Photronics (PLAB) 10-Q 8 Mar 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 27, 2019	Mar. 04, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	PHOTRONICS INC
Entity Central Index Key	810,136
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		67,051,505
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 27, 2019
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jan. 27, 2019	Oct. 31, 2018
Current assets:
Cash and cash equivalents	$ 232,448	$ 329,277
Accounts receivable, net of allowance of $1,467 in 2019 and $1,526 in 2018	131,066	120,515
Inventories	27,874	29,180
Prepaid expenses	4,575	6,901
Other current assets	57,043	16,858
Total current assets	453,006	502,731
Property, plant and equipment, net	656,873	571,781
Intangible assets, net	11,272	12,368
Deferred income taxes	15,405	18,109
Other assets	9,338	5,020
Total assets	1,145,894	1,110,009
Current liabilities:
Short-term debt	3,720	0
Current portion of long-term debt	57,927	57,453
Accounts payable	89,875	89,149
Accrued liabilities	43,005	44,474
Total current liabilities	194,527	191,076
Long-term debt	24,484	0
Deferred income taxes	908	643
Other liabilities	12,805	13,721
Total liabilities	232,724	205,440
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, 69,917 shares issued and 66,222 outstanding at January 27, 2019 and 69,700 shares issued and 67,142 outstanding at October 31, 2018	699	697
Additional paid-in capital	557,188	555,606
Retained earnings	236,665	231,445
Treasury stock, 3,695 shares at January 27, 2019 and 2,558 shares at October 31, 2018	(33,807)	(23,111)
Accumulated other comprehensive income (loss)	343	(4,966)
Total Photronics, Inc. shareholders' equity	761,088	759,671
Noncontrolling interests	152,082	144,898
Total equity	913,170	904,569
Total liabilities and equity	$ 1,145,894	$ 1,110,009

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jan. 27, 2019	Oct. 31, 2018
Current assets:
Accounts receivable, allowance	$ 1,467	$ 1,526
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)	69,917	69,700
Common stock, shares outstanding (in shares)	66,222	67,142
Treasury stock, shares (in shares)	3,695	2,558

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Condensed Consolidated Statements of Income (unaudited) [Abstract]
Revenue	$ 124,712	$ 123,446
Cost of goods sold	98,610	95,784
Gross profit	26,102	27,662
Operating expenses:
Selling, general and administrative	13,792	11,750
Research and development	4,263	4,104
Total operating expenses	18,055	15,854
Operating income	8,047	11,808
Other income (expense):
Interest income and other income (expense), net	1,639	(3,531)
Interest expense	(531)	(574)
Income before income taxes	9,155	7,703
Income tax (provision) benefit	(1,387)	1,778
Net income	7,768	9,481
Net income attributable to noncontrolling interests	2,501	3,583
Net income attributable to Photronics, Inc. shareholders	$ 5,267	$ 5,898
Earnings per share:
Basic (in dollars per share)	$ 0.08	$ 0.09
Diluted (in dollars per share)	$ 0.08	$ 0.09
Weighted-average number of common shares outstanding:
Basic (in shares)	66,583	68,755
Diluted (in shares)	67,047	69,372

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 7,768	$ 9,481
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	6,572	30,087
Amortization of cash flow hedge	0	32
Other	19	(32)
Net other comprehensive income	6,591	30,087
Comprehensive income	14,359	39,568
Less: comprehensive income attributable to noncontrolling interests	3,783	8,433
Comprehensive income attributable to Photronics, Inc. shareholders	$ 10,576	$ 31,135

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Consolidated Statements of Comprehensive Income [Abstract]
Other comprehensive income (loss), tax	$ 0	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Non-Controlling Interests [Member]	Total
Balance at Oct. 29, 2017	$ 687	$ 547,596	$ 189,390		$ 6,891	$ 120,731	$ 865,295
Beginning (in shares) at Oct. 29, 2017	68,666
Net income	$ 0	0	5,898		0	3,583	9,481
Other comprehensive income	0	0	0		25,237	4,850	30,087
Sales of common stock through employee stock option and purchase plans	$ 1	701	0		0	0	702
Sales of common stock through employee stock option and purchase plans (in shares)	116
Restricted stock awards vesting and expense	$ 1	386	0		0	0	387
Restricted stock awards vesting and expense (in shares)	87
Share-based compensation expense	$ 0	497	0		0	0	497
Contribution from noncontrolling interest	0	148	0		0	11,850	11,998
Balance at Jan. 28, 2018	$ 689	549,328	195,288		32,128	141,014	918,447
Balance (in shares) at Jan. 28, 2018	68,869
Cumulative effect of new accounting principle of adoption | ASU 2014-09 [Member]	$ 0	0	1,083	$ 0	0	121	1,204
Cumulative effect of new accounting principle of adoption | Adoption of ASU 2016-16 [Member]	0	0	(1,130)	0	0	(3)	(1,133)
Balance at Oct. 31, 2018	$ 697	555,606	231,445	(23,111)	(4,966)	144,898	904,569
Beginning (in shares) at Oct. 31, 2018	69,700
Net income	$ 0	0	5,267	0	0	2,501	7,768
Net income | ASU 2014-09 [Member]							(1,136)
Other comprehensive income	0	0	0	0	5,309	1,282	6,591
Sales of common stock through employee stock option and purchase plans	$ 1	521	0	0	0	0	522
Sales of common stock through employee stock option and purchase plans (in shares)	94
Restricted stock awards vesting and expense	$ 1	567	0	0	0	0	568
Restricted stock awards vesting and expense (in shares)	123
Share-based compensation expense	$ 0	494	0	0	0	0	494
Contribution from noncontrolling interest	0	0	0	0	0	29,394	29,394
Dividends to noncontrolling interests	0	0	0	0	0	(26,102)	(26,102)
Repurchase of common stock by subsidiary	0	0	0	0	0	(9)	(9)
Purchase of treasury stock	0	0	0	(10,696)	0	0	(10,696)
Balance at Jan. 27, 2019	$ 699	$ 557,188	$ 236,665	$ (33,807)	$ 343	$ 152,082	$ 913,170
Balance (in shares) at Jan. 27, 2019	69,917

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands		3 Months Ended
		Jan. 27, 2019	Jan. 28, 2018
Cash flows from operating activities:
Net income		$ 7,768	$ 9,481
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		18,781	22,363
Changes in assets and liabilities:
Accounts receivable		(9,333)	4,692
Inventories		(2,313)	(2,385)
Other current assets		(22,082)	432
Accounts payable, accrued liabilities, and other		(12,107)	(3,721)
Net cash (used in) provided by operating activities		(19,286)	30,862
Cash flows from investing activities:
Purchases of property, plant and equipment		(106,925)	(10,995)
Government incentives		5,029	0
Other		19	(145)	[1]
Net cash used in investing activities		(101,877)	(11,140)	[1]
Cash flows from financing activities:
Contribution from noncontrolling interest		29,394	11,998
Proceeds from debt		28,180	0
Repayments of long-term debt		0	(1,381)
Dividend paid to noncontrolling interest		(26,102)	0
Purchase of treasury stock		(10,696)	0
Proceeds from share-based arrangements		650	798
Other		(45)	(261)
Net cash provided by financing activities		21,381	11,154
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		2,961	9,767	[1]
Net (decrease) increase in cash, cash equivalents, and restricted cash		(96,821)	40,643	[1]
Cash, cash equivalents, and restricted cash at beginning of period	[1]	331,989	310,936
Cash, cash equivalents, and restricted cash at end of period		235,168	351,579	[1]
Supplemental disclosure information:
Accrual for property, plant and equipment purchased during the period		30,697	1,544
Accrual for property, plant and equipment purchased with funds receivable from government incentives		$ 11,799	$ 0
[1]	Amount has been modified to reflect the adoption of ASU 2016-18 (see Note 14)

BASIS OF FINANCIAL STATEMENT PR

BASIS OF FINANCIAL STATEMENT PRESENTATION	3 Months Ended
	Jan. 27, 2019
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”), 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 ; and we completed 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 31, 2019. 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 31, 2018.

INVENTORIES

INVENTORIES	3 Months Ended
	Jan. 27, 2019
INVENTORIES [Abstract]
INVENTORIES	NOTE 2 - 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: January 27, 2019 October 31, 2018 Finished goods $ 82 $ 668 Work in process 870 3,402 Raw materials 26,922 25,110 $ 27,874 $ 29,180

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	3 Months Ended
	Jan. 27, 2019
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 3 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consists of the following: January 27, 2019 October 31, 2018 Land $ 11,246 $ 11,139 Buildings and improvements 125,180 124,771 Machinery and equipment 1,571,858 1,566,163 Leasehold improvements 19,632 19,577 Furniture, fixtures and office equipment 12,668 12,415 Construction in progress 230,391 128,649 1,970,975 1,862,714 Accumulated depreciation and amortization (1,314,102 ) (1,290,933 ) $ 656,873 $ 571,781 Depreciation and amortization expense for property, plant and equipment was $17.6 million and $21.1 million for the three month periods ended January 27, 2019 and January 28, 2018, respectively. In January 2017, we entered into a noncash transaction with a customer which resulted in the acquisition of equipment with fair values of approximately $6.7 million during the three month period ended January 28, 2018.

