Photronics (PLAB) 10-Q 8 Jun 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 30, 2017	May 26, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	PHOTRONICS INC
Entity Central Index Key	810,136
Current Fiscal Year End Date	--10-29
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		68,872,073
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
Current assets:
Cash and cash equivalents	$ 345,724	$ 314,074
Accounts receivable, net of allowance of $3,796 in 2017 and $3,901 in 2016	91,150	92,636
Inventories	24,537	22,081
Other current assets	11,044	12,795
Total current assets	472,455	441,586
Property, plant and equipment, net	503,900	506,434
Intangible assets, net	19,152	19,854
Deferred income taxes	16,199	16,322
Other assets	3,865	3,792
Total assets	1,015,571	987,988
Current liabilities:
Current portion of long-term borrowings	5,503	5,428
Accounts payable	58,205	51,649
Accrued liabilities	28,260	24,240
Total current liabilities	91,968	81,317
Long-term borrowings	59,147	61,860
Other liabilities	19,702	19,337
Total liabilities	170,817	162,514
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, 68,496 shares issued and outstanding at April 30, 2017 and 68,080 shares issued and outstanding at October 30, 2016	685	681
Additional paid-in capital	545,019	541,093
Retained earnings	180,004	176,260
Accumulated other comprehensive income (loss)	4,171	(7,671)
Total Photronics, Inc. shareholders' equity	729,879	710,363
Noncontrolling interests	114,875	115,111
Total equity	844,754	825,474
Total liabilities and equity	$ 1,015,571	$ 987,988

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
Current assets:
Accounts receivable, allowance	$ 3,796	$ 3,901
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)	68,496	68,080
Common stock, shares outstanding (in shares)	68,496	68,080

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Condensed Consolidated Statements of Income (unaudited) [Abstract]
Net sales	$ 108,297	$ 122,923	$ 218,128	$ 252,879
Costs and expenses:
Cost of sales	(88,140)	(91,636)	(174,973)	(186,156)
Selling, general and administrative	(10,894)	(11,024)	(21,764)	(23,222)
Research and development	(3,726)	(5,447)	(7,212)	(11,148)
Operating income	5,537	14,816	14,179	32,353
Other income (expense):
Interest and other income (expense), net	(3,073)	(2,025)	(4,596)	27
Interest expense	(549)	(964)	(1,108)	(2,138)
Gain (loss) on sale of investment	0	0	0	8,785
Income before income tax benefit (provision)	1,915	11,827	8,475	39,027
Income tax benefit (provision)	(431)	2,326	(2,481)	(1,374)
Net income	1,484	14,153	5,994	37,653
Net (income) loss attributable to noncontrolling interests	313	(2,299)	(2,250)	(4,797)
Net income attributable to Photronics, Inc. shareholders	$ 1,797	$ 11,854	$ 3,744	$ 32,856
Earnings per share:
Basic (in dollars per share)	$ 0.03	$ 0.18	$ 0.05	$ 0.49
Diluted (in dollars per share)	$ 0.03	$ 0.16	$ 0.05	$ 0.44
Weighted-average number of common shares outstanding:
Basic (in shares)	68,426	67,372	68,301	67,090
Diluted (in shares)	69,385	77,516	69,277	78,326

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 1,484	$ 14,153	$ 5,994	$ 37,653
Other comprehensive income, net of tax of $0:
Foreign currency translation adjustments	18,308	23,811	17,675	2,735
Amortization of cash flow hedge	32	32	64	64
Net other comprehensive income	18,340	23,843	17,739	2,799
Comprehensive income	19,824	37,996	23,733	40,452
Less: comprehensive income attributable to noncontrolling interests	4,326	6,983	8,147	5,870
Comprehensive income attributable to Photronics, Inc. shareholders	$ 15,498	$ 31,013	$ 15,586	$ 34,582

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Consolidated Statements of Comprehensive Income [Abstract]
Other comprehensive income, tax	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2017	May 01, 2016
Cash flows from operating activities:
Net income	$ 5,994	$ 37,653
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	42,378	40,832
Gain on sale of investment	0	(8,785)
Changes in assets and liabilities:
Accounts receivable	4,204	6,499
Inventories	(1,506)	(256)
Other current assets	2,103	3,095
Accounts payable, accrued liabilities, and other	(6,266)	(13,899)
Net cash provided by operating activities	46,907	65,139
Cash flows from investing activities:
Purchases of property, plant and equipment	(14,152)	(34,928)
Acquisition of business	(5,400)	0
Proceeds from sale of investment	167	8,785
Other	(462)	193
Net cash used in investing activities	(19,847)	(25,950)
Cash flows from financing activities:
Repayments of long-term borrowings	(2,695)	(54,951)
Proceeds from share-based arrangements	2,311	3,046
Other	(23)	(19)
Net cash used in financing activities	(407)	(51,924)
Effect of exchange rate changes on cash and cash equivalents	4,997	846
Net increase (decrease) in cash and cash equivalents	31,650	(11,889)
Cash and cash equivalents at beginning of period	314,074	205,867
Cash and cash equivalents at end of period	345,724	193,978
Supplemental disclosure of non-cash information:
Accrual for property, plant and equipment purchased during the period	11,409	3,297
Subsidiary dividend payable	$ 8,383	$ 11,901

BASIS OF FINANCIAL STATEMENT PR

BASIS OF FINANCIAL STATEMENT PRESENTATION	6 Months Ended
	Apr. 30, 2017
BASIS OF FINANCIAL STATEMENT PRESENTATION [Abstract]
BASIS OF FINANCIAL STATEMENT PRESENTATION	NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION Photronics, Inc. and its subsidiaries ("Photronics", "the Company", "we", “our”, or "us") 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 May 2017 the Company announced that it had entered into an agreement to form a joint venture that would be based in Xiamen, China. Please refer to Note 15 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. All intercompany accounts and transactions have been eliminated in consolidation. 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 29, 2017. 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 October 30, 2016.

