Photronics (PLAB) 10-Q 8 Sep 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jul. 30, 2017	Aug. 28, 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		68,938,776
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 30, 2017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jul. 30, 2017	Oct. 30, 2016
Current assets:
Cash and cash equivalents	$ 340,572	$ 314,074
Accounts receivable, net of allowance of $3,215 in 2017 and $3,901 in 2016	91,812	92,636
Inventories	25,668	22,081
Other current assets	10,558	12,795
Total current assets	468,610	441,586
Property, plant and equipment, net	501,720	506,434
Intangible assets, net	18,320	19,854
Deferred income taxes	16,128	16,322
Other assets	3,820	3,792
Total assets	1,008,598	987,988
Current liabilities:
Current portion of long-term borrowings	5,541	5,428
Accounts payable	54,126	51,649
Accrued liabilities	19,643	24,240
Total current liabilities	79,310	81,317
Long-term borrowings	57,776	61,860
Other liabilities	16,384	19,337
Total liabilities	153,470	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, 68,547 shares issued and outstanding at July 30, 2017 and 68,080 shares issued and outstanding at October 30, 2016	685	681
Additional paid-in capital	545,743	541,093
Retained earnings	184,005	176,260
Accumulated other comprehensive income (loss)	8,849	(7,671)
Total Photronics, Inc. shareholders' equity	739,282	710,363
Noncontrolling interests	115,846	115,111
Total equity	855,128	825,474
Total liabilities and equity	$ 1,008,598	$ 987,988

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 30, 2017	Oct. 30, 2016
Current assets:
Accounts receivable, allowance	$ 3,215	$ 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)	68,547	68,080
Common stock, shares outstanding (in shares)	68,547	68,080

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Condensed Consolidated Statements of Income (unaudited) [Abstract]
Net sales	$ 111,579	$ 123,209	$ 329,707	$ 376,088
Costs and expenses:
Cost of sales	(89,862)	(91,759)	(264,835)	(277,915)
Gross profit	21,717	31,450	64,872	98,173
Selling, general and administrative	(11,639)	(11,163)	(33,403)	(34,386)
Research and development	(4,812)	(5,466)	(12,023)	(16,613)
Operating income	5,266	14,821	19,446	47,174
Other income (expense):
Interest and other income (expense), net	415	1,849	(4,182)	1,878
Interest expense	(549)	(612)	(1,657)	(2,750)
Gain on sale of investment	0	157	0	8,940
Income before income tax provision	5,132	16,215	13,607	55,242
Income tax provision	(333)	(4,762)	(2,814)	(6,136)
Net income	4,799	11,453	10,793	49,106
Net income attributable to noncontrolling interests	(798)	(3,365)	(3,048)	(8,162)
Net income attributable to Photronics, Inc. shareholders	$ 4,001	$ 8,088	$ 7,745	$ 40,944
Earnings per share:
Basic (in dollars per share)	$ 0.06	$ 0.12	$ 0.11	$ 0.61
Diluted (in dollars per share)	$ 0.06	$ 0.12	$ 0.11	$ 0.56
Weighted-average number of common shares outstanding:
Basic (in shares)	68,525	67,953	68,376	67,377
Diluted (in shares)	69,380	74,317	69,311	76,990

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 4,799	$ 11,453	$ 10,793	$ 49,106
Other comprehensive income, net of tax of $0:
Foreign currency translation adjustments	4,442	5,051	22,116	7,787
Amortization of cash flow hedge	32	32	96	96
Net other comprehensive income	4,474	5,083	22,212	7,883
Comprehensive income	9,273	16,536	33,005	56,989
Less: comprehensive income attributable to noncontrolling interests	594	4,538	8,740	10,408
Comprehensive income attributable to Photronics, Inc. shareholders	$ 8,679	$ 11,998	$ 24,265	$ 46,581

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 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	9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016
Cash flows from operating activities:
Net income	$ 10,793	$ 49,106
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	64,081	60,102
Gain on sale of investment	0	(8,940)
Changes in assets and liabilities:
Accounts receivable	4,031	3,936
Inventories	(2,475)	(204)
Other current assets	2,650	9,177
Accounts payable, accrued liabilities, and other	(5,291)	(21,790)
Net cash provided by operating activities	73,789	91,387
Cash flows from investing activities:
Purchases of property, plant and equipment	(38,759)	(44,828)
Acquisition of business	(5,400)	0
Proceeds from sale of investment	167	101,853
Other	(458)	584
Net cash (used in) provided by investing activities	(44,450)	57,609
Cash flows from financing activities:
Dividends paid to noncontrolling interests	(8,298)	(11,890)
Repayments of long-term borrowings	(4,057)	(56,276)
Proceeds from share-based arrangements	2,529	3,172
Other	(33)	(19)
Net cash used in financing activities	(9,859)	(65,013)
Effect of exchange rate changes on cash and cash equivalents	7,018	1,819
Net increase in cash and cash equivalents	26,498	85,802
Cash and cash equivalents at beginning of period	314,074	205,867
Cash and cash equivalents at end of period	340,572	291,669
Supplemental disclosure of non-cash information:
Accrual for property, plant and equipment purchased during the period	$ 2,572	$ 7,169