PDMCX JOINT VENTURE

PDMCX JOINT VENTURE	3 Months Ended
	Jan. 27, 2019
PDMCX JOINT VENTURE [Abstract]
PDMCX JOINT VENTURE	NOTE 4 – 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 - - - As of January 27, 2019, Photronics and DNP had each contributed cash of approximately $48 million to the joint venture. We estimate that, over the next several years, and per the PDMCX operating agreement (the Agreement), DNP and Photronics will each contribute an additional $32 million of cash, a portion of which will be financed 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 may arise after the initial two - We recorded net losses from the operations of PDMCX of approximately $1.3 million, and $0.5 million during the three month periods ended January 27, 2019 and January 28, 2018, respectively. General creditors of PDMCX do not have recourse to the assets of Photronics, Inc., and our maximum exposure to loss from PDMCX at January 27, 2019, was $44.9 million. As required by the guidance in Topic 810 - “Consolidation” of the Accounting Standards Codification, 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 were PDMCX The carrying amounts of PDMCX assets and liabilities included in our condensed consolidated balance sheets are presented in the following table, together January 27, 2019 October 31, 2018 Classification Carrying Amount Photronics Interest Carrying Photronics Interest Current assets $ 56,957 $ 28,479 $ 9,625 $ 4,813 Non-current assets 91,963 45,982 43,415 21,708 Total assets 148,920 74,461 53,040 26,521 Current liabilities 34,544 17,272 21,205 10,603 Non-current liabilities 24,501 12,251 20 10 Total liabilities 59,045 29,523 21,225 10,613 Net assets $ 89,875 $ 44,938 $ 31,815 $ 15,908

DEBT

DEBT	3 Months Ended
	Jan. 27, 2019
DEBT [Abstract]
DEBT	NOTE 5 - DEBT Debt consists of the following: January 27, 2019 October 28, 2018 3.25% convertible senior notes due in April 2019 $ 57,482 $ 57,453 Project Loan due in December 2025 14,824 - Working Capital Loan due in January 2022 10,105 - Short term debt due in February 2019 3,720 86,131 57,453 Current portion (61,647 ) (57,453 ) $ 24,484 $ - 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, and is subject to adjustment upon the occurrence of certain events, which are described in the indenture dated January 22, 2015. Note holders may convert each $1,000 principal amount of notes at any time prior to the close of business on the second scheduled trading day immediately preceding April 1, 2019, and we are not required to redeem the notes other than upon conversion In November 2018, Xiamen American Japan Photronics Mask Co., Ltd. (“PDMCX”), an indirect majority owned joint venture subsidiary of Photronics, Inc., was approved for credit of $50 million, pursuant to which PDMCX will enter into separate loan agreements (“the Project Loans”) for each borrowing . The Project Loans, , are being used to finance certain capital expenditures in China. PDMCX has agreed to grant a lien on the land, building and certain equipment owned by PDMCX as collateral for the Project Loans. As of January 27, 2019, PDMCX had borrowed $14.8 million against this approval. This borrowing will be repaid in semiannual installments, which will commence in June 2020 and end in December 2022. In February 2019, PDMCX borrowed an additional $11.4 million, which will be repaid semiannually; repayments will commence in June 2023 and end in December 2025. The interest rates on the Project Loans are based on the benchmark lending rate of the People’s Bank of China (4.9% at January 27, 2019). Interest incurred on these loans will be reimbursed through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provide for such reimbursements up to a prescribed limit. In November 2018, PDMCX was approved for credit of $25.0 million, subject to certain limitations related to PDMCX registered capital at the time of borrowing, pursuant to which PDMCX may enter into separate loan agreements. No guarantees are required as part of this approval. As of January 27, 2019, PDMCX had borrowed $13.8 million against this approval of which $3.7 million were 90-day loans. The remaining $10.1 million borrowed (the “Working Capital Loans”) is to be repaid semiannually from the dates of the individual borrowings, with repayments commencing in May 2019 and ending in January 2022. The 90-day loans were repaid in our second quarter of 2019. These loans, which are denominated in renminbi and U.S. dollars are being used for general financing purposes, including payments of import and value added taxes. The interest rates on the 90-day loans were the market rate on the date of issuance (4.9%), and interest rates on the Working Capital Loans are approximately 5%, and are based on the RMB Loan Prime Rate of the National Interbank Funding Center, plus a spread of 67.75 basis points. Interest incurred on the loans will be reimbursed through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provide for such reimbursements up to a prescribed limit. In September 2018, we entered into an amended and restated credit agreement (“the new agreement”) that expires in September 2023. The new agreement, which replaced our prior credit facility, has a $50 million borrowing limit, with an expansion capacity to $100 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 new agreement limits the amount we can pay in 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 January 27, 2019. We had no outstanding borrowings against the new agreement at January 27, 2019, and $50 million was available for borrowing. The interest rate on the new agreement (2.5% at January 27, 2019) is based on our total leverage ratio at LIBOR plus a spread, as defined in the credit facility.

