Photronics (PLAB) 10-Q 2 Sep 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jul. 31, 2016	Aug. 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		68,186,790
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jul. 31, 2016	Nov. 01, 2015
Current assets:
Cash and cash equivalents	$ 291,669	$ 205,867
Accounts receivable, net of allowance of $3,281 in 2016 and $3,301 in 2015	107,494	110,056
Inventories	24,615	24,157
Other current assets	17,643	24,034
Total current assets	441,421	364,114
Property, plant and equipment, net	522,192	547,284
Investment in joint venture	0	93,021
Intangible assets, net	20,950	24,616
Deferred income taxes	11,961	11,908
Other assets	3,919	4,612
Total assets	1,000,443	1,045,555
Current liabilities:
Current portion of long-term borrowings	5,846	65,495
Accounts payable	62,987	87,983
Accrued liabilities	28,223	39,214
Total current liabilities	97,056	192,692
Long-term borrowings	63,054	67,120
Other liabilities	20,952	23,677
Total liabilities	181,062	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, 67,968 shares issued and outstanding at July 31, 2016 and 66,602 shares issued and outstanding at November 1, 2015	680	666
Additional paid-in capital	539,562	526,402
Retained earnings	171,004	130,060
Accumulated other comprehensive loss	(4,936)	(10,573)
Total Photronics, Inc. shareholders' equity	706,310	646,555
Noncontrolling interests	113,071	115,511
Total equity	819,381	762,066
Total liabilities and equity	$ 1,000,443	$ 1,045,555

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2016	Nov. 01, 2015
Current assets:
Accounts receivable, allowance	$ 3,281	$ 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)	67,968	66,602
Common stock, shares outstanding (in shares)	67,968	66,602

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Condensed Consolidated Statements of Income (unaudited) [Abstract]
Net sales	$ 123,209	$ 131,699	$ 376,088	$ 382,513
Cost and expenses:
Cost of sales	(91,759)	(94,456)	(277,915)	(283,991)
Selling, general and administrative	(11,163)	(12,430)	(34,386)	(36,795)
Research and development	(5,466)	(6,253)	(16,613)	(16,743)
Operating income	14,821	18,560	47,174	44,984
Other income (expense):
Gains on sales of investments	157	0	8,940	0
Interest expense	(612)	(1,209)	(2,750)	(3,812)
Interest and other income (expense), net	1,849	1,449	1,878	1,312
Income before income tax provision	16,215	18,800	55,242	42,484
Income tax provision	(4,762)	(3,390)	(6,136)	(7,775)
Net income	11,453	15,410	49,106	34,709
Net income attributable to noncontrolling interests	(3,365)	(3,304)	(8,162)	(8,706)
Net income attributable to Photronics, Inc. shareholders	$ 8,088	$ 12,106	$ 40,944	$ 26,003
Earnings per share:
Basic (in dollars per share)	$ 0.12	$ 0.18	$ 0.61	$ 0.39
Diluted (in dollars per share)	$ 0.12	$ 0.17	$ 0.56	$ 0.37
Weighted-average number of common shares outstanding:
Basic (in shares)	67,953	66,454	67,377	66,250
Diluted (in shares)	74,317	78,569	76,990	78,300

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract]
Net income	$ 11,453	$ 15,410	$ 49,106	$ 34,709
Other comprehensive income (loss), net of tax of $0:
Foreign currency translation adjustments	5,051	(25,326)	7,787	(32,894)
Amortization of cash flow hedge	32	32	96	96
Total other comprehensive income (loss)	5,083	(25,294)	7,883	(32,798)
Comprehensive income (loss)	16,536	(9,884)	56,989	1,911
Less: comprehensive income attributable to noncontrolling interests	4,538	1,105	10,408	5,939
Comprehensive income (loss) attributable to Photronics, Inc. shareholders	$ 11,998	$ (10,989)	$ 46,581	$ (4,028)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract]
Other comprehensive income (loss), tax	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015
Cash flows from operating activities:
Net income	$ 49,106	$ 34,709
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	60,471	61,465
Gains on sales of investments	(8,940)	0
Changes in assets and liabilities:
Accounts receivable	3,936	(13,744)
Inventories	(204)	(1,814)
Other current assets	9,177	1,496
Accounts payable, accrued liabilities and other	(22,159)	9,715
Net cash provided by operating activities	91,387	91,827
Cash flows from investing activities:
Purchases of property, plant and equipment	(44,828)	(80,107)
Proceeds from sales of investments	101,853	0
Other	584	(283)
Net cash provided by (used in) investing activities	57,609	(80,390)
Cash flows from financing activities:
Repayments of long-term borrowings	(56,276)	(7,152)
Proceeds from share-based arrangements	3,172	2,375
Dividends paid to noncontrolling interests	(11,890)	0
Other	(19)	(171)
Net cash used in financing activities	(65,013)	(4,948)
Effect of exchange rate changes on cash and cash equivalents	1,819	(7,856)
Net increase (decrease) in cash and cash equivalents	85,802	(1,367)
Cash and cash equivalents at beginning of period	205,867	192,929
Cash and cash equivalents at end of period	291,669	191,562
Supplemental disclosure of noncash information:
Accrual for property, plant and equipment purchased during the period	$ 7,169	$ 40,632

