Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Oct. 29, 2017	Dec. 15, 2017	Apr. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	PHOTRONICS INC
Entity Central Index Key	0000810136
Current Fiscal Year End Date	--10-29
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 777,531,974
Entity Common Stock, Shares Outstanding		69,052,587
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Oct. 29, 2017

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 29, 2017	Oct. 30, 2016
Current assets:
Cash and cash equivalents	$ 308,021	$ 314,074
Accounts receivable, net of allowance of $2,319 in 2017 and $3,901 in 2016	105,320	92,636
Inventories	23,703	22,081
Other current assets	12,080	12,795
Total current assets	449,124	441,586
Property, plant and equipment, net	535,197	506,434
Intangible assets, net	17,122	19,854
Deferred income taxes	15,481	16,322
Other assets	3,870	3,792
Total assets	1,020,794	987,988
Current liabilities:
Current portion of long-term borrowings	4,639	5,428
Accounts payable	50,834	48,906
Payables - related parties	0	2,743
Accrued liabilities	26,303	24,240
Total current liabilities	81,776	81,317
Long-term borrowings	57,337	61,860
Deferred income taxes	2,049	1,491
Other liabilities	14,337	17,846
Total liabilities	155,499	162,514
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value, 2,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value, 150,000 shares authorized, 68,666 shares issued and outstanding at October 29, 2017, 68,080 shares issued and outstanding at October 30, 2016	687	681
Additional paid-in capital	547,596	541,093
Retained earnings	189,390	176,260
Accumulated other comprehensive income (loss)	6,891	(7,671)
Total Photronics, Inc. shareholders' equity	744,564	710,363
Noncontrolling interests	120,731	115,111
Total equity	865,295	825,474
Total liabilities and equity	$ 1,020,794	$ 987,988

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Oct. 29, 2017	Oct. 30, 2016
Current assets:
Accounts receivable, allowance	$ 2,319	$ 3,901
Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000	2,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000	150,000
Common stock, shares issued (in shares)	68,666	68,080
Common stock, shares outstanding (in shares)	68,666	68,080

Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Oct. 29, 2017

Oct. 30, 2016

Nov. 01, 2015

Consolidated Statements of Income [Abstract]

Revenue

$ 450,678

$ 483,456

^[1],[2]

$ 524,206

Cost of goods sold

(359,363)

(364,750)

(381,070)

Gross profit

91,315

118,706

^[1],[2]

143,136

Operating expenses:

Selling, general and administrative

(43,585)

(44,577)

(48,983)

Research and development

(15,862)

(21,654)

(21,920)

Total operating expenses

(59,447)

(66,231)

(70,903)

Operating income

31,868

52,475

72,233

Other income (expense):

Interest income and other income (expense)

(3,068)

2,424

2,797

Interest expense

(2,235)

(3,365)

(4,990)

Gain on sale of investment

8,940

Income before income tax provision

26,565

60,474

70,040

Income tax provision

(5,276)

(4,798)

(13,181)

Net income

21,289

55,676

^[1],[2]

56,859

Net income attributable to noncontrolling interests

(8,159)

(9,476)

(12,234)

Net income attributable to Photronics, Inc. shareholders

$ 13,130

$ 46,200

^[1],[2]

$ 44,625

Earnings per share:

Basic (in dollars per share)

$ 0.19

$ 0.68

^[1],[2]

$ 0.67

Diluted (in dollars per share)

$ 0.19

$ 0.64

^[1],[2]

$ 0.63

Weighted-average number of common shares outstanding:

Basic (in shares)

68,436

67,539

66,331

Diluted (in shares)

69,288

76,354

78,383

[1]	Includes $8.8 million gain on sale of investment in a foreign entity.
[2]	Includes tax benefits in Taiwan of $4.8 million primarily related to the recognition of prior period tax benefits and other tax positions no longer deemed necessary.

Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands

12 Months Ended

Oct. 29, 2017

Oct. 30, 2016

Nov. 01, 2015

Consolidated Statements of Comprehensive Income [Abstract]

Net income

$ 21,289

$ 55,676

^[1],[2]

$ 56,859

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustments

19,799

6,334

(40,154)

Amortization of cash flow hedge

129

128

Other

478

(589)

(381)

Net other comprehensive income (loss)

20,406

5,874

(40,407)

Comprehensive income

41,695

61,550

16,452

Less: comprehensive income attributable to noncontrolling interests

14,003

12,448

4,174

Comprehensive income attributable to Photronics, Inc. shareholders

$ 27,692

$ 49,102

$ 12,278

[1]	Includes $8.8 million gain on sale of investment in a foreign entity.
[2]	Includes tax benefits in Taiwan of $4.8 million primarily related to the recognition of prior period tax benefits and other tax positions no longer deemed necessary.

Consolidated Statements of Equity - USD ($)
shares in Thousands, $ in Thousands

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

Non-Controlling Interests [Member]

Total

Balance at Nov. 02, 2014

$ 659

$ 520,182

$ 85,435

$ 21,774

$ 111,444

$ 739,494

Balance (in shares) at Nov. 02, 2014

65,930

Net income

$ 0

44,625

12,234

56,859

Other comprehensive income (loss)

(32,347)

(8,060)

(40,407)

Sales of common stock through employee stock option and purchase plan

$ 5

2,505

2,510

Sales of common stock through employee stock option and purchase plan (in shares)

513

Restricted stock awards vesting and expense

$ 2

1,064

1,066

Restricted stock awards vesting and expense (in shares)

159

Share-based compensation expense

$ 0

2,623

Repurchase of common stock by subsidiary

(107)

(79)

Balance at Nov. 01, 2015

$ 666

526,402

130,060

(10,573)

115,511

762,066

Balance (in shares) at Nov. 01, 2015

66,602

Net income

$ 0

46,200

9,476

55,676

^[1],[2]

Other comprehensive income (loss)

2,902

2,972

5,874

Sales of common stock through employee stock option and purchase plan

$ 6

3,441

3,447

Sales of common stock through employee stock option and purchase plan (in shares)

618

Restricted stock awards vesting and expense

$ 2

1,190

1,192

Restricted stock awards vesting and expense (in shares)

143

Share-based compensation expense

$ 0

2,637

Conversion of debt to common stock

$ 7

7,431

7,438

Conversion of debt to common stock (in shares)

717

Dividends to noncontrolling interests

$ 0

(11,901)

Return of capital to noncontrolling interests

(955)

Repurchase of common stock by subsidiary

(8)

Balance at Oct. 30, 2016

$ 681

541,093

176,260

(7,671)

115,111

825,474

Balance (in shares) at Oct. 30, 2016

68,080

Net income

$ 0

13,130

8,159

21,289

Other comprehensive income (loss)

14,562

5,844

20,406

Sales of common stock through employee stock option and purchase plan

$ 5

2,877

2,882

Sales of common stock through employee stock option and purchase plan (in shares)

459

Restricted stock awards vesting and expense

$ 1

1,508

1,509

Restricted stock awards vesting and expense (in shares)

127

Share-based compensation expense

$ 0

2,118

Dividends to noncontrolling interests

(8,383)

Balance at Oct. 29, 2017

$ 687

$ 547,596

$ 189,390

$ 6,891

$ 120,731

$ 865,295

Balance (in shares) at Oct. 29, 2017

68,666

[1]	Includes $8.8 million gain on sale of investment in a foreign entity.
[2]	Includes tax benefits in Taiwan of $4.8 million primarily related to the recognition of prior period tax benefits and other tax positions no longer deemed necessary.

