Photronics (PLAB) 10-Q 3 Mar 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2016	Feb. 26, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	PHOTRONICS INC
Entity Central Index Key	810,136
Current Fiscal Year End Date	--10-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		67,279,545
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jan. 31, 2016	Nov. 01, 2015
Current assets:
Cash and cash equivalents	$ 231,444	$ 205,867
Accounts receivable, net of allowance of $3,228 in 2016 and $3,301 in 2015	99,936	110,056
Inventories	21,760	24,157
Other current assets	19,840	24,034
Total current assets	372,980	364,114
Property, plant and equipment, net	519,272	547,284
Investment in joint venture	92,931	93,021
Intangible assets, net	23,184	24,616
Deferred income taxes	10,675	11,908
Other assets	4,308	4,612
Total assets	1,023,350	1,045,555
Current liabilities:
Current portion of long-term borrowings	63,955	65,495
Accounts payable	69,937	87,983
Accrued liabilities	32,473	39,214
Total current liabilities	166,365	192,692
Long-term borrowings	66,224	67,120
Other liabilities	23,298	23,677
Total liabilities	$ 255,887	$ 283,489
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, 67,081 shares issued and outstanding at January 31, 2016 and 66,602 shares issued and outstanding at November 1, 2015	671	666
Additional paid-in capital	529,337	526,402
Retained earnings	151,062	130,060
Accumulated other comprehensive loss	(28,005)	(10,573)
Total Photronics, Inc. shareholders' equity	653,065	646,555
Noncontrolling interests	114,398	115,511
Total equity	767,463	762,066
Total liabilities and equity	$ 1,023,350	$ 1,045,555

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jan. 31, 2016	Nov. 01, 2015
Current assets:
Accounts receivable, allowance	$ 3,228	$ 3,301
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)	67,081	66,602
Common stock, shares outstanding (in shares)	67,081	66,602

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
Condensed Consolidated Statements of Income (unaudited) [Abstract]
Net sales	$ 129,956	$ 123,505
Cost and expenses:
Cost of sales	(94,520)	(95,321)
Selling, general and administrative	(12,198)	(11,944)
Research and development	(5,700)	(4,681)
Operating income	17,538	11,559
Other income (expense):
Gain on sale of investment	8,785	0
Interest expense	(1,174)	(1,370)
Interest and other income (expense), net	2,052	87
Income before income tax provision	27,201	10,276
Income tax provision	(3,700)	(3,134)
Net income	23,501	7,142
Net income attributable to noncontrolling interests	(2,499)	(3,305)
Net income attributable to Photronics, Inc. shareholders	$ 21,002	$ 3,837
Earnings per share:
Basic (in dollars per share)	$ 0.31	$ 0.06
Diluted (in dollars per share)	$ 0.28	$ 0.06
Weighted-average number of common shares outstanding:
Basic (in shares)	66,807	66,066
Diluted (in shares)	79,136	67,020

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) [Abstract]
Net income	$ 23,501	$ 7,142
Other comprehensive income (loss), net of tax of $0:
Foreign currency translation adjustments	(21,076)	(20,074)
Amortization of cash flow hedge	32	32
Net current period other comprehensive income (loss)	(21,044)	(20,042)
Comprehensive income (loss)	2,457	(12,900)
Less: comprehensive loss attributable to noncontrolling interests	1,113	558
Comprehensive income (loss) attributable to Photronics, Inc. shareholders	$ 3,570	$ (12,342)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) [Abstract]
Other comprehensive income, tax	$ 0	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
Cash flows from operating activities:
Net income	$ 23,501	$ 7,142
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,628	20,854
Gain on sale of investment	(8,785)	0
Changes in assets and liabilities:
Accounts receivable	7,175	(7,888)
Inventories	1,655	(1,998)
Other current assets	3,189	(4,544)
Accounts payable, accrued liabilities and other	(3,975)	8,734
Net cash provided by operating activities	43,388	22,300
Cash flows from investing activities:
Purchases of property, plant and equipment	(21,539)	(40,371)
Proceeds from sale of investment	8,785	0
Other	193	43
Net cash used in investing activities	(12,561)	(40,328)
Cash flows from financing activities:
Repayments of long-term borrowings	(2,437)	(2,367)
Proceeds from share-based arrangements	2,063	768
Net cash used in financing activities	(374)	(1,599)
Effect of exchange rate changes on cash and cash equivalents	(4,876)	(4,692)
Net increase (decrease) in cash and cash equivalents	25,577	(24,319)
Cash and cash equivalents at beginning of period	205,867	192,929
Cash and cash equivalents at end of period	231,444	168,610
Supplemental disclosure of non-cash information:
Accrual for property, plant and equipment purchased during the period	$ 5,246	$ 54,510

BASIS OF FINANCIAL STATEMENT PR

BASIS OF FINANCIAL STATEMENT PRESENTATION	3 Months Ended
	Jan. 31, 2016
BASIS OF FINANCIAL STATEMENT PRESENTATION [Abstract]
BASIS OF FINANCIAL STATEMENT PRESENTATION	NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION Photronics, Inc. and its subsidiaries ("Photronics" or “the Company") 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The Company is typically impacted during its first fiscal quarter by the North American and European holiday periods, as some customers reduce their effective workdays and orders during these periods. Additionally, the Company can be impacted during its first or second quarter by the Asian New Year holiday period, which may also reduce customer orders. Operating results for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ending October 30, 2016. For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended November 1, 2015.

