UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 FORM 10-K

 (Mark One)

 ☒

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended October 31, 2023

 OR

 ☐

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from ___ to ___

 Commission file number 0-15451

 (Exact name of registrant as specified in its charter)

 Connecticut

 06-0854886

 (State or other jurisdiction of incorporation or organization)

 (IRS Employer Identification No.)

 15 Secor Road, Brookfield, Connecticut 06804

 (Address of principal executive offices)(Zip Code)

 ( 203) 775-9000

 (Registrant's telephone number, including area code)

 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 COMMON

 PLAB

 NASDAQ Global Select Market

 Securities registered pursuant to Section 12(g) of the Act:

 None

 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
 of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405
 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting
 company. See definition of "accelerated filer," "large accelerated filer," "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

 Large Accelerated Filer

 Accelerated Filer

 Non-Accelerated Filer

 Smaller Reporting Company

 ☐

 Emerging Growth company

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
 new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal
 control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act ((§15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

 Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to
 §240.10D-1(b).

 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

 As of April 30, 2023, which was the last business day of the registrant's most recently completed second fiscal quarter, the aggregate market value
 of the shares of the registrant's common stock held by non-affiliates was approximately $ 879,109,827 (based upon the closing price of
 $14.46 per share as reported by the NASDAQ Global Select Market on that date).

 As of December 14, 2023, 62,604,986
 shares of the registrant's common stock were outstanding.

 DOCUMENTS INCORPORATED BY REFERENCE

 Portions of our Proxy Statement for the
 2024 Annual Meeting of Shareholders to
 be filed with the U.S. Securities and Exchange Commission pursuant to regulation 14A under the Securities Exchange Act of 1934, as amended are incorporated by reference into Part III of this Annual Report on Form 10-K.

 ANNUAL REPORT ON FORM 10-K

 OCTOBER 31, 2023

 Page

 Glossary of Terms and Acronyms

 Forward-Looking Statements

 PART I:

 ITEM 1. BUSINESS

 ITEM 1A. RISK FACTORS

 ITEM 1B. UNRESOLVED STAFF COMMENTS

 ITEM 1C. CYBERSECURITY

 ITEM 2. PROPERTIES

 ITEM 3. LEGAL PROCEEDINGS

 ITEM 4. MINE SAFETY DISCLOSURES

 PART II:

 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 ITEM 6. [RESERVED]

 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 ITEM 9A. CONTROLS AND PROCEDURES

 ITEM 9B. OTHER INFORMATION

 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

 PART III:

 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 ITEM 11. EXECUTIVE COMPENSATION

 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 PART IV:

 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 ITEM 16. FORM 10-K SUMMARY

 Glossary of Terms and Acronyms

 Definitions of certain terms and acronyms that may appear in this report are provided below.

 AMOLED

 Active-matrix organic light-emitting diode. A technology used in mobile devices.

 Application-specific IC

 An integrated circuit customized for a particular use, rather than intended for general-purpose use

 ASC

 Accounting Standards Codification

 ASP

 Average Selling Price

 ASU

 Accounting Standards Update

 COVID-19

 Covid virus 2019, an infectious disease that was declared a pandemic by the World Health Organization in March 2020

 DNP

 Dai Nippon Printing Co., Ltd.

 EUV

 A wafer lithography technology using the industry standard extreme ultraviolet (EUV) wavelength. EUV photomasks function by selectively reflecting or blocking light, in contrast to conventional photomasks which function by selectively
 transmitting or blocking light

 Exchange Act

 The Securities Exchange Act of 1934 (as amended)

 FASB

 Financial Accounting Standards Board

 Form 10-K

 Annual Report on Form 10-K

 Form 10-Q

 Quarterly Report on Form 10-Q

 FPDs

 Flat-panel displays, or "displays"

 Generation

 In reference to flat panel displays, refers to the size range of the underlying substrate to which a photomask is applied. Higher generation (or "G") numbers represent larger substrates

 High-end (photomasks)

 For IC, photomasks that are 28nm or smaller; for FPD, AMOLED, G10.5+, and LTPS photomasks

 ICs

 Integrated circuits, or semiconductors

 LIBOR

 London Inter-Bank Offered Rate

 LTPS

 Low-Temperature Poly Silicon, a polycrystalline silicon synthesized at relatively low temperatures; polycrystalline silicon in thin-film transistors (TFTs) are used in liquid-crystal display (LCD) flat panels and to drive organic
 light-emitting diode (OLED) displays

 MLA

 Master Lease Agreement

 Optical proximity correction

 A photolithography enhancement technique applied to compensate for the limitations of light to maintain the edge placement integrity of an original design, imaged onto a silicon wafer, for further processing to an etched pattern.

 PDMCX

 Xiamen American Japan Photronics Mask Co., Ltd., a joint venture of Photronics and DNP

 Phase-shift photomasks

 Photomasks that take advantage of the interference generated by phase differences to improve image resolution in photolithography

 Pure-play foundry

 A company that does not produce a significant volume of IC products of its own design, but rather operates IC fabrication plants dedicated to producing ICs for other companies

 RMB

 Chinese renminbi

 ROU (assets)

 Right-of-use asset

 SEC

 Securities and Exchange Commission

 Securities Act

 The Securities Act of 1933 (as amended)

 U.S. GAAP

 Accounting principles generally accepted in the United States of America

 Wafer

 A wafer, or silicon wafer, is a thin slice of semiconductor material that, in the fabrication of microelectronics, serves as the substrate for microelectronic devices built in and upon the wafer

 All references to "2023", "2022", and "2021" are to our fiscal years ended on October 31 of those years, unless otherwise stated.

 Forward-Looking Statements

 This Form 10-K contains forward-looking statements, as defined by the SEC. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements made by us, or on our behalf.
 Forward-looking statements are statements other than statements of historical fact, including, without limitation, those statements that include such words as "anticipates", "believes", "estimates", "expects", "intends", "may", "plans",
 "predicts", and similar expressions, and, without limitation, may address our future plans, objectives, goals, strategies, events, or performance, as well as underlying assumptions and other statements that are other than statements of historical
 facts. On occasion, in other documents filed with the SEC, press releases, conferences, or by other means, we may discuss, publish, disseminate, or otherwise make available, forward-looking statements, including statements contained within Part
 II, Item 7 – "Management's Discussion & Analysis of Financial Condition and Results of Operations" of this Form 10-K.

 Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. Our expectations, beliefs and projections are expressed in good
 faith and are believed by us to have a reasonable basis, including, without limitation, management's examination of historical operating trends, information contained in our records, and information we've obtained from other parties. However, we
 can offer no assurance that our expectations, beliefs, or projections will be realized, accomplished or achieved.

 Forward-looking statements within this Form 10-K speak only as of the date of its filing, and we undertake no obligation to update any such statements to reflect changes in events or circumstances that may
 subsequently occur. Users of this Form 10-K are cautioned that various factors may cause actual results to differ materially from those contained in any forward-looking statements found within this Form 10-K and that they should not place undue
 reliance on any forward-looking statement. In addition, all forward-looking statements, whether written or oral and whether made by us or on our behalf, are expressly qualified by the risk factors provided in Part I, Item 1A "Risk Factors" of
 this Form 10-K.

 ITEM 1.

 BUSINESS

 General

 Photronics, Inc. (and its subsidiaries, collectively referred to herein as "Photronics", the "Company", "we", "our", or "us") is the world's leading manufacturer 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 ICs and FPDs and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates during
 the fabrication of ICs, a variety of FPDs and, to a lesser extent, other types of electrical and optical components. We have eleven manufacturing facilities, which are located in Taiwan (3), China (2), Korea, the United States (3), and Europe (2).

 Our principal executive offices are located at 15 Secor Road, Brookfield, Connecticut, 06804, telephone (203) 775-9000. Our website address is  We make available, free of charge through our
 website, our Forms 10-K, Definitive Proxy Statements on Schedule 14A, Forms 10-Q, Current Reports on Form 8-K, and any amendments to these reports as soon as reasonably practicable after such materials are electronically filed with or furnished to
 the SEC. The information found on, or incorporated into, our website is not part of this or any other report we file with or furnish to the SEC. The SEC also maintains a website at  that contains reports, proxy statements and
 other information regarding SEC registrants, including Photronics.

 Sales

 We manufacture photomasks, which are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates. The photomasks we manufacture incorporate circuit designs provided to us on a confidential
 basis by our customers. Photomasks are typically sold in sets comprised of layers, with each layer having a distinct pattern that is etched onto a different photomask. The resulting series of photomasks is then used to image the circuit patterns
 onto each successive layer of a semiconductor wafer or FPD substrate. The typical manufacturing process for a photomask involves the receipt and conversion of circuit design data to manufacturing pattern data. A lithography system then exposes the
 circuit pattern onto a photomask blank. The exposed areas are developed and etched to imprint the pattern on the photomask. The photomask is then inspected for defects and conformity to the customer's design data. After the repair of any defects,
 the photomask is cleaned, any required pellicles (protective translucent cellulose membranes) are applied and, after final inspection, the photomask is shipped to the customer.

 "High-end" photomasks support 28 nanometer and smaller design nodes for ICs and Generation 10.5+, AMOLED, and LTPS display-based process technologies for FPDs. However, 32 nanometer and above geometries for
 semiconductors and Generation 8 and below (excluding AMOLED and LTPS) process technologies for displays, which we refer to as "mainstream" photomasks, constitute the majority of designs currently being fabricated in volume. At these geometries and
 at various high-end nodes, we can produce full lines of photomasks. Moreover, there is no significant technology employed by our competitors that is not available to us. We expect advanced-generation designs to continue to be developed, and we
 believe we are well positioned to service an increasing volume of this business as a result of our ongoing investments in manufacturing processes and technology in the regions where our customers are located.

 Generally, Photronics and each of its customers engage in a qualification and correlation process before we become an approved supplier. Thereafter, based on the customer's specifications, we typically negotiate
 pricing parameters for the customer's order. Some prices may remain in effect for an extended period of time. In many instances, we enter into sales arrangements with an understanding that, as long as our performance is competitive, we will receive
 a specified percentage of that customer's photomask orders.

 The first several layers of photomasks are sometimes required to be delivered to customers within twenty-four hours from the time we receive customer design data. Because of the short period
 between order and shipment dates (typically from one day to three weeks) for a significant amount of our revenue, the dollar amount of our current backlog is not a reliable indicator of future revenue. However, the demand for some IC photomasks can
 extend over the traditional time period; thus, for some products, our backlog can expand to as long as two to three months.

 The ability to manufacture high-quality photomasks within short time periods is dependent upon robust processes, efficient manufacturing methods, high production yield, available manufacturing capacity, and high
 equipment reliability. We work to meet these requirements by making significant investments in research and development, manufacturing capacity, preventive and on-going equipment maintenance programs, manufacturing and data processing systems, and
 by utilizing statistical process control methods to optimize our manufacturing processes and reduce cycle times.

 Quality control is an integral part of the photomask manufacturing process. Photomasks are manufactured in temperature, humidity, and particulate-controlled clean rooms because of the high level of precision, quality
 and manufacturing yield required. Each photomask is inspected several times during the manufacturing process to ensure compliance with customer specifications. We continue to make substantial investments in equipment to produce, inspect and repair
 photomasks to ensure that customer specifications are met.

 We conduct our sales and marketing activities primarily through a staff of full-time sales personnel and customer service representatives who work closely with the Company's management and technical personnel. We
 support non-U.S. customers through both our domestic and foreign facilities and consider our presence in non-U.S. markets to be an important factor in attracting new customers, as it provides global solutions to our customers, minimizes delivery
 time, and allows us to serve customers that utilize manufacturing foundries outside of the United States, principally in Asia. See Notes 9 and 17 to our consolidated financial statements in Part II, Item 8 of this report for the amount of revenue
 and long-lived assets attributable to each of our geographic areas of operations.

 Research and Development

 We primarily conduct research and development activities for IC photomasks at our Boise, Idaho, facility and, to a lesser degree, Photronics DNP Mask Corporation ("PDMC"), our joint-venture subsidiary in Taiwan.
 Research and development for FPD photomasks is primarily conducted at Photronics Korea, Ltd., our subsidiary in South Korea. Additionally, we conduct site-specific research and development programs to support local, strategic customer roadmaps. All
 of these research and development programs and activities are undertaken to advance our competitiveness in technology and manufacturing efficiency. We also conduct application-oriented research and development, including data and service technology
 to support the integration of photomasks into customer processes. Currently, research and development for IC photomasks are primarily focused on photomasks enabling wafer geometries of 14 nanometer node and smaller, including EUV and, for FPDs, on
 Generations 8 and 10 substrate size photomasks for new TV technologies, emerging opportunities for micro- and mini-LED displays, and photomask technology for the complex FPD photomasks required in the manufacture of advanced mobile displays, such
 as AMOLED. We believe these core competencies will continue to be a critical part of semiconductor and FPD manufacturing, as wafer and FPD substrate optical lithography continues to enable new high-end ICs and displays. We incurred research and
 development expenses of $13.7 million, $18.3 million, and $18.5 million in 2023, 2022 and 2021, respectively. It is our belief that we own, control, or license the proprietary information (including trade secrets and patents) that we need to
 continue to meet our customers' requirements. We also believe that our intellectual property and trade secret know-how will continue to be important to maintaining technical leadership in the field of photomasks.

 Markets

 The customers for photomasks are primarily semiconductor and FPD manufacturers and to a lesser degree fabless design and equipment companies serving those industries. The size of the photomask market is driven by the
 number of designs released to support IC and FPD product introductions and manufacturing expansions. The photomasks required for those designs are manufactured by independent merchant manufacturers like Photronics and by semiconductor and FPD
 manufacturers that produce photomasks for their own use (captive manufacturers). In rare instances, captive manufacturers also sell to other semiconductor or FPD manufacturers.

 The value of masks produced by merchant suppliers has transitioned from a period when there was a trend toward the divesture or closing of captive photomask operations by semiconductor manufacturers, and an increase in
 the share of the market served by independent merchant manufacturers. This trend was driven by the increased complexity and cost of capital equipment used in manufacturing photomasks and the lack of economy of scale for many semiconductor and FPD
 manufacturers to effectively utilize the equipment.

 That period was followed by a period during which, in order to reach certain roadmap milestones, some captive mask facilities invested at faster rates than independent manufacturers, and the revenue share of market
 transitioned to masks being majority captive-supplied. More recently, there has been a tendency of more production being directed to the independent merchant manufacturers, and market share has begun moving toward the independents. Nevertheless,
 most captive manufacturers maintain business and technology relationships with independent photomask manufacturers for ongoing support.

 We support customers across the full spectrum of IC production and FPD technologies by manufacturing photomasks using electron beam or optical (laser-based) lithography systems. For IC photomasks, the predominant
 writing technology used for advanced photomasks with fine-scale resolution requirements is electron beam writing systems, while FPD mask fabrication utilizes optical writing systems. These systems are capable of producing the most advanced
 semiconductor and display photomasks for use in an array of products. End markets served with IC photomasks include devices used for microprocessors, memory, telecommunications, the Internet of Things, crypto mining, and other applications. We own
 a number of both high-end and mature electron beam and laser-based lithography systems.

 We sell our products primarily to leading semiconductor and FPD designers and manufacturers. These include integrated device manufacturers, fabless semiconductor companies, and "pure-play" foundries. During 2023, we
 sold our products to approximately 696 customers. Revenue from United Microelectronics Corp. Co., Ltd. accounted for approximately 14%, 15% and 17% of our total revenues in 2023, 2022 and 2021, respectively, and revenue from Samsung Electronics
 Co., Ltd. accounted for approximately 10%, 11% and 12% of our total revenues in those respective years. In addition, revenue from Semiconductor Manufacturing International Corporation accounted for approximately 13%, 5% and 3% of our total revenues
 in 2023, 2022 and 2021, respectively. Our five largest customers, in the aggregate, accounted for approximately 51%, 45% and 43% of our revenue in 2023, 2022 and 2021, respectively. A significant decrease in the amount of revenue from any of these
 customers could have a material adverse effect on our financial performance and business prospects.

 Competition

 The photomask industry is highly competitive, and most of our customers utilize multiple photomask suppliers. Our ability to compete depends primarily upon the consistency of our product quality, timeliness of
 delivery, competitive pricing, technical capability, and service, which we believe are the principal factors considered by customers in selecting their photomask suppliers. An inability to meet these requirements could adversely affect our
 financial condition, results of operations, and cash flows. We also believe that geographic proximity to customers is an important factor in certain markets where cycle time from order to delivery is critical. While some of our competitors may have
 greater financial, sales, marketing, or other resources than Photronics, we believe that we are able to compete effectively because of our dedication to customer service, ongoing investments in state-of-the-art photomask equipment and facilities,
 and experienced technical employees.