CHANGES IN EQUITY

CHANGES IN EQUITY	6 Months Ended
	Apr. 30, 2017
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 six month periods ended April 30, 2017 and May 1, 2016: Three Months Ended April 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Income (Loss) Interests Equity Balance at January 30, 2017 68,333 $ 683 $ 543,116 $ 178,207 $ (9,530 ) $ 118,932 $ 831,408 Net income (loss) - - - 1,797 - (313 ) 1,484 Other comprehensive income - - - - 13,701 4,639 18,340 Sale of common stock through employee stock option and purchase plans 148 2 982 - - - 984 Restricted stock awards vesting and expense 15 - 431 - - - 431 Share-based compensation expense - - 490 - - - 490 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Three Months Ended May 1, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Loss Interests Equity Balance at February 1, 2016 67,081 $ 671 $ 529,337 $ 151,062 $ (28,005 ) $ 114,398 $ 767,463 Net income - - - 11,854 - 2,299 14,153 Other comprehensive income - - - - 19,159 4,684 23,843 Sale of common stock through employee stock option and purchase plans 130 1 799 - - - 800 Restricted stock awards vesting and expense 15 - 313 - - - 313 Share-based compensation expense - - 663 - - - 663 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend payable - - - - - (11,901 ) (11,901 ) Balance at May 1, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772 Six Months Ended April 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Income (Loss) Interests Equity Balance at October 31, 2016 68,080 $ 681 $ 541,093 $ 176,260 $ (7,671 ) $ 115,111 $ 825,474 Net income - - - 3,744 - 2,250 5,994 Other comprehensive income - - - - 11,842 5,897 17,739 Sale of common stock through employee stock option and purchase plans 323 3 2,068 - - - 2,071 Restricted stock awards vesting and expense 93 1 728 - - - 729 Share-based compensation expense - - 1,130 - - - 1,130 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Six Months Ended May 1, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Loss Interests Equity Balance at November 2, 2015 66,602 $ 666 $ 526,401 $ 130,060 $ (10,572 ) $ 115,511 $ 762,066 Net income - - - 32,856 - 4,797 37,653 Other comprehensive income - - - - 1,726 1,073 2,799 Sale of common stock through employee stock option and purchase plans 514 5 2,839 - - - 2,844 Restricted stock awards vesting and expense 110 1 563 - - - 564 Share-based compensation expense - - 1,309 - - - 1,309 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend payable - - - - - (11,901 ) (11,901 ) Balance at May 1, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772

INVENTORIES

INVENTORIES	6 Months Ended
	Apr. 30, 2017
INVENTORIES [Abstract]
INVENTORIES	NOTE 3 - INVENTORIES Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or market. Presented below are the components of inventory at the balance sheet dates: April 30, 2017 October 30, 2016 Finished goods $ 74 $ 142 Work in process 3,692 2,987 Raw materials 20,771 18,952 $ 24,537 $ 22,081

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Apr. 30, 2017
PROPERTY, PLANT AND EQUIPMENT [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 4 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: April 30, 2017 October 30, 2016 Land $ 9,732 $ 8,036 Buildings and improvements 123,194 121,873 Machinery and equipment 1,514,409 1,475,755 Leasehold improvements 20,106 19,224 Furniture, fixtures and office equipment 13,045 12,700 Construction in progress 35,443 23,961 1,715,929 1,661,549 Less accumulated depreciation and amortization 1,212,029 1,155,115 $ 503,900 $ 506,434 Equipment under capital leases are included in above property, plant and equipment as follows: April 30, 2017 October 30, 2016 Machinery and equipment $ 34,917 $ 34,917 Less accumulated amortization 12,098 10,352 $ 22,819 $ 24,565 Depreciation and amortization expense for property, plant and equipment was $20.1 million and $39.8 million for the three and six month periods ended April 30, 2017, respectively, and $18.9 million and $38.0 million for the three and six month periods ended May 1, 2016, respectively. During the three month period ended January 29, 2017, the Company acquired a business comprised of manufacturing assets and certain intellectual property, that enables the Company to expand its manufacturing capability, primarily in large area masks for IC, for approximately $5.7 million, including a $0.3 million holdback payable one year from the acquisition date. The transaction was accounted for in accordance with ASC 805, “Business Combinations”, with substantially all of the purchase price being allocated to long-lived assets that will be depreciated over five years. During the three month period ended January 29, 2017, the Company entered into a noncash transaction with a customer which resulted in the acquisition of equipment with a fair value of approximately $2.8 million and $5.0 million in the three and six month periods ended April 30, 2017, respectively.

JOINT VENTURE, TECHNOLOGY LICEN

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC.	6 Months Ended
	Apr. 30, 2017
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. [Abstract]
JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC.	NOTE 5 - JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. In May 2006 Photronics and Micron Technology, Inc. ("Micron") entered into the MP Mask joint venture (“MP Mask”), which 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 an agreement to license photomask technology developed by Micron, as well as, certain supply agreements. In May 2016 the Company sold its investment in MP Mask to Micron for $93.1 million and recorded a gain on the sale of $0.1 million. On that same date a supply agreement commenced between the Company and Micron, which provided that we would be the majority outsourced supplier of Micron’s photomasks and related services. The supply agreement had a one year term and expired in May 2017. In addition, the Company forevermore has the right to use technology under the prior technology license agreement. This joint venture was a variable interest entity ("VIE") (as that term is defined in ASC 810) 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 ASC 810 as the entity that consolidates a VIE) of the VIE. As a result of the reassessments in fiscal year 2016, the Company determined that Micron remained 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 recorded cost of sales of $2.7 million and $4.9 million and research and development expenses of $0.2 million and $0.5 million during the three and six month periods ended May 1, 2016. The Company recorded a loss of $0.1 million related to its investment in the six month period ended May 1, 2016. Income or loss from the VIE is included in "Interest and other income (expense), net" in the condensed consolidated statements of income.

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS	6 Months Ended
	Apr. 30, 2017
LONG-TERM BORROWINGS [Abstract]
LONG-TERM BORROWINGS	NOTE 6 - LONG-TERM BORROWINGS Long-term borrowings consist of the following: April 30, 2017 October 30, 2016 3.25% convertible senior notes due in April 2019 $ 57,279 $ 57,221 2.77% capital lease obligation payable through July 2018 7,371 10,067 64,650 67,288 Less current portion 5,503 5,428 $ 59,147 $ 61,860 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 stipulates that we may not pay cash dividends on Photronics, Inc. stock, 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 April 30, 2017. The Company had no outstanding borrowings against the credit facility at April 30, 2017, and $50 million was available for borrowing. The interest rate on the credit facility (2.24% at April 30, 2017) is based on the Company’s total leverage ratio at LIBOR plus a spread, as defined in the credit facility. In May 2017 the credit facility was amended to add certain covenants for our new joint venture in China and other potential investments. See Note 15 for additional discussion of our new joint venture in China. The Company adopted Accounting Standard Update (“ASU” or “Update”) 2015-03 “Simplifying the Presentation of Debt Issuance Costs” in the first quarter of its 2017 fiscal year. This ASU requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct reduction from that debt liability, consistent with the presentation of a debt discount. We adopted this ASU on a retrospective basis, as a result of which our October 30, 2016, condensed consolidated balance sheet and its related long-term borrowings note have been adjusted, as necessary, to reflect this Update’s adoption. The effect on our October 30, 2016, condensed consolidated balance sheet is presented below. Line Item Previously Reported Change Due to Adoption Retrospectively Adjusted Other Assets $ 4,071 $ (279 ) $ 3,792 Long-term Borrowings $ 62,139 $ (279 ) $ 61,860 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. 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 April 30, 2017