BASIS OF FINANCIAL STATEMENT PR

BASIS OF FINANCIAL STATEMENT PRESENTATION	9 Months Ended
	Jul. 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 integrated circuits ("ICs") IC We operate We have plans two facilities as we expand our global manufacturing footprint 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. We are typically impacted during our first fiscal quarter by the North American and European holiday periods, as some customers reduce their effective workdays and orders during these periods. Additionally, we our

CHANGES IN EQUITY

CHANGES IN EQUITY	9 Months Ended
	Jul. 30, 2017
CHANGES IN EQUITY [Abstract]
CHANGES IN EQUITY	NOTE 2 - CHANGES IN EQUITY The following tables set forth our Three Months Ended July 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Non- controlling Interests Total Equity Shares Amount Balance at May 1, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Net income - - - 4,001 - 798 4,799 Other comprehensive income - - - - 4,678 (204 ) 4,474 Sale of common stock through employee stock option and purchase plans 32 - 118 - - - 118 Restricted stock awards vesting and expense 19 - 409 - - - 409 Share-based compensation expense - - 574 - - - 574 Other - - (377 ) - - 377 - Balance at July 30, 2017 68,547 $ 685 $ 545,743 $ 184,005 $ 8,849 $ 115,846 $ 855,128 Three Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Non- controlling Interests Total Equity Shares Amount Balance at May 2, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772 Net income - - - 8,088 - 3,365 11,453 Other comprehensive income - - - - 3,910 1,173 5,083 Sale of common stock through employee stock option and purchase plans 7 - 53 - - - 53 Restricted stock awards vesting and expense 18 1 313 - - - 314 Share-based compensation expense - - 661 - - - 661 Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381 Nine Months Ended July 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interests Total Equity Shares Amount Balance at October 31, 2016 68,080 $ 681 $ 541,093 $ 176,260 $ (7,671 ) $ 115,111 $ 825,474 Net income - - - 7,745 - 3,048 10,793 Other comprehensive income - - - - 16,520 5,692 22,212 Sale of common stock through employee stock option and purchase plans 355 3 2,187 - - - 2,190 Restricted stock awards vesting and expense 112 1 1,137 - - - 1,138 Share-based compensation expense - - 1,703 - - - 1,703 Subsidiary dividend - - - - - (8,382 ) (8,382 ) Other - - (377 ) - - 377 - Balance at July 30, 2017 68,547 $ 685 $ 545,743 $ 184,005 $ 8,849 $ 115,846 $ 855,128 Nine Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Non- controlling Interests Total Equity Shares Amount Balance at November 2, 2015 66,602 $ 666 $ 526,402 $ 130,060 $ (10,573 ) $ 115,511 $ 762,066 Net income - - - 40,944 - 8,162 49,106 Other comprehensive income - - - - 5,637 2,246 7,883 Sale of common stock through employee stock option and purchase plans 521 5 2,890 - - - 2,895 Restricted stock awards vesting and expense 128 2 876 - - - 878 Share-based compensation expense - - 1,971 - - - 1,971 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend payable - - - - - (11,901 ) (11,901 ) Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381

INVENTORIES

INVENTORIES	9 Months Ended
	Jul. 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: July 30, 2017 October 30, 2016 Finished goods $ 358 $ 142 Work in process 4,256 2,987 Raw materials 21,054 18,952 $ 25,668 $ 22,081

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Jul. 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: July 30, 2017 October 30, 2016 Land $ 9,905 $ 8,036 Buildings and improvements 123,613 121,873 Machinery and equipment 1,551,224 1,475,755 Leasehold improvements 20,077 19,224 Furniture, fixtures and office equipment 13,030 12,700 Construction in progress 23,222 23,961 1,741,071 1,661,549 Less accumulated depreciation and amortization 1,239,351 1,155,115 $ 501,720 $ 506,434 Equipment under capital leases are included in above property, plant and equipment as follows: July 30, 2017 October 30, 2016 Machinery and equipment $ 34,917 $ 34,917 Less accumulated amortization 12,971 10,352 $ 21,946 $ 24,565 Depreciation and amortization expense for property, plant and equipment was $20.6 million and $60.5 million for the three and nine month periods ended July 30, 2017, respectively, and $18.4 million and $56.4 million for the three and nine month periods ended July 31, 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 are being 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 $0.1 million and $5.1 million in the three and nine month periods ended July 30, 2017, respectively.

JOINT VENTURE, TECHNOLOGY LICEN

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC.	9 Months Ended
	Jul. 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. The Company forevermore has the right to use the technology it acquired 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 $0.8 million and $5.7 million during the three and nine month periods ended July 31, 2016, respectively, The Company recorded a loss of $0.1 million related to its investment in MP Mask during the nine month period ended July 31, 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	9 Months Ended
	Jul. 30, 2017
LONG-TERM BORROWINGS [Abstract]
LONG-TERM BORROWINGS	NOTE 6 - LONG-TERM BORROWINGS Long-term borrowings consist of the following: July 30, 2017 October 30, 2016 3.25% convertible senior notes due in April 2019 $ 57,308 $ 57,221 2.77% capital lease obligation payable through July 2018 6,009 10,067 63,317 67,288 Less current portion 5,541 5,428 $ 57,776 $ 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 July 30, 2017. The Company had no outstanding borrowings against the credit facility at July 30, 2017, and $50 million was available for borrowing. The interest rate on the credit facility (2.49% at July 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 primarily for our new joint venture and FPD manufacturing facility in China. See Note 15 for additional discussion of our new joint venture in China and our expansion of FPD manufacturing into 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 July 30, 2017