 We estimate that, for the types of photomasks we manufacture (IC and FPD), the size of the total market (captive and merchant) is approximately $7.5 billion. Our competitors include Compugraphics International, Ltd.,
 Dai Nippon Printing Co., Ltd (outside of Taiwan and China), Hoya Corporation, LG Innotek Co., Ltd., Shenzhen Newway Photomask Making Co., Ltd., Shenzhen Qingyi Photomask, Ltd., SK-Electronics Co., Ltd., Taiwan Mask Corporation, and Toppan
 Electronics Products Co., Ltd. We also compete with semiconductor and FPD manufacturers' captive photomask manufacturing operations that supply photomasks for internal use and, in some instances, also for external customers and foundries. We expect
 to face continued competition which, in the past, has led to pressure to reduce prices. We believe the pressure to reduce prices, together with the significant investment required in capital equipment to manufacture high-end photomasks will
 continue in the future.

 International Operations

 Revenues from our non-U.S. operations were approximately 86%, 85% and 84% of our total revenues in 2023, 2022 and 2021, respectively. We believe that our ability to serve
 non-U.S. markets is enhanced by our having, among other things, a local presence in the markets we serve. This requires significant investments in financial, managerial, operational, and other resources.

 Operations outside of the United States are subject to inherent risks, including fluctuations in currency exchange rates, political and economic conditions in various countries, legal compliance and regulatory
 requirements, tariffs and other trade barriers, difficulties in staffing and managing international operations, longer accounts receivable collection cycles, potential restrictions on transfers of funds, and potentially adverse tax consequences.
 These factors may have a material adverse effect on our ability to generate revenue outside of the United States and may require us to deploy resources where they could otherwise be used to their greatest advantage and, consequently, may adversely
 affect our financial condition and results of operations. Notes 9 and 17 of our consolidated financial statements, in Part II, Item 8 of this report, respectively, present our revenue and long-lived assets by geographic area.

 Resources

 Raw materials used by Photronics generally include: high precision quartz plates (including large area plates), which are used as photomask blanks and are primarily obtained from Japanese and Korean suppliers;
 pellicles and electronic grade chemicals, which are used in the manufacturing process; and compacts, which are durable plastic containers in which photomasks are shipped. These materials are generally sourced from several suppliers. We believe that
 our utilization of a select group of strategic suppliers enables us to access the most technologically advanced materials available. On an ongoing basis, we continue to consider additional supply sources.

 We typically enter into annual pricing agreements with our suppliers, some of which include volume-based incentives that have resulted in substantial cost savings; these agreements do not require us to purchase minimum
 dollar amounts or quantities of their subject materials.

 We rely on a limited number of equipment suppliers to develop and provide the equipment used in the photomask manufacturing process. Although, historically, we have been able to obtain equipment on a timely basis, an
 inability to obtain or repair equipment when required could have a material adverse effect on our business and results of operations.

 Intellectual Property Rights

 We have developed and hold ownership interests in intellectual property ("IP") rights, in the forms of patents issued in the U.S., and other trademark and trademark registrations in the U.S. and other countries.
 Patents in which we hold ownership interests generally relate to the manufacture of photomasks or the use of photomasks to manufacture other products. While we believe that our IP rights are, and will continue to be, important to our technical
 leadership in the field of photomasks, our operations are not dependent on any one individual IP right. In addition to patenting, when practicable, we further protect our IP rights, and our other proprietary processes and trade secrets, by
 utilizing non-disclosure agreements with employees, customers, and vendors.

 Seasonality

 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 those
 periods.

 Government Contracts

 We are party to a limited number of fixed-price contracts with the U.S. government. Revenues earned from these contracts do not comprise a significant portion of our total revenue.

 Government Regulation

 We are subject to government regulations within the U.S. and in other countries in which we produce or market our products. The effects of compliance with these regulations are currently not material to our results of
 operations, capital expenditures, or competitive position. However, compliance with changes to existing or new regulations may have a material adverse effect on our future results of operations, capital expenditures, or competitive position. We
 discuss the potential impact of our not adhering to a number of these regulations in Item 1A. "Risk Factors", of this Form 10-K. The following is a list of major subjects of the regulations that pertain to our business:

 •

 Regulations, such as those under the Foreign Corrupt practices Act that prohibit providing remuneration to government officials for the purpose of obtaining or securing business in the jurisdictions in which they serve;

 •

 Regulations that require the minimization and proper disposal of the by-products of our manufacturing processes;

 •

 Regulations that require us to provide a safe working environment for our employees;

 •

 Regulations that restrict our ability to transfer assets between operations not within the same legal jurisdiction;

 •

 Regulations that require us to provide information through the submission of government surveys;

 •

 Regulations that require us to maintain an effective system of internal accounting controls;

 •

 Regulations that prohibit us from engaging in business in specified countries, or with specified customers;

 •

 Regulations that require us to protect the personal information of our customers and employees;

 •

 Regulations that require us to accurately determine our liabilities to taxing authorities, and to settle such liabilities within their statutorily prescribed time periods;

 •

 Regulations that require us to withhold and timely remit taxes on our employees' compensation to government authorities;

 •

 Regulations that require us to contribute to government-sponsored social insurance plans;

 •

 Regulations that require us to contribute to employee severance plans;

 •

 Regulations that prohibit us from disseminating material nonpublic information prior to the public announcement of such information;

 •

 Regulations pertaining to financial reporting, insider transactions, executive compensation, and other areas overseen by the SEC and governing bodies in other countries in which our operations are located.

 Human Capital

 As of October 31, 2023, we had approximately 1,885 full-time and part-time employees worldwide. Our business results depend in part on our ability to successfully manage our human capital resources, including
 attracting, identifying, and retaining key talent. Factors that may affect our ability to attract and retain qualified employees include employee morale, our reputation, competition from other employers, and availability of qualified individuals.
 As of October 31, 2023, none of our employees at any of our worldwide facilities was represented by a union. We consider our employee relations to be good. We believe our commitment to our diverse human capital resources is an important component
 of our mission to deliver superior photomasks and customer care. We provide all employees with the opportunity to share their opinions in open dialogues with our human resources department and senior management. We provide all employees a wide
 range of career development opportunities, both formal and informal. Our formal offerings include tuition reimbursement, leadership development experiences and vocational training. The safety of our employees is a paramount value for us.

 We provide mandatory safety trainings in our production facilities, which are designed to focus on empowering our employees with the knowledge and tools they need to make safe choices and to minimize risks. Supervisors
 complete safety management courses as well. The health and wellness of our employees are critical to our success.

 We provide our employees with access to a variety of innovative, flexible and convenient health and wellness programs. Such programs are designed to support employees' physical and mental health by providing tools and
 resources to help them improve or maintain their health status and encourage engagement in healthy behaviors. Additionally, we provide robust compensation and benefits. In addition to salaries, these programs, which vary by country/region, can
 include annual bonuses, stock-based compensation awards, a 401(k) plan with employee matching opportunities, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, family care resources,
 employee assistance programs, and tuition assistance.

 ITEM 1A.

 RISK FACTORS

 Set forth below are discussions of the risk factors we believe can make an investment in our business speculative or risky.

 Concentration Related Risk Factors

 Our dependency on the microelectronics industry, which as a whole is volatile, could create volatility in our demand and have a negative material impact on our business.

 We sell substantially all of our photomasks to semiconductor or FPD designers, manufacturers and foundries, as well as to other high-performance electronics manufacturers. We believe that the demand for photomasks
 depends primarily on design activity rather than sales volume from products using photomask technologies. Consequently, an increase in semiconductor or FPD sales does not necessarily result in a corresponding increase in photomask sales. In
 addition, the reduced use of application-specific ICs, reductions in design complexities, other changes in the technology or methods of manufacturing or designing semiconductors or FPDs, or a slowdown in the introduction of new semiconductor or FPD
 designs could reduce demand for photomasks even if the demand for semiconductors and FPDs increases. Historically, the microelectronics industry has been volatile, with sharp periodic downturns and slowdowns. These negative trends have been
 characterized by, among other things, diminished product demand, excess production capacity, and accelerated erosion of selling prices with a concomitant effect on revenue and profitability.

 We depend on a limited number of suppliers for equipment and raw materials and, if those suppliers fail to timely deliver their products to us, we may be unable to fulfill orders from our customers, which could
 adversely affect our business and results of operations.

 We rely on a limited number of photomask equipment manufacturers to develop, supply, and repair the equipment we use. These equipment manufacturers usually require lead times of twelve months or longer between the
 order date and the delivery of certain photomask imaging and inspection equipment. The failure of our suppliers to develop, deliver or service such equipment on a timely basis due to internal issues, supply chain constraints or government imposed
 restrictions could have a material adverse effect on our business and results of operations. In addition, the manufacturing equipment necessary to produce advanced photomasks could become prohibitively expensive, which could similarly affect us.

 We use high-precision quartz photomask blanks, pellicles, and electronic grade chemicals in our manufacturing processes. There are a limited number of suppliers of these raw materials, and we do not have long-term
 contracts with these suppliers. Any delays or quality problems in connection with significant raw materials, particularly photomask blanks, could cause delays in the shipments of photomasks, which could have a material adverse effect on our
 business and results of operations. The fluctuation of foreign currency exchange rates, with respect to prices of equipment and raw materials used in manufacturing, could also have a material adverse effect on our business and results of
 operations.

 We have been dependent on sales to a limited number of large customers; the loss of any of these customers or a significant reduction in orders from these customers could have a material adverse effect on our revenues
 and results of operations.

 Historically, we have sold a significant proportion of photomasks to a limited number of IC and FPD manufacturers. During 2023, 2022 and 2021, our two largest customers accounted for an aggregate of 27%, 25% and 29%,
 respectively, of our revenue. Our five largest customers accounted for an aggregate of 51%, 45% and 43% of our revenue in 2023, 2022 and 2021, respectively. The loss of a significant customer, a significant reduction or delay in orders from any
 significant customer (including reductions or delays due to customer departures from recent buying patterns), or an unfavorable change in competitive conditions in the semiconductor or FPD industries could have a material adverse effect on our
 financial performance and business prospects. The consolidation of semiconductor manufacturers, or an economic downturn in the semiconductor industry, may increase the likelihood of losing a significant customer and could also have an adverse
 effect on our financial performance and business prospects.

 Financing Related Risk Factors

 Our cash flows from operations and current holdings of cash may not be adequate for our current and long-term needs.

 Our liquidity, as we operate in a high fixed-cost environment, is highly dependent on our revenue volume and the timing of our capital expenditures, which can vary significantly from period to period. Depending on
 conditions in the semiconductor and FPD markets, our cash flows from operations and current holdings of cash may not be adequate to meet our current and long-term needs for capital expenditures, operations, and debt repayments. Historically, in
 certain years, we have used external financing to fund these needs. Due to conditions in the credit market, some financing instruments used by us in the past may not be available. Therefore, we cannot provide assurance that additional sources of
 financing would be available to us on commercially favorable terms, if at all, should our cash requirements exceed our existing cash, and operating cash flows.

 Our operations will continue to require substantial capital expenditures, for which we may be unable to provide or obtain funding.

 The manufacture of leading-edge photomasks requires us to make substantial investments in additional manufacturing capability. We expect that we will be required to continue to make substantial capital expenditures to
 meet customer requirements and to position us for future growth. Our capital expenditure payments for fiscal 2024 are expected to be approximately $140 million, of which approximately $18.7 million was included in Accounts

 payable and Accrued liabilities on our October 31, 2023, consolidated balance sheet. We cannot provide assurance that we will be able to obtain the additional capital required to fund our
 operations or capital expenditures on reasonable terms, if at all, or that any such inability will not have a material adverse effect on our business and results of operations.

 Industry and Competitive Related Risk Factors

 Our business depends on managerial and technical personnel, who are in great demand, and our inability to attract and retain qualified employees could adversely affect our business and results of operations.

 Our success depends, in part, upon key managerial and technical personnel, as well as our ability to continue to attract and retain additional qualified personnel. The loss of certain key personnel (for example, our
 chief executive officer, chief financial officer, and chief technology officer) could have a material adverse effect on our business and results of operations. We cannot offer assurance that we can retain our key managerial and technical employees,
 or that we can attract similar additional employees in the future.

 The photomask industry is dependent on the semiconductor and display industries, which are subject to rapid technological change and fluctuations in capacity needs. Consequently, we might fail to adequately time our
 capabilities to market needs, which could have a material adverse effect on our business and results of operations.

 The photomask industry has been, and we expect it to continue to be, characterized by technological change and evolving industry requirements, which recent supply chain regionalization efforts have accelerated. In
 order to remain competitive, we will be required to continually anticipate, respond to, and scale technologies of increasing complexity in both traditional and emerging markets that we serve. In particular, we believe that, as semiconductor
 geometries continue to become smaller and FPDs become larger or otherwise more advanced, we will be required to manufacture photomasks of increasingly more challenging complexity. Moreover, the demand for photomasks in non-leading-edge nodes may
 increase beyond our ability to meet our customers' requirements within adequate response times. Additionally, the demand for photomasks has been, and could in the future be, adversely affected by changes in semiconductor and high-performance
 electronics fabrication methods that affect the type or quantity of photomasks utilized, such as changes in semiconductor demand that favor field-programmable gate arrays and other semiconductor designs that replace application-specific ICs, or the
 use of certain chip-stacking methodologies that lessen the emphasis on conventional lithography technology. Furthermore, evidence of the viability and the corresponding market acceptance of alternative methods of transferring IC designs onto
 semiconductor wafers could reduce or eliminate the need for photomasks in the production of semiconductors. As of the end of 2023, one alternative method, direct-write lithography, has not been proven to be a commercially viable alternative to
 photomasks, as it is considered to be too slow for high-volume semiconductor wafer production. However, should direct-write or any other alternative method of transferring IC or FPD designs without the use of photomasks achieve market acceptance,
 and if we are unable to anticipate, respond to, or utilize these or other technological changes, due to resource, technological, or other constraints, our business and results of operations could be materially adversely affected.

 The risk of loss of our intellectual property, trade secrets, or other sensitive business or customer confidential information or disruption of operations due to cyberattacks or data breaches could
 negatively impact our financial results.

 Cyberattacks or data breaches could compromise confidential, business-critical information, cause disruptions in our operations, expose us to potential litigation, or harm our reputation. We have important assets,
 including intellectual property, trade secrets, and other sensitive, business-critical and/or confidential information which may be vulnerable to such incidents. While we have a comprehensive cybersecurity program that is continually reviewed,
 maintained, and upgraded, we cannot assure that we are invulnerable to cyberattacks and data breaches which, if significant, could negatively impact our business and financial results.

 We may be unable to enforce or defend our ownership and use of proprietary technology, and the utilization of unprotected company developed technology by our competitors could adversely affect our business, results of
 operations, and financial position.

 We believe that the success of our business depends more on proprietary technology, information and processes, and know-how than on our patents or trademarks. Much of our proprietary information and technology related
 to manufacturing processes is not patented and may not be patentable. We cannot offer assurance that:

 •

 we will be able to adequately protect our technology;

 •

 competitors will not independently develop similar technology;

 •

 international intellectual property laws will adequately protect our intellectual property rights.

 We may become the subject of infringement claims or legal proceedings by third parties with respect to current or future products or processes. Any such claims, with or without merit, or litigation to enforce or
 protect our intellectual property rights that require us to defend against claimed infringements of the rights of others, could result in substantial costs, diversion of resources, and product shipment delays or could force us to enter into royalty
 or license agreements, rather than dispute the merits of these claims. Any of the foregoing could have a material adverse effect on our business, results of operations, and financial position.

 We operate in a highly competitive environment, and, should we be unable to meet our customers' requirements for product quality, timeliness of delivery or technical capabilities, our revenue could be adversely
 affected.

 The photomask industry is highly competitive, and most of our customers utilize more than one photomask supplier. Our competitors include Compugraphics International, Ltd., Dai Nippon Printing Co., Ltd (outside of
 Taiwan and China), Hoya Corporation, LG Innotek Co., Ltd., Shenzhen Newway Photomask Making Co., Ltd., Shenzhen Qingyi Photomask, Ltd., SK-Electronics Co. Ltd., Taiwan Mask Corporation, and Toppan Electronics Products Co., Ltd. We also compete with
 semiconductor and FPD manufacturers' captive photomask manufacturing operations, some of which market their photomask manufacturing services to outside customers. We expect to face continued competition from these and other suppliers in the future.
 Some of our competitors have substantially greater financial, sales, marketing, or other resources than we do. Also, when producing smaller geometry photomasks, some of our competitors may be able to more rapidly develop and produce such masks and
 achieve higher manufacturing yields than we can. We believe that consistency of product quality, timeliness of delivery, competitive pricing, technical capability and service are the principal factors considered by customers when selecting their
 photomask suppliers. Our inability to meet these competitive requirements could have a material adverse effect on our business and results of operations. In the past, competition has led to pressure to reduce prices and the need to invest in
 advanced manufacturing technology, which we believe contributed to the decrease in the number of independent photomask suppliers, several years ago. These pressures may worsen in the future, causing further consolidation.