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Apr. 30, 2017
SHARE-BASED COMPENSATION [Abstract]
SHARE-BASED COMPENSATION	NOTE 7 - 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), shares that are being held in the 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. Total share-based compensation costs for the three and six month periods ended April 30, 2017, were $0.9 million and $1.9 million, respectively, and $1.0 million and $1.9 million for the three and six month periods ended May 1, 2016, respectively. The Company received cash from option exercises of $1.0 million and $2.1 million for the three and six month periods ended April 30, 2017, respectively, and $0.9 million and $2.8 million for the three and six month periods ended May 1, 2016, 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 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 and six month periods ended April 30, 2017 and May 1, 2016, are presented in the following table. Three Months Ended Six Months Ended April 30, 2017 May 1, 2016 April 30, 2017 May 1, 2016 Volatility 31.6 % 39.8 % 32.2 % 49.5 % Risk free rate of return 2.0 % 1.4 % 1.9-2.0 % 1.4-1.7 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected term 5.0 years 5.1 years 5.0 years 5.1 years Information on outstanding and exercisable option awards as of April 30, 2017, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at April 30, 2017 3,458,835 $ 7.96 6.3 years $ 12,572 Exercisable at April 30, 2017 2,176,719 $ 6.49 5.0 years $ 10,997 There were 10,000 share options granted during the three month period ended April 30, 2017, with a grant date fair value of $3.35 per share and 23,000 share options granted during the three month period ended May 1, 2016, with a weighted-average grant date fair value of $3.74 per share. There were 348,750 share options granted during the six month period ended April 30, 2017, with a weighted-average grant date fair value of $3.59 per share and 602,250 share options granted during the six month period ended May 1, 2016, with a weighted-average grant date fair value of $4.63 per share. As of April 30, 2017, the total unrecognized compensation cost related to unvested option awards was approximately $4.2 million. That cost is expected to be recognized over a weighted-average amortization period of 2.5 years. Restricted Stock The fair value of restricted stock awards is based on the Company’s closing stock price on the date of grant. The restrictions on these awards typically lapse over a service period of less-than-one to four years. There were 25,000 restricted stock awards granted during the three month period ended April 30, 2017, with a grant date fair value of $10.75, and 285,000 restricted stock awards granted during the six month period ended April 30, 2017, with a weighted-average grant date fair value of $11.30 per share. No restricted stock awards were granted during the three month period ended May 1, 2016 and 115,225 restricted stock awards were granted during the six month period ended May 1, 2016, with a weighted-average grant date fair value of $12.13 per share. As of April 30, 2017, the total compensation cost not yet recognized related to unvested restricted stock awards was approximately $3.3 million. That cost is expected to be recognized over a weighted-average amortization period of 3.0 years. As of April 30, 2017, there were 344,094 shares of restricted stock outstanding.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 2017
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 8 - INCOME TAXES The effective tax rate differs from the U.S. statutory rate of 35% in the three and six month periods ended April 30, 2017 and May 1, 2016, 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 tax benefit of these jurisdictions. As of May 1, 2016, the Company determined that deferred tax assets of $2.5 million, whose realization was previously not considered to be more likely than not, are realizable and, therefore, reduced their related valuation allowance. During the three month period ended May 1, 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 April 2016, $0.7 million of withholding tax was incurred upon the completion of a foreign subsidiary’s share redemption. Unrecognized tax benefits related to uncertain tax positions were $4.2 million at April 30, 2017 and $4.6 million at October 30, 2016, all of which, if recognized, would favorably impact the Company’s effective tax rate. Accrued interest and penalties related to unrecognized tax benefits was $0.1 million at April 30, 2017 and October 30, 2016. In the six month period ended April 30, 2017, the net reduction of unrecognized tax benefit reflects the resolution of tax issues with the foreign tax authorities including the recognition of $0.5 million in previously unrecognized tax benefits. Although the timing of the expirations of statutes of limitations may be uncertain, as they can be dependent upon the settlement of tax audits, the Company believes that it is reasonably possible that up to $0.8 million of its uncertain tax positions (including accrued interest and penalties, and net of tax benefits) may be resolved over the next twelve months. The resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements. PKLT Co. Ltd., 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 or six month periods ended April 30, 2017 and May 1, 2016. Photronics DNP Mask Corporation (“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 April 30, 2017 and May 1, 2016, and $0.2 million in the six month periods ended April 30, 2017 and May 1, 2016. This tax holiday had no per share effect in the three and six month periods ended April 30, 2017 and May 1, 2016.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Apr. 30, 2017
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	NOTE 9 - EARNINGS PER SHARE The calculation of basic and diluted earnings per share is presented below. Three Months Ended Six Months Ended April 30, 2017 May 1, 2016 April 30 2017 May 1, 2016 Net income attributable to Photronics, Inc. shareholders $ 1,797 $ 11,854 $ 3,744 $ 32,856 Effect of dilutive securities: Interest expense on convertible notes, net of tax - 875 - 1,946 Earnings for diluted earnings per share $ 1,797 $ 12,729 $ 3,744 $ 34,802 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 68,426 67,372 68,301 67,090 Effect of dilutive securities: Share-based payment awards 959 948 976 1,096 Convertible notes - 9,196 - 10,140 Potentially dilutive common shares 959 10,144 976 11,236 Weighted-average common shares used for diluted earnings per share 69,385 77,516 69,277 78,326 Basic earnings per share $ 0.03 $ 0.18 $ 0.05 $ 0.49 Diluted earnings per share $ 0.03 $ 0.16 $ 0.05 $ 0.44 The table below shows the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise price exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be anti-dilutive. The table also shows convertible notes that, if converted, would have been anti-dilutive. Three Months Ended Six Months Ended April 30, 2017 May 1, 2016 April 30, 2017 May 1, 2016 Convertible notes 5,542 - 5,542 - Share-based payment awards 1,082 2,160 1,038 1,414 Total potentially dilutive shares excluded 6,624 2,160 6,580 1,414