CHANGES IN EQUITY

CHANGES IN EQUITY	3 Months Ended
	Jan. 31, 2016
CHANGES IN EQUITY [Abstract]
CHANGES IN EQUITY	NOTE 2 - CHANGES IN EQUITY The following tables set forth the Company's consolidated changes in equity for the three months ended January 31, 2016 and February 1, 2015: Three Months Ended January 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Capital Retained Earnings Accumulated Other Loss Non- Interests Total Equity Shares Amount Balance at November 1, 2015 66,602 $ 666 $ 526,402 $ 130,060 $ (10,573 ) $ 115,511 $ 762,066 Net income - - - 21,002 - 2,499 23,501 Other comprehensive loss - - - - (17,432 ) (3,612 ) (21,044 ) Sale of common stock through employee stock option and purchase plans 384 4 2,039 - - - 2,043 Restricted stock awards vesting and expense 95 1 250 - - - 251 Share-based compensation expense - - 646 - - - 646 Balance at January 31, 2016 67,081 $ 671 $ 529,337 $ 151,062 $ (28,005 ) $ 114,398 $ 767,463 Three Months Ended February 1, 2015 Photronics, Inc. Shareholders Common Stock Additional Capital Retained Earnings Accumulated Other Income Non- Interests Total Equity Shares Amount Balance at November 2, 2014 65,930 $ 659 $ 520,182 $ 85,435 $ 21,774 $ 111,444 $ 739,494 Net income - - - 3,837 - 3,305 7,142 Other comprehensive loss - - - - (16,179 ) (3,863 ) (20,042 ) Sale of common stock through employee stock option and purchase plans 166 2 526 - - - 528 Restricted stock awards vesting and expense 113 1 272 - - - 273 Share-based compensation expense - - 600 - - 50 650 Balance at February 1, 2015 66,209 $ 662 $ 521,580 $ 89,272 $ 5,595 $ 110,936 $ 728,045

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
	Jan. 31, 2016
PROPERTY, PLANT AND EQUIPMENT [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 3 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: January 31, 2016 November 1, 2015 Land $ 8,011 $ 8,172 Buildings and improvements 119,168 121,472 Machinery and equipment 1,419,518 1,458,623 Leasehold improvements 18,279 18,856 Furniture, fixtures and office equipment 12,360 12,700 Construction in progress 10,635 6,657 1,587,971 1,626,480 Less accumulated depreciation and amortization 1,068,699 1,079,196 $ 519,272 $ 547,284 Equipment under capital leases are included in above property, plant and equipment as follows: January 31, 2016 November 1, 2015 Machinery and equipment $ 56,245 $ 56,245 Less accumulated amortization 17,461 16,054 $ 38,784 $ 40,191 Depreciation and amortization expense for property, plant and equipment was $19.1 million and $19.2 million for the three month periods ended January 31, 2016 and February 1, 2015, respectively.

JOINT VENTURE, TECHNOLOGY LICEN

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC	3 Months Ended
	Jan. 31, 2016
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. [Abstract]
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC.	NOTE 4 - 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 by the Financial Accounting Standard Board's 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 reassessment in the current quarter, 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. MP Mask separately charges for any research and development activities it engages in at the requests of its owners. The Company recorded cost of sales of $2.2 million and $1.3 million during the three month periods ended January 31, 2016 and February 1, 2015, respectively, and research and development expenses of $0.2 million during the three month periods ended January 31, 2016 and February 1, 2015. As of January 31, 2016 and November 1, 2015, the Company owed MP Mask $5.6 million and $4.3 million, respectively, and had a receivable from Micron of $6.9 million and $6.4 million, respectively, both primarily related to the aforementioned supply agreements. 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. The Company's investment in the VIE, which represents its maximum exposure to loss, was $92.9 million at January 31, 2016 and $93.0 million November 1, 2015. This amount is reported in the Company's condensed consolidated balance sheets as "Investment in joint venture". The Company recorded a loss of $0.1 million from its investment in the three month period ended January 31, 2016, and recorded no income or loss in the three month period ended February 1, 2015. Income or loss from the VIE is included in "Interest and other income (expense), net" in the condensed consolidated statements of income. On March 24, 2015, the Company announced that the MP Mask joint venture would not be renewed after May 5, 2016. The MP Mask operating agreement provides that Micron will make a payment to the Company to purchase the Company’s equity interest in MP Mask based on the Company’s ownership percentage of the net book value of MP Mask at that time, which, as of January 18, 2016, was approximately $93 million. The Company does not expect that it will incur a significant gain or loss on this transaction. Concurrently, the Company announced that it entered into supply and technology license agreements with Micron. This supply agreement, which commences on May 6, 2016, with a one-year term subject to mutually agreeable renewals, provides that the Company will be the majority outsource supplier of Micron’s photomasks and related services, if any. The technology license agreement commenced in March 2015 and continues through the earlier of one year from the termination of the initial technology license agreement, which will occur on May 5, 2016, or when Micron certifies that it has transferred certain defined technology to the Company. The Company forevermore has the rights to use the technology obtained under these technology license agreements.

