Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
May 01, 2022 | Jun. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | May 1, 2022 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity Registrant Name | PHOTRONICS, INC. | |
Entity Central Index Key | 0000810136 | |
Entity Incorporation, State or Country Code | CT | |
Entity File Number | 0-15451 | |
Entity Tax Identification Number | 06-0854886 | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,601,263 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 01, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 329,282 | $ 276,670 |
Accounts receivable, net of allowance of $1,107 in 2022 and $1,218 in 2021 | 190,259 | 174,447 |
Inventories | 57,940 | 55,249 |
Other current assets | 52,864 | 44,250 |
Total current assets | 630,345 | 550,616 |
Property, plant and equipment, net | 659,881 | 696,553 |
Deferred income taxes | 23,731 | 24,353 |
Other assets | 17,930 | 22,680 |
Total assets | 1,331,887 | 1,294,202 |
Current liabilities: | ||
Current portion of long-term debt | 12,410 | 22,248 |
Accounts payable | 78,341 | 81,534 |
Accrued liabilities | 95,720 | 72,366 |
Total current liabilities | 186,471 | 176,148 |
Long-term debt | 70,138 | 89,446 |
Other liabilities | 25,048 | 28,046 |
Total liabilities | 281,657 | 293,640 |
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, 60,637 shares issued and outstanding at May 1, 2022, and 60,024 shares issued and outstanding at October 31, 2021 | 606 | 600 |
Additional paid-in capital | 489,368 | 484,672 |
Retained earnings | 367,344 | 317,849 |
Accumulated other comprehensive (loss) income | (22,919) | 20,571 |
Total Photronics, Inc. shareholders' equity | 834,399 | 823,692 |
Noncontrolling interests | 215,831 | 176,870 |
Total equity | 1,050,230 | 1,000,562 |
Total liabilities and equity | $ 1,331,887 | $ 1,294,202 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | May 01, 2022 | Oct. 31, 2021 |
Current assets: | ||
Accounts receivable, allowance | $ 1,107 | $ 1,218 |
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) | 60,637 | 60,024 |
Common stock, shares outstanding (in shares) | 60,637 | 60,024 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | ||
Condensed Consolidated Statements of Income [Abstract] | |||||
Revenue | [1] | $ 204,509 | $ 159,763 | $ 394,336 | $ 311,830 |
Cost of goods sold | 134,289 | 120,514 | 264,253 | 242,052 | |
Gross profit | 70,220 | 39,249 | 130,083 | 69,778 | |
Operating expenses: | |||||
Selling, general and administrative | 16,613 | 14,067 | 32,340 | 28,120 | |
Research and development | 4,206 | 4,375 | 10,145 | 9,085 | |
Total operating expenses | 20,819 | 18,442 | 42,485 | 37,205 | |
Operating income | 49,401 | 20,807 | 87,598 | 32,573 | |
Non-operating income (expense): | |||||
Foreign currency transactions impact, net | 7,844 | (2,055) | 13,112 | (674) | |
Interest expense, net of subsidies | 15 | 1,246 | (880) | 423 | |
Interest income and other income and expense, net | 162 | 37 | 496 | 159 | |
Income before income tax provision | 57,422 | 20,035 | 100,326 | 32,481 | |
Income tax provision | 14,393 | 3,714 | 25,571 | 6,651 | |
Net income | 43,029 | 16,321 | 74,755 | 25,830 | |
Net income attributable to noncontrolling interests | 15,597 | 5,795 | 24,259 | 7,268 | |
Net income attributable to Photronics, Inc. shareholders | $ 27,432 | $ 10,526 | $ 50,496 | $ 18,562 | |
Earnings per share: | |||||
Basic (in dollars per share) | $ 0.45 | $ 0.17 | $ 0.84 | $ 0.30 | |
Diluted (in dollars per share) | $ 0.45 | $ 0.17 | $ 0.83 | $ 0.30 | |
Weighted-average number of common shares outstanding: | |||||
Basic (in shares) | 60,606 | 62,054 | 60,382 | 62,265 | |
Diluted (in shares) | 61,145 | 62,568 | 61,041 | 62,786 | |
[1] | This table disaggregates revenue by the location in which it was earned. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 43,029 | $ 16,321 | $ 74,755 | $ 25,830 |
Other comprehensive (loss) income, net of tax of $0: | ||||
Foreign currency translation adjustments | (44,118) | 3,778 | (53,949) | 22,066 |
Other | 129 | 21 | 166 | 21 |
Net other comprehensive (loss) income | (43,989) | 3,799 | (53,783) | 22,087 |
Comprehensive (loss) income | (960) | 20,120 | 20,972 | 47,917 |
Less: comprehensive income attributable to noncontrolling interests | 5,092 | 6,431 | 13,966 | 12,121 |
Comprehensive (loss) income attributable to Photronics, Inc. shareholders | $ (6,052) | $ 13,689 | $ 7,006 | $ 35,796 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Other comprehensive income (loss), tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Non-Controlling Interests [Member] | Total |
Balance at Oct. 31, 2020 | $ 631 | $ 507,336 | $ 279,037 | $ 0 | $ 17,958 | $ 157,304 | $ 962,266 |
Balance (in shares) at Oct. 31, 2020 | 63,138 | ||||||
Net income | $ 0 | 0 | 18,562 | 0 | 0 | 7,268 | 25,830 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | 17,234 | 4,853 | 22,087 |
Shares issued under equity plans | $ 5 | 1,156 | 0 | 0 | 0 | 0 | 1,161 |
Shares issued under equity plans (in shares) | 468 | ||||||
Share-based compensation expense | $ 0 | 2,723 | 0 | 0 | 0 | 0 | 2,723 |
Purchase of treasury stock | 0 | 0 | 0 | (23,250) | 0 | 0 | (23,250) |
Balance at May. 02, 2021 | $ 636 | 511,215 | 297,599 | (23,250) | 35,192 | 169,425 | 990,817 |
Balance (in shares) at May. 02, 2021 | 63,606 | ||||||
Balance at Jan. 31, 2021 | $ 635 | 508,974 | 287,073 | (13,209) | 32,029 | 162,994 | 978,496 |
Balance (in shares) at Jan. 31, 2021 | 63,506 | ||||||
Net income | $ 0 | 0 | 10,526 | 0 | 0 | 5,795 | 16,321 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | 3,163 | 636 | 3,799 |
Shares issued under equity plans | $ 1 | 819 | 0 | 0 | 0 | 0 | 820 |
Shares issued under equity plans (in shares) | 100 | ||||||
Share-based compensation expense | $ 0 | 1,422 | 0 | 0 | 0 | 0 | 1,422 |
Purchase of treasury stock | $ 0 | 0 | 0 | (10,041) | 0 | 0 | (10,041) |
Purchase of treasury stock (in shares) | 0 | ||||||
Balance at May. 02, 2021 | $ 636 | 511,215 | 297,599 | (23,250) | 35,192 | 169,425 | 990,817 |
Balance (in shares) at May. 02, 2021 | 63,606 | ||||||
Balance at Oct. 31, 2021 | $ 600 | 484,672 | 317,849 | 0 | 20,571 | 176,870 | 1,000,562 |
Balance (in shares) at Oct. 31, 2021 | 60,024 | ||||||
Net income | $ 0 | 0 | 50,496 | 0 | 0 | 24,259 | 74,755 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | (43,490) | (10,293) | (53,783) |
Shares issued under equity plans | $ 7 | 3,175 | 0 | 0 | 0 | 0 | 3,182 |
Shares issued under equity plans (in shares) | 801 | ||||||
Share-based compensation expense | $ 0 | 3,041 | 0 | 0 | 0 | 0 | 3,041 |
Contribution from noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 24,995 | 24,995 |
Purchase of treasury stock | $ 0 | 0 | 0 | (2,522) | 0 | 0 | (2,522) |
Purchase of treasury stock (in shares) | 0 | ||||||
Retirement of treasury stock | $ (1) | (1,520) | (1,001) | 2,522 | 0 | 0 | 0 |
Retirement of treasury stock (in shares) | (188) | ||||||
Balance at May. 01, 2022 | $ 606 | 489,368 | 367,344 | 0 | (22,919) | 215,831 | 1,050,230 |
Balance (in shares) at May. 01, 2022 | 60,637 | ||||||
Balance at Jan. 30, 2022 | $ 606 | 487,342 | 339,912 | 0 | 10,565 | 200,741 | 1,039,166 |
Balance (in shares) at Jan. 30, 2022 | 60,564 | ||||||
Net income | $ 0 | 0 | 27,432 | 0 | 0 | 15,597 | 43,029 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | (33,484) | (10,505) | (43,989) |
Shares issued under equity plans | $ 0 | 442 | 0 | 0 | 0 | 0 | 442 |
Shares issued under equity plans (in shares) | 73 | ||||||
Share-based compensation expense | $ 0 | 1,584 | 0 | 0 | 0 | 0 | 1,584 |
Contribution from noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 9,998 | 9,998 |
Balance at May. 01, 2022 | $ 606 | $ 489,368 | $ 367,344 | $ 0 | $ (22,919) | $ 215,831 | $ 1,050,230 |
Balance (in shares) at May. 01, 2022 | 60,637 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
May 01, 2022 | May 02, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 74,755 | $ 25,830 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 41,405 | 47,121 |
Share-based compensation | 3,041 | 2,723 |
Changes in assets and liabilities: | ||
Accounts receivable | (25,122) | (5,655) |
Inventories | (5,081) | 2,266 |
Other current assets | (10,858) | (8,591) |
Accounts payable, accrued liabilities, and other | 25,149 | (5,475) |
Net cash provided by operating activities | 103,289 | 58,219 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (34,809) | (73,516) |
Government incentives | 1,394 | 5,775 |
Other | (199) | (157) |
Net cash used in investing activities | (33,614) | (67,898) |
Cash flows from financing activities: | ||
Repayments of debt | (27,571) | (8,636) |
Purchases of treasury stock | (2,522) | (23,250) |
Contribution from noncontrolling interest | 24,995 | 0 |
Proceeds from share-based arrangements | 4,384 | 1,180 |
Proceeds from long-term debt | 0 | 12,439 |
Net settlements of restricted stock awards | (1,452) | (371) |
Net cash used in financing activities | (2,166) | (18,638) |
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (14,917) | 5,686 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 52,592 | (22,631) |
Cash, cash equivalents, and restricted cash at beginning of period | 279,680 | 281,602 |
Cash, cash equivalents, and restricted cash at end of period | 332,272 | 258,971 |
Less: Ending restricted cash | 2,990 | 3,006 |
Cash and cash equivalents at end of period | 329,282 | 255,965 |
Supplemental disclosures of non-cash information: | ||
Accruals for property, plant and equipment purchased during the period | $ 5,737 | $ 20,533 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 6 Months Ended |
May 01, 2022 | |
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” or “displays”), and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates during the fabrication of integrated circuits (“ICs” or “semiconductors”), a variety of FPDs and, to a lesser extent, other types of electrical and optical components. We operate eleven manufacturing facilities, which are located in Taiwan (3), Korea The accompanying unaudited condensed consolidated financial statements (“the financial statements”) have been prepared in accordance with U.S. GAAP 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 U.S. GAAP 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, its wholly owned subsidiaries, and the majority-owned subsidiaries which it controls. All intercompany balances and transactions have been eliminated in consolidation. These financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Form 10-K for the fiscal year ended October 31, 2021, where we discuss and provide additional information about our accounting policies and the methods and assumptions used in our estimates. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect amounts reported in them. Our estimates, including those on the impact of COVID-19, are based on historical experience and on various assumptions that we believe to be reasonable under the circumstances. Our estimates are based on the facts and circumstances available at the time they are made. Subsequent actual results 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 quarter of our fiscal year by the North American, European, and Asian holiday periods, as some customers reduce their development and buying activities during this period. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2022. |
INVENTORIES
INVENTORIES | 6 Months Ended |
May 01, 2022 | |
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. May 1, 2022 October 31, 2021 Raw materials $ 54,501 $ 54,019 Work in process 3,398 1,121 Finished goods 41 109 $ 57,940 $ 55,249 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
