | 140,386 | 134,300 | 161,154 | ||||||||||
United States | 106,740 | 127,054 | 135,170 | ||||||||||
Europe | 38,726 | 41,126 | 40,653 | ||||||||||
All other | 2,600 | 2,336 | 4,230 | ||||||||||
$ | 455,527 | $ | 422,180 | $ | 450,439 | ||||||||
IC | $ | 352,679 | $ | 320,579 | $ | 350,105 | |||||||
FPD | 102,848 | 101,601 | 100,334 | ||||||||||
$ | 455,527 | $ | 422,180 | $ | 450,439 | ||||||||
As of | |||||||||||||
November 2, | November 3, | October 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Long-lived assets | |||||||||||||
Taiwan | $ | 207,324 | $ | 66,836 | $ | 72,185 | |||||||
Korea | 176,141 | 153,878 | 120,628 | ||||||||||
United States | 158,325 | 191,518 | 177,614 | ||||||||||
Europe | 8,259 | 10,471 | 10,262 | ||||||||||
All other | 20 | 37 | 119 | ||||||||||
$ | 550,069 | $ | 422,740 | $ | 380,808 |
CHANGES_IN_ACCUMULATED_OTHER_C1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables) | 12 Months Ended | ||||||||||||||||
Nov. 02, 2014 | |||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | |||||||||||||||||
Schedule changes in accumulated other comprehensive income by component | The following tables set forth the changes in the Company's accumulated other comprehensive income by component (net of tax of $0) for the years ended November 2, 2014 and November 3, 2013: | ||||||||||||||||
Year Ended November 2, 2014 | |||||||||||||||||
Foreign Currency | Amortization | Other | Total | ||||||||||||||
Translation | of Cash | ||||||||||||||||
Adjustments | Flow Hedge | ||||||||||||||||
Balance at November 3, 2013 | $ | 27,797 | $ | (562 | ) | $ | (832 | ) | $ | 26,403 | |||||||
Other comprehensive income (loss) before reclassifications | (5,916 | ) | - | (41 | ) | (5,957 | ) | ||||||||||
Amounts reclassified from other accumulated comprehensive income | - | 128 | - | 128 | |||||||||||||
Net current period other comprehensive income (loss) | (5,916 | ) | 128 | (41 | ) | (5,829 | ) | ||||||||||
Less: other comprehensive loss attributable to noncontrolling interests | 770 | - | 31 | 801 | |||||||||||||
Other accumulated comprehensive income allocated to noncontrolling interests | 410 | 410 | |||||||||||||||
Purchase of common stock of subsidiary | - | - | (11 | ) | (11 | ) | |||||||||||
Balance at November 2, 2014 | $ | 22,651 | $ | (434 | ) | $ | (443 | ) | $ | 21,774 | |||||||
Year Ended November 3, 2013 | |||||||||||||||||
Foreign Currency | Amortization | Other | Total | ||||||||||||||
Translation | of Cash | ||||||||||||||||
Adjustments | Flow Hedge | ||||||||||||||||
Balance at October 29, 2012 | $ | 17,241 | $ | (690 | ) | $ | (651 | ) | $ | 15,900 | |||||||
Other comprehensive income before reclassifications | 9,805 | - | 54 | 9,859 | |||||||||||||
Amounts reclassified from other comprehensive income | - | 128 | - | 128 | |||||||||||||
Net current period other comprehensive income | 9,805 | 128 | 54 | 9,987 | |||||||||||||
Less: other comprehensive loss attributable to noncontrolling interests | 751 | - | 2 | 753 | |||||||||||||
Purchase of common stock of subsidiary | - | - | (237 | ) | (237 | ) | |||||||||||
Balance at November 3, 2013 | $ | 27,797 | $ | (562 | ) | $ | (832 | ) | $ | 26,403 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Nov. 02, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
Fair and carrying values of convertible senior notes | The table below presents the fair and carrying values of the Company's convertible senior notes at November 2, 2014, and November 3, 2013. | ||||||||||||||||
2-Nov-14 | 3-Nov-13 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
3.25% convertible senior notes | $ | 122,544 | $ | 115,000 | $ | 130,330 | $ | 115,000 | |||||||||
5.5% convertible senior notes | $ | - | $ | - | $ | 37,567 | $ | 22,054 |
QUARTERLY_RESULTS_OF_OPERATION1
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Nov. 02, 2014 | |||||||||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) [Abstract] | |||||||||||||||||||||
Quarterly financial data | The following table sets forth certain unaudited quarterly financial data: | ||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Fiscal 2014: | |||||||||||||||||||||
(a) | (b) (c) | (b) (d) | |||||||||||||||||||
Net sales | $ | 101,542 | $ | 104,882 | $ | 124,852 | $ | 124,251 | $ | 455,527 | |||||||||||
Gross margin | 22,882 | 22,190 | 28,650 | 26,624 | 100,346 | ||||||||||||||||
Net income | 2,041 | 15,950 | 7,344 | 6,700 | 32,035 | ||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 1,993 | 15,540 | 4,186 | 4,277 | 25,996 | ||||||||||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.03 | $ | 0.25 | $ | 0.07 | $ | 0.07 | $ | 0.42 | |||||||||||
Diluted | $ | 0.03 | $ | 0.22 | $ | 0.07 | $ | 0.07 | $ | 0.41 | |||||||||||
Fiscal 2013: | |||||||||||||||||||||
(e) | (e) | ||||||||||||||||||||
Net sales | $ | 99,839 | $ | 106,680 | $ | 109,652 | $ | 106,009 | $ | 422,180 | |||||||||||
Gross margin | 21,098 | 24,789 | 27,078 | 26,675 | 99,640 | ||||||||||||||||
Net income | 2,859 | 5,442 | 6,364 | 4,911 | 19,576 | ||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 2,323 | 4,863 | 5,940 | 4,840 | 17,966 | ||||||||||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.04 | $ | 0.08 | $ | 0.1 | $ | 0.08 | $ | 0.3 | |||||||||||
Diluted | $ | 0.04 | $ | 0.08 | $ | 0.1 | $ | 0.08 | $ | 0.29 | |||||||||||
(a) | Includes expenses of $0.5 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(b) | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(c) | Includes expenses of $2.0 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(d) | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||||||
(e) | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
Subsidiary | |||
Facility | |||
Manufacturing Facilities by Geographical Region [Line Items] | |||
Number of manufacturing facilities | 9 | ||
Foreign Currency [Abstract] | |||
Foreign currency transaction gain | $1.40 | $0.50 | $0.20 |
Noncontrolling Interest [Abstract] | |||
Number of majority owned subsidiaries | 2 | ||
Period of warranty | 30 days | ||
PK Ltd [Member] | |||
Noncontrolling Interest [Abstract] | |||
Ownership percentage of noncontrolling interests (in hundredths) | 0.30% | 0.30% | |
PDMC [Member] | |||
Noncontrolling Interest [Abstract] | |||
Ownership percentage of noncontrolling interests (in hundredths) | 49.99% | 1.37% | |
Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated useful lives | 3 years | ||
Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated useful lives | 15 years | ||
Buildings and Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 15 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 40 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 10 years | ||