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS	3 Months Ended
	Jan. 31, 2016
LONG-TERM BORROWINGS [Abstract]
LONG-TERM BORROWINGS	NOTE 5 - LONG-TERM BORROWINGS Long-term borrowings consist of the following: January 31, 2016 November 1, 2015 3.25% convertible senior notes due in April 2016 $ 57,500 $ 57,500 3.25% convertible senior notes due in April 2019 57,500 57,500 2.77% capital lease obligation payable through July 2018 14,040 15,346 3.09% capital lease obligation payable through March 2016 1,139 2,269 130,179 132,615 Less current portion 63,955 65,495 $ 66,224 $ 67,120 In January 2015 the Company privately exchanged $57.5 million in aggregate principal amount of its 3.25% convertible senior notes with a maturity date of April 1, 2016, for new 3.25% convertible senior notes with an aggregate principal amount of $57.5 million with a maturity date of April 1, 2019. The conversion rate of the new notes is the same as that of the exchanged notes, which were issued in March 2011 with a conversion rate of approximately 96 shares of common stock per $1,000 note principal, equivalent to a conversion price of $10.37 per share of common stock, and is subject to adjustment upon the occurrence of certain events, which are described in the indenture dated January 22, 2015. Note holders may convert each $1,000 principal amount of notes at any time prior to the close of business on the second scheduled trading day immediately preceding April 1, 2019, and 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 Company’s 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 precludes the Company from paying cash dividends, and 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 January 31, 2016. The Company had no outstanding borrowings against the credit facility at January 31, 2016, and $50 million was available for borrowing. The interest rate on the credit facility (1.73% at January 31, 2016) 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 January 31, 2016 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 January 31, 2016, the total amount payable through the end of the lease term, substantially all of which represented principal, was $1.1 million.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Jan. 31, 2016
SHARE-BASED COMPENSATION [Abstract]
SHARE-BASED COMPENSATION	NOTE 6 - SHARE-BASED COMPENSATION The Company has a share-based compensation plan (the "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 $0.9 million in each of the three month periods ended January 31, 2016 and February 1, 2015, respectively, and the Company received cash from option exercises of $2.0 million and $0.7 million during those respective periods. 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 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 closing prices of the Company’s common stock on the dates 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 value of options issued during the three month periods ended January 31, 2016 and February 1, 2015, are presented in the following table. Three Months Ended January 31, 2016 February 1, 2015 Volatility 49.9 % 55.1 % Risk free rate of return 1.7 % 1.6 % Dividend yield 0.0 % 0.0 % Expected term 5.1 years 4.7 years Information on outstanding and exercisable option awards as of January 31, 2016, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at January 31, 2016 4,013,635 $ 8.17 6.4 years $ 16,900 Exercisable at January 31, 2016 2,460,810 $ 7.26 4.9 years $ 13,172 There were 579,250 share options granted during the three month period ended January 31, 2016, with a weighted-average grant date fair value of $4.66 per share, and there were 302,000 share options granted during the three month period ended February 1, 2015, with a weighted-average grant date fair value of $3.88 per share. As of January 31, 2016, the total unrecognized compensation cost related to unvested option awards was approximately $5.9 million. That cost is expected to be recognized over a weighted-average amortization period of 2.9 years. Restricted Stock The Company periodically grants restricted stock awards. The restrictions on these awards typically lapse over a service period of one to four years. There were 115,225 restricted stock awards issued during the three month period ended January 31, 2016, with a weighted-average grant date fair value of $12.13 per share, and there were 111,334 restricted stock awards issued during the three month period ended February 1, 2015, with a weighted-average grant date fair value of $8.23 per share. As of January 31, 2016, the total compensation cost not yet recognized related to unvested restricted stock awards was approximately $2.0 million. That cost is expected to be recognized over a weighted-average amortization period of 2.3 years. As of January 31, 2016, there were 209,875 shares of restricted stock outstanding.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jan. 31, 2016
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 7 - INCOME TAXES The effective tax rate differs from the U.S. statutory rate of 35% in the three month periods ended January 31, 2016 and February 1, 2015, primarily due to earnings being taxed at lower statutory rates in foreign jurisdictions, combined with the benefit of various investment credits in a foreign jurisdiction. Valuation allowances in jurisdictions with historic losses eliminate the effective rate impact of these jurisdictions. Unrecognized tax benefits related to uncertain tax positions were $4.1 million at January 31, 2016 and at November 1, 2015, all of which would favorably impact the Company's effective tax rate if recognized. Accrued interest and penalties related to unrecognized tax benefits was $0.1 million at January 31, 2016 and November 1, 2015. As of January 31, 2016, the total amount of unrecognized tax benefits is not expected to significantly increase or decrease in the next twelve months. PKLT, the Company's FPD manufacturing facility in Taiwan, has been accorded a tax holiday, which started in 2012 and expires in 2017. This tax holiday had no dollar or per share effect in the three month periods ended January 31, 2016 and February 1, 2015. PDMC, the Company’s IC manufacturing facility in Taiwan was accorded a tax holiday that commenced in 2015 and expires in 2019. The Company realized $0.1 million in tax benefits from this tax holiday in each of the three month periods ended January 31, 2016 and February 1, 2015. The tax holiday had no per share effect in the three month periods ended January 31, 2016 and February 1, 2015.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Jan. 31, 2016
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	NOTE 8 - EARNINGS PER SHARE The calculation of basic and diluted earnings per share is presented below. Three Months Ended January 31, 2016 February 1, 2015 Net income attributable to Photronics, Inc. shareholders $ 21,002 $ 3,837 Effect of dilutive securities: Interest expense on convertible notes, net of tax 1,071 - Earnings for diluted earnings per share $ 22,073 $ 3,837 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 66,807 66,066 Effect of dilutive securities: Convertible notes 11,084 - Share-based payment awards 1,245 954 Potentially dilutive common shares 12,329 954 Weighted-average common shares used for diluted earnings per share 79,136 67,020 Basic earnings per share $ 0.31 $ 0.06 Diluted earnings per share $ 0.28 $ 0.06 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 anti-dilutive. The table also shows convertible notes that, if converted, would have been anti-dilutive. Three Months Ended January 31, 2016 February 1, 2015 Share-based payment awards 668 1,587 Convertible notes - 11,085 Total potentially dilutive shares excluded 668 12,672