 Investment Related Risk Factors

 Joint ventures may not operate according to their business plans if our partners fail to fulfill their obligations, which may adversely affect our results of operations and compel us to dedicate additional resources
 to these joint ventures.

 The nature of a joint venture requires us to share control in certain areas with unaffiliated third parties and it is always possible that the alignment that brought us and our joint venture partner together may change over time, whether due to change in business strategy, change in control, change in market conditions or
 applicable laws, or other events. Differing views among joint venture participants may result in delayed decisions or failures to agree on major issues. If our joint venture partner does not fulfill its obligations or that alignment changes, the affected joint venture may not be able to operate in accordance with its business plan or the parties may
 seek to exit the joint venture under the terms of the joint venture agreement or otherwise. Under such a scenario, among other possible consequences, our results of
 operations may be adversely affected, we may be compelled to increase the level of our resources devoted to the joint venture or our company-wide business plan may need to be adjusted.
 If such differences caused a joint venture to deviate from its business plan, or put, change of control or other exit or termination provisions triggered, our results of operations could be materially adversely affected.

 Our operations in China expose us to substantial risks.

 In 2019, we commenced operations at our two manufacturing facilities in China. These investments are subject to substantial risks which may include,
 but are not limited to: the inability to protect our intellectual property rights under Chinese law, which may not offer as high a level of protection as U.S. law; unexpectedly long negotiation periods with Chinese suppliers and customers; quality
 issues related to materials sourced from local vendors; limited access to electricity; unexpectedly high labor costs due to a tight labor supply; and difficulty in repatriating funds and selling or transferring assets. Our investments in China also
 exposed us to a significant additional foreign currency exchange risk, which we had not been subject to in prior years. In addition, as tensions have, from time to time, escalated between the U.S. and China, we believe there is an enhanced risk
 that our substantial investments in China may be subject to unforeseen restrictions, which may include expropriation of the investments by the Chinese government or restrictions imposed
 on our operations by the U.S. or other countries. These and other risks may result in our not realizing a return on, or losing some, or all, of our investments in China, which would have a material adverse effect on our financial condition
 and financial performance.

 We may incur unforeseen charges related to possible future facility closures, restructurings, or forfeitures.

 We cannot provide assurance that there will not be facility closures, restructurings, or forfeitures in the near or long term, nor can we assure that we will not incur significant charges should there be any future
 facility closures, restructurings, or forfeitures.

 We may not be able to consummate future acquisitions or joint ventures or integrate acquisitions into our business, which could result in unanticipated expenses and losses.

 As part of our business growth strategy, we have acquired businesses and entered into joint ventures in the past, and we may pursue acquisitions and joint venture opportunities in the future. Our future efforts to grow
 the Company may include expanding into new or related markets or industries. Our ability to implement this component of our growth strategy may be limited by both our ability to identify appropriate acquisition or joint venture candidates and our
 financial resources, including our available cash and borrowing capacity. The expense incurred in consummating acquisitions or entering into joint ventures, the time it takes to integrate an acquisition, or our failure to integrate businesses
 successfully, could result in unanticipated expenses and losses. Furthermore, we may not be able to realize any of the anticipated benefits from acquisitions or joint ventures.

 The process of integrating acquired operations into our existing operations may result in unforeseen operating difficulties, and may require significant financial resources that would otherwise be available for the
 ongoing development or expansion of existing operations. Some of the risks associated with the integration of acquisitions include: potential disruption of our ongoing business; distraction of management; unforeseen claims and liabilities,
 including unexpected environmental exposures; unforeseen adjustments, taxes, charges and write-offs; problems enforcing the indemnification obligations of sellers of businesses or joint venture partners for claims and liabilities; unexpected losses
 of customers of, or suppliers to, the acquired business; difficulty in conforming the acquired business' standards, processes, procedures and controls with our operations; variability in financial performance arising from the implementation of
 acquisition accounting; inability to coordinate new product and process development; loss of senior managers and other critical personnel; problems with new labor unions; and challenges arising from the increased scope, geographic diversity, and
 complexity of our operations.

 Operations Related Risk Factors

 Our quarterly operating results fluctuate significantly and may continue to do so in the future.

 We have experienced fluctuations in our quarterly operating results, and we anticipate that such fluctuations will continue and could intensify in the future. Fluctuations in operating results may result in volatility
 in the prices of our common stock and financial instruments that could be linked to its value. Operating results may fluctuate as a result of many factors, including the size and timing of orders and shipments, the loss of significant customers,
 changes in product mix, the flow of customer design releases, technological change, fluctuations in manufacturing yields, the actions of our competitors, and general economic conditions. We operate in a high fixed-cost environment and, should our
 revenues and asset utilization decrease, our operating margins could be negatively impacted.

 Our customers generally order photomasks on an as-needed basis; thus, our revenue in any quarter is dependent primarily on orders received during that quarter. Since we operate with little backlog, and the rate of new
 orders may vary significantly from quarter to quarter, our capital expenditures and consequential expense levels are, to some extent, based primarily on sales forecasts and technological advancements in photomask manufacturing equipment.
 Consequently, if anticipated revenues in any quarter do not occur when expected, our capital investments could result in underutilized capacity and disproportionately high expense levels, causing operating results to be adversely affected. Due to
 the foregoing factors, we believe that quarter to quarter comparisons of our operating results cannot be relied upon as indicators of future performance. In addition, in future quarters, our operating results could be below guidance we may provide
 or the expectations of public market analysts and investors, which could have a material adverse effect on the market price of our common stock.

 Our substantial non-U.S. operations are subject to additional risks.

 Revenues from our non-U.S. operations were approximately 86%, 85% and 84% of our total revenues in 2023, 2022 and 2021, respectively. We
 believe that maintaining significant international operations requires us to have, among other things, a local presence in the geographic markets that we supply. This requires significant investments in financial, managerial, operational, and other
 resources. Since 1996, we have significantly expanded our operations in international markets by acquiring existing businesses in Europe and Asia, and building manufacturing facilities in Taiwan and China. In order to enable us to optimize our
 investments and other resources, we closely monitor the semiconductor and FPD manufacturing markets for indications of geographic movement and, in conjunction with these efforts, continue to assess the locations of our manufacturing facilities.
 These assessments could result in the opening of additional facilities or closing of our current facilities.

 Operations outside of the United States are subject to inherent risks, including: fluctuations in currency exchange rates; unstable political and economic conditions in various countries; changes in economic alliances;
 unexpected changes in regulatory requirements including import and export regulations; compliance with a variety of burdensome foreign laws and regulations; compliance with anti-bribery and anti-corruption laws (such as the Foreign Corrupt
 Practices Act); tariffs and other trade barriers; difficulties in staffing and managing international operations; and longer accounts receivable collection cycles. In addition: foreign countries may enact other restrictions on foreign trade or
 investment, including: currency exchange controls; trade sanctions which result in our losing access to customers and suppliers; legislation which renders agreements to be difficult to enforce; impositions on the movement of funds or other assets;
 or we may be subject to adverse tax consequences. These factors may have a material adverse effect on our costs or our ability to generate revenues outside of the United States and, consequently, on our business and results of operations.

 We could be subject to damages based on claims brought against us by our customers, or lose customers as a result of the failure of our products to meet certain quality specifications.

 Our products provide important performance attributes for our customers' products. If a product fails to perform in a manner consistent with quality specifications, or has a shorter useful life than warrantied, a
 customer could seek replacement of the product or damages for costs incurred as a result of the product failing to perform, particularly if such products are sold under agreements that contain limited performance and life cycle warranties. Our
 customers often require us to guarantee that our products conform to certain product specifications that they provide. Any failure to comply with such specifications could result in claims or legal action. A successful claim, or series of claims,
 against us could have a material adverse effect on our financial condition and results of operations and could result in a loss of one or more customers.

 We face risks associated with the use of sophisticated equipment and complex manufacturing processes and technologies. Our inability to effectively utilize such equipment and

 technologies and perform such processes could have a material adverse effect on our business and results of operations.

 Our complex manufacturing processes require the use of expensive and technologically sophisticated equipment and materials, and are continually modified in an effort to improve manufacturing yields and product quality.
 Minute impurities, defects, or other difficulties in the manufacturing process can lower manufacturing yields and render products unmarketable. Moreover, the manufacture of leading-edge photomasks is more complex and time consuming than
 manufacturing less advanced photomasks, and their fabrication may result in delays in the manufacture of all levels of photomasks. We have, on occasion, experienced manufacturing difficulties and capacity limitations that have delayed our ability
 to deliver products within the time frames contracted for by our customers. We cannot provide assurance that we will not experience these or other manufacturing difficulties, or be subject to increased costs, which could result in a loss of
 customers or otherwise have a material adverse effect on our business and results of operations.

 We have a high level of fixed costs.

 Because of the capital-intensive nature of the photomask manufacturing business, we have a high level of fixed costs and a high degree of operating leverage. Accordingly, should our sales volumes decline as a result of
 a decrease in design releases from our customers or for any other reason, we may have excess or underutilized production capacity which could significantly impact our operating margins or result in write-offs from asset impairments.

 Regulatory Related Risk Factors

 Additional taxes could adversely affect our financial results.

 Our tax filings are subject to audits by tax authorities in the various jurisdictions in which we do business. These audits may result in assessments of additional taxes that are subsequently resolved with the taxing
 authorities or through the courts. Currently, we believe there are no outstanding assessments whose resolution would result in a material adverse financial result. However, we cannot offer assurances that unasserted or potential future assessments
 would not have a material adverse effect on our financial condition or results of operations.

 Our products and technology could be subject to U.S. export control laws and the export control laws of the foreign jurisdictions where we operate.

 We are subject to various laws relating to the export of products we manufacture, and the technology related thereto, and our failure to comply with these laws could subject us to substantial fines, penalties, and even
 injunctions, the imposition of which could have a material adverse effect on the success of our business.

 Certain of our products are or could be subject to the Export Administration Regulations ("EAR") if they are manufactured in the U.S., or based on U.S. technology, or contain more than a de minimis amount of
 controlled U.S. content. The EAR could prohibit the export of certain products out of the US or could prohibit our foreign sites from manufacturing or delivering photomasks to certain restricted entities. Additionally, the Company has a large,
 global business with sales outside the U.S. representing a majority of the Company's total net sales, and the Company believes that it generally benefits from growth in international trade. However, trade policies and disputes and other
 international conflicts can result in tariffs, sanctions and other measures that restrict international trade, and can materially adversely affect the Company's business, particularly if these measures occur in regions where the Company derives a
 significant portion of its revenues.

 Based on the complex relationships between the United States and certain foreign countries including, but not limited to China, there is inherent risk that political, diplomatic and national security influences might
 lead to trade disputes, impacts and/or disruptions to our operations or our ability to sell our photomasks. The United States and other countries have imposed and may continue to impose trade restrictions and have also levied tariffs and taxes on
 certain goods and imposed export restrictions. Increases in tariffs, additional taxes or other trade restrictions and retaliatory measures may increasingly impact customer demand and customer investment in manufacturing equipment, increase our
 manufacturing costs, decrease margins, reduce the competitiveness of our products, or inhibit our ability to sell, export products or purchase necessary equipment and supplies, which could have a material adverse effect on our business, results of
 operations, or financial condition.

 We may be unprepared for changes to environmental laws and regulations and may incur liabilities arising from environmental matters.

 We are subject to numerous environmental laws and regulations that impose various environmental controls on, among other things, the discharge of pollutants into the air and water and the handling, use, storage,
 disposal, and cleanup of solid and hazardous wastes. Changes in these laws and regulations may have a material adverse effect on our financial position and results of operations, and inadequate compliance with their requirements could give rise to
 significant liabilities.

 If we violate environmental, health or safety laws or regulations, in addition to being required to correct such violations, we can be held liable in administrative, civil, or criminal proceedings, and substantial
 fines and other sanctions could be imposed that could disrupt or limit our operations. Liabilities associated with the investigation and cleanup of hazardous substances, as well as personal injury, property damages or natural resource damages
 arising from the release of, or exposure to, such hazardous substances, may be imposed in many situations without regard to violations of laws or regulations or other fault, and may also be imposed jointly and severally (so that a responsible party
 may be held liable for more than its share of the losses involved, or even the entire loss). Such liabilities may also be imposed on many different entities with a relationship to the hazardous substances at issue, including, for example, entities
 that formerly owned or operated the property affected by the hazardous substances and entities that arranged for the disposal of the hazardous substances at the affected property, as well as entities that currently own or operate such property. The
 nature of our business, including historical operations at our current and former facilities, exposes us to risks of liability under these laws and regulations due to the production, storage, use, transportation and sale of materials that can cause
 contamination or personal injury if released into the environment. Additional information may arise in the future concerning the nature or extent of our liability with respect to identified sites and additional sites that may be identified, for
 which we are alleged to be liable.

 General Risk Factors

 We could be negatively impacted by
 Environmental, Social and Governance (ESG), climate change and other sustainability-related matters.

 In recent years, there has been an increased focus from stakeholders on environmental, social, and governance matters,
 including greenhouse gas emissions and climate-related risks, sustainability, renewable energy, water stewardship, waste management, diversity, equality and inclusion, responsible sourcing and supply chain, human rights, and social
 responsibility. Evolving stakeholder expectations and our efforts to manage these issues, report on them, and accomplish our goals present numerous operational, regulatory, reputational, financial, legal, and other risks, any of which could
 have a material adverse impact, including on our reputation and stock price, reputational harm, including damage to our relationships with customers, suppliers, investors, governments, or other stakeholders, adverse impacts on our ability to
 manufacture and sell products and maintain our market share, the success of our collaborations with third parties, increased risk of litigation, investigations, or regulatory enforcement action, unfavorable environmental, social, and governance
 ratings or investor sentiment, diversion of resources and increased costs to control, assess, and report on environmental, social, and governance metrics.

 Ineffective internal controls could impact our business and operating results.

 Our internal controls over financial reporting may not prevent or detect misstatements because of their inherent limitations in detecting human errors, the circumvention or overriding of controls, or fraud; even
 effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. If we: fail to maintain the adequacy of our internal controls, including any failure to implement
 required new or improved controls; otherwise fail to prevent financial reporting misstatements; or experience difficulties in implementing internal controls, our business and operating results could be adversely impacted, and we could fail to meet
 our financial reporting obligations.

 Our business could be adversely impacted by global or regional catastrophic events.

 Our business could be materially adversely affected by terrorist acts, widespread outbreaks of infectious diseases (such as COVID-19), government responses emplaced to limit the impact of infectious diseases (such as
 shelter-in-place directives), or the outbreak or escalation of wars including, but not limited to, the invasion of Ukraine by the Russian Federation. Such events in the geographic regions in which we do business, including escalations of political
 tensions and military conflicts in the U.S., Europe, the Republic of South Korea, the People's Republic of China, or the Republic of China (Taiwan), and any governmental sanctions enacted in reaction thereto, could result in a global energy crisis,
 economic inflation, supply-chain disruptions, or the confiscation or destruction of our facilities; all and any of these outcomes could have material, adverse impacts on our results of operations, financial condition, and cash flows.

 Our production facilities could be damaged or disrupted by natural or manmade disasters or labor strikes, either of which could adversely affect our financial position, results of operations, and cash flows.

 A major catastrophe, such as an earthquake, flood, fire, or other disaster, labor strike, or work stoppage at any of our manufacturing facilities, or a manufacturing facility of our suppliers or customers, could result
 in a prolonged interruption of our business. A disruption resulting from any one of these events could cause significant delays in shipments of our products and the loss of revenue and customers, which could have a material adverse effect on our
 financial position, results of operations, and cash flows. Our facilities in Taiwan are located in a seismically-active area.

 Our sales can be impacted by the health and stability of the general economy, which could adversely affect our results of operations and cash flows.

 Unfavorable general economic conditions in the U.S. or other countries in which we or our customers conduct business may have the effect of reducing the demand for photomasks. Economic downturns may lead to a decrease
 in demand for end products whose manufacturing processes involve the use of photomasks, which may result in a reduction in new product design and development by semiconductor or FPD manufacturers and adversely affect our results of operations and
 cash flows.

 Technology failures or cyber security breaches could have a material adverse effect on our operations.

 We rely on information technology systems to process, transmit, store, and protect electronic information. For example, a significant portion of the communications between our personnel, customers, and suppliers
 depends on information technology. Our information technology systems may be vulnerable to a variety of interruptions due to events beyond our control, including, but not limited to, natural disasters, terrorist attacks, telecommunications
 failures, computer viruses, hackers, and other security issues. Although we have technology and information security processes and disaster recovery plans in place to mitigate our risks to these vulnerabilities, these measures may not be adequate
 to ensure that our operations will not be disrupted, should such an event occur.