REVENUE

REVENUE	3 Months Ended
	Jan. 27, 2019
REVENUE [Abstract]
REVENUE	NOTE 6 - REVENUE We adopted Accounting Standards Update 2014-09 and all subsequent amendments which are collectively codified in Accounting Standards Codification Topic 606 – “Revenue from Contracts with Customers” (“Topic 606”) - on November 1, 2018, under the modified retrospective transition method, only to contracts that were not complete as of the date of adoption.. This approach requires prospective application of the guidance with a cumulative effect adjustment to retained earnings to reflect the impact of the adoption on contracts that were not complete as of the date of the adoption. In accordance with the modified retrospective transition method, the results of the prior year period presented have not been adjusted for the effects of Topic 606. Under Topic 606, we recognize revenue when, or as, control of a good or service transfers to a customer, in an amount that reflects the consideration to which we expect to be entitled in exchange for transferring those goods or services, whereas, prior to our adoption of Topic 606, we recognized revenue when we shipped to customers or, under some arrangements, when the customers received the goods. The following tables present the impacts of our adoption of Topic 606 on our January 27, 2019, condensed consolidated balance sheet and our condensed consolidated statements of income and cash flows for the three months ended January 27, 2019. Condensed Consolidated Balance Sheet January 27, 2019 As Reported Adjustments Balance without Adoption of Topic 606 Assets Accounts receivable $ 131,066 $ (319 ) $ 130,747 Inventory 27,874 4,678 32,552 Other current assets 57,043 (6,846 ) 50,197 Deferred income taxes 15,405 (74 ) 15,331 Liabilities Accrued liabilities $ 43,005 $ 246 $ 43,251 Deferred income taxes 908 (318 ) 590 Equity Retained earnings $ 236,665 $ (1,788 ) $ 234,877 Noncontrolling interests 152,082 (553 ) 151,529 Condensed Consolidated Statement of Income Three Months Ended January 27, 2019 As Reported Adjustments Balance without Adoption of Topic 606 Revenue $ 124,712 $ (2,245 ) $ 122,467 Cost of goods sold 98,610 (901 ) 97,709 Gross margin 26,102 (1,344 ) 24,758 Provision for taxes 1,387 (208 ) 1,179 Net income 7,768 (1,136 ) 6,632 Noncontrolling interests 2,501 (431 ) 2,070 Income attributable to Photronics, Inc. shareholders $ 5,267 $ (705 ) $ 4,562 Condensed Consolidated Statement of Cash Flows Three Months Ended January 27, 2019 As Reported Adjustments Balance without Adoption of Topic 606 Net Income $ 7,768 $ (1,136 ) $ 6,632 Changes in operating accounts: Accounts receivable $ (9,333 ) $ (287 ) $ (9,620 ) Inventories (2,313 ) (933 ) (3,246 ) Other current assets (22,082 ) 2,223 (19,859 ) Accounts payable, accrued liabilities, and other (12,107 ) 133 (11,974 ) We account for an arrangement as a revenue contract when each party has approved and is committed to perform under the contract, the rights of the contracting parties regarding the goods or services to be transferred and the payment terms are identifiable, the arrangement has commercial substance, and collection of consideration is probable. Substantially all of our revenue comes from the sales of photomasks. We typically contract with our customers to sell sets of photomasks (referred to as “mask sets”), which are comprised of multiple layers, the predominance of which we invoice as they ship to customers. As the photomasks are manufactured to customer specifications they have no alternative use to us and, as our contracts generally provide us with the right to payment for work completed to date, we recognize revenue as we perform, or “over time” on most of our contracts. We measure our performance to date using an input method, which is based on our estimated costs to complete the various manufacturing phases of a photomask. At the end of a reporting period, there will be a number of As stated above, photomasks are manufactured in accordance with proprietary designs provided by our customers; thus, they are individually unique. Due to their uniqueness and other factors, their transaction prices are individually established through negotiations with customers; consequently, our photomasks do not have standard or “list” prices. The transaction prices of the vast majority of our revenue contracts include only fixed amounts of consideration. In certain instances, such as when we offer a customer an early payment discount, an estimate of variable consideration would be included in the transaction price, but only to the extent that a significant reversal of revenue would not occur when the uncertainty related to the variability is resolved. Contract Assets, Contract Liabilities and Accounts Receivable We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. Contract assets reflect our transfer of control to customers of photomasks that are in-process or completed but not yet shipped. A receivable is recognized when we have an unconditional right to payment for our performance, which generally occurs when we ship the photomasks. Our contract assets account consist an individual reporting We generally record our accounts receivables at their billed amounts. All outstanding past due customer invoices are reviewed during, and at the end of, every period for collectibility. To the extent we believe a loss on the collection of a customer invoice is probable, we record the loss and credit the allowance for doubtful accounts. In the event that an amount is determined to be uncollectible, we charge the allowance for doubtful accounts and eliminate the related receivable. We did not incur any credit losses on our accounts receivable Our invoice terms generally range from net thirty to ninety days, depending on both the geographic market in which the transaction occurs and our payment agreements with specific customers. In the event that our evaluation of a customer’s business prospects and financial condition indicate that the customer presents a collectibility risk, we require payment in advance of performance. We have elected the practical expedient allowed under Topic 606 that permits us not to adjust a contract’s promised amount of consideration to reflect a financing component when the period between when we transfer control of goods or services to customers and when we are paid, is one year or less. In instances when we are paid in advance of our performance, we record a contract liability and, as allowed under the practical expedient in Topic 606, recognize interest expense only if the period between when we receive payment from the customer and the date when we expect to be entitled to the payment is greater than one year. Historically, advance payments we’ve received from customers have not preceded the completion of our performance obligations by more than one year. Disaggregation of Revenue The following tables present Revenue by Product Type Three Months Ended January 27, 2019 IC High-end $ 34,566 Mainstream 60,314 Total IC $ 94,880 FPD High-end $ 21,466 Mainstream 8,366 Total FPD $ 29,832 $ 124,712 Revenue by Geographic Location Taiwan $ 57,740 Korea 35,237 United States 22,472 Europe 8,354 Other 909 $ 124,712 Revenue by Timing of Recognition Over time $ 120,845 At a point in time 3,867 $ 124,712 Contract Costs We pay commissions to third party sales agents for certain sales that they obtain for us. However, the basis of the commissions is ; thus, no is established Remaining Performance Obligations As we are typically required to fulfill customer orders within a short time period, our backlog of orders is generally not in excess of one to two weeks for IC photomasks and two to three weeks for FPD photomasks. As allowed under Topic 606, we have elected not to disclose our remaining performance obligations, comprised of completion Sales and Similar Taxes We report our revenue net of any sales or similar taxes we collect on behalf of governmental entities. Product Warranty Our photomasks are sold under warranties that generally range from 30 to 90 days. We warrant that our photomasks conform to customer specifications, and that we will repair or replace, at our option, any photomasks that fail to do so. The warranties do not represent separate performance obligations in our revenue contracts. Historically, customer claims under warranty have been immaterial.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Jan. 27, 2019
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 or its subsidiaries. In the event of a change in control (as defined in the Plan), the vesting of awards may be accelerated. The Plan, aspects of which are more fully described below, prohibits further awards from being issued under prior plans. We incurred total share-based compensation expenses of $1.1 million and $0.9 million 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 and are calculated 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 the options granted are expected to remain outstanding. The risk-free rate of return for the estimated term of an option is based on the U.S. Treasury yield curve in effect at the date of grant. There were 132,000 share options granted during the three month period ended January 27, 2019, with a weighted-average grant date fair value of $3.31 per share, and there were 252,000 share options granted during the three month period ended January 28, 2018, with a weighted-average grant date fair value of $2.74 per share. As of January 27, 2019, the total unrecognized compensation cost related to unvested option awards was approximately $1.6 million. That cost is expected to be recognized over a weighted-average amortization period of 2.4 years. The weighted-average inputs and risk-free rates of return used to calculate the grant date fair value of options issued during the three month periods ended January 27, 2019 and January 28, 2018, are presented in the following table. Three Months Ended January 27, 2019 January 28, 2018 Volatility 33.1 % 31.6 % Risk free rate of return 2.5-2.9 % 2.2 % Dividend yield 0.0 % 0.0 % Expected term 5.1 years 5.0 years Information on outstanding and exercisable option awards as of January 27, 2019, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at January 27, 2019 2,452,168 $ 8.84 5.9 years $ 4,886 Exercisable at January 27, 2019 1,831,351 $ 8.42 5.1 years $ 4,373 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 435,000 restricted stock awards issued during the three month period ended January 27, 2019, with a weighted-average grant date fair value of $9.80 per share, and there were 280,000 restricted stock awards issued during the three month period ended January 28, 2018, with a weighted-average grant date fair value of $8.63 per share. As of January 27, 2019, the total compensation cost not yet recognized related to unvested restricted stock awards was approximately $6.3 million. That cost is expected to be recognized over a weighted-average amortization period of 3.1 years. As of January 27, 2019, there were 724,113 shares of restricted stock outstanding.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jan. 27, 2019
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 8 - INCOME TAXES We calculate our provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period. The effective tax rate of 15.2% differs from the U.S. statutory rate of 21.0% in the three month period ended January 27, 2019, primarily due to earnings being taxed at lower statutory rates in foreign jurisdictions, the settlement of a tax audit, and the benefit of tax holidays Valuation allowances in jurisdictions with historic losses, including the U.S., eliminate the tax benefit of losses in Unrecognized tax benefits related to uncertain tax positions were $0.9 million at January 27, 2019, and $1.9 million at October 31, 2018, all of which, if recognized, would favorably impact the Company’s effective tax rate. Accrued interest and penalties related to unrecognized tax benefits was $0.1 million at January 29, 2019 and October 31, 2018. Reduction We were granted a five-year tax holiday in Taiwan that expires in December 31, 2019. This tax holiday reduced foreign taxes by $0.8 million, and $0.1 million in the three month periods ended January 27, 2019 and January 28, 2018, respectively, with a one The effective tax rate benefit of (23.1%) differs from the post U.S. Tax Reform blended statutory rate of 23.4% in the three month period ended January 28, 2018, primarily due to the benefit from U.S. and Taiwan Tax Reform (as discussed below), earnings being taxed at lower statutory rates in foreign jurisdictions, and the benefit of various investment credits in a foreign jurisdiction. 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. Based on the enactment date, we accounted for the Act in our interim period ended January 28, 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 Accounting Standards Codification 740 is incomplete for certain income tax effects of the Act. We adopted SAB 118 in our first quarter of fiscal year 2018, and finalized the effects in our fourth quarter of fiscal 2018. In the period ended January 28, 2018, we recognized the following effects in our provision for income taxes: · The Act repealed the corporate alternative minimum tax (“AMT”) for tax years beginning after December 31, 2017, and provided that existing AMT credit carryforwards are fully refundable. We recognized a $3.9 million benefit on AMT credit carryforwards, that we previously determined were not more likely than not going to be realized and reversed · As of January 1, 2018, the Act reduced the corporate income tax rate from a maximum 35% to a flat 21%, requiring us to revalue our deferred tax assets and liabilities utilizing the rate applicable to the period when a temporary difference will reverse. Our net deferred tax asset is fully offset by a valuation allowance, and of the deferred tax assets and liabilities resulted · The Act imposed a transition tax for a one-time deemed repatriation of the accumulated earnings of foreign subsidiaries. The entire amount of transition tax was fully offset by tax credits, including carryforwards , that resulted the 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%, requiring us to revalue our deferred tax assets and liabilities utilizing the rate applicable to the period when a temporary difference will reverse . Accordingly Adoption of New Accounting Standard In the first quarter of 2019, the Company adopted Accounting Standards Update 2016-16 – “Intra-Entity Transfers Other Than Inventory”, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. In connection therewith, we recorded a transition adjustment of $1.1 million that reduced prepaid income taxes (included in Other current assets on the condensed consolidated balance sheets) against beginning retained earnings.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Jan. 27, 2019
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	NOTE 9 - EARNINGS PER SHARE The calculation of basic and diluted earnings per share is presented below. Three Months Ended January 27, 2019 January 28, 2018 Net income attributable to Photronics, Inc. shareholders $ 5,267 $ 5,898 Effect of dilutive securities - - Earnings used for diluted earnings per share $ 5,267 $ 5,898 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 66,583 68,755 Effect of dilutive securities: Share-based payment awards 464 617 Potentially dilutive common shares 464 617 Weighted-average common shares used for diluted earnings per share 67,047 69,372 Basic earnings per share $ 0.08 $ 0.09 Diluted earnings per share $ 0.08 $ 0.09 The table below shows the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise price exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be antidilutive. The table also shows convertible notes that, if converted, would be antidilutive. Three Months Ended January 27, 2019 January 28, 2018 Convertible notes 5,542 5,542 Share-based payment awards 1,063 1,583 Total potentially dilutive shares excluded 6,605 7,125