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	3 Months Ended
	Jan. 31, 2016
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	NOTE 9 - 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 three month periods ended January 31, 2016 and February 1, 2015: Three Months Ended January 31, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at November 1, 2015 $ (9,634 ) $ (306 ) $ (633 ) $ (10,573 ) Other comprehensive income (loss) before reclassifications (21,115 ) - 39 (21,076 ) Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) (21,115 ) 32 39 (21,044 ) Less: other comprehensive (income)loss attributable to noncontrolling interests 3,631 - (19 ) 3,612 Balance at January 31, 2016 $ (27,118 ) $ (274 ) $ (613 ) $ (28,005 ) Three Months Ended February 1, 2015 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at November 2, 2014 $ 22,651 $ (434 ) $ (443 ) $ 21,774 Other comprehensive income (loss) before reclassifications (20,106 ) - 32 (20,074 ) Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) (20,106 ) 32 32 (20,042 ) Less: other comprehensive (income) loss attributable to noncontrolling interests 3,879 - (16 ) 3,863 Balance at February 1, 2015 $ 6,424 $ (402 ) $ (427 ) $ 5,595

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Jan. 31, 2016
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 10 - 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 January 31, 2016 or November 1, 2015. 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 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 January 31, 2016 and November 1, 2015. January 31, 2016 November 1, 2015 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2016 $ 67,183 $ 57,500 $ 60,375 $ 57,500 3.25% convertible senior notes due 2019 $ 73,163 $ 57,500 $ 64,550 $ 57,500

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jan. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 - COMMITMENTS AND CONTINGENCIES As of January 31, 2016, the Company had commitments outstanding for capital equipment expenditures of approximately $9 million. 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 condensed consolidated financial statements.

GAIN ON SALE OF INVESTMENT

GAIN ON SALE OF INVESTMENT	3 Months Ended
	Jan. 31, 2016
GAIN ON SALE OF INVESTMENT [Abstract]
GAIN ON SALE OF INVESTMENT	NOTE 12 – GAIN ON SALE OF INVESTMENT The Company had a minority interest in a foreign entity. In the first quarter of fiscal year 2016, the Company sold this investment and recognized a gain of $8.8 million.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Jan. 31, 2016
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 13 - RECENT ACCOUNTING PRONOUNCEMENTS In November 2015 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17 “Balance Sheet Classification of Deferred Taxes”, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for the Company in its first quarter of fiscal 2018, with early application permitted and, upon adoption, may be applied either prospectively or retrospectively. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In April 2015 the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs”, which requires debt issuance costs related to recognized debt liability to be presented in the balance sheet as a direct deduction from that debt liability, consistent with the presentation of a debt discount. This ASU is effective for the Company in its first quarter of fiscal 2017 and, upon adoption, should be applied retrospectively. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers", which will supersede nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States. 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. In August 2015 the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year and allows entities to early adopt, but no earlier than the original effective date. ASU 2014-09 will now be effective for the Company in its first quarter of fiscal 2019. ASU 2014-09 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 ASU 2014-09 on its consolidated financial statements.

SHARE-BASED COMPENSATION (Polic

SHARE-BASED COMPENSATION (Policies)	3 Months Ended
	Jan. 31, 2016
SHARE-BASED COMPENSATION [Abstract]
Share-based compensation 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 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 closing prices of the Company’s common stock on the dates 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.