 The General Data Protection Regulation ("GDPR"), which went into effect in the European Union (EU) on May 25, 2018, applies to the collection, use, retention, security, processing, and transfer of personally
 identifiable information of residents of E.U. countries. The GDPR created a range of new compliance obligations and imposes significant fines and sanctions for violations. It is possible that the GDPR may be interpreted or applied in a manner that
 is adverse to, or unforeseen by us, including requirements that are inconsistent with our practices, or that we may otherwise fail to construe its requirements in ways that are satisfactory to the E.U. authorities. Upon leaving the E.U. on January
 31, 2021, the U.K. enacted a new domestic data privacy law called the "U.K. – General Data Protection Regulation" ("UK-GDPR"). Although somewhat less restrictive than the GDPR, the UK-GDPR is similar to the GDPR with respect to both an entity's
 obligation to protect personal information and the imposition of significant fines for violations.

 Any failure, or perceived failure, by us to comply with the GDPR or the UK-GDPR, or with any applicable regulatory requirements or orders, including, but not limited to privacy, data protection, information security,
 or consumer protection related privacy laws and regulations, in one or more jurisdictions within the E.U., the U.K. or elsewhere, could: result in proceedings or actions against us by governmental entities or individuals; subject us to significant
 fines, penalties, and/or judgments; require us to change our business practices; limit access to our products and services in certain countries, or otherwise adversely affect our business, as we would be at risk to lose both customers and revenue,
 and incur substantial costs.

 We may, in the future, incur net losses.

 Although the Company has been profitable since fiscal 2010, it has, in the past, incurred net losses. We cannot provide assurance that the Company will not incur net losses in the future.

 Market Related Risk Factors

 Changes in foreign currency exchange rates could have a material adverse effect on our results of operations, financial condition, or cash flows.

 Our consolidated financial statements are prepared in accordance with U.S. GAAP and are reported in U.S. dollars. Our operations have transactions and balances denominated in currencies other than the U.S. dollar;
 primarily the South Korean won, New Taiwan dollar, Japanese yen, Chinese renminbi, euro, Singapore dollar, and the British pound sterling. In 2023, we recorded a net gain from changes in foreign currency exchange rates of $2.5 million in our
 consolidated statement of income, while our net assets increased by $5.6 million as a result of the translation of foreign currency financial statements to U.S. dollars. Significant foreign currency fluctuations may adversely affect our results of
 operations, financial condition, or cash flows.

 Our hedging activity could negatively impact our results of operations and cash flows.

 We may enter into derivatives to manage our exposures to interest rate and currency movements. If we do not accurately forecast our results of operations, execute contracts that do not effectively mitigate our economic
 exposures to interest rates and currency rates, elect to not apply hedge accounting (when doing so would have mitigated our losses), or fail to comply with the complex accounting requirements for hedging transactions, our results of operations and
 cash flows could be volatile, as well as negatively impacted.

 The market price of our common stock is subject to volatility and could fluctuate widely in response to various factors, many of which are beyond our control.

 Factors that may influence the price of our common stock include, but are not limited to, the following:

 •

 loss of any of our key customers or suppliers;

 •

 additions or departures of key personnel;

 •

 third party sales of common stock;

 •

 short interest in our common stock;

 •

 our ability to execute our business plan, including but not limited to, our expansion into China;

 •

 announcements and consummations of business acquisitions;

 •

 operating results that fall below or exceed expectations;

 •

 announcements of forecasted earnings or material transactions;

 •

 issuances or repurchases of our common stock;

 •

 intellectual property disputes;

 •

 reputational damage suffered with or without merit;

 •

 industry developments;

 •

 news about or disclosures made by our competitors or customers;

 •

 business combinations, divestitures, or bankruptcies by customers, suppliers, or competitors;

 •

 economic and other external factors including (but not limited to) inflation, recessions, natural disasters, military actions, political instability, or social unrest; and

 •

 period to period fluctuations in our financial results.

 In addition, securities markets have from time-to-time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also
 materially and adversely affect the market price of our common stock. Such fluctuations may be the result of imbalances between buy and sell offers, the actions of quantitative or algorithmic stock traders and short-sellers, or low trading volume
 which can magnify the effects of a small number of transactions on the price of a stock.

 We operate in a global, competitive environment which gives rise to operating and market risk exposure.

 We sell our products in a competitive, global environment, and compete worldwide for sales on the basis of product quality, price, technology, and customer service. Sales of our products are also
 subject to federal, state, local, and foreign taxes, laws and regulations, trade agreements, import and export controls, duties, and tariffs. The imposition of additional regulations or controls including export controls, duties, tariffs, or
 changes to bilateral and regional trade agreements, could negatively impact our results of operations.

 ITEM 1B.

 UNRESOLVED STAFF COMMENTS

 None.

 ITEM 1C.

 CYBERSECURITY

 Not applicable

 ITEM 2.

 PROPERTIES

 The following table presents certain information about the Company's photomask manufacturing facilities:

 Location

 Type of Interest

 Allen, Texas

 Owned

 Boise, Idaho

 Owned

 Brookfield, Connecticut

 Owned

 Bridgend, Wales

 Leased

 Cheonan, Korea

 Owned

 Hefei, China

 Owned(1)

 Dresden, Germany

 Leased

 Hsinchu, Taiwan

 Owned(1)

 Hsinchu, Taiwan

 Leased

 Taichung, Taiwan

 Owned(1)

 Xiamen, China

 Owned(1)

 (1) We own our manufacturing facilities in Hefei, Taichung, Xiamen, and one of our manufacturing facilities in Hsinchu. However, we lease the related land at these sites. We believe our facilities, with
 planned expansions, are adequate to support our current and near-term requirements.

 ITEM 3.

 LEGAL PROCEEDINGS

 Please refer to Note 15 to our consolidated financial statements in Part II, Item 8 of this report for information on legal proceedings involving the Company.

 ITEM 4.

 MINE SAFETY DISCLOSURES

 Not applicable.

 ITEM 5.

 MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 Our common stock is traded on the NASDAQ Global Select Market ("NASDAQ") under the symbol PLAB. On December 14, 2023, the closing sale price of our common stock, per the NASDAQ Global Select Market, was $29.09. Based
 on available information, we have 229 registered shareholders.

 To date, we have not paid any cash dividends on Photronics shares, and, for the foreseeable future, we anticipate that earnings will continue to be retained for use in our business.

 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. The most recent 10b5-1 plan expired on September 15, 2022,
 and has not been renewed. Share repurchases under this authorization commenced on September 16, 2020. The repurchase authorization by the Board of Directors has no expiration
 date, does not obligate us to acquire any common stock, and is subject to market conditions. In 2023, we did not repurchase any further shares as part of this program. In 2022, we repurchased 0.2 million shares at a cost of $2.5 million
 (an average of $13.43 per share) and, since the program's inception, we have repurchased 5.8 million shares at a cost of $68.3 million (an average of $11.70 per share). There is $31.7
 million remaining under the Board of Director authorization. All shares repurchased under the program have been retired.

 Securities authorized for issuance under equity compensation plans

 The information regarding our equity compensation required to be disclosed by Item 201(d) of Regulation S-K is incorporated by reference from the Photronics, Inc. 2024 Definitive Proxy Statement in Item 12 of Part III
 of this report. The 2024 Definitive Proxy Statement will be filed within 120 days after our fiscal year ended October 31, 2023.

 Stock Price Performance

 The information regarding our stock price performance required to be disclosed by Item 201(e) of Regulation S-K is incorporated by reference from the
 Photronics, Inc. 2024 Definitive Proxy Statement in Item 12 of Part III of this report. The 2024 Definitive Proxy Statement will be filed within 120 days after our fiscal year ended October 31, 2023.

 ITEM 6.

 [RESERVED]

 ITEM 7.

 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 Overview

 We sell substantially all of our photomasks to semiconductor designers and manufacturers, and manufacturers of FPDs. Photomask technology is also being applied to the fabrication of other higher-performance electronic
 products such as virtual reality/augmented reality advanced IC packages, photonics, micro-electronic mechanical systems, and certain nanotechnology applications. Our selling cycle is tightly interwoven with the development and release of new
 semiconductor and display designs and applications, particularly as they relate to the semiconductor industry's migration to more advanced product innovation, design methodologies, and fabrication processes. The demand for photomasks primarily
 depends on design activity rather than sales volumes from products manufactured using semiconductor manufacturing technologies. Consequently, an increase in semiconductor or display sales does not necessarily result in a corresponding increase in
 photomask sales. However, the reduced use of application-specific ICs, reductions in design complexities, other changes in the technology or methods of manufacturing or designing semiconductors, or a slowdown in the introduction of new
 semiconductor or display designs could reduce demand for photomasks even if the demand for semiconductors and FPDs increases. Advances in semiconductor, display, and photomask design and production methods that shift the burden of achieving
 device performance away from lithography could also reduce the demand for photomasks. Historically, the microelectronics industry has been volatile, experiencing periodic downturns and slowdowns in design activity. These negative trends have been
 characterized by, among other things, diminished product demand, excess production capacity, and accelerated erosion of selling prices with a concomitant effect on revenue and profitability.

 We are typically required to fulfill customer orders within a short period of time, sometimes within twenty-four hours. This results in a minimal level of backlog orders, typically one to two weeks of backlog for IC
 photomasks and two to three weeks of backlog for FPD photomasks. However, the demand for some IC photomasks can extend longer than the traditional time period; thus, for some products, our backlog can expand to as long as two to three months.

 The global semiconductor and FPD industries are driven by end markets which have been closely tied to consumer-driven applications of high-performance devices, including, but not limited to, mobile display devices,
 mobile communications, and computing solutions. While we cannot predict the timing of the industry's transition to volume production of next-generation technology nodes, or the timing of up and down-cycles with precise accuracy, we believe that
 such transitions and cycles will continue into the future, beneficially and adversely affecting our business, financial condition, and operating results as they occur. We believe our ability to remain successful in these environments is dependent
 upon the achievement of our goals of being a service and technology leader and efficient solutions supplier, which we believe should enable us to continually reinvest in our global infrastructure.

 We are focused on improving our competitiveness by advancing our technology and reducing costs and, in connection therewith, have invested and plan to continue to invest in manufacturing equipment to serve both the
 high-end photomask and trailing-edge markets. As we face challenges that require us to make significant improvements in our competitiveness, we continue to evaluate further cost reduction initiatives.

 State-of-the-art production for semiconductor masks is considered to be 28 nanometer and smaller for ICs and Generation 10.5+ and AMOLED and LTPS display-based process technologies for FPDs. However, 32 nanometer and
 above geometries for semiconductors and Generation 8 and below (excluding AMOLED and LTPS) process technologies for displays constitute the majority of designs currently being fabricated in volume. At these geometries and various high-end nodes, we
 can produce full lines of photomasks, and there is no significant technology employed by our competitors that is not available to us. We expect advanced-generation designs to continue to move to production throughout fiscal 2024, and we believe we
 are well positioned to service an increasing volume of this business as a result of our investments in manufacturing processes and technology in the regions where our customers are located.

 The photomask industry has been, and is expected to continue to be characterized by technological change and evolving industry standards. In order to remain competitive, we will be required to continually anticipate,
 respond to, and utilize changing technologies. In particular, we believe that, as semiconductor geometries continue to become smaller, and display designs become larger or otherwise more advanced, we will be required to manufacture even more
 complex optically-enhanced reticles, including optical proximity correction, phase-shift and EUV photomasks. Additionally, demand for photomasks has been, and could in the future be, adversely affected by changes in high-performance electronics
 fabrication methods that affect the type or quantity of photomasks used, such as changes in semiconductor demand that favor field-programmable gate arrays and other semiconductor designs that replace application-specific ICs, or the use of certain
 chip-stacking methodologies that lessen the emphasis on conventional lithography technology. Furthermore, increased market acceptance of alternative methods of transferring circuit designs onto semiconductor wafers could reduce or eliminate the
 need for photomasks in the production of semiconductors. As of the end of 2023, one alternative method, direct-write lithography, has not been proven to be a commercially viable alternative to photomasks, as it is considered to be too slow for
 high-volume semiconductor wafer production, and we have not experienced a significant loss of revenue as a result of this or other alternative semiconductor design methodologies. However, should direct-write lithography or any other alternative
 method of transferring IC designs to semiconductor wafers without the use of photomasks achieve market acceptance, and we do not anticipate, respond to, or utilize these or other changing technologies due to resource, technological, or other
 constraints, our business and results of operations could be materially adversely affected.

 Our revenues have benefitted, and our costs, including depreciation, have been affected by the increased demand for high-end-technology photomasks that require more advanced manufacturing capabilities, but generally
 command higher ASPs. Our capital expenditure payments were $131.3 million, $112.3 million and $109.1 million in 2023, 2022 and 2021, respectively. Nonetheless, we intend to continue to make the required investments to support the technological
 requirements of our customers that we believe will continue to enable our growth. In support of this effort, we expect capital expenditure payments to be approximately $140 million in fiscal year 2024.

 The manufacture of photomasks for use in fabricating ICs, FPDs, and other related products built using comparable photomask-based process technologies has been, and continues to be, capital intensive. Our employees and
 our integrated global manufacturing network represent a significant portion of our fixed operating cost base. Should our revenue decrease as a result of a decrease in design releases from our customers, we may have excess or underutilized
 production capacity, which could significantly impact our operating margins, or result in write-offs from asset impairments.

 Results of Operations

 The following tables present selected operating information expressed as a percentage of revenue. The columns may not foot due to rounding.

 Three Months Ended

 2023

 July 30,

 2023

 2022

 Revenue

 100.0

 %

 100.0

 %

 100.0

 %

 Cost of goods sold

 62.7

 61.3

 61.8

 37.3

 38.7

 38.2

 Selling, general and administrative expenses

 7.4

 8.0

 7.5

 Research and development expenses

 1.5

 1.6

 1.9

 Operating income

 28.5

 %

 29.1

 %

 28.8

 %

 Non-operating income (expense), net

 8.2

 -0.4

 5.1

 Income before income tax provision

 36.7

 28.7

 33.9

 8.9

 7.2

 7.6

 27.8

 21.5

 26.3

 Net income attributable to noncontrolling interests

 8.2

 9.5

 8.7

 Net income attributable to Photronics, Inc. shareholders

 19.6

 %

 12.0

 %

 17.6

 %

 2023

 2022

 2021

 Revenue

 100.0

 %

 100.0

 %

 100.0

 %

 Cost of goods sold

 62.3

 64.3

 74.8

 37.7

 35.7

 25.2

 Selling, general and administrative expenses

 7.8

 7.8

 8.7

 Research and development expenses

 1.5

 2.2

 2.8

 Other operating income, net

 0.0

 0.0

 0.5

 Operating income

 28.4

 %

 25.7

 %

 14.2

 %

 Non-operating income (expense), net

 1.9

 3.3

 1.1

 Income before income tax provision

 30.3

 29.0

 15.4

 7.9

 7.3

 3.5

 22.4

 21.7

 11.9

 Net income attributable to noncontrolling interests

 8.3

 7.3

 3.5

 Net income attributable to Photronics, Inc. shareholders

 14.1

 %

 14.4

 %

 8.4

 %

 Note: All the following tabular comparisons, unless otherwise indicated, are for the three months ended October 31, 2023 (Q4 FY23), July 30, 2023 (Q3 FY23) and October 31, 2022
 (Q4 FY22), and for the fiscal years ended October 31, 2023 (YTD FY23) and October 31, 2022 (YTD FY22). Please refer to Part II, Item 7 of our 2022 Form 10-K for comparative discussion of our fiscal years ended October 31, 2022, and October 31,
 2021. The tables in this item may not foot due to rounding.

 Revenue

 Our quarterly revenues can be affected by the seasonal purchasing practices of our customers. As a result, demand for our products is typically reduced during the first quarter of our fiscal year by the North American,
 European, and Asian holiday periods, as some of our customers reduce their development and, consequently, their buying activities during those periods.

 The following tables present changes in revenue disaggregated by product type and geographic origin, in Q4 FY23 and YTD FY23 from revenue in prior reporting periods.

 Quarterly Changes in Revenue by Product Type

 Q4 FY23 compared with Q3 FY23

 Q4 FY23 compared with Q4 FY22

 Revenue in

 IC

 High-end *

 $

 57.7

 $

 12.4

 27.4

 %

 $

 13.4

 30.2

 %

 106.8

 (11.0

)

 (9.3

)%

 (5.1

)

 (4.5

)%

 Total IC

 $

 164.5

 $

 1.4

 0.8

 %

 $

 8.3

 5.3

 %

 FPD

 High-end *

 $

 53.3

 $

 3.3

 6.6

 %

 $

 9.9

 22.8

 %

 9.7

 (1.4

)

 (12.5

)%

 (0.9

)

 (8.9

)%

 Total FPD

 $

 63.0

 $

 1.9

 3.1

 %

 $

 9.0

 16.5

 %

 Total Revenue

 $

 227.5

 $

 3.3

 1.5

 %

 $

 17.2

 8.2

 %

 *

 High-end photomasks typically have higher ASPs than mainstream products.