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT	3 Months Ended
	Jan. 27, 2019
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 month periods ended January 27, 2019 and January 28, 2018. Three Months Ended January 27, 2019 Foreign Currency Translation Adjustments Other Total Balance at November 1, 2018 $ (4,328 ) $ (638 ) $ (4,966 ) Other comprehensive income 6,572 19 6,591 Less: other comprehensive income attributable to noncontrolling interests 1,273 9 1,282 Balance at January 27, 2019 $ 971 $ (628 ) $ 343 Three Months Ended January 28, 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 30,087 - (32 ) 30,055 Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 30,087 32 (32 ) 30,087 Less: other comprehensive income(loss) attributable to noncontrolling interests 4,866 - (16 ) 4,850 Balance at January 28, 2018 $ 32,848 $ (16 ) $ (704 ) $ 32,128

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Jan. 27, 2019
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 11 - FAIR VALUE MEASUREMENTS The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices (unadjusted) in active markets for identical securities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly; and Level 3, defined as unobservable inputs that are not corroborated by market data. The 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 was 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. We did not have any assets or liabilities measured at fair value, on a recurring or a nonrecurring basis, at January 27, 2019 or October 31, 2018. Fair Value of Financial Instruments Not Measured at Fair Value The fair value of our convertible senior notes is a Level 2 measurement, as it was 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 January 27, 2019 and October 31, 2018. January 27, 2019 October 31, 2018 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 63,405 $ 57,482 $ 62,094 $ 57,453

SHARE REPURCHASE PROGRAM

SHARE REPURCHASE PROGRAM	3 Months Ended
	Jan. 27, 2019
SHARE REPURCHASE PROGRAM [Abstract]
SHARE REPURCHASE PROGRAM	NOTE 12 – SHARE REPURCHASE PROGRAM In October 2018, the Company’s Board of Directors authorized the repurchase of up to $25 million of its common stock, to be executed in open-market transactions or in accordance with a repurchase plan under rule 10b5-1 of the Securities Act of 1933 (as amended). The share repurchase program commenced on October 22, 2018, and expired on February 1, 2019. The number is Three Months Ended January 27, 2019 From Inception Date of October 22, 2018 Number of shares repurchased 1,137 1,467 Cost of shares repurchased $ 10,694 $ 13,807 Average price paid per share $ 9.40 $ 9.41

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jan. 27, 2019
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13 - COMMITMENTS AND CONTINGENCIES As of January 27, 2019, the Company had commitments outstanding for capital equipment expenditures of approximately $38 million, nearly all of which related to building and equipping our China facilities. 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 consolidated financial statements.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Jan. 27, 2019
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 14 - 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 was effective for Photronics, Inc. in its first quarter of fiscal year 2019 and was applied on a retrospective transition basis. Early adoption is permitted, including adoption in an interim period. Our adoption of the update did not materially impact our cash flows statement. 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 us in our 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. Please see Note 8 for a discussion of the effects of adopting the guidance. 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 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 superseded nearly all then 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 deferred the effective date of ASU 2014-09 by one year and allowed entities to early adopt, but no earlier than the original effective date. This update allowed for either full retrospective or modified retrospective adoption. In April 2016, the FASB issued ASU 2016-10 “Identifying Performance Obligations and Licensing” which amended guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 were the same as those for ASU 2014-09. Prior to our adoption of Topic 606, we recognized revenue when we shipped to customers or , under some arrangements, when the customers received the goods . The guidance allows for a number of accounting policy elections and practical expedients. In addition to our above mentioned election to use the modified retrospective application method for adopting the guidance, those we have employed that are most significant to us are summarized below. Shipping and handling activities performed after control of a good is transferred to a customer We have elected to treat shipping and handling activities that occur after control of a good is transferred to a customer as activities to fulfill our promise to transfer goods to the customer. Thus, such activities will not be considered to be separate performance obligations under contracts with our customers. Non-recognition of financing component when we transfer goods to a customer and the period between when we transfer and when we are paid will be less than one year We have elected the practical expedient that allows for the non-recognition, as a component of a customer contract, of a financing component when the period between when we transfer a good and when we are paid will be less than one year. Exclusion of sales and similar taxes collected from customers in the transaction price Consistent with our practice before adoption of the new guidance, we will not recognize sales and similar taxes we collect from customers as revenue. Use of an “input method” to measure our progress towards the transfer of control of performance obligations to customers As, in our judgment, an input method based on our efforts to satisfy our performance obligations will best serve to depict the transfer of control of our performance obligations to our customers, we have adopted an accounting policy to employ such a method. Our decision was based primarily on the facts that our photomasks are not physically transferred to customers until they are complete, and that we can employ our input-based cost accumulation systems and methods to measure our progress towards the transfer of control of our performance obligations to customers. Non-disclosure of the transaction prices of unsatisfied or partially satisfied performance obligations For contracts that have an original expected duration of one year or less, we have elected the practical expedient that allows us not to disclose the aggregate transaction prices of unsatisfied or partially satisfied performance obligations that exist at the end of a reporting period.

INVENTORIES (Policies)

INVENTORIES (Policies)	3 Months Ended
	Jan. 27, 2019
INVENTORIES [Abstract]
Inventories	Inventories are stated at the lower of cost, determined under the first-in, first-out (“FIFO”) method, or net realizable value.

REVENUE (Policies)

REVENUE (Policies)	3 Months Ended
	Jan. 27, 2019
REVENUE [Abstract]
Revenue	We adopted Accounting Standards Update 2014-09 and all subsequent amendments which are collectively codified in Accounting Standards Codification Topic 606 – “Revenue from Contracts with Customers” (“Topic 606”) - on November 1, 2018, under the modified retrospective transition method. This approach requires prospective application of the guidance with a cumulative effect adjustment to retained earnings to reflect the impact of the adoption on contracts that were not complete as of the date of the adoption. In accordance with the modified retrospective transition method, the results of the prior year period presented have not been adjusted for the effects of Topic 606. Under Topic 606, we recognize revenue when, or as, control of a good or service transfers to a customer, in an amount that reflects the consideration to which we expect to be entitled in exchange for transferring those goods or services, whereas, prior to our adoption of Topic 606, we recognized revenue when we shipped to customers or, under some arrangements, when the customers received the goods. We account for an arrangement as a revenue contract when each party has approved and is committed to perform under the contract, the rights of the contracting parties regarding the goods or services to be transferred and the payment terms are identifiable, the arrangement has commercial substance, and collection of consideration is probable. Substantially all of our revenue comes from the sales of photomasks. We typically contract with our customers to sell sets of photomasks (referred to as “mask sets”), which are comprised of multiple layers, the predominance of which we invoice as they ship to customers. As the photomasks are manufactured to customer specifications they have no alternative use to us and, as our contracts generally provide us with the right to payment for work completed to date, we recognize revenue as we perform, or “over time” on most of our contracts. We measure our performance to date using an input method, which is based on our estimated costs to complete the various manufacturing phases of a photomask. At the end of a reporting period, there will be a number ofrevenue contracts on which we have performed; for any such contracts that we are entitled to be compensated for our costs incurred plus a reasonable profit, we recognize revenue and a corresponding contract asset for such performance. We account for shipping and handling activities that we perform after a customer obtains control of a good as being activities to fulfill our promise to transfer the good to the customer, rather than as promised services, or performance obligations, under the contract. As stated above, photomasks are manufactured in accordance with proprietary designs provided by our customers; thus, they are individually unique. Due to their uniqueness and other factors, their transaction prices are individually established through negotiations with customers; consequently, our photomasks do not have standard or “list” prices. The transaction prices of the vast majority of our revenue contracts include only fixed amounts of consideration. In certain instances, such as when we offer a customer an early payment discount, an estimate of variable consideration would be included in the transaction price, but only to the extent that a significant reversal of revenue would not occur when the uncertainty related to the variability is resolved.
Contract Assets, Contract Liabilities and Accounts Receivable	We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. Contract assets reflect our transfer of control to customers of photomasks that are in-process or completed but not yet shipped. A receivable is recognized when we have an unconditional right to payment for our performance, which generally occurs when we ship the photomasks. Our contract assets primarily of a significant amount of our work-in-process inventory and fully manufactured photomasks which have not yet shipped, if we have an enforceable right to collect consideration (including a reasonable profit), in the event the in-process orders are cancelled by customers. On contract basis, we net contract assets with contract liabilities (deferred revenue) for financial purposes. Our contract assets and liabilities are typically classified as current, as our production cycle and our lead times are both under one year. Contract assets of $6.8 million are included in “Other” current assets, and contract liabilities of $9.5 million are included in “Other” current liabilities in our January 27, 2019 condensed consolidated balance sheet. At November 1, 2018, our date of adoption of Topic 606, we had contract assets of $4.6 million and contract liabilities of $7.8 million. We did not impair any contract assets during the three month period ended January 27, 2019, and we recognized $0.7 million of revenue from the settlement of contract liabilities that existed at the beginning of that period. We generally record our accounts receivables at their billed amounts. All outstanding past due customer invoices are reviewed during, and at the end of, every period for collectibility. To the extent we believe a loss on the collection of a customer invoice is probable, we record the loss and credit the allowance for doubtful accounts. In the event that an amount is determined to be uncollectible, we charge the allowance for doubtful accounts and eliminate the related receivable. We did not incur any credit losses on our accounts receivable Our invoice terms generally range from net thirty to ninety days, depending on both the geographic market in which the transaction occurs and our payment agreements with specific customers. In the event that our evaluation of a customer’s business prospects and financial condition indicate that the customer presents a collectibility risk, we require payment in advance of performance. We have elected the practical expedient allowed under Topic 606 that permits us not to adjust a contract’s promised amount of consideration to reflect a financing component when the period between when we transfer control of goods or services to customers and when we are paid, is one year or less. In instances when we are paid in advance of our performance, we record a contract liability and, as allowed under the practical expedient in Topic 606, recognize interest expense only if the period between when we receive payment from the customer and the date when we expect to be entitled to the payment is greater than one year. Historically, advance payments we’ve received from customers have not preceded the completion of our performance obligations by more than one year.
Contract Costs	Contract Costs We pay commissions to third party sales agents for certain sales that they obtain for us. However, the basis of the commissions is ; thus, no is established
Remaining Performance Obligations	Remaining Performance Obligations As we are typically required to fulfill customer orders within a short time period, our backlog of orders is generally not in excess of one to two weeks for IC photomasks and two to three weeks for FPD photomasks. As allowed under Topic 606, we have elected not to disclose our remaining performance obligations, comprised of completion
Sales and Similar Taxes	Sales and Similar Taxes We report our revenue net of any sales or similar taxes we collect on behalf of governmental entities.