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Jul. 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 each of the three month periods ended July 30, 2017 and July 31, 2016, was $1.0 million, and was $2.8 million for each of the nine month periods ended July 30, 2017 and July 31, 2016, respectively. The Company received cash from option exercises of $0.1 million and $2.2 million in the three and nine month periods ended July 30, 2017, respectively, and $0.1 million and $2.9 million in the three and nine month periods ended July 31, 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 nine month periods ended July 30, 2017 and July 31, 2016, are presented in the following table. Three Months Ended Nine Months Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 Volatility - 38.9 % 32.2 % 48.8 % Risk free rate of return - 1.2 % 1.9-2.0 % 1.2-1.7 % Dividend yield - 0.0 % 0.0 % 0.0 % Expected term - 5.1 years 5.0 years 5.1 years Information on outstanding and exercisable option awards as of July 30, 2017, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at July 30, 2017 3,405,060 $ 7.99 6.0 years $ 8,422 Exercisable at July 30, 2017 2,179,444 $ 6.57 4.8 years $ 7,766 There were no share options granted during the three month period ended July 30, 2017 and there were 45,000 share options granted during the three month period ended July 31, 2016, with a weighted-average grant date fair value of $3.44 per share. There were 348,750 share options granted during the nine month period ended July 30, 2017, with a weighted-average grant date fair value of $3.59 per share and 647,250 share options granted during the nine month period ended July 31, 2016, with a weighted-average grant date fair value of $4.55 per share. As of July 30, 2017, the total unrecognized compensation cost related to unvested option awards was approximately $3.6 million. That cost is expected to be recognized over a weighted-average amortization period of 2.1 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 5,000 restricted stock awards granted during the three month period ended July 30, 2017, with a grant date fair value of $10.15, and 290,000 restricted stock awards granted during the nine month period ended July 30, 2017, with a weighted-average grant date fair value of $11.28 per share. No restricted stock awards were granted during the three month period ended July 31, 2016 and 115,225 restricted stock awards were granted during the nine month period ended July 31, 2016, with a weighted-average grant date fair value of $12.13 per share. As of July 30, 2017, the total compensation cost not yet recognized related to unvested restricted stock awards was approximately $2.9 million. That cost is expected to be recognized over a weighted-average amortization period of 2.7 years. As of July 30, 2017, there were 324,181 shares of restricted stock outstanding.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Jul. 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 nine month periods ended July 30, 2017 and July 31, 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 July 31, 2016, we 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 nine month period ended July 31, 2016, we 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, we determined that we are no longer liable for this tax. In addition, during the nine month period ended July 31, 2016, $0.7 million of withholding tax was incurred upon the completion of a foreign subsidiary’s share redemption. Unrecognized tax benefits related to uncertain tax positions were $3.2 million at July 30, 2017 and $4.6 million at October 30, 2016, all of which, if recognized, would favorably impact our effective tax rate. Accrued interest and penalties related to unrecognized tax benefits was $0.1 million at July 30, 2017 and October 30, 2016. In the three and nine month periods ended July 30, 2017, the net reduction of unrecognized tax benefits was $0.8 and $1.2 respectively. The net reductions reflect the resolution of tax issues with foreign tax authorities and the expiration of assessment periods. Although the timing of the expirations of statutes of limitations may be uncertain, as they can be dependent upon the settlement of tax audits, we believe that it is reasonably possible that up to $1.1 million of our 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., our 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 nine month periods ended July 30, 2017 and July 31, 2016. Photronics DNP Mask Corporation (“PDMC”), our IC manufacturing facility in Taiwan, was accorded a tax holiday that commenced in 2015 and expires in 2019. We realized $0.1 million in tax benefits from this tax holiday in each of the three month periods ended July 30, 2017 and July 31, 2016, and $0.2 million in the nine month periods ended July 30, 2017 and July 31, 2016. This tax holiday had no per share effect in the three and nine month periods ended July 30, 2017 and July 31, 2016.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Jul. 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 Nine Months Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 Net income attributable to Photronics, Inc. shareholders $ 4,001 $ 8,088 $ 7,745 $ 40,944 Effect of dilutive securities: Interest expense on convertible notes, net of tax - 496 - 2,442 Earnings for diluted earnings per share $ 4,001 $ 8,584 $ 7,745 $ 43,386 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 68,525 67,953 68,376 67,377 Effect of dilutive securities: Share-based payment awards 855 822 935 1,006 Convertible notes - 5,542 - 8,607 Potentially dilutive common shares 855 6,364 935 9,613 Weighted-average common shares used for diluted earnings per share 69,380 74,317 69,311 76,990 Basic earnings per share $ 0.06 $ 0.12 $ 0.11 $ 0.61 Diluted earnings per share $ 0.06 $ 0.12 $ 0.11 $ 0.56 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 Nine Months Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 Convertible notes 5,542 - 5,542 - Share-based payment awards 1,087 2,016 1,054 1,615 Total potentially dilutive shares excluded 6,629 2,016 6,596 1,615