 Quarterly Changes in Revenue by Geographic Origin**

 Q4 FY23 compared with Q3 FY23

 Q4 FY23 compared with Q4 FY22

 Revenue in

 Taiwan

 $

 79.3

 $

 (2.3

)

 (2.8

)%

 $

 3.0

 3.9

 %

 China

 59.2

 (2.9

)

 (4.6

)%

 6.8

 12.9

 %

 Korea

 42.2

 1.4

 3.3

 %

 4.2

 11.2

 %

 36.8

 7.1

 23.9

 %

 2.8

 8.2

 %

 Europe

 9.3

 (0.2

)

 (2.2

)%

 0.3

 3.0

 %

 Other

 0.7

 0.2

 34.4

 %

 0.1

 24.7

 %

 Total revenue

 $

 227.5

 $

 3.3

 1.5

 %

 $

 17.2

 8.2

 %

 **

 This table disaggregates revenue by the location in which it was earned.

 Revenue in Q4 FY23 of $227.5 million represented an increase of 1.5% compared with Q3 FY23, and an increase of 8.2% from Q4 FY22.

 Overall IC revenue increased 0.8 % from Q3 FY23, and increased 5.3% from Q4 FY22 due to stronger high-end foundry and logic demand in Asia. IC mainstream decreased in Q4 FY23 by 9.3% from Q3 FY23, and 4.5% from Q4 FY22
 primarily the result of reduced mainstream demand in Asia.

 FPD revenue increased 3.1% and 16.5% in Q4 FY23, compared, respectively, with Q3 FY23 and Q4 FY22. The increases were caused by continued strong AMOLED demand in mobile display during Q4 FY23. Revenue from mainstream
 products decreased 12.5% from Q3 FY23 as more production capacity was dedicated to meet strong high-end demand.

 Year-over-Year Changes in Revenue by Product Type

 YTD FY23 compared with YTD FY22

 Revenue in

 YTD FY23

 IC

 High-end *

 $

 195.0

 $

 (0.4

)

 (0.2

)%

 456.3

 58.6

 14.7

 %

 Total IC

 651.3

 $

 58.3

 9.8

 %

 FPD

 High-end *

 200.8

 $

 13.9

 7.4

 %

 40.0

 (4.6

)

 (10.3

)%

 Total FPD

 240.8

 $

 9.3

 4.0

 %

 Total Revenue

 892.1

 $

 67.5

 8.2

 %

 *

 High-end photomasks typically have higher ASPs than mainstream photomasks.

 Year-over-Year Changes in Revenue by Geographic Origin**

 YTD FY23 compared with YTD FY22

 Revenue in

 YTD FY23

 Taiwan

 $

 316.9

 $

 25.5

 8.8

 %

 China

 245.4

 32.8

 15.4

 %

 Korea

 162.2

 6.1

 3.9

 %

 128.9

 2.7

 2.1

 %

 Europe

 36.6

 0.2

 0.5

 %

 Other

 2.1

 0.3

 13.5

 %

 $

 892.1

 $

 67.5

 8.2

 %

 **

 This table disaggregates revenue by the location in which it was earned.

 Revenue in YTD FY23 of $892.1 million surpassed our prior record revenue set in YTD FY22 by $67.5 million, or 8.2%. IC revenue increased by 9.8%, due to strong demand for mainstream products
 earlier in the year. FPD revenue increased by 4.0%, driven by a 7.4% increase in revenue from high-end products due to increased AMOLED demand in mobile displays, which offset decreased mainstream resulting from shifting capacity to meet strong
 high-end demand. We believe that strong demand for AMOLED photomasks will continue, as expected technology advances drives increasing overall demand for higher-value masks.

 Gross Margin

 Q3 FY23

 Q4 FY22

 $

 84.9

 $

 86.8

 (2.2

)%

 $

 80.3

 5.7

 %

 Gross margin

 37.3

 %

 38.7

 %

 38.2

 %

 Gross margin was 37.3% for Q4 FY23, representing a slight decrease from the Q3 FY23 gross margin of 38.7%, as increase in revenue of 1.5% was offset by increased material costs of 4.2%, or 69 basis points as a
 percentage of revenue. Labor costs increased 4.5%, or 30 basis points as a percentage of revenue, due to increased costs in some locations. Equipment and other overhead costs increased 3.0%, or 41 basis points as a percentage of revenue, with
 increased equipment maintenance costs, partially offset by lower outsourced manufacturing costs, most significantly contributing to the net cost increase.

 Gross margin decreased by 0.9 percentage points in Q4 FY23, from Q4 FY22, primarily as a result of the increase in material costs as a percentage of revenue from the prior year quarter. Equipment and other overhead
 costs increased 9.7%, or 37 basis points, as a percentage of revenue. Increased depreciation expense, utilities expenses, and outsourced manufacturing costs, which were partially offset by decreased equipment maintenance costs, were the primary
 contributors to the overall increase.

 YTD FY23

 YTD FY22

 $

 336.2

 $

 294.2

 14.3

 %

 Gross margin

 37.7

 %

 35.7

 %

 Gross margin increased by 2.0 percentage points in YTD FY23, from YTD FY22, primarily as a result of the increase in revenue from the prior year period, offset somewhat by the
 following net cost increases: Material costs increased 2.8% from the prior year period, but decreased 129 basis points as a percentage of revenue. Labor costs increased 10.3% from the prior year, and increased 30 basis points as a percentage of
 revenue, primarily due to increased labor costs in Asia. Equipment and other overhead costs increased by 4.5% but decreased 95 basis points as a percentage of revenue, with increased utilities, equipment
 service contract costs, and less transfer of research and development cost from cost of goods sold to research and development expense, as well as increases in computer software costs, offset by decreased importation costs most significantly
 contributing to the overall cost increase.

 Selling, General and Administrative Expenses

 Selling, general and administrative expenses were $16.7 million in Q4 FY23, compared with $18.0 million in Q3 FY23, and $15.7 million in Q4 FY22. The decrease from Q3 FY23 was primarily the result of decreased
 compensation and related expenses of $1.5 million offset partially by increased insurance expenses and outside services of $0.1 million and $0.1 million, respectively. The increase from the prior year quarter was primarily the result of increased
 compensation and related expenses of $1.0 million and increased insurance expenses of $0.2 million. Selling, general and administrative expenses increased $5.5 million to $69.5 million in YTD FY23, from $64.0 million in YTD FY22, primarily due to
 an increase in compensation and related expenses, professional fees, travel and entertainment and insurance expenses in the respective amounts of $4.1 million, $1.2 million, $0.4 million and $0.3 million.

 Research and Development Expenses

 Research and development expenses, which primarily consist of development and qualification efforts related to process technologies for high-end IC and FPD applications, decreased $0.1 million to
 $3.4 million in Q4 FY23, from Q3 FY23; the decrease was primarily caused by a decline in development activities in Asia. Research and development expenses in Q4 FY23 decreased by $0.7 million from Q4 FY22 as a result of decreased development
 activities in the U.S. and Asia. On a year-to-date basis, research and development expenses decreased $4.7 million, to $13.7 million, primarily due to decreased development activities in the U.S.

 Non-Operating Income (Expense)

 Q3 FY23

 Q4 FY22

 Foreign currency transactions impact, net

 $

 13.2

 $

 (4.5

)

 $

 10.4

 Interest expense, net

 (0.1

)

 (0.1

)

 (0.4

)

 Interest income and other income, net

 5.6

 3.7

 0.8

 Non-operating income (expense), net

 $

 18.7

 $

 (0.9

)

 $

 10.8

 Non-operating income (expense) increased in Q4 FY23 from Q3 FY23 by $19.6 million, primarily due to foreign currency impacts, driven by favorable movements of the South Korean
 won, the New Taiwan dollar, RMB dollar against the U.S. dollar offsetting unfavorable movements of the Singapore dollar against the U.S. dollar. Non-operating income (expense) increased from Q4 FY22, by $7.9 million,

 primarily due to higher interest and investment income earned on our cash balances, in addition to foreign currency transactions impact.

 YTD FY23

 YTD FY22

 Foreign currency transactions impact, net

 $

 2.5

 $

 27.3

 Interest expense, net

 (0.4

)

 (1.9

)

 Interest income and other income, net

 14.8

 1.7

 Non-operating income (expense), net

 $

 16.9

 $

 27.2

 Non-operating income (expense) decreased $10.3 million in full year FY23, compared with full year FY22, due to foreign currency transactions, driven by unfavorable movements of the South Korean won, the New Taiwan
 dollar, and the Singapore dollar offsetting favorable movements of the RMB against the U.S. dollar, partially offset by increased interest income in the current year resulting from higher average cash, cash equivalents and short-term investments
 balances in FY23, compared with FY22 and lower interest expense, net of subsidies, due to receiving a lower amount of interest subsidies on our China-based debt in FY23, the effect of which was partially mitigated by lower average interest-bearing
 debt balance in FY23 than in the prior year. The columns presented above may not foot due to rounding.

 Income Tax Provision

 On December 15, 2022, the European Union (EU) Member States formally adopted the EU's Pillar Two Directive, which generally provides for a minimum
 effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A
 significant number of other countries are expected to also implement similar legislation with varying effective dates in the future. The Company is continuing to evaluate the potential impact on future periods of the Pillar Two Framework, pending
 legislative adoption by additional individual countries.

 Q3 FY23

 Q4 FY22

 $

 20.3

 $

 16.1

 $

 16.1

 Effective income tax rate

 24.3

 %

 25.0

 %

 22.5

 %

 The effective income tax rates are sensitive to the jurisdictional mix of our earnings, due, in part, to the non-recognition of tax benefits on losses in jurisdictions with valuation allowances where the tax benefits
 of losses are not available.

 The effective income tax rate decreased slightly in Q4 FY23, compared with Q3 FY23, primarily due to changes in the period-to-period mix of jurisdictional earnings. The effective income tax rate increase in Q4 FY23, as
 compared with Q4 FY22, is primarily due to changes in the jurisdictional mix of earnings as well as an increase in foreign tax as compared to the prior year.

 FY23

 FY22

 $

 70.3

 $

 59.8

 Effective income tax rate

 26.0

 %

 25.0

 %

 The increase in the effective income tax rate on a full-year basis in FY23, compared with FY22, is primarily due to an increase of unremitted earnings tax in a non-US jurisdiction, as well as changes in the
 jurisdictional mix of earnings. We consider all available evidence when evaluating the potential future realization of deferred tax assets, and when, based on the weight of all available evidence, we determine that it is more likely than not that
 some portion or all of our deferred tax assets will not be realized, we reduce our deferred tax assets by a valuation allowance. We also regularly assess the potential outcomes of ongoing and future tax examinations and, accordingly, have recorded
 accruals for such contingencies. Included in the balance of unrecognized tax benefits as of October 31, 2023 and October 31, 2022, are $8.9 million and $5.6 million respectively, recorded in Other liabilities
 in the consolidated balance sheets that, if recognized, would impact the effective tax rates.

 Net Income Attributable to Noncontrolling Interests

 Net income attributable to noncontrolling interests was $18.5 million in Q4 FY23, compared with $21.3 million in Q3 FY23; the decrease was the result of a net decrease in the net
 incomes of our joint venture operations. Net income attributable to noncontrolling interests increased by $0.3 million in Q4 FY23 from Q4 FY22, and by $13.7 million in
 YTD FY23 from YTD FY22, as a result of increased net income at both our Taiwan-based and China-based IC facilities.

 Liquidity and Capital Resources

 Cash and cash equivalents was $499.3 million and $319.7 million as of October 31, 2023, and October 31, 2022, respectively. As of the most recent balance sheet date, total cash
 and cash equivalents included $473.2 million held by foreign subsidiaries. Net Cash, a non-GAAP financial measure as defined and discussed in the Non-GAAP Financial Measures section below, was $474.7 million
 and $277.3 million as of October 31, 2023, and October 31, 2022, respectively. Our primary sources of liquidity are our cash on hand and cash we generate from operations.

 We continually evaluate alternatives for efficiently funding our capital expenditures and ongoing operations. These reviews may result in our engagement in a variety of investing and financing transactions, in the
 transfer of cash among subsidiaries, and/or the repatriation of cash to the U.S. The transfer of funds among subsidiaries could be subject to foreign withholding taxes; in certain jurisdictions, repatriation of these funds to the U.S. may subject
 them to U.S. state income taxes and/or local country withholding taxes. We believe that our liquidity, including available financing, is sufficient to meet our requirements through the next twelve months and thereafter for the foreseeable future.
 Through the utilization of our existing liquidity, cash we generate from operations and short-term investments, we plan to continue to invest in our business, with our investments targeted to align with our customers' technology road maps. In
 addition, we stand ready to invest in mergers, acquisitions, or strategic partnerships, should a suitable opportunity arise.

 We estimate capital expenditures for our fiscal year 2024 will be approximately $140 million; these investments will be targeted towards high-end and mainstream "point" tools
 that will increase our operating capacity and efficiency, and enable us to support our customers' near-term demands. As of October 31, 2023, we had outstanding capital commitments of approximately $106.8 million

 and recognized liabilities related to capital equipment purchases of approximately $18.7 million. Although payment timing could vary, primarily as a result of the timing of tool delivery, installation and
 testing, we currently estimate that we will fund $88.6 million of our total $125.5 million committed and recognized obligations for capital expenditures over the next
 twelve months. Please refer to Notes 10 and 15 to our consolidated financial statements for additional information on our lease liabilities and unrecognized commitments, respectively.

 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. This authorization does
 not obligate the Company to repurchase any dollar amount or number of shares of common stock. As of October 31, 2023, there was approximately $31.7 million remaining under that authorization. Depending on market conditions, we may utilize some or
 the entire remaining approved amount to reacquire additional shares.

 As discussed in Note 6 of our consolidated financial statements, DNP, the noncontrolling interest in our China-based joint venture has, under certain circumstances, the right to put its interest in the joint venture to
 Photronics, or to purchase our interest in the joint venture. Under all such circumstances, the sale of DNP's interest would be at its 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. As of the date of issuance of this report, DNP had not indicated its intention to exercise this right. As of October 31, 2023, Photronics and DNP each had net investments in this joint venture of
 approximately $117.1 million.

 Cash Flows

 October 31, 2021

 Net cash provided by operating activities

 $

 302.2

 $

 275.2

 $

 150.8

 Net cash used in investing activities

 $

 (101.5

)

 $

 (147.8

)

 $

 (103.5

)

 Net cash used in financing activities

 $

 (18.5

)

 $

 (38.7

)

 $

 (53.9

)

 Operating Activities: Net cash provided by operating activities reflects net income adjusted for certain non-cash items, including depreciation and amortization,
 share-based compensation, and the effects of changes in operating assets and liabilities. Net cash provided by operating activities increased by $27.0 million in FY23, compared with FY22, primarily due to
 increased net income and net cash-favorable changes in working capital, predominantly in Asia.

 Free Cash Flow, which is a non-GAAP financial measure as discussed in the "Non-GAAP Financial Measures" section below, increased by $8.0 million in FY23, compared with FY22, and
 $121.2 million in FY22, compared with FY21, primarily due to increases in net cash provided by operating activities.

 Investing Activities: In FY23, net cash flows used in investing activities primarily consisted of purchases of $131.3 million
 of property, plant and equipment. Net cash flows used in investing activities decreased by $46.2 million in FY23, compared with FY22, primarily as a result of $47.5 million in proceeds from the maturity of
 available-for-sale debt securities.

 Financing Activities: In FY23, net cash flows used in financing activities primarily consisted of debt repayments of $18.5 million. Net cash used in financing
 activities decreased by $20.2 million in FY23, compared with FY22, primarily due to decreased repayments of debt of $47.0 million, offset by decreased contributions from noncontrolling interests of $25.0 million that occurred in FY22 but did not
 repeat in FY23.

 Our cash, cash equivalents, and restricted cash balances were negatively impacted by changes in foreign currency exchange rates in FY23 by $2.7 million.

 Non-GAAP Financial Measures

 Non-GAAP Non-operating (loss) income, Non-GAAP Income tax provision, Non-GAAP Noncontrolling interests, Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, Free Cash Flow,
 and Net Cash are "non-GAAP financial measures" as such term is defined by the Securities and Exchange Commission and may differ from similarly named non-GAAP financial measures used by other companies. The financial tables below reconcile
 Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our future on-going performance because they
 enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not intended to represent funds available for our discretionary use and are not intended to represent, or be used as a
 substitute for, net income attributable to Photronics, Inc. shareholders, diluted earnings per share, cash and cash equivalents, or cash flows from operations, as measured under GAAP. The items excluded from these non-GAAP metrics but included in
 the calculation of their closest GAAP equivalent, are significant components of the consolidated statements of income, consolidated balance sheets and statement of cash flows and must be considered in performing a comprehensive assessment of
 overall financial performance.

 The following table reconciles GAAP to Non-GAAP Income at the balance sheet dates. The columns may not foot due to rounding.