Furniture, Fixtures and Office Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 3 years | ||
Furniture, Fixtures and Office Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 5 years | ||
Europe [Member] | |||
Manufacturing Facilities by Geographical Region [Line Items] | |||
Number of manufacturing facilities | 2 | ||
Taiwan [Member] | |||
Manufacturing Facilities by Geographical Region [Line Items] | |||
Number of manufacturing facilities | 3 | ||
Korea [Member] | |||
Manufacturing Facilities by Geographical Region [Line Items] | |||
Number of manufacturing facilities | 1 | ||
United States [Member] | |||
Manufacturing Facilities by Geographical Region [Line Items] | |||
Number of manufacturing facilities | 3 |
ACQUISITION_OF_DNP_PHOTOMASK_T3
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD. (Details) (USD $) | 0 Months Ended | 12 Months Ended | 7 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2014 | Nov. 02, 2014 | Nov. 03, 2013 | Nov. 02, 2014 |
Business Acquisition [Line Items] | ||||
Date of acquisition | 4-Apr-14 | |||
Consideration transferred | $41 | |||
Ownership percentage in PDMC (in hundredths) | 50.01% | 50.01% | ||
Acquisition costs related to the merger included in selling, general and administrative expense | 2.5 | 0.8 | ||
DNP [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage of noncontrolling interests (in hundredths) | 49.99% | 49.99% | ||
DPTT Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro forma adjustment for additional depreciation recorded on acquired long-lived assets | 6.6 | 12.9 | ||
PDMC [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | 101.8 | |||
Net income | $6 | |||
Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated amortization period | 12 years |
ACQUISITION_OF_DNP_PHOTOMASK_T4
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD., Fair Values of Assets Acquired and Liabilities Assumed (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | 4-May-14 | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Apr. 04, 2014 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Gain on acquisition | $16,400 | $16,372 | $0 | $0 | |
PDMC [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Cash and cash equivalents | 4,508 | ||||
Accounts receivable (gross amount of $28,560, of which $500 is estimated to be uncollectable) | 28,060 | ||||
Inventory | 1,279 | ||||
Deferred tax asset | 9,787 | ||||
Other current assets | 11,517 | ||||
Property, plant and equipment | 95,431 | ||||
Identifiable intangible assets | 1,552 | ||||
Other long-term assets | 1,328 | ||||
Accounts payable and accrued expenses | -32,410 | ||||
Deferred tax liability | -3,042 | ||||
Other long-term liabilities | -3,291 | ||||
Total net assets acquired | 114,719 | ||||
Noncontrolling interests retained by DNP | 57,348 | ||||
Total net assets acquired less noncontrolling interests | 57,371 | ||||
Consideration - 49.99% of fair value of PSMC | 40,999 | ||||
Gain on acquisition | 16,372 | ||||
Accounts receivable gross amount | 28,560 | ||||
Accounts receivable estimated to be uncollectable | $500 |
ACQUISITION_OF_DNP_PHOTOMASK_T5
ACQUISITION OF DNP PHOTOMASK TECHNOLOGY TAIWAN CO., LTD., Pro Forma Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 27, 2013 | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | |||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||||||||||
Revenues | $499,968 | $514,265 | ||||||||||||||
Net income | 23,969 | 34,922 | ||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 4,277 | 4,186 | 15,540 | [1],[2] | 1,993 | [3] | 4,840 | [4] | 5,940 | 4,863 | 2,323 | 25,996 | [1],[5] | 17,966 | [4] | 27,868 |
Diluted earnings per share (in dollars per share) | $0.19 | $0.36 | ||||||||||||||
Pro Forma [Member] | ||||||||||||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | $12,169 | $21,902 | ||||||||||||||
[1] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | |||||||||||||||
[2] | Includes expenses of $2.0 million, net of tax, related to the acquisition of DPTT. | |||||||||||||||
[3] | Includes expenses of $0.5 million, net of tax, related to the acquisition of DPTT. | |||||||||||||||
[4] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. | |||||||||||||||
[5] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
In Thousands, unless otherwise specified | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $1,614,678 | $1,450,503 | |
Less accumulated depreciation and amortization | 1,064,609 | 1,027,763 | |
Property, plant and equipment, net | 550,069 | 422,740 | 380,808 |
Property under capital leases included in property, plant and equipment [Abstract] | |||
Capital leased assets, gross | 56,245 | 56,245 | |
Less accumulated amortization | 10,430 | 4,932 | |
Capital leased assets, net | 45,815 | 51,313 | |
Land [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 8,598 | 8,692 | |
Buildings and improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 124,787 | 103,676 | |
Machinery and equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 1,367,691 | 1,225,091 | |
Property under capital leases included in property, plant and equipment [Abstract] | |||
Capital leased assets, gross | 56,245 | 21,327 | |
Leasehold improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 20,165 | 4,179 | |
Furniture, fixtures and office equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 12,086 | 11,546 | |
Construction in progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 81,351 | 97,319 | |
Property under capital leases included in property, plant and equipment [Abstract] | |||
Capital leased assets, gross | $0 | $34,918 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | |
Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $5,800,000 | $5,500,000 | $5,000,000 |
Weighted-average amortization period for intangible assets acquired during the year | 9 years | ||
Intangible assets, net [Abstract] | |||
Gross Amount | 81,514,000 | 79,513,000 | |
Accumulated Amortization | 51,220,000 | 45,433,000 | |
Net Amount | 30,294,000 | 34,080,000 | |
Intangible asset amortization over the next five years [Abstract] | |||
2015 | 6,120,000 | ||
2016 | 5,668,000 | ||
2017 | 5,340,000 | ||
2018 | 5,064,000 | ||
2019 | 4,972,000 | ||
Technology License Agreement [Member] | |||
Intangible assets, net [Abstract] | |||
Gross Amount | 59,616,000 | 59,616,000 | |
Accumulated Amortization | 33,451,000 | 29,477,000 | |
Net Amount | 26,165,000 | 30,139,000 | |
Customer Relationships [Member] | |||
Intangible Assets [Line Items] | |||