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	9 Months Ended
	Jul. 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 our accumulated other comprehensive income by component (net of tax of $0) for the three and nine month periods ended July 30, 2017 and July 31, 2016. Three Months Ended July 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at May 1, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Other comprehensive income before reclassifications 4,438 - 4 4,442 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income 4,438 32 4 4,474 Less: other comprehensive (income) loss attributable to noncontrolling interests 206 - (2 ) 204 Balance at July 30, 2017 $ 9,902 $ (81 ) $ (972 ) $ 8,849 Three Months Ended July 31, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at May 2, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 ) Other comprehensive income (loss) before reclassifications 5,064 - (13 ) 5,051 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 5,064 32 (13 ) 5,083 Less: other comprehensive (income) loss attributable to noncontrolling interests (1,180 ) - 7 (1,173 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 ) Nine Months Ended July 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 22,205 - (89 ) 22,116 Amounts reclassified from accumulated other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) 22,205 96 (89 ) 22,212 Less: other comprehensive (income)loss attributable to noncontrolling interests (5,736 ) - 44 (5,692 ) Balance at July 30, 2017 $ 9,902 $ (81 ) $ (972 ) $ 8,849 Nine Months Ended July 31, 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 7,810 - (23 ) 7,787 Amounts reclassified from accumulated other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) 7,810 96 (23 ) 7,883 Less: other comprehensive (income) loss attributable to noncontrolling interests (2,258 ) - 12 (2,246 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 ) The amortization of the cash flow hedge is included in cost of sales in the condensed consolidated statements of income for all periods presented.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Jul. 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. We we Fair Value of Other Financial Instruments The fair values of our our our ours The table below presents the fair and carrying values of our July 30, 2017 October 30, 2016 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 68,644 $ 57,308 $ 68,230 $ 57,221

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jul. 30, 2017
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES As of July 30, 2017, we We are We believe our

SUBSIDIARY DIVIDEND

SUBSIDIARY DIVIDEND	9 Months Ended
	Jul. 30, 2017
SUBSIDIARY DIVIDEND [Abstract]
SUBSIDIARY DIVIDEND	NOTE 13 - SUBSIDIARY DIVIDEND In April 2017 PDMC, our

GAIN ON SALE OF INVESTMENT

GAIN ON SALE OF INVESTMENT	9 Months Ended
	Jul. 30, 2017
GAIN ON SALE OF INVESTMENT [Abstract]
GAIN ON SALE OF INVESTMENT	NOTE 14 - GAIN ON SALE OF INVESTMENT We we

EXPANSION INTO CHINA

EXPANSION INTO CHINA	9 Months Ended
	Jul. 30, 2017
EXPANSION INTO CHINA [Abstract]
EXPANSION INTO CHINA	NOTE 15 – EXPANSION INTO CHINA Expansion of IC Manufacturing into China In May 2017 we announced that we have This IC investment in China of $160 million, which we initially announced in August 2016, will be based in Xiamen, China. Construction of the facility is currently underway, and production is anticipated to commence in early 2019. Photronics and DNP will contribute cash, in proportion to their ownership percentages, over five years to fund the equity portion of the investment, which will also receive certain incentives and support from the local industrial development zone. 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 our 2017 fiscal year. Expansion of FPD Manufacturing into China In August 2017 we announced that Photronics, UK, Ltd., a wholly owned subsidiary of ours, signed an investment agreement with Hefei State Hi-tech Industry Development Zone to establish a manufacturing facility in Hefei, China. Under the terms of the agreement, through our subsidiary, we will invest a minimum of $160 million, a portion of which may be funded with local