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Oct. 29, 2017

Oct. 30, 2016

Nov. 01, 2015

Cash flows from operating activities:

Net income

$ 21,289

$ 55,676

^[1],[2]

$ 56,859

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of property, plant and equipment

81,699

77,613

75,684

Amortization of intangible assets

4,874

5,228

6,729

Gains on sale of investments

(8,940)

Share-based compensation

3,627

3,827

3,689

Deferred income taxes

1,633

(3,816)

3,401

Changes in assets, liabilities, and other:

Accounts receivable

(9,625)

18,807

(21,815)

Inventories

(602)

2,268

(2,893)

Other current assets

1,127

7,936

(2,557)

Accounts payable, accrued liabilities, and other

(7,189)

(36,462)

14,098

Net cash provided by operating activities

96,833

122,137

133,195

Cash flows from investing activities:

Purchases of property, plant and equipment

(91,965)

(50,147)

(104,033)

Acquisition of business

(5,400)

Proceeds from sales of investments

167

101,853

Purchases of intangible assets

(834)

(13)

(771)

Other

(34)

597

499

Net cash (used in) provided by investing activities

(98,066)

52,290

(104,305)

Cash flows from financing activities:

Repayments of long-term borrowings

(5,428)

(57,609)

(9,571)

Dividends paid to noncontrolling interests

(8,298)

(11,890)

Proceeds from share-based arrangements

2,830

3,463

2,651

Return of capital to noncontrolling interests

(966)

Other

(32)

(20)

(179)

Net cash used in financing activities

(10,928)

(67,022)

(7,099)

Effects of exchange rate changes on cash and cash equivalents

6,108

802

(8,853)

Net (decrease) increase in cash and cash equivalents

(6,053)

108,207

12,938

Cash and cash equivalents at beginning of year

314,074

205,867

192,929

Cash and cash equivalents at end of year

308,021

314,074

205,867

Supplemental disclosure of non-cash information:

Accrual for property, plant and equipment purchased during year

2,767

7,866

25,858

Conversion of debt to common stock

$ 0

$ 7,439

$ 0

[1]	Includes $8.8 million gain on sale of investment in a foreign entity.
[2]	Includes tax benefits in Taiwan of $4.8 million primarily related to the recognition of prior period tax benefits and other tax positions no longer deemed necessary.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Oct. 29, 2017

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Photronics, Inc. and its subsidiaries ("Photronics", the "Company", “we”, “our”, or “us”) is one of the world's leading manufacturers of photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits. Photomasks are a key element in the manufacture of semiconductors and flat panel displays ("FPDs"), and are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel display substrates during the fabrication of integrated circuits ("ICs" or semiconductors) and a variety of FPDs and, to a lesser extent, other types of electrical and optical components. The Company currently operates principally from nine manufacturing facilities; two of which are located in Europe, three in Taiwan, one in Korea, and three in the United States. We have announced plans to construct two manufacturing facilities in China. See Note 19 for additional information.

Consolidation

The accompanying consolidated financial statements include the accounts of Photronics, Inc. and majority-owned subsidiaries that it controls. All intercompany balances and transactions have been eliminated in consolidation.

Estimates and Assumptions

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.

Fiscal Year

Our fiscal year ends on the Sunday closest to October thirty-first, and, as a result, a 53-week year occurs every 5 to 6 years. Fiscal years 2017, 2016 and 2015 each included 52 weeks.

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid investments purchased with an original maturity of 3 months or less. The carrying values of cash equivalents approximate their fair values, due to the short-term maturities of these instruments.

Accounts Receivable and Allowance for Doubtful Accounts

We generally record our trade accounts receivable at their billed amounts. All outstanding past due customer invoices are reviewed during and at the end of every reporting period for collectability. When, in the judgment of management, a loss on the collection of a customer invoice is probable, the amount is charged to expense and credited to the allowance for doubtful accounts. When the amount is determined to be uncollectible, the amount is charged to the allowance for doubtful accounts, and the related receivable is eliminated.

Inventories

Inventories are stated at the lower of cost, determined under the first-in, first-out (“FIFO”) method, or market. Presented below are the components of inventory at the balance sheet dates:

	October 29 2017		October 30, 2016

Finished goods	$	664	$	142
Work in process		2,957		2,987
Raw materials		20,082		18,952
	$	23,703	$	22,081

Property, Plant and Equipment

Property, plant and equipment, except as explained below under "Impairment of Long-Lived Assets," is stated at cost less accumulated depreciation and amortization. Repairs and maintenance, as well as renewals and replacements of a routine nature, are charged to operations as incurred, while those that improve, or extend the lives of, existing assets are capitalized. Upon sale or other disposition, the cost of the asset and its related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in earnings.

Depreciation and amortization, substantially all of which are included in cost of goods sold, are computed using the straight-line method over the estimated useful lives of the related assets. Buildings and improvements are depreciated over 15 to 40 years, machinery and equipment over 3 to 10 years, and furniture, fixtures and office equipment over 3 to 5 years. Leasehold improvements are amortized over the life of the lease or the estimated useful life of the improvement, whichever is less. We employ judgment and assumptions when we establish estimated useful lives and depreciation periods, as well as when we periodically review property, plant and equipment for any potential impairment in carrying values, whenever events such as a significant industry downturn, plant closures, technological obsolescence, or other change in circumstances indicate that their carrying amounts may not be recoverable.

Intangible Assets

Intangible assets consist primarily of a technology license agreement and acquisition-related intangibles. These assets, except as explained below, are stated at fair value as of the date acquired, less accumulated amortization. Amortization is calculated based on the estimated useful lives of the assets, which range from 3 to 15 years, using the straight-line method or another method that more fairly represents the utilization of the assets.

We periodically evaluate the remaining useful lives of our intangible assets to determine whether events or circumstances warrant a revision to the remaining periods of amortization. In the event that the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over that revised remaining useful life. If it is determined that an intangible asset has an indefinite useful life, that intangible asset would be subject to impairment testing annually or whenever events or circumstances indicate that its carrying value may not, based on future undiscounted cash flows or market factors, be recoverable; and an impairment loss would be recorded in the period where the impairment determination is made. The amount of the impairment loss recorded would be based on the fair value of the intangible asset at the measurement date.

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determinations of recoverability are based upon our judgment and estimates of undiscounted future cash flows resulting from the use of the assets and their eventual disposition. Measurement of an impairment loss for long-lived assets that we expect to hold and use is based on the fair value of the assets determined using a market or income approach compared to the carrying value of the asset. The carrying values of assets determined to be impaired are reduced to their estimated fair values.