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	6 Months Ended
	Apr. 30, 2017
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	NOTE 10 - 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 six month periods ended April 30, 2017 and May 1, 2016. Three Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at January 30, 2017 $ (8,448 ) $ (145 ) $ (937 ) $ (9,530 ) Other comprehensive income (loss) before reclassifications 18,382 - (74 ) 18,308 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 18,382 32 (74 ) 18,340 Less: other comprehensive (income) loss attributable to noncontrolling interests (4,676 ) - 37 (4,639 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Three Months Ended May 1, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at February 1, 2016 $ (27,118 ) $ (274 ) $ (613 ) $ (28,005 ) Other comprehensive income (loss) before reclassifications 23,861 - (50 ) 23,811 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 23,861 32 (50 ) 23,843 Less: other comprehensive (income) loss attributable to noncontrolling interests (4,709 ) - 25 (4,684 ) Balance at May 1, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 ) Six Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at October 31, 2016 $ (6,567 ) $ (177 ) $ (927 ) $ (7,671 ) Other comprehensive income (loss) before reclassifications 17,768 - (93 ) 17,675 Amounts reclassified from accumulated other comprehensive income - 64 - 64 Net current period other comprehensive income (loss) 17,768 64 (93 ) 17,739 Less: other comprehensive (income)loss attributable to noncontrolling interests (5,943 ) - 46 (5,897 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Six Months Ended May 1, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at November 2, 2015 $ (9,634 ) $ (306 ) $ (633 ) $ (10,573 ) Other comprehensive income (loss) before reclassifications 2,746 - (11 ) 2,735 Amounts reclassified from accumulated other comprehensive income - 64 - 64 Net current period other comprehensive income (loss) 2,746 64 (11 ) 2,799 Less: other comprehensive (income) loss attributable to noncontrolling interests (1,078 ) - 6 (1,072 ) Balance at May 1, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 ) 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	6 Months Ended
	Apr. 30, 2017
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 11 - 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 (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 April 30, 2017 or October 30, 2016. In connection with the acquisition discussed in Note 4, the Company recorded and measured the assets acquired at fair value. 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, as they were determined using inputs that were either observable market data, or could be derived from or corroborated with observable market data. These inputs included the Company’s stock price and interest rates offered on debt issued by entities with credit ratings similar to that of the Company’s. The table below presents the fair and carrying values of the Company's convertible senior notes at April 30, 2017 and October 30, 2016. April 30, 2017 October 30, 2016 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 72,663 $ 57,279 $ 68,230 $ 57,221

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 30, 2017
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES As of April 30, 2017, the Company had commitments outstanding for capital equipment expenditures of approximately $62 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.

SUBSIDIARY DIVIDEND

SUBSIDIARY DIVIDEND	6 Months Ended
	Apr. 30, 2017
SUBSIDIARY DIVIDEND [Abstract]
SUBSIDIARY DIVIDEND	NOTE 13 - SUBSIDIARY DIVIDEND In April 2017 PDMC, the Company’s majority owned IC subsidiary in Taiwan, declared a dividend of which 49.99%, or approximately $8.4 million, is expected to be paid to the third party that owns a noncontrolling interest in PDMC.

GAIN ON SALE OF INVESTMENT

GAIN ON SALE OF INVESTMENT	6 Months Ended
	Apr. 30, 2017
GAIN ON SALE OF INVESTMENT [Abstract]
GAIN ON SALE OF INVESTMENT	NOTE 14 - 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.

FORMATION OF PDMCX JOINT VENTUR

FORMATION OF PDMCX JOINT VENTURE	6 Months Ended
	Apr. 30, 2017
FORMATION OF PDMCX JOINT VENTURE [Abstract]
FORMATION OF PDMCX JOINT VENTURE	NOTE 15 - FORMATION OF PDMCX JOINT VENTURE In May 2017 the Company announced that it had entered into an agreement with Dai Nippon Printing Co., Ltd. (DNP) to form a joint venture to serve semiconductor manufacturers in China. Under the agreement, PDMC will own 50.01% of the joint venture, which will be named Photronics DNP Mask Corporation Xiamen (PDMCX), and a subsidiary of DNP will own the remaining 49.99%. The financial results of the joint venture will be included in Photronics’ consolidated financial statements. Our previously announced IC investment in China of $160 million will be based in Xiamen, China. Construction of the facility is currently underway, and production is anticipated to commence by the end of 2018. Photronics and DNP will contribute cash, in proportion to their ownership percentages, over five years to fund the equity portion of the investment. The joint venture, itself, may also fund a portion of the investment with local borrowings. The formation of the joint venture, which is subject to regulatory approvals and customary closing conditions, is expected to be completed by the end of the Company’s fiscal year 2017.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Apr. 30, 2017
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 16 - RECENT ACCOUNTING PRONOUNCEMENTS In January 2017 the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment”, which eliminates Step 2 of the goodwill impairment test and requires entities to perform their annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. In addition, this ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, in the event the reporting unit fails the qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective for the Company in its first quarter of its fiscal year 2021, and should be applied on a prospective basis. The impact of this ASU will depend upon the nature of future acquisitions that the Company may make. In January 2017 the FASB issued ASU 2017-01 “Clarifying the Definition of a Business”, with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for the Company in its first quarter of fiscal year 2019, and should be applied on a prospective basis. The impact of this ASU will depend upon the nature of future acquisitions or dispositions that the Company may make. In November 2016 the FASB issued ASU 2016-18 “Restricted Cash”, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for the Company in its first quarter of fiscal year 2019 and should be applied on a retrospective transition basis. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In October 2016 the FASB issued ASU 2016-16 “Intra-Entity Transfers of Assets Other Than Inventory”, which eliminates the exception of recognizing, at the time of transfer, current and deferred income taxes for intra-entity asset transfers other than inventory. ASU 2016-16 is effective for the Company in its first quarter of fiscal year 2019 and should be applied on a modified retrospective transition basis. Early adoption is permitted as of the beginning of an annual reporting period for which interim or annual financial statements have not been issued or made available for issuance. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In August 2016 the FASB issued ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments”, which addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for the Company in its first quarter of fiscal year 2019 and should be applied using a retrospective transition approach. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In June 2016 the FASB issued ASU 2016-13 “Measurement of Credit Losses”, the main objective of which is to provide more useful information about expected credit losses on financial instruments and other commitments of an entity to extend credit. In support of this objective, the ASU replaces the incurred loss impairment methodology found in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU requires a cumulative-effect adjustment as of the beginning of the first reporting period in which the guidance is adopted. ASU 2016-13 is effective for the Company in its first quarter of fiscal year 2021, with early adoption permitted beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In March 2016 the FASB issued 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. ASU 2016-09 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. ASU 2016-02 is to be adopted using a modified retrospective approach, which includes a number of practical expedients, that requires 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. ASU 2016-01 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 April 2015 the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs”, which requires debt issuance costs related to a 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. The Company adopted this ASU, and applied it on a retrospective basis, in the first quarter of its 2017 fiscal year. See Note 6 for the effects of its adoption on the Company’s October 30, 2016, condensed consolidated balance sheet. 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.

INVENTORIES (Policies)

INVENTORIES (Policies)	6 Months Ended
	Apr. 30, 2017
INVENTORIES [Abstract]
Inventory Policy	Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or market.

LONG-TERM BORROWINGS (Policies)

LONG-TERM BORROWINGS (Policies)	6 Months Ended
	Apr. 30, 2017
LONG-TERM BORROWINGS [Abstract]
Debt Issuance Costs Policy	The Company adopted Accounting Standard Update (“ASU” or “Update”) 2015-03 “Simplifying the Presentation of Debt Issuance Costs” in the first quarter of its 2017 fiscal year. This ASU requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct reduction from that debt liability, consistent with the presentation of a debt discount. We adopted this ASU on a retrospective basis, as a result of which our October 30, 2016, condensed consolidated balance sheet and its related long-term borrowings note have been adjusted, as necessary, to reflect this Update’s adoption.