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Jul. 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)	9 Months Ended
	Jul. 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)	9 Months Ended
	Jul. 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)	9 Months Ended
	Jul. 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)	9 Months Ended
	Jul. 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)	9 Months Ended
	Jul. 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)	9 Months Ended
	Jul. 30, 2017
CHANGES IN EQUITY [Abstract]
Consolidated changes in equity	The following tables set forth our Three Months Ended July 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Non- controlling Interests Total Equity Shares Amount Balance at May 1, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Net income - - - 4,001 - 798 4,799 Other comprehensive income - - - - 4,678 (204 ) 4,474 Sale of common stock through employee stock option and purchase plans 32 - 118 - - - 118 Restricted stock awards vesting and expense 19 - 409 - - - 409 Share-based compensation expense - - 574 - - - 574 Other - - (377 ) - - 377 - Balance at July 30, 2017 68,547 $ 685 $ 545,743 $ 184,005 $ 8,849 $ 115,846 $ 855,128 Three Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Non- controlling Interests Total Equity Shares Amount Balance at May 2, 2016 67,943 $ 679 $ 538,535 $ 162,916 $ (8,846 ) $ 109,488 $ 802,772 Net income - - - 8,088 - 3,365 11,453 Other comprehensive income - - - - 3,910 1,173 5,083 Sale of common stock through employee stock option and purchase plans 7 - 53 - - - 53 Restricted stock awards vesting and expense 18 1 313 - - - 314 Share-based compensation expense - - 661 - - - 661 Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381 Nine Months Ended July 30, 2017 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interests Total Equity Shares Amount Balance at October 31, 2016 68,080 $ 681 $ 541,093 $ 176,260 $ (7,671 ) $ 115,111 $ 825,474 Net income - - - 7,745 - 3,048 10,793 Other comprehensive income - - - - 16,520 5,692 22,212 Sale of common stock through employee stock option and purchase plans 355 3 2,187 - - - 2,190 Restricted stock awards vesting and expense 112 1 1,137 - - - 1,138 Share-based compensation expense - - 1,703 - - - 1,703 Subsidiary dividend - - - - - (8,382 ) (8,382 ) Other - - (377 ) - - 377 - Balance at July 30, 2017 68,547 $ 685 $ 545,743 $ 184,005 $ 8,849 $ 115,846 $ 855,128 Nine Months Ended July 31, 2016 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Non- controlling Interests Total Equity Shares Amount Balance at November 2, 2015 66,602 $ 666 $ 526,402 $ 130,060 $ (10,573 ) $ 115,511 $ 762,066 Net income - - - 40,944 - 8,162 49,106 Other comprehensive income - - - - 5,637 2,246 7,883 Sale of common stock through employee stock option and purchase plans 521 5 2,890 - - - 2,895 Restricted stock awards vesting and expense 128 2 876 - - - 878 Share-based compensation expense - - 1,971 - - - 1,971 Conversion of debt to common stock 717 7 7,431 - - - 7,438 Repurchase of common stock of subsidiary - - (8 ) - - 8 - Subsidiary dividend payable - - - - - (11,901 ) (11,901 ) Return of capital to noncontrolling interests - - - - - (955 ) (955 ) Balance at July 31, 2016 67,968 $ 680 $ 539,562 $ 171,004 $ (4,936 ) $ 113,071 $ 819,381

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jul. 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: July 30, 2017 October 30, 2016 Finished goods $ 358 $ 142 Work in process 4,256 2,987 Raw materials 21,054 18,952 $ 25,668 $ 22,081

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Jul. 30, 2017
PROPERTY, PLANT AND EQUIPMENT [Abstract]
Property, plant and equipment	Property, plant and equipment consist of the following: July 30, 2017 October 30, 2016 Land $ 9,905 $ 8,036 Buildings and improvements 123,613 121,873 Machinery and equipment 1,551,224 1,475,755 Leasehold improvements 20,077 19,224 Furniture, fixtures and office equipment 13,030 12,700 Construction in progress 23,222 23,961 1,741,071 1,661,549 Less accumulated depreciation and amortization 1,239,351 1,155,115 $ 501,720 $ 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: July 30, 2017 October 30, 2016 Machinery and equipment $ 34,917 $ 34,917 Less accumulated amortization 12,971 10,352 $ 21,946 $ 24,565

LONG-TERM BORROWINGS (Tables)

LONG-TERM BORROWINGS (Tables)	9 Months Ended
	Jul. 30, 2017
LONG-TERM BORROWINGS [Abstract]
Long-term borrowings	Long-term borrowings consist of the following: July 30, 2017 October 30, 2016 3.25% convertible senior notes due in April 2019 $ 57,308 $ 57,221 2.77% capital lease obligation payable through July 2018 6,009 10,067 63,317 67,288 Less current portion 5,541 5,428 $ 57,776 $ 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)	9 Months Ended
	Jul. 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 nine month periods ended July 30, 2017 and July 31, 2016, are presented in the following table. Three Months Ended Nine Months Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 Volatility - 38.9 % 32.2 % 48.8 % Risk free rate of return - 1.2 % 1.9-2.0 % 1.2-1.7 % Dividend yield - 0.0 % 0.0 % 0.0 % Expected term - 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 July 30, 2017, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at July 30, 2017 3,405,060 $ 7.99 6.0 years $ 8,422 Exercisable at July 30, 2017 2,179,444 $ 6.57 4.8 years $ 7,766

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Jul. 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 Nine Months Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 Net income attributable to Photronics, Inc. shareholders $ 4,001 $ 8,088 $ 7,745 $ 40,944 Effect of dilutive securities: Interest expense on convertible notes, net of tax - 496 - 2,442 Earnings for diluted earnings per share $ 4,001 $ 8,584 $ 7,745 $ 43,386 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 68,525 67,953 68,376 67,377 Effect of dilutive securities: Share-based payment awards 855 822 935 1,006 Convertible notes - 5,542 - 8,607 Potentially dilutive common shares 855 6,364 935 9,613 Weighted-average common shares used for diluted earnings per share 69,380 74,317 69,311 76,990 Basic earnings per share $ 0.06 $ 0.12 $ 0.11 $ 0.61 Diluted earnings per share $ 0.06 $ 0.12 $ 0.11 $ 0.56
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 Nine Months Ended July 30, 2017 July 31, 2016 July 30, 2017 July 31, 2016 Convertible notes 5,542 - 5,542 - Share-based payment awards 1,087 2,016 1,054 1,615 Total potentially dilutive shares excluded 6,629 2,016 6,596 1,615