Business Combinations

When acquiring other businesses, or participating in mergers or joint ventures in which we are deemed to be the acquirer, we generally recognize identifiable assets acquired, liabilities assumed and any noncontrolling interests at their acquisition date fair values, separately from any goodwill that may be required to be recognized. Goodwill, when recognizable, would be measured as the excess amount of any consideration transferred, which is generally measured at fair value, over the acquisition date fair values of the identifiable assets acquired and liabilities assumed.

Accounting for such transactions requires us to make significant assumptions and estimates and, although we believe any estimates and assumptions we make to be reasonable and appropriate at the time they are made, unanticipated events and circumstances may arise that affect their accuracy, which may cause actual results to differ from those we estimated. When required, we will adjust the values of the assets acquired and liabilities assumed against the acquisition gain or goodwill, as initially recorded, for a period of up to one year after the transaction.

Costs incurred to effect a merger or acquisition, such as legal, accounting, valuation and other third party costs, as well as internal general and administrative costs incurred are charged to expense in the periods incurred. Costs incurred to issue any debt and equity securities are recognized in accordance with other applicable generally accepted accounting principles.

Investments in Joint Ventures

The financial results of investments in joint ventures of which we have a controlling financial interest are included in our consolidated financial statements. Investments in joint ventures over which we have the ability to exercise significant influence and that, in general, are at least 20 percent owned are accounted for under the equity method. An impairment loss would be recognized whenever a decrease in the fair value of such an investment below its carrying amount is determined to be other than temporary. In judging “other than temporary,” we would consider the length of time and the extent to which the fair value of the investment has been less than the carrying amount of the investment, the near-term and longer-term operating and financial prospects of the investee, and our longer-term intent of retaining our investment in the investee.

Variable Interest Entities

We account for the investments we make in certain legal entities in which equity investors do not have 1) sufficient equity at risk for the legal entity to finance its activities without additional subordinated financial support or, 2) as a group, the holders of the equity investment at risk do not have either the power, through voting or similar rights, to direct the activities of the legal entity that most significantly impact the entity’s economic performance or, 3) the obligation to absorb the expected losses of the legal entity or the right to receive expected residual returns of the legal entity as “variable interest entities”, or “VIEs”.

We would consolidate the results of any such entity in which we determined that we have a controlling financial interest. We would have a “controlling financial interest” in such an entity when we have both the power to direct the activities that most significantly affect the VIE’s economic performance and the obligation to absorb the losses of, or right to receive the benefits from, the VIE that could be potentially significant to the VIE. On a quarterly basis, we would reassess whether we have a controlling financial interest in any investments we have in these certain legal entities.

We account for investments we make in VIEs in which we have determined that we do not have a controlling financial interest but have a significant influence over, and hold at least a 20 percent ownership interest in, using the equity method. Any such investment not meeting the parameters to be accounted for under the equity method would be accounted for using the cost method, unless the investment had a readily determinable fair value, at which value it would then be reported.

Income Taxes

The income tax provision is computed on the basis of the various tax jurisdictions’ income or loss before income taxes. Deferred income taxes reflect the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and their amounts used for income tax purposes, as well as the tax effects of net operating losses and tax credit carryforwards. We use judgment and make assumptions to determine if valuation allowances for deferred income tax assets are required, if their realization is not more likely than not, by considering future market growth, operating forecasts, future taxable income, and the mix of earnings among the tax jurisdictions in which we operate. Accordingly, income taxes charged against earnings may have been impacted by changes in the valuation allowances.

We consider income taxes in each of the tax jurisdictions in which we operate in order to determine our effective income tax rate. Our current income tax expense is thus identified, and temporary differences resulting from differing treatments of items for tax and financial reporting purposes are assessed. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets.

We account for uncertain tax positions by recording a liability for unrecognized tax benefits resulting from uncertain tax positions taken, or expected to be taken, in our tax returns. We include any applicable interest and penalties related to uncertain tax positions in our income tax provision.

Earnings Per Share

Basic earnings per share (“EPS”) is based on the weighted-average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution that could occur if certain share-based payment awards or financial instruments were exercised, earned or converted.

Share-Based Compensation

We recognize share-based compensation expense over the service period that the awards are expected to vest. Share-based compensation expense includes the estimated effects of forfeitures, which are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized in the period of change, and will impact the amount of expense to be recognized in future periods. Determining the appropriate option pricing model, calculating the grant date fair value of share-based awards and estimating forfeiture rates requires considerable judgment, including estimations of stock price volatility and the expected term of options granted.

We use the Black-Scholes option pricing model to value employee stock options. We estimate stock price volatility based on daily averages of our common stock’s historical volatility over a term approximately equal to the estimated time period the grant will remain outstanding. The expected term of options and forfeiture rate assumptions are derived from historical data.

Research and Development

Research and development costs are expensed as incurred, and consist primarily of development efforts related to high-end process technologies for advanced sub-wavelength reticle solutions for IC photomask technologies.

Foreign Currency Translation

Our non-US subsidiaries maintain their accounts in their respective local currencies. Assets and liabilities of such subsidiaries are translated to U.S. dollars at year-end exchange rates. Income and expenses are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments are accumulated and reported in accumulated other comprehensive income, a component of equity. The effects of changes in exchange rates on foreign currency transactions, which are included in interest income and other income (expense) were a net gain/(loss) of $(5.2) million, $(0.3) million and $2.5 million in fiscal years 2017, 2016 and 2015, respectively.

Noncontrolling Interests

Noncontrolling interests represents the minority shareholders’ proportionate share in the equity of the Company’s two majority-owned subsidiaries, Photronics DNP Mask Corporation (“PDMC”) in Taiwan, of which noncontrolling interests owned 49.99% as of October 29, 2017 and October 30, 2016, and PK Ltd. (“PKL”) in Korea of which noncontrolling shareholders owned approximately 0.3% as of October 29, 2017 and October 30, 2016.

Revenue Recognition

We recognize revenue when there is persuasive evidence that an arrangement exists, delivery has occurred, the sales price of the transaction is fixed or determinable, and collectability is reasonably assured. Delivery is determined by the shipping terms of the individual revenue transactions. For transactions with FOB destination or similar shipping terms, delivery occurs when our product reaches its destination and is received by the customer. For transactions with FOB shipping point terms, delivery occurs when our product is received by the common carrier. We use judgment when estimating the effect on revenue of discounts and sales incentives, both of which are accrued when the related revenue is recognized. Our revenue is reported net of any sales taxes billed to customers.

Product Warranty

For a 30-day period, we warrant that items sold will conform to customer specifications. However, our liability is limited to the repair or replacement of the photomasks at our sole option. We inspect photomasks for conformity to customer specifications prior to shipment. Accordingly, customer claims related to items under warranty have historically been insignificant. Our warranty policy includes accepting returns of products with defects, or products that have not been produced to precise customer specifications.