 Three Months ended

 Year ended

 July 30,

 2023

 2023

 2022

 2023

 2022

 2021

 Reconciliation of GAAP to Non-GAAP Non-operating (loss) Income:

 GAAP Non-operating (loss) income, net

 $

 18,660

 $

 (911

)

 $

 10,797

 $

 16,896

 $

 27,167

 $

 7,452

 FX (gain) loss

 (13,234

)

 4,543

 (10,369

)

 (2,466

)

 (27,344

)

 (7,972

)

 Non-GAAP Non-operating (loss) income, net

 $

 5,426

 $

 3,632

 $

 $

 14,430

 $

 (177

)

 $

 (520

)

 Reconciliation of GAAP to Non-GAAP Income tax provision:

 GAAP Income tax provision

 $

 20,288

 $

 16,098

 $

 16,074

 $

 70,312

 $

 59,791

 $

 23,190

 Estimated tax effects of FX (gain) loss

 3,437

 (1,193

)

 2,522

 5,933

 1,829

 Non-GAAP Income tax provision

 $

 16,851

 $

 17,291

 $

 13,552

 $

 69,995

 $

 53,858

 $

 21,361

 Reconciliation of GAAP to Non-GAAP Noncontrolling interests:

 GAAP Noncontrolling interests

 $

 18,545

 $

 21,296

 $

 18,204

 $

 74,149

 $

 60,456

 $

 23,367

 Estimated noncontrolling interest effects of above

 2,431

 1,328

 1,990

 2,676

 4,275

 (481

)

 Non-GAAP Noncontrolling interests

 $

 16,114

 $

 19,968

 $

 16,214

 $

 71,473

 $

 56,181

 $

 23,848

 Reconciliation of GAAP to Non-GAAP Net Income:

 GAAP Net Income

 $

 44,611

 $

 26,959

 $

 37,060

 $

 $

 $

 FX (gain) loss

 (13,234

)

 4,543

 (10,369

)

 (2,466

)

 (27,344

)

 (7,972

)

 Estimated tax effects of above

 3,437

 (1,193

)

 2,522

 5,933

 1,829

 Estimated noncontrolling interest effects of above

 2,431

 1,328

 1,990

 2,676

 4,275

 (481

)

 Non-GAAP Net Income

 $

 37,245

 $

 31,637

 $

 31,203

 $

 126,012

 $

 101,650

 $

 48,825

 Weighted-average number of common shares outstanding - Diluted

 62,067

 61,974

 61,374

 61,755

 61,189

 61,999

 Reconciliation of GAAP to Non-GAAP EPS:

 GAAP diluted earnings per share

 $

 0.72

 $

 0.44

 $

 0.60

 $

 2.03

 $

 1.94

 $

 0.89

 Effects of the above adjustments

 (0.12

)

 0.07

 (0.10

)

 0.01

 (0.28

)

 (0.10

)

 Non-GAAP diluted earnings per share

 $

 0.60

 $

 0.51

 $

 0.51

 $

 2.04

 $

 1.66

 $

 0.79

 The following table reconciles Net cash provided by operating activities to Free Cash Flow for FY23, FY22, and FY21. The columns may not foot due to rounding. Prior year
 amounts in the non-GAAP disclosure below have been recast to eliminate government incentives to conform to current year presentation.

 FY23

 FY22

 FY21

 Free Cash Flow

 Net cash provided by operating activities

 $

 302.2

 $

 275.2

 $

 150.8

 Purchases of property, plant and equipment

 (131.3

)

 (112.3

)

 (109.1

)

 Free cash flow

 $

 170.9

 $

 162.9

 $

 41.7

 The following table reconciles Cash and cash equivalents to Net Cash at the balance sheet dates. The increase in Net Cash was primarily driven by an increase in Net cash provided by
 operating activities, as discussed above. The columns may not foot due to rounding.

 As of

 2023

 2022

 Net Cash

 Cash, cash equivalents

 $

 499.3

 $

 319.7

 Current portion of Long-term debt

 (6.6

)

 (10.0

)

 (18.0

)

 (32.3

)

 Net cash

 $

 474.7

 $

 277.4

 Business Outlook

 Our current business outlook and guidance was provided in our Full Year and Fourth Quarter Fiscal 2023 Results earnings call, and related slide deck. These can be accessed in the investor section of our website -
 www.photronics.com.

 Our future results of operations and the other forward-looking statements contained in this filing and in our " Full Year and Fourth Quarter Fiscal 2023 Results " earnings call
 and presentation involve a number of risks and uncertainties, some of which are discussed in Part I, Item 1A of this report. A number of other unforeseeable factors could cause actual results to differ materially from our expectations.

 Critical Accounting Estimates

 Our consolidated financial statements are based on the selection and application of accounting policies, which require management to make significant estimates and assumptions. We believe the following to be the more
 critical areas that require judgment when applying our accounting policies:

 •

 Revenue Recognition: The application of GAAP related to the measurement and recognition of revenue requires us to make judgments and estimates, including the determination of whether we should recognize revenues as we perform or
 upon the completion of our performance, as these determinations impact the timing and amount of our reported revenues and net income. Other significant judgments include the estimation of the point in the manufacturing process at which we
 are entitled to recognize revenue, as well as the measurement of our progress towards satisfying our performance obligations, which determine the amount of revenue we are entitled to recognize.

 •

 Property, Plant and Equipment: Significant judgment and assumptions are employed when we establish the estimated useful lives of asset classes, and determine when depreciation should commence for individual assets, as these
 determinations can significantly impact our gross margin and research and development expenses. Significant judgment would also be employed when events or changes in circumstances indicate that the carrying amount of a group of assets may
 not be recoverable, as the recoverability assessment requires us to forecast future cash flows related to these assets; this evaluation can significantly impact our gross margin and operating expense.

 •

 Leases: Significant judgment is applied in the determination of whether an arrangement is, or contains, a lease and, in certain instances, whether the lease should be classified as an operating lease or a finance lease, which can
 impact the timing and classification of lease costs.

 •

 Contingencies: We are subject to the possibility of losses from various contingencies. Significant judgment is necessary to estimate the probability and amount of a loss, if any, from such contingencies. An accrual is made when
 it is probable that a liability has been incurred or an asset has been impaired and the amount of loss can be reasonably estimated. Changes in estimates related to, and resolutions of, contingencies may have a material impact on our
 financial performance.

 •

 Income Taxes: Our annual tax rate is determined based on our income and the jurisdictions where it is earned, statutory tax rates, and the tax impacts of items treated differently for tax purposes than for financial reporting
 purposes. Also inherent in determining our annual tax rate are judgments and assumptions regarding the recoverability of certain deferred tax assets, and our ability to uphold certain tax positions. We are subject to complex tax laws, in
 the U.S. and numerous foreign jurisdictions, and the manner in which they apply can be open to interpretation. Realization of deferred tax assets is dependent upon generating sufficient taxable income in the appropriate jurisdiction in
 future periods, which involves business plans, planning opportunities, and expectations about future outcomes. Our assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.

 There are a number of estimates and assumptions inherent in calculating the various components of our tax provision. Future events such as changes in tax legislation, geographic mix of earnings, findings in tax audits,
 and earnings repatriation plans could have an impact on those estimates and our effective tax rate.

 Please refer to Notes 1, 10, 13, and 15 to our consolidated financial statements for additional information related to these critical accounting estimates.

 Effect of Recent Accounting Pronouncements

 See Note 22 to our consolidated financial statements of this report for recent accounting pronouncements that may affect our financial reporting.

 ITEM 7A.

 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 Foreign Currency Exchange Rate Risk

 We conduct business in several major currencies throughout our worldwide operations, and our financial performance may be affected by fluctuations in the exchange rates of these currencies. Changes in exchange rates
 can positively or negatively affect our reported revenue, operating income, assets, liabilities, and equity. The functional currencies of our Asian subsidiaries are the South Korean won, the New Taiwan dollar, the RMB, and the Singapore dollar. The
 functional currencies of our European subsidiaries are the British pound and the euro. In addition, we engage in transactions and have exposures to the Japanese yen.

 We attempt to minimize our risk of foreign currency transaction losses by producing products in the same country in which the products are sold (thereby generating revenues and incurring expenses in the same currency),
 and by managing our working capital. However, in some instances, we sell products in a currency other than the functional currency of the country where it was produced, or purchase products in a currency that differs from the functional currency of
 the purchasing entity. We may also enter into derivative contracts to mitigate our exposure to foreign currency fluctuations when we have a significant purchase obligation or significant receivable denominated in a currency that differs from the
 functional currency of the transacting subsidiary. We do not enter into derivatives for speculative purposes. There can be no assurance that this approach will protect us from the need to recognize significant foreign currency transaction gains and
 losses, especially in the event of a significant adverse movement in the value of any foreign currency in which we conduct business against any of our functional currencies, including the U.S. dollar.

 Our primary net foreign currency exposures as of October 31, 2023, included the South Korean won, the Japanese yen, the New Taiwan dollar, the Chinese renminbi, the Singapore dollar, the British pound sterling, and the
 euro. As of October 31, 2023, a 10% adverse movement in the value of these currencies against the functional currencies of our subsidiaries would have resulted in a net unrealized pre-tax loss of $52.0 million, which represents an increase of $17.3
 million from the same movement as of October 31, 2022. The increase in foreign currency rate change risk is primarily the result of increased net exposures of the New Taiwan dollar and South Korean won against the U.S. dollar. We do not believe
 that a 10% change in the exchange rates of other non-U.S. dollar currencies would have had a material effect on our October 31, 2023, consolidated financial statements.

 Interest Rate Risk

 A 10% adverse movement in the interest rates on our variable rate borrowings would not have had a material effect on our October 31, 2023, consolidated financial statements.

 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 Page

 Report of Independent Registered Public Accounting Firm Deloitte & Touche LLP (PCAOB ID 34)

 Consolidated

 Balance Sheets

 Consolidated Statements of Income

 Consolidated Statements of Comprehensive (Loss) Income

 Consolidated Statements of Equity

 Consolidated Statements of Cash Flows

 Notes to Consolidated Financial Statements

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To the shareholders and the Board of Directors of Photronics, Inc.

 Opinion on the Financial Statements

 We have audited the accompanying consolidated balance sheets of Photronics, Inc. (the "Company") as of October 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three
 years in the period ended October 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as
 of October 31, 2023 and October 31, 2022, and the results of its operations and its cash flows for each of the three years in the period ended October 31, 2023, in conformity with accounting principles generally accepted in the United States of
 America.

 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of October 31, 2023, based on criteria established in
 Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated December 22, 2023, expressed an unqualified opinion on the Company's internal control over financial
 reporting.

 Basis for Opinion

 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and
 are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether
 due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
 included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
 the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical Audit Matter

 The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or
 disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements,
 taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 Revenue — Contracts with Customers— Refer to Note 1 & 9 of the financial statements

 Critical Audit Matter Description

 The Company recognizes revenue over time for in-process production orders that have not shipped for contracts with customers for which it has an enforceable right to bill and collect consideration, including a reasonable profit, in the event the
 in-process orders are cancelled by the customers. In addition, as photomasks are manufactured to customer specifications, they have no alternative use to the Company. This results in the Company recording a corresponding contract asset as of
 period-end for these contracts. Significant judgment is exercised by the Company in determining the amount of revenue to recognize for these contracts and the corresponding contract asset, specifically in estimating the point within the production
 cycle at which the production orders stand in relation to the Company's enforceable right within the contract. Pursuant to these contracts, revenue recognized over time and the associated contract asset as of October 31, 2023 was $11 million.

 We identified the determination of revenue recognized over time for in-process productions orders as of October 31, 2023 as a critical auditing matter because of the significant estimates and assumptions management makes in determining the
 amount of revenue to recognize for these contracts. This required a high degree of audit judgment and an increased extent of effort when performing audit procedures to evaluate the reasonableness of management's determination of the progress point
 of in-process orders and the amount of revenue recognized over time and the corresponding contract asset as of October 31, 2023.

 How the Critical Audit Matter Was Addressed in the Audit

 Our audit procedures related to the Company's determination of the progress point of in-process orders and resulting revenue recognized over time and corresponding contract asset as of October 31, 2023 included the following:

 - We tested
 the operating effectiveness of controls over management's determination of the point in the production process and correlation to stated contractual rights.

 - We tested the
 mathematical accuracy of management's calculations of revenue and the associated timing of revenue recognized in the consolidated financial statements.

 - We tested the accuracy
 and completeness of the in-process orders report by performing physical observation.

 - We selected a sample of
 in-process production orders as of October 31, 2023 and performed the following procedures for each selection:

 - Obtained and read the customer
 agreement/purchase order, invoice, and quote to determine whether the company has an enforceable right to bill and collect consideration.

 - Evaluated management's
 identification of significant contract terms and resulting revenue recognition for the in-process production order.

 - Evaluated
 management estimate of the production point for the in-process order corresponding revenue recognition and contract asset based on the Company's enforceab le right within the contract.

 /s/ Deloitte & Touche LLP

 Boston, Massachusetts

 We have served as the Company's auditor since 1991.

 Consolidated Balance Sheets

 (in thousands, except per share amounts)

 2023

 2022

 ASSETS

 Current assets:

 Cash and cash equivalents

 $

 499,292

 $

 319,680

 Short-term investments

 12,915

 38,820

 Accounts receivable, net of allowance of $ 1,099 in 2023 and $ 1,002 in 2022

 194,927

 198,147

 Inventories

 49,963

 50,753

 Other current assets

 28,353

 37,252

 Total current assets

 785,450

 644,652

 Property, plant and equipment, net

 709,244

 643,873

 Deferred income taxes

 21,297

 19,816

 Other assets

 10,230

 7,489

 Total assets

 $

 1,526,221

 $

 1,315,830

 LIABILITIES AND EQUITY

 Current liabilities:

 Current portion of long-term debt

 $

 6,621

 $

 10,024

 Accounts payable

 84,024

 79,566

 Accrued liabilities

 94,578

 104,207

 Total current liabilities

 185,223

 193,797

 17,998

 32,310

 Other liabilities

 47,391

 27,634

 Total liabilities

 250,612

 253,741

 Commitments and contingencies

 Equity:

 Preferred stock, $ 0.01 par value, 2,000 shares authorized, none issued and outstanding

 -

 -

 Common stock, $ 0.01 par value, 150,000 shares authorized, 61,310 shares issued and outstanding at October 31, 2023,
 and 60,791 shares issued and outstanding at October 31, 2022

 Additional paid-in capital

 502,010

 493,741

 Retained earnings

 561,119

 435,634

 Accumulated other comprehensive loss

 ( 88,734

)

 ( 98,456

)

 Total Photronics, Inc. shareholders' equity

 975,008

 831,527

 Noncontrolling interests

 300,601

 230,562

 Total equity

 1,275,609

 1,062,089

 Total liabilities and equity

 $

 1,526,221

 $

 1,315,830

 Consolidated
 Statements of Income

 (in thousands, except per share amounts)

 2023

 2022

 2021

 Revenue

 $

 892,076

 $

 824,549

 $

 663,761

 Cost of goods sold

 555,914

 530,336

 496,717

 336,162

 294,213

 167,044

 Operating expenses:

 Selling, general and administrative

 69,458

 63,989

 57,525

 Research and development

 13,654

 18,341

 18,490

 Total operating expenses

 83,112

 82,330

 76,015

 Other operating (loss) income, net

 -

 ( 17

)

 3,525

 Operating income

 253,050

 211,866

 94,554

 Non-operating income (expense):

 Foreign currency transactions impacts, net

 2,466

 27,344

 7,972

 Interest income and other income, net

 14,863

 1,680

 1,165

 Interest expense, net of subsidies

 ( 433

)

 ( 1,857

)

 ( 1,685

)

 Income before income tax provision

 269,946

 239,033

 102,006

 70,312

 59,791

 23,190

 199,634

 179,242

 78,816

 Net income attributable to noncontrolling interests

 74,149

 60,456

 23,367

 Net income attributable to Photronics, Inc. shareholders

 $

 $

 $

 Earnings per share:

 Basic

 $

 2.05

 $

 1.96

 $

 0.90

 Diluted

 $

 2.03

 $

 1.94

 $

 0.89

 Weighted-average number of common shares outstanding:

 Basic

 61,139

 60,559

 61,407

 Diluted

 61,755

 61,189

 61,999

 Consolidated Statements of
 Comprehensive (Loss) Income

 (in thousands)

 2023

 2022

 2021

 $

 199,634

 $

 179,242

 $

 78,816

 Other comprehensive income (loss), net of tax of $ 0:

 Foreign currency translation adjustments

 5,615

 ( 151,209

)

 8,478

 Other

 ( 3

)

 ( 69

)

 Net other comprehensive income (loss)

 5,612

 ( 150,786

)

 8,409

 Comprehensive income

 205,246

 28,456

 87,225

 Less: comprehensive income attributable to noncontrolling interests

 70,039

 28,697

 29,163

 Comprehensive income (loss) attributable to Photronics, Inc. shareholders

 $

 135,207

 $

 ( 241

)

 $

 58,062

 Consolidated
 Statements of Equity

 Years Ended October 31, 2023, 2022 and 2021

 (in thousands)