SHARE-BASED COMPENSATION (Polic

SHARE-BASED COMPENSATION (Policies)	3 Months Ended
	Jan. 27, 2019
Employee Stock Option [Member]
Stock Options [Abstract]
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 and are calculated 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 the options granted are expected to remain outstanding. The risk-free rate of return for the estimated term of an option is based on the U.S. Treasury yield curve in effect at the date of grant.

INCOME TAXES (Policies)

INCOME TAXES (Policies)	3 Months Ended
	Jan. 27, 2019
INCOME TAXES [Abstract]
Income Tax	We calculate our provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period. 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. Based on the enactment date, we accounted for the Act in our interim period ended January 28, 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 Accounting Standards Codification 740 is incomplete for certain income tax effects of the Act. We adopted SAB 118 in our first quarter of fiscal year 2018, and finalized the effects in our fourth quarter of fiscal 2018. Adoption of New Accounting Standard In the first quarter of 2019, the Company adopted Accounting Standards Update 2016-16 – “Intra-Entity Transfers Other Than Inventory”, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. In connection therewith, we recorded a transition adjustment of $1.1 million that reduced prepaid income taxes (included in Other current assets on the condensed consolidated balance sheets) against beginning retained earnings.

FAIR VALUE MEASUREMENTS (Polici

FAIR VALUE MEASUREMENTS (Policies)	3 Months Ended
	Jan. 27, 2019
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 PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
	Jan. 27, 2019
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 was effective for Photronics, Inc. in its first quarter of fiscal year 2019 and was applied on a retrospective transition basis. Early adoption is permitted, including adoption in an interim period. Our adoption of the update did not materially impact our cash flows statement. 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 us in our 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. Please see Note 8 for a discussion of the effects of adopting the guidance. 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 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 superseded nearly all then 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 deferred the effective date of ASU 2014-09 by one year and allowed entities to early adopt, but no earlier than the original effective date. This update allowed for either full retrospective or modified retrospective adoption. In April 2016, the FASB issued ASU 2016-10 “Identifying Performance Obligations and Licensing” which amended guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 were the same as those for ASU 2014-09. Prior to our adoption of Topic 606, we recognized revenue when we shipped to customers or , under some arrangements, when the customers received the goods . The guidance allows for a number of accounting policy elections and practical expedients. In addition to our above mentioned election to use the modified retrospective application method for adopting the guidance, those we have employed that are most significant to us are summarized below. Shipping and handling activities performed after control of a good is transferred to a customer We have elected to treat shipping and handling activities that occur after control of a good is transferred to a customer as activities to fulfill our promise to transfer goods to the customer. Thus, such activities will not be considered to be separate performance obligations under contracts with our customers. Non-recognition of financing component when we transfer goods to a customer and the period between when we transfer and when we are paid will be less than one year We have elected the practical expedient that allows for the non-recognition, as a component of a customer contract, of a financing component when the period between when we transfer a good and when we are paid will be less than one year. Exclusion of sales and similar taxes collected from customers in the transaction price Consistent with our practice before adoption of the new guidance, we will not recognize sales and similar taxes we collect from customers as revenue. Use of an “input method” to measure our progress towards the transfer of control of performance obligations to customers As, in our judgment, an input method based on our efforts to satisfy our performance obligations will best serve to depict the transfer of control of our performance obligations to our customers, we have adopted an accounting policy to employ such a method. Our decision was based primarily on the facts that our photomasks are not physically transferred to customers until they are complete, and that we can employ our input-based cost accumulation systems and methods to measure our progress towards the transfer of control of our performance obligations to customers. Non-disclosure of the transaction prices of unsatisfied or partially satisfied performance obligations For contracts that have an original expected duration of one year or less, we have elected the practical expedient that allows us not to disclose the aggregate transaction prices of unsatisfied or partially satisfied performance obligations that exist at the end of a reporting period.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Jan. 27, 2019
INVENTORIES [Abstract]
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: January 27, 2019 October 31, 2018 Finished goods $ 82 $ 668 Work in process 870 3,402 Raw materials 26,922 25,110 $ 27,874 $ 29,180

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	3 Months Ended
	Jan. 27, 2019
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract]
Property, Plant and Equipment	Property, plant and equipment, net consists of the following: January 27, 2019 October 31, 2018 Land $ 11,246 $ 11,139 Buildings and improvements 125,180 124,771 Machinery and equipment 1,571,858 1,566,163 Leasehold improvements 19,632 19,577 Furniture, fixtures and office equipment 12,668 12,415 Construction in progress 230,391 128,649 1,970,975 1,862,714 Accumulated depreciation and amortization (1,314,102 ) (1,290,933 ) $ 656,873 $ 571,781

PDMCX JOINT VENTURE (Tables)

PDMCX JOINT VENTURE (Tables)	3 Months Ended
	Jan. 27, 2019
PDMCX JOINT VENTURE [Abstract]
Carrying Amounts and Exposure to Loss Related to Assets and Liabilities	The carrying amounts of PDMCX assets and liabilities included in our condensed consolidated balance sheets are presented in the following table, together January 27, 2019 October 31, 2018 Classification Carrying Amount Photronics Interest Carrying Photronics Interest Current assets $ 56,957 $ 28,479 $ 9,625 $ 4,813 Non-current assets 91,963 45,982 43,415 21,708 Total assets 148,920 74,461 53,040 26,521 Current liabilities 34,544 17,272 21,205 10,603 Non-current liabilities 24,501 12,251 20 10 Total liabilities 59,045 29,523 21,225 10,613 Net assets $ 89,875 $ 44,938 $ 31,815 $ 15,908

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Jan. 27, 2019
DEBT [Abstract]
Long-Term Debt	Debt consists of the following: January 27, 2019 October 28, 2018 3.25% convertible senior notes due in April 2019 $ 57,482 $ 57,453 Project Loan due in December 2025 14,824 - Working Capital Loan due in January 2022 10,105 - Short term debt due in February 2019 3,720 86,131 57,453 Current portion (61,647 ) (57,453 ) $ 24,484 $ -