BASIS OF FINANCIAL STATEMENT PR

BASIS OF FINANCIAL STATEMENT PRESENTATION	9 Months Ended
	Jul. 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. In August 2016 the Company announced its plans to build a research and development and manufacturing facility in Xiamen, China, with construction commencing in 2017 and production estimated to start in late 2018. See Note 14 for additional information. 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, adjustments, all of which are of a normal recurring nature, 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	9 Months Ended
	Jul. 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 and nine month periods ended July 31, 2016 and August 2, 2015: Three Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Earnings Comprehensive controlling Total Balance at May 1, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772 Net income - - - 8,088 - 3,365 11,453 Other comprehensive income - - - - 3,910 1,173 5,083 Sale of common stock through employee stock option and purchase plans 7 - 53 - - - 53 Restricted stock awards vesting and expense 18 1 313 - - - 314 Share-based compensation expense - - 661 - - - 661 Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381 Three Months Ended August 2, 2015 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Comprehensive controlling Total Balance at May 3, 2015 66,298 $ 663 $ 522,873 $ 99,332 $ 14,838 $ 116,277 $ 753,983 Net income - - - 12,106 - 3,304 15,410 Other comprehensive loss - - - - (23,094 ) (2,200 ) (25,294 ) Sale of common stock through employee stock option and purchase plans 194 2 1,076 - - - 1,078 Restricted stock awards vesting and expense 15 - 268 - - - 268 Share-based compensation expense - - 680 - - - 680 Purchase of common stock of subsidiary - - 27 - - (105 ) (78 ) Balance at August 2, 2015 66,507 $ 665 $ 524,924 $ 111,438 $ (8,256 ) $ 117,276 $ 746,047 Nine Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Comprehensive controlling Total Balance at November 1, 2015 66,602 $ 666 $ 526,402 $ 130,060 $ (10,573 ) $ 115,511 $ 762,066 Net income - - - 40,944 - 8,162 49,106 Other comprehensive income - - - - 5,637 2,246 7,883 Sale of common stock through employee stock option and purchase plans 521 5 2,890 - - - 2,895 Restricted stock awards vesting and expense 128 2 876 - - - 878 Share-based compensation expense - - 1,971 - - - 1,971 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend - - - - - (11,901 ) (11,901 ) Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381 Nine Months Ended August 2, 2015 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Comprehensive controlling Total Balance at November 2, 2014 65,930 $ 659 $ 520,183 $ 85,435 $ 21,774 $ 111,443 $ 739,494 Net income - - - 26,003 - 8,706 34,709 Other comprehensive loss - - - - (30,030 ) (2,768 ) (32,798 ) Sale of common stock through employee stock option and purchase plans 433 4 1,932 - - - 1,936 Restricted stock awards vesting and expense 144 2 800 - - - 802 Share-based compensation expense - - 1,982 - - - 1,982 Purchase of common stock of subsidiary - - 27 - - (105 ) (78 ) Balance at August 2, 2015 66,507 $ 665 $ 524,924 $ 111,438 $ (8,256 ) $ 117,276 $ 746,047

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Jul. 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: July 31, 2016 November 1, 2015 Land $ 8,096 $ 8,172 Buildings and improvements 122,077 121,472 Machinery and equipment 1,481,252 1,458,623 Leasehold improvements 19,079 18,856 Furniture, fixtures and office equipment 12,879 12,700 Construction in progress 18,903 6,657 1,662,286 1,626,480 Less accumulated depreciation and amortization 1,140,094 1,079,196 $ 522,192 $ 547,284 Equipment under capital leases are included in above property, plant and equipment as follows: July 31, 2016 November 1, 2015 Machinery and equipment $ 34,917 $ 56,245 Less accumulated amortization 9,479 16,054 $ 25,438 $ 40,191 Depreciation 18.4

JOINT VENTURE, TECHNOLOGY LICEN

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC	9 Months Ended
	Jul. 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 developed and produced 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 was a variable interest entity ("VIE") (as that term is defined in the ASC) because all costs of the joint venture were passed on to the Company and Micron through purchase agreements they had entered into with the joint venture, and it was dependent upon the Company and Micron for any additional cash requirements. On a quarterly basis the Company reassessed whether its interest in MP Mask gave it a controlling financial interest in this VIE. The purpose of this quarterly reassessment was 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 was still the primary beneficiary of the VIE, by virtue of its tie-breaking voting rights within MP Mask’s Board of Managers, thereby having given it the power to direct the activities of MP Mask that most significantly impacted 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 utilized MP Mask for both high-end IC photomask production and research and development purposes. MP Mask charged its variable interest holders based on their actual usage of its facility. MP Mask separately charged for any research and development activities it engaged in at the requests of its owners. The Company incurred cost of sales from MP Mask of $0.8 and $5.7 million in the three month and nine month periods ended July 31, 2016, respectively, and $1.5 million and $4.9 million during the respective prior year periods. The Company incurred research and development costs from MP Mask of $0.2 million during the three month period ended August 2, 2015, and $0.5 million and $0.7 million during the nine month periods ended July 31, 2016 and August 2, 2015, respectively. At November 1, 2015, the Company owed MP Mask $4.3 million and had a receivable from Micron of $6.4 million, both primarily related to the aforementioned supply agreements. MP Mask was 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, had held majority voting power on its Board of Managers. The voting power held by each party was subject to change as ownership interests changed. Under the MP Mask joint venture operating agreement, the Company may have been required to make additional capital contributions to MP Mask up to the maximum amount defined in the operating agreement. However, had the Board of Managers determined that further additional funding was required, MP Mask would have pursued its own financing. If MP Mask was unable to obtain its own financing, it may have requested additional capital contributions from the Company. Had the Company chosen not to make a requested contribution to MP Mask, its ownership percentage may have been reduced. The Company's investment in the VIE, which represented its maximum exposure to loss, was $93.0 million at November 1, 2015. This amount is reported in the Company's condensed consolidated balance sheets as "Investment in joint venture." The Company recorded losses from its investment in the VIE of $0.1 million in the nine month periods ended July 31, 2016 and August 2, 2015. On May 5, 2016, the Company sold its investment in MP Mask to Micron for $93.1 million and recorded a gain on the sale of $0.2 million, which is included in the Company’s 2016 condensed consolidated statement of income in Interest and other income (expense) net. On that same date a supply agreement commenced between the Company and Micron, which provides that the Company will be the majority outsourced supplier of Micron’s photomasks and related services. The supply agreement has a one year term, subject to mutually agreeable renewals. In addition, the Company forevermore has the rights to use technology under the prior technology license agreement.

