Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Feb. 02, 2020 | Mar. 09, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | PHOTRONICS INC | |
Entity Central Index Key | 0000810136 | |
Current Fiscal Year End Date | --10-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 65,119,738 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Feb. 2, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-15451 | |
Entity Tax Identification Number | 06-0854886 | |
Entity Incorporation, State or Country Code | CT | |
Entity Address, Address Line One | 15 Secor Road | |
Entity Address, City or Town | Brookfield | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06804 | |
City Area Code | 203 | |
Local Phone Number | 775-9000 | |
Title of 12(b) Security | COMMON | |
Trading Symbol | PLAB | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Feb. 02, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 218,309 | $ 206,530 |
Accounts receivable, net of allowance of $1,295 in 2020 and $1,334 in 2019 | 141,720 | 134,454 |
Inventories | 49,673 | 48,155 |
Other current assets | 31,202 | 38,388 |
Total current assets | 440,904 | 427,527 |
Property, plant and equipment, net | 619,935 | 632,441 |
Intangible assets, net | 6,847 | 7,870 |
Deferred income taxes | 17,594 | 20,779 |
Other assets | 40,180 | 30,048 |
Total assets | 1,125,460 | 1,118,665 |
Current liabilities: | ||
Short-term debt | 9,975 | 8,731 |
Current portion of long-term debt | 7,959 | 2,142 |
Accounts payable | 84,707 | 91,379 |
Accrued liabilities | 55,013 | 49,702 |
Total current liabilities | 157,654 | 151,954 |
Long-term debt | 36,449 | 41,887 |
Other liabilities | 18,556 | 13,732 |
Total liabilities | 212,659 | 207,573 |
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, 66,144 shares issued and 65,228 outstanding at February 2, 2020 and 65,595 shares issued and outstanding at October 31, 2019 | 661 | 656 |
Additional paid-in capital | 528,535 | 524,319 |
Retained earnings | 264,222 | 253,922 |
Treasury stock, 916 shares at February 2, 2020 | (11,000) | 0 |
Accumulated other comprehensive loss | (11,742) | (9,005) |
Total Photronics, Inc. shareholders' equity | 770,676 | 769,892 |
Noncontrolling interests | 142,125 | 141,200 |
Total equity | 912,801 | 911,092 |
Total liabilities and equity | $ 1,125,460 | $ 1,118,665 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Feb. 02, 2020 | Oct. 31, 2019 |
Current assets: | ||
Accounts receivable, allowance | $ 1,295 | $ 1,334 |
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) | 66,144 | 65,595 |
Common stock, shares outstanding (in shares) | 65,228 | 65,595 |
Treasury stock, shares (in shares) | 916 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
Condensed Consolidated Statements of Income (unaudited) [Abstract] | ||
Revenue | $ 159,736 | $ 124,712 |
Cost of goods sold | 125,134 | 98,610 |
Gross profit | 34,602 | 26,102 |
Operating expenses: | ||
Selling, general and administrative | 14,219 | 13,792 |
Research and development | 4,080 | 4,263 |
Total operating expenses | 18,299 | 18,055 |
Operating income | 16,303 | 8,047 |
Other income (expense): | ||
Interest income and other income (expense), net | 5,495 | 1,639 |
Interest expense | (1,798) | (531) |
Income before income tax provision | 20,000 | 9,155 |
Income tax provision | 9,072 | 1,387 |
Net income | 10,928 | 7,768 |
Net income attributable to noncontrolling interests | 628 | 2,501 |
Net income attributable to Photronics, Inc. shareholders | $ 10,300 | $ 5,267 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.16 | $ 0.08 |
Diluted (in dollars per share) | $ 0.16 | $ 0.08 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 65,554 | 66,583 |
Diluted (in shares) | 66,449 | 67,047 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||
Net income | $ 10,928 | $ 7,768 |
Other comprehensive (loss) income, net of tax of $0: | ||
Foreign currency translation adjustments | (1,564) | 6,572 |
Other | 17 | 19 |
Net other comprehensive (loss) income | (1,547) | 6,591 |
Comprehensive income | 9,381 | 14,359 |
Less: comprehensive income attributable to noncontrolling interests | 1,818 | 3,783 |
Comprehensive income attributable to Photronics, Inc. shareholders | $ 7,563 | $ 10,576 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||
Other comprehensive (loss) income, 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 |
Cumulative effect of adoption of new accounting principle | ASU 2014-09 [Member] | $ 0 | $ 0 | $ 1,083 | $ 0 | $ 0 | $ 121 | $ 1,204 |
Cumulative effect of adoption of new accounting principle | 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 |
Balance (in shares) at Oct. 31, 2018 | 69,700 | ||||||
Net income | $ 0 | 0 | 5,267 | 0 | 0 | 2,501 | 7,768 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | 5,309 | 1,282 | 6,591 |
Sale of common stock through employee stock option and purchase plans | $ 1 | 521 | 0 | 0 | 0 | 0 | 522 |
Sale 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 interest | 0 | 0 | 0 | 0 | 0 | (26,102) | (26,102) |
Repurchase of common stock by subsidiary | 0 | 0 | 0 | 0 | 0 | (9) | (9) |
Purchases 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 | ||||||
Balance at Oct. 31, 2019 | $ 656 | 524,319 | 253,922 | 0 | (9,005) | 141,200 | 911,092 |
Balance (in shares) at Oct. 31, 2019 | 65,595 | ||||||
Net income | $ 0 | 0 | 10,300 | 0 | 0 | 628 | 10,928 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | (2,737) | 1,190 | (1,547) |
Sale of common stock through employee stock option and purchase plans | $ 3 | 2,854 | 0 | 0 | 0 | 0 | 2,857 |
Sale of common stock through employee stock option and purchase plans (in shares) | 358 | ||||||
Restricted stock awards vesting and expense | $ 2 | 756 | 0 | 0 | 0 | 0 | 758 |
Restricted stock awards vesting and expense (in shares) | 191 | ||||||
Share-based compensation expense | $ 0 | 351 | 0 | 0 | 0 | 0 | 351 |
Repurchase of common stock by subsidiary | 0 | 255 | 0 | 0 | 0 | (893) | (638) |
Purchases of treasury stock | 0 | 0 | 0 | (11,000) | 0 | 0 | (11,000) |
Balance at Feb. 02, 2020 | $ 661 | $ 528,535 | $ 264,222 | $ (11,000) | $ (11,742) | $ 142,125 | $ 912,801 |
Balance (in shares) at Feb. 02, 2020 | 66,144 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 10,928 | $ 7,768 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,626 | 18,781 |
Share-based compensation | 1,356 | 1,062 |
Changes in assets, liabilities, and other: | ||
Accounts receivable | (6,699) | (9,333) |
Inventories | (1,435) | (2,313) |
Other current assets | 4,724 | (22,082) |
Accounts payable, accrued liabilities and other | (2,715) | (13,169) |
Net cash provided by (used in) operating activities | 30,785 | (19,286) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (13,807) | (106,925) |
Government incentives | 2,417 | 5,029 |
Other | (139) | 19 |
Net cash used in investing activities | (11,529) | (101,877) |
Cash flows from financing activities: | ||
Proceeds from debt | 1,140 | 28,180 |
Purchases of treasury stock | (11,000) | (10,696) |
Repayments of debt | (389) | 0 |
Proceeds from share-based arrangements | 2,886 | 650 |
Contribution from noncontrolling interest | 0 | 29,394 |
Dividends paid to noncontrolling interests | 0 | (26,102) |
Other | (248) | (45) |
Net cash (used in) provided by financing activities | (7,611) | 21,381 |
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | 149 | 2,961 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 11,794 | (96,821) |
Cash, cash equivalents, and restricted cash at beginning of period | 209,291 | 331,989 |
Cash, cash equivalents, and restricted cash at end of period | 221,085 | 235,168 |
Supplemental disclosure of non-cash information: | ||
Accrual for property, plant and equipment purchased during the period | 1,511 | 30,697 |
Accrual for property, plant and equipment purchased with funds receivable from government incentives | $ 0 | $ 11,799 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 3 Months Ended |
Feb. 02, 2020 | |
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 FPD substrates during the fabrication of integrated circuits ("ICs" or “semiconductors”) and a variety of FPDs and, to a lesser extent, other types of electrical and optical components. We currently have eleven manufacturing facilities, which are located in Taiwan (3), Korea, the United States (3), Europe (2), and two recently constructed facilities in China. Our FPD facility in Hefei, China, commenced production in the second quarter of fiscal 2019 and our IC facility in Xiamen, China, commenced production in the third quarter of fiscal 2019. The accompanying unaudited condensed consolidated financial statements (“the financial statements”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, adjustments, all of which are of a normal recurring nature, considered necessary for a fair presentation have been included. The financial statements include the accounts of Photronics, Inc., its wholly owned subsidiaries, and the majority-owned subsidiaries which it controls. All intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect amounts reported in them. Estimates are based on historical experience and on various assumptions that are believed to be reasonable under the circumstances. Our estimates are based on the facts and circumstances available at the time they are made. Actual results we report may differ from such estimates. We review these estimates periodically and reflect any effects of revisions in the period in which they are determined. Our business is typically impacted during the first, and sometimes the second, quarters 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, 2020. 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, 2019. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Feb. 02, 2020 | |
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. February 2, 2020 October 31, 2019 Raw materials $ 46,090 $ 46,027 Work in process 2,981 2,122 Finished goods 602 6 $ 49,673 $ 48,155 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Feb. 02, 2020 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: February 2, 2020 October 31, 2019 Land $ 12,055 $ 12,085 Buildings and improvements 173,497 172,340 Machinery and equipment 1,759,785 1,748,483 Leasehold improvements 20,021 19,921 Furniture, fixtures and office equipment 14,304 14,404 Construction in progress 18,521 28,135 1,998,183 1,995,368 Accumulated depreciation and amortization (1,378,248 ) (1,362,927 ) $ 619,935 $ 632,441 D |
PDMCX JOINT VENTURE
PDMCX JOINT VENTURE | 3 Months Ended |
Feb. 02, 2020 | |
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”, “Photronics”, or “our”), and Dai Nippon Printing Co., Ltd., through its wholly owned subsidiary “DNP Asia Pacific PTE, Ltd.” (hereinafter, within this Note, “DNP”) entered into a joint venture under which DNP obtained a 49.99% interest in our IC business in Xiamen, China. The joint venture, known as “Xiamen American Japan Photronics Mask Co., Ltd.” (hereinafter, “PDMCX”), was established to develop and manufacture photomasks for leading edge and advanced generation semiconductors. We entered into this joint venture to enable us to compete more effectively for the merchant photomask business in China, and to benefit from the additional resources and investment that DNP provides to enable us to offer advanced-process technology to our customers. No gain or loss was recorded upon the formation of this joint venture. The total investment per the PDMCX operating agreement (“the Agreement”) is $ million. As of February 2, 2020, Photronics and DNP had each contributed cash of approximately $ million, and of approximately $ million. The remaining $ million investment will be funded, over the next several quarters, with additional local financing of $ million and approximately $ million of cash contributions from Photronics and DNP. 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-year term of the Agreement and cannot be resolved between the two parties. As of the date of issuance of these financial statements, DNP had not indicated its intention to exercise this right. In addition, both Photronics and DNP have the option to purchase, or put, their interest from, or to, the other party, should their ownership interest fall below twenty percent six three We recorded net losses from the operations of PDMCX of $3.7 million, and $1.3 million during the three-month periods ended February 2, 2020 and January 27, 2019, respectively. General creditors of PDMCX do not have recourse to the assets of Photronics, Inc., and our maximum exposure to loss from PDMCX at February 2, 2020, was $36.6 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 a variable interest entity (“VIE”). Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial support, we determined that it was a VIE. Having made this determination, we then assessed whether we were the primary beneficiary of the VIE, and concluded that we were the primary beneficiary during the current 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) and 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's management), incur indebtedness, enter into agreements and commitments, and acquire and dispose of PDMCX’s assets. In addition, as a result of the 50.01% variable interest we held during the current and prior-year periods, we had the obligation to absorb losses, and the right to receive benefits, that could potentially be significant to PDMCX. The carrying amounts of PDMCX assets and liabilities included in our condensed consolidated balance sheets are presented in the following table, together with our exposure to loss related to these assets and liabilities. February 2, 2020 October 31, 2019 Classification Carrying Amount Photronics Interest Carrying Amount Photronics Interest Current assets $ 23,638 $ 11,821 $ 24,142 $ 12,074 Non-current assets 110,296 55,159 114,015 57,019 Total assets 133,934 66,980 138,157 69,093 Current liabilities 24,044 12,024 16,889 8,446 Non-current liabilities 36,716 18,362 42,094 21,051 Total liabilities 60,760 30,386 58,983 29,497 Net assets $ 73,174 $ 36,594 $ 79,174 $ 39,596 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Feb. 02, 2020 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | NOTE 5 – LONG-TERM DEBT Long-term debt consists of the following: February 2, 2020 October 31, 2019 Project Loans $ 35,094 $ 34,490 Working Capital Loans (value added tax component) 9,314 9,539 44,408 44,029 Current portion of long-term debt (7,959 ) (2,142 ) Long-term debt $ 36,449 $ 41,887 At February 2, 2020, maturities of our long-term debt over the next five fiscal years and thereafter were as follows: 2020 (remainder of) $ 1,788 2021 8,449 2022 12,648 2023 3,501 2024 6,704 Thereafter 11,318 $ 44,408 As of February 2, 2020 and October 31, 2019, the weighted-average interest rates of our short-term debt were and , respectively. Project Loans In November 2018, PDMCX was approved for credit of $ million, subject to certain limitations related to PDMCX registered capital at the time of the initial approval, pursuant to which PDMCX has and will enter into separate loan agreements (“the Project Loans”) for intermittent borrowings. The Project Loans, which are denominated in Chinese renminbi (RMB), are being used to finance certain capital expenditures in China. PDMCX granted liens on its land, building, and certain equipment, as collateral for the Project Loans. As of February 2, 2020, PDMCX had borrowed million RMB ($ million) against this approval. Payments on these borrowings are due semi-annually through December 2025 ; the initial payment is scheduled for June 2020 . The table below presents, in U.S. dollars, the timing of future payments against the borrowings. Fiscal Year 2020 2021 2022 2023 2024 2025 2026 Principal payments $ 1,298 $ 6,488 $ 5,785 $ 3,501 $ 6,704 $ 6,416 $ 4,902 The interest rates on the Project Loans are based on the benchmark lending rate of the People’s Bank of China (4.9% at February 2, 2020). 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. Working Capital Loans In November 2018, PDMCX received approval for unsecured credit of $ million, pursuant to which PDMCX may enter into separate loan agreements. Under this credit agreement (the “Working Capital Loans”), PDMCX can borrow up to million RMB to pay value-added taxes (“VAT”), and up to million RMB to fund operations; combined total borrowings are limited to $ million. As of February 2, 2020, PDMCX had million RMB ($ million) outstanding against the approval to pay VAT. Payments on these borrowings are due semiannually, at an increasing rate, through January 2022 ; PDMCX made installment payments totaling $ million during the three-month period ended February 2, 2020. The table below presents, in U.S. dollars, the timing of future payments against these borrowings. Fiscal Year 2020 2021 2022 Principal payments $ 490 $ 1,961 $ 6,863 As of February 2, 2020, PDMCX had borrowed, in several transactions to fund operations, 44.8 million RMB ($6.5 million) against the approval, all of which was outstanding as of that date repayments are due one year from the borrowing dates. The interest rates on borrowings to fund operations are approximately 4.4 to 4.6% and interest rates on borrowings to pay VAT are approximately 4.8 to 4.9%; both rates are based on the RMB Loan Prime Rate of the National Interbank Funding Center, plus spreads that range from 25.75 to 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. Equipment Loan Effective July 2019, the Company entered into a Master Lease Agreement (“MLA”) which enables us to request advance payments or other funds to finance equipment to be leased or purchased in the U.S. In connection with this MLA, we were approved for financing of $ million for the purchase of a high-end lithography tool. In the fourth quarter of fiscal 2019, the financing entity, upon our request, made an advance payment of $ million to the equipment vendor on our behalf. Interest on this borrowing is payable monthly at LIBOR plus ( at February 2, 2020), and will continue to accrue until the borrowing is repaid or, as allowed under the MLA, we enter into a lease for the equipment. We intend to enter into a lease agreement for the related equipment in fiscal year 2020; as such, we have classified this borrowing as current debt. All borrowings under the MLA are secured by the equipment to be leased or purchased. Credit Agreement In September 2018, we entered into a five-year amended and restated credit agreement (the “Credit Agreement”), which has a $50 million borrowing limit, with an expansion capacity to $100 million. The Credit Agreement is secured by substantially all of our assets located in the United States and common stock we own in certain foreign subsidiaries. The Credit Agreement includes minimum interest coverage ratio, total leverage ratio, and minimum unrestricted cash balance covenants (all of which we were in compliance with at February 2, 2020), and limits the amount of cash dividends, distributions, and redemptions we can pay on our common stock to an aggregate annual amount of $50 million. We had no outstanding borrowings against the Credit Agreement at February 2, 2020, and $50 million was available for borrowing. The interest rate on the Credit Agreement (2.65% at February 2, 2020) is based on our total leverage ratio at LIBOR plus a spread, as defined in the Credit Agreement. |