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Jan. 27, 2019
REVENUE [Abstract]
Impacts of Adoption of Condensed Consolidated Balance Sheet, Condensed Consolidated Statements of Income and Cash Flows	The following tables present the impacts of our adoption of Topic 606 on our January 27, 2019, condensed consolidated balance sheet and our condensed consolidated statements of income and cash flows for the three months ended January 27, 2019. Condensed Consolidated Balance Sheet January 27, 2019 As Reported Adjustments Balance without Adoption of Topic 606 Assets Accounts receivable $ 131,066 $ (319 ) $ 130,747 Inventory 27,874 4,678 32,552 Other current assets 57,043 (6,846 ) 50,197 Deferred income taxes 15,405 (74 ) 15,331 Liabilities Accrued liabilities $ 43,005 $ 246 $ 43,251 Deferred income taxes 908 (318 ) 590 Equity Retained earnings $ 236,665 $ (1,788 ) $ 234,877 Noncontrolling interests 152,082 (553 ) 151,529 Condensed Consolidated Statement of Income Three Months Ended January 27, 2019 As Reported Adjustments Balance without Adoption of Topic 606 Revenue $ 124,712 $ (2,245 ) $ 122,467 Cost of goods sold 98,610 (901 ) 97,709 Gross margin 26,102 (1,344 ) 24,758 Provision for taxes 1,387 (208 ) 1,179 Net income 7,768 (1,136 ) 6,632 Noncontrolling interests 2,501 (431 ) 2,070 Income attributable to Photronics, Inc. shareholders $ 5,267 $ (705 ) $ 4,562 Condensed Consolidated Statement of Cash Flows Three Months Ended January 27, 2019 As Reported Adjustments Balance without Adoption of Topic 606 Net Income $ 7,768 $ (1,136 ) $ 6,632 Changes in operating accounts: Accounts receivable $ (9,333 ) $ (287 ) $ (9,620 ) Inventories (2,313 ) (933 ) (3,246 ) Other current assets (22,082 ) 2,223 (19,859 ) Accounts payable, accrued liabilities, and other (12,107 ) 133 (11,974 )
Disaggregation of Revenue	The following tables present Revenue by Product Type Three Months Ended January 27, 2019 IC High-end $ 34,566 Mainstream 60,314 Total IC $ 94,880 FPD High-end $ 21,466 Mainstream 8,366 Total FPD $ 29,832 $ 124,712 Revenue by Geographic Location Taiwan $ 57,740 Korea 35,237 United States 22,472 Europe 8,354 Other 909 $ 124,712 Revenue by Timing of Recognition Over time $ 120,845 At a point in time 3,867 $ 124,712

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Jan. 27, 2019
SHARE-BASED COMPENSATION [Abstract]
Assumptions Used to Calculate Weighted-Average Grant Date Fair Value of Options	The weighted-average inputs and risk-free rates of return used to calculate the grant date fair value of options issued during the three month periods ended January 27, 2019 and January 28, 2018, are presented in the following table. Three Months Ended January 27, 2019 January 28, 2018 Volatility 33.1 % 31.6 % Risk free rate of return 2.5-2.9 % 2.2 % Dividend yield 0.0 % 0.0 % Expected term 5.1 years 5.0 years
Information on Outstanding and Exercisable Option	Information on outstanding and exercisable option awards as of January 27, 2019, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at January 27, 2019 2,452,168 $ 8.84 5.9 years $ 4,886 Exercisable at January 27, 2019 1,831,351 $ 8.42 5.1 years $ 4,373

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Jan. 27, 2019
EARNINGS PER SHARE [Abstract]
Calculation of Basic and Diluted Earnings Per Share	The calculation of basic and diluted earnings per share is presented below. Three Months Ended January 27, 2019 January 28, 2018 Net income attributable to Photronics, Inc. shareholders $ 5,267 $ 5,898 Effect of dilutive securities - - Earnings used for diluted earnings per share $ 5,267 $ 5,898 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 66,583 68,755 Effect of dilutive securities: Share-based payment awards 464 617 Potentially dilutive common shares 464 617 Weighted-average common shares used for diluted earnings per share 67,047 69,372 Basic earnings per share $ 0.08 $ 0.09 Diluted earnings per share $ 0.08 $ 0.09
Outstanding Securities Excluded from Calculation of Diluted Earnings or Loss Per Share	The table below shows the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise price exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be antidilutive. The table also shows convertible notes that, if converted, would be antidilutive. Three Months Ended January 27, 2019 January 28, 2018 Convertible notes 5,542 5,542 Share-based payment awards 1,063 1,583 Total potentially dilutive shares excluded 6,605 7,125

CHANGES IN ACCUMULATED OTHER _2

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables)	3 Months Ended
	Jan. 27, 2019
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]
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 month periods ended January 27, 2019 and January 28, 2018. Three Months Ended January 27, 2019 Foreign Currency Translation Adjustments Other Total Balance at November 1, 2018 $ (4,328 ) $ (638 ) $ (4,966 ) Other comprehensive income 6,572 19 6,591 Less: other comprehensive income attributable to noncontrolling interests 1,273 9 1,282 Balance at January 27, 2019 $ 971 $ (628 ) $ 343 Three Months Ended January 28, 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 30,087 - (32 ) 30,055 Amounts reclassified from other comprehensive income - 32 - 32 Net current period other comprehensive income (loss) 30,087 32 (32 ) 30,087 Less: other comprehensive income(loss) attributable to noncontrolling interests 4,866 - (16 ) 4,850 Balance at January 28, 2018 $ 32,848 $ (16 ) $ (704 ) $ 32,128

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Jan. 27, 2019
FAIR VALUE MEASUREMENTS [Abstract]
Fair Value and Carrying Amount of Convertible Senior Notes	The table below presents the fair and carrying values of our convertible senior notes at January 27, 2019 and October 31, 2018. January 27, 2019 October 31, 2018 Fair Value Carrying Value Fair Value Carrying Value 3.25% convertible senior notes due 2019 $ 63,405 $ 57,482 $ 62,094 $ 57,453

SHARE REPURCHASE PROGRAM (Table

SHARE REPURCHASE PROGRAM (Tables)	3 Months Ended
	Jan. 27, 2019
SHARE REPURCHASE PROGRAM [Abstract]
Volume of Shares Repurchased are Subject to Market Conditions	In October 2018, the Company’s Board of Directors authorized the repurchase of up to $25 million of its common stock, to be executed in open-market transactions or in accordance with a repurchase plan under rule 10b5-1 of the Securities Act of 1933 (as amended). The share repurchase program commenced on October 22, 2018, and expired on February 1, 2019. The number is Three Months Ended January 27, 2019 From Inception Date of October 22, 2018 Number of shares repurchased 1,137 1,467 Cost of shares repurchased $ 10,694 $ 13,807 Average price paid per share $ 9.40 $ 9.41

BASIS OF FINANCIAL STATEMENT _2

BASIS OF FINANCIAL STATEMENT PRESENTATION (Details)	3 Months Ended
	Jan. 27, 2019Facility
Manufacturing Facilities [Abstract]
Number of manufacturing facilities	9
Europe [Member]
Manufacturing Facilities [Abstract]
Number of manufacturing facilities	2
Taiwan [Member]
Manufacturing Facilities [Abstract]
Number of manufacturing facilities	3
Korea [Member]
Manufacturing Facilities [Abstract]
Number of manufacturing facilities	1
United States [Member]
Manufacturing Facilities [Abstract]
Number of manufacturing facilities	3
China [Member]
Manufacturing Facilities [Abstract]
Number of manufacturing facilities	2

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jan. 27, 2019	Oct. 31, 2018
INVENTORIES [Abstract]
Finished goods	$ 82	$ 668
Work in process	870	3,402
Raw materials	26,922	25,110
Inventory	$ 27,874	$ 29,180

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018	Oct. 31, 2018
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 1,970,975		$ 1,862,714
Accumulated depreciation and amortization	(1,314,102)		(1,290,933)
Property, plant and equipment, net	656,873		571,781
Depreciation and amortization expense	17,600	$ 21,100
Equipment acquired in exchange for product		$ 6,700
Land [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	11,246		11,139
Buildings and Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	125,180		124,771
Machinery and Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	1,571,858		1,566,163
Leasehold Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	19,632		19,577
Furniture, Fixtures and Office Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	12,668		12,415
Construction in Progress [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 230,391		$ 128,649

PDMCX JOINT VENTURE (Details)

PDMCX JOINT VENTURE (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018	Oct. 31, 2018
Variable Interest Entity [Abstract]
Operating (loss)	$ 0	$ 0
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)	$ (1,300)	$ (500)
Consolidation liabilities, recourse	0
Maximum exposure to loss	$ 44,900
Methodology use for determining whether enterprise is primary beneficiary	As required by the guidance in Topic 810 - “Consolidation” of the Accounting Standards Codification, 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 is 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 are the primary beneficiary during the current and prior year reporting periods; thus, as required, the PDMCX financial results have been consolidated with Photronics, Inc. Our conclusion was based on the facts 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), had the obligation to absorb losses, and the right to receive benefits that could potentially be significant to PDMCX. Our conclusions that we had the power to direct the activities that most significantly affected the economic performance of PDMCX during the current and prior year reporting periods 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 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 and prior year periods, we had the obligation to absorb losses and the right to receive benefits that could potentially be significant to PDMCX.
Photronics Singapore Pte, Ltd [Member]
Variable Interest Entity [Abstract]
Ownership percentage	50.01%
DNP [Member]
Variable Interest Entity [Abstract]
Ownership percentage	49.99%
Minimum [Member]
Variable Interest Entity [Abstract]
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	$ 56,957		$ 9,625
Non-current assets	91,963		43,415
Total assets	148,920		53,040
Current liabilities	34,544		21,205
Non-current liabilities	24,501		20
Total liabilities	59,045		21,225
Net assets	89,875		31,815
Photronics Interest [Member]
Carrying amounts of assets and liabilities along with exposure to loss related to assets and liabilities [Abstract]
Current assets	28,479		4,813
Non-current assets	45,982		21,708
Total assets	74,461		26,521
Current liabilities	17,272		10,603
Non-current liabilities	12,251		10
Total liabilities	29,523		10,613
Net assets	44,938		$ 15,908
Primary Beneficiary [Member]
Variable Interest Entity [Abstract]
Financial or other support, amount	48,000
Future support to be provided	32,000
Not Primary Beneficiary [Member]
Variable Interest Entity [Abstract]
Financial or other support, amount	48,000
Future support to be provided	$ 32,000