FAIR VALUE MEASUREMENTS (Polici

FAIR VALUE MEASUREMENTS (Policies)	3 Months Ended
	Jan. 31, 2016
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 PRONOUNCEME23

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
	Jan. 31, 2016
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Recent Accounting Pronouncements	In November 2015 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17 “Balance Sheet Classification of Deferred Taxes”, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for the Company in its first quarter of fiscal 2018, with early application permitted and, upon adoption, may be applied either prospectively or retrospectively. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In April 2015 the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs”, which requires debt issuance costs related to recognized debt liability to be presented in the balance sheet as a direct deduction from that debt liability, consistent with the presentation of a debt discount. This ASU is effective for the Company in its first quarter of fiscal 2017 and, upon adoption, should be applied retrospectively. Early adoption is permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers", which will supersede nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States. 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. In August 2015 the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year and allows entities to early adopt, but no earlier than the original effective date. ASU 2014-09 will now be effective for the Company in its first quarter of fiscal 2019. ASU 2014-09 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 ASU 2014-09 on its consolidated financial statements.

CHANGES IN EQUITY (Tables)

CHANGES IN EQUITY (Tables)	3 Months Ended
	Jan. 31, 2016
CHANGES IN EQUITY [Abstract]
Consolidated changes in equity	The following tables set forth the Company's consolidated changes in equity for the three months ended January 31, 2016 and February 1, 2015: Three Months Ended January 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Capital Retained Earnings Accumulated Other Loss Non- Interests Total Equity Shares Amount Balance at November 1, 2015 66,602 $ 666 $ 526,402 $ 130,060 $ (10,573 ) $ 115,511 $ 762,066 Net income - - - 21,002 - 2,499 23,501 Other comprehensive loss - - - - (17,432 ) (3,612 ) (21,044 ) Sale of common stock through employee stock option and purchase plans 384 4 2,039 - - - 2,043 Restricted stock awards vesting and expense 95 1 250 - - - 251 Share-based compensation expense - - 646 - - - 646 Balance at January 31, 2016 67,081 $ 671 $ 529,337 $ 151,062 $ (28,005 ) $ 114,398 $ 767,463 Three Months Ended February 1, 2015 Photronics, Inc. Shareholders Common Stock Additional Capital Retained Earnings Accumulated Other Income Non- Interests Total Equity Shares Amount Balance at November 2, 2014 65,930 $ 659 $ 520,182 $ 85,435 $ 21,774 $ 111,444 $ 739,494 Net income - - - 3,837 - 3,305 7,142 Other comprehensive loss - - - - (16,179 ) (3,863 ) (20,042 ) Sale of common stock through employee stock option and purchase plans 166 2 526 - - - 528 Restricted stock awards vesting and expense 113 1 272 - - - 273 Share-based compensation expense - - 600 - - 50 650 Balance at February 1, 2015 66,209 $ 662 $ 521,580 $ 89,272 $ 5,595 $ 110,936 $ 728,045

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Jan. 31, 2016
PROPERTY, PLANT AND EQUIPMENT [Abstract]
Property, plant and equipment	Property, plant and equipment consists of the following: January 31, 2016 November 1, 2015 Land $ 8,011 $ 8,172 Buildings and improvements 119,168 121,472 Machinery and equipment 1,419,518 1,458,623 Leasehold improvements 18,279 18,856 Furniture, fixtures and office equipment 12,360 12,700 Construction in progress 10,635 6,657 1,587,971 1,626,480 Less accumulated depreciation and amortization 1,068,699 1,079,196 $ 519,272 $ 547,284
Equipment under capital leases included in property, plant and equipment	Equipment under capital leases are included in above property, plant and equipment as follows: January 31, 2016 November 1, 2015 Machinery and equipment $ 56,245 $ 56,245 Less accumulated amortization 17,461 16,054 $ 38,784 $ 40,191

LONG-TERM BORROWINGS (Tables)

LONG-TERM BORROWINGS (Tables)	3 Months Ended
	Jan. 31, 2016
LONG-TERM BORROWINGS [Abstract]
Long-term borrowings	Long-term borrowings consist of the following: January 31, 2016 November 1, 2015 3.25% convertible senior notes due in April 2016 $ 57,500 $ 57,500 3.25% convertible senior notes due in April 2019 57,500 57,500 2.77% capital lease obligation payable through July 2018 14,040 15,346 3.09% capital lease obligation payable through March 2016 1,139 2,269 130,179 132,615 Less current portion 63,955 65,495 $ 66,224 $ 67,120

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Jan. 31, 2016
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 value of options issued during the three month periods ended January 31, 2016 and February 1, 2015, are presented in the following table. Three Months Ended January 31, 2016 February 1, 2015 Volatility 49.9 % 55.1 % Risk free rate of return 1.7 % 1.6 % Dividend yield 0.0 % 0.0 % Expected term 5.1 years 4.7 years
Information on outstanding and exercisable option awards	Information on outstanding and exercisable option awards as of January 31, 2016, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at January 31, 2016 4,013,635 $ 8.17 6.4 years $ 16,900 Exercisable at January 31, 2016 2,460,810 $ 7.26 4.9 years $ 13,172