CHANGES IN ACCUMULATED OTHER 35

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables)	9 Months Ended
	Jul. 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 our accumulated other comprehensive income by component (net of tax of $0) for the three and nine month periods ended July 30, 2017 and July 31, 2016. Three Months Ended July 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at May 1, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Other comprehensive income before reclassifications 4,438 - 4 4,442 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income 4,438 32 4 4,474 Less: other comprehensive (income) loss attributable to noncontrolling interests 206 - (2 ) 204 Balance at July 30, 2017 $ 9,902 $ (81 ) $ (972 ) $ 8,849 Three Months Ended July 31, 2016 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at May 2, 2016 $ (7,966 ) $ (242 ) $ (638 ) $ (8,846 ) Other comprehensive income (loss) before reclassifications 5,064 - (13 ) 5,051 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 5,064 32 (13 ) 5,083 Less: other comprehensive (income) loss attributable to noncontrolling interests (1,180 ) - 7 (1,173 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 ) Nine Months Ended July 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 22,205 - (89 ) 22,116 Amounts reclassified from accumulated other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) 22,205 96 (89 ) 22,212 Less: other comprehensive (income)loss attributable to noncontrolling interests (5,736 ) - 44 (5,692 ) Balance at July 30, 2017 $ 9,902 $ (81 ) $ (972 ) $ 8,849 Nine Months Ended July 31, 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 7,810 - (23 ) 7,787 Amounts reclassified from accumulated other comprehensive income - 96 - 96 Net current period other comprehensive income (loss) 7,810 96 (23 ) 7,883 Less: other comprehensive (income) loss attributable to noncontrolling interests (2,258 ) - 12 (2,246 ) Balance at July 31, 2016 $ (4,082 ) $ (210 ) $ (644 ) $ (4,936 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Jul. 30, 2017
FAIR VALUE MEASUREMENTS [Abstract]
Fair and carrying values of convertible senior notes	The table below presents the fair and carrying values of our July 30, 2017 October 30, 2016 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 68,644 $ 57,308 $ 68,230 $ 57,221

BASIS OF FINANCIAL STATEMENT 37

BASIS OF FINANCIAL STATEMENT PRESENTATION (Details)	9 Months Ended
	Jul. 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		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Class of Stock [Line Items]
Beginning balance	$ 844,754	$ 802,772	$ 825,474	$ 762,066
Net income	4,799	11,453	10,793	49,106
Other comprehensive income	4,474	5,083	22,212	7,883
Sale of common stock through employee stock option and purchase plans	118	53	2,190	2,895
Restricted stock awards vesting and expense	409	314	1,138	878
Share-based compensation expense	574	661	1,703	1,971
Conversion of debt to common stock				7,438
Repurchase of common stock by subsidiary				0
Return of capital to noncontrolling interests		(955)		(955)
Subsidiary dividend			(8,382)	(11,901)
Other	0		0
Ending balance	855,128	819,381	855,128	819,381
Common Stock [Member]
Class of Stock [Line Items]
Beginning balance	$ 685	$ 679	$ 681	$ 666
Beginning balance (in shares)	68,496	67,943	68,080	66,602
Net income	$ 0	$ 0	$ 0	$ 0
Other comprehensive income	0	0	0	0
Sale of common stock through employee stock option and purchase plans	$ 0	$ 0	$ 3	$ 5
Sale of common stock through employee stock option and purchase plans (in shares)	32	7	355	521
Restricted stock awards vesting and expense	$ 0	$ 1	$ 1	$ 2
Restricted stock awards vesting and expense (in shares)	19	18	112	128
Share-based compensation expense	$ 0	$ 0	$ 0	$ 0
Conversion of debt to common stock				$ 7
Conversion of debt to common stock (in shares)				717
Repurchase of common stock by subsidiary				$ 0
Return of capital to noncontrolling interests		0		0
Subsidiary dividend			0	0
Other	0		0
Ending balance	$ 685	$ 680	$ 685	$ 680
Ending balance (in shares)	68,547	67,968	68,547	67,968
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Beginning balance	$ 545,019	$ 538,535	$ 541,093	$ 526,402
Net income	0	0	0	0
Other comprehensive income	0	0	0	0
Sale of common stock through employee stock option and purchase plans	118	53	2,187	2,890
Restricted stock awards vesting and expense	409	313	1,137	876
Share-based compensation expense	574	661	1,703	1,971
Conversion of debt to common stock				7,431
Repurchase of common stock by subsidiary				(8)
Return of capital to noncontrolling interests		0		0
Subsidiary dividend			0	0
Other	(377)		(377)
Ending balance	545,743	539,562	545,743	539,562
Retained Earnings [Member]
Class of Stock [Line Items]
Beginning balance	180,004	162,916	176,260	130,060
Net income	4,001	8,088	7,745	40,944
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
Repurchase of common stock by subsidiary				0
Return of capital to noncontrolling interests		0		0
Subsidiary dividend			0	0
Other	0		0
Ending balance	184,005	171,004	184,005	171,004
Accumulated Other Comprehensive Income (Loss) [Member]
Class of Stock [Line Items]
Beginning balance	4,171	(8,846)	(7,671)	(10,573)
Net income	0	0	0	0
Other comprehensive income	4,678	3,910	16,520	5,637
Sale of common stock through employee stock option and purchase plans	0	0	0	0
Restricted stock awards vesting and expense	0	0	0	0
Share-based compensation expense	0	0	0	0
Conversion of debt to common stock				0
Repurchase of common stock by subsidiary				0
Return of capital to noncontrolling interests		0		0
Subsidiary dividend			0	0
Other	0		0
Ending balance	8,849	(4,936)	8,849	(4,936)
Non-controlling Interests [Member]
Class of Stock [Line Items]
Beginning balance	114,875	109,488	115,111	115,511
Net income	798	3,365	3,048	8,162
Other comprehensive income	(204)	1,173	5,692	2,246
Sale of common stock through employee stock option and purchase plans	0	0	0	0
Restricted stock awards vesting and expense	0	0	0	0
Share-based compensation expense	0	0	0	0
Conversion of debt to common stock				0
Repurchase of common stock by subsidiary				8
Return of capital to noncontrolling interests		(955)		(955)
Subsidiary dividend			(8,382)	(11,901)
Other	377		377
Ending balance	$ 115,846	$ 113,071	$ 115,846	$ 113,071