 Photronics, Inc. Shareholders

 Common Stock

 Additional

 Paid-In

 Retained

 Treasury

 Accumulated

 Other

 Comprehensive

 Non-

 Controlling

 Total

 Shares

 Capital

 Earnings

 Stock

 Income (Loss)

 Interests

 Equity

 Balance at October 31, 2020

 63,138

 $

 $

 507,336

 $

 279,037

 $

 —

 $

 17,958

 $

 157,304

 $

 962,266

 -

 -

 -

 -

 -

 23,367

 78,816

 Other comprehensive income

 -

 -

 -

 -

 -

 2,613

 5,796

 8,409

 Shares issued under equity plans

 3,561

 -

 -

 -

 -

 3,569

 Share-based compensation expense

 -

 -

 5,348

 -

 -

 -

 -

 5,348

 Dividends to noncontrolling interest

 -

 -

 -

 -

 -

 -

 ( 9,597

)

 ( 9,597

)

 Purchases of treasury stock

 -

 -

 -

 -

 ( 48,249

)

 -

 -

 ( 48,249

)

 Retirement of treasury stock

 ( 3,919

)

 ( 39

)

 ( 31,573

)

 ( 16,637

)

 48,249

 -

 -

 -

 Balance at October 31, 2021

 60,024

 484,672

 317,849

 -

 20,571

 176,870

 1,000,562

 -

 -

 -

 -

 -

 60,456

 179,242

 Other comprehensive loss

 -

 -

 -

 -

 -

 ( 119,027

)

 ( 31,759

)

 ( 150,786

)

 Shares issued under equity plans

 4,280

 -

 -

 -

 -

 4,290

 Share-based compensation expense

 -

 -

 6,308

 -

 -

 -

 -

 6,308

 Contribution from noncontrolling interest

 -

 -

 -

 -

 -

 -

 24,995

 24,995

 Purchases of treasury stock

 -

 -

 -

 -

 ( 2,522

)

 -

 -

 ( 2,522

)

 Retirement of treasury stock

 ( 187

)

 ( 2

)

 ( 1,519

)

 ( 1,001

)

 2,522

 -

 -

 -

 Balance at October 31, 2022

 60,791

 493,741

 435,634

 -

 ( 98,456

)

 230,562

 1,062,089

 -

 -

 -

 -

 -

 74,149

 199,634

 Other comprehensive income (loss)

 -

 -

 -

 -

 -

 9,722

 ( 4,110

)

 5,612

 Shares issued under equity plans

 -

 -

 -

 -

 Share-based compensation expense

 -

 -

 8,001

 -

 -

 -

 -

 8,001

 Balance at October 31, 2023

 61,310

 $

 $

 502,010

 $

 561,119

 $

 -

 $

 ( 88,734

)

 $

 300,601

 $

 1,275,609

 Cons olidated Statements of Cash Flows

 (in thousands)

 2023

 2022

 2021

 Cash flows from operating activities:

 $

 199,634

 $

 179,242

 $

 78,816

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

 Depreciation and amortization of property, plant and equipment

 80,473

 79,971

 87,535

 Amortization of intangible assets

 2,861

 Share-based compensation

 8,001

 6,308

 5,348

 Deferred income taxes

 ( 927

)

 ( 2,110

)

 Changes in assets, liabilities, and other:

 Accounts receivable

 4,026

 ( 51,233

)

 ( 36,620

)

 Inventories

 1,236

 ( 2,039

)

 2,987

 Other current assets

 9,665

 1,204

 ( 13,472

)

 Accounts payable, accrued liabilities and other

 ( 294

)

 60,566

 25,427

 Net cash provided by operating activities

 302,176

 275,187

 150,772

 Cash flows from investing activities:

 Purchases of property, plant and equipment

 ( 131,295

)

 ( 112,338

)

 ( 109,099

)

 Purchases of available-for-sale debt securities

 ( 20,192

)

 ( 38,854

)

 -

 Proceeds from maturities of available-for-sale debt securities

 47,537

 -

 -

 Government incentives

 2,522

 3,615

 5,775

 Purchases of intangible assets

 ( 117

)

 ( 205

)

 ( 170

)

 Other

 -

 -

 Net cash used in investing activities

 ( 101,545

)

 ( 147,757

)

 ( 103,494

)

 Cash flows from financing activities:

 Repayments of debt

 ( 18,439

)

 ( 65,440

)

 ( 20,352

)

 Purchases of treasury stock

 -

 ( 2,522

)

 ( 48,249

)

 Contributions from noncontrolling interests

 -

 24,995

 -

 Dividends paid to noncontrolling interests

 -

 -

 ( 9,597

)

 Proceeds from share-based arrangements

 1,248

 5,749

 3,874

 Proceeds from long-term debt

 -

 -

 20,858

 Net settlements of restricted stock awards

 ( 1,302

)

 ( 1,471

)

 ( 437

)

 Net cash used in financing activities

 ( 18,493

)

 ( 38,689

)

 ( 53,903

)

 Effects of exchange rate changes on cash, cash equivalents, and restricted cash

 ( 2,680

)

 ( 46,012

)

 4,703

 Net increase (decrease) in cash, cash equivalents, and restricted cash

 179,458

 42,729

 ( 1,922

)

 Cash, cash equivalents, and restricted cash at beginning of year

 322,409

 279,680

 281,602

 Cash, cash equivalents, and restricted cash at end of year

 501,867

 322,409

 279,680

 Less: Ending restricted cash

 2,575

 2,729

 3,010

 Cash and cash equivalents at end of year

 $

 499,292

 $

 319,680

 $

 276,670

 Supplemental disclosure of non-cash information:

 Accruals for property, plant and equipment purchased during year

 $

 18,607

 $

 3,266

 $

 7,794

 Notes to Consolidated Financial Statements

 Years Ended October 31, 2023, October 31, 2022 and October 31, 2021

 (in thousands, except share amounts)

 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Business

 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 ICs and FPDs, and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD
 substrates during the fabrication of integrated circuits, a variety of FPDs and, to a lesser extent, other types of electrical and optical components. We currently have eleven manufacturing facilities, located in Taiwan ( 3), China ( 2), Korea, the United States ( 3), and Europe ( 2).

 Consolidation

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

 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 are based on historical experience and on various assumptions that are believed to be reasonable, 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.

 Cash and Cash Equivalents

 Cash and cash equivalents include cash and highly liquid investments
 with an original maturity of three months or less, readily convertible to known amounts of cash, and so near to their maturity that they present insignificant risk of changes in value because of changes in interest rates. The carrying values of cash equivalents approximate their fair values, due to the short-term maturities of these instruments.

 Investments

 Investments consist of U. S. government securities and are classified as available-for-sale. We classify available-for-sale
 securities on our consolidated balance sheet as follows:

 -

 Maturing within three months or less from the date of purchase

 Cash and cash equivalents

 -

 Maturing, as of the date of purchase, more than three months, but

 with remaining maturities of less than one year, from the balance sheet date

 Short-term investments

 -

 Maturing one year or more from the balance sheet date

 Long-term marketable investments

 As of October 31, 2023, and October 31, 2022, all of our available-for-sale securities had remaining maturities less than one
 year, and have been classified as Short-term investments.

 Available-for-sale debt investments are reported at fair value, with unrealized gains or losses (net of tax) reported in Accumulated other comprehensive (loss) income. The fair values of our available-for-sale securities are Level 1 measurements, based on quoted prices from active markets for identical assets. In the event of a
 sale of an available-for-sale debt investment, we would determine the cost of the investment sold at the specific individual security level, and would include any gain or loss in Interest income and other
 income, net, where we also report periodic interest earned and the amortization (accretion) of discounts (premiums) related to these investments. The table below provides information on our available-for-sale debt securities.

 Amortized

 Cost

 Unrealized

 Gains

 Unrealized

 Losses

 Carrying

 Value

 Amortized

 Cost

 Unrealized

 Gains

 Unrealized

 Losses

 Carrying

 Value

 Government securities

 $

 12,913

 $

 $

 ( 2

)

 $

 12,915

 $

 38,911

 $

 -

 $

 ( 91

)

 $

 38,820

 Periodically, at the individual security level, we review our investments to determine if they are impaired. An investment would
 be impaired if its amortized cost exceeds its fair value. In the event that an investment's amortized cost exceeds its fair value, we would determine whether the impairment is temporary or other than temporary. Factors indicating that an other
 than temporary impairment had occurred that we would consider in our determination include whether we have decided to sell the security and whether it is more likely than not that we may be required to sell the security before its amortized cost
 basis is recovered. In addition, for certain types of securities, we would assess whether the discounted cash flows we expect to collect on an investment are less than its amortized cost and, under such a circumstance, recognize the existing
 credit loss as an impairment.

 Accounts Receivable, Unbilled Receivables and Allowance for Credit Losses

 We generally record our accounts receivable at their billed
 amounts. The Company recognizes unbilled receivables when the Company has
 satisfied its performance obligations, has an unconditional right to consideration, but has not yet issued an invoice. All outstanding past due customer invoices are reviewed for collectability during, and at the end of, every
 reporting period. To the extent that 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. Refer to our revenue recognition policy, below, for additional information on our accounting for accounts receivable.

 Inventories

 Inventories are stated at the lower of cost, determined under the
 first-in, first-out ("FIFO") method, or net realizable value. Please refer to Note 4 of our consolidated financial statements for additional information on our inventories. Inventory reserves are established when conditions indicate that the net
 realizable value is less than costs due to assigned expiration dates or other causes based on individual facts and circumstances. If net realizable value is less than cost at the balance sheet date, the carrying amount is reduced to the realizable
 value, and the difference is recognized as a loss on valuation of inventories within cost of sales.

 Property, Plant and Equipment

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

 Depreciation and amortization, essentially all of which are included in Cost of goods sold in our consolidated statements of income, are computed using the straight-line method over the estimated useful lives of the related assets. Buildings and improvements are depreciated over 10 to 39 years, machinery and equipment
 over 5 to 15 years, and
 furniture, fixtures, and office equipment over 3 to 5 years. Leasehold improvements are amortized over the lesser of the life of the lease or the estimated useful life of the improvement. We employ judgment when making assumptions about the
 estimated useful lives and depreciation periods we assign to property, plant and equipment, and when events or changes in circumstances such as a significant industry downturn, plant closures, technological obsolescence, or other occurrences indicate
 that their carrying amounts may not be recoverable.

 Impairment of Long-Lived Assets

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

 Restricted Cash

 Restricted cash in the amounts of $ 2.6
 million and $ 2.7 million are included in Other assets on our October 31, 2023 and October 31,
 2022, consolidated balance sheets, respectively. The restrictions on these amounts are primarily related to land lease agreements and customs requirements.

 Treasury Stock

 We record treasury stock purchases under the cost method, recording
 the entire cost of the acquired stock as treasury stock. Gains and losses on subsequent reissuances would be credited or charged to additional paid-in capital, and we would employ the average cost method (with average cost being determined separately
 for each share repurchase program), in the event that we subsequently reissue shares. When we retire our treasury stock, any excess of the
 repurchase price paid over par value is allocated between additional paid-in capital and retained earnings.

 Revenue Recognition

 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 governmental 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 to customers 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 no t impair any contract
 assets or accounts receivable in 2023, 2022, or 2021.

 Contract Costs

 We pay commissions to third-party sales agents for certain sales that 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 would not recognize any portion of these sales
 commissions as costs of obtaining a contract, nor do we currently foresee other circumstances under which we would recognize such assets.

 Remaining Performance Obligations

 As we are typically required to fulfill customer orders within a short time period, our backlog of orders is generally not in
 excess of one to two weeks
 for IC photomasks and two to three
 weeks for FPD photomasks. However, the demand for some IC photomasks can extend beyond the traditional time period; thus the backlog, in some individual cases, can extend to as long as two to three months. As allowed under Topic 606, we have elected not to disclose
 our remaining performance obligations, which represent the costs associated with the completion of the manufacturing process of in-process photomasks related to contracts that have an original duration of one year or less.

 Product Warranties

 Our photomasks are sold under warranties that generally range from one to twenty-four months. We warrant that our photomasks conform to customer
 specifications, and we will typically repair, replace, or issue a refund for any photomasks that fail to do so. The warranties do not represent separate performance obligations in our revenue contracts. Historically, customer claims under warranties have been immaterial.

 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 and evaluate at that time whether the lease is an operating lease or a finance lease. We recognize right-of-use assets and lease liabilities for operating and finance leases with terms greater than 12 months. Please refer
 to Note 10 of our consolidated financial statements for additional information.

 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. An arrangement is determined to be a lease when it conveys to us the right to control the use of an identified asset for a period of time in
 exchange for consideration. 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 1) 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 and 2) for all classes of assets, the practical expedient to
 not separate lease components of a contract from nonlease components of a contract.

 If an arrangement is determined to be, or include, a lease, we then apply the classification criteria in Topic 842 to determine
 whether the lease is a finance lease or an operating lease. For both types of leases, at their commencement dates (which are the dates on which a lessor makes an underlying asset available for our use), we recognize ROU assets, which represent our
 rights to use the underlying assets, and lease liabilities which represent our obligation to make payments for such rights. 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. Variable lease payments, other than those that are dependent on an index or on a rate (at which they are measured on their commencement dates), 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.

 The initial measurement process for finance leases and operating leases is the same, except that, for operating leases, we
 generally apply our incremental borrowing rates for collateralized borrowings over terms similar to those of the leases to determine the lease liability while, for finance leases, we use the interest rates implicit in the leases. The initial
 measurement of ROU assets may require further adjustments for lease prepayments and initial direct costs we incur.

 Operating leases are expensed on a straight-line basis over the terms of the leases, and are included in the consolidated
 statement of income in Cost of goods sold, Selling, general and
 administrative, or Research and development expense in accordance with the use of the underlying asset. Finance lease ROU assets are amortized over
 the estimated useful life of the underlying asset; the expenses are included in the consolidated statement of income in Cost of goods sold. Finance lease
 liabilities are subsequently remeasured by increasing the liability to reflect interest accrued during a period and decreasing the liability to reflect payments made during the period. Interest expense incurred on finance leases is included in Interest expense on the consolidated statements of income.

 Cash paid for operating leases and interest paid for finance leases are included in the consolidated statement of cash flows as
 operating activities in Accounts payable, accrued liabilities and other; cash paid for finance lease principal is included in Repayments of debt in the financing
 activities section of the consolidated statement of cash flows.

 Share-Based Compensation

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

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

 Research and Development

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

 Foreign Currency Translation

 Our non-U.S. subsidiaries maintain their books of account in their respective local currencies, which are their functional
 currencies. Assets and liabilities of such subsidiaries are translated to U.S. dollars at year-end exchange rates. Income and expenses are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments
 are accumulated and reported in Accumulated other comprehensive (loss) income, a component of equity on our consolidated balance sheets.

 Government Grants

 The Company receives grants from governments in support of
 certain of the Company's business activities, primarily related to capital expenditures and research and development activities. Grants are generally received in the form of cash as either a recovery for expenses incurred, qualified assets
 purchased or as an incentive for meeting certain eligibility requirements that may be part of a grant agreement. Grant agreements terms generally extend for a period of up to 4 years. We account for funds we receive from government grants by either reducing the costs of the assets (if the grant relates to capital expenditures) or expenses which could be Cost of
 goods sold, Selling, general and administrative, and Research and development expenses in the consolidated statements of income once the conditions and restrictions of the grant have been met and payment has been received. If the funds we receive
 cannot be attributed to specific assets or expenses, they would be recognized as other income, and included in Interest income and other income, net in the consolidated statements of income. Funds we receive from government grants are classified in
 our consolidated statements of cash flows as either Net cash provided by operating activities or Net cash provided by investing activities, in accordance with how we expend the funds. When a grant is received before conditions of the grant have
 been met, the grant is recorded in Accrued liabilities or Other liabilities in the Consolidated Balance Sheets. For the year ended October 31, 2023, grants recorded in the Company's Consolidated Financial Statements were not material.

 Income Taxes

 The income tax provision is computed on the basis of the income or loss before income taxes for each entity in its respective tax
 jurisdiction. Deferred income taxes reflect the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and their amounts used for income tax purposes, as well as the tax effects of net
 operating losses and tax credit carryforwards. We employ judgment and make assumptions when establishing valuation allowances for deferred income tax assets, if their realization is not deemed to be more likely than not, by considering future market
 growth, operating forecasts, future taxable income, and the mix of earnings among the tax jurisdictions in which we operate. Accordingly, income taxes charged against earnings may have been impacted by changes in the valuation allowances. We are
 eligible for investment tax credits in U.S. and non-U.S. tax jurisdictions. We account for investment tax credits under the "flow-through" method of accounting. As permitted in ASC 740 "Income Taxes", under the flow-through method of accounting, the
 tax benefit from an investment tax credit is recorded as a reduction of income taxes in the period in which the credit is generated.

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

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

 Earnings Per Share

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

 Variable Interest Entities

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

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

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

 NOTE 2 – ACCOUNTS RECEIVABLE

 The

 components of Accounts Receivable at the
 balance sheet dates are presented below.