REVENUE
REVENUE | 3 Months Ended |
Feb. 02, 2020 | |
REVENUE [Abstract] | |
REVENUE | NOTE 6 - REVENUE 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. 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 uncompleted revenue contracts on which we have performed; for any such contracts under which 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 to customer specifications, in accordance with their proprietary designs; 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 consist of a significant amount of our in-process production orders and fully manufactured photomasks which have not yet shipped, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the in-process orders are cancelled by customers. On an individual contract basis, we net contract assets with contract liabilities (deferred revenue) for financial reporting 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 $ million are included in “Other” current assets, and contract liabilities of $ million are included in Accrued liabilities in our February 2, 2020 condensed consolidated balance sheet. Our October 31, 2019 condensed consolidated balance sheet includes contract assets of $ million and contract liabilities of $ million; with like classification to the February 2, 2020, balances. We did t impair any contract assets during the three-month periods ended February 2, 2020 or January 27, 2019, and we recognized $ million and $ million of revenue from the settlement of contract liabilities that existed at the beginning of those respective periods. We generally record our accounts receivable at their billed amounts. All outstanding past due customer invoices are reviewed for collectibility during, and at the end of, every reporting period. 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 derecognize the related receivable. Credit losses incurred on our accounts receivable during the three-month period ended February 2, 2020, were immaterial, and we did t incur any credit losses on our accounts receivable during the three-month period ended January 27, 2019. Our invoice terms generally range from net thirty to , 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 ASC Topic 606 “Revenue from Contracts with Customers” (“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 our revenue for the three-month periods ended February 2, 2020 and January 27, 2019, disaggregated by product type, geographic origin, and timing of recognition. In the three-month period ended February 2, 2020, we changed the threshold for the definition of high-end FPD, from G8 and above and active matrix organic light-emitting diode (AMOLED) display screens, to G10.5 and above, AMOLED, and low-temperature polysilicon display screens (LTPS), to reflect the overall advancement of technology in the FPD industry. Our definition of high-end IC products remains as 28 nanometer or smaller. The revenue by product type for the three-month period ended January 27, 2019, presented below has been reclassified to conform to the current period presentation. Three Months Ended Three Months Ended February 2, 2020 January 27, 2019 Revenue by Product Type IC High-end $ 41,041 $ 34,566 Mainstream 65,937 60,314 Total IC $ 106,978 $ 94,880 FPD High-end $ 39,770 $ 15,350 Mainstream 12,988 14,482 Total FPD $ 52,758 $ 29,832 $ 159,736 $ 124,712 Revenue by Geographic Origin Taiwan $ 66,114 $ 57,740 Korea 40,736 35,237 United States 25,067 22,472 Europe 7,543 8,354 China 19,900 263 All other Asia 376 646 $ 159,736 $ 124,712 Revenue by Timing of Recognition Over time $ 137,696 $ 120,845 At a point in time 22,040 3,867 $ 159,736 $ 124,712 Contract Costs We pay commissions to third party sales agents for certain sales that they obtain for us. However, the bases of the commissions are the transaction prices of the sales, which are completed in less than one year; thus, no relationship is established with a customer that will result in future business. Therefore, we would not recognize any portion of these sales commissions as costs of obtaining a contract, nor do we currently foresee other circumstances under which we would recognize such assets. 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 two weeks two three weeks 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 one to twenty-four months . We warrant that our photomasks conform to customer specifications, and will typically repair, replace, or issue a refund for, 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. |
LEASES
LEASES | 3 Months Ended |
Feb. 02, 2020 | |
LEASES [Abstract] | |
LEASES | NOTE – LEASES We adopted ASU 2016 - 02 and all subsequent amendments, collectively codified in ASC Topic 842 “Leases” (“Topic 842 ”), on November 1, 2019. The guidance requires modified retrospective adoption, either at the beginning of the earliest period presented or at the beginning of the period of adoption. We elected to apply the guidance at the beginning of the period of adoption and recorded, as of November 1, 2019, right-of-use (ROU) leased assets of $6.5 million. In conjuction with this, we recorded lease liabilities, which had been discounted at our incremental borrowing rates, of $ 6.5 million. The guidance allows a number of elections and practical expedients, of which we elected the following: - Election not to recognize short-term leases on the balance sheet. - Practical expedient to not separate lease and non-lease components in a contract. - Practical expedient “package” for transitioning to the new guidance: - Not reassessing whether any expired or existing contracts are, or contain, leases. - Not reassessing lease classification for any existing or expired leases. - Not reassessing initial direct costs for any existing leases. Our involvement in lease arrangements has typically been as a lessee. We determine if an agreement is or contains a lease on the date of the lease agreement or commitment, if earlier. Our evaluation considers whether the arrangement includes an identified asset and whether it affords us the right to control the asset. Our having the right to control the identified asset is determined by whether we are entitled to substantially all of its economic benefits and can direct its use. We recognize leases on our consolidated balance sheet when a lessor makes an asset underlying a lease having a term in excess of months available for our use. The present value of lease payments over the term of the lease, which is determined using our incremental borrowing rate for collateralized loans at the commencement date of the lease, provides the basis for the initial measurement of ROU assets and their related lease liabilities. Variable lease payments, other than those that are dependent on an index or on a rate, are not included in the measurement of ROU assets and their related lease liabilities. Lease terms will include extension periods if the lease agreement includes an option to extend the lease that we are reasonably certain to exercise. ROU assets underlying our leases include the land and facilities of some of our operating facilities, other real property, and machinery and equipment. As of February we had ROU assets under operating leases of , included in “Other Assets”, and and of lease liabilities in Accrued liabilities and Other liabilities, respectively, and recognized operating lease and short-term lease costs of and , respectively, in the -month period then ended; variable lease costs incurred were not material. The following tables present lease payments under non-cancellable leases as of February 2, 2020. Fiscal Year 2020 2021 2022 2023 2024 Thereafter Total Lease Payments Imputed Interest* Total Lease payments $ 1,521 $ 1,767 $ 1,652 $ 770 $ 438 $ 386 $ 6,534 $ (286 ) $ 6,248 * Imputed interest represents difference between undiscounted cash flows and discounted cash flows. Presented below is other information related to our operating leases. Three Months Ended Supplemental cash flows information: February 2, 2020 Operating cash flows from operating leases $ 1,885 ROU assets obtained in exchange for lease obligations $ 282 As of February 2, 2020 Weighted-average remaining lease term 3.9 years Weighted-average discount rate 2.38 % Rent expense, as calculated under guidance in effect prior to our adoption of the new leases guidance, was $3.0 million in fiscal year 2019. At October 31, 2019, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year were as presented in the table below. The amounts are undiscounted and were calculated in accordance with guidance in effect prior to our adoption of the new leases guidance. 2020 $ 1,885 2021 1,613 2022 1,535 2023 742 2024 424 Thereafter 377 $ 6,576 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Feb. 02, 2020 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 8 - SHARE-BASED COMPENSATION In March 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 held in the treasury, or a combination thereof. The maximum number of shares of common stock approved for issuance under the Plan is 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 and in the -month periods ended February and January and we received cash from option exercises of and during those respective periods. share-based compensation cost was capitalized as part of an asset and related income tax benefits were recorded during the periods presented. Stock Options Option awards generally vest annually, on a straight-line basis,over 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 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 options granted during the -month period ended February and there were share options granted during the -month period ended January with a weighted-average grant date fair value of per share. As of February the total unrecognized compensation cost related to unvested option awards was approximately . That cost is expected to be recognized over a weighted-average amortization period of years. The weighted-average inputs and risk-free rates of return used to calculate the grant-date fair value of options issued during the -month period ended January are presented in the following table. Three Months Ended January 27, 2019 Volatility 33.1% Risk free rate of return 2.5-2.9% Dividend yield 0.0% Expected term 5.1 years Information on outstanding and exercisable option awards as of February is presented below. Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at February 2, 2020 1,795,989 $ 9.17 5.4 years $ 6,492 Exercisable at February 2, 2020 1,487,661 $ 9.07 4.8 years $ 5,518 Restricted Stock We periodically grant restricted stock awards, the restrictions on which typically lapse over a service period of one to . . The fair value of an award is the closing price of our common stock on the date of grant. There were restricted stock awards issued during the -month period ended February with a weighted-average grant-date fair value of per share, and there were restricted stock awards issued during the -month period ended January with a weighted-average grant-date fair value of per share. As of February the total compensation cost not yet recognized related to unvested restricted stock awards was approximately . That cost is expected to be recognized over a weighted-average amortization period of years. As of February there were shares of restricted stock outstanding. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Feb. 02, 2020 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 9 - 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 exceeds the U.S. statutory rate of in the -month period ended February primarily due to the non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances, and the establishment of a valuation allowance for a loss carryforward in a non-U.S. jurisdiction, which were partially offset by the benefit of tax holidays and investment credits in certain foreign jurisdictions. Valuation allowances, in jurisdictions with historic losses, eliminate the current tax benefit of losses in these jurisdictions where, based on the weight of information available to us, we determined that it is more likely than not that the tax benefits will not be realized. In the three-month period ended February 2,2020, as a result of the reassessment of the aforementioned available information, we established a valuation allowance of against a non-U.S. based loss carryforward deferred tax asset that is not more likely than not to be realized. Unrecognized tax benefits related to uncertain tax positions were at February and October substantially all of which, if recognized, would favorably impact the Company’s effective tax rate. Accrued interest and penalties related to unrecognized tax benefits was at February and October Although the timing of the expirations of statutes of limitations may be uncertain, as they can be dependent upon the settlement of tax audits, the Company believes that the amount of uncertain tax positions (including interest and penalties, and net of tax benefits) that may be resolved over the next months is immaterial. Resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements. The Company is no longer subject to tax authority examinations in the U.S. and major foreign or state jurisdictions for years prior to fiscal year We were granted a tax holiday in Taiwan that expired on . This tax holiday reduced foreign taxes by , and in the -month periods ended February and January respectively, with an immaterial per share impact in the February period and a one half-cent per share effect in the January period. The effective tax rate of differs from the U.S. statutory rate of in the -month period ended January primarily due to earnings being taxed at lower statutory rates in foreign jurisdictions, the settlement of a tax audit, the benefit of a tax holiday, and investment credits in certain foreign jurisdictions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Feb. 02, 2020 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 10 - EARNINGS PER SHARE The calculation of basic and diluted earnings per share is presented below. Three Months Ended February 2, 2020 January 27, 2019 Net income attributable to Photronics, Inc. shareholders $ 10,300 $ 5,267 Earnings used for diluted earnings per share $ 10,300 $ 5,267 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 65,554 66,583 Effect of dilutive securities: Share-based payment awards 895 464 Potentially dilutive common shares 895 464 Weighted-average common shares used for diluted earnings per share 66,449 67,047 Basic earnings per share $ 0.16 $ 0.08 Diluted earnings per share $ 0.16 $ 0.08 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 have been antidilutive. Three Months Ended February 2, 2020 January 27, 2019 Share-based payment awards 173 1,063 Convertible notes - 5,542 Total potentially dilutive shares excluded 173 6,605 Subsequent to February 2, 2020, and through March 9, 2020, we repurchased 0.1 million shares of our common stock. See Note 13 for information on our share repurchase programs. |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | 3 Months Ended |
Feb. 02, 2020 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | NOTE 11 - 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 February 2, 2020 and January 27, 2019. Three Months Ended February 2, 2020 Foreign Currency Translation Adjustments Other Total Balance at November 1, 2019 $ (8,331 ) $ (674 ) $ (9,005 ) Other comprehensive (loss) income (1,564 ) 17 (1,547 ) Less: other comprehensive income attributable to noncontrolling interests 1,181 9 1,190 Balance at February 2, 2020 $ (11,076 ) $ (666 ) $ (11,742 ) 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 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Feb. 02, 2020 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 12 - 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 values due to their short-term maturities. The fair values of our variable rate debt instruments are a Level 2 measurement and approximates their carrying values due to the variable nature of the underlying interest rates. We did not have any assets or liabilities measured at fair value, on a recurring or a nonrecurring basis, at February 2, 2020 or October 31, 2019. |
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS | 3 Months Ended |
Feb. 02, 2020 | |
SHARE REPURCHASE PROGRAMS [Abstract] | |
SHARE REPURCHASE PROGRAMS | NOTE 13 – SHARE REPURCHASE PROGRAMS In August 2019, the Company’s board of directors authorized the repurchase of up to $ million of its common stock, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Act of 1933 (as amended). All of the million shares repurchased under this program prior to the three-month period ended February 2, 2020 were retired in fiscal 2019. The table below presents information on this repurchase program. Three Months Ended February 2, 2020 From Inception Date of September 25, 2019 Number of shares repurchased 916 1,911 Cost of shares repurchased $ 11,000 $ 22,000 Average price paid per share $ 12.01 $ 11.51 In October 2018 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 |
Feb. 02, 2020 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 - COMMITMENTS AND CONTINGENCIES As of February 2, 2020, the Company had commitments outstanding for capital expenditures of approximately $113.6 million , primarily for the purchase of high-end IC equipment. See Note 7 for information on our operating lease commitments. 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 |
Feb. 02, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 15 - RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Updates Adopted We adopted ASU 2016-02 and all subsequent amendments, collectively codified in ASC Topic 842 “Leases” (“Topic 842”), on November 1, 2019. The guidance requires modified retrospective adoption, either at the beginning of the earliest period presented or at the beginning of the period of adoption. We elected to apply the guidance at the beginning of the period of adoption and recorded, as of November 1, 2019, right-of-use (ROU) leased assets of $6.5 million. In conjunction with this, we recorded lease liabilities, which had been discounted at our incremental borrowing rates, of $6.5 million. Our adoption of Topic 842 did not affect our cash flows or our ability to comply with covenants under our credit agreement. Please see Note 7 for our leases disclosure. Accounting Standards Updates to be Adopted 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. |
INVENTORIES (Policies)
INVENTORIES (Policies) | 3 Months Ended |
Feb. 02, 2020 | |
INVENTORIES [Abstract] | |
Inventories | Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or net realizable value. |
PDMCX JOINT VENTURE (Policies)
PDMCX JOINT VENTURE (Policies) | 3 Months Ended |
Feb. 02, 2020 | |
PDMCX JOINT VENTURE [Abstract] | |