Weighted-average amortization period for intangible assets acquired during the year | 12 years | ||
Intangible assets, net [Abstract] | |||
Gross Amount | 8,716,000 | 7,210,000 | |
Accumulated Amortization | 6,394,000 | 5,599,000 | |
Net Amount | 2,322,000 | 1,611,000 | |
Supply Agreements [Member] | |||
Intangible assets, net [Abstract] | |||
Gross Amount | 6,959,000 | 6,959,000 | |
Accumulated Amortization | 6,605,000 | 6,381,000 | |
Net Amount | 354,000 | 578,000 | |
Software and Other [Member] | |||
Intangible Assets [Line Items] | |||
Weighted-average amortization period for intangible assets acquired during the year | 3 years | 3 years | |
Intangible assets, net [Abstract] | |||
Gross Amount | 6,223,000 | 5,728,000 | |
Accumulated Amortization | 4,770,000 | 3,976,000 | |
Net Amount | $1,453,000 | $1,752,000 |
JOINT_VENTURE_TECHNOLOGY_LICEN2
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Apr. 29, 2012 | |
Related Party Transaction [Line Items] | ||||
Variable interest entity, methodology for determining whether entity is primary beneficiary | This joint venture is a variable interest entity ("VIE") (as that term is defined in the Accounting Standards Codification ("ASC") ) because all costs of the joint venture are passed on to the Company and Micron through purchase agreements they have entered into with the joint venture, and it is dependent upon the Company and Micron for any additional cash requirements. On a quarterly basis the Company reassesses whether its interest in MP Mask gives it a controlling financial interest in this VIE. The purpose of this quarterly reassessment is to identify the primary beneficiary (which is defined in the ASC as the entity that consolidates a VIE) of the VIE. As a result of the reassessments in fiscal year 2014, the Company determined that Micron is still the primary beneficiary of the VIE, by virtue of its tie-breaking voting rights within MP Mask's Board of Managers, thereby giving it the power to direct the activities of MP Mask that most significantly impact its economic performance, including its decision making authority in the ordinary course of business and its purchasing the majority of products produced by the VIE. | |||
Additional investment in joint venture | $0 | $0 | ||
Distributions from Joint Venture | 0 | 0 | ||
Maximum exposure to loss from investment in VIE | 93,100,000 | 93,100,000 | ||
Income (Loss) from equity-method investee | 0 | -100,000 | -100,000 | |
Amount owed to MP Mask | 4,200,000 | 4,500,000 | ||
Amount receivable from Micron Technology, Inc. | 94,515,000 | 73,357,000 | ||
Commission revenue earned under supply agreement | 1,200,000 | 900,000 | 1,600,000 | |
Amortization of Supply Agreement | 5,800,000 | 5,500,000 | 5,000,000 | |
Cost of sales | 355,181,000 | 322,540,000 | 338,519,000 | |
Research and development expenses and other | 21,913,000 | 20,758,000 | 19,371,000 | |
Purchase of Equipment | 1,300,000 | 6,100,000 | 1,900,000 | |
Summarized financial information of MP Mask [Abstract] | ||||
Current assets | 31,696,000 | 35,794,000 | ||
Noncurrent assets | 205,457,000 | 177,769,000 | ||
Current liabilities | 44,024,000 | 28,497,000 | ||
Noncurrent liabilities | 6,804,000 | 0 | ||
Net sales | 81,399,000 | 77,900,000 | 84,216,000 | |
Gross Profit | 3,427,000 | 4,663,000 | 1,799,000 | |
Net income | 1,259,000 | 4,735,000 | 831,000 | |
Capital Lease Obligations With Micron [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment to purchase U.S. nanoFab facility | 35,000,000 | |||
Equity Method Investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of sales | 3,200,000 | 8,700,000 | 7,600,000 | |
Research and development expenses and other | 1,600,000 | 1,600,000 | 2,000,000 | |
Co-venturer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount receivable from Micron Technology, Inc. | 6,800,000 | 4,900,000 | ||
Supply Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amortization of Supply Agreement | $200,000 | $300,000 | $400,000 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Nov. 02, 2014 | Nov. 03, 2013 |
In Millions, unless otherwise specified | ||
ACCRUED LIABILITIES [Abstract] | ||
Salaries, wages and related benefits | $10.40 | $10.20 |
Acquisition liabilities | $7.20 |
LONGTERM_BORROWINGS_Details
LONG-TERM BORROWINGS (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
Mar. 31, 2011 | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Jul. 31, 2014 | Oct. 31, 2014 | Sep. 30, 2009 | Aug. 25, 2013 | Apr. 30, 2011 | Dec. 31, 2013 | Oct. 30, 2011 | |
Long-term borrowings [Abstract] | |||||||||||
Long-term debt and capital lease obligations | $142,186,000 | $194,021,000 | |||||||||
Less current portion | 10,381,000 | 11,818,000 | |||||||||
Long-term debt and capital lease obligations non current | 131,805,000 | 182,203,000 | |||||||||
Long-term borrowings maturing in 2016 | 115,000,000 | ||||||||||
Minimum lease payments under the Company's capital lease obligations [Abstract] | |||||||||||
2015 | 11,070,000 | ||||||||||
2016 | 7,546,000 | ||||||||||
2017 | 5,168,000 | ||||||||||
2018 | 4,698,000 | ||||||||||
Future minimum payments due | 28,482,000 | ||||||||||
Less interest | 1,296,000 | ||||||||||
Net minimum lease payments under capital leases | 27,186,000 | ||||||||||
Less current portion of net minimum lease payments | 10,381,000 | ||||||||||
Long-term portion of minimum lease payments | 16,805,000 | ||||||||||
Notes converted to common stock | 22,054,000 | 0 | 0 | ||||||||
Capital lease obligations repaid | 19,800,000 | ||||||||||
Interest payments | 6,300,000 | 6,300,000 | 6,300,000 | ||||||||
Deferred financing cost payments | 346,000 | 40,000 | 198,000 | ||||||||
Credit Facility [Member] | |||||||||||
Long-term borrowings [Abstract] | |||||||||||
Variable interest rate (in hundredths) | 1.67% | ||||||||||
Minimum lease payments under the Company's capital lease obligations [Abstract] | |||||||||||
Maturity date of debt | 31-Dec-18 | ||||||||||
Maximum borrowing capacity | 75,000,000 | ||||||||||
Current borrowing capacity | 50,000,000 | ||||||||||
Available borrowing capacity | 50,000,000 | ||||||||||
Amount outstanding under credit facility | 0 | ||||||||||
Repayment period of debt | 5 years | ||||||||||
3.25% convertible senior notes due on April 1, 2016 [Member] | |||||||||||
Long-term borrowings [Abstract] | |||||||||||
Long-term debt and capital lease obligations | 115,000,000 | 115,000,000 | |||||||||
Interest rate percentage (in hundredths) | 3.25% | ||||||||||
Minimum lease payments under the Company's capital lease obligations [Abstract] | |||||||||||