SHARE-BASED COMPENSATION (Polic

SHARE-BASED COMPENSATION (Policies)	6 Months Ended
	Apr. 30, 2017
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)	6 Months Ended
	Apr. 30, 2017
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 (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 PRONOUNCEME28

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Apr. 30, 2017
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Recent Accounting Pronouncements	In January 2017 the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment”, which eliminates Step 2 of the goodwill impairment test and requires entities to perform their annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. In addition, this ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, in the event the reporting unit fails the qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective for the Company in its first quarter of its fiscal year 2021, and should be applied on a prospective basis. The impact of this ASU will depend upon the nature of future acquisitions that the Company may make. In January 2017 the FASB issued ASU 2017-01 “Clarifying the Definition of a Business”, with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for the Company in its first quarter of fiscal year 2019, and should be applied on a prospective basis. The impact of this ASU will depend upon the nature of future acquisitions or dispositions that the Company may make. In November 2016 the FASB issued ASU 2016-18 “Restricted Cash”, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for the Company in its first quarter of fiscal year 2019 and should be applied on a retrospective transition basis. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In October 2016 the FASB issued ASU 2016-16 “Intra-Entity Transfers of Assets Other Than Inventory”, which eliminates the exception of recognizing, at the time of transfer, current and deferred income taxes for intra-entity asset transfers other than inventory. ASU 2016-16 is effective for the Company in its first quarter of fiscal year 2019 and should be applied on a modified retrospective transition basis. Early adoption is permitted as of the beginning of an annual reporting period for which interim or annual financial statements have not been issued or made available for issuance. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In August 2016 the FASB issued ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments”, which addresses eight specific cash flow issues with the objective of reducing diversity in practice. ASU 2016-15 is effective for the Company in its first quarter of fiscal year 2019 and should be applied using a retrospective transition approach. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In June 2016 the FASB issued ASU 2016-13 “Measurement of Credit Losses”, the main objective of which is to provide more useful information about expected credit losses on financial instruments and other commitments of an entity to extend credit. In support of this objective, the ASU replaces the incurred loss impairment methodology found in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU requires a cumulative-effect adjustment as of the beginning of the first reporting period in which the guidance is adopted. ASU 2016-13 is effective for the Company in its first quarter of fiscal year 2021, with early adoption permitted beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements. In March 2016 the FASB issued 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. ASU 2016-09 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. ASU 2016-02 is to be adopted using a modified retrospective approach, which includes a number of practical expedients, that requires 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. ASU 2016-01 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 April 2015 the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs”, which requires debt issuance costs related to a 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. The Company adopted this ASU, and applied it on a retrospective basis, in the first quarter of its 2017 fiscal year. See Note 6 for the effects of its adoption on the Company’s October 30, 2016, condensed consolidated balance sheet. 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)	6 Months Ended
	Apr. 30, 2017
CHANGES IN EQUITY [Abstract]
Consolidated changes in equity	The following tables set forth the Company's consolidated changes in equity for the three and six month periods ended April 30, 2017 and May 1, 2016: Three Months Ended April 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Income (Loss) Interests Equity Balance at January 30, 2017 68,333 $ 683 $ 543,116 $ 178,207 $ (9,530 ) $ 118,932 $ 831,408 Net income (loss) - - - 1,797 - (313 ) 1,484 Other comprehensive income - - - - 13,701 4,639 18,340 Sale of common stock through employee stock option and purchase plans 148 2 982 - - - 984 Restricted stock awards vesting and expense 15 - 431 - - - 431 Share-based compensation expense - - 490 - - - 490 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Three Months Ended May 1, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Loss Interests Equity Balance at February 1, 2016 67,081 $ 671 $ 529,337 $ 151,062 $ (28,005 ) $ 114,398 $ 767,463 Net income - - - 11,854 - 2,299 14,153 Other comprehensive income - - - - 19,159 4,684 23,843 Sale of common stock through employee stock option and purchase plans 130 1 799 - - - 800 Restricted stock awards vesting and expense 15 - 313 - - - 313 Share-based compensation expense - - 663 - - - 663 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend payable - - - - - (11,901 ) (11,901 ) Balance at May 1, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772 Six Months Ended April 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Income (Loss) Interests Equity Balance at October 31, 2016 68,080 $ 681 $ 541,093 $ 176,260 $ (7,671 ) $ 115,111 $ 825,474 Net income - - - 3,744 - 2,250 5,994 Other comprehensive income - - - - 11,842 5,897 17,739 Sale of common stock through employee stock option and purchase plans 323 3 2,068 - - - 2,071 Restricted stock awards vesting and expense 93 1 728 - - - 729 Share-based compensation expense - - 1,130 - - - 1,130 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Six Months Ended May 1, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Retained Accumulated Comprehensive Non- controlling Total Shares Amount Capital Earnings Loss Interests Equity Balance at November 2, 2015 66,602 $ 666 $ 526,401 $ 130,060 $ (10,572 ) $ 115,511 $ 762,066 Net income - - - 32,856 - 4,797 37,653 Other comprehensive income - - - - 1,726 1,073 2,799 Sale of common stock through employee stock option and purchase plans 514 5 2,839 - - - 2,844 Restricted stock awards vesting and expense 110 1 563 - - - 564 Share-based compensation expense - - 1,309 - - - 1,309 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend payable - - - - - (11,901 ) (11,901 ) Balance at May 1, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 30, 2017
INVENTORIES [Abstract]
Components of inventory	Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or market. Presented below are the components of inventory at the balance sheet dates: April 30, 2017 October 30, 2016 Finished goods $ 74 $ 142 Work in process 3,692 2,987 Raw materials 20,771 18,952 $ 24,537 $ 22,081

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Apr. 30, 2017
PROPERTY, PLANT AND EQUIPMENT [Abstract]
Property, plant and equipment	Property, plant and equipment consist of the following: April 30, 2017 October 30, 2016 Land $ 9,732 $ 8,036 Buildings and improvements 123,194 121,873 Machinery and equipment 1,514,409 1,475,755 Leasehold improvements 20,106 19,224 Furniture, fixtures and office equipment 13,045 12,700 Construction in progress 35,443 23,961 1,715,929 1,661,549 Less accumulated depreciation and amortization 1,212,029 1,155,115 $ 503,900 $ 506,434
Equipment under capital leases included in property, plant and equipment	Equipment under capital leases are included in above property, plant and equipment as follows: April 30, 2017 October 30, 2016 Machinery and equipment $ 34,917 $ 34,917 Less accumulated amortization 12,098 10,352 $ 22,819 $ 24,565