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Jan. 31, 2016
EARNINGS PER SHARE [Abstract]
Calculation of basic and diluted earnings per share	The calculation of basic and diluted earnings per share is presented below. Three Months Ended January 31, 2016 February 1, 2015 Net income attributable to Photronics, Inc. shareholders $ 21,002 $ 3,837 Effect of dilutive securities: Interest expense on convertible notes, net of tax 1,071 - Earnings for diluted earnings per share $ 22,073 $ 3,837 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 66,807 66,066 Effect of dilutive securities: Convertible notes 11,084 - Share-based payment awards 1,245 954 Potentially dilutive common shares 12,329 954 Weighted-average common shares used for diluted earnings per share 79,136 67,020 Basic earnings per share $ 0.31 $ 0.06 Diluted earnings per share $ 0.28 $ 0.06
Outstanding securities excluded from the calculation of diluted earnings or loss 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 anti-dilutive. The table also shows convertible notes that, if converted, would have been anti-dilutive. Three Months Ended January 31, 2016 February 1, 2015 Share-based payment awards 668 1,587 Convertible notes - 11,085 Total potentially dilutive shares excluded 668 12,672

CHANGES IN ACCUMULATED OTHER 29

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables)	3 Months Ended
	Jan. 31, 2016
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]
Schedule of 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 three month periods ended January 31, 2016 and February 1, 2015: Three Months Ended January 31, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at November 1, 2015 $ (9,634 ) $ (306 ) $ (633 ) $ (10,573 ) Other comprehensive income (loss) before reclassifications (21,115 ) - 39 (21,076 ) Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) (21,115 ) 32 39 (21,044 ) Less: other comprehensive (income)loss attributable to noncontrolling interests 3,631 - (19 ) 3,612 Balance at January 31, 2016 $ (27,118 ) $ (274 ) $ (613 ) $ (28,005 ) Three Months Ended February 1, 2015 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at November 2, 2014 $ 22,651 $ (434 ) $ (443 ) $ 21,774 Other comprehensive income (loss) before reclassifications (20,106 ) - 32 (20,074 ) Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) (20,106 ) 32 32 (20,042 ) Less: other comprehensive (income) loss attributable to noncontrolling interests 3,879 - (16 ) 3,863 Balance at February 1, 2015 $ 6,424 $ (402 ) $ (427 ) $ 5,595

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Jan. 31, 2016
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 January 31, 2016 and November 1, 2015. January 31, 2016 November 1, 2015 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2016 $ 67,183 $ 57,500 $ 60,375 $ 57,500 3.25% convertible senior notes due 2019 $ 73,163 $ 57,500 $ 64,550 $ 57,500

BASIS OF FINANCIAL STATEMENT 31

BASIS OF FINANCIAL STATEMENT PRESENTATION (Details)	3 Months Ended
	Jan. 31, 2016Facility
Manufacturing Facilities By Geographical Region [Line Items]
Number of manufacturing facilities	9
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

CHANGES IN EQUITY (Details)

CHANGES IN EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
Class of Stock [Line Items]
Beginning balance	$ 762,066	$ 739,494
Net income	23,501	7,142
Other comprehensive loss	(21,044)	(20,042)
Sale of common stock through employee stock option and purchase plans	2,043	528
Restricted stock awards vesting and expense	251	273
Share-based compensation expense	646	650
Ending balance	767,463	728,045
Common Stock [Member]
Class of Stock [Line Items]
Beginning balance	$ 666	$ 659
Beginning balance (in shares)	66,602	65,930
Net income	$ 0	$ 0
Other comprehensive loss	0	0
Sale of common stock through employee stock option and purchase plans	$ 4	$ 2
Sale of common stock through employee stock option and purchase plans (in shares)	384	166
Restricted stock awards vesting and expense	$ 1	$ 1
Restricted stock awards vesting and expense (in shares)	95	113
Share-based compensation expense	$ 0	$ 0
Ending balance	$ 671	$ 662
Ending balance (in shares)	67,081	66,209
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Beginning balance	$ 526,402	$ 520,182
Net income	0	0
Other comprehensive loss	0	0
Sale of common stock through employee stock option and purchase plans	2,039	526
Restricted stock awards vesting and expense	250	272
Share-based compensation expense	646	600
Ending balance	529,337	521,580
Retained Earnings [Member]
Class of Stock [Line Items]
Beginning balance	130,060	85,435
Net income	21,002	3,837
Other comprehensive loss	0	0
Sale of common stock through employee stock option and purchase plans	0	0
Restricted stock awards vesting and expense	0	0
Share-based compensation expense	0	0
Ending balance	151,062	89,272
Accumulated Other Comprehensive Income (Loss) [Member]
Class of Stock [Line Items]
Beginning balance	(10,573)	21,774
Net income	0	0
Other comprehensive loss	(17,432)	(16,179)
Sale of common stock through employee stock option and purchase plans	0	0
Restricted stock awards vesting and expense	0	0
Share-based compensation expense	0	0
Ending balance	(28,005)	5,595
Non-controlling Interests [Member]
Class of Stock [Line Items]
Beginning balance	115,511	111,444
Net income	2,499	3,305
Other comprehensive loss	(3,612)	(3,863)
Sale of common stock through employee stock option and purchase plans	0	0
Restricted stock awards vesting and expense	0	0
Share-based compensation expense	0	50
Ending balance	$ 114,398	$ 110,936