Maturity date of debt | 1-Apr-16 | ||||||||||
Notes converted to common stock | 22,100,000 | ||||||||||
Face amount of each note converted | 1,000 | ||||||||||
Number of shares each note is convertible to (in shares) | 96 | ||||||||||
Conversion price per share (in dollars per share) | $10.37 | ||||||||||
Proceeds from notes payable, net | 110,700,000 | ||||||||||
5.50% convertible senior notes due on October 1, 2014 [Member] | |||||||||||
Long-term borrowings [Abstract] | |||||||||||
Long-term debt and capital lease obligations | 0 | 22,054,000 | |||||||||
Interest rate percentage (in hundredths) | 5.50% | ||||||||||
Minimum lease payments under the Company's capital lease obligations [Abstract] | |||||||||||
Original face amount of debt | 57,500,000 | ||||||||||
Face amount of each note converted | 1,000 | ||||||||||
Number of shares each note is convertible to (in shares) | 197 | ||||||||||
Conversion price per share (in dollars per share) | $5.08 | ||||||||||
Proceeds from notes payable, net | 54,900,000 | ||||||||||
Face amount of debt repurchased | 35,400,000 | ||||||||||
Common stock issued upon conversion of debt (in shares) | 4,300,000 | ||||||||||
Repayment period of debt | 5 years | ||||||||||
2.77% Capital lease obligations payable through July 2018 [Member] | |||||||||||
Long-term borrowings [Abstract] | |||||||||||
Long-term debt and capital lease obligations | 20,481,000 | 25,065,000 | |||||||||
Interest rate percentage (in hundredths) | 2.77% | ||||||||||
Minimum lease payments under the Company's capital lease obligations [Abstract] | |||||||||||
Less interest | 1,100,000 | ||||||||||
Maturity date of debt | 31-Jul-18 | ||||||||||
Original face amount of debt | 26,400,000 | ||||||||||
Periodic payments | 500,000 | ||||||||||
Frequency of periodic payment | per month | ||||||||||
Repayment period of debt | 5 years | ||||||||||
Amount payable through the end of lease term | 21,600,000 | ||||||||||
3.09% capital lease obligation payable through March 2016 [Member] | |||||||||||
Long-term borrowings [Abstract] | |||||||||||
Long-term debt and capital lease obligations | 6,705,000 | 10,652,000 | |||||||||
Interest rate percentage (in hundredths) | 3.09% | ||||||||||
Minimum lease payments under the Company's capital lease obligations [Abstract] | |||||||||||
Less interest | 200,000 | ||||||||||
Maturity date of debt | 30-Mar-16 | ||||||||||
Original face amount of debt | 21,200,000 | ||||||||||
Periodic payments | 400,000 | ||||||||||
Frequency of periodic payment | per month | ||||||||||
Repayment period of debt | 5 years | ||||||||||
Amount payable through the end of lease term | 6,900,000 | ||||||||||
Term Loan [Member] | |||||||||||
Long-term borrowings [Abstract] | |||||||||||
Long-term debt and capital lease obligations | 0 | 21,250,000 | |||||||||
Variable interest rate (in hundredths) | 2.69% | ||||||||||
Minimum lease payments under the Company's capital lease obligations [Abstract] | |||||||||||
Maturity date of debt | 31-Mar-17 | ||||||||||
Original face amount of debt | 25,000,000 | ||||||||||
Repayment of term loan | $21,300,000 |
OPERATING_LEASES_Details
OPERATING LEASES (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Apr. 29, 2012 | |
OPERATING LEASES [Abstract] | ||||
Rent expense under operating leases | $2,800,000 | $2,700,000 | $2,700,000 | |
Capital Leased Assets [Line Items] | ||||
Reduction of operating lease commitments | 15,000,000 | |||
Future minimum lease payments under non-cancelable operating leases [Abstract] | ||||
2015 | 2,292,000 | |||
2016 | 2,063,000 | |||
2017 | 1,595,000 | |||
2018 | 569,000 | |||
2019 | 340,000 | |||
Thereafter | 1,983,000 | |||
Total future minimum payments due | 8,842,000 | |||
Capital Lease Obligations With Micron [Member] | ||||
Capital Leased Assets [Line Items] | ||||
Payment to purchase U.S. nonoFab facility | $35,000,000 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |||
Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Oct. 30, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Date and terms of plan modification | The Company has a share-based compensation plan ("Plan"), under which options, restricted stock, restricted stock units, stock appreciation rights, performance stock, performance units, and other awards based on, or related to, shares of the Company's common stock may be granted from shares authorized but unissued or shares previously issued and reacquired by the Company | |||
Maximum number of shares of common stock that may be issued (in shares) | 9,000,000 | 6,000,000 | ||
Share-based compensation costs incurred | $4,100,000 | $4,000,000 | $3,200,000 | |
Share-based compensation cost capitalized | 0 | 0 | 0 | |
Income tax benefits realized from stock option exercises | 0 | 0 | 0 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 10 years | |||
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract] | ||||
Expected volatility (in hundredths) | 61.00% | 98.00% | 102.10% | |
Risk free rate of return (in hundredths) | 1.40% | |||
Risk free rate of return, minimum (in hundredths) | 0.50% | 0.60% | ||
Risk free rate of return, maximum (in hundredths) | 1.40% | 0.90% | ||
Dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% | |
Expected term (in years) | 4 years 7 months 6 days | 4 years 3 months 18 days | 4 years 3 months 18 days | |
Shares [Rollforward] | ||||
Outstanding at November 3, 2013 (in shares) | 4,174,302 | |||
Granted (in shares) | 632,500 | |||
Exercised (in shares) | -283,083 | |||
Cancelled and forfeited (in shares) | -446,938 | |||
Outstanding at November 2, 2014 (in shares) | 4,076,781 | 4,174,302 | ||
Exercisable at November 2, 2014 (in shares) | 2,628,203 | |||
Expected to vest as of November 2, 2014 (in shares) | 1,329,318 | |||
Weighted-Average Exercise Price [Abstract] | ||||
Outstanding at November 3, 2013 (in dollars per share) | $8.43 | |||
Granted (in dollars per share) | $8.86 | |||
Exercised (in dollars per share) | $3.75 | |||
Cancelled and forfeited (in dollars per share) | $19.50 | |||
Outstanding at November 2, 2014 (in dollars per share) | $7.60 | $8.43 | ||
Exercisable at November 2, 2014 (in dollars per share) | $7.78 | |||
Expected to vest as of November 2, 2014 (in dollars per share) | $7.29 | |||
Weighted Average Remaining Contractual Life [Abstract] | ||||
Outstanding at November 2, 2014 | 5 years 7 months 6 days | |||
Exercisable at November 2, 2014 | 4 years 2 months 12 days | |||
Expected to vest as of November 2, 2014 | 8 years 2 months 12 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding at November 2, 2014 | 10,778,000 | |||