LONG-TERM BORROWINGS (Tables)

LONG-TERM BORROWINGS (Tables)	6 Months Ended
	Apr. 30, 2017
LONG-TERM BORROWINGS [Abstract]
Long-term borrowings	Long-term borrowings consist of the following: April 30, 2017 October 30, 2016 3.25% convertible senior notes due in April 2019 $ 57,279 $ 57,221 2.77% capital lease obligation payable through July 2018 7,371 10,067 64,650 67,288 Less current portion 5,503 5,428 $ 59,147 $ 61,860
Effect on financial statement condensed consolidated balance sheet	The Company adopted Accounting Standard Update (“ASU” or “Update”) 2015-03 “Simplifying the Presentation of Debt Issuance Costs” in the first quarter of its 2017 fiscal year. This ASU requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct reduction from that debt liability, consistent with the presentation of a debt discount. We adopted this ASU on a retrospective basis, as a result of which our October 30, 2016, condensed consolidated balance sheet and its related long-term borrowings note have been adjusted, as necessary, to reflect this Update’s adoption. The effect on our October 30, 2016, condensed consolidated balance sheet is presented below. Line Item Previously Reported Change Due to Adoption Retrospectively Adjusted Other Assets $ 4,071 $ (279 ) $ 3,792 Long-term Borrowings $ 62,139 $ (279 ) $ 61,860

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Apr. 30, 2017
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 six month periods ended April 30, 2017 and May 1, 2016, are presented in the following table. Three Months Ended Six Months Ended April 30, 2017 May 1, 2016 April 30, 2017 May 1, 2016 Volatility 31.6 % 39.8 % 32.2 % 49.5 % Risk free rate of return 2.0 % 1.4 % 1.9-2.0 % 1.4-1.7 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Expected term 5.0 years 5.1 years 5.0 years 5.1 years
Information on outstanding and exercisable option awards	Information on outstanding and exercisable option awards as of April 30, 2017, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at April 30, 2017 3,458,835 $ 7.96 6.3 years $ 12,572 Exercisable at April 30, 2017 2,176,719 $ 6.49 5.0 years $ 10,997

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Apr. 30, 2017
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 Six Months Ended April 30, 2017 May 1, 2016 April 30 2017 May 1, 2016 Net income attributable to Photronics, Inc. shareholders $ 1,797 $ 11,854 $ 3,744 $ 32,856 Effect of dilutive securities: Interest expense on convertible notes, net of tax - 875 - 1,946 Earnings for diluted earnings per share $ 1,797 $ 12,729 $ 3,744 $ 34,802 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 68,426 67,372 68,301 67,090 Effect of dilutive securities: Share-based payment awards 959 948 976 1,096 Convertible notes - 9,196 - 10,140 Potentially dilutive common shares 959 10,144 976 11,236 Weighted-average common shares used for diluted earnings per share 69,385 77,516 69,277 78,326 Basic earnings per share $ 0.03 $ 0.18 $ 0.05 $ 0.49 Diluted earnings per share $ 0.03 $ 0.16 $ 0.05 $ 0.44
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 Six Months Ended April 30, 2017 May 1, 2016 April 30, 2017 May 1, 2016 Convertible notes 5,542 - 5,542 - Share-based payment awards 1,082 2,160 1,038 1,414 Total potentially dilutive shares excluded 6,624 2,160 6,580 1,414

CHANGES IN ACCUMULATED OTHER 35

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables)	6 Months Ended
	Apr. 30, 2017
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 six month periods ended April 30, 2017 and May 1, 2016. Three Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at January 30, 2017 $ (8,448 ) $ (145 ) $ (937 ) $ (9,530 ) Other comprehensive income (loss) before reclassifications 18,382 - (74 ) 18,308 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 18,382 32 (74 ) 18,340 Less: other comprehensive (income) loss attributable to noncontrolling interests (4,676 ) - 37 (4,639 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Three Months Ended May 1, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at February 1, 2016 $ (27,118 ) $ (274 ) $ (613 ) $ (28,005 ) Other comprehensive income (loss) before reclassifications 23,861 - (50 ) 23,811 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 23,861 32 (50 ) 23,843 Less: other comprehensive (income) loss attributable to noncontrolling interests (4,709 ) - 25 (4,684 ) Balance at May 1, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 ) Six Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at October 31, 2016 $ (6,567 ) $ (177 ) $ (927 ) $ (7,671 ) Other comprehensive income (loss) before reclassifications 17,768 - (93 ) 17,675 Amounts reclassified from accumulated other comprehensive income - 64 - 64 Net current period other comprehensive income (loss) 17,768 64 (93 ) 17,739 Less: other comprehensive (income)loss attributable to noncontrolling interests (5,943 ) - 46 (5,897 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Six Months Ended May 1, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at November 2, 2015 $ (9,634 ) $ (306 ) $ (633 ) $ (10,573 ) Other comprehensive income (loss) before reclassifications 2,746 - (11 ) 2,735 Amounts reclassified from accumulated other comprehensive income - 64 - 64 Net current period other comprehensive income (loss) 2,746 64 (11 ) 2,799 Less: other comprehensive (income) loss attributable to noncontrolling interests (1,078 ) - 6 (1,072 ) Balance at May 1, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Apr. 30, 2017
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 April 30, 2017 and October 30, 2016. April 30, 2017 October 30, 2016 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 72,663 $ 57,279 $ 68,230 $ 57,221