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS	9 Months Ended
	Jul. 31, 2016
LONG-TERM BORROWINGS [Abstract]
LONG-TERM BORROWINGS	NOTE 5 - LONG-TERM BORROWINGS Long-term borrowings consist of the following: July 31, 2016 November 1, 2015 3.25% convertible senior notes due in April 2019 $ 57,500 $ 57,500 3.25% convertible senior notes due in April 2016 - 57,500 2.77% capital lease obligation payable through July 2018 11,400 15,346 3.09% capital lease obligation payable through March 2016 - 2,269 68,900 132,615 Less current portion 5,846 65,495 $ 63,054 $ 67,120 In April 2016 $57.5 million of the Company’s senior convertible notes matured. The Company repaid $50.1 million to noteholders and issued approximately 0.7 million shares to noteholders that elected to convert their notes to common stock. The notes were exchanged at the rate of approximately 96 shares per $1,000 note principle, equivalent to a conversion rate of $10.37 per share. 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. Noteholders 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 July 31, 2016. The Company had no outstanding borrowings against the credit facility at July 31, 2016, and $50 million was available for borrowing. The interest rate on the credit facility (1.73% at July 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 July 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 bore interest at 3.09%, were $0.4 million per month through March 2016. The lease agreement provided that the Company must maintain the equipment in good working order, and included a cross default with cross acceleration provision related to certain non-financial covenants incorporated in the Company's credit facility agreement. In March 2016 the Company paid the final installment on this lease and assumed ownership of the related equipment.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Jul. 31, 2016
SHARE-BASED COMPENSATION [Abstract]
SHARE-BASED COMPENSATION	NOTE 6 - SHARE-BASED COMPENSATION In March 2016 shareholders approved a new equity incentive compensation plan (“the Plan”), under which incentive stock options, non-qualified stock options, stock grants, stock-based awards, restricted stock, restricted stock units, stock appreciation rights, performance units, performance stock and other stock or cash awards may be granted. Shares to be issued under the Plan may be authorized and unissued shares, issued shares that have been reacquired by the Company (in the open-market or in private transactions) and that are being held in treasury, or a combination thereof. The maximum number of shares of common stock approved that may be issued under the Plan is four million shares. 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. Total share-based compensation costs for the three and nine month periods ended July 31, 2016, were $1.0 million and $2.8 million, respectively, and $0.9 million and $2.8 million for the three and nine month periods ended August 2, 2015, respectively. The Company received cash from option exercises of $0.1 million and $2.9 million for the three and nine month periods ended July 31, 2016, respectively, and $1.1 million and $2.1 million for the three and nine month periods ended August 2, 2015, respectively. No share-based compensation cost was capitalized as part of an asset and no related income tax benefits were recorded during the periods 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 equal to 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 and nine month periods ended July 31, 2016 and August 2, 2015, are presented in the following table. Three Months Ended Nine Months Ended July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015 Volatility 38.9% 42.9% 48.8% 53.9% Risk free rate of return 1.2% 1.4% – 1.6% 1.2%-1.7% 1.3% - 1.6% Dividend yield 0.0% 0.0% 0.0% 0.0% Expected term 5.1 years 4.7 years 5.1 years 4.7 years Information on outstanding and exercisable option awards as of July 31, 2016, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at July 31, 2016 3,575,610 $ 7.52 6.5 years $ 9,210 Exercisable at July 31, 2016 2,027,160 $ 5.87 5.0 years $ 7,807 There were 45,000 share options granted during the three month period ended July 31, 2016, with a weighted-average grant date fair value of $3.44 per share and 63,000 share options granted during the three month period ended August 2, 2015, with a weighted-average grant date fair value of $3.46 per share. There were 647,250 share options granted during the nine month period ended July 31, 2016, with a weighted-average grant date fair value of $4.55 per share and 667,800 share options granted during the nine month period ended August 2, 2015, with a weighted-average grant date fair value of $3.82 per share. As of July 31, 2016, the total unrecognized compensation cost related to unvested option awards was approximately $4.8 million. That cost is expected to be recognized over a weighted-average amortization period of 2.6 years. Restricted Stock The Company periodically grants restricted stock awards. The restrictions on these awards lapse over a service period that has ranged from less-than-one to four years. No restricted stock awards were granted during the three month period ended July 31, 2016, and 115,225 restricted stock awards were issued during the nine month period ended July 31, 2016, with a weighted average grant date fair value of $12.13 per share. Awards totaling 10,000 shares of restricted stock were granted during the three month period ended August 2, 2015, with a weighted-average grant date fair value of $8.84 per share, and 121,334 restricted stock awards were issued during the nine month period ended August 2, 2015, with a weighted-average grant date fair value of $8.28 per share. As of July 31, 2016, the total compensation cost not yet recognized related to unvested restricted stock awards was approximately $1.3 million. That cost is expected to be recognized over a weighted-average amortization period of 2.1 years. As of July 31, 2016, there were 177,375 shares of restricted stock outstanding.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jul. 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 and nine month periods ended July 31, 2016 and August 2, 2015, primarily due to earnings being taxed at lower statutory rates in foreign jurisdictions, combined with the realization of certain tax benefits (as further noted below) in a foreign jurisdiction and the benefit of various investment credits in a foreign jurisdiction. Valuation allowances in jurisdictions with historic losses eliminated the effective rate impact of these jurisdictions. As of July 31, 2016 and August 2, 2015, the Company determined that deferred tax assets of $2.5 million and $1.7 million, respectively, including $0.2 million within the three month period ended August 2, 2015, whose realization was previously not considered to be more likely than not, are realizable and, therefore, reduced their related valuation allowances. During the nine month period ended July 31, 2016, the Company realized a $2.4 million benefit, which resulted from the reversal of a previously recorded undistributed earnings tax liability in a foreign jurisdiction. As a result of a shareholder action to approve a dividend in this jurisdiction, the Company determined that it is no longer liable for this tax. In addition, during the nine month period ended July 31, 2016, $0.7 million of withholding tax was incurred upon the completion of a foreign subsidiary share redemption which commenced in fiscal year 2015. Unrecognized tax benefits related to uncertain tax positions were $4.8 million at July 31, 2016, and $4.1 million 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 July 31, 2016 and November 1, 2015. As of July 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 and nine month periods ended July 31, 2016 and August 2, 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 tax benefits from this tax holiday of $0.1 million in the three month periods ended July 31, 2016 and August 2, 2015, and $0.3 million and $0.2 million in the respective nine month periods. The tax holiday had no per share effect in the three and nine month periods ended July 31, 2016 and August 2, 2015.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Jul. 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 Nine Months Ended July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015 Net income attributable to Photronics, Inc. shareholders $ 8,088 $ 12,106 $ 40,944 $ 26,003 Effect of dilutive securities: Interest expense on convertible notes, net of related tax effects 496 1,071 2,442 3,292 Earnings for diluted earnings per share $ 8,584 $ 13,177 $ 43,386 $ 29,295 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 67,953 66,454 67,377 66,250 Effect of dilutive securities: Convertible notes 5,542 11,085 8,607 11,085 Share-based payment awards 822 1,030 1,006 965 Potentially dilutive common shares 6,364 12,115 9,613 12,050 Weighted-average common shares used for diluted earnings per share 74,317 78,569 76,990 78,300 Basic earnings per share $ 0.12 $ 0.18 $ 0.61 $ 0.39 Diluted earnings per share $ 0.12 $ 0.17 $ 0.56 $ 0.37 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. Three Months Ended Nine Months Ended July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015 Share-based payment awards 2,016 1,667 1,615 1,636 Total potentially dilutive shares excluded 2,016 1,667 1,615 1,636

