Photronics (PLAB) 10-Q 5 Jun 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 29, 2018	May 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	PHOTRONICS INC
Entity Central Index Key	810,136
Current Fiscal Year End Date	--10-28
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		69,934,196
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 29, 2018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Apr. 29, 2018	Oct. 29, 2017
Current assets:
Cash and cash equivalents	$ 321,246	$ 308,021
Accounts receivable, net of allowance of $2,449 in 2018 and $2,319 in 2017	124,331	105,320
Inventories	31,936	23,703
Prepaid expenses	7,542	3,162
Other current assets	15,244	8,918
Total current assets	500,299	449,124
Property, plant and equipment, net	563,313	535,197
Intangible assets, net	14,708	17,122
Deferred income taxes	19,925	15,481
Other assets	4,036	3,870
Total assets	1,102,281	1,020,794
Current liabilities:
Current portion of long-term borrowings	59,263	4,639
Accounts payable	64,944	50,834
Accrued liabilities	42,301	26,303
Total current liabilities	166,508	81,776
Long-term borrowings	0	57,337
Other liabilities	17,707	16,386
Total liabilities	184,215	155,499
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, 69,443 shares issued and outstanding at April 29, 2018 and 68,666 shares issued and outstanding at October 29, 2017	694	687
Additional paid-in capital	552,977	547,596
Retained earnings	205,953	189,390
Accumulated other comprehensive income	23,756	6,891
Total Photronics, Inc. shareholders' equity	783,380	744,564
Noncontrolling interests	134,686	120,731
Total equity	918,066	865,295
Total liabilities and equity	$ 1,102,281	$ 1,020,794

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Apr. 29, 2018	Oct. 29, 2017
Current assets:
Accounts receivable, allowance	$ 2,449	$ 2,319
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)	69,443	68,666
Common stock, shares outstanding (in shares)	69,443	68,666

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017
Condensed Consolidated Statements of Income (unaudited) [Abstract]
Revenue	$ 130,779	$ 108,297	$ 254,225	$ 218,128
Cost of goods sold	(97,960)	(88,140)	(193,744)	(174,973)
Gross profit	32,819	20,157	60,481	43,155
Operating expenses:
Selling, general and administrative	(13,637)	(10,894)	(25,387)	(21,764)
Research and development	(3,817)	(3,726)	(7,921)	(7,212)
Total operating expenses	(17,454)	(14,620)	(33,308)	(28,976)
Operating income	15,365	5,537	27,173	14,179
Other income (expense):
Interest income and other income (expense), net	3,883	(3,073)	351	(4,596)
Interest expense	(551)	(549)	(1,125)	(1,108)
Income before income taxes	18,697	1,915	26,399	8,475
Income tax provision	(3,508)	(431)	(1,729)	(2,481)
Net income	15,189	1,484	24,670	5,994
Net (income) loss attributable to noncontrolling interests	(4,524)	313	(8,107)	(2,250)
Net income attributable to Photronics, Inc. shareholders	$ 10,665	$ 1,797	$ 16,563	$ 3,744
Earnings per share:
Basic (in dollars per share)	$ 0.15	$ 0.03	$ 0.24	$ 0.05
Diluted (in dollars per share)	$ 0.15	$ 0.03	$ 0.23	$ 0.05
Weighted-average number of common shares outstanding:
Basic (in shares)	69,293	68,426	69,024	68,301
Diluted (in shares)	75,190	69,385	75,052	69,277

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017
Consolidated Statements of Comprehensive Income (unaudited) [Abstract]
Net income	$ 15,189	$ 1,484	$ 24,670	$ 5,994
Other comprehensive income (loss), net of tax of $0:
Foreign currency translation adjustments	(11,098)	18,382	18,989	17,769
Amortization of cash flow hedge	16	32	48	64
Other	54	(74)	22	(94)
Net other comprehensive income (loss )	(11,028)	18,340	19,059	17,739
Comprehensive income	4,161	19,824	43,729	23,733
Less: comprehensive income attributable to noncontrolling interests	1,841	4,326	10,301	8,147
Comprehensive income attributable to Photronics, Inc. shareholders	$ 2,320	$ 15,498	$ 33,428	$ 15,586

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017
Consolidated Statements of Comprehensive Income (unaudited) [Abstract]
Other comprehensive income, tax	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017
Cash flows from operating activities:
Net income	$ 24,670	$ 5,994
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,429	42,242
Changes in assets and liabilities:
Accounts receivable	(16,976)	4,204
Inventories	(7,765)	(1,506)
Other current assets	(9,666)	2,103
Accounts payable, accrued liabilities, and other	3,216	(6,130)
Net cash provided by operating activities	37,908	46,907
Cash flows from investing activities:
Purchases of property, plant and equipment	(44,129)	(14,152)
Acquisition of business	0	(5,400)
Proceeds from sale of investment	0	167
Other	436	(462)
Net cash used in investing activities	(43,693)	(19,847)
Cash flows from financing activities:
Repayments of long-term borrowings	(2,771)	(2,695)
Contribution from noncontrolling interest	11,998	0
Proceeds from share-based arrangements	3,776	2,311
Other	(267)	(23)
Net cash provided by (used in) financing activities	12,736	(407)
Effect of exchange rate changes on cash and cash equivalents	6,274	4,997
Net increase in cash and cash equivalents	13,225	31,650
Cash and cash equivalents at beginning of period	308,021	314,074
Cash and cash equivalents at end of period	321,246	345,724
Supplemental disclosure information:
Accrual for property, plant and equipment purchased during the period	10,317	11,409
Subsidiary dividend payable	$ 8,196	$ 8,383

BASIS OF FINANCIAL STATEMENT PR

BASIS OF FINANCIAL STATEMENT PRESENTATION	6 Months Ended
	Apr. 29, 2018
BASIS OF FINANCIAL STATEMENT PRESENTATION [Abstract]
BASIS OF FINANCIAL STATEMENT PRESENTATION	NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION Photronics, Inc. ("Photronics", "the Company", "we", “our”, or "us") is one of the world's leading manufacturers of photomasks, which are high precision photographic quartz or glass plates containing microscopic images of electronic circuits. Photomasks are a key element in the manufacture of semiconductors and flat panel displays ("FPDs"), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel display substrates during the fabrication of integrated circuits ("ICs" or “semiconductors”) and a variety of FPDs and, to a lesser extent, other types of electrical and optical components. We currently operate principally from nine manufacturing facilities, two of which are located in Europe, three in Taiwan, one in Korea, and three in the United States. We have commenced construction of two manufacturing facilities in China and anticipate production to begin at these facilities during the first half of 2019. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, adjustments, all of which are of a normal recurring nature, considered necessary for a fair presentation have been included. Our business is typically impacted during the first, and sometimes the second, quarter of our fiscal year by the North American, European, and Asian holiday periods, as some customers reduce their development and buying activities during those periods. Operating results for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ending October 28, 2018. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended October 29, 2017.