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Oct. 29, 2017

PROPERTY, PLANT AND EQUIPMENT [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 2 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consists of the following:

	October 29, 2017		October 30, 2016

Land	$	9,959	$	8,036
Buildings and improvements		125,290		121,873
Machinery and equipment		1,547,870		1,475,755
Leasehold improvements		20,050		19,224
Furniture, fixtures and office equipment		12,989		12,700
Construction in progress		72,045		23,961
		1,788,203		1,661,549
Less: Accumulated depreciation and amortization		1,253,006		1,155,115
	$	535,197	$	506,434

Property under capital leases is included in above property, plant and equipment as follows:

	October 29, 2017		October 30, 2016

Machinery and equipment	$	34,917	$	34,917
Less accumulated amortization		13,843		10,352
	$	21,074	$	24,565

During the three month period ended January 29, 2017, we acquired a business comprised of manufacturing assets and certain intellectual property that enables us to expand our manufacturing capability, primarily in large area masks for IC, for approximately $5.7 million, including a $0.3 million holdback payable one year from the acquisition date. The transaction was accounted for in accordance with ASC 805, “Business Combinations”, with substantially all of the purchase price being allocated to long-lived assets that are being depreciated over five years.

During the three month period ended January 29, 2017, we entered into a noncash transaction with a customer which resulted in the acquisition of equipment with a fair value of approximately $9.0 million in fiscal year 2017.

INTANGIBLE ASSETS

12 Months Ended

Oct. 29, 2017

INTANGIBLE ASSETS [Abstract]

INTANGIBLE ASSETS

NOTE 3 - INTANGIBLE ASSETS

Amortization expense of the Company’s finite-lived intangible assets was $4.9 million, $4.8 million and $6.0 million in fiscal years 2017, 2016 and 2015, respectively.

Intangible assets consist of:

As of October 29, 2017	Gross Amount		Accumulated Amortization			Net Amount
Technology license agreement	$	59,616	$	(45,374	)	$	14,242
Customer relationships		9,375		(7,793	)		1,582
Software and other		8,195		(6,897	)		1,298
	$	77,186	$	(60,064	)	$	17,122

As of October 30, 2016

Technology license agreement	$	59,616	$	(41,400	)	$	18,216
Customer relationships		8,657		(7,522	)		1,135
Software and other		6,444		(5,941	)		503
	$	74,717	$	(54,863	)	$	19,854

The weighted-average amortization period of intangible assets acquired in fiscal year 2017 was 4.5 years, primarily comprised of acquired customer relationships and technology that has an amortization period of five years, and software that has an amortization period of three years. The weighted-average amortization period of intangible assets acquired in fiscal year 2016, which is comprised of software, is three years.

Intangible asset amortization over the next five years is estimated to be as follows:

Fiscal Years:

2018	$	4,742
2019		4,564
2020		4,510
2021		2,747
2022		128

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC.

12 Months Ended

Oct. 29, 2017

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC. [Abstract]

JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC.

NOTE 4- JOINT VENTURE, TECHNOLOGY LICENSE AND OTHER AGREEMENTS WITH MICRON TECHNOLOGY, INC.

In May 2006, Photronics and Micron Technology, Inc. ("Micron") entered into the MP Mask joint venture (“MP Mask”), which developed and produced photomasks for leading-edge and advanced next generation semiconductors. At the time of the formation of the joint venture, we also entered into an agreement to license photomask technology developed by Micron and certain supply agreements. In May 2016, we sold our investment in MP Mask to Micron for $93.1 million and recorded a gain on the sale of $0.1 million, which is included in our 2016 consolidated statement of income in interest income and other income (expense). On that same date a supply agreement commenced between Photronics and Micron, which provided that we would be the majority outsourced supplier of Micron’s photomasks and related services. The supply agreement had a one year term and expired in May 2017. However, we have the unlimited rights to use technology under the prior technology license agreement.

This joint venture was a variable interest entity ("VIE") (as that term is defined in ASC 810) because all costs of the joint venture were passed on to Photronics and Micron through purchase agreements they had entered into with the joint venture, and it was dependent upon Photronics and Micron for any additional cash requirements. On a quarterly basis we reassessed whether our interest in MP Mask gave us a controlling financial interest in this VIE. The purpose of this quarterly reassessment was to identify the primary beneficiary (which is defined in ASC 810 as the entity that consolidates a VIE) of the VIE. As a result of the reassessments in fiscal year 2016, we determined that Micron remained the primary beneficiary of the VIE, by virtue of its tie-breaking voting rights within MP Mask’s Board of Managers, thereby having given it the power to direct the activities of MP Mask that most significantly impacted its economic performance, including its decision making authority in the ordinary course of business and its purchase of the majority of products produced by the VIE.

We utilized MP Mask for both high-end IC photomask production and research and development purposes. MP Mask charged its variable interest holders based on their actual usage of its facility and charged separately for any research and development activities it engaged in at the requests of its owners.

MP Mask was governed by a Board of Managers appointed by Micron and Photronics. Since MP Mask's inception, Micron, as a result of its majority ownership, had held majority voting power on the Board of Managers. The voting power held by each party was subject to change as ownership interests changed. Under the MP Mask joint venture operating agreement, we may have been required to make additional capital contributions to MP Mask up to the maximum amount defined in the operating agreement. However, had the Board of Managers determined that further additional funding was required, MP Mask would have pursued its own financing. If MP Mask was unable to obtain its own financing, it may have requested additional capital contributions from us. Had we chosen not to make a requested contribution to MP Mask, our ownership percentage may have been reduced. MP Mask did not request, and we did not make, any contributions to MP Mask in fiscal year 2016, and we did not receive any distributions (other than upon the sale of our investment to Micron in fiscal year 2016) from MP Mask during 2016.

We recorded losses from operations from our investment in MP Mask of $0.1 million in fiscal years 2016 and 2015. Income (loss) from MP Mask is included in Interest and other income, net, in our consolidated statements of income.

In fiscal 2016, we recorded $0.4 million of commission revenue earned under the supply agreements with Micron and MP Mask, and amortization of $0.1 million of the related supply agreement intangible asset. In 2016, we also recorded cost of goods sold in the amount of $5.7 million for photomasks produced by MP Mask for Photronics customers, and incurred expenses of $0.5 million for research and development activities and other goods and services purchased from MP Mask by Photronics.

In fiscal 2015, we recorded $0.8 million of commission revenue earned under the supply agreements with Micron and MP Mask, and amortization of $0.2 million of the related supply agreement intangible asset. In 2015, we also recorded cost of goods sold in the amount of $4.8 million for photomasks produced by MP Mask for Photronics customers, and incurred expenses of $3.1 million for research and development activities and other goods and services purchased from MP Mask by Photronics.

Summarized financial information of MP Mask is presented below. The financial results of 2016 are through May 5, 2016, the date of the sale of the Joint Venture.