BASIS OF FINANCIAL STATEMENT 37

BASIS OF FINANCIAL STATEMENT PRESENTATION (Details)	6 Months Ended
	Apr. 30, 2017Facility
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 ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Class of Stock [Line Items]
Beginning balance	$ 831,408	$ 767,463	$ 825,474	$ 762,066
Net income (loss)	1,484	14,153	5,994	37,653
Other comprehensive income	18,340	23,843	17,739	2,799
Sale of common stock through employee stock option and purchase plans	984	800	2,071	2,844
Restricted stock awards vesting and expense	431	313	729	564
Share-based compensation expense	490	663	1,130	1,309
Conversion of debt to common stock		7,438		7,438
Repurchase of common stock by subsidiary		0		0
Subsidiary dividend payable	(8,383)	(11,901)	(8,383)	(11,901)
Ending balance	844,754	802,772	844,754	802,772
Common Stock [Member]
Class of Stock [Line Items]
Beginning balance	$ 683	$ 671	$ 681	$ 666
Beginning balance (in shares)	68,333	67,081	68,080	66,602
Net income (loss)	$ 0	$ 0	$ 0	$ 0
Other comprehensive income	0	0	0	0
Sale of common stock through employee stock option and purchase plans	$ 2	$ 1	$ 3	$ 5
Sale of common stock through employee stock option and purchase plans (in shares)	148	130	323	514
Restricted stock awards vesting and expense	$ 0	$ 0	$ 1	$ 1
Restricted stock awards vesting and expense (in shares)	15	15	93	110
Share-based compensation expense	$ 0	$ 0	$ 0	$ 0
Conversion of debt to common stock		$ 7		$ 7
Conversion of debt to common stock (in shares)		717		717
Repurchase of common stock by subsidiary		$ 0		$ 0
Subsidiary dividend payable	0	0	0	0
Ending balance	$ 685	$ 679	$ 685	$ 679
Ending balance (in shares)	68,496	67,943	68,496	67,943
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Beginning balance	$ 543,116	$ 529,337	$ 541,093	$ 526,401
Net income (loss)	0	0	0	0
Other comprehensive income	0	0	0	0
Sale of common stock through employee stock option and purchase plans	982	799	2,068	2,839
Restricted stock awards vesting and expense	431	313	728	563
Share-based compensation expense	490	663	1,130	1,309
Conversion of debt to common stock		7,431		7,431
Repurchase of common stock by subsidiary		(8)		(8)
Subsidiary dividend payable	0	0	0	0
Ending balance	545,019	538,535	545,019	538,535
Retained Earnings [Member]
Class of Stock [Line Items]
Beginning balance	178,207	151,062	176,260	130,060
Net income (loss)	1,797	11,854	3,744	32,856
Other comprehensive income	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		0
Repurchase of common stock by subsidiary		0		0
Subsidiary dividend payable	0	0	0	0
Ending balance	180,004	162,916	180,004	162,916
Accumulated Other Comprehensive Income (Loss) [Member]
Class of Stock [Line Items]
Beginning balance	(9,530)	(28,005)	(7,671)	(10,572)
Net income (loss)	0	0	0	0
Other comprehensive income	13,701	19,159	11,842	1,726
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		0
Repurchase of common stock by subsidiary		0		0
Subsidiary dividend payable	0	0	0	0
Ending balance	4,171	(8,846)	4,171	(8,846)
Non-controlling Interests [Member]
Class of Stock [Line Items]
Beginning balance	118,932	114,398	115,111	115,511
Net income (loss)	(313)	2,299	2,250	4,797
Other comprehensive income	4,639	4,684	5,897	1,073
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		0
Repurchase of common stock by subsidiary		8		8
Subsidiary dividend payable	(8,383)	(11,901)	(8,383)	(11,901)
Ending balance	$ 114,875	$ 109,488	$ 114,875	$ 109,488

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
INVENTORIES [Abstract]
Finished goods	$ 74	$ 142
Work in process	3,692	2,987
Raw materials	20,771	18,952
Inventory	$ 24,537	$ 22,081

PROPERTY, PLANT AND EQUIPMENT40

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Apr. 30, 2017	Jan. 29, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 1,715,929			$ 1,715,929		$ 1,661,549
Less accumulated depreciation and amortization	1,212,029			1,212,029		1,155,115
Property, plant and equipment, net	503,900			503,900		506,434
Depreciation and amortization expense	20,100		$ 18,900	39,800	$ 38,000
Equipment under capital leases included in property, plant and equipment [Abstract]
Machinery and equipment	34,917			34,917		34,917
Less accumulated amortization	12,098			12,098		10,352
Capital leased assets, net	22,819			22,819		24,565
Acquired assets recognized and measured at fair value		$ 5,700
Payment held back on asset acquisition		$ 300
Useful life of long-lived assets		5 years
Equipment acquired in exchange for product	2,800			5,000
Land [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	9,732			9,732		8,036
Buildings and Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	123,194			123,194		121,873
Machinery and Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	1,514,409			1,514,409		1,475,755
Leasehold Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	20,106			20,106		19,224
Furniture, Fixtures and Office Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	13,045			13,045		12,700
Construction in Progress [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 35,443			$ 35,443		$ 23,961

JOINT VENTURE, TECHNOLOGY LIC41

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2016	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
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 ASC 810) 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 ASC 810 as the entity that consolidates a VIE) of the VIE. As a result of the reassessments in fiscal year 2016, the Company determined that Micron remained 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		$ 88,140	$ 91,636	$ 174,973	$ 186,156
Research and development expenses		$ 3,726	5,447	$ 7,212	11,148
MP Mask [Member]
Variable Interest Entity [Line Items]
Proceeds from sale of equity method investment	$ 93,100
Gain on sale of equity method investment	$ 100
Cost of sales			2,700		4,900
Research and development expenses			$ 200		500
Loss from variable interest entity					$ (100)

LONG-TERM BORROWINGS (Details)

LONG-TERM BORROWINGS (Details)	1 Months Ended		6 Months Ended
	Apr. 30, 2016USD ($)shares	Jan. 31, 2015USD ($)shares$ / shares	Apr. 30, 2017USD ($)	Jan. 29, 2017USD ($)	Oct. 30, 2016USD ($)	Mar. 31, 2011$ / shares
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 64,650,000		$ 67,288,000
Less current portion			5,503,000		5,428,000
Long-term debt and capital lease obligations non current			59,147,000		61,860,000
Debt Issuance Costs [Abstract]
Other Assets			3,865,000		3,792,000
Long-term Borrowings			$ 59,147,000		61,860,000
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			2.24%
ASU 2015-03 [Member] | Previously Reported [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations non current				$ 62,139,000
Debt Issuance Costs [Abstract]
Other Assets				4,071,000
Long-term Borrowings				62,139,000
ASU 2015-03 [Member] | Change Due to Adoption [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations non current				(279,000)
Debt Issuance Costs [Abstract]
Other Assets				(279,000)
Long-term Borrowings				(279,000)
ASU 2015-03 [Member] | Retrospectively Adjusted [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations non current				61,860,000
Debt Issuance Costs [Abstract]
Other Assets				3,792,000
Long-term Borrowings				$ 61,860,000
3.25% Convertible Senior Notes due on April 2019 [Member]
Long-term borrowings [Abstract]
Convertible debt			$ 57,279,000		57,221,000
Interest rate percentage			3.25%
Maturity date of debt			Apr. 1, 2019
Face amount of debt			$ 57,500,000
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
3.25% Convertible Senior Notes due in April 2016 [Member]
Long-term borrowings [Abstract]
Interest rate percentage	3.25%
Maturity date of debt	Apr. 1, 2016
Face amount of debt	$ 57,500,000
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			$ 7,371,000		$ 10,067,000
Interest rate percentage			2.77%
Maturity date of debt			Jul. 31, 2018
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			$ 7,500,000
Interest included in lease payments			$ 100,000