DEBT (Details)

DEBT (Details) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended
	Feb. 28, 2019USD ($)	Apr. 30, 2016USD ($)shares$ / shares	Jan. 31, 2015USD ($)shares$ / shares	Jan. 27, 2019USD ($)	Oct. 31, 2018USD ($)	Mar. 31, 2011USD ($)
Long-term debt [Abstract]
Debt				$ 86,131	$ 57,453
Current portion				(61,647)	(57,453)
Long-term debt noncurrent				24,484	0
Short Term Debt Due in February 2019 [Member]
Long-term debt [Abstract]
Debt				$ 3,720	0
Interest rate percentage				4.90%
Maturity date of debt				Feb. 28, 2019
Term of loan				90 days
3.25% Convertible Senior Notes due on April 2019 [Member]
Long-term debt [Abstract]
Debt				$ 57,482	57,453
Face amount of debt				$ 57,500
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
Conversion price per share (in dollars per share) | $ / shares			$ 10.37
Project Loan Due in November 2025 [Member]
Long-term debt [Abstract]
Debt				$ 14,824	0
Interest rate percentage				4.90%
Maturity date of debt				Dec. 31, 2025
Date of first required payment				Jun. 30, 2020
Maximum borrowing capacity				$ 50,000
Project Loan Due in November 2025 [Member] | Subsequent Event [Member]
Long-term debt [Abstract]
Date of first required payment	Jun. 30, 2023
Proceeds from credit facility	$ 11,400
Working Capital Loan due in January 2022 [Member]
Long-term debt [Abstract]
Debt				$ 10,105	$ 0
Interest rate percentage				5.00%
Basis spread on variable rate				0.6775%
Maturity date of debt				Jan. 31, 2022
Date of first required payment				May 31, 2019
Maximum borrowing capacity				$ 25,000
Amount outstanding under credit facility				$ 13,800
Amended and Restated Credit Agreement [Member]
Long-term debt [Abstract]
Maturity date of debt				Sep. 30, 2023
Current borrowing capacity				$ 50,000
Maximum borrowing capacity				100,000
Amount outstanding under credit facility				0
Available borrowing capacity				$ 50,000
Effective interest rate				2.50%
3.25% Convertible Senior Notes due in April 2016 [Member]
Long-term debt [Abstract]
Face amount of debt						$ 57,500
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
Conversion price per share (in dollars per share) | $ / shares		$ 10.37

REVENUE, Impact of Adoption on

REVENUE, Impact of Adoption on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jan. 27, 2019	Oct. 31, 2018
Assets [Abstract]
Accounts receivable	$ 131,066	$ 120,515
Inventory	27,874	29,180
Other current assets	57,043	16,858
Deferred income taxes	15,405	18,109
Liabilities [Abstract]
Accrued liabilities	43,005	44,474
Deferred income taxes	908	643
Equity [Abstract]
Retained earnings	236,665	231,445
Noncontrolling interests	152,082	$ 144,898
Adjustments [Member]
Assets [Abstract]
Accounts receivable	600
Inventory	(3,700)
Equity [Abstract]
Retained earnings	1,100
Noncontrolling interests	100
Adjustments [Member] | ASU 2014-09 [Member]
Assets [Abstract]
Accounts receivable	(319)
Inventory	4,678
Other current assets	(6,846)
Deferred income taxes	(74)
Liabilities [Abstract]
Accrued liabilities	246
Deferred income taxes	(318)
Equity [Abstract]
Retained earnings	(1,788)
Noncontrolling interests	(553)
Balance without Adoption of Topic 606 [Member] | ASU 2014-09 [Member]
Assets [Abstract]
Accounts receivable	130,747
Inventory	32,552
Other current assets	50,197
Deferred income taxes	15,331
Liabilities [Abstract]
Accrued liabilities	43,251
Deferred income taxes	590
Equity [Abstract]
Retained earnings	234,877
Noncontrolling interests	$ 151,529

REVENUE, Impact of Adoption o_2

REVENUE, Impact of Adoption on Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Income Statement [Abstract]
Revenue	$ 124,712	$ 123,446
Cost of goods sold	98,610	95,784
Gross margin	26,102	27,662
Provision for taxes	1,387	(1,778)
Net income	7,768	9,481
Noncontrolling interests	2,501	3,583
Income attributable to Photronics, Inc. shareholders	5,267	$ 5,898
ASU 2014-09 [Member]
Income Statement [Abstract]
Net income	(1,136)
Adjustments [Member] | ASU 2014-09 [Member]
Income Statement [Abstract]
Revenue	(2,245)
Cost of goods sold	(901)
Gross margin	(1,344)
Provision for taxes	(208)
Net income	(1,136)
Noncontrolling interests	(431)
Income attributable to Photronics, Inc. shareholders	(705)
Balance without Adoption of Topic 606 [Member] | ASU 2014-09 [Member]
Income Statement [Abstract]
Revenue	122,467
Cost of goods sold	97,709
Gross margin	24,758
Provision for taxes	1,179
Net income	6,632
Noncontrolling interests	2,070
Income attributable to Photronics, Inc. shareholders	$ 4,562

REVENUE, Impact of Adoption o_3

REVENUE, Impact of Adoption on Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Statement of Cash Flows [Abstract]
Net income	$ 7,768	$ 9,481
Changes in operating accounts:
Accounts receivable	(9,333)	4,692
Inventories	(2,313)	(2,385)
Other current assets	(22,082)	432
Accounts payable, accrued liabilities, and other	(12,107)	$ (3,721)
ASU 2014-09 [Member]
Statement of Cash Flows [Abstract]
Net income	(1,136)
Changes in operating accounts:
Accounts receivable	(287)
Inventories	(933)
Other current assets	2,223
Accounts payable, accrued liabilities, and other	133
Adjustments [Member] | ASU 2014-09 [Member]
Statement of Cash Flows [Abstract]
Net income	(1,136)
Balance without Adoption of Topic 606 [Member] | ASU 2014-09 [Member]
Statement of Cash Flows [Abstract]
Net income	6,632
Changes in operating accounts:
Accounts receivable	(9,620)
Inventories	(3,246)
Other current assets	(19,859)
Accounts payable, accrued liabilities, and other	$ (11,974)

REVENUE, Contract Assets, Liabi

REVENUE, Contract Assets, Liabilities and Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Nov. 02, 2018
Contract with Customer, Asset and Liability [Abstract]
Impairment loss on contract assets	$ 0
Change in Contract with Customer, Liability [Abstract]
Revenue from settlement of contract liabilities	700
Other Current Assets [Member]
Contract with Customer, Asset and Liability [Abstract]
Contract assets	6,800
Other Current Liabilities [Member]
Contract with Customer, Asset and Liability [Abstract]
Contract liabilities	$ 9,500
Minimum [Member]
Change in Contract with Customer, Liability [Abstract]
Product invoice term	30 days
Product Warranty [Abstract]
Product warranty period	30 days
Maximum [Member]
Change in Contract with Customer, Liability [Abstract]
Product invoice term	90 days
Product Warranty [Abstract]
Product warranty period	90 days
IC [Member] | Minimum [Member]
Remaining Performance Obligations [Abstract]
Customer order, expected satisfaction period	7 days
IC [Member] | Maximum [Member]
Remaining Performance Obligations [Abstract]
Customer order, expected satisfaction period	14 days
FPD [Member] | Minimum [Member]
Remaining Performance Obligations [Abstract]
Customer order, expected satisfaction period	14 days
FPD [Member] | Maximum [Member]
Remaining Performance Obligations [Abstract]
Customer order, expected satisfaction period	21 days
ASU 2014-09 [Member]
Contract with Customer, Asset and Liability [Abstract]
Contract assets		$ 4,600
Contract liabilities		$ 7,800

REVENUE, Disaggregation of Reve

REVENUE, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Disaggregation of Revenue [Abstract]
Revenue	$ 124,712	$ 123,446
Over Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	120,845
At a Point in Time [Member]
Disaggregation of Revenue [Abstract]
Revenue	3,867
Taiwan [Member]
Disaggregation of Revenue [Abstract]
Revenue	57,740
Korea [Member]
Disaggregation of Revenue [Abstract]
Revenue	35,237
United States [Member]
Disaggregation of Revenue [Abstract]
Revenue	22,472
Europe [Member]
Disaggregation of Revenue [Abstract]
Revenue	8,354
Other [Member]
Disaggregation of Revenue [Abstract]
Revenue	909
IC [Member]
Disaggregation of Revenue [Abstract]
Revenue	94,880
High-end [Member]
Disaggregation of Revenue [Abstract]
Revenue	34,566
Mainstream [Member]
Disaggregation of Revenue [Abstract]
Revenue	60,314
FPD [Member]
Disaggregation of Revenue [Abstract]
Revenue	29,832
High-end [Member]
Disaggregation of Revenue [Abstract]
Revenue	21,466
Mainstream [Member]
Disaggregation of Revenue [Abstract]
Revenue	$ 8,366