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	9 Months Ended
	Jul. 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 and nine month periods ended July 31, 2016 and August 2, 2015: Three Months Ended July 31, 2016 Foreign Currency Amortization Other Total Balance at May 1, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 ) Other comprehensive income (loss) before reclassifications 5,064 - (13 ) 5,051 Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 5,064 32 (13 ) 5,083 Less: other comprehensive (income) loss attributable to noncontrolling interests (1,180 ) - 7 (1,173 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 ) Three Months Ended August 2, 2015 Foreign Currency Amortization Other Total Balance at May 3, 2015 $ 15,648 $ (370 ) $ (440 ) $ 14,838 Other comprehensive income (loss) before reclassifications (25,342 ) - 16 (25,326 ) Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) (25,342 ) 32 16 (25,294 ) Less: other comprehensive income (loss) attributable to noncontrolling interests 2,208 - (8 ) 2,200 Balance at August 2, 2015 $ (7,486 ) $ (338 ) $ (432 ) $ (8,256 ) Nine Months Ended July 31, 2016 Foreign Currency Amortization Other Total Balance at November 1, 2015 $ (9,634 ) $ (306 ) $ (633 ) $ (10,573 ) Other comprehensive income (loss) before reclassifications 7,810 - (23 ) 7,787 Amounts reclassified from other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) 7,810 96 (23 ) 7,883 Less: other comprehensive (income) loss attributable to noncontrolling interests (2,258 ) - 12 (2,246 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 ) Nine Months Ended August 2, 2015 Foreign Currency Amortization Other Total Balance at November 2, 2014 $ 22,651 $ (434 ) $ (443 ) $ 21,774 Other comprehensive income (loss) before reclassifications (32,915 ) - 21 (32,894 ) Amounts reclassified from other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) (32,915 ) 96 21 (32,798 ) Less: other comprehensive income (loss) attributable to noncontrolling interests 2,778 - (10 ) 2,768 Balance at August 2, 2015 $ (7,486 ) $ (338 ) $ (432 ) $ (8,256 ) The amortization of the cash flow hedge is included in cost of sales in the condensed consolidated statements of income for all periods presented.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Jul. 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 prices (unadjusted) 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 July 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 July 31, 2016 and November 1, 2015. July 31, 2016 November 1, 2015 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 67,701 $ 57,500 $ 64,550 $ 57,500 3.25% convertible senior notes due 2016 $ - $ - $ 60,375 $ 57,500

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jul. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 - COMMITMENTS AND CONTINGENCIES As of July 31, 2016, the Company had commitments outstanding for capital expenditures of approximately $51 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. Please see Note 14 for a discussion of the Company’s announced expansion into China.

GAINS ON SALES OF INVESTMENTS

GAINS ON SALES OF INVESTMENTS	9 Months Ended
	Jul. 31, 2016
GAINS ON SALES OF INVESTMENTS [Abstract]
GAINS ON SALES OF INVESTMENTS	NOTE 12 – GAINS ON SALES OF INVESTMENTS In the first quarter of fiscal 2016 the Company sold a minority interest it held in a foreign entity, which resulted in it recognizing a gain of $8.8 million. As discussed in Note 4, in the third quarter of fiscal year 2016 we sold our investment in the MP Mask joint venture.

SUBSIDIARY DIVIDEND

SUBSIDIARY DIVIDEND	9 Months Ended
	Jul. 31, 2016
SUBSIDIARY DIVIDEND [Abstract]
SUBSIDIARY DIVIDEND	NOTE 13 – SUBSIDIARY DIVIDEND In June 2016 PDMC, the Company’s majority owned IC facility in Taiwan, paid a dividend of which 49.99%, or approximately $11.9 million, was paid to its noncontrolling interest.

EXPANSION INTO CHINA

EXPANSION INTO CHINA	9 Months Ended
	Jul. 31, 2016
EXPANSION INTO CHINA [Abstract]
EXPANSION INTO CHINA	NOTE 14 – EXPANSION INTO CHINA In August 2016 the Company announced that it had signed an investment agreement with the Xiamen Torch Hi-Tech Industrial Development Zone (Xiamen Torch) to establish an IC manufacturing facility in Xiamen, China. Under the terms of the agreement the Company will build and operate a state-of-the-art IC manufacturing and research and development facility, in return for which Xiamen Torch will provide certain investment incentives and support. The Company plans to invest $160 million over the next five years, with construction commencing in 2017 and production estimated to start in late 2018. The investment will be in the form of cash, transferred capital equipment and, possibly, local financing. Support for the project has been obtained from an existing customer.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Jul. 31, 2016
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 15 - RECENT ACCOUNTING PRONOUNCEMENTS In March 2016 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016 – 09 “Improvements to Employee Share-Based Payment Accounting”, which simplifies the accounting for share-based payment transactions including their income tax consequences, classification as either equity or liability awards, classification on the statement of cash flows, and other areas. The method of adoption varies with the different aspects of the Update. The Update is effective for the Company in its first quarter of fiscal year 2018, with early application permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In February 2016 the FASB issued ASU 2016 – 02 “Leases (Topic 842)”, which requires lessees to recognize right-of-use assets and corresponding liabilities for all leases with an initial term in excess of twelve months. The Update is to be adopted using a modified retrospective approach, which includes a number of practical expedients, that require leases to be measured and recognized under the new guidance at the beginning of the earliest period presented. The ASU is effective for the Company in its first quarter of fiscal year 2020, with early application permitted, and the Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In January 2016 the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities”, which provides targeted improvements to the recognition, measurement, presentation and disclosure of financial assets and financial liabilities. Specific accounting areas addressed include, equity investments, financial liabilities reported under the fair value option and valuation allowance assessment resulting from unrealized losses on available-for-sale securities. The ASU also changes certain presentation and disclosure requirements for financial instruments. The Update is to be applied by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This ASU is effective for the Company in its first quarter of fiscal year 2019. Early adoption, with certain exceptions, is not permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In November 2015 the FASB issued 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 year 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 year 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 year 2019. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. In April 2016 the FASB issued ASU 2016-10 “Identifying Performance Obligations and Licensing” which amends guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 are the same as those for ASU 2014-09. The Company is evaluating the transition method that will be elected and the potential effects of the adoption of these Updates on its consolidated financial statements.