Variable Interest Entities | 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 a variable interest entity (“VIE”). Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial support, we determined that it was a VIE. Having made this determination, we then assessed whether we were the primary beneficiary of the VIE, and concluded that we were the primary beneficiary during the current 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) and 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's management), incur indebtedness, enter into agreements and commitments, and acquire and dispose of PDMCX’s assets. In addition, as a result of the 50.01% variable interest we held during the current and prior-year periods, we had the obligation to absorb losses, and the right to receive benefits, that could potentially be significant to PDMCX. |
REVENUE (Policies)
REVENUE (Policies) | 3 Months Ended |
Feb. 02, 2020 | |
REVENUE [Abstract] | |
Revenue | 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. 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 uncompleted revenue contracts on which we have performed; for any such contracts under which 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 to customer specifications, in accordance with their proprietary designs; 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 consist of a significant amount of our in-process production orders and fully manufactured photomasks which have not yet shipped, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the in-process orders are cancelled by customers. On an individual contract basis, we net contract assets with contract liabilities (deferred revenue) for financial reporting 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 $ million are included in “Other” current assets, and contract liabilities of $ million are included in Accrued liabilities in our February 2, 2020 condensed consolidated balance sheet. Our October 31, 2019 condensed consolidated balance sheet includes contract assets of $ million and contract liabilities of $ million; with like classification to the February 2, 2020, balances. We did t impair any contract assets during the three-month periods ended February 2, 2020 or January 27, 2019, and we recognized $ million and $ million of revenue from the settlement of contract liabilities that existed at the beginning of those respective periods. We generally record our accounts receivable at their billed amounts. All outstanding past due customer invoices are reviewed for collectibility during, and at the end of, every reporting period. 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 derecognize the related receivable. Credit losses incurred on our accounts receivable during the three-month period ended February 2, 2020, were immaterial, and we did t incur any credit losses on our accounts receivable during the three-month period ended January 27, 2019. Our invoice terms generally range from net thirty to , 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 ASC Topic 606 “Revenue from Contracts with Customers” (“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 We pay commissions to third party sales agents for certain sales that they obtain for us. However, the bases of the commissions are the transaction prices of the sales, which are completed in less than one year; thus, no relationship is established with a customer that will result in future business. Therefore, we would not recognize any portion of these sales commissions as costs of obtaining a contract, nor do we currently foresee other circumstances under which we would recognize such assets. 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 two weeks two three weeks 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 one to twenty-four months . We warrant that our photomasks conform to customer specifications, and will typically repair, replace, or issue a refund for, 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. |
LEASES (Policies)
LEASES (Policies) | 3 Months Ended |
Feb. 02, 2020 | |
LEASES [Abstract] | |
Leases | We adopted ASU 2016 - 02 and all subsequent amendments, collectively codified in ASC Topic 842 “Leases” (“Topic 842 ”), on November 1, 2019. The guidance requires modified retrospective adoption, either at the beginning of the earliest period presented or at the beginning of the period of adoption. We elected to apply the guidance at the beginning of the period of adoption and recorded, as of November 1, 2019, right-of-use (ROU) leased assets of $6.5 million. In conjuction with this, we recorded lease liabilities, which had been discounted at our incremental borrowing rates, of $ 6.5 million. The guidance allows a number of elections and practical expedients, of which we elected the following: - Election not to recognize short-term leases on the balance sheet. - Practical expedient to not separate lease and non-lease components in a contract. - Practical expedient “package” for transitioning to the new guidance: - Not reassessing whether any expired or existing contracts are, or contain, leases. - Not reassessing lease classification for any existing or expired leases. - Not reassessing initial direct costs for any existing leases. Our involvement in lease arrangements has typically been as a lessee. We determine if an agreement is or contains a lease on the date of the lease agreement or commitment, if earlier. Our evaluation considers whether the arrangement includes an identified asset and whether it affords us the right to control the asset. Our having the right to control the identified asset is determined by whether we are entitled to substantially all of its economic benefits and can direct its use. We recognize leases on our consolidated balance sheet when a lessor makes an asset underlying a lease having a term in excess of months available for our use. The present value of lease payments over the term of the lease, which is determined using our incremental borrowing rate for collateralized loans at the commencement date of the lease, provides the basis for the initial measurement of ROU assets and their related lease liabilities. Variable lease payments, other than those that are dependent on an index or on a rate, are not included in the measurement of ROU assets and their related lease liabilities. Lease terms will include extension periods if the lease agreement includes an option to extend the lease that we are reasonably certain to exercise. |
SHARE-BASED COMPENSATION (Polic
SHARE-BASED COMPENSATION (Policies) | 3 Months Ended |
Feb. 02, 2020 | |
Employee Stock Option [Member] | |
Stock Options [Abstract] | |
Share-Based Compensation | Option awards generally vest annually, on a straight-line basis,over 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 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 |
Feb. 02, 2020 | |
INCOME TAXES [Abstract] | |
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. Unrecognized tax benefits related to uncertain tax positions were at February and October substantially all of which, if recognized, would favorably impact the Company’s effective tax rate. Accrued interest and penalties related to unrecognized tax benefits was at February and October Although the timing of the expirations of statutes of limitations may be uncertain, as they can be dependent upon the settlement of tax audits, the Company believes that the amount of uncertain tax positions (including interest and penalties, and net of tax benefits) that may be resolved over the next months is immaterial. Resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements. The Company is no longer subject to tax authority examinations in the U.S. and major foreign or state jurisdictions for years prior to fiscal year |
FAIR VALUE MEASUREMENTS (Polici
FAIR VALUE MEASUREMENTS (Policies) | 3 Months Ended |
Feb. 02, 2020 | |
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 |
Feb. 02, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recent Accounting Pronouncements | Accounting Standards Updates Adopted We adopted ASU 2016-02 and all subsequent amendments, collectively codified in ASC Topic 842 “Leases” (“Topic 842”), on November 1, 2019. The guidance requires modified retrospective adoption, either at the beginning of the earliest period presented or at the beginning of the period of adoption. We elected to apply the guidance at the beginning of the period of adoption and recorded, as of November 1, 2019, right-of-use (ROU) leased assets of $6.5 million. In conjunction with this, we recorded lease liabilities, which had been discounted at our incremental borrowing rates, of $6.5 million. Our adoption of Topic 842 did not affect our cash flows or our ability to comply with covenants under our credit agreement. Please see Note 7 for our leases disclosure. Accounting Standards Updates to be Adopted 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. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
INVENTORIES [Abstract] | |
Inventories | Inventories are stated at the lower of cost, determined under the first-in, first-out ("FIFO") method, or net realizable value. February 2, 2020 October 31, 2019 Raw materials $ 46,090 $ 46,027 Work in process 2,981 2,122 Finished goods 602 6 $ 49,673 $ 48,155 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following: February 2, 2020 October 31, 2019 Land $ 12,055 $ 12,085 Buildings and improvements 173,497 172,340 Machinery and equipment 1,759,785 1,748,483 Leasehold improvements 20,021 19,921 Furniture, fixtures and office equipment 14,304 14,404 Construction in progress 18,521 28,135 1,998,183 1,995,368 Accumulated depreciation and amortization (1,378,248 ) (1,362,927 ) $ 619,935 $ 632,441 |
PDMCX JOINT VENTURE (Tables)
PDMCX JOINT VENTURE (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