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jul. 30, 2017	Oct. 30, 2016
INVENTORIES [Abstract]
Finished goods	$ 358	$ 142
Work in process	4,256	2,987
Raw materials	21,054	18,952
Inventory	$ 25,668	$ 22,081

PROPERTY, PLANT AND EQUIPMENT40

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Jan. 29, 2017	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016	Oct. 30, 2016
Property, plant and equipment [Abstract]
Property, plant and equipment, gross		$ 1,741,071		$ 1,741,071		$ 1,661,549
Less accumulated depreciation and amortization		1,239,351		1,239,351		1,155,115
Property, plant and equipment, net		501,720		501,720		506,434
Depreciation and amortization expense		20,600	$ 18,400	60,500	$ 56,400
Equipment under capital leases included in property, plant and equipment [Abstract]
Machinery and equipment		34,917		34,917		34,917
Less accumulated amortization		12,971		12,971		10,352
Capital leased assets, net		21,946		21,946		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		100		5,100
Land [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross		9,905		9,905		8,036
Buildings and Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross		123,613		123,613		121,873
Machinery and Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross		1,551,224		1,551,224		1,475,755
Leasehold Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross		20,077		20,077		19,224
Furniture, Fixtures and Office Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross		13,030		13,030		12,700
Construction in Progress [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross		$ 23,222		$ 23,222		$ 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		9 Months Ended
	May 31, 2016	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 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		$ 89,862	$ 91,759	$ 264,835	$ 277,915
Research and development expenses		$ 4,812	5,466	$ 12,023	16,613
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			$ 800		5,700
Research and development expenses					500
Loss from variable interest entity					$ 100

LONG-TERM BORROWINGS (Details)

LONG-TERM BORROWINGS (Details)	1 Months Ended		9 Months Ended
	Jan. 31, 2015USD ($)shares$ / shares	Mar. 31, 2011USD ($)shares$ / shares	Jul. 30, 2017USD ($)	Jan. 29, 2017USD ($)	Oct. 30, 2016USD ($)
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 63,317,000		$ 67,288,000
Less current portion			5,541,000		5,428,000
Long-term debt and capital lease obligations non current			57,776,000		61,860,000
Debt Issuance Costs [Abstract]
Other Assets			3,820,000		3,792,000
Long-term Borrowings			$ 57,776,000		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			2.49%
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			$ 57,308,000		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			$ 6,009,000		$ 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			$ 6,100,000
Interest included in lease payments			$ 100,000