CHANGES IN EQUITY

CHANGES IN EQUITY	6 Months Ended
	Apr. 29, 2018
CHANGES IN EQUITY [Abstract]
CHANGES IN EQUITY	NOTE 2 - CHANGES IN EQUITY The following tables set forth our consolidated changes in equity for the three and six month periods ended April 29, 2018 and April 30, 2017: Three Months Ended April 29, 2018 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Non- controlling Interests Total Equity Shares Amount Balance at January 29, 2018 68,869 $ 689 $ 549,328 $ 195,288 $ 32,128 $ 141,014 $ 918,447 Net income - - - 10,665 - 4,524 15,189 Other comprehensive loss - - - - (8,372 ) (2,656 ) (11,028 ) Sale of common stock through employee stock option and purchase plans 548 5 2,892 - - - 2,897 Restricted stock awards vesting and expense 26 - 457 - - - 457 Share-based compensation expense - - 300 - - - 300 Subsidiary dividend payable - - - - - (8,196 ) (8,196 ) Balance at April 29, 2018 69,443 $ 694 $ 552,977 $ 205,953 $ 23,756 $ 134,686 $ 918,066 Three Months Ended April 30, 2017 Photronics, Inc. Shareholders Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interests Total Equity Common Stock Shares Amount Balance at January 30, 2017 68,333 $ 683 $ 543,116 $ 178,207 $ (9,530 ) $ 118,932 $ 831,408 Net income (loss) - - - 1,797 - (313 ) 1,484 Other comprehensive income - - - - 13,701 4,639 18,340 Sale of common stock through employee stock option and purchase plans 148 2 982 - - - 984 Restricted stock awards vesting and expense 15 - 431 - - - 431 Share-based compensation expense - - 490 - - - 490 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Six Months Ended April 29, 2018 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Non- controlling Interests Total Equity Shares Amount Balance at October 30, 2017 68,666 $ 687 $ 547,596 $ 189,390 $ 6,891 $ 120,731 $ 865,295 Net income - - - 16,563 - 8,107 24,670 Other comprehensive income - - - - 16,865 2,194 19,059 Sale of common stock through employee stock option and purchase plans 664 7 3,592 - - - 3,599 Restricted stock awards vesting and expense 113 - 843 - - - 843 Share-based compensation expense - - 798 - - - 798 Contribution from noncontrolling interest - - 148 - - 11,850 11,998 Subsidiary dividend payable - - - - - (8,196 ) (8,196 ) Balance at April 29, 2018 69,443 $ 694 $ 552,977 $ 205,953 $ 23,756 $ 134,686 $ 918,066 Six Months Ended April 30, 2017 Photronics, Inc. Shareholders Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interests Total Equity Common Stock Shares Amount Balance at October 31, 2016 68,080 $ 681 $ 541,093 $ 176,260 $ (7,671 ) $ 115,111 $ 825,474 Net income - - - 3,744 - 2,250 5,994 Other comprehensive income - - - - 11,842 5,897 17,739 Sale of common stock through employee stock option and purchase plans 323 3 2,068 - - - 2,071 Restricted stock awards vesting and expense 93 1 728 - - - 729 Share-based compensation expense - - 1,130 - - - 1,130 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754

INVENTORIES

INVENTORIES	6 Months Ended
	Apr. 29, 2018
INVENTORIES [Abstract]
INVENTORIES	NOTE 3 - INVENTORIES Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or net realizable value. Presented below are the components of inventory at the balance sheet dates: April 29, 2018 October 29, 2017 Finished goods $ 2,011 $ 664 Work in process 4,901 2,957 Raw materials 25,024 20,082 $ 31,936 $ 23,703

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Apr. 29, 2018
PROPERTY, PLANT AND EQUIPMENT [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 4 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: April 29, 2018 October 29, 2017 Land $ 11,697 $ 9,959 Buildings and improvements 127,148 125,290 Machinery and equipment 1,609,456 1,547,870 Leasehold improvements 20,415 20,050 Furniture, fixtures and office equipment 13,816 12,989 Construction in progress 83,554 72,045 1,866,086 1,788,203 Accumulated depreciation and amortization (1,302,773 ) (1,253,006 ) $ 563,313 $ 535,197 Equipment under capital leases is included in the property, plant and equipment amount, above, as follows: April 29, 2018 October 29, 2017 Machinery and equipment $ 34,917 $ 34,917 Accumulated amortization (19,328 ) (13,843 ) $ 15,589 $ 21,074 Depreciation and amortization expense for property, plant and equipment was $20.8 million and $42.0 million for the three and six month periods ended April 29, 2018, respectively, and $20.1 million and $39.8 million for the three and six month periods ended April 30, 2017, respectively. During the three month period ended January 29, 2017, we entered into noncash transactions with a customer for the acquisition of equipment, under which we acquired equipment with fair value of $6.7 million in the six month period ended April 29, 2018, and $2.8 million and $5.0 million in the three and six month periods ended April 30, 2017, respectively. We did not acquire any equipment under this agreement during the three month period ended April 29, 2018.

PDMCX JOINT VENTURE

PDMCX JOINT VENTURE	6 Months Ended
	Apr. 29, 2018
PDMCX JOINT VENTURE [Abstract]
PDMCX JOINT VENTURE	NOTE 5 - PDMCX JOINT VENTURE In January 2018, Photronics, through its wholly-owned Singapore subsidiary (hereinafter, within this Note “we”, or “Photronics”), and Dai Nippon Printing Co., Ltd., through its wholly owned subsidiary “DNP Asia Pacific PTE, Ltd.” (hereinafter, within this Note “DNP”) entered into a joint venture under which DNP obtained a 49.99% interest in our recently established IC business in Xiamen, China, which includes the facility currently under construction. The joint venture, known as “Photronics DNP Mask Corporation Xiamen” (hereinafter, “PDMCX”), was established to develop and manufacture photomasks for leading edge and advanced generation semiconductors. We entered into this joint venture to enable us to compete more effectively for the merchant photomask business in China and to benefit from the additional resources and investment that DNP will provide to enable us to offer advanced process technology to our customers. No gain or loss was recorded upon the formation of the joint venture. As of April 29, 2018, Photronics and DNP have each contributed cash of approximately $12 million to the joint venture. We estimate that, over the next several years and per the PDMCX joint venture operating agreement (“the Agreement”), DNP and Photronics will each contribute an additional $43 million of cash and additional amounts to be obtained through local borrowings. Under the Agreement, DNP is afforded, under certain circumstances, the right to put its interest in PDMCX to Photronics. These circumstances include disputes regarding the strategic direction of PDMCX that arise after the initial two year term of the Agreement and cannot be resolved between the two parties. In addition, both Photronics and DNP have the option to purchase, or put, their interest from, or to, the other party, should their ownership interest fall below 20% for a period of more than six consecutive months. Under all such circumstances, the sales of ownership interests would be at the exiting party’s ownership percentage of the joint venture’s net book value, with closing to take place within three business days of obtaining required approvals and clearance. We recorded net losses from the operations of the PDMCX joint venture of approximately $0.2 million, and $0.7 million in the three and six month periods ended April 29, 2018. General creditors of PDMCX do not have recourse to the assets of Photronics, Inc., and the maximum exposure to loss for Photronics from PDMCX at April 29, 2018, was $11.4 million. As required by the guidance in Topic 810 - “Consolidation” of the Accounting Codification Standards, we evaluated our involvement in PDMCX for the purpose of determining whether we should consolidate its results in our financial statements. The initial step of our evaluation was to determine whether PDMCX was a variable interest entity (“VIE”). Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial support, we determined that it is a VIE. Having made this determination, we then assessed whether we were the primary beneficiary of the VIE, and concluded that we were the primary beneficiary during the current reporting period; thus, as required, the PDMCX financial results should be consolidated with Photronics, Inc. Our conclusion was based on the fact that we held a controlling financial interest in PDMCX, which resulted from our having the power to direct the activities that most significantly impacted its economic performance, the obligation to absorb losses, and the right to receive benefits that could potentially be significant to PDMCX. Our conclusion that we had the power to direct the activities that most significantly affected the economic performance of PDMCX during the current period was based on our right to appoint the majority of its board of directors, which has, among others, the powers to manage the business (through its rights to appoint and evaluate PDMCX’s management), incur indebtedness, enter into agreements and commitments, and acquire and dispose of PDMCX’s assets. In addition, as a result of the 50.01% variable interest we held during the current period, we had the obligation to absorb losses and the right to receive benefits that could potentially be significant to PDMCX. The carrying amounts of PDMCX assets and liabilities, included in our condensed consolidated balance sheet, as of April 29, 2018, are presented in the following table, together with the maximum exposure to loss of Photronics due to its interests in the net assets of this joint venture. Classification Carrying Amount Photronics Interest Current assets $ 11,226 $ 5,614 Non-current assets 15,635 7,819 Total assets 26,861 13,433 Current liabilities 4,000 2,000 Non-current liabilities 16 8 Total liabilities 4,016 2,008 Net assets $ 22,845 $ 11,425