Exercisable at November 2, 2014 | 8,314,000 | |||
Expected to vest as of November 2, 2014 | 2,261,000 | |||
Additional Disclosures [Abstract] | ||||
Weighted-average grant date fair value of options granted (in dollars per share) | $4.44 | $4 | $4.47 | |
Total intrinsic value of options exercised | 1,400,000 | 1,600,000 | 1,300,000 | |
Cash received from options exercises | 1,100,000 | 500,000 | 300,000 | |
Unrecognized compensation cost related to unvested option awards | 3,900,000 | |||
Period for recognition of compensation cost not yet recognized | 2 years 3 months 18 days | |||
Restricted Stock [Member] | ||||
Additional Disclosures [Abstract] | ||||
Period for recognition of compensation cost not yet recognized | 2 years 1 month 6 days | |||
Shares [Rollforward] | ||||
Outstanding at November 3, 2013 (in shares) | 303,627 | |||
Granted (in shares) | 111,667 | |||
Vested (in shares) | -171,563 | |||
Cancelled (in shares) | -8,250 | |||
Outstanding at November 2, 2014 (in shares) | 235,481 | 303,627 | ||
Expected to vest as of November 2, 2014 (in shares) | 220,531 | |||
Weighted-Average Fair Value at Grant Date [Abstract] | ||||
Outstanding at November 3, 2013 (in dollars per share) | $6.48 | |||
Granted (in dollars per share) | $8.86 | $5.48 | $6.28 | |
Vested (in dollars per share) | $7.60 | |||
Cancelled (in dollars per share) | $5.91 | |||
Outstanding at November 2, 2014 (in dollars per share) | $6.81 | $6.48 | ||
Expected to vest as of November 2, 2014 (in dollars per share) | $6.82 | |||
Total fair value of awards for which restrictions lapsed | 1,500,000 | 1,300,000 | 500,000 | |
Compensation cost not yet recognized related to share based payment awards other than options | 900,000 | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares of common stock that may be issued (in shares) | 1,500,000 | 1,200,000 | ||
Award vesting period | 1 year | |||
Shares [Rollforward] | ||||
Outstanding at November 2, 2014 (in shares) | 57,000 | |||
Weighted-Average Fair Value at Grant Date [Abstract] | ||||
Compensation cost not yet recognized related to share based payment awards other than options | $100,000 | |||
Percent of market price that participants pay for shares subscribed (in hundredths) | 85.00% | |||
Total shares issued under ESPP since inception (in shares) | 1,300,000 | |||
Minimum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Minimum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Maximum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Maximum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years |
EMPLOYEE_RETIREMENT_PLAN_Detai
EMPLOYEE RETIREMENT PLAN (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
EMPLOYEE RETIREMENT PLAN [Abstract] | |||
Number of months of service completed to come under retirement plan | 3 months | ||
Minimum age of employees to come under retirement plan | 18 years | ||
Percentage of salary that can be contributed by the employee (in hundredths) | 50.00% | ||
Maximum percentage of employees' contributions that Company will match (in hundredths) | 50.00% | ||
Maximum percentage of employees' gross pay that Company will match (in hundredths) | 4.00% | ||
Company's contribution to 401(k) Savings and Profit Sharing Plan | $0.40 | $0.40 | $0.40 |
CONSOLIDATION_RESTRUCTURING_AN1
CONSOLIDATION, RESTRUCTURING AND RELATED CHARGES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
Activities related to restructuring reserve [Abstract] | |||
Restructuring charges | $0 | $0 | $1,428 |
Singapore Restructuring [Member] | |||
Activities related to restructuring reserve [Abstract] | |||
Restructuring charges | $1,400 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |||
Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Oct. 30, 2011 | |
Components of income before income tax provision [Abstract] | ||||
United States | ($23,083,000) | ($14,164,000) | ($5,474,000) | |
Foreign | 64,413,000 | 40,969,000 | 46,122,000 | |
Income before income tax provision | 41,330,000 | 26,805,000 | 40,648,000 | |
Current [Abstract] | ||||
Federal | 354,000 | 208,000 | 81,000 | |
State | 0 | 65,000 | -5,000 | |
Foreign | 4,726,000 | 7,222,000 | 11,332,000 | |
Deferred [Abstract] | ||||
Federal | 0 | 0 | 0 | |
State | -5,000 | -181,000 | 0 | |
Foreign | 4,220,000 | -85,000 | -615,000 | |
Income Tax Expense (Benefit), Total | 9,295,000 | 7,229,000 | 10,793,000 | |
Income tax provision reconciliation [Abstract] | ||||
U.S. federal income tax at statutory rate | 14,465,000 | 9,382,000 | 14,227,000 | |
Changes in valuation allowances | -7,575,000 | 1,325,000 | 1,806,000 | |
Distributions from foreign subsidiaries | 12,674,000 | 1,957,000 | 2,073,000 | |
State income taxes, net of federal benefit | -141,000 | 267,000 | -1,956,000 | |
Foreign tax rate differentials | -4,864,000 | -4,851,000 | -3,805,000 | |
Tax credits | -2,847,000 | -3,967,000 | -1,071,000 | |
Uncertain tax positions, including reserves, settlements and resolutions | -2,255,000 | 1,471,000 | 1,984,000 | |
Debt extinguishment losses | 0 | 0 | -2,879,000 | |
Gain on acquisition of DPTT | -5,748,000 | 0 | 0 | |
Intercompany gain elimination | 4,759,000 | 0 | 0 | |
Equity based compensation | 714,000 | 765,000 | 499,000 | |
Other, net | 113,000 | 880,000 | -85,000 | |
Income Tax Expense (Benefit), Total | 9,295,000 | 7,229,000 | 10,793,000 | |
U.S. statutory rate (in hundredths) | 35.00% | 35.00% | 35.00% | |
Deferred income tax assets [Abstract] | ||||
Net operating losses | 64,529,000 | 57,631,000 | ||
Reserves not currently deductible | 6,948,000 | 7,101,000 | ||
Alternative minimum tax credits | 3,121,000 | 3,116,000 | ||
Tax credit carryforwards | 8,368,000 | 7,051,000 | ||
Other | 1,773,000 | 1,892,000 | ||
Deferred tax assets | 84,739,000 | 76,791,000 | ||
Valuation allowances | -49,548,000 | -56,661,000 | ||
Deferred tax assets net of valuation allowance | 35,191,000 | 20,130,000 | ||
Deferred income tax liabilities [Abstract] | ||||
Undistributed earnings of foreign subsidiaries | -5,366,000 | -5,347,000 | ||
Property, plant and equipment | -11,503,000 | -890,000 | ||
Investments | -2,660,000 | -371,000 | ||
Other | -448,000 | -992,000 | ||
Deferred income taxes liabilities | -19,977,000 | -7,600,000 | ||
Net deferred income tax assets | 15,214,000 | 12,530,000 | ||
Reported as [Abstract] | ||||
Current deferred tax assets | 7,223,000 | 1,082,000 | ||
Noncurrent deferred tax assets | 11,036,000 | 12,455,000 | ||
Noncurrent deferred tax liabilities | -3,045,000 | -1,007,000 | ||
Net deferred income tax assets | 15,214,000 | 12,530,000 | ||