	Fiscal Year
	2016		2015

Revenue	$	49,626	$	96,068
Gross profit		2,736		1,215
Net loss		-		(151	)

LONG-TERM BORROWINGS

12 Months Ended

Oct. 29, 2017

LONG-TERM BORROWINGS [Abstract]

LONG-TERM BORROWINGS

NOTE 6 - LONG-TERM BORROWINGS

Long-term borrowings consist of the following:

	October 29, 2017		October 30, 2016

3.25% convertible senior notes due in April 2019	$	57,337	$	57,221

2.77% capital lease obligation payable through July 2018		4,639		10,067

		61,976		67,288
Less current portion		4,639		5,428
	$	57,337	$	61,860

In April 2016, $57.5 million of our senior convertible notes matured. We repaid $50.1 million to noteholders and issued approximately 0.7 million shares to noteholders that elected to convert their notes to common stock. The notes were exchanged at the rate of approximately 96 shares per $1,000 note principle, equivalent to a conversion rate of $10.37 per share.

In January 2015, we privately exchanged $57.5 million in aggregate principal amount of our 3.25% convertible senior notes with a maturity date of April 1, 2016, for new 3.25% convertible senior notes with an aggregate principal amount of $57.5 million with a maturity date of April 1, 2019. The conversion rate of the new notes is the same as that of the exchanged notes, which were issued in March 2011 with a conversion rate of approximately 96 shares of common stock per $1,000 note principal, equivalent to a conversion price of $10.37 per share of common stock, and is subject to adjustment upon the occurrence of certain events, which are described in the indenture dated January 22, 2015. Note holders may convert each $1,000 principal amount of notes at any time prior to the close of business on the second scheduled trading day immediately preceding April 1, 2019, and we are not required to redeem the notes prior to their maturity date. Interest on the notes accrues in arrears, and is paid semiannually through the notes’ maturity date.

Our credit facility, which expires in December 2018, has a $50 million limit with an expansion capacity to $75 million, and is secured by substantially all of our assets located in the United States and common stock we own in certain of our foreign subsidiaries. The credit facility stipulates that we may not pay cash dividends on Photronics, Inc. stock, and is subject to a minimum interest coverage ratio, total leverage ratio and minimum unrestricted cash balance financial covenants, all of which we were in compliance with at October 29, 2017. We had no outstanding borrowings against the credit facility at October 29, 2017, and $50 million was available for borrowing. The interest rate on the credit facility (2.49% at October 29, 2017) is based on our total leverage ratio at LIBOR plus a spread, as defined in the credit facility. In May 2017, the credit facility was amended to add certain covenants for our planned IC joint venture and FPD manufacturing facility, both of which are in China. See Note 19 for additional discussion of these new investments.

In August 2013, a $26.4 million principal amount, five year capital lease commenced to fund the purchase of a high-end lithography tool. Payments under the capital lease, which bears interest at 2.77%, are $0.5 million per month through July 2018. The lease is subject to a cross default with cross acceleration provision related to certain nonfinancial covenants incorporated into our credit facility. As of October 29, 2017, the total amount payable through August 2018 (the end of the lease term) was $4.7 million, of which $4.6 million represented principal and $0.1 million represented interest.

Interest payments were $2.1 million, $3.2 million, and $4.4 million in fiscal years 2017, 2016 and 2015.

Adoption of New Accounting Standard

We adopted Accounting Standards Update (“ASU”) 2015-03 – “Simplifying the Presentation of Debt Issuance Costs” in the first quarter of fiscal year 2017. This ASU requires debt issuance costs related to recognized debt liabilities to be presented in the balance sheet as a direct deduction from that debt liability, consistent with the presentation of a debt discount. We adopted this ASU on a retrospective basis, as a result of which our prior year financial statements and related notes have been adjusted, as necessary, to show its effects on those periods. The effect of adopting ASU 2015-03 on the other assets and long-term borrowing line items in the fiscal 2016 balance sheet is presented below.

Classification	Previously Reported		Change Due to Adoption			Retrospectively Adjusted

Other assets	$	4,071	$	(279	)	$	3,792
Long-term borrowings		62,139		(279	)		61,860

OPERATING LEASES

12 Months Ended

Oct. 29, 2017

OPERATING LEASES [Abstract]

OPERATING LEASES

NOTE 7 - OPERATING LEASES

We lease various real estate and equipment under non-cancelable operating leases, for which rent expense was $3.0 million in 2017 and $2.8 million in each of fiscal years 2016 and 2015.

At October 29, 2017, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year were as follows:

2018	$	1,051
2019		684
2020		439
2021		380
2022		371
Thereafter		1,000
	$	3,925

See Note 6 for disclosures related to capital lease obligations.

SHARE-BASED COMPENSATION

12 Months Ended

Oct. 29, 2017

SHARE-BASED COMPENSATION [Abstract]

SHARE-BASED COMPENSATION

NOTE 8 – SHARE-BASED COMPENSATION

In March 2016, shareholders approved a new equity incentive compensation plan (“the Plan”), under which incentive stock options, non-qualified stock options, stock grants, stock-based awards, restricted stock, restricted stock units, stock appreciation rights, performance units, performance stock, and other stock or cash awards may be granted. Shares to be issued under the Plan may be authorized and unissued shares, issued shares that have been reacquired by us (in the open-market or in private transactions), shares that are being held in the treasury, or a combination thereof. The maximum number of shares of common stock approved that may be issued under the Plan is four million shares. Awards may be granted to officers, employees, directors, consultants, advisors, and independent contractors of Photronics or its subsidiaries. In the event of a change in control (as defined in the Plan), the vesting of awards may be accelerated. The Plan, aspects of which are more fully described below, prohibits further awards from being issued under prior plans. We incurred total share-based compensation expenses of $3.6 million, $3.8 million, and $3.7 million in fiscal years 2017, 2016, and 2015, respectively. No share-based compensation cost was capitalized as part of an asset and no related income tax benefits were recorded during the fiscal years presented.

Stock Options

Option awards generally vest in one-to-four years, and have a ten year contractual term. All incentive and non-qualified stock option grants must 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 the closing price of our common stock on the date of grant, and are calculated using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility of our common stock. We use historical option exercise behavior and employee termination data to estimate expected term, which represents the period of time that the options granted are expected to remain outstanding. The risk-free rate of return for the estimated term of the option is based on the U.S. Treasury yield curve in effect at the date of grant.

The weighted-average inputs and risk-free rate of return ranges used to calculate the grant date fair values of stock options issued during fiscal years 2017, 2016 and 2015 are presented in the following table:

	Year Ended
	October 29, 2017			October 30, 2016			November 1, 2015

Expected volatility		32.2	%		48.4	%		53.7	%

Risk-free rate of return		1.9 – 2.0	%		1.2 – 1.7	%		1.3 – 1.6	%

Dividend yield		0.0	%		0.0	%		0.0	%

Expected term	5.0 years			5.1 years			4.7 years

The table below presents a summary of stock options activity during fiscal year 2017 and information on stock options outstanding at October 29, 2017.

Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Aggregate Intrinsic Value

Outstanding at October 31, 2016		3,535,335		$	7.59
Granted		344,750			11.33
Exercised		(401,750	)		6.09
Cancelled and forfeited		(133,100	)		11.17
Outstanding at October 29, 2017		3,345,235		$	8.01	5.8 years		$	7,108
Exercisable at October 29, 2017		2,142,094		$	6.60	4.6 years		$	6,661
Vested and expected to vest as of October 29, 2017		3,180,991		$	7.87	5.7 years		$	7,052

The weighted-average grant date fair value of options granted during fiscal years 2017, 2016 and 2015 were $3.59, $4.51and $3.81, respectively. The total intrinsic value of options exercised during fiscal years 2017, 2016 and 2015 was $1.9 million, $3.5 million and $2.0 million, respectively.

We received cash from option exercises of $2.4 million, $3.1 million and $2.2 million in fiscal years 2017, 2016 and 2015, respectively. As of October 29, 2017, the total unrecognized compensation cost of unvested option awards was approximately $2.8 million. That cost is expected to be recognized over a weighted-average amortization period of 2.0 years.

Restricted Stock

We periodically grant restricted stock awards, the restrictions on which typically lapse over a service period of one-to-four years. The fair value of the awards are determined and fixed on the grant date based on our stock price. The weighted-average grant date fair values of restricted stock awards issued during fiscal years 2017, 2016 and 2015 were $10.94, $12.13 and $8.28, respectively. The total fair value of awards for which restrictions lapsed was $1.2 million, $1.7 million and $1.4 million during fiscal years 2017, 2016 and 2015, respectively. As of October 29, 2017, the total compensation cost for restricted stock awards not yet recognized was approximately $2.6 million. That cost is expected to be recognized over a weighted-average amortization period of 2.9 years.

A summary of restricted stock award activity during fiscal year 2017 and the status of our outstanding restricted stock awards as of October 29, 2017, is presented below:

Restricted Stock	Shares			Weighted-Average Fair Value at Grant Date
Outstanding at October 31, 2016		162,375		$	9.61
Granted		317,750			10.94
Vested		(126,869	)		9.78
Cancelled		(14,075	)		10.89
Outstanding at October 29, 2017		339,181		$	10.74
Vested and expected to vest as of October 29, 2017		302,898		$	10.75

Employee Stock Purchase Plan

Our Employee Stock Purchase Plan ("ESPP") permits employees to purchase Photronics, Inc. common shares at 85% of the lower of the closing market price at the commencement or ending date of the Plan year (which is approximately one year). We recognize the ESPP expense during that same period. As of October 29, 2017, the maximum number of shares of common stock approved by our shareholders to be purchased under the ESPP was 1.5 million shares; approximately 1.4 million shares had been issued through October 29, 2017, and approximately 54,000 shares are subject to outstanding subscriptions. As of October 29, 2017, the total compensation cost related to the ESPP not yet recognized was $0.1 million, which is expected to be recognized in fiscal 2018.

INCOME TAXES

12 Months Ended

Oct. 29, 2017

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 10 - INCOME TAXES

Income before the income tax provisions consists of the following:

	Year Ended
	October 29 2017			October 30, 2016		November 1, 2015

United States	$	(11,544	)	$	6,270	$	6,646
Foreign		38,109			54,204		63,394
	$	26,565		$	60,474	$	70,040

The income tax provisions consist of the following:

	Year Ended
	October 29, 2017			October 30, 2016			November 1, 2015
Current:
Federal	$	173		$	492		$	160
State		(4	)		(2	)		(109	)
Foreign		3,474			8,115			9,729

Deferred:
Federal		-			-			-
State		15			10			7
Foreign		1,618			(3,817	)		3,394
Total	$	5,276		$	4,798		$	13,181

The income tax provisions differ from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes as a result of the following:

	Year Ended
	October 29, 2017			October 30, 2016			November 1, 2015

U.S. federal income tax at statutory rate	$	9,298		$	21,166		$	24,514
Changes in valuation allowances		(3,632	)		(9,516	)		(11,471	)
Distributions from foreign subsidiaries		6,471			3,438			448
Foreign tax rate differentials		(5,230	)		(9,620	)		(4,356	)
Tax credits		(1,925	)		(944	)		(2,729	)
Uncertain tax positions, including reserves, settlements and resolutions		(932	)		134			(175	)
Income tax holiday		(743	)		(507	)		(869	)
Employee stock compensation		512			452			634
Tax on foreign subsidiary earnings		1,712			225			6,589
Other, net		(255	)		(30	)		596
	$	5,276		$	4,798		$	13,181

The effective tax rates differ from the U.S. statutory rate of 35% in fiscal years 2017, 2016 and 2015 primarily due to earnings being taxed at lower statutory rates in foreign jurisdictions, changes in deferred tax asset valuation allowances, including the reversals noted below, together with the benefit of various investment credits in a foreign jurisdiction. In addition, the lower rate in fiscal year 2016 was partially driven by a benefit that resulted from the reversal of a previously recorded undistributed earnings tax liability in a foreign jurisdiction for which we are no longer liable. Two five-year tax holidays in Taiwan, one that expired in 2017 and the other that expires in 2019, reduced foreign taxes by $0.7 million, $0.5 million and $0.2 million in fiscal years 2017, 2016 and 2015, respectively. These tax holidays had no per share effect on our financial results of fiscal years 2017, 2016 and 2015.

The net deferred income tax assets consist of the following:

	As of
	October 29, 2017			October 30, 2016
Deferred income tax assets:
Net operating losses	$	40,942		$	46,158
Reserves not currently deductible		4,196			5,904
Alternative minimum tax credits		3,946			3,772
Tax credit carryforwards		10,037			8,814
Share-based compensation		2,335			1,972
Other		1,503			1,719
		62,959			68,339
Valuation allowances		(25,590	)		(29,315	)
		37,369			39,024
Deferred income tax liabilities:
Undistributed earnings of foreign subsidiaries		(4,335	)		(3,962	)
Property, plant and equipment		(19,280	)		(19,977	)
Other		(322	)		(254	)
		(23,937	)		(24,193	)
Net deferred income tax assets	$	13,432		$	14,831
Reported as:
Deferred income tax assets	$	15,481		$	16,322
Deferred income tax liabilities		(2,049	)		(1,491	)
	$	13,432		$	14,831

We have established a valuation allowance for a portion of our deferred tax assets because we believe, based on the weight of all available evidence, that it is more likely than not that a portion of our net operating loss carryforwards will expire prior to utilization. During fiscal years 2016 and 2015, we determined that sufficient positive evidence existed in certain foreign jurisdictions that it was more likely than not that additional deferred tax assets were realizable and, therefore, we reduced the valuation allowance by $4.3 million and $1.5 million, respectively. In addition, the valuation allowance decreased in fiscal years 2017, 2016 and 2015 as a result of loss utilizations and deferred tax liability changes of $3.7 million, $5.2 million and $9.3 million, respectively.

As of October 29, 2017, we have not provided deferred taxes on $170.6 million of undistributed earnings of non-U.S. subsidiaries, as it is our policy to indefinitely reinvest these earnings in non-U.S. operations. During fiscal year 2017, the permanently invested assertion was partially changed due to changes in circumstances within one of our non-U.S. subsidiary entities, and a U.S. tax liability was recognized for the related undistributed earnings. Should we elect in the future to repatriate the remaining foreign earnings deemed to be indefinitely reinvested, we may incur additional income tax expense on those foreign earnings, the amount of which is not practicable to compute.