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS	6 Months Ended
	Apr. 29, 2018
LONG-TERM BORROWINGS [Abstract]
LONG-TERM BORROWINGS	NOTE 6 - LONG-TERM BORROWINGS Long-term borrowings consist of the following: April 29, 2018 October 29, 2017 3.25% convertible senior notes due in April 2019 $ 57,395 $ 57,337 2.77% capital lease obligation payable through July 2018 1,868 4,639 59,263 61,976 Current portion (59,263 ) (4,639 ) $ - $ 57,337 In January 2015, we privately exchanged $57.5 million in aggregate principal amount of our 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, subject to adjustment upon the occurrence of certain events, 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 we are 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. Our 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 our assets located in the United States and common stock we own in certain of our foreign subsidiaries. The credit facility stipulates that we may not pay cash dividends on Photronics, Inc. stock, and contains the following financial covenants: minimum interest coverage ratio, total leverage ratio and minimum unrestricted cash balance, all of which we were in compliance with at April 29, 2018. We had no outstanding borrowings against the credit facility at April 29, 2018, and $50 million was available for borrowing. The interest rate on the credit facility (3.62% at April 29, 2018) is based on our total leverage ratio at LIBOR plus a spread, as defined in the credit facility. In April 2018, our credit facility was amended to change the definition of “specified capital expenditures”, which is used to calculate the interest coverage ratio. In August 2013, we entered into a $26.4 million principal amount, five year capital lease 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. The lease is subject to a cross default with cross acceleration provision related to certain nonfinancial covenants incorporated into our credit facility. As of April 29, 2018, the total amount payable through August 2018 (the end of the lease term) was $1.9 million, substantially all of which represented principal.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Apr. 29, 2018
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 us (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 Photronics. In the event of a change in control (as defined in the Plan), the vesting of awards may be accelerated. Total share-based compensation costs for the three and six month periods ended April 29, 2018, were $0.8 million and $1.6 million, respectively, and $0.9 million and $1.9 million for the three and six month periods ended April 30, 2017, respectively. The Company received cash from option exercises of $2.9 million and $3.6 million for the three and six month periods ended April 29, 2018, respectively, and $1.0 million and $2.1 million for the three and six month periods ended April 30, 2017, 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 our common stock on the dates of grant using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility of our common stock. We use historical option exercise behavior and employee termination data to estimate expected term, which represents the period of time that options 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. There were no share options granted during the three month period ended April 29, 2018, and 10,000 share options granted during the three month period ended April 30, 2017, with a weighted-average grant date fair value of $3.35 per share. There were 252,000 share options granted during the six month period ended April 29, 2018, with a weighted-average grant date fair value of $2.74 per share, and 348,750 share options granted during the six month period ended April 30, 2017, with a weighted-average grant date fair value of $3.59 per share. As of April 29, 2018, the total unrecognized compensation cost related to unvested option awards was approximately $2.1 million. That cost is expected to be recognized over a weighted-average amortization period of 2.1 years. The weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options issued during the three and six month periods ended April 29, 2018 and April 30, 2017, are presented in the following table. Three Months Ended Six Months Ended April 29, 2018 April 30, 2017 April 29, 2018 April 30, 2017 Volatility N/A 31.6 % 31.6 % 32.2 % Risk free rate of return N/A 2.0 % 2.2 % 1.9-2.0 % Dividend yield N/A 0.0 % 0.0 % 0.0 % Expected term N/A 5.0 years 5.0 years 5.0 years Information on outstanding and exercisable option awards as of April 29, 2018, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at April 29, 2018 2,613,640 $ 8.47 6.2 years $ 2,054 Exercisable at April 29, 2018 1,744,975 $ 7.62 5.0 years $ 2,054 Restricted Stock We periodically grant restricted stock awards, the restrictions on which typically lapse over a service period of one-to-four years. The fair value of the awards is determined on the date of grant, based on the closing price of our common stock. There were 10,000 restricted stock awards granted during the three month period ended April 29, 2018, with a grant date fair value of $8.40 and 290,000 restricted stock awards granted during the six month period ended April 29, 2018, with a weighted-average fair value of $8.62 per share. There were 25,000 restricted stock awards granted during the three month period ended April 30, 2017, with a grant date fair value of $10.75, and 285,000 restricted stock awards granted during the six month period ended April 30, 2017, with a weighted-average grant date fair value of $11.30 per share. As of April 29, 2018, the total compensation cost not yet recognized related to unvested restricted stock awards was approximately $3.7 million. That cost is expected to be recognized over a weighted-average amortization period of 2.8 years. As of April 29, 2018, there were 472,673 shares of restricted stock outstanding.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 29, 2018
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 8 - INCOME TAXES The effective tax rate of 18.8% and 6.5% for the three and six month periods ended April 29, 2018, respectively, differ from the post U.S. Tax Reform blended statutory rate of 23.4%, primarily due to the benefit from U.S. Tax Reform (as discussed below), earnings being taxed at lower statutory rates in foreign jurisdictions, the benefit of various investment credits in a foreign jurisdiction, and a tax holiday in Taiwan. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”), was signed into law, enacting significant changes to the United States Internal Revenue Code of 1986, as amended, that we expect to have a positive impact on our future after-tax earnings. Under ASC Topic 740 – “Income Taxes” (“ASC 740”), the effects of the new legislation are recognized in the interim and annual accounting periods that include the enactment date, which falls within our six month period ended April 29, 2018. In December 2017, the Securities and Exchange Commission released Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations in which the accounting under ASC 740 is incomplete for certain income tax effects of the Act. We adopted SAB 118 in our first quarter of fiscal year 2018. SAB 118 summarizes a three-step process to be applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) a reasonable estimate cannot yet be made and, therefore, taxes are reflected in accordance with law prior to the enactment of the Act. We continue to analyze the provisions of the Act addressing the net deferred tax asset revaluation and its calculations, the deemed earnings repatriation, including the determination of undistributed non-U.S. earnings, and evaluate potential actions we may consider in light of the Act that could affect our fiscal year 2018 U.S. taxable income. As such, our accounting for certain elements within the Act is preliminary, and subject to further clarification of the Act by the Internal Revenue Service. The following is a discussion of the major provisions of the Act that affect our financial statements, and our preliminary assessment of the impact of such provisions on our financial statements. · The Act repeals the corporate alternative minimum tax (“AMT”) for tax years beginning after December 31, 2017, and provides that existing AMT credit carryforwards are fully refundable over a four year period, starting with the tax year beginning after December 31, 2017. We have approximately $3.9 million of AMT credit carryforwards that we previously determined were not more likely than not going to be realized and, as such, established a valuation allowance for these carryforwards. The Act has changed our determination regarding the realization of the benefit of the carryforwards; accordingly, the related valuation allowance has been reversed, and the $3.9 million tax benefit, excluding any impact of potential future sequestration reductions, was recorded in our tax provision for the period ended January 28, 2018. · As of January 1, 2018, the Act reduces the corporate income tax rate from a maximum 35% to a flat 21%. Our fiscal year 2018 blended statutory tax rate is approximately 23.4%, the weighted daily average rate between the pre-enactment U.S. federal statutory tax rate of 35% applicable to our 2018 fiscal year prior to the rate change effective January 1, 2018, and the post-enactment U.S. federal statutory tax rate of 21% applicable to the balance of our 2018 fiscal year. The 21% rate will be applicable to fiscal year 2019 and beyond. Under generally accepted accounting principles, we are required to revalue our deferred tax assets and liabilities utilizing the rate applicable to the period when a temporary difference will reverse. Our preliminary analysis of the two stepped revaluation indicates that our net deferred tax asset will be increased by $2.5 million, with an offsetting change in the related valuation allowance resulting in a provisional net zero impact for the period. · The Act imposes a transition tax for a one-time deemed repatriation of the accumulated earnings of foreign subsidiaries. The transition tax effective rates are 15.5% on accumulated earnings held in cash (as defined by the Act), and 8% on any remaining balance. Our preliminary analysis indicates an estimated deemed repatriation transition tax of $28.4 million, the entire amount of which will be fully offset by tax credits and/or available loss carryforwards resulting in a provisional net zero impact in the period, due in part to an offsetting change in the related valuation allowance. We anticipate that future earnings of foreign subsidiaries will not be subject to U.S. federal income tax. No change has been, or is, anticipated to be made with respect to the year-end fiscal year 2017 indefinite reinvestment assertion of foreign subsidiary earnings. · Our preliminary analysis of other provisions of the Act including, but not limited to, 100 percent bonus depreciation and changes to the limitations on the deductibility of meals and entertainment expenses, indicates that, under our current tax profile, there should be limited or no provisional impact on our current period financial statements. · Based on the effective date of certain provisions, we will be subject to additional requirements of tax reform beginning in fiscal year 2019. Those provisions include a tax on global intangible low-taxed income (GILTI), a tax determined by base erosion tax benefits (BEAT) from certain payments between a U.S. corporation and foreign subsidiaries, a limitation of certain executive compensation, a deduction for foreign derived intangible income (FDII), and interest expense limitations. We have not completed our analysis of those provisions and the estimated impact. On January 18, 2018, the Taiwan Legislature Yuan approved amendments to the Income Tax Act, enacting an increase in the corporate tax rate from 17% to 20%. Under generally accepted accounting principles, we are required to revalue our deferred tax assets and liabilities utilizing the rate applicable to the period when a temporary difference will reverse. Our analysis indicates that our Taiwan deferred tax asset will be increased and, accordingly, a net benefit of $0.2 million was reflected in our January 28, 2018, tax provision. The 22.5% and 29.3% effective tax rates for the respective three and six month periods ended April 30, 2017, differ from the U.S. statutory rate of 35%, 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 that would be recognized in these jurisdictions. We have two five-year tax holidays in Taiwan, one that expired in 2017 and the other that expires in 2019. The latter tax holiday reduced foreign taxes by $0.7 million and $0.8 million in the three and six month periods ended April 29, 2018, respectively, and had a $0.01 effect on earnings per share in each period. For the three and six month periods ended April 30, 2017, the company realized benefits from the tax holidays of $0.1 million and $0.2 million, respectively, with de minimis per share effects for these periods. There were unrecognized tax benefits related to uncertain tax positions of $4.0 million at April 29, 2018, and $3.4 million at October 29, 2017, all of which, if recognized, would favorably impact the Company’s effective tax rate. Accrued interest and penalties related to unrecognized tax benefits were $0.1 million at April 29, 2018 and October 29, 2017. 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 $1.4 million of our uncertain tax positions (including accrued interest and penalties, and net of tax benefits) may be resolved over the next twelve months. Resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Apr. 29, 2018
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	NOTE 9 - EARNINGS PER SHARE The calculations of basic and diluted earnings per share is presented below. Three Months Ended Six Months Ended April 29, 2018 April 30, 2017 April 29 2018 April 30 2017 Net income attributable to Photronics, Inc. shareholders $ 10,665 $ 1,797 $ 16,563 $ 3,744 Effect of dilutive securities: Interest expense on convertible notes, net of tax 496 - 992 - Earnings used for diluted earnings per share $ 11,161 $ 1,797 $ 17,555 $ 3,744 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 69,293 68,426 69,024 68,301 Effect of dilutive securities: Convertible notes 5,542 - 5,542 - Share-based payment awards 355 959 486 976 Potentially dilutive common shares 5,897 959 6,028 976 Weighted-average common shares used for diluted earnings per share 75,190 69,385 75,052 69,277 Basic earnings per share $ 0.15 $ 0.03 $ 0.24 $ 0.05 Diluted earnings per share $ 0.15 $ 0.03 $ 0.23 $ 0.05 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 prices exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be anti-dilutive. The table also shows convertible notes that, if converted, would have been anti-dilutive. Three Months Ended Six Months Ended April 29, 2018 April 30, 2017 April 29, 2018 April 30, 2017 Share-based payment awards 2,022 1,082 1,803 1,038 Convertible notes - 5,542 - 5,542 Total potentially dilutive shares excluded 2,022 6,624 1,803 6,580