May 01, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 3 - PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consists of the following: May 1, 2022 October 31, 2021 Land $ 11,927 $ 12,442 Buildings and improvements 176,559 181,922 Machinery and equipment 1,873,926 1,961,474 Leasehold improvements 20,540 21,751 Furniture, fixtures and office equipment 15,210 15,534 Construction in progress 49,714 35,009 2,147,876 2,228,132 Accumulated depreciation and amortization (1,487,995 ) (1,531,579 ) $ 659,881 $ 696,553 ROU assets resulting from finance leases are included in the table above as follows: May 1, 2022 October 31, 2021 Machinery and equipment $ 42,760 $ 42,760 Accumulated amortization (3,355 ) (1,933 ) $ 39,405 $ 40,827 The following table presents depreciation expense (including the amortization of ROU assets) related to property, plant and equipment for the reporting periods Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Depreciation and amortization expense $ 20,506 $ 22,271 $ 41,229 $ 44,857 |
PDMCX JOINT VENTURE
PDMCX JOINT VENTURE | 6 Months Ended |
May 01, 2022 | |
PDMCX JOINT VENTURE [Abstract] | |
PDMCX JOINT VENTURE | NOTE 4 - PDMCX JOINT VENTURE In January 2018, Photronics, Inc. through its wholly owned Singapore subsidiary (hereinafter, within this Note “we”, “Photronics”, “us”, or “our”), and DNP, through its wholly owned subsidiary “DNP Asia Pacific PTE, Ltd.” entered into a joint venture under which DNP obtained a 49.99% interest in our IC business in Xiamen, China. The joint venture, which we refer to as “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. In 2020, in combination with local financing obtained by PDMCX, Photronics and DNP fulfilled their investment obligations under the PDMCX operating agreement ( “ 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 for a period of more than six three The following table presents net income we recorded from the operations of PDMCX during the reporting periods. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Net income from PDMCX $ 4,895 $ 2,256 $ 6,772 $ 2,194 As required by the guidance in Topic 810 - “Consolidation” of the 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. 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 were 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 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 following table presents the carrying amounts of PDMCX assets and liabilities included in our condensed consolidated balance sheets. General creditors of PDMCX do not have recourse to the assets of Photronics (other than the net assets of PDMCX); therefore, our maximum exposure to loss from PDMCX is our interest in the carrying amount of the net assets of the joint venture. May 1, 2022 October 31, 2021 Classification Carrying Amount Photronics Interest Carrying Amount Photronics Interest Current assets $ 117,292 $ 58,658 $ 59,745 $ 29,879 Noncurrent assets 134,914 67,469 137,799 68,913 Total assets 252,206 126,127 197,544 98,792 Current liabilities 37,439 18,723 26,559 13,282 Noncurrent liabilities 29,613 14,809 42,917 21,463 Total liabilities 67,052 33,532 69,476 34,745 Net assets $ 185,154 $ 92,595 $ 128,068 $ 64,047 |
DEBT
DEBT | 6 Months Ended |
May 01, 2022 | |
DEBT [Abstract] | |
DEBT | NOTE 5 - DEBT The tables below provide information on our long-term debt. As of May 1, 2022 Xiamen Project Loans Xiamen Working Capital Loans Hefei Equipment Loan Finance Leases Total Principal due: Next 12 months $ - $ 969 $ 4,540 $ 6,901 $ 12,410 Months 13 – 24 $ 6,266 $ 3,390 $ 4,540 $ 6,560 $ 20,756 Months 25 – 36 9,837 - 7,567 21,279 38,683 Months 37 – 48 9,080 - 1,619 - 10,699 Long-term debt $ 25,183 $ 3,390 $ 13,726 $ 27,839 $ 70,138 Total debt $ 25,183 $ 4,359 $ 18,266 $ 34,740 $ 82,548 Interest rate at balance sheet date 4.60 % 4.61 % 4.20 % (3) Basis spread on interest rates 0.00 76.00 (45.00 ) N/A Interest rate reset Quarterly Monthly/Annually Annually N/A Maturity date December 2025 July 2023 September 2025 (3) Periodic payment amount Varies as loans mature Increases as loans mature Varies (1) (3) Periodic payment frequency Semiannual, on individual loans Semiannual, on individual loans Semiannual (2) Monthly Loan collateral (carrying amount) $ 82,920 N/A $ 81,024 $ 39,405 (4) (1) . (2) (3) (4) As of October 31, 2021 Xiamen Project Loans Xiamen Working Capital Loans Hefei Equipment Loan Finance Leases Total Principal due: Next 12 months $ 2,068 $ 8,197 $ 4,694 $ 7,289 $ 22,248 Months 13 – 24 $ 10,071 $ 4,005 $ 4,693 $ 6,512 $ 25,281 Months 25 – 36 10,278 - 6,257 6,610 23,145 Months 37 – 48 9,902 - 5,585 17,961 33,448 Months 49 – 60 7,572 - - - 7,572 Long-term debt $ 37,823 $ 4,005 $ 16,535 $ 31,083 $ 89,446 Total $ 39,891 $ 12,202 $ 21,229 $ 38,372 $ 111,694 Interest rate at balance sheet date 4.65 % 4.53% - 4.61 % 4.20 % (3) Basis spread on interest rates 0.00 67.75 - 76.00 (45.00 ) N/A Interest rate reset Quarterly Monthly/Annually Annually N/A Maturity date December 2025 July 2023 September 2025 (3) Periodic payment amount Varies as loans mature Increases as loans mature Varies (1) (3) Periodic payment frequency Semiannual, on individual loans Semiannual, on individual loans Semiannual (2) Monthly Loan collateral (carrying amount) $ 90,096 N/A $ 86,487 $ 40,826 (4) (1) First five loan repayments will each be for 7.5 percent of the approved 200 million RMB loan principal; last five installments will each be for 12.5 percent of the approved loan principal . (2) Semiannual repayments commenced in March 2022. See Note 7 for interest rates on lease liabilities, maturity dates, and periodic payment amounts. (4) Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. Xiamen Project Loans In November 2018, PDMCX obtained approval to borrow 345.0 million RMB from the Industrial and Commercial Bank of China. From November 2018 through July 2020, PDMCX entered into separate loan agreements (the “Project Loans”) for the entire approved amount and, as of May 1, 2022, million RMB ($ million) remained outstanding. The Project Loans were used to finance certain capital expenditures at the PDMCX facility and are collateralized by liens granted on the land use right, building, and certain equipment located at the facility. The interest rates on the Project Loans are variable (based on the RMB Loan Prime Rate of the National Interbank Funding Center), and interest incurred on the loans is eligible for reimbursement through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provide for such reimbursements up to a prescribed limit and duration. The Project Loans are subject to covenants and provisions, certain of which relate to the assets pledged as security for the loans, all of which we were in compliance with at May 1, 2022. Xiamen Working Capital Loans In November 2018, PDMCX obtained approval for revolving, unsecured credit of the equivalent of $25.0 million, pursuant to which PDMCX may enter into separate loan agreements with varying terms to maturity. This facility is subject to annual reviews and extensions, with the most recent extension set to expire in October 2022 . The interest rates are variable, based on the RMB Loan Prime Rate of the National Interbank Funding Center. Interest incurred on the loans was eligible for reimbursement through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provided for such reimbursements up to a prescribed limit and duration. Hefei Equipment Loan In October 2020, our Hefei, China, facility was approved to borrow 200 million RMB (approximately $30.3 million, at the balance sheet date) from the China Construction Bank Corporation. This credit facility is subject to annual reviews and extensions, with the most recent extension set to expire in August 2022 Finance Leases In February 2021, we entered into a five-year $7.2 million finance lease for a high-end inspection tool and, in December 2020, we entered into a $35.5 million lease for a high-end lithography tool. See Note 7 for additional information on these leases. Corporate 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 subsidiaries. The Credit Agreement includes covenants around minimum interest coverage ratio, total leverage ratio, and minimum unrestricted cash balance (all of which we were in compliance with at May 1, 2022), 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 May 1, 2022. The interest rate on the Credit Agreement (1.76% at May 1, 2022) is based on our total leverage ratio at one-month LIBOR plus a spread, as defined in the Credit Agreement. |
REVENUE
REVENUE | 6 Months Ended |
May 01, 2022 | |
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, 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 are 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. We report our revenue net of any sales or similar taxes we collect on behalf of government entities. 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 was 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 of photomasks that are in process or completed but not yet shipped to customers. 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. We did not identify impairment indicators for any outstanding contract assets during the three or six-month periods ended May 1, 2022, or May 2, 2021. The following table provides information about our contract balances at the balance sheet dates. Classification May 1, 2022 October 31, 2021 Contract assets Other current assets $ 13,815 $ 9,859 Contract liabilities Accrued liabilities $ 25,613 $ 14,717 Other liabilities 5,204 5,197 $ 30,817 $ 19,914 The following table presents revenue recognized from contract liabilities that existed at the beginning of the reporting periods. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue recognized from beginning liability $ 11,460 $ 1,333 $ 7,278 $ 3,829 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 an allowance for credit losses. In the event that an amount is determined to be uncollectible, we charge the allowance for credit losses and derecognize the related receivable. We did not incur any credit losses on our accounts receivable during the three or six-month periods ended May 1, 2022, or May 2, 2021. Our invoice terms generally range from net thirty 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 have received from customers have generally 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 and six-month periods ended May , disaggregated by product type, geographic origin, and timing of recognition. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue by Product Type IC High-end $ 51,362 $ 41,259 $ 97,896 $ 78,039 Mainstream 94,437 70,732 177,664 138,908 Total IC $ 145,799 $ 111,991 $ 275,560 $ 216,947 FPD High-end $ 46,610 $ 39,401 $ 92,886 $ 74,046 Mainstream 12,100 8,371 25,890 20,837 Total FPD $ 58,710 $ 47,772 $ 118,776 $ 94,883 $ 204,509 $ 159,763 $ 394,336 $ 311,830 Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue by Geographic Origin* Taiwan $ 69,852 $ 59,002 $ 137,693 $ 115,592 China 53,691 23,730 99,645 44,727 Korea 40,769 40,239 80,283 79,022 United States 30,335 27,150 57,511 53,754 Europe 9,506 9,256 18,420 17,832 Other 356 386 784 903 $ 204,509 $ 159,763 $ 394,336 $ 311,830 * This table disaggregates revenue by the location in which it was earned. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue by Timing of Recognition Over time $ 192,770 $ 144,697 $ 363,034 $ 285,982 At a point in time 11,739 15,066 31,302 25,848 $ 204,509 $ 159,763 $ 394,336 $ 311,830 Contract Costs We pay commissions to third-party sales agents for certain sales they procure on our behalf. 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 do 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 contract obtainment costs as assets. Remaining Performance Obligations As we are typically required to fulfill customer orders within a short period of time, our backlog of orders has historically been two three one two two Product Warranties Our photomasks are sold under warranties that generally range from one |