SHARE-BASED COMPENSATION (Polic

SHARE-BASED COMPENSATION (Policies)	9 Months Ended
	Jul. 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 equal to 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)	9 Months Ended
	Jul. 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 prices (unadjusted) 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 PRONOUNCEME25

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Jul. 31, 2016
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Recent Accounting Pronouncements	In March 2016 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016 – 09 “Improvements to Employee Share-Based Payment Accounting”, which simplifies the accounting for share-based payment transactions including their income tax consequences, classification as either equity or liability awards, classification on the statement of cash flows, and other areas. The method of adoption varies with the different aspects of the Update. The Update is effective for the Company in its first quarter of fiscal year 2018, with early application permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In February 2016 the FASB issued ASU 2016 – 02 “Leases (Topic 842)”, which requires lessees to recognize right-of-use assets and corresponding liabilities for all leases with an initial term in excess of twelve months. The Update is to be adopted using a modified retrospective approach, which includes a number of practical expedients, that require leases to be measured and recognized under the new guidance at the beginning of the earliest period presented. The ASU is effective for the Company in its first quarter of fiscal year 2020, with early application permitted, and the Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In January 2016 the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities”, which provides targeted improvements to the recognition, measurement, presentation and disclosure of financial assets and financial liabilities. Specific accounting areas addressed include, equity investments, financial liabilities reported under the fair value option and valuation allowance assessment resulting from unrealized losses on available-for-sale securities. The ASU also changes certain presentation and disclosure requirements for financial instruments. The Update is to be applied by means of a cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This ASU is effective for the Company in its first quarter of fiscal year 2019. Early adoption, with certain exceptions, is not permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In November 2015 the FASB issued 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 year 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 year 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 year 2019. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. In April 2016 the FASB issued ASU 2016-10 “Identifying Performance Obligations and Licensing” which amends guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 are the same as those for ASU 2014-09. The Company is evaluating the transition method that will be elected and the potential effects of the adoption of these Updates on its consolidated financial statements.

CHANGES IN EQUITY (Tables)

CHANGES IN EQUITY (Tables)	9 Months Ended
	Jul. 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 and nine month periods ended July 31, 2016 and August 2, 2015: Three Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Earnings Comprehensive controlling Total Balance at May 1, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772 Net income - - - 8,088 - 3,365 11,453 Other comprehensive income - - - - 3,910 1,173 5,083 Sale of common stock through employee stock option and purchase plans 7 - 53 - - - 53 Restricted stock awards vesting and expense 18 1 313 - - - 314 Share-based compensation expense - - 661 - - - 661 Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381 Three Months Ended August 2, 2015 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Comprehensive controlling Total Balance at May 3, 2015 66,298 $ 663 $ 522,873 $ 99,332 $ 14,838 $ 116,277 $ 753,983 Net income - - - 12,106 - 3,304 15,410 Other comprehensive loss - - - - (23,094 ) (2,200 ) (25,294 ) Sale of common stock through employee stock option and purchase plans 194 2 1,076 - - - 1,078 Restricted stock awards vesting and expense 15 - 268 - - - 268 Share-based compensation expense - - 680 - - - 680 Purchase of common stock of subsidiary - - 27 - - (105 ) (78 ) Balance at August 2, 2015 66,507 $ 665 $ 524,924 $ 111,438 $ (8,256 ) $ 117,276 $ 746,047 Nine Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Comprehensive controlling Total Balance at November 1, 2015 66,602 $ 666 $ 526,402 $ 130,060 $ (10,573 ) $ 115,511 $ 762,066 Net income - - - 40,944 - 8,162 49,106 Other comprehensive income - - - - 5,637 2,246 7,883 Sale of common stock through employee stock option and purchase plans 521 5 2,890 - - - 2,895 Restricted stock awards vesting and expense 128 2 876 - - - 878 Share-based compensation expense - - 1,971 - - - 1,971 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend - - - - - (11,901 ) (11,901 ) Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381 Nine Months Ended August 2, 2015 Photronics, Inc. Shareholders Common Stock Additional Accumulated Non- Shares Amount Paid-in Retained Comprehensive controlling Total Balance at November 2, 2014 65,930 $ 659 $ 520,183 $ 85,435 $ 21,774 $ 111,443 $ 739,494 Net income - - - 26,003 - 8,706 34,709 Other comprehensive loss - - - - (30,030 ) (2,768 ) (32,798 ) Sale of common stock through employee stock option and purchase plans 433 4 1,932 - - - 1,936 Restricted stock awards vesting and expense 144 2 800 - - - 802 Share-based compensation expense - - 1,982 - - - 1,982 Purchase of common stock of subsidiary - - 27 - - (105 ) (78 ) Balance at August 2, 2015 66,507 $ 665 $ 524,924 $ 111,438 $ (8,256 ) $ 117,276 $ 746,047

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Jul. 31, 2016
PROPERTY, PLANT AND EQUIPMENT [Abstract]
Property, plant and equipment	Property, plant and equipment consists of the following: July 31, 2016 November 1, 2015 Land $ 8,096 $ 8,172 Buildings and improvements 122,077 121,472 Machinery and equipment 1,481,252 1,458,623 Leasehold improvements 19,079 18,856 Furniture, fixtures and office equipment 12,879 12,700 Construction in progress 18,903 6,657 1,662,286 1,626,480 Less accumulated depreciation and amortization 1,140,094 1,079,196 $ 522,192 $ 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: July 31, 2016 November 1, 2015 Machinery and equipment $ 34,917 $ 56,245 Less accumulated amortization 9,479 16,054 $ 25,438 $ 40,191

LONG-TERM BORROWINGS (Tables)

LONG-TERM BORROWINGS (Tables)	9 Months Ended
	Jul. 31, 2016
LONG-TERM BORROWINGS [Abstract]
Long-term borrowings	Long-term borrowings consist of the following: July 31, 2016 November 1, 2015 3.25% convertible senior notes due in April 2019 $ 57,500 $ 57,500 3.25% convertible senior notes due in April 2016 - 57,500 2.77% capital lease obligation payable through July 2018 11,400 15,346 3.09% capital lease obligation payable through March 2016 - 2,269 68,900 132,615 Less current portion 5,846 65,495 $ 63,054 $ 67,120