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	6 Months Ended
	Apr. 29, 2018
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 six month periods ended April 29, 2018 and April 30, 2017. Three Months Ended April 29, 2018 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at January 29, 2018 $ 32,848 $ (16 ) $ (704 ) $ 32,128 Other comprehensive income (loss) before Reclassifications (11,098 ) - 54 (11,044 ) Amounts reclassified from accumulated other comprehensive income - 16 - 16 Net current period other comprehensive (loss) income (11,098 ) 16 54 (11,028 ) Less: other comprehensive (income) loss attributable to noncontrolling interests 2,683 - (27 ) 2,656 Balance at April 29, 2018 $ 24,433 $ - $ (677 ) $ 23,756 Three Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at January 30, 2017 $ (8,448 ) $ (145 ) $ (937 ) $ (9,530 ) Other comprehensive income (loss) before reclassifications 18,382 - (74 ) 18,308 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 18,382 32 (74 ) 18,340 Less: other comprehensive (income) loss attributable to noncontrolling interests (4,676 ) - 37 (4,639 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Six Months Ended April 29, 2018 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at October 30, 2017 $ 7,627 $ (48 ) $ (688 ) $ 6,891 Other comprehensive income (loss) before reclassifications 18,989 - 22 19,011 Amounts reclassified from accumulated other comprehensive income - 48 - 48 Net current period other comprehensive income (loss) 18,989 48 22 19,059 Less: other comprehensive income attributable to noncontrolling interests (2,183 ) - (11 ) (2,194 ) Balance at April 29, 2018 $ 24,433 $ - $ (677 ) $ 23,756 Six Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at October 31, 2016 $ (6,567 ) $ (177 ) $ (927 ) $ (7,671 ) Other comprehensive income (loss) before reclassifications 17,769 - (94 ) 17,675 Amounts reclassified from accumulated other comprehensive income - 64 - 64 Net current period other comprehensive income (loss) 17,769 64 (94 ) 17,739 Less: other comprehensive (income)loss attributable to noncontrolling interests (5,944 ) - 47 (5,897 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 The amortization of the cash flow hedge is included in cost of sales in the condensed consolidated statements of income for all periods presented.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Apr. 29, 2018
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 did not have any assets or liabilities measured at fair value, on a recurring or a nonrecurring basis, at April 29, 2018 or October 29, 2017. Fair Value of Other Financial Instruments The fair values of our cash and cash equivalents (Level 1 measurements), accounts receivable, accounts payable, and certain other current assets and current liabilities (Level 2 measurements) approximate their carrying value due to their short-term maturities. The fair value of our convertible senior notes is a Level 2 measurement, as it is determined using inputs that were either observable market data, or could be derived from or corroborated with observable market data. These inputs included our stock price and interest rates offered on debt issued by entities with credit ratings similar to ours. The table below presents the fair and carrying values of our convertible senior notes at April 29, 2018 and October 29, 2017. April 29, 2018 October 29, 2017 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 62,549 $ 57,395 $ 67,396 $ 57,337

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Apr. 29, 2018
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES As of April 29, 2018, we had commitments outstanding for capital expenditures of approximately $176 million , nearly all of which relates to our China facilities under construction We are subject to various claims that arise in the ordinary course of business. We believe that such claims, individually or in the aggregate, will not have a material effect on the condensed consolidated financial statements.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Apr. 29, 2018
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 13 - RECENT ACCOUNTING PRONOUNCEMENTS In December 2017, the Securities and Exchange Commission released Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations where the accounting under ASC Topic 740 – “Income Taxes” is incomplete for certain income tax effects of the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, and changed existing U.S. tax law. We adopted this guidance in our first quarter of fiscal year 2018. Please see Note 8 for a discussion of the effects of adopting this guidance. 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 Photronics, Inc. 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. We are currently evaluating the effect that this ASU will have on our 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 Photronics in the 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. We are currently evaluating the effect this ASU will have on our 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 Photronics, Inc. in its first quarter of fiscal year 2021, with early adoption permitted beginning in the first quarter of fiscal year 2019. We are currently evaluating the effect that this ASU will have on our 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. Adoption of this guidance in the first quarter of our fiscal year 2018 did not have a material impact on our 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 Photronics, Inc. in the first quarter of fiscal year 2020, with early application permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers”, which will supersede nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States. The core principle of this ASU is that revenue should be recognized for the amount of consideration expected to be received for promised goods or services transferred to customers. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, and assets recognized for costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year and allows entities to early adopt, but no earlier than the original effective date. ASU 2014-09 will now be effective for Photronics, Inc. in the first quarter of our fiscal year 2019. This update allows for either full retrospective or modified retrospective adoption. In April 2016, the FASB issued ASU 2016-10 “Identifying Performance Obligations and Licensing” which amends guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 are the same as those for ASU 2014-09. We anticipate that the adoption of this ASU will result in the accelerated recognition of certain revenue streams as, upon adoption of this Update, some amounts in our work-in process inventory will be considered to represent promised goods transferred to our customers, requiring us to recognize consideration for those transferred goods in amounts we expect to be entitled to receive in exchange for them. However, we cannot currently quantify with reasonable certainty the effect this anticipated acceleration of revenue will have on our consolidated financial statements. We expect to adopt this guidance using the modified retrospective approach.