The following tables present our available operating loss and credit carryforwards at October 29, 2017, and their related expiration periods:

Operating Loss Carryforwards	Amount		Expiration Periods

Federal	$	86,358		2025-2033

State		214,532		2018-2037

Foreign		15,414		2019-2023

Tax Credit Carryforwards	Amount		Expiration Period

Federal research and development	$	5,580		2019-2037

Federal alternative minimum		3,946	Indefinite

State		5,829		2018-2031

Foreign		667		2022

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:

	Year Ended
	October 29, 2017			October 30, 2016			November 1, 2015

Balance at beginning of year	$	4,606		$	4,029		$	4,993
Additions (reductions) for tax positions in prior years		207			744			(212	)
Additions based on current year tax positions		323			268			318
Settlements		(922	)		(378	)		(720	)
Lapses of statutes of limitations		(830	)		(57	)		(350	)
Balance at end of year	$	3,384		$	4,606		$	4,029

As of October 29, 2017, October 30, 2016 and November 1, 2015, the balance of unrecognized tax benefits includes $3.4 million, $4.6 million and $4.1 million recorded in other liabilities in the consolidated balance sheets that, if recognized, would impact the effective tax rate. Included in these amounts in each of fiscal years 2017, 2016 and 2015 were $0.1 million of interest and penalties. We include any applicable interest and penalties related to uncertain tax positions in our income tax provision. The amounts reflected in the table above for the fiscal years 2017, 2016 and 2015 include settlements of non-U.S. audits.

Although the timing of the expirations of statutes of limitations may be uncertain, as they can be dependent upon the settlement of tax audits, the Company believes that it is reasonably possible that up to $1.4 million of its uncertain tax positions (including accrued interest and penalties, and net of tax benefits) may be resolved over the next twelve months. Resolution of these uncertain tax positions may result from either or both of the lapses of statutes of limitations and tax settlements. The Company is no longer subject to tax authority examinations in the U.S., major foreign, or state tax jurisdictions for years prior to fiscal year 2013.

Income tax payments were $9.3 million, $11.4 million and $4.9 million in fiscal years 2017, 2016 and 2015, respectively. Cash received as refunds of income taxes paid in prior years amounted to $0.1 million, $0.2 million and $0.1 million in fiscal years 2017, 2016 and 2015, respectively.

Currently, Congress is considering various U.S. corporate tax reform bills, which if enacted could have a material impact on various components of the income taxes including but not limited to, valuation allowances, deferred tax assets and liabilities. If the proposed bills are signed into law we expect a reduction in the recorded deferred tax liability related to foreign earnings and an offsetting reduction in deferred tax assets related to U.S. net operating losses. At this time it is not practical to calculate the potential dollar amount of these potential income tax law changes. The Company will continue to evaluate the potential implications as more information becomes available and the changes are enacted.

EARNINGS PER SHARE

12 Months Ended

Oct. 29, 2017

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 11 - EARNINGS PER SHARE

The calculation of basic and diluted earnings per share is presented as follows:

	Year Ended
	October 29, 2017		October 30, 2016		November 1, 2015

Net income attributable to Photronics, Inc. shareholders	$	13,130	$	46,200	$	44,625
Effect of dilutive securities:
Interest expense on convertible notes, net of related tax effects		-		2,938		4,363

Earnings for diluted earnings per share	$	13,130	$	49,138	$	48,988

Weighted-average common shares computations:
Weighted-average common shares used for basic earnings per share		68,436		67,539		66,331
Effect of dilutive securities:
Share-based payment awards		852		974		967
Convertible notes		-		7,841		11,085

Dilutive common shares		852		8,815		12,052

Weighted-average common shares used for diluted earnings per share		69,288		76,354		78,383

Basic earnings per share	$	0.19	$	0.68	$	0.67
Diluted earnings per share	$	0.19	$	0.64	$	0.63

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.

	Year Ended
	October 29, 2017		October 30, 2016		November 1, 2015

Convertible notes		5,542		-		-
Share based payment awards		1,308		1,635		1,641

Total potentially dilutive shares excluded		6,850		1,635		1,641

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

12 Months Ended

Oct. 29, 2017

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION [Abstract]

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

NOTE 13 - GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

We operate as a single operating segment as a manufacturer of photomasks, which are high precision quartz plates containing microscopic images of electronic circuits for use in the fabrication of IC’s and FPDs. Geographic revenues (shown below) are based primarily on where our manufacturing facility is located.

Our 2017, 2016 and 2015 revenue by geographic area and by IC and FPD products, and long-lived assets by geographic area were as follows:

	Year Ended
	October 29, 2017		October 30, 2016		November 1, 2015
Net revenue
Taiwan	$	187,818	$	193,216	$	205,141
Korea		122,165		141,017		147,921
United States		102,040		113,670		132,792
Europe		36,081		33,384		35,792
All other Asia		2,574		2,169		2,560
	$	450,678	$	483,456	$	524,206

IC	$	350,260	$	364,531	$	420,833
FPD		100,418		118,925		103,373
	$	450,678	$	483,456	$	524,206

	As of
	October 29, 2017		October 30, 2016		November 1, 2015
Long-lived assets
Taiwan	$	186,192	$	176,644	$	185,087
United States		180,095		173,658		184,282
Korea		147,265		146,515		167,618
Europe		13,372		9,617		10,287
All other Asia		8,273		-		10
	$	535,197	$	506,434	$	547,284

One customer accounted for 16%, 19% and 18% of our revenue in fiscal years 2017, 2016 and 2015, respectively, and another customer accounted for 16%, 17%, and 15% of our revenue in fiscal years 2017, 2016 and 2015, respectively.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT

12 Months Ended

Oct. 29, 2017

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract]

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT

NOTE 14 - 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 years ended October 29, 2017 and October 30, 2016:

	Year Ended October 29, 2017
	Foreign Currency Translation Adjustments			Amortization of Cash Flow Hedge			Other			Total

Balance at October 31, 2016	$	(6,567	)	$	(177	)	$	(927	)	$	(7,671	)
Other comprehensive income before reclassifications		19,799			-			478			20,277
Amounts reclassified from other accumulated comprehensive income		-			129			-			129
Net current period other comprehensive income		19,799			129			478			20,406
Less: other comprehensive income attributable to noncontrolling interests		(5,605	)		-			(239	)		(5,844	)
Balance at October 29, 2017	$	7,627		$	(48	)	$	(688	)	$	6,891

	Year Ended October 30, 2016
	Foreign Currency Translation Adjustments			Amortization of Cash Flow Hedge			Other			Total

Balance at November 1, 2015	$	(9,634	)	$	(306	)	$	(633	)	$	(10,573	)
Other comprehensive income (loss) before reclassifications		6,334			-			(589	)		5,745
Amounts reclassified from other accumulated comprehensive income		-			129			-			129
Net current period other comprehensive income (loss)		6,334			129			(589	)		5,874
Less: other comprehensive (income) loss attributable to noncontrolling interests		(3,267	)		-			295			(2,972	)
Balance at October 30, 2016	$	(6,567	)	$	(177	)	$	(927	)	$	(7,671	)

Amortization of the cash flow hedge is included in cost of goods sold in the consolidated statements of income in all periods presented.