PROPERTY, PLANT AND EQUIPMENT33

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015	Nov. 01, 2015
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 1,587,971		$ 1,626,480
Less accumulated depreciation and amortization	1,068,699		1,079,196
Property, plant and equipment, net	519,272		547,284
Depreciation and amortization expense	19,100	$ 19,200
Equipment under capital leases included in property, plant and equipment [Abstract]
Capital leased assets, gross	56,245		56,245
Less accumulated amortization	17,461		16,054
Capital leased assets, net	38,784		40,191
Land [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	8,011		8,172
Buildings and improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	119,168		121,472
Machinery and equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	1,419,518		1,458,623
Leasehold improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	18,279		18,856
Furniture, fixtures and office equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	12,360		12,700
Construction in progress [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 10,635		$ 6,657

JOINT VENTURE, TECHNOLOGY LIC34

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015	Jan. 18, 2016	Nov. 01, 2015
Variable Interest Entity [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 reassessment in the current quarter, 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.
Cost of sales	$ 94,520	$ 95,321
Research and development expenses	5,700	4,681
Amount receivable from Micron Technology, Inc.	99,936			$ 110,056
MP Mask [Member]
Variable Interest Entity [Line Items]
Cost of sales	2,200	1,300
Research and development expenses	200	200
Amount owed to MP Mask	5,600			4,300
Maximum exposure to loss from investment in VIE	92,900			93,000
Income (loss) from variable interest entity	$ (100)	$ 0
Valuation date of net book value of equity method investment	Jan. 18, 2016
Approximate net book value of equity method investment			$ 93,000
Co-venturer [Member]
Variable Interest Entity [Line Items]
Amount receivable from Micron Technology, Inc.	$ 6,900			$ 6,400
License agreement term subject to mutually agreeable renewals	1 year

LONG-TERM BORROWINGS (Details)

LONG-TERM BORROWINGS (Details)	1 Months Ended		3 Months Ended
	Jan. 31, 2015USD ($)shares$ / shares	Mar. 31, 2011USD ($)shares$ / shares	Jan. 31, 2016USD ($)	Nov. 01, 2015USD ($)
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 130,179,000	$ 132,615,000
Less current portion			63,955,000	65,495,000
Long-term debt and capital lease obligations non current			$ 66,224,000	67,120,000
Credit Facility [Member]
Long-term borrowings [Abstract]
Maturity date of debt			Dec. 31, 2018
Current borrowing capacity			$ 50,000,000
Maximum borrowing capacity			75,000,000
Amount outstanding under credit facility			0
Available borrowing capacity			$ 50,000,000
Interest rate			1.73%
3.25% convertible senior notes due on April 1, 2016 [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 57,500,000	57,500,000
Interest rate percentage			3.25%
Maturity date of debt			Apr. 1, 2016
Number of shares each note is convertible to (in shares) | shares		96
Face amount of each note converted		$ 1,000
Conversion price per share (in dollars per share) | $ / shares		$ 10.37
3.25 convertible senior notes due on April 2019 [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 57,500,000	57,500,000
Interest rate percentage			3.25%
Maturity date of debt			Apr. 1, 2019
Number of shares each note is convertible to (in shares) | shares	96
Face amount of each note converted	$ 1,000
Conversion price per share (in dollars per share) | $ / shares	$ 10.37
2.77% capital lease obligation payable through July 2018 [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 14,040,000	15,346,000
Interest rate percentage			2.77%
Maturity date of debt			Jul. 31, 2018
Original face amount of debt			$ 26,400,000
Repayment period of debt			5 years
Periodic payments			$ 500,000
Frequency of periodic payment			per month
Amount payable through the end of lease term			$ 14,500,000
Interest included in lease payments			500,000
3.09% capital lease obligation payable through March 2016 [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 1,139,000	$ 2,269,000
Interest rate percentage			3.09%
Maturity date of debt			Mar. 30, 2016
Original face amount of debt			$ 21,200,000
Repayment period of debt			5 years
Periodic payments			$ 400,000
Frequency of periodic payment			per month
Amount payable through the end of lease term			$ 1,100,000