INVENTORIES (Policies)

INVENTORIES (Policies)	6 Months Ended
	Apr. 29, 2018
INVENTORIES [Abstract]
Inventories	Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or net realizable value.

SHARE-BASED COMPENSATION (Polic

SHARE-BASED COMPENSATION (Policies)	6 Months Ended
	Apr. 29, 2018
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Accounting	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 our common stock on the dates of grant using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility of our common stock. We use historical option exercise behavior and employee termination data to estimate expected term, which represents the period of time that options 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. There were no share options granted during the three month period ended April 29, 2018, and 10,000 share options granted during the three month period ended April 30, 2017, with a weighted-average grant date fair value of $3.35 per share. There were 252,000 share options granted during the six month period ended April 29, 2018, with a weighted-average grant date fair value of $2.74 per share, and 348,750 share options granted during the six month period ended April 30, 2017, with a weighted-average grant date fair value of $3.59 per share. As of April 29, 2018, the total unrecognized compensation cost related to unvested option awards was approximately $2.1 million. That cost is expected to be recognized over a weighted-average amortization period of 2.1 years.

INCOME TAXES (Policies)

INCOME TAXES (Policies)	6 Months Ended
	Apr. 29, 2018
INCOME TAXES [Abstract]
Income Taxes	On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”), was signed into law, enacting significant changes to the United States Internal Revenue Code of 1986, as amended, that we expect to have a positive impact on our future after-tax earnings. Under ASC Topic 740 – “Income Taxes” (“ASC 740”), the effects of the new legislation are recognized in the interim and annual accounting periods that include the enactment date, which falls within our six month period ended April 29, 2018. In December 2017, the Securities and Exchange Commission released Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations in which the accounting under ASC 740 is incomplete for certain income tax effects of the Act. We adopted SAB 118 in our first quarter of fiscal year 2018.

FAIR VALUE MEASUREMENTS (Polici

FAIR VALUE MEASUREMENTS (Policies)	6 Months Ended
	Apr. 29, 2018
FAIR VALUE MEASUREMENTS [Abstract]
Fair Value Financial Instruments	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 PRONOUNCEME25

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Apr. 29, 2018
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Recent Accounting Pronouncements	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 Photronics, Inc. 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. We are currently evaluating the effect that this ASU will have on our 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 Photronics in the 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. We are currently evaluating the effect this ASU will have on our 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 Photronics, Inc. in its first quarter of fiscal year 2021, with early adoption permitted beginning in the first quarter of fiscal year 2019. We are currently evaluating the effect that this ASU will have on our 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. Adoption of this guidance in the first quarter of our fiscal year 2018 did not have a material impact on our 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 Photronics, Inc. in the first quarter of fiscal year 2020, with early application permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers”, which will supersede nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States. The core principle of this ASU is that revenue should be recognized for the amount of consideration expected to be received for promised goods or services transferred to customers. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments, and assets recognized for costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year and allows entities to early adopt, but no earlier than the original effective date. ASU 2014-09 will now be effective for Photronics, Inc. in the first quarter of our fiscal year 2019. This update allows for either full retrospective or modified retrospective adoption. In April 2016, the FASB issued ASU 2016-10 “Identifying Performance Obligations and Licensing” which amends guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 are the same as those for ASU 2014-09. We anticipate that the adoption of this ASU will result in the accelerated recognition of certain revenue streams as, upon adoption of this Update, some amounts in our work-in process inventory will be considered to represent promised goods transferred to our customers, requiring us to recognize consideration for those transferred goods in amounts we expect to be entitled to receive in exchange for them. However, we cannot currently quantify with reasonable certainty the effect this anticipated acceleration of revenue will have on our consolidated financial statements. We expect to adopt this guidance using the modified retrospective approach.

CHANGES IN EQUITY (Tables)

CHANGES IN EQUITY (Tables)	6 Months Ended
	Apr. 29, 2018
CHANGES IN EQUITY [Abstract]
Consolidated changes in equity	The following tables set forth our consolidated changes in equity for the three and six month periods ended April 29, 2018 and April 30, 2017: Three Months Ended April 29, 2018 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Non- controlling Interests Total Equity Shares Amount Balance at January 29, 2018 68,869 $ 689 $ 549,328 $ 195,288 $ 32,128 $ 141,014 $ 918,447 Net income - - - 10,665 - 4,524 15,189 Other comprehensive loss - - - - (8,372 ) (2,656 ) (11,028 ) Sale of common stock through employee stock option and purchase plans 548 5 2,892 - - - 2,897 Restricted stock awards vesting and expense 26 - 457 - - - 457 Share-based compensation expense - - 300 - - - 300 Subsidiary dividend payable - - - - - (8,196 ) (8,196 ) Balance at April 29, 2018 69,443 $ 694 $ 552,977 $ 205,953 $ 23,756 $ 134,686 $ 918,066 Three Months Ended April 30, 2017 Photronics, Inc. Shareholders Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interests Total Equity Common Stock Shares Amount Balance at January 30, 2017 68,333 $ 683 $ 543,116 $ 178,207 $ (9,530 ) $ 118,932 $ 831,408 Net income (loss) - - - 1,797 - (313 ) 1,484 Other comprehensive income - - - - 13,701 4,639 18,340 Sale of common stock through employee stock option and purchase plans 148 2 982 - - - 984 Restricted stock awards vesting and expense 15 - 431 - - - 431 Share-based compensation expense - - 490 - - - 490 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754 Six Months Ended April 29, 2018 Photronics, Inc. Shareholders Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Non- controlling Interests Total Equity Shares Amount Balance at October 30, 2017 68,666 $ 687 $ 547,596 $ 189,390 $ 6,891 $ 120,731 $ 865,295 Net income - - - 16,563 - 8,107 24,670 Other comprehensive income - - - - 16,865 2,194 19,059 Sale of common stock through employee stock option and purchase plans 664 7 3,592 - - - 3,599 Restricted stock awards vesting and expense 113 - 843 - - - 843 Share-based compensation expense - - 798 - - - 798 Contribution from noncontrolling interest - - 148 - - 11,850 11,998 Subsidiary dividend payable - - - - - (8,196 ) (8,196 ) Balance at April 29, 2018 69,443 $ 694 $ 552,977 $ 205,953 $ 23,756 $ 134,686 $ 918,066 Six Months Ended April 30, 2017 Photronics, Inc. Shareholders Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interests Total Equity Common Stock Shares Amount Balance at October 31, 2016 68,080 $ 681 $ 541,093 $ 176,260 $ (7,671 ) $ 115,111 $ 825,474 Net income - - - 3,744 - 2,250 5,994 Other comprehensive income - - - - 11,842 5,897 17,739 Sale of common stock through employee stock option and purchase plans 323 3 2,068 - - - 2,071 Restricted stock awards vesting and expense 93 1 728 - - - 729 Share-based compensation expense - - 1,130 - - - 1,130 Subsidiary dividend payable - - - - - (8,383 ) (8,383 ) Balance at April 30, 2017 68,496 $ 685 $ 545,019 $ 180,004 $ 4,171 $ 114,875 $ 844,754

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 29, 2018
INVENTORIES [Abstract]
Components of inventory	Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or net realizable value. Presented below are the components of inventory at the balance sheet dates: April 29, 2018 October 29, 2017 Finished goods $ 2,011 $ 664 Work in process 4,901 2,957 Raw materials 25,024 20,082 $ 31,936 $ 23,703

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Apr. 29, 2018
PROPERTY, PLANT AND EQUIPMENT [Abstract]
Property, plant and equipment	Property, plant and equipment consists of the following: April 29, 2018 October 29, 2017 Land $ 11,697 $ 9,959 Buildings and improvements 127,148 125,290 Machinery and equipment 1,609,456 1,547,870 Leasehold improvements 20,415 20,050 Furniture, fixtures and office equipment 13,816 12,989 Construction in progress 83,554 72,045 1,866,086 1,788,203 Accumulated depreciation and amortization (1,302,773 ) (1,253,006 ) $ 563,313 $ 535,197
Equipment under capital leases included in property, plant and equipment	Equipment under capital leases is included in the property, plant and equipment amount, above, as follows: April 29, 2018 October 29, 2017 Machinery and equipment $ 34,917 $ 34,917 Accumulated amortization (19,328 ) (13,843 ) $ 15,589 $ 21,074