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 with our exposure to loss related to these assets and liabilities. February 2, 2020 October 31, 2019 Classification Carrying Amount Photronics Interest Carrying Amount Photronics Interest Current assets $ 23,638 $ 11,821 $ 24,142 $ 12,074 Non-current assets 110,296 55,159 114,015 57,019 Total assets 133,934 66,980 138,157 69,093 Current liabilities 24,044 12,024 16,889 8,446 Non-current liabilities 36,716 18,362 42,094 21,051 Total liabilities 60,760 30,386 58,983 29,497 Net assets $ 73,174 $ 36,594 $ 79,174 $ 39,596 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
LONG-TERM DEBT [Abstract] | |
Long-Term Debt | Long-term debt consists of the following: February 2, 2020 October 31, 2019 Project Loans $ 35,094 $ 34,490 Working Capital Loans (value added tax component) 9,314 9,539 44,408 44,029 Current portion of long-term debt (7,959 ) (2,142 ) Long-term debt $ 36,449 $ 41,887 |
Debt Instrument [Line Items] | |
Maturities of Long-term Debt | At February 2, 2020, maturities of our long-term debt over the next five fiscal years and thereafter were as follows: 2020 (remainder of) $ 1,788 2021 8,449 2022 12,648 2023 3,501 2024 6,704 Thereafter 11,318 $ 44,408 |
Project Loans [Member] | |
Debt Instrument [Line Items] | |
Maturities of Long-term Debt | In November 2018, PDMCX was approved for credit of $ million, subject to certain limitations related to PDMCX registered capital at the time of the initial approval, pursuant to which PDMCX has and will enter into separate loan agreements (“the Project Loans”) for intermittent borrowings. The Project Loans, which are denominated in Chinese renminbi (RMB), are being used to finance certain capital expenditures in China. PDMCX granted liens on its land, building, and certain equipment, as collateral for the Project Loans. As of February 2, 2020, PDMCX had borrowed million RMB ($ million) against this approval. Payments on these borrowings are due semi-annually through December 2025 ; the initial payment is scheduled for June 2020 . The table below presents, in U.S. dollars, the timing of future payments against the borrowings. Fiscal Year 2020 2021 2022 2023 2024 2025 2026 Principal payments $ 1,298 $ 6,488 $ 5,785 $ 3,501 $ 6,704 $ 6,416 $ 4,902 |
Working Capital Loans [Member] | |
Debt Instrument [Line Items] | |
Maturities of Long-term Debt | In November 2018, PDMCX received approval for unsecured credit of $ million, pursuant to which PDMCX may enter into separate loan agreements. Under this credit agreement (the “Working Capital Loans”), PDMCX can borrow up to million RMB to pay value-added taxes (“VAT”), and up to million RMB to fund operations; combined total borrowings are limited to $ million. As of February 2, 2020, PDMCX had million RMB ($ million) outstanding against the approval to pay VAT. Payments on these borrowings are due semiannually, at an increasing rate, through January 2022 ; PDMCX made installment payments totaling $ million during the three-month period ended February 2, 2020. The table below presents, in U.S. dollars, the timing of future payments against these borrowings. Fiscal Year 2020 2021 2022 Principal payments $ 490 $ 1,961 $ 6,863 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
REVENUE [Abstract] | |
Disaggregation of Revenue | The following tables present our revenue for the three-month periods ended February 2, 2020 and January 27, 2019, disaggregated by product type, geographic origin, and timing of recognition. In the three-month period ended February 2, 2020, we changed the threshold for the definition of high-end FPD, from G8 and above and active matrix organic light-emitting diode (AMOLED) display screens, to G10.5 and above, AMOLED, and low-temperature polysilicon display screens (LTPS), to reflect the overall advancement of technology in the FPD industry. Our definition of high-end IC products remains as 28 nanometer or smaller. The revenue by product type for the three-month period ended January 27, 2019, presented below has been reclassified to conform to the current period presentation. Three Months Ended Three Months Ended February 2, 2020 January 27, 2019 Revenue by Product Type IC High-end $ 41,041 $ 34,566 Mainstream 65,937 60,314 Total IC $ 106,978 $ 94,880 FPD High-end $ 39,770 $ 15,350 Mainstream 12,988 14,482 Total FPD $ 52,758 $ 29,832 $ 159,736 $ 124,712 Revenue by Geographic Origin Taiwan $ 66,114 $ 57,740 Korea 40,736 35,237 United States 25,067 22,472 Europe 7,543 8,354 China 19,900 263 All other Asia 376 646 $ 159,736 $ 124,712 Revenue by Timing of Recognition Over time $ 137,696 $ 120,845 At a point in time 22,040 3,867 $ 159,736 $ 124,712 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
LEASES [Abstract] | |
Lease Payments Under Non-cancelable Leases | The following tables present lease payments under non-cancellable leases as of February 2, 2020. Fiscal Year 2020 2021 2022 2023 2024 Thereafter Total Lease Payments Imputed Interest* Total Lease payments $ 1,521 $ 1,767 $ 1,652 $ 770 $ 438 $ 386 $ 6,534 $ (286 ) $ 6,248 * Imputed interest represents difference between undiscounted cash flows and discounted cash flows. |
Supplemental Information Related to Leases | Presented below is other information related to our operating leases. Three Months Ended Supplemental cash flows information: February 2, 2020 Operating cash flows from operating leases $ 1,885 ROU assets obtained in exchange for lease obligations $ 282 |
Weighted Average Lease Terms And Discount Rates Leases Not Yet Commenced | As of February 2, 2020 Weighted-average remaining lease term 3.9 years Weighted-average discount rate 2.38 % |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | Rent expense, as calculated under guidance in effect prior to our adoption of the new leases guidance, was $3.0 million in fiscal year 2019. At October 31, 2019, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year were as presented in the table below. The amounts are undiscounted and were calculated in accordance with guidance in effect prior to our adoption of the new leases guidance. 2020 $ 1,885 2021 1,613 2022 1,535 2023 742 2024 424 Thereafter 377 $ 6,576 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
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 -month period ended January are presented in the following table. Three Months Ended January 27, 2019 Volatility 33.1% Risk free rate of return 2.5-2.9% Dividend yield 0.0% Expected term 5.1 years |
Information on Outstanding and Exercisable Option | Information on outstanding and exercisable option awards as of February is presented below. Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at February 2, 2020 1,795,989 $ 9.17 5.4 years $ 6,492 Exercisable at February 2, 2020 1,487,661 $ 9.07 4.8 years $ 5,518 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
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 February 2, 2020 January 27, 2019 Net income attributable to Photronics, Inc. shareholders $ 10,300 $ 5,267 Earnings used for diluted earnings per share $ 10,300 $ 5,267 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 65,554 66,583 Effect of dilutive securities: Share-based payment awards 895 464 Potentially dilutive common shares 895 464 Weighted-average common shares used for diluted earnings per share 66,449 67,047 Basic earnings per share $ 0.16 $ 0.08 Diluted earnings per share $ 0.16 $ 0.08 |
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 have been antidilutive. Three Months Ended February 2, 2020 January 27, 2019 Share-based payment awards 173 1,063 Convertible notes - 5,542 Total potentially dilutive shares excluded 173 6,605 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
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 February 2, 2020 and January 27, 2019. Three Months Ended February 2, 2020 Foreign Currency Translation Adjustments Other Total Balance at November 1, 2019 $ (8,331 ) $ (674 ) $ (9,005 ) Other comprehensive (loss) income (1,564 ) 17 (1,547 ) Less: other comprehensive income attributable to noncontrolling interests 1,181 9 1,190 Balance at February 2, 2020 $ (11,076 ) $ (666 ) $ (11,742 ) 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 |
SHARE REPURCHASE PROGRAMS (Tabl
SHARE REPURCHASE PROGRAMS (Tables) | 3 Months Ended |
Feb. 02, 2020 | |
SHARE REPURCHASE PROGRAMS [Abstract] | |
Shares Repurchase Programs | In August 2019, the Company’s board of directors authorized the repurchase of up to $ million of its common stock, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Act of 1933 (as amended). All of the million shares repurchased under this program prior to the three-month period ended February 2, 2020 were retired in fiscal 2019. The table below presents information on this repurchase program. Three Months Ended February 2, 2020 From Inception Date of September 25, 2019 Number of shares repurchased 916 1,911 Cost of shares repurchased $ 11,000 $ 22,000 Average price paid per share $ 12.01 $ 11.51 In October 2018 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 |
Feb. 02, 2020Facility | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 11 |
Taiwan [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 3 |
Korea [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 3 |
United States [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 3 |
Europe [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 2 |
China [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 2 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Feb. 02, 2020 | Oct. 31, 2019 |
INVENTORIES [Abstract] | ||
Raw materials | $ 46,090 | $ 46,027 |
Work in process | 2,981 | 2,122 |
Finished goods | 602 | 6 |