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 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	$ 1,000	$ 1,000	$ 2,800	$ 2,800
Cash received from option exercises	100	100	2,200	2,900
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 1 month 6 days
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Volatility	0.00%	38.90%	32.20%	48.80%
Risk free rate of return	0.00%	1.20%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected term	0 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)	3,405,060		3,405,060
Exercisable at end of period (in shares)	2,179,444		2,179,444
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, Outstanding at end of period (in dollar per share)	$ 7.99		$ 7.99
Weighted average exercise price, Exercisable at end of period (in dollar per share)	$ 6.57		$ 6.57
Stock options, additional disclosures [Abstract]
Weighted average remaining contractual life, Outstanding at end of period			6 years
Weighted average remaining contractual life, Exercisable at end of period			4 years 9 months 18 days
Aggregate intrinsic value, Outstanding at end of period	$ 8,422		$ 8,422
Aggregate intrinsic value, Exercisable at end of period	$ 7,766		$ 7,766
Share options granted (in shares)	0	45,000	348,750	647,250
Weighted-average grant date fair value of options granted (in dollar per share)		$ 3.44	$ 3.59	$ 4.55
Unrecognized compensation cost related to unvested option awards	$ 3,600		$ 3,600
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%	1.20%
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			2 years 8 months 12 days
Restricted Stock [Abstract]
Restricted stock awards granted (in shares)	5,000	0	290,000	115,225
Weighted average grant date fair value of restricted stock awards (in dollar per share)	$ 10.15		$ 11.28	$ 12.13
Compensation cost not yet recognized related to unvested restricted stock awards	$ 2,900		$ 2,900
Number of shares of restricted stock outstanding (in shares)	324,181		324,181
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			1 year
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			4 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 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	$ 3.2		$ 3.2		$ 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	0.8		1.2
Amount of reasonably possible decrease in uncertain tax positions	$ 1.1		1.1
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Other income tax expense (benefit)				$ (2.4)
Tax incurred withheld upon the completion of a foreign subsidiary's share redemption				0.7
Foreign Tax Authority [Member] | PKLT [Member]
Income Tax Holiday [Line Items]
Income tax holiday termination date	October 31, 2017
Dollar effect of income tax holiday	$ 0	$ 0	$ 0	$ 0
Per share effect of income tax holiday (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Foreign Tax Authority [Member] | PDMC [Member]
Income Tax Holiday [Line Items]
Income tax holiday termination date	October 31, 2019
Dollar effect of income tax holiday	$ 0.1	$ 0.1	$ 0.2	$ 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		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Calculation of basic and diluted earnings per share [Abstract]
Net income attributable to Photronics, Inc. shareholders	$ 4,001	$ 8,088	$ 7,745	$ 40,944
Effect of dilutive securities [Abstract]
Interest expense on convertible notes, net of tax	0	496	0	2,442
Earnings for diluted earnings per share	$ 4,001	$ 8,584	$ 7,745	$ 43,386
Weighted-average common shares computations [Abstract]
Weighted-average common shares used for basic earnings per share (in shares)	68,525	67,953	68,376	67,377
Effect of dilutive securities [Abstract]
Share-based payment awards (in shares)	855	822	935	1,006
Convertible notes (in shares)	0	5,542	0	8,607
Potentially dilutive common shares (in shares)	855	6,364	935	9,613
Weighted-average common shares used for diluted earnings per share (in shares)	69,380	74,317	69,311	76,990
Basic earnings per share (in dollars per share)	$ 0.06	$ 0.12	$ 0.11	$ 0.61
Diluted earnings per share (in dollars per share)	$ 0.06	$ 0.12	$ 0.11	$ 0.56
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	6,629	2,016	6,596	1,615
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)	1,087	2,016	1,054	1,615

CHANGES IN ACCUMULATED OTHER 46

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jul. 30, 2017	Jul. 31, 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	4,474	5,083	22,212	7,883
Ending Balance	739,282		739,282
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	4,171	(8,846)	(7,671)	(10,573)
Net other comprehensive income	4,678	3,910	16,520	5,637
Ending Balance	8,849	(4,936)	8,849	(4,936)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	5,258	(7,966)	(6,567)	(9,634)
Ending Balance	9,902	(4,082)	9,902	(4,082)
Amortization of Cash Flows Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(113)	(242)	(177)	(306)
Ending Balance	(81)	(210)	(81)	(210)
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(974)	(638)	(927)	(633)
Ending Balance	(972)	(644)	(972)	(644)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	4,442	5,051	22,116	7,787
Amounts reclassified from accumulated other comprehensive income	32	32	96	96
Net other comprehensive income	4,474	5,083	22,212	7,883
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	4,438	5,064	22,205	7,810
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net other comprehensive income	4,438	5,064	22,205	7,810
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	96	96
Net other comprehensive income	32	32	96	96
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	4	(13)	(89)	(23)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net other comprehensive income	4	(13)	(89)	(23)
AOCI Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	204	(1,173)	(5,692)	(2,246)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	206	(1,180)	(5,736)	(2,258)
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	$ (2)	$ 7	$ 44	$ 12

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jul. 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	68,644	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	$ 57,308	$ 57,221

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jul. 30, 2017USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Outstanding commitments for capital expenditure	$ 60

SUBSIDIARY DIVIDEND (Details)

SUBSIDIARY DIVIDEND (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Apr. 30, 2017	Jul. 30, 2017	Jul. 31, 2016	May 31, 2017
Noncontrolling Interest [Line Items]
Subsidiary dividends declared		$ 8,382	$ 11,901
Subsidiary dividends paid		8,298	$ 11,890
DNP [Member]
Noncontrolling Interest [Line Items]
Subsidiary dividends declared	$ 16,600
Ownership percentage of noncontrolling interests	49.99%			49.99%
Subsidiary dividends paid		$ 8,298

GAIN ON SALE OF INVESTMENT (Det

GAIN ON SALE OF INVESTMENT (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jul. 30, 2017	Jul. 31, 2016	Jan. 31, 2016	Jul. 30, 2017	Jul. 31, 2016
Schedule of Investments [Line Items]
Gain on sale of investment	$ 0	$ 157		$ 0	$ 8,940
Investment in Foreign Entity [Member]
Schedule of Investments [Line Items]
Gain on sale of investment			$ 8,800

EXPANSION INTO CHINA (Details)

EXPANSION INTO CHINA (Details) - USD ($) $ in Millions	May 31, 2017	Aug. 31, 2017	Apr. 30, 2017
Noncontrolling Interest [Line Items]
Planned amount of investment in new facility	$ 160
Investment funding term	5 years
FPD Manufacturing Facility [Member] | Subsequent Event [Member] | Minimum [Member]
Noncontrolling Interest [Line Items]
Planned amount of investment in new facility		$ 160
DNP [Member]
Noncontrolling Interest [Line Items]
Ownership percentage of noncontrolling interests	49.99%		49.99%
PLAB Singapore [Member]
Noncontrolling Interest [Line Items]
Ownership percentage in joint venture		50.01%