PDMCX JOINT VENTURE (Tables)

PDMCX JOINT VENTURE (Tables)	6 Months Ended
	Apr. 29, 2018
PDMCX JOINT VENTURE [Abstract]
Carrying amounts of assets and liabilities along with exposure to loss related to assets and liabilities	The carrying amounts of PDMCX assets and liabilities, included in our condensed consolidated balance sheet, as of April 29, 2018, are presented in the following table, together with the maximum exposure to loss of Photronics due to its interests in the net assets of this joint venture. Classification Carrying Amount Photronics Interest Current assets $ 11,226 $ 5,614 Non-current assets 15,635 7,819 Total assets 26,861 13,433 Current liabilities 4,000 2,000 Non-current liabilities 16 8 Total liabilities 4,016 2,008 Net assets $ 22,845 $ 11,425

LONG-TERM BORROWINGS (Tables)

LONG-TERM BORROWINGS (Tables)	6 Months Ended
	Apr. 29, 2018
LONG-TERM BORROWINGS [Abstract]
Long-term borrowings	Long-term borrowings consist of the following: April 29, 2018 October 29, 2017 3.25% convertible senior notes due in April 2019 $ 57,395 $ 57,337 2.77% capital lease obligation payable through July 2018 1,868 4,639 59,263 61,976 Current portion (59,263 ) (4,639 ) $ - $ 57,337

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Apr. 29, 2018
SHARE-BASED COMPENSATION [Abstract]
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options	The weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options issued during the three and six month periods ended April 29, 2018 and April 30, 2017, are presented in the following table. Three Months Ended Six Months Ended April 29, 2018 April 30, 2017 April 29, 2018 April 30, 2017 Volatility N/A 31.6 % 31.6 % 32.2 % Risk free rate of return N/A 2.0 % 2.2 % 1.9-2.0 % Dividend yield N/A 0.0 % 0.0 % 0.0 % Expected term N/A 5.0 years 5.0 years 5.0 years
Information on outstanding and exercisable option awards	Information on outstanding and exercisable option awards as of April 29, 2018, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at April 29, 2018 2,613,640 $ 8.47 6.2 years $ 2,054 Exercisable at April 29, 2018 1,744,975 $ 7.62 5.0 years $ 2,054

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Apr. 29, 2018
EARNINGS PER SHARE [Abstract]
Calculation of basic and diluted earnings per share	The calculations of basic and diluted earnings per share is presented below. Three Months Ended Six Months Ended April 29, 2018 April 30, 2017 April 29 2018 April 30 2017 Net income attributable to Photronics, Inc. shareholders $ 10,665 $ 1,797 $ 16,563 $ 3,744 Effect of dilutive securities: Interest expense on convertible notes, net of tax 496 - 992 - Earnings used for diluted earnings per share $ 11,161 $ 1,797 $ 17,555 $ 3,744 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 69,293 68,426 69,024 68,301 Effect of dilutive securities: Convertible notes 5,542 - 5,542 - Share-based payment awards 355 959 486 976 Potentially dilutive common shares 5,897 959 6,028 976 Weighted-average common shares used for diluted earnings per share 75,190 69,385 75,052 69,277 Basic earnings per share $ 0.15 $ 0.03 $ 0.24 $ 0.05 Diluted earnings per share $ 0.15 $ 0.03 $ 0.23 $ 0.05
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 prices exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be anti-dilutive. The table also shows convertible notes that, if converted, would have been anti-dilutive. Three Months Ended Six Months Ended April 29, 2018 April 30, 2017 April 29, 2018 April 30, 2017 Share-based payment awards 2,022 1,082 1,803 1,038 Convertible notes - 5,542 - 5,542 Total potentially dilutive shares excluded 2,022 6,624 1,803 6,580

CHANGES IN ACCUMULATED OTHER 33

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables)	6 Months Ended
	Apr. 29, 2018
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 six month periods ended April 29, 2018 and April 30, 2017. Three Months Ended April 29, 2018 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at January 29, 2018 $ 32,848 $ (16 ) $ (704 ) $ 32,128 Other comprehensive income (loss) before Reclassifications (11,098 ) - 54 (11,044 ) Amounts reclassified from accumulated other comprehensive income - 16 - 16 Net current period other comprehensive (loss) income (11,098 ) 16 54 (11,028 ) Less: other comprehensive (income) loss attributable to noncontrolling interests 2,683 - (27 ) 2,656 Balance at April 29, 2018 $ 24,433 $ - $ (677 ) $ 23,756 Three Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at January 30, 2017 $ (8,448 ) $ (145 ) $ (937 ) $ (9,530 ) Other comprehensive income (loss) before reclassifications 18,382 - (74 ) 18,308 Amounts reclassified from accumulated other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 18,382 32 (74 ) 18,340 Less: other comprehensive (income) loss attributable to noncontrolling interests (4,676 ) - 37 (4,639 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171 Six Months Ended April 29, 2018 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at October 30, 2017 $ 7,627 $ (48 ) $ (688 ) $ 6,891 Other comprehensive income (loss) before reclassifications 18,989 - 22 19,011 Amounts reclassified from accumulated other comprehensive income - 48 - 48 Net current period other comprehensive income (loss) 18,989 48 22 19,059 Less: other comprehensive income attributable to noncontrolling interests (2,183 ) - (11 ) (2,194 ) Balance at April 29, 2018 $ 24,433 $ - $ (677 ) $ 23,756 Six Months Ended April 30, 2017 Foreign Currency Translation Adjustments Amortization of Cash Flow Hedge Other Total Balance at October 31, 2016 $ (6,567 ) $ (177 ) $ (927 ) $ (7,671 ) Other comprehensive income (loss) before reclassifications 17,769 - (94 ) 17,675 Amounts reclassified from accumulated other comprehensive income - 64 - 64 Net current period other comprehensive income (loss) 17,769 64 (94 ) 17,739 Less: other comprehensive (income)loss attributable to noncontrolling interests (5,944 ) - 47 (5,897 ) Balance at April 30, 2017 $ 5,258 $ (113 ) $ (974 ) $ 4,171

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Apr. 29, 2018
FAIR VALUE MEASUREMENTS [Abstract]
Fair and carrying values of convertible senior notes	The table below presents the fair and carrying values of our convertible senior notes at April 29, 2018 and October 29, 2017. April 29, 2018 October 29, 2017 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 62,549 $ 57,395 $ 67,396 $ 57,337

BASIS OF FINANCIAL STATEMENT 35

BASIS OF FINANCIAL STATEMENT PRESENTATION (Details)	6 Months Ended
	Apr. 29, 2018Facility
Manufacturing Facilities By Geographical Region [Line Items]
Number of manufacturing facilities	9
Estimated production start-by date	Apr. 29, 2019
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
China under Construction [Member]
Manufacturing Facilities By Geographical Region [Line Items]
Number of manufacturing facilities	2

CHANGES IN EQUITY (Details)