Inventory | $ 49,673 | $ 48,155 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 02, 2020 | Jan. 27, 2019 | Oct. 31, 2019 | |
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 1,998,183 | $ 1,995,368 | |
Accumulated depreciation and amortization | (1,378,248) | (1,362,927) | |
Property, plant and equipment, net | 619,935 | 632,441 | |
Depreciation and amortization expense | 23,500 | $ 17,600 | |
Land [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 12,055 | 12,085 | |
Buildings and Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 173,497 | 172,340 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 1,759,785 | 1,748,483 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 20,021 | 19,921 | |
Furniture, Fixtures and Office Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 14,304 | 14,404 | |
Construction in Progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 18,521 | $ 28,135 |
PDMCX JOINT VENTURE, VIE (Detai
PDMCX JOINT VENTURE, VIE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
Variable Interest Entity [Abstract] | ||
Consolidation liabilities, recourse | $ 0 | |
PDMCX [Member] | ||
Variable Interest Entity [Abstract] | ||
Gain (loss) on consolidation | 0 | $ 0 |
Total committed investment | 160 | |
Local financing | $ 35 | |
Initial term of agreement | 2 years | |
Period before put or purchase option can be exercised | 6 months | |
Operating (loss) | $ (3.7) | $ (1.3) |
PDMCX [Member] | Minimum [Member] | ||
Variable Interest Entity [Abstract] | ||
Ownership percentage | 20.00% | |
PDMCX [Member] | Maximum [Member] | ||
Variable Interest Entity [Abstract] | ||
Number of business days for obtaining required approvals and clearance for exiting party | 3 days | |
PDMCX [Member] | Total Support Remaining [Member] | ||
Variable Interest Entity [Abstract] | ||
Financial or other support, amount | $ 29 | |
PDMCX [Member] | Cash [Member] | Total Support Remaining [Member] | ||
Variable Interest Entity [Abstract] | ||
Financial or other support, amount | 14 | |
PDMCX [Member] | Local Financing [Member] | ||
Variable Interest Entity [Abstract] | ||
Consolidated assets pledged | 92.9 | |
PDMCX [Member] | Local Financing [Member] | Total Support Remaining [Member] | ||
Variable Interest Entity [Abstract] | ||
Local financing | $ 15 | |
Photronics Interest [Member] | ||
Variable Interest Entity [Abstract] | ||
Ownership percentage | 50.01% | |
Financial or other support, amount | $ 48 | |
Maximum exposure to loss | $ 36.6 | |
DNP [Member] | ||
Variable Interest Entity [Abstract] | ||
Ownership percentage | 49.99% | |
Financial or other support, amount | $ 48 |
PDMCX JOINT VENTURE, Carrying A
PDMCX JOINT VENTURE, Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2020 | Oct. 31, 2019 |
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | $ 440,904 | $ 427,527 |
Total assets | 1,125,460 | 1,118,665 |
Current liabilities | 157,654 | 151,954 |
Total liabilities | 212,659 | 207,573 |
Carrying Amount [Member] | ||
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | 23,638 | 24,142 |
Non-current assets | 110,296 | 114,015 |
Total assets | 133,934 | 138,157 |
Current liabilities | 24,044 | 16,889 |
Non-current liabilities | 36,716 | 42,094 |
Total liabilities | 60,760 | 58,983 |
Net assets | 73,174 | 79,174 |
Photronics Interest [Member] | ||
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | 11,821 | 12,074 |
Non-current assets | 55,159 | 57,019 |
Total assets | 66,980 | 69,093 |
Current liabilities | 12,024 | 8,446 |
Non-current liabilities | 18,362 | 21,051 |
Total liabilities | 30,386 | 29,497 |
Net assets | $ 36,594 | $ 39,596 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands, ¥ in Millions | Aug. 25, 2019USD ($) | Jul. 28, 2019USD ($) | Feb. 02, 2020USD ($) | Feb. 02, 2020CNY (¥) | Jan. 27, 2019USD ($) | Feb. 02, 2020CNY (¥) | Oct. 31, 2019USD ($) |
Long-term debt [Abstract] | |||||||
Long-term debt | $ 44,408 | $ 44,029 | |||||
Current portion of long-term debt | (7,959) | (2,142) | |||||
Long-term debt | $ 36,449 | $ 41,887 | |||||
Weighted-average interest rate of short -term debt | 3.90% | 3.90% | 3.84% | ||||
Repayments of debt | $ 389 | $ 0 | |||||
Proceeds from debt | 1,140 | $ 28,180 | |||||
Maturities of Long-term Debt [Abstract] | |||||||
2020 (remainder of) | 1,788 | ||||||
2021 | 8,449 | ||||||
2022 | 12,648 | ||||||
2023 | 3,501 | ||||||
2024 | 6,704 | ||||||
Thereafter | 11,318 | ||||||
Project Loans [Member] | |||||||
Long-term debt [Abstract] | |||||||
Long-term debt | $ 35,094 | $ 34,490 | |||||
Interest rate percentage | 4.90% | 4.90% | |||||
Maturity date of debt | Dec. 31, 2025 | Dec. 31, 2025 | |||||
Maximum borrowing capacity | $ 50,000 | ||||||
Consolidated assets pledged | 92,900 | ||||||
Proceeds from credit facility | $ 35,100 | ¥ 243.4 | |||||
Date of first required payment | Jun. 30, 2020 | Jun. 30, 2020 | |||||
Maturities of Long-term Debt [Abstract] | |||||||
2020 (remainder of) | $ 1,298 | ||||||
2021 | 6,488 | ||||||
2022 | 5,785 | ||||||
2023 | 3,501 | ||||||
2024 | 6,704 | ||||||
2025 | 6,416 | ||||||
2026 | $ 4,902 | ||||||
Working Capital Loans [Member] | |||||||
Long-term debt [Abstract] | |||||||
Maturity date of debt | Jan. 31, 2022 | Jan. 31, 2022 | |||||
Maximum borrowing capacity | $ 25,000 | ||||||
Maturities of Long-term Debt [Abstract] | |||||||
2020 (remainder of) | 490 | ||||||
2021 | 1,961 | ||||||
2022 | $ 6,863 | ||||||
Working Capital Loans [Member] | Minimum [Member] | |||||||
Long-term debt [Abstract] | |||||||
Basis spread on variable rate | 0.2575% | 0.2575% | |||||
Working Capital Loans [Member] | Maximum [Member] | |||||||
Long-term debt [Abstract] | |||||||
Basis spread on variable rate | 0.6775% | 0.6775% | |||||
Working Capital Loans (value added tax component) [Member] | |||||||
Long-term debt [Abstract] | |||||||
Long-term debt | $ 9,314 | $ 9,539 | |||||
Maximum borrowing capacity | ¥ | ¥ 140 | ||||||
Repayments of debt | 400 | ||||||
Amount outstanding under credit facility | $ 9,300 | ¥ 64.6 | |||||
Working Capital Loans (value added tax component) [Member] | Minimum [Member] | |||||||
Long-term debt [Abstract] | |||||||
Interest rate percentage | 4.80% | 4.80% | |||||
Working Capital Loans (value added tax component) [Member] | Maximum [Member] | |||||||
Long-term debt [Abstract] | |||||||
Interest rate percentage | 4.90% | 4.90% | |||||
Working Capital Loans, Fund Operations [Member] | |||||||
Long-term debt [Abstract] | |||||||
Maximum borrowing capacity | ¥ | ¥ 60 | ||||||
Proceeds from credit facility | $ 6,500 | ¥ 44.8 | |||||
Term of loan | 1 year | 1 year | |||||
Working Capital Loans, Fund Operations [Member] | Minimum [Member] | |||||||
Long-term debt [Abstract] | |||||||
Interest rate percentage | 4.40% | 4.40% | |||||
Working Capital Loans, Fund Operations [Member] | Maximum [Member] | |||||||
Long-term debt [Abstract] | |||||||
Interest rate percentage | 4.60% | 4.60% | |||||
Amended and Restated Credit Agreement [Member] | |||||||
Long-term debt [Abstract] | |||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Term of loan | 5 years | 5 years | |||||
Current borrowing capacity | $ 50,000 | ||||||
Cash limit for dividends, distributions and redemption on equity | 50,000 | ||||||
Amount outstanding under credit facility | 0 | ||||||
Available borrowing capacity | $ 50,000 | ||||||
Effective interest rate | 2.65% | 2.65% | |||||
Equipment Loan [Member] | |||||||
Long-term debt [Abstract] | |||||||
Maximum borrowing capacity | $ 35,000 | ||||||
Proceeds from debt | $ 3,500 | ||||||
Equipment Loan [Member] | LIBOR [Member] | |||||||
Long-term debt [Abstract] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Term of variable rate | 30 days | ||||||
Effective interest rate | 2.67% | 2.67% |
REVENUE, Contract Assets, Liabi
REVENUE, Contract Assets, Liabilities and Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 02, 2020 | Jan. 27, 2019 | Oct. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Contract assets | $ 7,900 | $ 7,600 | |
Contract liabilities | 11,800 | $ 11,500 | |
Impairment loss on contract assets | 0 | $ 0 | |
Provision for credit losses | 0 | 0 | |
Change in Contract with Customer, Liability [Abstract] | |||
Revenue from settlement of contract liabilities | $ 1,200 | $ 700 | |
Minimum [Member] | |||
Change in Contract with Customer, Liability [Abstract] | |||
Product invoice term | 30 days | ||
Product Warranty [Abstract] | |||
Product warranty period | 1 month | ||
Maximum [Member] | |||
Change in Contract with Customer, Liability [Abstract] | |||
Product invoice term | 90 days | ||
Product Warranty [Abstract] | |||
Product warranty period | 24 months | ||
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 |
REVENUE, Disaggregation of Reve
REVENUE, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
Disaggregation of Revenue [Abstract] | ||
Revenue | $ 159,736 | $ 124,712 |
Over Time [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 137,696 | 120,845 |
At a Point in Time [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 22,040 | 3,867 |
Taiwan [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 66,114 | 57,740 |
Korea [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 40,736 | 35,237 |
United States [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 25,067 | 22,472 |
Europe [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 7,543 | 8,354 |
China [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 19,900 | 263 |
All Other Asia [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 376 | 646 |
IC [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 106,978 | 94,880 |
High-end [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 41,041 | 34,566 |