LEASES
LEASES | 6 Months Ended |
May 01, 2022 | |
LEASES [Abstract] | |
LEASES | NOTE 7 - LEASES Our involvement in lease arrangements has typically been as a lessee. We determine if an agreement is or contains a lease on the earlier of the date of the agreement or the date on which we commit to entering the agreement. Our evaluation considers whether the agreement includes an identified asset and whether it affords us the right to control the asset. Our having the right to control an 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 twelve months available for our use. As allowed under ASC Topic 842 – “Leases” (“Topic 842”), we have elected not to apply the recognition requirements to leases that, at their commencement dates, have lease terms of twelve months or less and do not include options to purchase their underlying assets that we are reasonably certain to exercise. The present value of lease payments over the term of the lease provides the basis for the initial measurement of ROU assets and their related lease liabilities. We measure finance lease liabilities using the rates implicit in the leases; operating lease liabilities are measured using our incremental borrowing rates, for collateralized loans, at the commencement date. 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 include extension periods if the lease agreement includes an option to extend the lease that we are reasonably certain to exercise. As allowed under Topic 842, we have elected, for all classes of assets, the practical expedient to not separate lease components of a contract from nonlease components of a contract. In February 2021, we entered into a $ million finance lease for a high-end inspection tool. Monthly payments on the lease, which commenced in February 2021, are $ million per month. . In December 2020, we entered into a five-year $35.5 million finance lease for a high-end lithography tool. Monthly payments on the lease, which commenced in January 2021, increased from $0.04 million during the first three months to $0.6 million for the following nine months followed by forty-eight monthly payments of $0.5 million. As of the due date of the forty-eighth monthly payment, we may exercise an early buyout option to purchase the tool for $14.1 million. If we do not exercise the early buyout option, then at the end of the five-year lease term, at our option, we may return the tool, elect to extend the lease term for a period and a lease payment to be agreed with lessor at the time, or purchase the tool for its then-fair market value as determined by the lessor. Since we are reasonably certain that we will exercise the early buyout option, our lease liability reflects such exercise and we have classified the lease as a finance lease. The interest rate implicit in the lease is 1.58%. The lease agreement incorporates the covenants included in our Corporate Credit Agreement, which are detailed in Note 5, and includes a cross-default provision for any agreement or instrument with an outstanding, committed balance greater than $5.0 million in which we are the indebted party. The following table provides information on operating and finance leases included in our consolidated balance sheets. Classification May 1, 2022 October 31 , 2021 ROU Assets – Operating Leases Other assets $ 4,191 $ 5,581 ROU Assets – Finance Leases Property, plant and equipment, net $ 39,405 $ 40,827 Lease Liabilities – Operating Leases Accrued liabilities $ 1,850 $ 2,273 Other liabilities 2,280 3,246 $ 4,130 $ 5,519 Lease Liabilities – Finance Leases Current portion of long-term debt $ 6,901 $ 7,289 Long-term debt 27,839 31,083 $ 34,740 $ 38,372 The following table presents future lease payments under noncancelable operating and finance leases as of May 1 . Imputed interest represents the difference between undiscounted cash flows and discounted cash flows Operating Leases Finance Leases Remainder of fiscal year 2022 $ 1,092 $ 3,947 2023 1,297 6,938 2024 773 6,938 2025 608 18,013 2026 373 - Thereafter 144 - Total lease payments 4,287 35,836 Imputed interest (157 ) (1,096 ) Lease liabilities $ 4,130 $ 34,740 The following table presents lease costs for the three and six- month periods ended May 1 and May 2 Three Months Ended Six Months Ended May 1 2022 May 2, 2021 May 1 2022 May 2, 2021 Operating lease costs $ 569 $ 724 $ 1,158 $ 1,389 Short-term lease costs $ 142 $ 39 $ 263 $ 86 Variable lease costs $ 153 $ 157 $ 276 $ 301 Interest on finance lease liabilities $ 92 $ 166 $ 230 $ 201 Amortization of ROU assets $ 711 $ 455 $ 1,421 $ 455 The following table presents statistical information related to our operating and finance leases. The information presented is as of the balance sheet dates. May 1, 2022 October 31 , 2021 Classification Weighted-average remaining lease term (in years) Weighted-average discount rate Weighted-average remaining lease term (in years) Weighted-average discount rate Operating leases 3.3 2.4 % 3.5 2.4 % Finance leases 2.7 1.5 % 3.3 1.5 % The following table presents the effects of leases on our condensed consolidated statements of cash flows, and provides leases-related non-cash information for the periods presented. Three Months Ended Six Months Ended May 1 2022 May 2, 2021 May 1 2022 May 2, 2021 Operating cash flows used for operating leases $ 589 $ 627 $ 1,150 $ 1,229 Operating cash flows used for finance leases $ 134 $ 166 $ 277 $ 201 Financing cash flows used for finance leases $ 1,601 $ 864 $ 3,632 $ 864 ROU assets obtained in exchange for operating lease obligations $ 1 $ 99 $ 32 $ 367 ROU assets obtained in exchange for finance lease obligations $ - $ 7,200 $ - $ 42,672 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
May 01, 2022 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 8 - SHARE-BASED COMPENSATION In March 2016, shareholders approved our current 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), 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. The table below presents information on our share-based compensation expenses for the three and six-month periods ended May 1, 2022, and May 2, 2021. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Expense reported in: Cost of goods sold $ 182 $ 97 $ 324 $ 208 Selling, general and administrative 1,243 1,207 2,424 2,304 Research and development 159 118 293 211 Total expense incurred $ 1,584 $ 1,422 $ 3,041 $ 2,723 Expense by award type: Restricted stock awards $ 1,316 $ 1,313 $ 2,683 $ 2,484 Stock options 221 54 259 138 ESPP 47 55 99 101 Total expense incurred $ 1,584 $ 1,422 $ 3,041 $ 2,723 Income tax benefits of share-based compensation $ 104 $ 62 $ 188 $ 108 Share-based compensation cost capitalized $ - $ - $ - $ - Restricted Stock Awards We periodically grant restricted stock awards, the restrictions on which typically lapse over a service period of one to four years . The fair value of the awards is determined on the date of grant, based on the closing price of our common stock. The table below presents information on our restricted stock awards for the three and six-months ended May 1, 2022, and May 2, 2021. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Number of shares granted in period - 15,000 535,400 556,200 Weighted-average grant-date fair value of awards (in dollars per share) $ - $ 12.65 $ 19.28 $ 11.17 Compensation cost not yet recognized $ 10,779 $ 9,762 $ 10,779 $ 9,762 Weighted-average amortization period for cost not yet recognized (in years) 2.8 2.9 2.8 2.9 Shares outstanding at balance sheet date 891,429 1,022,327 891,429 1,022,327 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 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 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. The table below presents information on our stock options for the three and six-months ended May 1, 2022, and May 2, 2021 . Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Number of options granted in period - - - - Cash received from option exercised $ 438 $ 309 $ 4,149 $ 967 Compensation cost not yet recognized $ 52 $ 232 $ 52 $ 232 Weighted-average amortization period for cost not yet recognized (in years) 0.7 1.4 0.7 1.4 Information on outstanding and exercisable option awards as of May 1, 2022, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at May 1, 2022 718,213 $ 9.90 3.5 $ 3,657 Exercisable at May 1, 2022 693,987 $ 9.90 3.4 $ 3,531 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
May 01, 2022 | |
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 differs from the U.S. statutory rate of in the three-month period ended May 1, 2022, primarily due to the non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances, non-U.S. pre-tax income being taxed at higher statutory rates in the non-U.S. jurisdictions, and the establishment of uncertain tax positions in non-U.S. jurisdiction. The effective tax rate of 18.5% in the three-month period end May 2, 2021, differs from the U.S. statutory rate of 21.0% primarily due to changes in forecasted jurisdictional earnings. The effective tax rate of 25.5% in the six-month period ended May 1, 2022, differs from the U.S. statutory rate of 21.0% primarily due to the non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances, non-U.S. pre-tax income being taxed at higher statutory rates in the non-U.S. jurisdictions, and the establishment of uncertain tax positions in non-U.S. jurisdiction. The effective tax rate of 20.5% differs from the U.S. statutory rate of 21.0% in the six-month period ended May 2, 2021, primarily due to changes in forecasted jurisdictional earnings, the benefits of investment credits in certain foreign jurisdictions, which were partially offset by the non-recognition of taxes or benefits that, in certain jurisdictions, have been offset by valuation allowances. Although the timing of the expirations of statutes of limitations may be uncertain, as they can be dependent upon the settlement of tax audits, we believe that the amount of uncertain tax positions (including interest and penalties, and net of tax benefits) that may be resolved over the next twelve months is immaterial. Resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements. We are no longer subject to tax authority examinations in the U.S. and major foreign or state jurisdictions for years prior to fiscal year 2016 The table below presents information on our unrecognized tax benefits as of the balance sheet dates. May 1, 2022 October 31, 2021 Unrecognized tax benefits related to uncertain tax positions $ 4,629 $ 3,757 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 4,629 $ 3,757 Accrued interest and penalties related to uncertain tax positions $ 357 $ 223 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
May 01, 2022 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 10 - EARNINGS PER SHARE The calculations of basic and diluted earnings per share are presented below. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Net income attributable to Photronics, Inc. shareholders $ 27,432 $ 10,526 $ 50,496 $ 18,562 Effect of dilutive securities - - - - Earnings used for diluted earnings per share $ 27,432 $ 10,526 $ 50,496 $ 18,562 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 60,606 62,054 60,382 62,265 Effect of dilutive securities: Share-based payment awards 539 514 659 521 Potentially dilutive common shares 539 514 659 521 Weighted-average common shares used for diluted earnings per share 61,145 62,568 61,041 62,786 Basic earnings per share $ 0.45 $ 0.17 $ 0.84 $ 0.30 Diluted earnings per share $ 0.45 $ 0.17 $ 0.83 $ 0.30 The table below illustrates 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. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Share-based payment awards 427 293 626 559 Total potentially dilutive shares excluded 427 293 626 559 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
May 01, 2022 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES As of May 1, 2022, the Company had commitments outstanding for capital expenditures of approximately $115.1 million, primarily for purchases of high-end equipment. In May 2022, the Company was informed of a customs audit at one of its China operations. As of the date of this filing, the audit is ongoing. The Company estimated a contingency ranging from $2.2 million to $3.7 million which includes unpaid additional customs duties and related interest and penalties for the previous three years (the period under audit). We recorded a contingent loss of $2.2 million, as we believe this is the most likely outcome. The $2.2 million amount was recorded with a charge to Cost of goods sold Accrued liabilities We are subject to various other claims that arise in the ordinary course of business. We believe that our potential liability under such claims, individually or in the aggregate, will not have a material effect on our consolidated financial statements. |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | 6 Months Ended |
May 01, 2022 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | NOTE 12 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT The following tables set forth the changes in our accumulated other comprehensive income by component (net of tax of $0) for the three and six-month periods ended May 1, 2022, and May 2, 2021. Three Months Ended May 1, 2022 Foreign Currency Translation Adjustments Other Total Balance at January 30, 2022 $ 11,451 $ (886 ) $ 10,565 Other comprehensive (loss) income (44,118 ) 129 (43,989 ) Less: other comprehensive (loss) income attributable to noncontrolling interests (10,570 ) 65 (10,505 ) Balance at May 1 2022 $ (22,097 ) $ (822 ) $ (22,919 ) Three Months Ended May 2, 2021 Foreign Currency Translation Adjustments Other Total Balance at January 31, 2021 $ 32,900 $ (871 ) $ 32,029 Other comprehensive income 3,778 21 3,799 Less: other comprehensive income attributable to noncontrolling interests 626 10 636 Balance at May 2 2021 $ 36,052 $ (860 ) $ 35,192 Six Months Ended May 1, 2022 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2021 $ 21,476 $ (905 ) $ 20,571 Other comprehensive (loss) income (53,949 ) 166 (53,783 ) Less: other comprehensive (loss) income attributable to noncontrolling interests (10,376 ) 83 (10,293 ) Balance at May 1 2022 $ (22,097 ) $ (822 ) $ (22,919 ) Six Months Ended May 2, 2021 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2020 $ 18,828 $ (870 ) $ 17,958 Other comprehensive income 22,066 21 22,087 Less: other comprehensive income attributable to noncontrolling interests 4,842 11 4,853 Balance at May 2 2021 $ 36,052 $ (860 ) $ 35,192 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
May 01, 2022 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 13 - 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 approximate 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 May 1, 2022, or October 31, 2021. |
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS | 6 Months Ended |
May 01, 2022 | |
SHARE REPURCHASE PROGRAMS [Abstract] | |
SHARE REPURCHASE PROGRAMS | NOTE 14 - SHARE REPURCHASE PROGRAMS In September 2020, the Company’s board of directors authorized the repurchase of up to $100 million of its common stock, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Act. We commenced repurchasing shares under this authorization on September 16, 2020. All of the shares repurchased under this authorization prior to January 30, 2022, were retired prior to that date. As of May 1, 2022, $31.7 million was available under this authorization for the purchase of additional shares. The table below presents information on this repurchase program for the three and six-month periods ended May 1, 2022, and May 2, 2021. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Number of shares repurchased - 797 188 2,019 Cost of shares repurchased $ - $ 10,041 $ 2,522 $ 23,250 Average price paid per share $ - $ 12.59 $ 13.43 $ 11.51 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
May 01, 2022 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 15 - RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Updates Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. The FASB’s amendments primarily impact ASC 740, Income Taxes, and may impact both interim and annual reporting periods. We adopted ASU 2019-12 on November 1, 2021; the effect of the adoption was immaterial. Accounting Standards Updates to be Adopted In April 2022, the FASB issued ASU 2022-2, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”, which requires: 1) an entity to measure and record the lifetime expected credit losses of an asset that is within the scope of the Update upon origination or acquisition; as a result, credit losses from loans modified as troubled debt restructurings are to be incorporated into the allowance for credit losses and, 2) public business entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. The guidance in this Update will be effective for Photronics in its first quarter of fiscal 2024. The amendments are to be applied prospectively, with the exception of the transition method related to the recognition and measurement of troubled debt restructurings for which an entity has the option to apply a modified retrospective transition method. We are currently evaluating the effect the adoption of this ASU may have on our disclosures. In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, to increase the transparency of government assistance including the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance, and the effect of the assistance on an entity’s financial statements. The guidance in this Update will be effective for Photronics in its fiscal year 2023 Form 10-K, with early application of the amendments allowed. The amendments are to be applied prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or, retrospectively to those transactions. We are currently evaluating the effect the adoption of this ASU may have on our disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from LIBOR, and other interbank offered rates expected to be discontinued, to alternative reference rates. The guidance in this Update was effective upon its issuance; if elected, it is to be applied prospectively through December 31, 2022. We do not expect the impact of this ASU to be material to our consolidated financial statements. |
BASIS OF FINANCIAL STATEMENT _2
BASIS OF FINANCIAL STATEMENT PRESENTATION (Policies) | 6 Months Ended |
May 01, 2022 | |
BASIS OF FINANCIAL STATEMENT PRESENTATION [Abstract] | |
Consolidation | The accompanying unaudited condensed consolidated financial statements (“the financial statements”) have been prepared in accordance with U.S. GAAP 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 U.S. GAAP 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, its wholly owned subsidiaries, and the majority-owned subsidiaries which it controls. All intercompany balances and transactions have been eliminated in consolidation. These financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Form 10-K for the fiscal year ended October 31, 2021, where we discuss and provide additional information about our accounting policies and the methods and assumptions used in our estimates. |
Estimates and Assumptions | The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect amounts reported in them. Our estimates, including those on the impact of COVID-19, are based on historical experience and on various assumptions that we believe to be reasonable under the circumstances. Our estimates are based on the facts and circumstances available at the time they are made. Subsequent actual results may differ from such estimates. We review these estimates periodically and reflect any effects of revisions in the period in which they are determined. |
INVENTORIES (Policies)
INVENTORIES (Policies) | 6 Months Ended |
May 01, 2022 | |
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) | 6 Months Ended |
May 01, 2022 | |
PDMCX JOINT VENTURE [Abstract] | |
Variable Interest Entities | As required by the guidance in Topic 810 - “Consolidation” of the 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. 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 were 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 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) | 6 Months Ended |
May 01, 2022 | |
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, 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 are 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. We report our revenue net of any sales or similar taxes we collect on behalf of government entities. 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 was 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 of photomasks that are in process or completed but not yet shipped to customers. 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. We did not identify impairment indicators for any outstanding contract assets during the three or six-month periods ended May 1, 2022, or May 2, 2021. 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 an allowance for credit losses. In the event that an amount is determined to be uncollectible, we charge the allowance for credit losses and derecognize the related receivable. We did not incur any credit losses on our accounts receivable during the three or six-month periods ended May 1, 2022, or May 2, 2021. Our invoice terms generally range from net thirty 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 have received from customers have generally 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 they procure on our behalf. 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 do 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 contract obtainment costs as assets. Remaining Performance Obligations As we are typically required to fulfill customer orders within a short period of time, our backlog of orders has historically been two three one two two Product Warranties Our photomasks are sold under warranties that generally range from one |
LEASES (Policies)
LEASES (Policies) | 6 Months Ended |
May 01, 2022 | |
LEASES [Abstract] | |
Leases | Our involvement in lease arrangements has typically been as a lessee. We determine if an agreement is or contains a lease on the earlier of the date of the agreement or the date on which we commit to entering the agreement. Our evaluation considers whether the agreement includes an identified asset and whether it affords us the right to control the asset. Our having the right to control an 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 twelve months available for our use. As allowed under ASC Topic 842 – “Leases” (“Topic 842”), we have elected not to apply the recognition requirements to leases that, at their commencement dates, have lease terms of twelve months or less and do not include options to purchase their underlying assets that we are reasonably certain to exercise. The present value of lease payments over the term of the lease provides the basis for the initial measurement of ROU assets and their related lease liabilities. We measure finance lease liabilities using the rates implicit in the leases; operating lease liabilities are measured using our incremental borrowing rates, for collateralized loans, at the commencement date. 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 include extension periods if the lease agreement includes an option to extend the lease that we are reasonably certain to exercise. As allowed under Topic 842, we have elected, for all classes of assets, the practical expedient to not separate lease components of a contract from nonlease components of a contract. |
SHARE-BASED COMPENSATION (Polic
SHARE-BASED COMPENSATION (Policies) | 6 Months Ended |
May 01, 2022 | |
Restricted Stock [Member] | |
Stock Options [Abstract] | |
Share-Based Compensation | We periodically grant restricted stock awards, the restrictions on which typically lapse over a service period of one to four years . The fair value of the awards is determined on the date of grant, based on the closing price of our common stock. |
Employee Stock Option [Member] | |
Stock Options [Abstract] | |
Share-Based Compensation | 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 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 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) | 6 Months Ended |
May 01, 2022 | |
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. |
FAIR VALUE MEASUREMENTS (Polici
FAIR VALUE MEASUREMENTS (Policies) | 6 Months Ended |
May 01, 2022 | |
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) | 6 Months Ended |
May 01, 2022 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recent Accounting Pronouncements | Accounting Standards Updates Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. The FASB’s amendments primarily impact ASC 740, Income Taxes, and may impact both interim and annual reporting periods. We adopted ASU 2019-12 on November 1, 2021; the effect of the adoption was immaterial. Accounting Standards Updates to be Adopted In April 2022, the FASB issued ASU 2022-2, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures”, which requires: 1) an entity to measure and record the lifetime expected credit losses of an asset that is within the scope of the Update upon origination or acquisition; as a result, credit losses from loans modified as troubled debt restructurings are to be incorporated into the allowance for credit losses and, 2) public business entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. The guidance in this Update will be effective for Photronics in its first quarter of fiscal 2024. The amendments are to be applied prospectively, with the exception of the transition method related to the recognition and measurement of troubled debt restructurings for which an entity has the option to apply a modified retrospective transition method. We are currently evaluating the effect the adoption of this ASU may have on our disclosures. In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, to increase the transparency of government assistance including the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance, and the effect of the assistance on an entity’s financial statements. The guidance in this Update will be effective for Photronics in its fiscal year 2023 Form 10-K, with early application of the amendments allowed. The amendments are to be applied prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or, retrospectively to those transactions. We are currently evaluating the effect the adoption of this ASU may have on our disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from LIBOR, and other interbank offered rates expected to be discontinued, to alternative reference rates. The guidance in this Update was effective upon its issuance; if elected, it is to be applied prospectively through December 31, 2022. We do not expect the impact of this ASU to be material to our consolidated financial statements. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
May 01, 2022 | |
INVENTORIES [Abstract] | |
Inventories | Inventories are stated at the lower of cost, determined under the first-in, first-out (“FIFO”) method, or net realizable value. May 1, 2022 October 31, 2021 Raw materials $ 54,501 $ 54,019 Work in process 3,398 1,121 Finished goods 41 109 $ 57,940 $ 55,249 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
May 01, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consists of the following: May 1, 2022 October 31, 2021 Land $ 11,927 $ 12,442 Buildings and improvements 176,559 181,922 Machinery and equipment 1,873,926 1,961,474 Leasehold improvements 20,540 21,751 Furniture, fixtures and office equipment 15,210 15,534 Construction in progress 49,714 35,009 2,147,876 2,228,132 Accumulated depreciation and amortization (1,487,995 ) (1,531,579 ) $ 659,881 $ 696,553 |
Finance Lease, ROU Assets | ROU assets resulting from finance leases are included in the table above as follows: May 1, 2022 October 31, 2021 Machinery and equipment $ 42,760 $ 42,760 Accumulated amortization (3,355 ) (1,933 ) $ 39,405 $ 40,827 |
Depreciation and Amortization Expense | The following table presents depreciation expense (including the amortization of ROU assets) related to property, plant and equipment for the reporting periods Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Depreciation and amortization expense $ 20,506 $ 22,271 $ 41,229 $ 44,857 |
PDMCX JOINT VENTURE (Tables)
PDMCX JOINT VENTURE (Tables) | 6 Months Ended |
May 01, 2022 | |
PDMCX JOINT VENTURE [Abstract] | |
Net Income Recorded from Operations | The following table presents net income we recorded from the operations of PDMCX during the reporting periods. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Net income from PDMCX $ 4,895 $ 2,256 $ 6,772 $ 2,194 |
Carrying Amounts and Exposure to Loss Related to Assets and Liabilities | The following table presents the carrying amounts of PDMCX assets and liabilities included in our condensed consolidated balance sheets. General creditors of PDMCX do not have recourse to the assets of Photronics (other than the net assets of PDMCX); therefore, our maximum exposure to loss from PDMCX is our interest in the carrying amount of the net assets of the joint venture. May 1, 2022 October 31, 2021 Classification Carrying Amount Photronics Interest Carrying Amount Photronics Interest Current assets $ 117,292 $ 58,658 $ 59,745 $ 29,879 Noncurrent assets 134,914 67,469 137,799 68,913 Total assets 252,206 126,127 197,544 98,792 Current liabilities 37,439 18,723 26,559 13,282 Noncurrent liabilities 29,613 14,809 42,917 21,463 Total liabilities 67,052 33,532 69,476 34,745 Net assets $ 185,154 $ 92,595 $ 128,068 $ 64,047 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
May 01, 2022 | |
DEBT [Abstract] | |
Long-term Debt | The tables below provide information on our long-term debt. As of May 1, 2022 Xiamen Project Loans Xiamen Working Capital Loans Hefei Equipment Loan Finance Leases Total Principal due: Next 12 months $ - $ 969 $ 4,540 $ 6,901 $ 12,410 Months 13 – 24 $ 6,266 $ 3,390 $ 4,540 $ 6,560 $ 20,756 Months 25 – 36 9,837 - 7,567 21,279 38,683 Months 37 – 48 9,080 - 1,619 - 10,699 Long-term debt $ 25,183 $ 3,390 $ 13,726 $ 27,839 $ 70,138 Total debt $ 25,183 $ 4,359 $ 18,266 $ 34,740 $ 82,548 Interest rate at balance sheet date 4.60 % 4.61 % 4.20 % (3) Basis spread on interest rates 0.00 76.00 (45.00 ) N/A Interest rate reset Quarterly Monthly/Annually Annually N/A Maturity date December 2025 July 2023 September 2025 (3) Periodic payment amount Varies as loans mature Increases as loans mature Varies (1) (3) Periodic payment frequency Semiannual, on individual loans Semiannual, on individual loans Semiannual (2) Monthly Loan collateral (carrying amount) $ 82,920 N/A $ 81,024 $ 39,405 (4) (1) . (2) (3) (4) As of October 31, 2021 Xiamen Project Loans Xiamen Working Capital Loans Hefei Equipment Loan Finance Leases Total Principal due: Next 12 months $ 2,068 $ 8,197 $ 4,694 $ 7,289 $ 22,248 Months 13 – 24 $ 10,071 $ 4,005 $ 4,693 $ 6,512 $ 25,281 Months 25 – 36 10,278 - 6,257 6,610 23,145 Months 37 – 48 9,902 - 5,585 17,961 33,448 Months 49 – 60 7,572 - - - 7,572 Long-term debt $ 37,823 $ 4,005 $ 16,535 $ 31,083 $ 89,446 Total $ 39,891 $ 12,202 $ 21,229 $ 38,372 $ 111,694 Interest rate at balance sheet date 4.65 % 4.53% - 4.61 % 4.20 % (3) Basis spread on interest rates 0.00 67.75 - 76.00 (45.00 ) N/A Interest rate reset Quarterly Monthly/Annually Annually N/A Maturity date December 2025 July 2023 September 2025 (3) Periodic payment amount Varies as loans mature Increases as loans mature Varies (1) (3) Periodic payment frequency Semiannual, on individual loans Semiannual, on individual loans Semiannual (2) Monthly Loan collateral (carrying amount) $ 90,096 N/A $ 86,487 $ 40,826 (4) (1) First five loan repayments will each be for 7.5 percent of the approved 200 million RMB loan principal; last five installments will each be for 12.5 percent of the approved loan principal . (2) Semiannual repayments commenced in March 2022. See Note 7 for interest rates on lease liabilities, maturity dates, and periodic payment amounts. (4) Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
May 01, 2022 | |
REVENUE [Abstract] | |
Contract Balances | The following table provides information about our contract balances at the balance sheet dates. Classification May 1, 2022 October 31, 2021 Contract assets Other current assets $ 13,815 $ 9,859 Contract liabilities Accrued liabilities $ 25,613 $ 14,717 Other liabilities 5,204 5,197 $ 30,817 $ 19,914 The following table presents revenue recognized from contract liabilities that existed at the beginning of the reporting periods. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue recognized from beginning liability $ 11,460 $ 1,333 $ 7,278 $ 3,829 |
Disaggregation of Revenue | The following tables present our revenue for the three and six-month periods ended May , disaggregated by product type, geographic origin, and timing of recognition. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue by Product Type IC High-end $ 51,362 $ 41,259 $ 97,896 $ 78,039 Mainstream 94,437 70,732 177,664 138,908 Total IC $ 145,799 $ 111,991 $ 275,560 $ 216,947 FPD High-end $ 46,610 $ 39,401 $ 92,886 $ 74,046 Mainstream 12,100 8,371 25,890 20,837 Total FPD $ 58,710 $ 47,772 $ 118,776 $ 94,883 $ 204,509 $ 159,763 $ 394,336 $ 311,830 Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue by Geographic Origin* Taiwan $ 69,852 $ 59,002 $ 137,693 $ 115,592 China 53,691 23,730 99,645 44,727 Korea 40,769 40,239 80,283 79,022 United States 30,335 27,150 57,511 53,754 Europe 9,506 9,256 18,420 17,832 Other 356 386 784 903 $ 204,509 $ 159,763 $ 394,336 $ 311,830 * This table disaggregates revenue by the location in which it was earned. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Revenue by Timing of Recognition Over time $ 192,770 $ 144,697 $ 363,034 $ 285,982 At a point in time 11,739 15,066 31,302 25,848 $ 204,509 $ 159,763 $ 394,336 $ 311,830 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
May 01, 2022 | |
LEASES [Abstract] | |
Information on Operating and Finance Leases Included in Consolidated Balance Sheets | The following table provides information on operating and finance leases included in our consolidated balance sheets. Classification May 1, 2022 October 31 , 2021 ROU Assets – Operating Leases Other assets $ 4,191 $ 5,581 ROU Assets – Finance Leases Property, plant and equipment, net $ 39,405 $ 40,827 Lease Liabilities – Operating Leases Accrued liabilities $ 1,850 $ 2,273 Other liabilities 2,280 3,246 $ 4,130 $ 5,519 Lease Liabilities – Finance Leases Current portion of long-term debt $ 6,901 $ 7,289 Long-term debt 27,839 31,083 $ 34,740 $ 38,372 |
Future Lease Payments under Noncancelable Operating and Finance Leases | The following table presents future lease payments under noncancelable operating and finance leases as of May 1 . Imputed interest represents the difference between undiscounted cash flows and discounted cash flows Operating Leases Finance Leases Remainder of fiscal year 2022 $ 1,092 $ 3,947 2023 1,297 6,938 2024 773 6,938 2025 608 18,013 2026 373 - Thereafter 144 - Total lease payments 4,287 35,836 Imputed interest (157 ) (1,096 ) Lease liabilities $ 4,130 $ 34,740 |
Lease Costs | The following table presents lease costs for the three and six- month periods ended May 1 and May 2 Three Months Ended Six Months Ended May 1 2022 May 2, 2021 May 1 2022 May 2, 2021 Operating lease costs $ 569 $ 724 $ 1,158 $ 1,389 Short-term lease costs $ 142 $ 39 $ 263 $ 86 Variable lease costs $ 153 $ 157 $ 276 $ 301 Interest on finance lease liabilities $ 92 $ 166 $ 230 $ 201 Amortization of ROU assets $ 711 $ 455 $ 1,421 $ 455 |
Weighted-Average Lease Terms and Weighted-Average Discount Rates | The following table presents statistical information related to our operating and finance leases. The information presented is as of the balance sheet dates. May 1, 2022 October 31 , 2021 Classification Weighted-average remaining lease term (in years) Weighted-average discount rate Weighted-average remaining lease term (in years) Weighted-average discount rate Operating leases 3.3 2.4 % 3.5 2.4 % Finance leases 2.7 1.5 % 3.3 1.5 % |
Supplemental Cash Flow Information Related to Leases | The following table presents the effects of leases on our condensed consolidated statements of cash flows, and provides leases-related non-cash information for the periods presented. Three Months Ended Six Months Ended May 1 2022 May 2, 2021 May 1 2022 May 2, 2021 Operating cash flows used for operating leases $ 589 $ 627 $ 1,150 $ 1,229 Operating cash flows used for finance leases $ 134 $ 166 $ 277 $ 201 Financing cash flows used for finance leases $ 1,601 $ 864 $ 3,632 $ 864 ROU assets obtained in exchange for operating lease obligations $ 1 $ 99 $ 32 $ 367 ROU assets obtained in exchange for finance lease obligations $ - $ 7,200 $ - $ 42,672 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
May 01, 2022 | |
SHARE-BASED COMPENSATION [Abstract] | |
Share-based Compensation Expenses | The table below presents information on our share-based compensation expenses for the three and six-month periods ended May 1, 2022, and May 2, 2021. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Expense reported in: Cost of goods sold $ 182 $ 97 $ 324 $ 208 Selling, general and administrative 1,243 1,207 2,424 2,304 Research and development 159 118 293 211 Total expense incurred $ 1,584 $ 1,422 $ 3,041 $ 2,723 Expense by award type: Restricted stock awards $ 1,316 $ 1,313 $ 2,683 $ 2,484 Stock options 221 54 259 138 ESPP 47 55 99 101 Total expense incurred $ 1,584 $ 1,422 $ 3,041 $ 2,723 Income tax benefits of share-based compensation $ 104 $ 62 $ 188 $ 108 Share-based compensation cost capitalized $ - $ - $ - $ - |
Restricted Stock Awards Activity | The table below presents information on our restricted stock awards for the three and six-months ended May 1, 2022, and May 2, 2021. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Number of shares granted in period - 15,000 535,400 556,200 Weighted-average grant-date fair value of awards (in dollars per share) $ - $ 12.65 $ 19.28 $ 11.17 Compensation cost not yet recognized $ 10,779 $ 9,762 $ 10,779 $ 9,762 Weighted-average amortization period for cost not yet recognized (in years) 2.8 2.9 2.8 2.9 Shares outstanding at balance sheet date 891,429 1,022,327 891,429 1,022,327 |
Stock Options Activity | The table below presents information on our stock options for the three and six-months ended May 1, 2022, and May 2, 2021 . Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Number of options granted in period - - - - Cash received from option exercised $ 438 $ 309 $ 4,149 $ 967 Compensation cost not yet recognized $ 52 $ 232 $ 52 $ 232 Weighted-average amortization period for cost not yet recognized (in years) 0.7 1.4 0.7 1.4 |
Information on Outstanding and Exercisable Option | Information on outstanding and exercisable option awards as of May 1, 2022, is presented below. Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at May 1, 2022 718,213 $ 9.90 3.5 $ 3,657 Exercisable at May 1, 2022 693,987 $ 9.90 3.4 $ 3,531 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
May 01, 2022 | |
INCOME TAXES [Abstract] | |
Unrecognized Tax Benefits | The table below presents information on our unrecognized tax benefits as of the balance sheet dates. May 1, 2022 October 31, 2021 Unrecognized tax benefits related to uncertain tax positions $ 4,629 $ 3,757 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 4,629 $ 3,757 Accrued interest and penalties related to uncertain tax positions $ 357 $ 223 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
May 01, 2022 | |
EARNINGS PER SHARE [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculations of basic and diluted earnings per share are presented below. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Net income attributable to Photronics, Inc. shareholders $ 27,432 $ 10,526 $ 50,496 $ 18,562 Effect of dilutive securities - - - - Earnings used for diluted earnings per share $ 27,432 $ 10,526 $ 50,496 $ 18,562 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 60,606 62,054 60,382 62,265 Effect of dilutive securities: Share-based payment awards 539 514 659 521 Potentially dilutive common shares 539 514 659 521 Weighted-average common shares used for diluted earnings per share 61,145 62,568 61,041 62,786 Basic earnings per share $ 0.45 $ 0.17 $ 0.84 $ 0.30 Diluted earnings per share $ 0.45 $ 0.17 $ 0.83 $ 0.30 |
Outstanding Securities Excluded from Calculation of Diluted Earnings or Loss Per Share | The table below illustrates 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. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Share-based payment awards 427 293 626 559 Total potentially dilutive shares excluded 427 293 626 559 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables) | 6 Months Ended |
May 01, 2022 | |
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 and six-month periods ended May 1, 2022, and May 2, 2021. Three Months Ended May 1, 2022 Foreign Currency Translation Adjustments Other Total Balance at January 30, 2022 $ 11,451 $ (886 ) $ 10,565 Other comprehensive (loss) income (44,118 ) 129 (43,989 ) Less: other comprehensive (loss) income attributable to noncontrolling interests (10,570 ) 65 (10,505 ) Balance at May 1 2022 $ (22,097 ) $ (822 ) $ (22,919 ) Three Months Ended May 2, 2021 Foreign Currency Translation Adjustments Other Total Balance at January 31, 2021 $ 32,900 $ (871 ) $ 32,029 Other comprehensive income 3,778 21 3,799 Less: other comprehensive income attributable to noncontrolling interests 626 10 636 Balance at May 2 2021 $ 36,052 $ (860 ) $ 35,192 Six Months Ended May 1, 2022 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2021 $ 21,476 $ (905 ) $ 20,571 Other comprehensive (loss) income (53,949 ) 166 (53,783 ) Less: other comprehensive (loss) income attributable to noncontrolling interests (10,376 ) 83 (10,293 ) Balance at May 1 2022 $ (22,097 ) $ (822 ) $ (22,919 ) Six Months Ended May 2, 2021 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2020 $ 18,828 $ (870 ) $ 17,958 Other comprehensive income 22,066 21 22,087 Less: other comprehensive income attributable to noncontrolling interests 4,842 11 4,853 Balance at May 2 2021 $ 36,052 $ (860 ) $ 35,192 |
SHARE REPURCHASE PROGRAMS (Tabl
SHARE REPURCHASE PROGRAMS (Tables) | 6 Months Ended |
May 01, 2022 | |
SHARE REPURCHASE PROGRAMS [Abstract] | |
Shares Repurchase Programs | The table below presents information on this repurchase program for the three and six-month periods ended May 1, 2022, and May 2, 2021. Three Months Ended Six Months Ended May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 Number of shares repurchased - 797 188 2,019 Cost of shares repurchased $ - $ 10,041 $ 2,522 $ 23,250 Average price paid per share $ - $ 12.59 $ 13.43 $ 11.51 |
BASIS OF FINANCIAL STATEMENT _3
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) | 6 Months Ended |
May 01, 2022Facility | |
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 | 1 |
China [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 2 |
United States [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 3 |
Europe [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 2 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | May 01, 2022 | Oct. 31, 2021 |
INVENTORIES [Abstract] | ||
Raw materials | $ 54,501 | $ 54,019 |
Work in process | 3,398 | 1,121 |
Finished goods | 41 | 109 |
Inventories | $ 57,940 | $ 55,249 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Property, plant and equipment [Abstract] | |||||
Property, plant and equipment, gross | $ 2,147,876 | $ 2,147,876 | $ 2,228,132 | ||
Accumulated depreciation and amortization | (1,487,995) | (1,487,995) | (1,531,579) | ||
Property, plant and equipment, net | 659,881 | 659,881 | 696,553 | ||
Depreciation and amortization expense | 20,506 | $ 22,271 | 41,229 | $ 44,857 | |
Finance lease, Right-of-use asset [Abstract] | |||||
Finance lease, right-of-use asset, gross | 42,760 | 42,760 | 42,760 | ||
Accumulated amortization | (3,355) | (3,355) | (1,933) | ||
Finance lease, right-of-use asset, net | 39,405 | 39,405 | 40,827 | ||
Land [Member] | |||||
Property, plant and equipment [Abstract] | |||||
Property, plant and equipment, gross | 11,927 | 11,927 | 12,442 | ||
Buildings and Improvements [Member] | |||||
Property, plant and equipment [Abstract] | |||||
Property, plant and equipment, gross | 176,559 | 176,559 | 181,922 | ||
Machinery and Equipment [Member] | |||||
Property, plant and equipment [Abstract] | |||||
Property, plant and equipment, gross | 1,873,926 | 1,873,926 | 1,961,474 | ||
Leasehold Improvements [Member] | |||||
Property, plant and equipment [Abstract] | |||||
Property, plant and equipment, gross | 20,540 | 20,540 | 21,751 | ||
Furniture, Fixtures and Office Equipment [Member] | |||||
Property, plant and equipment [Abstract] | |||||
Property, plant and equipment, gross | 15,210 | 15,210 | 15,534 | ||
Construction in Progress [Member] | |||||
Property, plant and equipment [Abstract] | |||||
Property, plant and equipment, gross | $ 49,714 | $ 49,714 | $ 35,009 |
PDMCX JOINT VENTURE, VIE (Detai
PDMCX JOINT VENTURE, VIE (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2018 | May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Photronics and DNP [Member] | ||||||
Variable Interest Entity [Abstract] | ||||||
Term from inception after which interest holder may put their interest in the VIE | 2 years | |||||
Period before put or purchase option can be exercised | 6 months | |||||
Number of business days for obtaining required approvals and clearance for exiting party | 3 days | |||||
Net Income from Operations [Abstract] | ||||||
Net income from PDMCX | $ 4,895 | $ 2,256 | $ 6,772 | $ 2,194 | ||
Photronics and DNP [Member] | Minimum [Member] | ||||||
Variable Interest Entity [Abstract] | ||||||
Ownership percentage | 20.00% | |||||
PDMCX [Member] | ||||||
Variable Interest Entity [Abstract] | ||||||
Collateral amount | $ 82,900 | $ 82,900 | $ 90,100 | |||
Photronics Interest [Member] | ||||||
Variable Interest Entity [Abstract] | ||||||
Ownership percentage | 50.01% | |||||
DNP [Member] | ||||||
Variable Interest Entity [Abstract] | ||||||
Ownership percentage | 49.99% |
PDMCX JOINT VENTURE, Carrying A
PDMCX JOINT VENTURE, Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands | May 01, 2022 | Oct. 31, 2021 |
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | $ 630,345 | $ 550,616 |
Total assets | 1,331,887 | 1,294,202 |
Current liabilities | 186,471 | 176,148 |
Total liabilities | 281,657 | 293,640 |
Carrying Amount [Member] | ||
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | 117,292 | 59,745 |
Noncurrent assets | 134,914 | 137,799 |
Total assets | 252,206 | 197,544 |
Current liabilities | 37,439 | 26,559 |
Noncurrent liabilities | 29,613 | 42,917 |
Total liabilities | 67,052 | 69,476 |
Net assets | 185,154 | 128,068 |
Photronics Interest [Member] | ||
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | 58,658 | 29,879 |
Noncurrent assets | 67,469 | 68,913 |
Total assets | 126,127 | 98,792 |
Current liabilities | 18,723 | 13,282 |
Noncurrent liabilities | 14,809 | 21,463 |
Total liabilities | 33,532 | 34,745 |
Net assets | $ 92,595 | $ 64,047 |
DEBT (Details)
DEBT (Details) $ in Thousands, ¥ in Millions | 6 Months Ended | 12 Months Ended | |||||||||
May 01, 2022USD ($) | Oct. 31, 2021USD ($) | Oct. 31, 2020USD ($)Tool | May 01, 2022CNY (¥) | Oct. 31, 2021CNY (¥) | Feb. 28, 2021USD ($) | Dec. 31, 2020USD ($) | Oct. 31, 2020CNY (¥) | Nov. 30, 2018CNY (¥) | Sep. 30, 2018USD ($) | ||
Long Term Debt Maturing In Year One [Abstract] | |||||||||||
Next 12 months | $ 12,410 | $ 22,248 | |||||||||
Long-term Debt [Abstract] | |||||||||||
Months 13 - 24 | 20,756 | 25,281 | |||||||||
Months 25 - 36 | 38,683 | 23,145 | |||||||||
Months 37 - 48 | 10,699 | 33,448 | |||||||||
Months 49 - 60 | 7,572 | ||||||||||
Long-term debt | 70,138 | 89,446 | |||||||||
Total | 82,548 | 111,694 | |||||||||
Finance lease amount | 34,740 | 38,372 | |||||||||
Xiamen Project Loans [Member] | |||||||||||
Long Term Debt Maturing In Year One [Abstract] | |||||||||||
Next 12 months | 0 | 2,068 | |||||||||
Long-term Debt [Abstract] | |||||||||||
Months 13 - 24 | 6,266 | 10,071 | |||||||||
Months 25 - 36 | 9,837 | 10,278 | |||||||||
Months 37 - 48 | 9,080 | 9,902 | |||||||||
Months 49 - 60 | 7,572 | ||||||||||
Long-term debt | 25,183 | 37,823 | |||||||||
Total | $ 25,183 | $ 39,891 | |||||||||
Interest rate at balance sheet date | 4.60% | 4.65% | |||||||||
Basis spread on interest rates | 0.00% | 0.00% | |||||||||
Maturity date | Dec. 1, 2025 | Dec. 1, 2025 | |||||||||
Periodic payment amount | Varies as loans mature | ||||||||||
Periodic payment frequency | Semiannual, on individual loans | ||||||||||
Loan collateral (carrying amount) | $ 82,920 | $ 90,096 | |||||||||
Maximum borrowing capacity | ¥ | ¥ 345 | ||||||||||
Amount outstanding | 25,200 | ¥ 166.4 | |||||||||
Xiamen Working Capital Loans [Member] | |||||||||||
Long Term Debt Maturing In Year One [Abstract] | |||||||||||
Next 12 months | 969 | 8,197 | |||||||||
Long-term Debt [Abstract] | |||||||||||
Months 13 - 24 | 3,390 | 4,005 | |||||||||
Months 25 - 36 | 0 | 0 | |||||||||
Months 37 - 48 | 0 | 0 | |||||||||
Months 49 - 60 | 0 | ||||||||||
Long-term debt | 3,390 | 4,005 | |||||||||
Total | $ 4,359 | $ 12,202 | |||||||||
Interest rate at balance sheet date | 4.61% | ||||||||||
Basis spread on interest rates | 0.76% | ||||||||||
Maturity date | Jul. 1, 2023 | Jul. 1, 2023 | |||||||||
Periodic payment amount | Increases as loans mature | ||||||||||
Periodic payment frequency | Semiannual, on individual loans | ||||||||||
Maximum borrowing capacity | $ 25,000 | ||||||||||
Expiration date | Oct. 31, 2022 | ||||||||||
Amount outstanding | $ 4,400 | 28.8 | |||||||||
Xiamen Working Capital Loans [Member] | Minimum [Member] | |||||||||||
Long-term Debt [Abstract] | |||||||||||
Interest rate at balance sheet date | 4.53% | ||||||||||
Basis spread on interest rates | 0.6775% | ||||||||||
Xiamen Working Capital Loans [Member] | Maximum [Member] | |||||||||||
Long-term Debt [Abstract] | |||||||||||
Interest rate at balance sheet date | 4.61% | ||||||||||
Basis spread on interest rates | 0.76% | ||||||||||
Hefei Equipment Loan [Member] | |||||||||||
Long Term Debt Maturing In Year One [Abstract] | |||||||||||
Next 12 months | 4,540 | $ 4,694 | |||||||||
Long-term Debt [Abstract] | |||||||||||
Months 13 - 24 | 4,540 | 4,693 | |||||||||
Months 25 - 36 | 7,567 | 6,257 | |||||||||
Months 37 - 48 | 1,619 | 5,585 | |||||||||
Months 49 - 60 | 0 | ||||||||||
Long-term debt | 13,726 | 16,535 | |||||||||
Total | $ 18,266 | $ 21,229 | |||||||||
Interest rate at balance sheet date | 4.20% | 4.20% | |||||||||
Basis spread on interest rates | (0.45%) | (0.45%) | |||||||||
Maturity date | Sep. 1, 2025 | Sep. 1, 2025 | |||||||||
Periodic payment amount | [1] | Varies | |||||||||
Periodic payment frequency | [2] | Semiannual | |||||||||
Loan collateral (carrying amount) | $ 81,024 | $ 86,487 | |||||||||
Percent of repayment on approved loan principal in each first five semiannual loan repayments | 7.50% | 7.50% | |||||||||
Percent of repayment on original approved loan amount in each last five semiannual loan repayments | 12.50% | 12.50% | |||||||||
Maximum borrowing capacity | $ 30,300 | 200 | ¥ 200 | ¥ 200 | |||||||
Expiration date | Aug. 31, 2022 | ||||||||||
Proceeds from line of credit | ¥ | 135.7 | ||||||||||
Available borrowing capacity | $ 9,700 | 64.3 | |||||||||
Amount outstanding | 18,300 | ¥ 120.7 | |||||||||
Number of lithography tools to be purchased | Tool | 2 | ||||||||||
Finance Leases [Member] | |||||||||||
Long Term Debt Maturing In Year One [Abstract] | |||||||||||
Next 12 months | 6,901 | $ 7,289 | |||||||||
Long-term Debt [Abstract] | |||||||||||
Months 13 - 24 | 6,560 | 6,512 | |||||||||
Months 25 - 36 | 21,279 | 6,610 | |||||||||
Months 37 - 48 | 0 | 17,961 | |||||||||
Months 49 - 60 | 0 | ||||||||||
Long-term debt | 27,839 | 31,083 | |||||||||
Total | $ 34,740 | 38,372 | |||||||||
Periodic payment frequency | Monthly | ||||||||||
Loan collateral (carrying amount) | [3] | $ 39,405 | $ 40,826 | ||||||||
Finance lease contract term | 5 years | ||||||||||
Finance lease amount | $ 7,200 | $ 35,500 | |||||||||
Amended and Restated Credit Agreement [Member] | |||||||||||
Long-term Debt [Abstract] | |||||||||||
Maximum borrowing capacity | $ 100,000 | ||||||||||
Amount outstanding | $ 0 | ||||||||||
Term of loan | 5 years | ||||||||||
Current borrowing capacity | 50,000 | ||||||||||
Cash limit for dividends, distributions and redemption on equity | $ 50,000 | ||||||||||
Effective interest rate | 1.76% | 1.76% | |||||||||
[1] | First five loan repayments will each be for 7.5 percent of the approved 200 million RMB loan principal; last five installments will each be for 12.5 percent of the approved loan principal. | ||||||||||
[2] | Semiannual repayments commenced in March 2022. | ||||||||||
[3] | Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. |
REVENUE, Contract Assets, Liabi
REVENUE, Contract Assets, Liabilities and Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Contract with Customer, Asset and Liability [Abstract] | |||||
Credit losses on accounts receivable | $ 0 | $ 0 | $ 0 | $ 0 | |
Contract liabilities | 30,817 | 30,817 | $ 19,914 | ||
Change in Contract with Customer, Liability [Abstract] | |||||
Revenue recognized from beginning liability | 11,460 | $ 1,333 | 7,278 | $ 3,829 | |
Other Current Assets [Member] | |||||
Contract with Customer, Asset and Liability [Abstract] | |||||
Contract assets | 13,815 | 13,815 | 9,859 | ||
Accrued Liabilities [Member] | |||||
Contract with Customer, Asset and Liability [Abstract] | |||||
Contract liabilities | 25,613 | 25,613 | 14,717 | ||
Other Liabilities [Member] | |||||
Contract with Customer, Asset and Liability [Abstract] | |||||
Contract liabilities | $ 5,204 | $ 5,204 | $ 5,197 | ||
Minimum [Member] | |||||
Revenue, Performance Obligation [Abstract] | |||||
Product invoice term | 30 days | ||||
Product warranty period | 1 month | ||||
Maximum [Member] | |||||
Revenue, Performance Obligation [Abstract] | |||||
Product invoice term | 90 days | ||||
Product warranty period | 24 months | ||||
IC [Member] | Minimum [Member] | |||||
Backlog of Orders [Abstract] | |||||
Customer order, expected satisfaction period | 7 days | ||||
Customer order, extended satisfaction period | 2 months | ||||
IC [Member] | Maximum [Member] | |||||
Backlog of Orders [Abstract] | |||||
Customer order, expected satisfaction period | 14 days | ||||
Customer order, extended satisfaction period | 3 months | ||||
FPD [Member] | Minimum [Member] | |||||
Backlog of Orders [Abstract] | |||||
Customer order, expected satisfaction period | 14 days | ||||
FPD [Member] | Maximum [Member] | |||||
Backlog of Orders [Abstract] | |||||
Customer order, expected satisfaction period | 21 days |
REVENUE, Disaggregation of Reve
REVENUE, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | ||
Disaggregation of Revenue [Abstract] | |||||
Revenue | [1] | $ 204,509 | $ 159,763 | $ 394,336 | $ 311,830 |
IC [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | 145,799 | 111,991 | 275,560 | 216,947 | |
High-end [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | 51,362 | 41,259 | 97,896 | 78,039 | |
Mainstream [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | 94,437 | 70,732 | 177,664 | 138,908 | |
FPD [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | 58,710 | 47,772 | 118,776 | 94,883 | |
High-end [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | 46,610 | 39,401 | 92,886 | 74,046 | |
Mainstream [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | 12,100 | 8,371 | 25,890 | 20,837 | |
Taiwan [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | [1] | 69,852 | 59,002 | 137,693 | 115,592 |
China [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | [1] | 53,691 | 23,730 | 99,645 | 44,727 |
Korea [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | [1] | 40,769 | 40,239 | 80,283 | 79,022 |
United States [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | [1] | 30,335 | 27,150 | 57,511 | 53,754 |
Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | [1] | 9,506 | 9,256 | 18,420 | 17,832 |
Other [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | [1] | 356 | 386 | 784 | 903 |
Over Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | 192,770 | 144,697 | 363,034 | 285,982 | |
At a Point in Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Revenue | $ 11,739 | $ 15,066 | $ 31,302 | $ 25,848 | |
[1] | This table disaggregates revenue by the location in which it was earned. |
LEASES, Summary (Details)
LEASES, Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Feb. 28, 2021 | Jan. 31, 2021 | May 01, 2022 | Oct. 31, 2021 | |
Finance Leases [Abstract] | ||||
Finance lease amount | $ 34,740 | $ 38,372 | ||
$7.2 Million Finance Lease [Member] | ||||
Finance Leases [Abstract] | ||||
Finance lease contract term | 5 years | |||
Finance lease amount | $ 7,200 | |||
Early buyout option to purchase tool | $ 2,400 | |||
Finance lease interest implicit rate | 1.08% | |||
$35.5 Million Finance Lease [Member] | ||||
Finance Leases [Abstract] | ||||
Finance lease contract term | 5 years | |||
Finance lease amount | $ 35,500 | |||
Early buyout option to purchase tool | $ 14,100 | |||
Finance lease interest implicit rate | 1.58% | |||
$35.5 Million Finance Lease [Member] | Minimum [Member] | ||||
Finance Leases [Abstract] | ||||
Outstanding committed balance for cross default provision | $ 5,000 | |||
Monthly [Member] | $7.2 Million Finance Lease [Member] | ||||
Finance Leases [Abstract] | ||||
Finance lease monthly payments | $ 100 | |||
First Three Months [Member] | $35.5 Million Finance Lease [Member] | ||||
Finance Leases [Abstract] | ||||
Finance lease monthly payments | 40 | |||
Following Nine Months [Member] | $35.5 Million Finance Lease [Member] | ||||
Finance Leases [Abstract] | ||||
Finance lease monthly payments | 600 | |||
Forty Eight Months [Member] | $35.5 Million Finance Lease [Member] | ||||
Finance Leases [Abstract] | ||||
Finance lease monthly payments | $ 500 |
LEASES, Information on Operatin
LEASES, Information on Operating and Finance Leases included on Balance Sheet (Details) - USD ($) $ in Thousands | May 01, 2022 | Oct. 31, 2021 |
Operating and Finance Leases included in Consolidated Balance Sheets [Abstract] | ||
ROU Assets - Operating Leases | $ 4,191 | $ 5,581 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
ROU Assets - Finance Leases | $ 39,405 | $ 40,827 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Operating Lease Liability [Abstract] | ||
Operating Lease Liability - Current | $ 1,850 | $ 2,273 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating Lease Liability, Noncurrent | $ 2,280 | $ 3,246 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Lease Liabilities - Operating Leases | $ 4,130 | $ 5,519 |
Finance Lease Liability [Abstract] | ||
Finance Lease Liability, Current | $ 6,901 | $ 7,289 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term Debt, Current Maturities | Long-term Debt, Current Maturities |
Finance Lease Liability, Noncurrent | $ 27,839 | $ 31,083 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt, Excluding Current Maturities | Long-term Debt, Excluding Current Maturities |
Lease Liabilities - Finance Leases | $ 34,740 | $ 38,372 |
LEASES, Future Lease Payments U
LEASES, Future Lease Payments Under Noncancelable Operating and Finance Leases (Details) - USD ($) $ in Thousands | May 01, 2022 | Oct. 31, 2021 |
Future Lease Payments Under Noncancelable Operating Leases [Abstract] | ||
Remainder of fiscal year 2022 | $ 1,092 | |
2023 | 1,297 | |
2024 | 773 | |
2025 | 608 | |
2026 | 373 | |
Thereafter | 144 | |
Total Lease Payments | 4,287 | |
Imputed interest | (157) | |
Operating lease liabilities | 4,130 | $ 5,519 |
Future Lease Payments Under Noncancelable Finance Leases [Abstract] | ||
Remainder of fiscal year 2022 | 3,947 | |
2023 | 6,938 | |
2024 | 6,938 | |
2025 | 18,013 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | 35,836 | |
Imputed interest | (1,096) | |
Finance lease liabilities | $ 34,740 | $ 38,372 |
LEASES, Lease Cost (Details)
LEASES, Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Lease, Cost [Abstract] | ||||
Operating lease costs | $ 569 | $ 724 | $ 1,158 | $ 1,389 |
Short-term lease costs | 142 | 39 | 263 | 86 |
Variable lease costs | 153 | 157 | 276 | 301 |
Interest on finance lease liabilities | 92 | 166 | 230 | 201 |
Amortization of ROU assets | $ 711 | $ 455 | $ 1,421 | $ 455 |
LEASES, Operating and Finance L
LEASES, Operating and Finance Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Supplemental Cash Flows Information: [Abstract] | |||||
Operating cash flows used for operating leases | $ 589 | $ 627 | $ 1,150 | $ 1,229 | |
Operating cash flows used for finance leases | 134 | 166 | 277 | 201 | |
Financing cash flows used for finance leases | 1,601 | 864 | 3,632 | 864 | |
ROU assets obtained in exchange for operating lease obligations | 1 | 99 | 32 | 367 | |
ROU assets obtained in exchange for finance lease obligations | $ 0 | $ 7,200 | $ 0 | $ 42,672 | |
Weighted Average Lease Terms, Discount Rates [Abstract] | |||||
Operating leases, Weighted-average remaining lease term | 3 years 3 months 18 days | 3 years 3 months 18 days | 3 years 6 months | ||
Operating leases, Weighted-average discount rate | 2.40% | 2.40% | 2.40% | ||
Finance leases, Weighted-average remaining lease term | 2 years 8 months 12 days | 2 years 8 months 12 days | 3 years 3 months 18 days | ||
Finance leases, Weighted-average discount rate | 1.50% | 1.50% | 1.50% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Share-based Compensation [Abstract] | ||||
Maximum number of shares of common stock that may be issued (in shares) | 4,000,000 | 4,000,000 | ||
Expense incurred | $ 1,584 | $ 1,422 | $ 3,041 | $ 2,723 |
Income tax benefits of share-based compensation | 104 | 62 | 188 | 108 |
Share-based compensation cost capitalized | 0 | 0 | 0 | 0 |
Cost of Goods Sold [Member] | ||||
Share-based Compensation [Abstract] | ||||
Expense incurred | 182 | 97 | 324 | 208 |
Selling, General and Administrative [Member] | ||||
Share-based Compensation [Abstract] | ||||
Expense incurred | 1,243 | 1,207 | 2,424 | 2,304 |
Research and Development [Member] | ||||
Share-based Compensation [Abstract] | ||||
Expense incurred | 159 | 118 | 293 | 211 |
Restricted Stock [Member] | ||||
Share-based Compensation [Abstract] | ||||
Expense incurred | $ 1,316 | $ 1,313 | $ 2,683 | $ 2,484 |
Restricted Stock [Abstract] | ||||
Number of shares granted in period (in shares) | 0 | 15,000 | 535,400 | 556,200 |
Weighted-average grant-date fair value of awards (in dollars per share) | $ 0 | $ 12.65 | $ 19.28 | $ 11.17 |
Shares outstanding at balance sheet date (in shares) | 891,429 | 1,022,327 | 891,429 | 1,022,327 |
Estimated Expenses Not Yet Incurred [Abstract] | ||||
Compensation cost not yet recognized | $ 10,779 | $ 9,762 | $ 10,779 | $ 9,762 |
Weighted-average amortization period for cost not yet recognized (in years) | 2 years 9 months 18 days | 2 years 10 months 24 days | 2 years 9 months 18 days | 2 years 10 months 24 days |
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 | |||
Stock Options [Member] | ||||
Share-based Compensation [Abstract] | ||||
Expense incurred | $ 221 | $ 54 | $ 259 | $ 138 |
Stock options activity [Abstract] | ||||
Contractual term | 10 years | |||
Number of options granted in period (in shares) | 0 | 0 | 0 | |
Cash received from option exercised | $ 438 | 309 | $ 4,149 | $ 967 |
Estimated Expenses Not Yet Incurred [Abstract] | ||||
Compensation cost not yet recognized | $ 52 | $ 232 | $ 52 | $ 232 |
Weighted-average amortization period for cost not yet recognized (in years) | 8 months 12 days | 1 year 4 months 24 days | 8 months 12 days | 1 year 4 months 24 days |
Outstanding and exercisable option awards [Roll Forward] | ||||
Outstanding at end of period (in shares) | 718,213 | 718,213 | ||
Exercisable at end of period (in shares) | 693,987 | 693,987 | ||
Weighted-Average Exercise Price [Abstract] | ||||
Outstanding at end of period (in dollars per share) | $ 9.90 | $ 9.90 | ||
Exercisable at end of period (in dollars per share) | $ 9.90 | $ 9.90 | ||
Weighted-Average Remaining Contractual Life (in years) [Abstract] | ||||
Outstanding at end of period | 3 years 6 months | |||
Exercisable at end of period | 3 years 4 months 24 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding at end of period | $ 3,657 | $ 3,657 | ||
Exercisable at end of period | 3,531 | $ 3,531 | ||
Stock Options [Member] | Minimum [Member] | ||||
Share-based Compensation [Abstract] | ||||
Award vesting period | 1 year | |||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation [Abstract] | ||||
Award vesting period | 4 years | |||
ESPP [Member] | ||||
Share-based Compensation [Abstract] | ||||
Expense incurred | $ 47 | $ 55 | $ 99 | $ 101 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Effective Income and Statutory Tax Rate [Abstract] | |||||
Effective tax rate | 25.10% | 18.50% | 25.50% | 20.50% | |
U.S. statutory rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Income Tax Examination [Abstract] | |||||
Earliest open tax year | 2016 | ||||
Unrecognized Tax Benefits [Abstract] | |||||
Unrecognized tax benefits related to uncertain tax positions | $ 4,629 | $ 4,629 | $ 3,757 | ||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 4,629 | 4,629 | 3,757 | ||
Accrued interest and penalties related to uncertain tax positions | $ 357 | $ 357 | $ 223 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Calculation of Basic and Diluted Earnings Per Share [Abstract] | ||||
Net income attributable to Photronics, Inc. shareholders | $ 27,432 | $ 10,526 | $ 50,496 | $ 18,562 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Earnings used for diluted earnings per share | $ 27,432 | $ 10,526 | $ 50,496 | $ 18,562 |
Weighted-average Common Shares Computations [Abstract] | ||||
Weighted-average common shares used for basic earnings per share (in shares) | 60,606 | 62,054 | 60,382 | 62,265 |
Effect of Dilutive Securities [Abstract] | ||||
Share-based payment awards (in shares) | 539 | 514 | 659 | 521 |
Potentially dilutive common shares (in shares) | 539 | 514 | 659 | 521 |
Weighted-average common shares used for diluted earnings per share (in shares) | 61,145 | 62,568 | 61,041 | 62,786 |
Basic earnings per share (in dollars per share) | $ 0.45 | $ 0.17 | $ 0.84 | $ 0.30 |
Diluted earnings per share (in dollars per share) | $ 0.45 | $ 0.17 | $ 0.83 | $ 0.30 |
Antidilutive Securities [Abstract] | ||||
Total potentially dilutive shares excluded (in shares) | 427 | 293 | 626 | 559 |
Share-based Payment Awards [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Total potentially dilutive shares excluded (in shares) | 427 | 293 | 626 | 559 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | |
May 29, 2022USD ($)Operation | May 01, 2022USD ($) | |
Commitment and Contingencies [Abstract] | ||
Outstanding commitments for capital expenditure | $ 115.1 | |
Subsequent Event [Member] | ||
Commitment and Contingencies [Abstract] | ||
Period of audit | 3 years | |
Contingency loss recorded | $ 2.2 | |
Minimum [Member] | Subsequent Event [Member] | ||
Commitment and Contingencies [Abstract] | ||
Range of estimated contingency loss | 2.2 | |
Maximum [Member] | Subsequent Event [Member] | ||
Commitment and Contingencies [Abstract] | ||
Range of estimated contingency loss | $ 3.7 | |
China [Member] | Subsequent Event [Member] | ||
Commitment and Contingencies [Abstract] | ||
Number of operations | Operation | 1 |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | ||||
Other comprehensive income, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 823,692 | |||
Ending Balance | 834,399 | 834,399 | ||
Accumulated Other Comprehensive Income [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 10,565 | 32,029 | 20,571 | 17,958 |
Ending Balance | (22,919) | 35,192 | (22,919) | 35,192 |
Foreign Currency Translation Adjustments [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 11,451 | 32,900 | 21,476 | 18,828 |
Ending Balance | (22,097) | 36,052 | (22,097) | 36,052 |
Other [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (886) | (871) | (905) | (870) |
Ending Balance | (822) | (860) | (822) | (860) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Other comprehensive (loss) income | (43,989) | 3,799 | (53,783) | 22,087 |
Foreign Currency Translation Adjustments [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Other comprehensive (loss) income | (44,118) | 3,778 | (53,949) | 22,066 |
Other [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Other comprehensive (loss) income | 129 | 21 | 166 | 21 |
AOCI Attributable to Noncontrolling Interest [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Less: other comprehensive (loss) income attributable to noncontrolling interests | (10,505) | 636 | (10,293) | 4,853 |
Foreign Currency Translation Adjustments [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Less: other comprehensive (loss) income attributable to noncontrolling interests | (10,570) | 626 | (10,376) | 4,842 |
Other [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Less: other comprehensive (loss) income attributable to noncontrolling interests | $ 65 | $ 10 | $ 83 | $ 11 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | May 01, 2022 | Oct. 31, 2021 |
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 | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Sep. 30, 2020 | |
Shares Repurchase Programs and Preferred Stock Purchase Rights [Abstract] | |||||
Amount remaining under authorization for purchase of additional shares | $ 31,700 | $ 31,700 | |||
Cost of shares repurchased | $ 10,041 | $ 2,522 | $ 23,250 | ||
September 2020 Announced Program [Member] | |||||
Shares Repurchase Programs and Preferred Stock Purchase Rights [Abstract] | |||||
Stock repurchased authorized amount | $ 100,000 | ||||
Stock repurchase program - commencement date | Sep. 16, 2020 | ||||
Number of shares repurchased (in shares) | 0 | 797 | 188 | 2,019 | |
Cost of shares repurchased | $ 0 | $ 10,041 | $ 2,522 | $ 23,250 | |
Average price paid per share (in dollars per share) | $ 0 | $ 12.59 | $ 13.43 | $ 11.51 |