Unrecognized tax benefits | 4,993,000 | 4,757,000 | 3,793,000 | 1,824,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 5,000,000 | |||
Interest and penalties accrued related to uncertain tax positions. | 100,000 | 100,000 | ||
Including Interest and Penalties [Member] | ||||
Reported as [Abstract] | ||||
Unrecognized tax benefits | 5,100,000 | 4,900,000 | ||
Recorded in Other Liabilities [Member] | ||||
Reported as [Abstract] | ||||
Unrecognized tax benefits | 5,000,000 | 1,700,000 | ||
Reduction of Deferred Tax Asset [Member] | ||||
Reported as [Abstract] | ||||
Unrecognized tax benefits | $100,000 | $3,200,000 |
INCOME_TAXES_Part_2_Details
INCOME TAXES, Part 2 (Details) (USD $) | 12 Months Ended | ||
Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties [Roll Forward] | |||
Balance at beginning of year | $4,757,000 | $3,793,000 | $1,824,000 |
Additions for tax positions in prior years | 3,437,000 | 1,224,000 | 1,932,000 |
Additions based on current year tax positions | 272,000 | 207,000 | 616,000 |
Settlements | -3,155,000 | -406,000 | -518,000 |
Lapses of statutes of limitations | -318,000 | -61,000 | -61,000 |
Balance at end of year | 4,993,000 | 4,757,000 | 3,793,000 |
Operating Loss Carryforward [Abstract] | |||
Valuation allowance increase (decrease) | -7,100,000 | 1,100,000 | 2,500,000 |
Income taxes, additional disclosures [Abstract] | |||
Undistributed earnings of foreign subsidiaries included in consolidated retained earnings | 142,500,000 | ||
Earnings of foreign subsidiaries included in consolidated retained earnings which are considered not to be permanently reinvested | 15,300,000 | ||
Remaining undistributed earnings considered to be indefinitely invested | 127,200,000 | ||
Dollar effect of income tax holiday | 0 | 0 | 0 |
Per share effect of income tax holiday (dollars per share) | $0 | $0 | $0 |
Income taxes paid | 5,200,000 | 10,700,000 | 14,300,000 |
Cash received for refunds of income taxes | 1,400,000 | 300,000 | 100,000 |
DPTT Acquisition [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforwards | 58,600,000 | ||
PDMC [Member] | |||
Income taxes, additional disclosures [Abstract] | |||
One-time remittance in conjunction with acquisition | 35,000,000 | ||
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforwards | 123,600,000 | ||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforward expiration date | 31-Oct-23 | ||
Internal Revenue Service (IRS) [Member] | Maximum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforward expiration date | 31-Oct-34 | ||
Internal Revenue Service (IRS) [Member] | Research Tax Credit Carryforward [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Tax credit carryfoward amount | 4,000,000 | ||
Internal Revenue Service (IRS) [Member] | Research Tax Credit Carryforward [Member] | Minimum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Tax credit carryfoward expiration date | 31-Oct-19 | ||
Internal Revenue Service (IRS) [Member] | Research Tax Credit Carryforward [Member] | Maximum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Tax credit carryfoward expiration date | 31-Oct-34 | ||
Internal Revenue Service (IRS) [Member] | Alternate Minimum Tax Credit Carryforward [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Tax credit carryfoward amount | 3,100,000 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforwards | 73,100,000 | ||
Operating loss carryforward not subject to expiration | 1,000,000 | ||
Tax credit carryfoward amount | 800,000 | ||
Foreign Tax Authority [Member] | Minimum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforward expiration date | 31-Oct-15 | ||
Foreign Tax Authority [Member] | Maximum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforward expiration date | 31-Oct-34 | ||
Foreign Tax Authority [Member] | DPTT Acquisition [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforwards | 34,600,000 | ||
Tax credit carryfoward expiration date | 31-Oct-19 | ||
Foreign Tax Authority [Member] | PDMC [Member] | |||
Income taxes, additional disclosures [Abstract] | |||
Income tax holiday commencement date | 1-Jan-15 | ||
Income tax holiday termination date | 31-Oct-19 | ||
Foreign Tax Authority [Member] | PKLT [Member] | |||
Income taxes, additional disclosures [Abstract] | |||
Income tax holiday commencement date | 1-Jan-12 | ||
Income tax holiday termination date | 31-Oct-17 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforwards | 209,500,000 | ||
Tax credit carryfoward amount | $5,600,000 | ||
State and Local Jurisdiction [Member] | Minimum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforward expiration date | 31-Oct-15 | ||
Tax credit carryfoward expiration date | 31-Oct-15 | ||
State and Local Jurisdiction [Member] | Maximum [Member] | |||
Operating Loss Carryforward [Abstract] | |||
Operating loss carryforward expiration date | 31-Oct-34 | ||
Tax credit carryfoward expiration date | 31-Oct-34 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||
In Thousands, except Share data, unless otherwise specified | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 27, 2013 | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Feb. 01, 2015 | |||||
Calculation of basic and diluted earnings per share [Abstract] | |||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | $4,277 | $4,186 | $15,540 | [1],[2] | $1,993 | [3] | $4,840 | [4] | $5,940 | $4,863 | $2,323 | $25,996 | [1],[5] | $17,966 | [4] | $27,868 | |
Effect of dilutive securities [Abstract] | |||||||||||||||||
Interest expense on convertible notes, net of related tax effects | 1,426 | 0 | 6,168 | ||||||||||||||
Gain related to common stock warrants fair value adjustment | 0 | 0 | -94 | ||||||||||||||
Earnings for diluted earnings per share | $27,422 | $17,966 | $33,942 | ||||||||||||||
Weighted-average common shares computations [Abstract] | |||||||||||||||||
Weighted-average common shares used for basic earnings per share (in shares) | 61,779,000 | 60,644,000 | 60,055,000 | ||||||||||||||
Effect of dilutive securities [Abstract] | |||||||||||||||||
Convertible notes (in shares) | 3,945,000 | 0 | 15,423,000 | ||||||||||||||
Share-based payment awards (in shares) | 955,000 | 813,000 | 767,000 | ||||||||||||||
Common stock warrants (in shares) | 0 | 142,000 | 219,000 | ||||||||||||||
Dilutive potential common shares (in shares) | 4,900,000 | 955,000 | 16,409,000 | ||||||||||||||
Weighted-average common shares used for diluted earnings per share (in shares) | 66,679,000 | 61,599,000 | 76,464,000 | ||||||||||||||
Basic earnings per share (in dollars per share) | $0.07 | $0.07 | $0.25 | [1],[2] | $0.03 | [3] | $0.08 | [4] | $0.10 | $0.08 | $0.04 | $0.42 | [1],[5] | $0.30 | [4] | $0.46 | |