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Share-based Compensation [Abstract]
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
Share-based compensation expense incurred	$ 1,100	$ 900
Cash received from option exercises	500	700
Share-based compensation cost capitalized	0	0
Income tax benefits realized from stock option exercises	$ 0	$ 0
Stock Options [Member]
Share-based Compensation [Abstract]
Contractual term	10 years
Stock options, additional disclosures [Abstract]
Share options granted (in shares)	132,000	252,000
Weighted-average grant date fair value of options granted (in dollars per share)	$ 3.31	$ 2.74
Unrecognized compensation cost related to unvested option awards	$ 1,600
Period for recognition of compensation cost not yet recognized	2 years 4 months 24 days
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract]
Volatility	33.10%	31.60%
Risk free rate of return		2.20%
Dividend yield	0.00%	0.00%
Expected term	5 years 1 month 6 days	5 years
Outstanding and exercisable option awards [Roll Forward]
Outstanding at end of period (in shares)	2,452,168
Exercisable at end of period (in shares)	1,831,351
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, Outstanding at end of period (in dollars per share)	$ 8.84
Weighted average exercise price, Exercisable at end of period (in dollars per share)	$ 8.42
Weighted-Average Remaining Contractual Life [Abstract]
Weighted average remaining contractual life, Outstanding at end of period	5 years 10 months 24 days
Weighted average remaining contractual life, Exercisable at end of period	5 years 1 month 6 days
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, Outstanding at end of period	$ 4,886
Aggregate intrinsic value, Exercisable at end of period	$ 4,373
Stock Options [Member] | Minimum [Member]
Share-based Compensation [Abstract]
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	2.50%
Stock Options [Member] | Maximum [Member]
Share-based Compensation [Abstract]
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	2.90%
Restricted Stock [Member]
Stock options, additional disclosures [Abstract]
Period for recognition of compensation cost not yet recognized	3 years 1 month 6 days
Restricted Stock [Abstract]
Restricted stock awards granted (in shares)	435,000	280,000
Weighted average grant date fair value of restricted stock awards (in dollars per share)	$ 9.80	$ 8.63
Compensation cost not yet recognized related to unvested restricted stock awards	$ 6,300
Number of shares of restricted stock outstanding (in shares)	724,113
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation [Abstract]
Award vesting period	1 year
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation [Abstract]
Award vesting period	4 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ / shares in Units, $ in Thousands	2 Months Ended	3 Months Ended		12 Months Ended	15 Months Ended
	Dec. 31, 2017	Jan. 27, 2019	Jan. 28, 2018	Oct. 29, 2017	Jan. 27, 2019	Oct. 31, 2018
Effective Income and Statutory Tax Rate [Abstract]
Effective tax rate		15.20%	(23.10%)
U.S. statutory rate	35.00%	21.00%	23.40%		21.00%
Unrecognized Tax Benefits [Abstract]
Unrecognized tax benefits		$ 900			$ 900	$ 1,900
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract]
Accrued interest and penalties related to unrecognized tax benefits		$ 100			$ 100	100
Taiwan Agency of the Ministry of Finance [Member]
Foreign Tax [Abstract]
Foreign statutory rate		20.00%		17.00%
Foreign income tax expense (benefit)		$ (200)
Income Tax Holiday [Abstract]
Term of tax year holidays		5 years
Income tax holiday termination date		December 31, 2019
Dollar effect of income tax holiday		$ 800	$ 100
Per share effect of income tax holiday (in dollars per share)		$ 0.015
Federal Alternate Minimum [Member]
Tax Credit Carryforward [Abstract]
Change in valuation allowance			$ 3,900
ASU 2016-16 [Member]
Adoption of New Accounting Standard [Abstract]
Transition adjustment on intra-entity transfer of an asset other than inventory						$ 1,100

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Calculation of basic and diluted earnings per share [Abstract]
Net income attributable to Photronics, Inc. shareholders	$ 5,267	$ 5,898
Effect of dilutive securities [Abstract]
Effect of dilutive securities	0	0
Earnings used for diluted earnings per share	$ 5,267	$ 5,898
Weighted-average common shares computations [Abstract]
Weighted-average common shares used for basic earnings per share (in shares)	66,583	68,755
Effect of dilutive securities [Abstract]
Share-based payment awards (in shares)	464	617
Potentially dilutive common shares (in shares)	464	617
Weighted-average common shares used for diluted earnings per share (in shares)	67,047	69,372
Basic earnings per share (in dollars per share)	$ 0.08	$ 0.09
Diluted earnings per share (in dollars per share)	$ 0.08	$ 0.09
Antidilutive Securities [Abstract]
Total potentially dilutive shares excluded (in shares)	6,605	7,125
Share-Based Payment Awards [Member]
Antidilutive Securities [Abstract]
Total potentially dilutive shares excluded (in shares)	1,063	1,583
Convertible Notes [Member]
Antidilutive Securities [Abstract]
Total potentially dilutive shares excluded (in shares)	5,542	5,542

CHANGES IN ACCUMULATED OTHER _3

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]
Other comprehensive income, tax	$ 0	$ 0
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	759,671
Net other comprehensive income	6,591	30,087
Ending Balance	761,088
Accumulated Other Comprehensive Income [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	(4,966)	6,891
Net other comprehensive income	5,309	25,237
Ending Balance	343	32,128
Foreign Currency Translation Adjustments [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	(4,328)	7,627
Ending Balance	971	32,848
Amortization of Cash Flows Hedge [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance		(48)
Ending Balance		(16)
Other [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	(638)	(688)
Ending Balance	(628)	(704)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) before reclassifications	6,591	30,055
Amounts reclassified from other comprehensive income		32
Net other comprehensive income		30,087
Foreign Currency Translation Adjustments [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) before reclassifications	6,572	30,087
Amounts reclassified from other comprehensive income		0
Net other comprehensive income		30,087
Amortization of Cash Flows Hedge [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) before reclassifications		0
Amounts reclassified from other comprehensive income		32
Net other comprehensive income		32
Other [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) before reclassifications	19	(32)
Amounts reclassified from other comprehensive income		0
Net other comprehensive income		(32)
AOCI Attributable to Noncontrolling Interest [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Less: other comprehensive income (loss) attributable to noncontrolling interests	1,282	4,850
Foreign Currency Translation Adjustments [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Less: other comprehensive income (loss) attributable to noncontrolling interests	1,273	4,866
Amortization of Cash Flows Hedge [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Less: other comprehensive income (loss) attributable to noncontrolling interests		0
Other [Member]
Changes in Accumulated Other Comprehensive Income [Roll Forward]
Less: other comprehensive income (loss) attributable to noncontrolling interests	$ 9	$ (16)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jan. 27, 2019	Oct. 31, 2018
Fair Value, Assets and Liability [Abstract]
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	$ 63,405	$ 62,094
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	$ 57,482	$ 57,453

SHARE REPURCHASE PROGRAM (Detai

SHARE REPURCHASE PROGRAM (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Oct. 22, 2018	Jan. 27, 2019	Oct. 31, 2018
Equity, Class of Treasury Stock [Line Items]
Treasury stock repurchased - shares (in shares)		3,695	2,558
Treasury stock repurchased - amount		$ 33,807	$ 23,111
October 2018 Announced Program [Member]
Equity, Class of Treasury Stock [Line Items]
Stock repurchased authorized amount			$ 25,000
Stock repurchase program - commencement date			Oct. 22, 2018
Stock repurchase program - expiration date			Feb. 1, 2019
Treasury stock repurchased - shares (in shares)	1,467	1,137
Treasury stock repurchased - amount	$ 13,807	$ 10,694
Treasury stock repurchased - average price per share (in dollars per share)	$ 9.41	$ 9.40

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jan. 27, 2019USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Outstanding commitments for capital expenditure	$ 38,000

RECENT ACCOUNTING PRONOUNCEME_3

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Jan. 27, 2019	Oct. 31, 2018
Contract with Customer, Asset and Liability [Abstract]
Accounts receivable	$ 131,066	$ 120,515
Inventories	27,874	29,180
Retained earnings	236,665	231,445
Noncontrolling interests	152,082	$ 144,898
Adjustments [Member]
Contract with Customer, Asset and Liability [Abstract]
Accounts receivable	600
Contract asset	4,600
Inventories	(3,700)
Accrual for income taxes	(300)
Retained earnings	1,100
Noncontrolling interests	100
Adjustments [Member] | ASU 2014-09 [Member]
Contract with Customer, Asset and Liability [Abstract]
Accounts receivable	(319)
Inventories	4,678
Retained earnings	(1,788)
Noncontrolling interests	$ (553)