CONCENTRATIONS OF CREDIT RISK	12 Months Ended
CONCENTRATIONS OF CREDIT RISK	Oct. 29, 2017
CONCENTRATIONS OF CREDIT RISK [Abstract]
CONCENTRATIONS OF CREDIT RISK	NOTE 15 – CONCENTRATIONS OF CREDIT RISK Financial instruments that potentially subject us to credit risk principally consist of trade accounts receivables and short-term cash investments. We sell our products primarily to semiconductor and FPD manufacturers in Asia, North America, and Europe. We believe that the concentration of credit risk in our trade receivables is substantially mitigated by our ongoing credit evaluation process and relatively short collection terms. We do not generally require collateral from customers. We establish an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Our cash and cash equivalents are deposited in several financial institutions, including institutions located within all of the countries in which we manufacture photomasks. Portions of deposits in some of these institutions may exceed the amount of insurance available for such deposits at these institutions. As these deposits are generally redeemable upon demand and are held by high quality, reputable institutions, we consider them to bear minimal credit risk. We further mitigate credit risks related to our cash and cash equivalents by spreading such risk among a number of institutions.

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Oct. 29, 2017
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 16 - RELATED PARTY TRANSACTIONS Our executive chairman of the board of directors is also a director of an entity that provided secure managed information technology services to Photronics in fiscal years 2016 and 2015. Another member of our board of directors was the chief executive officer and chairman of the board of this entity. We had contracted with this entity since 2002 for services it provided to all of our facilities. In fiscal years 2016 and 2015, we incurred expenses for services provided by this entity of $0.2 million and $1.0 million, respectively. An officer of one of our foreign subsidiaries is related to an individual in a position of authority at one of our largest customers. We recorded revenue from this customer of $73.6 million, $80.5 million, and $77.8 million in fiscal years 2017, 2016 and 2015, respectively. At October 29, 2017 and October 30, 2016, we had accounts receivable of $24.3 million and $23.2 million, respectively, from this customer. In July 2016, we entered into a contract for information technology services with a parent entity for which a member of our board of directors serves as the executive chairman of the board and director of a wholly owned subsidiary of that entity. During fiscal years 2017 and 2016, we incurred expenses of $0.5 million and $0.3 million, respectively with the parent entity, and had payables outstanding to the parent entity of $0.2 million at October 30, 2016. We purchase photomask blanks from an entity of which a former officer of ours is a significant shareholder. The Company purchased $4.5 million of photomask blanks from this entity during the period in 2017 when the former officer was employed by us, and $16.3 million and $20.2 million in 2016 and 2015, respectively, for which the amount owed to this entity was $2.7 million at October 30, 2016 (the last reported date at which this entity was a related party to Photronics). We believe that the terms of our transactions with the related parties described above were negotiated at arm’s length and were no less favorable to us than terms we could have obtained from unrelated third parties. See Note 4 for additional related party transactions.

FAIR VALUE MEASUREMENTS

12 Months Ended

Oct. 29, 2017

FAIR VALUE MEASUREMENTS [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 17 - FAIR VALUE MEASUREMENTS

The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices (unadjusted) in active markets for identical securities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly; and Level 3, defined as unobservable inputs that are not corroborated by market data.

We did not have any assets or liabilities measured at fair value, on a recurring or a nonrecurring basis, at October 29, 2017 or October 30, 2016.

Fair Value of Other Financial Instruments

The fair values of our cash and cash equivalents (Level 1 measurements), accounts receivable, accounts payable, and certain other current assets and current liabilities (Level 2 measurements) approximate their carrying value due to their short-term maturities. The fair value of our convertible senior notes is a Level 2 measurement, as it was determined using inputs that were either observable market data or could be derived from or corroborated with observable market data. These inputs included our stock price and interest rates offered on debt issued by entities with credit ratings similar to ours.

The table below presents the fair and carrying values of our convertible senior notes at October 29, 2017 and October 30, 2016.

	October 29, 2017				October 30, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value

3.25% convertible senior notes due 2019	$	67,396	$	57,337	$	68,230	$	57,221

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

ACCRUED LIABILITIES	12 Months Ended
ACCRUED LIABILITIES	Oct. 29, 2017
ACCRUED LIABILITIES [Abstract]
ACCRUED LIABILITIES	NOTE 5 - ACCRUED LIABILITIES Accrued liabilities at October 29, 2017 included salaries, wages and related benefits of $10.0 million, unearned revenue of $5.7 million, value added and other taxes of $3.1 million, and other accruals of $7.5 million. At October 30, 2016, accrued liabilities included salaries, wages and related benefits of $8.2 million, income taxes of $6.2 million, and other accruals of $9.8 million.

EMPLOYEE RETIREMENT PLANS	12 Months Ended
EMPLOYEE RETIREMENT PLANS	Oct. 29, 2017
EMPLOYEE RETIREMENT PLANS [Abstract]
EMPLOYEE RETIREMENT PLANS	NOTE 9- EMPLOYEE RETIREMENT PLANS We maintain a 401(k) Savings and Profit Sharing Plan ("401(k) Plan") which covers all full and certain part time U.S. employees who have completed three months of service and are 18 years of age or older. Under the terms of the 401(k) Plan, employees may contribute up to 50% of their salary, subject to certain maximum amounts, which will be matched by the Company at 50% of the employee's contributions that are not in excess of 4% of the employee's compensation. Employee and employer contributions vest immediately upon contribution. The total employer contributions for all of our defined contribution plans were $0.6 million, $0.6 million and $0.7 million in fiscal years 2017, 2016, and 2015, respectively.

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Oct. 29, 2017
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES At October 29, 2017, we had outstanding purchase commitments of $168 million, which included $162 million related to capital expenditures, and had recorded liabilities for the purchase of equipment of $3 million. See Notes 7 and 19, respectively, for information on our operating lease commitments and our plans to construct two facilities in China. We are subject to various claims that arise in the ordinary course of business. We believe such claims, individually and in the aggregate, will not have a material effect on our consolidated financial statements.

GAINS ON SALE OF INVESTMENTS	12 Months Ended
GAINS ON SALE OF INVESTMENTS	Oct. 29, 2017
GAIN ON SALE OF INVESTMENTS [Abstract]
GAINS ON SALE OF INVESTMENTS	NOTE 18 – GAINS ON SALE OF INVESTMENTS We had a minority interest in a foreign entity. In fiscal year 2016, we sold this investment and recognized a gain of $8.8 million. In addition, as discussed in Note 4, we sold our investment in the MP Mask joint venture in fiscal year 2016.