Diluted earnings per share (in dollars per share) | $0.07 | $0.07 | $0.22 | [1],[2] | $0.03 | [3] | $0.08 | [4] | $0.10 | $0.08 | $0.04 | $0.41 | [1],[5] | $0.29 | [4] | $0.44 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||
Total potentially dilutive shares excluded (in shares) | 12,996,000 | 9,048,000 | 2,587,000 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Share-based payment awards issued after fiscal year 2014 (in shares) | 400,000 | ||||||||||||||||
Convertible Notes [Member] | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||
Total potentially dilutive shares excluded (in shares) | 11,085,000 | 6,168,000 | 0 | ||||||||||||||
Share-based Payment Awards [Member] | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||
Total potentially dilutive shares excluded (in shares) | 1,911,000 | 2,880,000 | 2,587,000 | ||||||||||||||
[1] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||
[2] | Includes expenses of $2.0 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||
[3] | Includes expenses of $0.5 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||
[4] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. | ||||||||||||||||
[5] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. |
SUBSIDIARY_SHARE_REPURCHASE_AN2
SUBSIDIARY SHARE REPURCHASE AND TENDER OFFER (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||
In Thousands, except Share data in Millions, unless otherwise specified | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 27, 2013 | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | Jan. 31, 2014 | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||
Payment to minority shareholders | $0 | $32,374 | $15,598 | ||||||||||||||
Effect of the change in the entity's ownership interest in PSMC [Abstract] | |||||||||||||||||
Net income attributable to Photronics, Inc. shareholders | 4,277 | 4,186 | 15,540 | [1],[2] | 1,993 | [3] | 4,840 | [4] | 5,940 | 4,863 | 2,323 | 25,996 | [1],[5] | 17,966 | [4] | 27,868 | |
Increase (decrease) in Photronics, Inc.'s additional paid-in capital and accumulated other comprehensive income | -11 | -237 | |||||||||||||||
Change from net income attributable to Photronics, Inc. shareholders due to issuance of shares of PDMC and transfers to or from noncontrolling interests | 20,212 | 18,329 | 29,775 | ||||||||||||||
Additional Paid-in Capital [Member] | |||||||||||||||||
Effect of the change in the entity's ownership interest in PSMC [Abstract] | |||||||||||||||||
Increase (decrease) in Photronics, Inc.'s additional paid-in capital and accumulated other comprehensive income | -6,183 | 600 | 1,985 | ||||||||||||||
Accumulated Other Comprehensive Income [Member] | |||||||||||||||||
Effect of the change in the entity's ownership interest in PSMC [Abstract] | |||||||||||||||||
Increase (decrease) in Photronics, Inc.'s additional paid-in capital and accumulated other comprehensive income | 399 | -237 | -78 | ||||||||||||||
PSMC [Member] | |||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||
Subsidiary shares acquired (in shares) | 9.2 | 60.5 | 35.9 | 3 | |||||||||||||
Payment to minority shareholders | 4,200 | 1,700 | |||||||||||||||
Ownership percentage in subsidiary (in hundredths) | 75.11% | 72.09% | 100.00% | ||||||||||||||
Common stock issued by subsidiary (in shares) | 112.9 | ||||||||||||||||
PSMC [Member] | Tender Offer [Member] | |||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||||
Subsidiary shares acquired (in shares) | 51.4 | ||||||||||||||||
Payment to minority shareholders | $28,100 | ||||||||||||||||
Ownership percentage in subsidiary (in hundredths) | 98.63% | 98.63% | |||||||||||||||
[1] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||
[2] | Includes expenses of $2.0 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||
[3] | Includes expenses of $0.5 million, net of tax, related to the acquisition of DPTT. | ||||||||||||||||
[4] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. | ||||||||||||||||
[5] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Nov. 02, 2014 |
In Millions, unless otherwise specified | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Outstanding commitments for capital expenditure | $83 |
Recorded purchase commitments | 31 |
Total unrecorded purchase commitments | $84 |
GEOGRAPHIC_AND_SIGNIFICANT_CUS2
GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 27, 2013 | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $124,251 | $124,852 | $104,882 | $101,542 | $106,009 | $109,652 | $106,680 | $99,839 | $455,527 | $422,180 | $450,439 |
Long-lived assets | 550,069 | 422,740 | 550,069 | 422,740 | 380,808 | ||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | One Customer Accounted [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percent of net sales accounted for by significant customer (in hundredths) | 16.00% | 18.00% | 22.00% | ||||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Other Customer Accounted [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percent of net sales accounted for by significant customer (in hundredths) | 11.00% | ||||||||||
IC [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 352,679 | 320,579 | 350,105 | ||||||||
FPD [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 102,848 | 101,601 | 100,334 | ||||||||
Taiwan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 167,075 | 117,364 | 109,232 | ||||||||
Long-lived assets | 207,324 | 66,836 | 207,324 | 66,836 | 72,185 | ||||||
Korea [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 140,386 | 134,300 | 161,154 | ||||||||
Long-lived assets | 176,141 | 153,878 | 176,141 | 153,878 | 120,628 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 106,740 | 127,054 | 135,170 | ||||||||
Long-lived assets | 158,325 | 191,518 | 158,325 | 191,518 | 177,614 | ||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 38,726 | 41,126 | 40,653 | ||||||||
Long-lived assets | 8,259 | 10,471 | 8,259 | 10,471 | 10,262 | ||||||
All Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,600 | 2,336 | 4,230 | ||||||||
Long-lived assets | $20 | $37 | $20 | $37 | $119 |
CHANGES_IN_ACCUMULATED_OTHER_C2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | |||
Other comprehensive income, tax | $0 | $0 | $0 |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 26,403 | 15,900 | |
Other comprehensive income (loss) before reclassifications | -5,957 | 9,859 | |
Amounts reclassified from other accumulated comprehensive income | 128 | 128 | |
Total other comprehensive income (loss), net of tax | -5,829 | 9,987 | 7,207 |