CHANGES IN EQUITY (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017
Class of Stock [Line Items]
Beginning balance	$ 918,447	$ 831,408	$ 865,295	$ 825,474
Net income (loss)	15,189	1,484	24,670	5,994
Other comprehensive (loss) income	(11,028)	18,340	19,059	17,739
Sale of common stock through employee stock option and purchase plans	2,897	984	3,599	2,071
Restricted stock awards vesting and expense	457	431	843	729
Share-based compensation expense	300	490	798	1,130
Contribution from noncontrolling interest			11,998	0
Subsidiary dividend payable	(8,196)	(8,383)	(8,196)	(8,383)
Ending balance	918,066	844,754	918,066	844,754
Common Stock [Member]
Class of Stock [Line Items]
Beginning balance	$ 689	$ 683	$ 687	$ 681
Beginning balance (in shares)	68,869	68,333	68,666	68,080
Net income (loss)	$ 0	$ 0	$ 0	$ 0
Other comprehensive (loss) income	0	0	0	0
Sale of common stock through employee stock option and purchase plans	$ 5	$ 2	$ 7	$ 3
Sale of common stock through employee stock option and purchase plans (in shares)	548	148	664	323
Restricted stock awards vesting and expense	$ 0	$ 0	$ 0	$ 1
Restricted stock awards vesting and expense (in shares)	26	15	113	93
Share-based compensation expense	$ 0	$ 0	$ 0	$ 0
Contribution from noncontrolling interest			0
Subsidiary dividend payable	0	0	0	0
Ending balance	$ 694	$ 685	$ 694	$ 685
Ending balance (in shares)	69,443	68,496	69,443	68,496
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Beginning balance	$ 549,328	$ 543,116	$ 547,596	$ 541,093
Net income (loss)	0	0	0	0
Other comprehensive (loss) income	0	0	0	0
Sale of common stock through employee stock option and purchase plans	2,892	982	3,592	2,068
Restricted stock awards vesting and expense	457	431	843	728
Share-based compensation expense	300	490	798	1,130
Contribution from noncontrolling interest			148
Subsidiary dividend payable	0	0	0	0
Ending balance	552,977	545,019	552,977	545,019
Retained Earnings [Member]
Class of Stock [Line Items]
Beginning balance	195,288	178,207	189,390	176,260
Net income (loss)	10,665	1,797	16,563	3,744
Other comprehensive (loss) 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
Contribution from noncontrolling interest			0
Subsidiary dividend payable	0	0	0	0
Ending balance	205,953	180,004	205,953	180,004
Accumulated Other Comprehensive Income (Loss) [Member]
Class of Stock [Line Items]
Beginning balance	32,128	(9,530)	6,891	(7,671)
Net income (loss)	0	0	0	0
Other comprehensive (loss) income	(8,372)	13,701	16,865	11,842
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
Contribution from noncontrolling interest			0
Subsidiary dividend payable	0	0	0	0
Ending balance	23,756	4,171	23,756	4,171
Non-controlling Interests [Member]
Class of Stock [Line Items]
Beginning balance	141,014	118,932	120,731	115,111
Net income (loss)	4,524	(313)	8,107	2,250
Other comprehensive (loss) income	(2,656)	4,639	2,194	5,897
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
Contribution from noncontrolling interest			11,850
Subsidiary dividend payable	(8,196)	(8,383)	(8,196)	(8,383)
Ending balance	$ 134,686	$ 114,875	$ 134,686	$ 114,875

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Apr. 29, 2018	Oct. 29, 2017
INVENTORIES [Abstract]
Finished goods	$ 2,011	$ 664
Work in process	4,901	2,957
Raw materials	25,024	20,082
Inventory	$ 31,936	$ 23,703

PROPERTY, PLANT AND EQUIPMENT38

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017	Oct. 29, 2017
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 1,866,086		$ 1,866,086		$ 1,788,203
Accumulated depreciation and amortization	(1,302,773)		(1,302,773)		(1,253,006)
Property, plant and equipment, net	563,313		563,313		535,197
Depreciation and amortization expense	20,800	$ 20,100	42,000	$ 39,800
Equipment under capital leases included in property, plant and equipment [Abstract]
Machinery and equipment	34,917		34,917		34,917
Accumulated amortization	(19,328)		(19,328)		(13,843)
Capital leased assets, net	15,589		15,589		21,074
Equipment acquired in exchange for product	0	$ 2,800	6,700	$ 5,000
Land [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	11,697		11,697		9,959
Buildings and Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	127,148		127,148		125,290
Machinery and Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	1,609,456		1,609,456		1,547,870
Leasehold Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	20,415		20,415		20,050
Furniture, Fixtures and Office Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	13,816		13,816		12,989
Construction in Progress [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 83,554		$ 83,554		$ 72,045

PDMCX JOINT VENTURE (Details)

PDMCX JOINT VENTURE (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 29, 2018USD ($)	Apr. 29, 2018USD ($)
Variable Interest Entity [Line Items]
Initial term of agreement		2 years
Trigger period for option to purchase, or put, their interest from, or to, other party if ownership interest falls below 20%		6 months
Operating loss	$ (200)	$ (700)
Initial consolidation, gain (loss)		0
Maximum loss exposure, amount	11,400	$ 11,400
Methodology use for determining whether enterprise is primary beneficiary		As required by the guidance in Topic 810 - “Consolidation” of the Accounting Codification Standards, we evaluated our involvement in PDMCX for the purpose of determining whether we should consolidate its results in our financial statements. The initial step of our evaluation was to determine whether PDMCX was a variable interest entity (“VIE”). Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial support, we determined that it was a VIE. Having made this determination, we then assessed whether we were the primary beneficiary of the VIE, and concluded that we were the primary beneficiary during the current reporting period; thus, as required, the PDMCX financial results should be consolidated with Photronics, Inc. Our conclusion was based on the fact that we held a controlling financial interest in PDMCX, which resulted from our having the power to direct the activities that most significantly impacted its economic performance, the obligation to absorb losses, and the right to receive benefits that could potentially be significant to PDMCX. Our conclusion that we had the power to direct the activities that most significantly affected the economic performance of PDMCX during the current period was based on our right to appoint the majority of its board of directors, which has, among others, the powers to manage the business (through its rights to appoint and evaluate PDMCX’s management), incur indebtedness, enter into agreements and commitments, and acquire and dispose of PDMCX’s assets. In addition, as a result of the 50.01% variable interest we held during the current period, we had the obligation to absorb losses and the right to receive benefits that could potentially be significant to PDMCX.
Consolidation liabilities, recourse	0	$ 0
DNP [Member]
Variable Interest Entity [Line Items]
Ownership percentage		49.99%
Photronics Singapore Pte, Ltd [Member]
Variable Interest Entity [Line Items]
Ownership percentage		50.01%
Minimum [Member]
Variable Interest Entity [Line Items]
Ownership percentage		20.00%
Number of business days for obtaining required approvals and clearance for exiting party		3 days
Carrying Amount [Member]
Carrying amounts of assets and liabilities along with exposure to loss related to assets and liabilities [Abstract]
Current assets	11,226	$ 11,226
Non-current assets	15,635	15,635
Total assets	26,861	26,861
Current liabilities	4,000	4,000
Non-current liabilities	16	16
Total liabilities	4,016	4,016
Net assets	22,845	22,845
Photronics Interest [Member]
Carrying amounts of assets and liabilities along with exposure to loss related to assets and liabilities [Abstract]
Current assets	5,614	5,614
Non-current assets	7,819	7,819
Total assets	13,433	13,433
Current liabilities	2,000	2,000
Non-current liabilities	8	8
Total liabilities	2,008	2,008
Net assets	$ 11,425	11,425
Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Financial or other support, amount		12,000
Future support to be provided		43,000
Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Financial or other support, amount		12,000
Future support to be provided		$ 43,000

LONG-TERM BORROWINGS (Details)

LONG-TERM BORROWINGS (Details)	1 Months Ended		6 Months Ended
	Apr. 30, 2016USD ($)shares$ / shares	Jan. 31, 2015USD ($)shares$ / shares	Apr. 29, 2018USD ($)	Oct. 29, 2017USD ($)	Mar. 31, 2011USD ($)
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 59,263,000	$ 61,976,000
Current portion			(59,263,000)	(4,639,000)
Long-term debt and capital lease obligations non current			$ 0	57,337,000
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			3.62%
3.25% Convertible Senior Notes due on April 2019 [Member]
Long-term borrowings [Abstract]
Convertible debt			$ 57,395,000	57,337,000
Face amount of debt			$ 57,500,000
Interest rate percentage			3.25%
Maturity date of debt			Apr. 1, 2019
Number of shares each note is convertible to (in shares) | shares		96
Face amount of each note converted		$ 1,000
Conversion price per share (in dollars per share) | $ / shares		$ 10.37
3.25% Convertible Senior Notes due in April 2016 [Member]
Long-term borrowings [Abstract]
Face amount of debt					$ 57,500,000
Interest rate percentage	3.25%
Maturity date of debt	Apr. 1, 2016
Number of shares each note is convertible to (in shares) | shares	96
Face amount of each note converted	$ 1,000
Conversion price per share (in dollars per share) | $ / shares	$ 10.37
2.77% Capital Lease Obligation Payable through July 2018 [Member]
Long-term borrowings [Abstract]
Long-term debt and capital lease obligations			$ 1,868,000	$ 4,639,000
Face amount of debt			$ 26,400,000
Interest rate percentage			2.77%
Maturity date of debt			Jul. 31, 2018
Repayment period of debt			5 years
Periodic payments			$ 500,000
Frequency of periodic payment			per month
Amount payable through the end of lease term			$ 1,900,000

