XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.25.1

PDMCX JOINT VENTURE | 6 Months Ended
--- | ---
May 04, 2025
PDMCX JOINT VENTURE [Abstract] |
PDMCX JOINT VENTURE | NOTE 6 - PDMCX JOINT VENTURE In January 2018, Photronics, Inc., through its wholly owned Photronics Singapore PTE. LTD. 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 the Company’s IC business in Xiamen, China. The joint venture, which the Company refers to as “PDMCX”, was established to develop and manufacture photomasks for semiconductors. The Company entered into this joint venture to enable the Company 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 the Company to offer advanced-process technology to the Company’s customers. Under the joint venture agreement, should either Photronics’ or DNP’s ownership interest fall below 20.0% for a period of more than six consecutive months, such party (an “exiting party”) has the option to sell to the other party, and the other party has the option to purchase from such exiting party, the exiting party’s remaining ownership interest. In either case, the sales of ownership interests would be at the exiting party’s ownership percentage of the joint venture’s net book value, with closing to take place within three business days of obtaining required approvals and clearance. The following table presents net income the Company recorded from the operations of PDMCX during the reporting periods.
|  | Three Months Ended |  |  | Six Months Ended |
|  | May 4, 2025 |  |  | April 28, 2024 |  |  | May 4, 2025 |  |  | April 28, 2024 |
Net income from PDMCX |  | $ | 7,557 |  |  | $ | 5,464 |  |  | $ | 10,925 |  |  | $ | 11,928 |
As required by the guidance in ASC Topic 810 - “Consolidation”, the Company evaluated the Company’s involvement in PDMCX for the purpose of determining whether the Company should consolidate its results in the Company’s financial statements. The initial step of the Company’s evaluation was to determine whether PDMCX was a VIE. Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial support, the Company determined that it is a VIE. Having made this determination, the Company then assessed whether the Company was the primary beneficiary of the VIE and concluded that the Company was the primary beneficiary during the current and prior years reporting periods; thus, as required, the PDMCX financial results have been consolidated with Photronics. The Company’s conclusion was based on the fact that the Company held a controlling financial interest in PDMCX (which resulted from the Company’s having the power to direct the activities that most significantly impacted its economic performance) and had both the obligation to absorb losses and the right to receive benefits that could potentially be significant to PDMCX. The Company’s conclusion that the Company had the power to direct the activities that most significantly affected the economic performance of PDMCX during the current and prior year periods were based on the Company’s right to appoint the majority of its Board of Directors, which has, among others, the powers to manage the business (through its rights to appoint and evaluate PDMCX’s management), incur indebtedness, enter into agreements and commitments, and acquire and dispose of PDMCX’s assets. In addition, as a result of the 50.01% variable interest the Company held during the current and prior year periods, the Company had the obligation to absorb losses, and the right to receive benefits, which could potentially be significant to PDMCX. The following table presents the carrying amounts of PDMCX assets and liabilities included in the Company’s consolidated balance sheets. General creditors of PDMCX do not have recourse to the assets of Photronics (other than the net assets of PDMCX); therefore, the Company’s maximum exposure to loss from PDMCX is the Company’s interest in the carrying amount of the net assets of the joint venture.
|  | May 4, 2025 |  |  | October 31, 2024 |
Classification |  | Carrying Amount |  |  | Photronics Interest |  |  | Carrying Amount |  |  | Photronics Interest |
Current assets |  | $ | 171,717 |  |  | $ | 85,876 |  |  | $ | 174,059 |  |  | $ | 87,047 |
Noncurrent assets |  |  | 167,187 |  |  |  | 83,610 |  |  |  | 151,039 |  |  |  | 75,535 |
Total assets |  |  | 338,904 |  |  |  | 169,486 |  |  |  | 325,098 |  |  |  | 162,582 |
Current liabilities |  |  | 39,477 |  |  |  | 19,742 |  |  |  | 40,691 |  |  |  | 20,350 |
Noncurrent liabilities |  |  | 2,389 |  |  |  | 1,195 |  |  |  | 3,320 |  |  |  | 1,660 |
Total liabilities |  |  | 41,866 |  |  |  | 20,937 |  |  |  | 44,011 |  |  |  | 22,010 |
Net assets |  | $ | 297,038 |  |  | $ | 148,549 |  |  | $ | 281,087 |  |  | $ | 140,572 |

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
Name: | us-gaap_VariableInterestEntityDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration