INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2024

INCOME TAXES [Abstract]

Income Before Income Tax Provision for Domestic and Foreign

Income before the income tax provisions consists of the following:

	Year Ended
	October 31, 2024		October 31, 2023			October 31, 2022
United States	$	20,145	$	(1,737	)	$	1,813
Foreign		227,270		271,683			237,220
	$	247,415	$	269,946		$	239,033

Income Tax Provision

The components of our income tax provisions are presented below.

	Year Ended
	October 31, 2024			October 31, 2023			October 31, 2022
Current:
Federal	$	-		$	-		$	-
State		95			14			1
Foreign		64,861			71,225			58,981
		64,956			71,239			58,982
Deferred:
Federal		-			-			-
State		13			12			10
Foreign		(1,402	)		(939	)		799
		(1,389	)		(927	)		809
Total	$	63,567		$	70,312		$	59,791

Income Tax Rate Reconciliation

The table below presents a reconciliation of income taxes calculated by applying the statutory U.S. federal income tax rate to our income tax provisions of the reporting periods.

	Year Ended
	October 31, 2024			October 31, 2023			October 31, 2022
U.S. federal income tax at statutory rate	$	51,957		$	56,689		$	50,197
Changes in valuation allowance		(1,986	)		(256	)		(1,462	)
Foreign rate differential		10,695			11,394			7,941
Tax credits		(5,209	)		(2,425	)		(1,368	)
Uncertain tax positions, including reserves, settlements and resolutions		6,226			3,328			3,214
Other, net		1,884			1,582			1,269
Income tax provision	$	63,567		$	70,312		$	59,791

Reporting Period	U.S. Statutory Tax Rates		Photronics Effective Tax Rates		Primary Reasons for Differences
2024		21.0%		25.7%	Non-U.S. pre-tax income being taxed at higher statutory rates in non-U.S. jurisdictions, the establishment of uncertain tax positions in non-U.S. jurisdiction and loss jurisdiction pre-tax losses not being benefited due to valuation allowances.
2023		21.0%		26.0%	Non-U.S. pre-tax income being taxed at higher statutory rates in non-U.S. jurisdictions, the establishment of uncertain tax positions in non-U.S. jurisdiction and loss jurisdiction pre-tax losses not being benefited due to valuation allowances.
2022		21.0%		25.0%	Non-U.S. pre-tax income being taxed at higher statutory rates in non-U.S. jurisdictions; and the establishment of uncertain tax positions in non-U.S. jurisdiction.

Net Deferred Income Tax Assets

The net deferred income tax assets consist of the following:

	As of
	October 31, 2024			October 31, 2023
Deferred income tax assets
Net operating losses	$	18,941		$	26,377
Reserves not currently deductible		9,892			8,776
Tax credit carryforwards		12,550			10,442
Share-based compensation		3,102			1,892
Property, plant and equipment		10,710			9,844
Research intangibles		2,721			-
Lease liabilities		4,116			5,743
		62,032			63,074
Valuation allowances		(30,633	)		(32,619	)
		31,399			30,455
Deferred income tax liabilities
ROU assets		(7,351	)		(8,193	)
Other		(1,458	)		(1,200	)
		(8,809	)		(9,393	)
Net deferred income tax assets	$	22,590		$	21,062
Classification
Deferred income tax assets	$	23,059		$	21,297
Other liabilities		(469	)		(235	)
	$	22,590		$	21,062

Operating Loss Carryforwards

The following tables present our available operating loss and credit carryforwards as of October 31, 2024, and their related expiration periods.

Operating Loss Carryforwards	Amount		Expiration Period
Federal	$	55,729	2030-Indefinite
State	$	135,736		2025-Indefinite
Foreign	$	165		2025-2034

Tax Credit Carryforwards

Tax Credit Carryforwards	Amount		Expiration Period
Federal research and development	$	6,042		2025-2044
Federal 48D credit	$	2,276		2043-2044
State	$	5,357		2025-2038

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is presented below. The amounts in the table include settlements of non-U.S. audits.

	Year Ended
	October 31, 2024			October 31, 2023			October 31, 2022
Balance at beginning of year before interest and penalties	$	8,332		$	5,204		$	3,534
(Reductions) additions of tax positions in prior years		86			209			(355	)
Additions based on current year tax positions		6,139			3,361			2,892
Settlements		(835	)		(423	)		(848	)
Lapses of statutes of limitations		(30	)		(19	)		(19	)
Balance at end of year before interest and penalties		13,692			8,332			5,204
Interest and penalties		1,028			576			395
Balance at end of year including interest and penalties	$	14,720		$	8,908		$	5,599

Unrecognized Tax Benefits

The following table presents additional information on our uncertain tax positions, as of the balance sheet dates.

	October 31, 2024		October 31, 2023
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	14,720	$	8,908
Accrued interest and penalties related to uncertain tax positions	$	1,028	$	576

Income Tax Payments and Refunds

The table below presents income taxes paid and refunds of income taxes received during the reporting periods.

	Year Ended
	October 31, 2024		October 31, 2023		October 31, 2022
Income taxes paid	$	62,520	$	70,362	$	37,770
Income tax refunds received	$	2,519	$	485	$	388