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017
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	$ 800	$ 900	$ 1,600	$ 1,900
Cash received from option exercises	2,900	1,000	3,600	2,100
Share-based compensation cost capitalized	0	0	0	0
Income tax benefits realized from stock option exercises	$ 0	$ 0	$ 0	$ 0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term			10 years
Stock options, additional disclosures [Abstract]
Share options granted (in shares)	0	10,000	252,000	348,750
Weighted-average grant date fair value of options granted (in dollars per share)		$ 3.35	$ 2.74	$ 3.59
Unrecognized compensation cost related to unvested option awards	$ 2,100		$ 2,100
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Volatility		31.60%	31.60%	32.20%
Risk free rate of return		2.00%	2.20%
Dividend yield		0.00%	0.00%	0.00%
Expected term		5 years	5 years	5 years
Outstanding and exercisable option awards [Roll Forward]
Outstanding at end of period (in shares)	2,613,640		2,613,640
Exercisable at end of period (in shares)	1,744,975		1,744,975
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, Outstanding at end of period (in dollars per share)	$ 8.47		$ 8.47
Weighted average exercise price, Exercisable at end of period (in dollars per share)	$ 7.62		$ 7.62
Weighted-Average Remaining Contractual Life [Abstract]
Weighted average remaining contractual life, Outstanding at end of period			6 years 2 months 12 days
Weighted average remaining contractual life, Exercisable at end of period			5 years
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, Outstanding at end of period	$ 2,054		$ 2,054
Aggregate intrinsic value, Exercisable at end of period	$ 2,054		$ 2,054
Period for recognition of compensation cost not yet recognized			2 years 1 month 6 days
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%
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%
Restricted Stock [Member]
Aggregate Intrinsic Value [Abstract]
Period for recognition of compensation cost not yet recognized			2 years 9 months 18 days
Restricted Stock [Abstract]
Restricted stock awards granted (in shares)	10,000	25,000	290,000	285,000
Weighted average grant date fair value of restricted stock awards (in dollars per share)	$ 8.40	$ 10.75	$ 8.62	$ 11.30
Compensation cost not yet recognized related to unvested restricted stock awards	$ 3,700		$ 3,700
Number of shares of restricted stock outstanding (in shares)	472,673		472,673
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	2 Months Ended	3 Months Ended			6 Months Ended		12 Months Ended
	Dec. 31, 2017	Apr. 29, 2018	Jan. 28, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017	Oct. 27, 2019	Oct. 28, 2018	Oct. 29, 2017
Income Tax Disclosure [Line Items]
Effective tax rate		18.80%		22.50%	6.50%	29.30%
U.S. statutory rate	35.00%	21.00%		35.00%
Toll charge rate on accumulated earnings in cash					15.50%
Toll charge rate on accumulated earnings not in cash					8.00%
Change in tax rate, deferred tax asset, provisional income tax expense					$ (2.5)
Change in tax rate, deferred tax asset, valuation allowance					2.5
Provisional income tax expense (benefit)					0
Estimated deemed repatriation transition tax					28.4
Estimated deemed repatriation transition tax, valuation allowance					$ (28.4)
Income Tax Holiday [Line Items]
Term of tax year holidays					5 years
Dollar effect of income tax holiday		$ 0.7		$ 0.1	$ 0.8	$ 0.2
Per share effect of income tax holiday (in dollars per share)		$ 0.01		$ 0	$ 0.01	$ 0
Unrecognized tax benefits		$ 4			$ 4				$ 3.4
Interest and penalties accrued related to uncertain tax positions		0.1			0.1				$ 0.1
Amount of reasonably possible decrease in uncertain tax positions		$ 1.4			$ 1.4
Taiwan Agency of the Ministry of Finance [Member]
Income Tax Disclosure [Line Items]
Foreign statutory rate					20.00%				17.00%
Foreign income tax expense (benefit)			$ (0.2)
Federal Alternate Minimum [Member]
Income Tax Disclosure [Line Items]
Credit carryforwards refund period					4 years
Tax credit carryforward, amount			3.9
Valuation allowance change			$ (3.9)
Plan [Member]
Income Tax Disclosure [Line Items]
U.S. statutory rate							21.00%	23.40%
Foreign Tax Authority [Member] | Minimum [Member]
Income Tax Holiday [Line Items]
Income tax holiday termination date					October 31, 2017
Foreign Tax Authority [Member] | Maximum [Member]
Income Tax Holiday [Line Items]
Income tax holiday termination date					December 31, 2019

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017
Calculation of basic and diluted earnings per share [Abstract]
Net income attributable to Photronics, Inc. shareholders	$ 10,665	$ 1,797	$ 16,563	$ 3,744
Effect of dilutive securities [Abstract]
Interest expense on convertible notes, net of tax	496	0	992	0
Earnings used for diluted earnings per share	$ 11,161	$ 1,797	$ 17,555	$ 3,744
Weighted-average common shares computations [Abstract]
Weighted-average common shares used for basic earnings per share (in shares)	69,293	68,426	69,024	68,301
Effect of dilutive securities [Abstract]
Convertible notes (in shares)	5,542	0	5,542	0
Share-based payment awards (in shares)	355	959	486	976
Potentially dilutive common shares (in shares)	5,897	959	6,028	976
Weighted-average common shares used for diluted earnings per share (in shares)	75,190	69,385	75,052	69,277
Basic earnings per share (in dollars per share)	$ 0.15	$ 0.03	$ 0.24	$ 0.05
Diluted earnings per share (in dollars per share)	$ 0.15	$ 0.03	$ 0.23	$ 0.05
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	2,022	6,624	1,803	6,580
Share-Based Payment Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	2,022	1,082	1,803	1,038
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares excluded (in shares)	0	5,542	0	5,542

CHANGES IN ACCUMULATED OTHER 44

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 29, 2018	Apr. 30, 2017	Apr. 29, 2018	Apr. 30, 2017
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			744,564
Net other comprehensive income (loss )	(11,028)	18,340	19,059	17,739
Ending Balance	783,380		783,380
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	32,128	(9,530)	6,891	(7,671)
Net other comprehensive income (loss )	(8,372)	13,701	16,865	11,842
Ending Balance	23,756	4,171	23,756	4,171
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	32,848	(8,448)	7,627	(6,567)
Ending Balance	24,433	5,258	24,433	5,258
Amortization of Cash Flows Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(16)	(145)	(48)	(177)
Ending Balance	0	(113)	0	(113)
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(704)	(937)	(688)	(927)
Ending Balance	(677)	(974)	(677)	(974)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	(11,044)	18,308	19,011	17,675
Amounts reclassified from accumulated other comprehensive income	16	32	48	64
Net other comprehensive income (loss )	(11,028)	18,340	19,059	17,739
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	(11,098)	18,382	18,989	17,769
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net other comprehensive income (loss )	(11,098)	18,382	18,989	17,769
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	16	32	48	64
Net other comprehensive income (loss )	16	32	48	64
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications	54	(74)	22	(94)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net other comprehensive income (loss )	54	(74)	22	(94)
AOCI Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	2,656	(4,639)	(2,194)	(5,897)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Less: other comprehensive (income) loss attributable to noncontrolling interests	2,683	(4,676)	(2,183)	(5,944)
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	$ (27)	$ 37	$ (11)	$ 47

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 29, 2018	Oct. 29, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 0	$ 0
Total liabilities	$ 0	$ 0
3.25% Convertible Senior Notes due 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Interest rate percentage	3.25%	3.25%
Maturity date of debt	Apr. 1, 2019	Apr. 1, 2019
Fair Value [Member] | 3.25% Convertible Senior Notes due 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	$ 62,549	$ 67,396
Carrying Value [Member] | 3.25% Convertible Senior Notes due 2019 [Member]
Fair and carrying values of the Company's convertible senior notes [Abstract]
Convertible senior notes	$ 57,395	$ 57,337

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Apr. 29, 2018USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Outstanding commitments for capital expenditure	$ 176