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Date and terms of plan modification			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.
Maximum number of shares of common stock that may be issued (in shares)	4,000,000		4,000,000
Share-based compensation costs incurred	$ 900	$ 1,000	$ 1,900	$ 1,900
Cash received from option exercises	1,000	900	2,100	2,800
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 6 months
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Volatility	31.60%	39.80%	32.20%	49.50%
Risk free rate of return	2.00%	1.40%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected term	5 years	5 years 1 month 6 days	5 years	5 years 1 month 6 days
Outstanding and exercisable option awards [Abstract]
Outstanding at end of period (in shares)	3,458,835		3,458,835
Exercisable at end of period (in shares)	2,176,719		2,176,719
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, Outstanding at end of period (in dollar per share)	$ 7.96		$ 7.96
Weighted average exercise price, Exercisable at end of period (in dollar per share)	$ 6.49		$ 6.49
Stock options, additional disclosures [Abstract]
Weighted average remaining contractual life, Outstanding at end of period			6 years 3 months 18 days
Weighted average remaining contractual life, Exercisable at end of period			5 years
Aggregate intrinsic value, Outstanding at end of period	$ 12,572		$ 12,572
Aggregate intrinsic value, Exercisable at end of period	$ 10,997		$ 10,997
Share options granted (in shares)	10,000	23,000	348,750	602,250
Weighted-average grant date fair value of options granted (in dollar per share)	$ 3.35	$ 3.74	$ 3.59	$ 4.63
Unrecognized compensation cost related to unvested option awards	$ 4,200		$ 4,200
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			1.90%	1.40%
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			2.00%	1.70%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition of compensation cost not yet recognized			3 years
Restricted Stock [Abstract]
Restricted stock awards granted (in shares)	25,000	0	285,000	115,225
Weighted average grant date fair value of restricted stock awards (in dollar per share)	$ 10.75		$ 11.30	$ 12.13
Compensation cost not yet recognized related to unvested restricted stock awards	$ 3,300		$ 3,300
Number of shares of restricted stock outstanding (in shares)	344,094		344,094
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	Apr. 30, 2016	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016	Oct. 30, 2016
INCOME TAXES [Abstract]
U.S. statutory rate		35.00%	35.00%	35.00%	35.00%
Valuation allowance change			$ 2.5
Unrecognized tax benefits		$ 4.2		$ 4.2		$ 4.6
Interest and penalties accrued related to uncertain tax positions		0.1		0.1		$ 0.1
Reduction of unrecognized tax benefit due to settlements		0.5
Amount of reasonably possible decrease in uncertain tax positions		$ 0.8		0.8
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Other income tax expense (benefit)	$ 0.7		(2.4)
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	$ 0.2	$ 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		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
Calculation of basic and diluted earnings per share [Abstract]
Net income attributable to Photronics, Inc. shareholders	$ 1,797	$ 11,854	$ 3,744	$ 32,856
Effect of dilutive securities [Abstract]
Interest expense on convertible notes, net of tax	0	875	0	1,946
Earnings for diluted earnings per share	$ 1,797	$ 12,729	$ 3,744	$ 34,802
Weighted-average common shares computations [Abstract]
Weighted-average common shares used for basic earnings per share (in shares)	68,426	67,372	68,301	67,090
Effect of dilutive securities [Abstract]
Share-based payment awards (in shares)	959	948	976	1,096
Convertible notes (in shares)	0	9,196	0	10,140
Potentially dilutive common shares (in shares)	959	10,144	976	11,236
Weighted-average common shares used for diluted earnings per share (in shares)	69,385	77,516	69,277	78,326
Basic earnings per share (in dollars per share)	$ 0.03	$ 0.18	$ 0.05	$ 0.49
Diluted earnings per share (in dollars per share)	$ 0.03	$ 0.16	$ 0.05	$ 0.44
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	6,624	2,160	6,580	1,414
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	5,542	0	5,542	0
Share-Based Payment Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	1,082	2,160	1,038	1,414

CHANGES IN ACCUMULATED OTHER 46

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	May 01, 2016	Apr. 30, 2017	May 01, 2016
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			710,363
Net other comprehensive income	18,340	23,843	17,739	2,799
Ending Balance	729,879		729,879
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(9,530)	(28,005)	(7,671)	(10,573)
Net other comprehensive income	13,701	19,159	11,842	1,726
Ending Balance	4,171	(8,846)	4,171	(8,846)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(8,448)	(27,118)	(6,567)	(9,634)
Ending Balance	5,258	(7,966)	5,258	(7,966)
Amortization of Cash Flows Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(145)	(274)	(177)	(306)
Ending Balance	(113)	(242)	(113)	(242)
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(937)	(613)	(927)	(633)
Ending Balance	(974)	(638)	(974)	(638)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	18,308	23,811	17,675	2,735
Amounts reclassified from accumulated other comprehensive income	32	32	64	64
Net other comprehensive income	18,340	23,843	17,739	2,799
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	18,382	23,861	17,768	2,746
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net other comprehensive income	18,382	23,861	17,768	2,746
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 accumulated other comprehensive income	32	32	64	64
Net other comprehensive income	32	32	64	64
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	(74)	(50)	(93)	(11)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net other comprehensive income	(74)	(50)	(93)	(11)
AOCI Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	(4,639)	(4,684)	(5,897)	(1,072)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	(4,676)	(4,709)	(5,943)	(1,078)
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	$ 37	$ 25	$ 46	$ 6

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
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 in April 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	72,663	68,230
Carrying Value [Member] | 3.25% Convertible Senior Notes due in April 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	$ 57,279	$ 57,221

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Apr. 30, 2017USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Outstanding commitments for capital expenditure	$ 62

SUBSIDIARY DIVIDEND (Details)

SUBSIDIARY DIVIDEND (Details) - USD ($) $ in Thousands	Apr. 30, 2017	May 01, 2016
Noncontrolling Interest [Line Items]
Subsidiary dividend payable	$ 8,383	$ 11,901
DNP [Member]
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling interests	49.99%
Subsidiary dividend payable	$ 8,400

GAIN ON SALE OF INVESTMENT (Det

GAIN ON SALE OF INVESTMENT (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Apr. 30, 2017	May 01, 2016	Jan. 31, 2016	Apr. 30, 2017	May 01, 2016
Schedule of Investments [Line Items]
Gain on sale of investment	$ 0	$ 0		$ 0	$ 8,785
Investment in Foreign Entity [Member]
Schedule of Investments [Line Items]
Gain on sale of investment			$ 8,800

FORMATION OF PDMCX JOINT VENT51

FORMATION OF PDMCX JOINT VENTURE (Details) - USD ($) $ in Millions	May 31, 2017	Apr. 30, 2017
Subsequent Event [Member]
Noncontrolling Interest [Line Items]
Investment funding term	5 years
PDMC [Member] | Subsequent Event [Member]
Noncontrolling Interest [Line Items]
Ownership percentage in joint venture	50.01%
DNP [Member]
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling interests		49.99%
DNP [Member] | Subsequent Event [Member]
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling interests	49.99%
PDMCX [Member] | Subsequent Event [Member]
Noncontrolling Interest [Line Items]
Planned amount of investment in joint venture	$ 160