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Jul. 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 and nine month periods ended July 31, 2016 and August 2, 2015, are presented in the following table. Three Months Ended Nine Months Ended July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015 Volatility 38.9% 42.9% 48.8% 53.9% Risk free rate of return 1.2% 1.4% – 1.6% 1.2%-1.7% 1.3% - 1.6% Dividend yield 0.0% 0.0% 0.0% 0.0% Expected term 5.1 years 4.7 years 5.1 years 4.7 years
Information on outstanding and exercisable option awards	Information on outstanding and exercisable option awards as of July 31, 2016, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at July 31, 2016 3,575,610 $ 7.52 6.5 years $ 9,210 Exercisable at July 31, 2016 2,027,160 $ 5.87 5.0 years $ 7,807

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Jul. 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 Nine Months Ended July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015 Net income attributable to Photronics, Inc. shareholders $ 8,088 $ 12,106 $ 40,944 $ 26,003 Effect of dilutive securities: Interest expense on convertible notes, net of related tax effects 496 1,071 2,442 3,292 Earnings for diluted earnings per share $ 8,584 $ 13,177 $ 43,386 $ 29,295 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 67,953 66,454 67,377 66,250 Effect of dilutive securities: Convertible notes 5,542 11,085 8,607 11,085 Share-based payment awards 822 1,030 1,006 965 Potentially dilutive common shares 6,364 12,115 9,613 12,050 Weighted-average common shares used for diluted earnings per share 74,317 78,569 76,990 78,300 Basic earnings per share $ 0.12 $ 0.18 $ 0.61 $ 0.39 Diluted earnings per share $ 0.12 $ 0.17 $ 0.56 $ 0.37
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. Three Months Ended Nine Months Ended July 31, 2016 August 2, 2015 July 31, 2016 August 2, 2015 Share-based payment awards 2,016 1,667 1,615 1,636 Total potentially dilutive shares excluded 2,016 1,667 1,615 1,636

CHANGES IN ACCUMULATED OTHER 31

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables)	9 Months Ended
	Jul. 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 and nine month periods ended July 31, 2016 and August 2, 2015: Three Months Ended July 31, 2016 Foreign Currency Amortization Other Total Balance at May 1, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 ) Other comprehensive income (loss) before reclassifications 5,064 - (13 ) 5,051 Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 5,064 32 (13 ) 5,083 Less: other comprehensive (income) loss attributable to noncontrolling interests (1,180 ) - 7 (1,173 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 ) Three Months Ended August 2, 2015 Foreign Currency Amortization Other Total Balance at May 3, 2015 $ 15,648 $ (370 ) $ (440 ) $ 14,838 Other comprehensive income (loss) before reclassifications (25,342 ) - 16 (25,326 ) Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) (25,342 ) 32 16 (25,294 ) Less: other comprehensive income (loss) attributable to noncontrolling interests 2,208 - (8 ) 2,200 Balance at August 2, 2015 $ (7,486 ) $ (338 ) $ (432 ) $ (8,256 ) Nine Months Ended July 31, 2016 Foreign Currency Amortization Other Total Balance at November 1, 2015 $ (9,634 ) $ (306 ) $ (633 ) $ (10,573 ) Other comprehensive income (loss) before reclassifications 7,810 - (23 ) 7,787 Amounts reclassified from other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) 7,810 96 (23 ) 7,883 Less: other comprehensive (income) loss attributable to noncontrolling interests (2,258 ) - 12 (2,246 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 ) Nine Months Ended August 2, 2015 Foreign Currency Amortization Other Total Balance at November 2, 2014 $ 22,651 $ (434 ) $ (443 ) $ 21,774 Other comprehensive income (loss) before reclassifications (32,915 ) - 21 (32,894 ) Amounts reclassified from other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) (32,915 ) 96 21 (32,798 ) Less: other comprehensive income (loss) attributable to noncontrolling interests 2,778 - (10 ) 2,768 Balance at August 2, 2015 $ (7,486 ) $ (338 ) $ (432 ) $ (8,256 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Jul. 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 July 31, 2016 and November 1, 2015. July 31, 2016 November 1, 2015 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 67,701 $ 57,500 $ 64,550 $ 57,500 3.25% convertible senior notes due 2016 $ - $ - $ 60,375 $ 57,500

BASIS OF FINANCIAL STATEMENT 33

BASIS OF FINANCIAL STATEMENT PRESENTATION (Details)	9 Months Ended
	Jul. 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	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Class of Stock [Line Items]
Beginning balance		$ 802,772	$ 753,983	$ 762,066	$ 739,494
Net income		11,453	15,410	49,106	34,709
Other comprehensive income (loss)		5,083	(25,294)	7,883	(32,798)
Sale of common stock through employee stock option and purchase plans		53	1,078	2,895	1,936
Restricted stock awards vesting and expense		314	268	878	802
Share-based compensation expense		661	680	1,971	1,982
Conversion of debt to common stock				7,438
Repurchase of common stock of subsidiary			(78)	0	(78)
Subsidiary dividend				(11,901)
Return of capital to noncontrolling interests		(955)		(956)
Ending balance		819,381	746,047	819,381	746,047
Common Stock [Member]
Class of Stock [Line Items]
Beginning balance		$ 679	$ 663	$ 666	$ 659
Beginning balance (in shares)		67,943	66,298	66,602	65,930
Net income		$ 0	$ 0	$ 0	$ 0
Other comprehensive income (loss)		0	0	0	0
Sale of common stock through employee stock option and purchase plans		$ 0	$ 2	$ 5	$ 4
Sale of common stock through employee stock option and purchase plans (in shares)		7	194	521	433
Restricted stock awards vesting and expense		$ 1	$ 0	$ 2	$ 2
Restricted stock awards vesting and expense (in shares)		18	15	128	144
Share-based compensation expense		$ 0	$ 0	$ 0	$ 0
Conversion of debt to common stock				$ 7
Conversion of debt to common stock (in shares)				717
Repurchase of common stock of subsidiary			$ 0	$ 0	$ 0
Repurchase of common stock of subsidiary (in shares)			0	0	0
Subsidiary dividend				$ 0
Return of capital to noncontrolling interests		0		0
Ending balance		$ 680	$ 665	$ 680	$ 665
Ending balance (in shares)		67,968	66,507	67,968	66,507
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Beginning balance		$ 538,535	$ 522,873	$ 526,402	$ 520,183
Net income		0	0	0	0
Other comprehensive income (loss)		0	0	0	0
Sale of common stock through employee stock option and purchase plans		53	1,076	2,890	1,932
Restricted stock awards vesting and expense		313	268	876	800
Share-based compensation expense		661	680	1,971	1,982
Conversion of debt to common stock				7,431
Repurchase of common stock of subsidiary			27	(8)	27
Subsidiary dividend				0
Return of capital to noncontrolling interests		0		0
Ending balance		539,562	524,924	539,562	524,924
Retained Earnings [Member]
Class of Stock [Line Items]
Beginning balance		162,916	99,332	130,060	85,435
Net income		8,088	12,106	40,944	26,003
Other comprehensive income (loss)		0	0	0	0
Sale of common stock through employee stock option and purchase plans		0	0	0	0
Restricted stock awards vesting and expense		0	0	0	0
Share-based compensation expense		0	0	0	0
Conversion of debt to common stock				0
Repurchase of common stock of subsidiary			0	0	0
Subsidiary dividend				0
Return of capital to noncontrolling interests		0		0
Ending balance		171,004	111,438	171,004	111,438
Accumulated Other Comprehensive Income (Loss) [Member]
Class of Stock [Line Items]
Beginning balance		(8,846)	14,838	(10,573)	21,774
Net income		0	0	0	0
Other comprehensive income (loss)		3,910	(23,094)	5,637	(30,030)
Sale of common stock through employee stock option and purchase plans		0	0	0	0
Restricted stock awards vesting and expense		0	0	0	0
Share-based compensation expense		0	0	0	0
Conversion of debt to common stock				0
Repurchase of common stock of subsidiary			0	0	0
Subsidiary dividend				0
Return of capital to noncontrolling interests		0		0
Ending balance		(4,936)	(8,256)	(4,936)	(8,256)
Non-controlling Interests [Member]
Class of Stock [Line Items]
Beginning balance		109,488	116,277	115,511	111,443
Net income		3,365	3,304	8,162	8,706
Other comprehensive income (loss)		1,173	(2,200)	2,246	(2,768)
Sale of common stock through employee stock option and purchase plans		0	0	0	0
Restricted stock awards vesting and expense		0	0	0	0
Share-based compensation expense		0	0	0	0
Conversion of debt to common stock				0
Repurchase of common stock of subsidiary			(105)	8	(105)
Subsidiary dividend	$ (11,901)			(11,901)
Return of capital to noncontrolling interests		(955)		(956)
Ending balance		$ 113,071	$ 117,276	$ 113,071	$ 117,276