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015	Nov. 03, 2013
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	$ 900	$ 900
Cash received from option exercises	2,000	700
Share-based compensation cost capitalized	0	0
Income tax benefits realized from stock option exercises	$ 0	$ 0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term	10 years
Period for recognition of compensation cost not yet recognized	2 years 10 months 24 days
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Volatility	49.90%	55.10%
Risk free rate of return	1.70%	1.60%
Dividend yield	0.00%	0.00%
Expected term	5 years 1 month 6 days	4 years 8 months 12 days
Outstanding and exercisable option awards [Abstract]
Outstanding at end of period (in shares)	4,013,635
Exercisable at end of period (in shares)	2,460,810
Share options granted (in shares)	579,250	302,000
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, Outstanding at end of period (in dollar per share)	$ 8.17
Weighted average exercise price, Exercisable at end of period (in dollar per share)	$ 7.26
Stock options, additional disclosures [Abstract]
Weighted average remaining contractual life, Outstanding at end of period	6 years 4 months 24 days
Weighted average remaining contractual life, Exercisable at end of period	4 years 10 months 24 days
Aggregate intrinsic value, Outstanding at end of period	$ 16,900
Aggregate intrinsic value, Exercisable at end of period	$ 13,172
Weighted-average grant date fair value of options granted (in dollar per share)	$ 4.66	$ 3.88
Unrecognized compensation cost related to unvested option awards	$ 5,900
Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition of compensation cost not yet recognized	2 years 3 months 18 days
Restricted Stock [Abstract]
Restricted stock awards granted (in shares)	115,225	111,334
Weighted average grant date fair value of restricted stock awards (in dollar per share)	$ 12.13	$ 8.23
Compensation cost not yet recognized related to unvested restricted stock awards	$ 2,000
Number of shares of restricted stock outstanding (in shares)	209,875
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015	Nov. 01, 2015
INCOME TAXES [Abstract]
U.S. statutory rate	35.00%	35.00%
Unrecognized tax benefits	$ 4.1		$ 4.1
Accrued interest and penalties related to unrecognized tax benefits	$ 0.1		$ 0.1
Foreign Tax Authority [Member] | PKLT [Member]
Income Tax Holiday [Line Items]
Income tax holiday termination date	October 31, 2017
Dollar effect of income tax holiday	$ 0	$ 0
Per share effect of income tax holiday (dollars per share)	$ 0	$ 0
Foreign Tax Authority [Member] | PDMC [Member]
Income Tax Holiday [Line Items]
Income tax holiday termination date	October 31, 2019
Dollar effect of income tax holiday	$ 0.1	$ 0.1
Per share effect of income tax holiday (dollars per share)	$ 0	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
Calculation of basic and diluted earnings per share [Abstract]
Net income attributable to Photronics, Inc. shareholders	$ 21,002	$ 3,837
Effect of dilutive securities [Abstract]
Interest expense on convertible notes, net of tax	1,071	0
Earnings for diluted earnings per share	$ 22,073	$ 3,837
Weighted-average common shares computations [Abstract]
Weighted-average common shares used for basic earnings per share (in shares)	66,807	66,066
Effect of dilutive securities [Abstract]
Convertible notes (in shares)	11,084	0
Share-based payment awards (in shares)	1,245	954
Potentially dilutive common shares (in shares)	12,329	954
Weighted-average common shares used for diluted earnings per share (in shares)	79,136	67,020
Basic earnings per share (in dollars per share)	$ 0.31	$ 0.06
Diluted earnings per share (in dollars per share)	$ 0.28	$ 0.06
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	668	12,672
Share-Based Payment Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	668	1,587
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	0	11,085

CHANGES IN ACCUMULATED OTHER 39

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]
Other comprehensive income, tax	$ 0	$ 0
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(10,573)	21,774
Other comprehensive income (loss) before reclassifications	(21,076)	(20,074)
Amounts reclassified from other comprehensive income	32	32
Net current period other comprehensive income (loss)	(21,044)	(20,042)
Less: other comprehensive (income) loss attributable to noncontrolling interests	3,612	3,863
Ending Balance	(28,005)	5,595
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(9,634)	22,651
Other comprehensive income (loss) before reclassifications	(21,115)	(20,106)
Amounts reclassified from other comprehensive income	0	0
Net current period other comprehensive income (loss)	(21,115)	(20,106)
Less: other comprehensive (income) loss attributable to noncontrolling interests	3,631	3,879
Ending Balance	(27,118)	6,424
Amortization of Cash Flows Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(306)	(434)
Other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from other comprehensive income	32	32
Net current period other comprehensive income (loss)	32	32
Less: other comprehensive (income) loss attributable to noncontrolling interests	0	0
Ending Balance	(274)	(402)
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(633)	(443)
Other comprehensive income (loss) before reclassifications	39	32
Amounts reclassified from other comprehensive income	0	0
Net current period other comprehensive income (loss)	39	32
Less: other comprehensive (income) loss attributable to noncontrolling interests	(19)	(16)
Ending Balance	$ (613)	$ (427)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jan. 31, 2016	Nov. 01, 2015
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 due 2016 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	67,183	60,375
Fair Value [Member] | 3.25% convertible senior notes due 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	73,163	64,550
Carrying Value [Member] | 3.25% convertible senior notes due 2016 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	57,500	57,500
Carrying Value [Member] | 3.25% convertible senior notes due 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	$ 57,500	$ 57,500

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jan. 31, 2016USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Outstanding commitments for capital expenditure	$ 9

GAIN ON SALE OF INVESTMENT (Det

GAIN ON SALE OF INVESTMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2016	Feb. 01, 2015
GAIN ON SALE OF INVESTMENT [Abstract]
Gain on Sale of Investment	$ 8,785	$ 0