Mainstream [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 65,937 | 60,314 |
FPD [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 52,758 | 29,832 |
High-end [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | 39,770 | 15,350 |
Mainstream [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenue | $ 12,988 | $ 14,482 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Feb. 02, 2020 | Oct. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease cost | $ 1,200 | ||
Short-term lease costs | 100 | ||
Lease Payments Under Non-cancellable Leases [Abstract] | |||
2020 | 1,521 | ||
2021 | 1,767 | ||
2022 | 1,652 | ||
2023 | 770 | ||
2024 | 438 | ||
Thereafter | 386 | ||
Total Lease Payments | 6,534 | ||
Imputed Interest | [1] | (286) | |
Total | 6,248 | ||
Supplemental Cash Flow Information [Abstract] | |||
Operating cash flows from operating leases | 1,885 | ||
ROU assets obtained in exchange for lease obligations | $ 282 | ||
Weighted Average Lease Terms, Discount Rates and Leases Not Yet Commenced [Abstract] | |||
Weighted-average remaining lease term | 3 years 10 months 24 days | ||
Weighted-average discount rate | 2.38% | ||
Rent expense under operating leases | $ 3,000 | ||
Future minimum lease payments under non-cancelable operating leases [Abstract] | |||
2020 | 1,885 | ||
2021 | 1,613 | ||
2022 | 1,535 | ||
2023 | 742 | ||
2024 | 424 | ||
Thereafter | 377 | ||
Total future minimum payments due | 6,576 | ||
Other Assets [Member] | |||
Leases [Abstract] | |||
Right-of-use assets, operating leases | $ 7,000 | ||
Accrued Liabilities [Member] | |||
Lease Payments Under Non-cancellable Leases [Abstract] | |||
Total | 1,900 | ||
Other Liabilities [Member] | |||
Lease Payments Under Non-cancellable Leases [Abstract] | |||
Total | $ 4,400 | ||
ASU 2016-02 [Member] | |||
Leases [Abstract] | |||
Right-of-use assets, operating leases | 6,500 | ||
Lease Payments Under Non-cancellable Leases [Abstract] | |||
Total | $ 6,500 | ||
[1] | Imputed interest represents difference between undiscounted cash flows and discounted cash flows. |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
Share-based Compensation [Abstract] | ||
Maximum number of shares of common stock that may be issued (in shares) | 4,000,000 | |
Share-based compensation expense incurred | $ 1,400 | $ 1,100 |
Cash received from option exercises | 2,800 | 500 |
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 | |
Additional disclosures [Abstract] | ||
Share options granted (in shares) | 0 | 132,000 |
Weighted-average grant date fair value of options granted (in dollars per share) | $ 3.31 | |
Unrecognized compensation cost related to unvested option awards | $ 700 | |
Period for recognition of compensation cost not yet recognized | 2 years 1 month 6 days | |
Weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair value of options [Abstract] | ||
Volatility | 33.10% | |
Dividend yield | 0.00% | |
Expected term | 5 years 1 month 6 days | |
Outstanding and exercisable option awards [Roll Forward] | ||
Outstanding at end of period (in shares) | 1,795,989 | |
Exercisable at end of period (in shares) | 1,487,661 | |
Weighted-Average Exercise Price [Abstract] | ||
Weighted average exercise price, Outstanding at end of period (in dollars per share) | $ 9.17 | |
Weighted average exercise price, Exercisable at end of period (in dollars per share) | $ 9.07 | |
Weighted-Average Remaining Contractual Life [Abstract] | ||
Weighted average remaining contractual life, Outstanding at end of period | 5 years 4 months 24 days | |
Weighted average remaining contractual life, Exercisable at end of period | 4 years 9 months 18 days | |
Aggregate Intrinsic Value [Abstract] | ||
Aggregate intrinsic value, Outstanding at end of period | $ 6,492 | |
Aggregate intrinsic value, Exercisable at end of period | $ 5,518 | |
Stock Options [Member] | Minimum [Member] | ||
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] | ||
Additional disclosures [Abstract] | ||
Period for recognition of compensation cost not yet recognized | 3 years 2 months 12 days | |
Restricted Stock [Abstract] | ||
Restricted stock awards granted (in shares) | 522,000 | 435,000 |
Weighted average grant date fair value of restricted stock awards (in dollars per share) | $ 15.26 | $ 9.80 |
Compensation cost not yet recognized related to unvested restricted stock awards | $ 10,600 | |
Number of shares of restricted stock outstanding (in shares) | 939,766 | |
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 Millions | 3 Months Ended | ||
Feb. 02, 2020 | Jan. 27, 2019 | Oct. 31, 2019 | |
Effective Income and Statutory Tax Rate [Abstract] | |||
Effective tax rate | 45.40% | ||
U.S. statutory rate | 21.00% | 15.20% | |
Tax Credit Carryforward [Abstract] | |||
Change in valuation allowance | $ 2.1 | ||
Unrecognized Tax Benefits [Abstract] | |||
Unrecognized tax benefits | 1.9 | $ 1.9 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | |||
Accrued interest and penalties related to unrecognized tax benefits | $ 0.2 | $ 0.2 | |
Taiwan Agency of the Ministry of Finance [Member] | |||
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 | $ 0.1 | $ 0.8 | |
Per share effect of income tax holiday (in dollars per share) | $ 0.005 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 09, 2020 | Feb. 02, 2020 | Jan. 27, 2019 | |
Calculation of basic and diluted earnings per share [Abstract] | |||
Net income attributable to Photronics, Inc. shareholders | $ 10,300 | $ 5,267 | |
Earnings used for diluted earnings per share | $ 10,300 | $ 5,267 | |
Weighted-average common shares computations [Abstract] | |||
Weighted-average common shares used for basic earnings per share (in shares) | 65,554 | 66,583 | |
Effect of dilutive securities [Abstract] | |||
Share-based payment awards (in shares) | 895 | 464 | |
Potentially dilutive common shares (in shares) | 895 | 464 | |
Weighted-average common shares used for diluted earnings per share (in shares) | 66,449 | 67,047 | |
Basic earnings per share (in dollars per share) | $ 0.16 | $ 0.08 | |
Diluted earnings per share (in dollars per share) | $ 0.16 | $ 0.08 | |
Antidilutive Securities [Abstract] | |||
Potentially dilutive shares excluded (in shares) | 173 | 6,605 | |
Subsequent Event [Member] | |||
Antidilutive Securities [Abstract] | |||
Repurchased common stock (in shares) | 100 | ||
Share-based Payment Awards [Member] | |||
Antidilutive Securities [Abstract] | |||
Potentially dilutive shares excluded (in shares) | 173 | 1,063 | |
Convertible Notes [Member] | |||
Antidilutive Securities [Abstract] | |||
Potentially dilutive shares excluded (in shares) | 0 | 5,542 |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 02, 2020 | Jan. 27, 2019 | |
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 | 769,892 | |
Ending Balance | 770,676 | |
Accumulated Other Comprehensive Income [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (9,005) | (4,966) |
Ending Balance | (11,742) | 343 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (8,331) | (4,328) |
Ending Balance | (11,076) | 971 |
Other [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (674) | (638) |
Ending Balance | (666) | (628) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive (loss) income | (1,547) | 6,591 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive (loss) income | (1,564) | 6,572 |
Other [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive (loss) income | 17 | 19 |
AOCI Attributable to Noncontrolling Interest [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Less: other comprehensive income attributable to noncontrolling interests | 1,190 | 1,282 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Less: other comprehensive income attributable to noncontrolling interests | 1,181 | 1,273 |
Other [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Less: other comprehensive income attributable to noncontrolling interests | $ 9 | $ 9 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Feb. 02, 2020 | Oct. 31, 2018 |
Fair Value, Assets and Liability [Abstract] | ||
Total assets | $ 0 | $ 0 |
Total liabilities | $ 0 | $ 0 |
SHARE REPURCHASE PROGRAMS (Deta
SHARE REPURCHASE PROGRAMS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Feb. 02, 2020 | Jan. 27, 2019 | Jan. 27, 2019 | Feb. 02, 2020 | Oct. 31, 2019 | Aug. 31, 2019 | Oct. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Cost of shares repurchased | $ 11,000 | $ 10,696 | |||||
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 - termination date | Feb. 1, 2019 | ||||||
Repurchased common stock (in shares) | 1,137 | 1,467 | |||||
Cost of shares repurchased | $ 10,694 | $ 13,807 | |||||
Average price paid per share (in dollars per share) | $ 9.40 | $ 9.41 | |||||
Shares repurchased and retired (in shares) | 900 | ||||||
August 2019 Announced Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased authorized amount | $ 100,000 | ||||||
Stock repurchase program - commencement date | Sep. 25, 2019 | ||||||
Repurchased common stock (in shares) | 916 | 1,911 | |||||
Cost of shares repurchased | $ 11,000 | $ 22,000 | |||||
Average price paid per share (in dollars per share) | $ 12.01 | $ 11.51 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 02, 2020USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Outstanding commitments for capital expenditure | $ 113,600 |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Feb. 02, 2020 | Oct. 31, 2019 |
Accounting Standards Updates Adopted [Abstract] | ||
Lease liabilities | $ 6,248 | |
ASU 2016-02 [Member] | ||
Accounting Standards Updates Adopted [Abstract] | ||
Right-of-use leased assets | $ 6,500 | |
Lease liabilities | $ 6,500 |