PROPERTY, PLANT AND EQUIPMENT35

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015	Nov. 01, 2015
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 1,662,286		$ 1,662,286		$ 1,626,480
Less accumulated depreciation and amortization	1,140,094		1,140,094		1,079,196
Property, plant and equipment, net	522,192		522,192		547,284
Depreciation and amortization expense	18,400	$ 19,400	56,400	$ 56,400
Equipment under capital leases included in property, plant and equipment [Abstract]
Machinery and equipment	34,917		34,917		56,245
Less accumulated amortization	9,479		9,479		16,054
Capital leased assets, net	25,438		25,438		40,191
Land [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	8,096		8,096		8,172
Buildings and Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	122,077		122,077		121,472
Machinery and Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	1,481,252		1,481,252		1,458,623
Leasehold Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	19,079		19,079		18,856
Furniture, Fixtures and Office Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	12,879		12,879		12,700
Construction in Progress [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 18,903		$ 18,903		$ 6,657

JOINT VENTURE, TECHNOLOGY LIC36

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC (Details) - USD ($) $ in Thousands	May 05, 2016	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015	Nov. 01, 2015
Variable Interest Entity [Line Items]
Variable interest entity, methodology for determining whether entity is primary beneficiary				This joint venture was a variable interest entity ("VIE") (as that term is defined in the ASC) because all costs of the joint venture were passed on to the Company and Micron through purchase agreements they had entered into with the joint venture, and it was dependent upon the Company and Micron for any additional cash requirements. On a quarterly basis the Company reassessed whether its interest in MP Mask gave it a controlling financial interest in this VIE. The purpose of this quarterly reassessment was 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 was still the primary beneficiary of the VIE, by virtue of its tie-breaking voting rights within MP Mask’s Board of Managers, thereby having given it the power to direct the activities of MP Mask that most significantly impacted 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		$ 91,759	$ 94,456	$ 277,915	$ 283,991
Research and development expenses		5,466	6,253	16,613	16,743
Amount receivable from Micron Technology, Inc.		107,494		107,494		$ 110,056
MP Mask [Member]
Variable Interest Entity [Line Items]
Cost of sales		$ 800	1,500	5,700	4,900
Research and development expenses			$ 200	500	700
Amount owed to MP Mask						4,300
Maximum exposure to loss from investment in VIE						93,000
Loss from variable interest entity				$ (100)	$ (100)
Proceeds from sale of equity method investment	$ 93,100
Gain on sale of equity method investment	$ 200
Co-venturer [Member]
Variable Interest Entity [Line Items]
Amount receivable from Micron Technology, Inc.						$ 6,400
Initial term of supply agreement term subject to mutually agreeable renewals	1 year

LONG-TERM BORROWINGS (Details)

LONG-TERM BORROWINGS (Details)	Apr. 30, 2016USD ($)shares	Jan. 31, 2015USD ($)shares$ / shares	Mar. 31, 2011USD ($)shares$ / shares	Jul. 31, 2016USD ($)	Nov. 01, 2015USD ($)
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations				$ 68,900,000	$ 132,615,000
Less current portion				5,846,000	65,495,000
Long-term debt and capital lease obligations non current				$ 63,054,000	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 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
3.25% Convertible Senior Notes due on April 2016 [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations				$ 0	57,500,000
Interest rate percentage				3.25%
Maturity date of debt				Apr. 1, 2016
Repayments of convertible debt	$ 50,100,000
Conversion of debt to common stock (in shares) | shares	700,000
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				$ 11,400,000	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				$ 11,700,000
Interest included in lease payments				300,000
3.09% Capital Lease Obligation Payable through March 2016 [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations				$ 0	$ 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