Less: other comprehensive loss attributable to noncontrolling interests | 801 | 753 | |
Purchase of common stock of subsidiary | -11 | -237 | |
Other accumulated comprehensive income allocated to noncontrolling interests | 410 | ||
Ending Balance | 21,774 | 26,403 | 15,900 |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 27,797 | 17,241 | |
Other comprehensive income (loss) before reclassifications | -5,916 | 9,805 | |
Amounts reclassified from other accumulated comprehensive income | 0 | 0 | |
Total other comprehensive income (loss), net of tax | -5,916 | 9,805 | |
Less: other comprehensive loss attributable to noncontrolling interests | 770 | 751 | |
Purchase of common stock of subsidiary | 0 | 0 | |
Ending Balance | 22,651 | 27,797 | |
Amortization of Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | -562 | -690 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Amounts reclassified from other accumulated comprehensive income | 128 | 128 | |
Total other comprehensive income (loss), net of tax | 128 | 128 | |
Less: other comprehensive loss attributable to noncontrolling interests | 0 | 0 | |
Purchase of common stock of subsidiary | 0 | 0 | |
Ending Balance | -434 | -562 | |
Other [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | -832 | -651 | |
Other comprehensive income (loss) before reclassifications | -41 | 54 | |
Amounts reclassified from other accumulated comprehensive income | 0 | 0 | |
Total other comprehensive income (loss), net of tax | -41 | 54 | |
Less: other comprehensive loss attributable to noncontrolling interests | 31 | 2 | |
Purchase of common stock of subsidiary | -11 | -237 | |
Other accumulated comprehensive income allocated to noncontrolling interests | 410 | ||
Ending Balance | ($443) | ($832) |
OTHER_RELATED_PARTY_TRANSACTIO1
OTHER RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 |
Information Technology Services Provider [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses incurred for services provided by related party during the period | $1.20 | $1.70 | $1.80 |
Amount due currently to related party at end of period | 0.1 | 0.1 | |
Amount of future services contracted for with related party | 0.9 | ||
Photomask Blank Supplier [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due currently to related party at end of period | 4.4 | 4.6 | |
Purchases from related party | $20.10 | $20 | $20.10 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Nov. 02, 2014 | Nov. 03, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $0 | $0 |
Total liabilities | 0 | 0 |
Fair Value [Member] | 3.25% Convertible Senior Notes [Member] | ||
Fair and carrying values of the Company's convertible senior notes [Abstract] | ||
Convertible senior notes | 122,544 | 130,330 |
Fair Value [Member] | 5.5% Convertible Senior Notes [Member] | ||
Fair and carrying values of the Company's convertible senior notes [Abstract] | ||
Convertible senior notes | 0 | 37,567 |
Carrying Value [Member] | 3.25% Convertible Senior Notes [Member] | ||
Fair and carrying values of the Company's convertible senior notes [Abstract] | ||
Convertible senior notes | 115,000 | 115,000 |
Carrying Value [Member] | 5.5% Convertible Senior Notes [Member] | ||
Fair and carrying values of the Company's convertible senior notes [Abstract] | ||
Convertible senior notes | $0 | $22,054 |
QUARTERLY_RESULTS_OF_OPERATION2
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Jul. 28, 2013 | Apr. 28, 2013 | Jan. 27, 2013 | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | ||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | ||||||||||||||||
Net sales | $124,251,000 | $124,852,000 | $104,882,000 | $101,542,000 | $106,009,000 | $109,652,000 | $106,680,000 | $99,839,000 | $455,527,000 | $422,180,000 | $450,439,000 | |||||
Gross margin | 26,624,000 | 28,650,000 | 22,190,000 | 22,882,000 | 26,675,000 | 27,078,000 | 24,789,000 | 21,098,000 | 100,346,000 | 99,640,000 | ||||||
Net income | 6,700,000 | 7,344,000 | 15,950,000 | [1],[2] | 2,041,000 | [3] | 4,911,000 | [4] | 6,364,000 | 5,442,000 | 2,859,000 | 32,035,000 | [1],[5] | 19,576,000 | [4] | 29,855,000 |
Net income attributable to Photronics, Inc. shareholders | 4,277,000 | 4,186,000 | 15,540,000 | [1],[2] | 1,993,000 | [3] | 4,840,000 | [4] | 5,940,000 | 4,863,000 | 2,323,000 | 25,996,000 | [1],[5] | 17,966,000 | [4] | 27,868,000 |
Earnings per share [Abstract] | ||||||||||||||||
Basic (in dollars per share) | $0.07 | $0.07 | $0.25 | [1],[2] | $0.03 | [3] | $0.08 | [4] | $0.10 | $0.08 | $0.04 | $0.42 | [1],[5] | $0.30 | [4] | $0.46 |
Diluted (in dollars per share) | $0.07 | $0.07 | $0.22 | [1],[2] | $0.03 | [3] | $0.08 | [4] | $0.10 | $0.08 | $0.04 | $0.41 | [1],[5] | $0.29 | [4] | $0.44 |
Transaction expenses, net of tax | 2,500,000 | 2,000,000 | 500,000 | 800,000 | 2,500,000 | 800,000 | ||||||||||
Non cash gain related to acquisition, net of tax | $16,400,000 | $16,372,000 | $0 | $0 | ||||||||||||
[1] | Includes non-cash gain of $16.4 million, net of tax, related to the acquisition of DPTT. | |||||||||||||||
[2] | Includes expenses of $2.0 million, net of tax, related to the acquisition of DPTT. | |||||||||||||||
[3] | Includes expenses of $0.5 million, net of tax, related to the acquisition of DPTT. | |||||||||||||||
[4] | Includes expenses of $0.8 million, net of tax, related to the subsequent acquisition of DPTT. | |||||||||||||||
[5] | Includes expenses of $2.5 million, net of tax, related to the acquisition of DPTT. |
Schedule_IIValuation_and_Quali1
Schedule II-Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Nov. 02, 2014 | Nov. 03, 2013 | Oct. 28, 2012 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Movement in Valuation Allowance and Qualifying Accounts [Roll Forward] | ||||||
Balance at Beginning of Year | $3,541 | $3,902 | $4,055 | |||
Charged to Costs and Expenses | -740 | -398 | -203 | |||
Deductions | 277 | [1] | 37 | [1] | 50 | [1] |
Balance at End of Year | 3,078 | 3,541 | 3,902 | |||
Deferred Tax Asset Valuation Allowance [Member] | ||||||
Movement in Valuation Allowance and Qualifying Accounts [Roll Forward] | ||||||
Balance at Beginning of Year | 56,661 | 55,536 | 53,063 | |||
Charged to Costs and Expenses | 0 | 1,125 | 3,331 | |||
Deductions | -7,113 | [2] | 0 | -858 | [3] | |
Balance at End of Year | $49,548 | $56,661 | $55,536 | |||
[1] | Uncollectible accounts written off and impact of foreign currency translation. | |||||
[2] | Decrease offset by increase in deferred tax liability. | |||||
[3] | Primarily due to utilization of net operating losses and expiration of investment tax credit. |