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock that may be issued (in shares)	4,000,000		4,000,000
Share-based compensation costs incurred	$ 1,000	$ 900	$ 2,800	$ 2,800
Cash received from option exercises	100	1,100	2,900	2,100
Share-based compensation cost capitalized	0	0	0	0
Income tax benefits realized from stock option exercises	$ 0	$ 0	$ 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 7 months 6 days
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Volatility	38.90%	42.90%	48.80%	53.90%
Risk free rate of return	1.20%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected term	5 years 1 month 6 days	4 years 8 months 12 days	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)	3,575,610		3,575,610
Exercisable at end of period (in shares)	2,027,160		2,027,160
Share options granted (in shares)	45,000	63,000	647,250	667,800
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, Outstanding at end of period (in dollar per share)	$ 7.52		$ 7.52
Weighted average exercise price, Exercisable at end of period (in dollar per share)	$ 5.87		$ 5.87
Stock options, additional disclosures [Abstract]
Weighted average remaining contractual life, Outstanding at end of period			6 years 6 months
Weighted average remaining contractual life, Exercisable at end of period			5 years
Aggregate intrinsic value, Outstanding at end of period	$ 9,210		$ 9,210
Aggregate intrinsic value, Exercisable at end of period	$ 7,807		$ 7,807
Weighted-average grant date fair value of options granted (in dollar per share)	$ 3.44	$ 3.46	$ 4.55	$ 3.82
Unrecognized compensation cost related to unvested option awards	$ 4,800		$ 4,800
Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			1 year
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Risk free rate of return		1.40%	1.20%	1.30%
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			4 years
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Risk free rate of return		1.60%	1.70%	1.60%
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 1 month 6 days
Restricted Stock [Abstract]
Restricted stock awards granted (in shares)	0	10,000	115,225	121,334
Weighted average grant date fair value of restricted stock awards (in dollar per share)		$ 8.84	$ 12.13	$ 8.28
Compensation cost not yet recognized related to unvested restricted stock awards	$ 1,300		$ 1,300
Number of shares of restricted stock outstanding (in shares)	177,375		177,375
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		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015	Nov. 01, 2015
INCOME TAXES [Abstract]
U.S. statutory rate	35.00%	35.00%	35.00%	35.00%
Valuation allowance change		$ (0.2)	$ (2.5)	$ (1.7)
Unrecognized tax benefits	$ 4.8		4.8		$ 4.1
Accrued interest and penalties related to unrecognized tax benefits	0.1		0.1		$ 0.1
Foreign Tax Authority [Member]
Income Tax Holiday [Line Items]
Other income tax expense (benefit)			(2.4)
Withholding tax on foreign subsidiary share redemption	$ 0.7		0.7
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	$ 0	$ 0
Per share effect of income tax holiday (in dollars per share)	$ 0	$ 0	$ 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	$ 0.3	$ 0.2
Per share effect of income tax holiday (in dollars per share)	$ 0	$ 0	$ 0	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
Calculation of basic and diluted earnings per share [Abstract]
Net income attributable to Photronics, Inc. shareholders	$ 8,088	$ 12,106	$ 40,944	$ 26,003
Effect of dilutive securities [Abstract]
Interest expense on convertible notes, net of related tax effects	496	1,071	2,442	3,292
Earnings for diluted earnings per share	$ 8,584	$ 13,177	$ 43,386	$ 29,295
Weighted-average common shares computations [Abstract]
Weighted-average common shares used for basic earnings per share (in shares)	67,953	66,454	67,377	66,250
Effect of dilutive securities [Abstract]
Convertible notes (in shares)	5,542	11,085	8,607	11,085
Share-based payment awards (in shares)	822	1,030	1,006	965
Potentially dilutive common shares (in shares)	6,364	12,115	9,613	12,050
Weighted-average common shares used for diluted earnings per share (in shares)	74,317	78,569	76,990	78,300
Basic earnings per share (in dollars per share)	$ 0.12	$ 0.18	$ 0.61	$ 0.39
Diluted earnings per share (in dollars per share)	$ 0.12	$ 0.17	$ 0.56	$ 0.37
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	2,016	1,667	1,615	1,636
Share-Based Payment Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	2,016	1,667	1,615	1,636

CHANGES IN ACCUMULATED OTHER 41

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]
Other comprehensive income, tax	$ 0	$ 0	$ 0	$ 0
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			646,555
Total other comprehensive income (loss)	5,083	(25,294)	7,883	(32,798)
Ending Balance	706,310		706,310
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(8,846)	14,838	(10,573)	21,774
Total other comprehensive income (loss)	3,910	(23,094)	5,637	(30,030)
Ending Balance	(4,936)	(8,256)	(4,936)	(8,256)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(7,966)	15,648	(9,634)	22,651
Ending Balance	(4,082)	(7,486)	(4,082)	(7,486)
Amortization of Cash Flows Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(242)	(370)	(306)	(434)
Ending Balance	(210)	(338)	(210)	(338)
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(638)	(440)	(633)	(443)
Ending Balance	(644)	(432)	(644)	(432)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	5,051	(25,326)	7,787	(32,894)
Amounts reclassified from other comprehensive income	32	32	96	96
Total other comprehensive income (loss)	5,083	(25,294)	7,883	(32,798)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	5,064	(25,342)	7,810	(32,915)
Amounts reclassified from other comprehensive income	0	0	0	0
Total other comprehensive income (loss)	5,064	(25,342)	7,810	(32,915)
Amortization of Cash Flows Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	0	0	0	0
Amounts reclassified from other comprehensive income	32	32	96	96
Total other comprehensive income (loss)	32	32	96	96
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	(13)	16	(23)	21
Amounts reclassified from other comprehensive income	0	0	0	0
Total other comprehensive income (loss)	(13)	16	(23)	21
AOCI Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	(1,173)	2,200	(2,246)	2,768
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	(1,180)	2,208	(2,258)	2,778
Amortization of Cash Flows Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	0	0	0	0
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	$ 7	$ (8)	$ 12	$ (10)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jul. 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 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	67,701	64,550
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	0	60,375
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
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	$ 0	$ 57,500

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jul. 31, 2016USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Outstanding commitments for capital expenditure	$ 51

GAINS ON SALES OF INVESTMENTS (

GAINS ON SALES OF INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jul. 31, 2016	Jan. 31, 2016	Aug. 02, 2015	Jul. 31, 2016	Aug. 02, 2015
GAINS ON SALES OF INVESTMENTS [Abstract]
Gains on sales of investments	$ 157	$ 8,800	$ 0	$ 8,940	$ 0

SUBSIDIARY DIVIDEND (Details)

SUBSIDIARY DIVIDEND (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Noncontrolling Interest [Line Items]
Subsidiary dividend		$ 11,901
Non-controlling Interests [Member]
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling interests	49.99%
Subsidiary dividend	$ 11,901	$ 11,901

EXPANSION INTO CHINA (Details)

EXPANSION INTO CHINA (Details) $ in Millions	9 Months Ended
	Jul. 31, 2016USD ($)
EXPANSION INTO CHINA [Abstract]
Investment amount planned to invest in China	$ 160
Investment term	5 years