 2023

 2022

 Accounts Receivable

 $

 171,433

 $

 178,303

 Unbilled Receivable

 24,593

 20,846

 Allowance for Credit Losses

 ( 1,099

)

 ( 1,002

)

 $

 194,927

 $

 198,147

 NOTE 3 - OTHER CURRENT ASSETS

 Presented below are the components of Other current assets at
 the balance sheet dates.

 2023

 2022

 Contract assets

 $

 10,984

 $

 15,752

 Prepaid expenses

 10,031

 8,263

 Other

 2,537

 Prepaid and refundable income taxes

 2,489

 9,709

 Recoverable value added taxes

 2,312

 2,714

 $

 28,353

 $

 37,252

 NOTE 4 - INVENTORIES

 The components of Inventories at the balance sheet dates are presented below.

 2023

 2022

 Raw materials

 $

 48,948

 $

 49,326

 Work in process

 1,010

 1,408

 Finished goods

 $

 49,963

 $

 50,753

 NOTE 5 - PROPERTY, PLANT AND EQUIPMENT, NET

 Presented below are the components of Property, plant and equipment, net at the balance
 sheet dates.

 2023

 2022

 Land

 $

 11,378

 $

 11,134

 Buildings and improvements

 185,850

 168,024

 Machinery and equipment

 1,922,041

 1,769,478

 Leasehold improvements

 18,894

 18,802

 Furniture, fixtures, and office equipment

 15,856

 14,355

 Construction in progress

 55,434

 90,846

 2,209,453

 2,072,639

 Accumulated depreciation and amortization

 ( 1,500,209

)

 ( 1,428,766

)

 $

 709,244

 $

 643,873

 Information on ROU assets resulting from finance leases, at the balance sheet dates, is presented below.

 2023

 2022

 Machinery and equipment

 $

 42,820

 $

 42,760

 Accumulated amortization

 ( 7,655

)

 ( 4,784

)

 $

 35,165

 $

 37,976

 The following table presents depreciation expense (including the amortization of ROU assets) related to property, plant and
 equipment incurred during the reporting periods.

 Years Ended

 2023

 2022

 2021

 Depreciation Expense

 $

 80,472

 $

 79,971

 $

 87,535

 In the third quarter of 2021, we recorded a $ 3.5
 million gain on the trade-in of a lithography tool with a tool vendor as partial compensation for a more advanced tool.

 NOTE 6 - PDMCX JOINT VENTURE

 In January 2018, Photronics, Inc. through its wholly-owned subsidiary, Photronics Singapore PTE. LTD., (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 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 ( " the Agreement "). As discussed in Note 8, liens were granted to the local financing entity on property, plant, and equipment and were paid off during fiscal year 2023. These liens had an October 31, 2022, total carrying value of $ 70.7 million, as collateral for the loans.

 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
 that 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 consecutive months. Under all such circumstances, 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 we recorded from the operations of PDMCX during the reporting periods.

 Years Ended

 2023

 2022

 2021

 Net income from PDMCX

 $

 25,098

 $

 16,714

 $

 6,425

 As required by the guidance in ASC Topic 810 - "Consolidation", we evaluated our involvement in PDMCX for the purpose of determining whether we should
 consolidate its results in our financial statements. The initial step of our evaluation was to determine whether PDMCX was a VIE. Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial
 support, we determined that it is 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 years reporting periods;
 thus, as required, the PDMCX financial results have been consolidated with Photronics. Our conclusion was based on the fact 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 both 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 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 50.01 % variable interest we held during the current and prior year periods, we had the obligation to absorb losses, and the right to receive benefits, that could potentially be
 significant to PDMCX.

 The following table presents the carrying amounts of PDMCX assets and liabilities included in our 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.

 Carrying

 Photronics

 Interest

 Carrying

 Photronics

 Interest

 Current assets

 $

 135,960

 $

 67,994

 $

 127,542

 $

 63,784

 Noncurrent assets

 136,334

 68,181

 119,392

 59,708

 Total assets

 272,294

 136,175

 246,934

 123,492

 Current liabilities

 36,305

 18,156

 51,274

 25,643

 Noncurrent liabilities

 1,873

 9,161

 4,581

 Total liabilities

 38,178

 19,093

 60,435

 30,224

 Net assets

 $

 234,116

 $

 117,082

 $

 186,499

 $

 93,268

 NOTE 7 - ACCRUED LIABILITIES

 Presented

 below are the components of Accrued liabilities at the balance sheet dates. Prior year amounts have been reclassified to conform to the current year presentation.

 2023

 2022

 Compensation related expenses

 $

 37,218

 $

 33,061

 Income taxes

 24,080

 37,595

 Contract liabilities

 9,965

 18,872

 Property, plant, and equipment

 6,624

 2,989

 Value added and other taxes

 3,523

 2,923

 Service Contracts

 2,613

 Operating leases

 1,912

 1,354

 Telecommunications and utilities

 1,311

 1,111

 Other

 7,332

 5,540

 Accrued liabilities

 $

 94,578

 $

 104,207

 NOTE 8 - DEBT

 Due to the Q2 FY23 payoff of the Xiamen Project loans, as of October 31, 2023, the Current portion of long-term debt and the Long-term debt balances
 were comprised of finance leases as described below:

 As of October 31, 2023

 Xiamen

 Project Loans

 Finance

 Total

 Principal due:

 Next 12 months

 $

 -

 $

 6,621

 $

 6,621

 Months 13 – 24

 $

 -

 $

 17,972

 $

 17,972

 Months 25 – 36

 -

 Months 37 – 48

 -

 Months 49 – 60

 -

 -

 17,998

 17,998

 Total debt

 $

 -

 $

 24,619

 $

 24,619

 Interest rate at balance sheet date

 N/A

 %

 N/A

 Basis spread on interest rates

 0.00

 N/A

 Interest rate reset

 Quarterly

 N/A

 Maturity date

 December 2025

 N/A

 Periodic payment amount

 Varies as loans mature (1)

 Varies as Lease mature

 Periodic payment frequency

 Semiannual, on individual loans

 Monthly

 Loan collateral (carrying amount)

 $

 N/A

 $

 35,165

 (2)

 (1)

 During Q2 FY23, we
 repaid the entire balance of RMB 26.4 million (approximately $ 3.9 million) remaining on the loan, of which, RMB 2.0
 million was due to be paid in June 2025 and RMB 24.4 million was due to be paid in December 2025.

 (2)

 Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured
 interests.

 The tables below provide information on our long-term debt as of October 31, 2022.

 As of October 31, 2022

 Xiamen Project

 Loans

 Xiamen Working

 Capital Loans

 Hefei Equipment

 Loan

 Finance

 Total

 Principal due:

 Next 12 months

 $

 -

 $

 3,512

 $

 -

 $

 6,512

 $

 10,024

 Months 13 – 24

 $

 -

 $

 -

 $

 -

 $

 6,610

 $

 6,610

 Months 25 – 36

 1,098

 -

 -

 17,961

 19,059

 Months 37 – 48

 6,641

 -

 -

 -

 6,641

 $

 7,739

 $

 -

 $

 -

 $

 24,571

 $

 32,310

 Interest rate at balance sheet date

 4.30 % - 4.45

 %

 4.46

 %

 N/A

 (2)

 Basis spread on interest rates

 0.00

 76.00

 N/A

 N/A

 Interest rate reset

 Quarterly

 Monthly/Annually

 N/A

 N/A

 Maturity date

 December 2025

 July 2023

 Paid July 2022

 (2)

 Periodic payment amount

 Varies as loans mature (1)

 Increases as loans mature

 N/A

 (2)

 Periodic payment frequency

 Semiannual, on individual loans

 Semiannual, on individual loans

 N/A

 Monthly

 Loan collateral (carrying amount)

 $

 70,705

 N/A

 N/A

 $

 37,976

 (3)

 (1)

 During the three month period ended October 31, 2022, we repaid
 RMB 81.0 million (approximately $ 11.5
 million) that had contractual maturity dates ranging from December 2023 through June 2025.

 (2)

 See Note 10 for interest rates on lease liabilities, maturity
 dates, and periodic payment amounts.

 (3)

 Represents the carrying amount at the balance sheet date of the
 related ROU assets, in which the lessors have secured interests.

 Finance Leases

 In February 2021, we entered into a five-year $ 7.2 million finance lease for a high-end inspection tool. Monthly payments on the lease,
 which commenced in February 2021, are $ 0.1 million per month. Upon the payment of the fiftieth monthly payment and prior to payment of
 the fifty-first monthly payment, we may exercise an early buyout option to purchase the tool for $ 2.4 million. If we do not exercise
 the early buyout option, then at the end of the five-year lease term, the lease shall continue to renew on a month-to-month basis at
 the same rental terms; at our option, after the original term or any renewal periods, we may return the tool, elect to extend the lease, or purchase the tool at its fair market value. 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 1.08 %.

 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 former Corporate Credit Agreement, which are detailed below, 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.

 Xiamen Project Loans

 In November 2018, PDMCX obtained approval to borrow RMB 345.0 million 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. In February 2023, PDMCX repaid the entire outstanding balance of RMB 26.4 million ($ 3.9 million). As of October 31, 2023, PDMCX had no
 amount outstanding and the amounts may not be re-borrowed. The Project Loans were used to finance certain capital expenditures at the PDMCX facility and were collateralized by liens granted on the land use right, building, and certain equipment
 located at the facility. The interest rates on the Project Loans were variable (based on the RMB Loan Prime Rate of the National Interbank Funding Center), and 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. The Project Loans were subject to covenants and provisions, certain of which related to the assets
 pledged as security for the loans, all of which we were in compliance with at the time of repayment.

 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 July 2024. In December 2022, we repaid our entire outstanding balance of
 RMB 25.6 million ($ 3.6
 million) and the amounts may not be re-borrowed. As of October 31, 2023, PDMCX had no amount outstanding against the approval. The
 interest rates are variable, based on the RMB Loan Prime Rate of the National Interbank Funding Center. Interest incurred on the loans related to the amount borrowed 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.

 Corporate Credit Agreement

 In September 2018, we
 entered into a five-year amended and restated credit agreement (the "Credit Agreement"), which had a $ 50 million borrowing limit, with an expansion capacity to $ 100
 million. The Credit Agreement was secured by substantially all of our assets located in the United States and common stock we own in certain subsidiaries. The Credit Agreement was subject to covenants around minimum interest coverage ratio,
 total leverage ratio, and minimum unrestricted cash balance (all of which we were in compliance with at the termination of the agreement in September 2023), and limited the amount of cash dividends, distributions, and redemptions we could pay
 on our common stock to an aggregate annual amount of $ 50 million. The Credit Agreement expired, and was not renewed as of October 31,
 2023. There were no outstanding borrowings against the Credit Agreement at its expiration.

 Hefei Equipment Loan

 In October 2020, our Hefei, China, facility was approved to borrow RMB 200 million from the China Construction Bank Corporation. In July 2022, we repaid our entire outstanding balance of RMB 120.7 million ($ 18.0 million). This
 credit facility was subject to annual reviews and extension; the most recent extension expired in August 2022, and we did not apply for
 an extension. The loan proceeds were used to fund purchases of two lithography tools at the Hefei facility. The interest rate on the
 loan was variable and based on the RMB Loan Prime Rate of the National Interbank Funding Center. The borrowings were secured by the Hefei facility, its related land use right, and certain manufacturing equipment. The Hefei Equipment Loan was
 subject to covenants and provisions, certain of which relate to the assets pledged as security for the loan, including covenants for the ratio of total liabilities to total assets and the ratio of current assets to current liabilities, all of which
 we were in compliance with at the time of repayment.

 Interest Paid for Debt

 Interest payments, including capitalized interest of $ 0.1 million in 2021, were $ 0.5 million in
 2023, $ 2.8 million in 2022, and $ 3.8
 million in 2021. The weighted-average interest rate on our current portion of long-term debt for the periods ended October 31, 2023 and October 31, 2022 was 1.5 % and 2.5 %, respectively.

 NOTE 9 - REVENUE

 The following tables present our revenue for the years ended October 31, 2023, October 31, 2022, and October 31, 2021, disaggregated
 by product type, geographic origin, and timing of recognition.

 Revenue by Product Type

 2023

 2022

 2021

 IC

 High-end

 $

 194,939

 $

 195,332

 $

 162,973

 456,340

 397,694

 297,198

 Total IC

 $

 651,279

 $

 593,026

 $

 460,171

 FPD

 High-end

 $

 200,842

 $

 186,988

 $

 155,670

 39,955

 44,535

 47,920

 Total FPD

 $

 240,797

 $

 231,523

 $

 203,590

 $

 892,076

 $

 824,549

 $

 663,761

 Revenue by Geographic Origin*

 2023

 2022

 2021

 Taiwan

 $

 316,889

 $

 291,342

 $

 248,597

 China

 245,378

 212,598

 115,732

 Korea

 162,235

 156,139

 156,391

 128,879

 126,205

 105,023

 Europe

 36,579

 36,402

 36,242

 Other

 2,116

 1,863

 1,776

 $

 892,076

 $

 824,549

 $

 663,761

 * This table disaggregates revenue by the location in which it was earned.

 Revenue by Timing of Recognition

 2023

 2022

 2021

 Over time

 $

 838,628

 $

 758,359

 $

 606,332

 At a point in time

 53,448

 66,190

 57,429

 $

 892,076

 $

 824,549

 $

 663,761

 Contract Assets, Contract Liabilities, and
 Accounts Receivable

 The

 following table provides information about our contract balances at the balance sheet dates.

 2023

 2022

 Contract Assets

 Other current assets

 $

 10,984

 $

 15,752

 Contract Liabilities

 Accrued liabilities

 $

 9,965

 $

 18,872

 Other liabilities

 12,454

 4,989

 $

 22,419

 $

 23,861

 The following table presents revenue recognized
 from contract liabilities that existed at the beginning of the reporting periods.

 2023

 2022

 2021

 Revenue recognized from beginning liability

 $

 13,966

 $

 8,934

 $

 5,300

 Our invoice terms generally range from
 net thirty to ninety days,
 depending on both the geographic market in which the transaction occurs and our payment agreements with specific customers. In the event that our evaluation of a customer's business prospects and financial condition indicate that the customer
 presents a collectability risk, we modify terms of sale, which may require payment in advance of performance. At the time of adoption, we elected the practical expedient allowed under ASC Topic 606 "Revenue from Contracts with Customers" ("Topic
 606") that permits us not to adjust a contract's promised amount of consideration to reflect a financing component when the period between when we transfer control of goods or services to customers and when we are paid is one year or less.

 In
 instances when we are paid in advance of our performance, we record a contract liability and, as allowed under the practical expedient in Topic 606, recognize interest expense only if the period between when we receive payment from the customer
 and the date when we expect to be entitled to the payment is greater than one year. Historically, advance payments we've received from customers have generally not preceded the completion of our performance obligations by more than one year.

 NOTE 10 - LEASES

 The following table provides information on operating and finance leases included in our consolidated balance sheets.

 2023

 2022

 ROU Assets – Operating Leases

 Other assets

 $

 6,189

 $

 3,341

 ROU Assets – Finance Leases

 Property, plant and equipment, net

 $

 35,165

 $

 37,976

 Lease Liabilities – Operating Leases

 Accrued liabilities

 $

 1,912

 $

 1,354

 Other liabilities

 4,218

 1,928

 $

 6,130

 $

 3,282

 Lease Liabilities – Finance Leases

 Current portion of long-term debt

 $

 6,621

 $

 6,512

 17,998

 24,571

 $

 24,619

 $

 31,083

 The
 following table presents future lease payments under noncancelable operating and finance leases as of October 31, 2023. Imputed interest represents the difference between undiscounted cash flows and discounted cash flows.

 Fiscal Year

 Operating

 Finance

 2024

 $

 2,015

 $

 6,951

 2025

 1,712

 18,026

 2026

 1,327

 2027

 1,088

 2028

 Total lease payments

 $

 6,389

 $

 25,004

 Imputed interest

 ( 259

)

 ( 385

)

 Lease liabilities

 $

 6,130

 $

 24,619

 The following table presents lease costs for 2023, 2022, and 2021.

 2023

 2022

 2021

 Operating lease costs

 $

 2,278

 $

 2,253

 $

 2,904

 Short-term lease costs

 $

 $

 $

 Variable lease costs

 $

 $

 $

 Interest on finance lease

 $

 $

 $

 Amortization of ROU assets

 $

 2,870

 $

 2,917

 $

 1,867

 The
 following table presents statistical information related to our operating and finance leases. The information presented is as of the balance sheet dates.

 Weighted-

 average

 remaining

 lease term (in

 years)

 Weighted-

 average

 discount rate

 Weighted-

 average

 remaining

 lease term (in

 years)

 Weighted-

 average

 discount rate

 Operating leases

 3.7

 2.4

 %

 3.1

 2.3

 %

 Finance leases

 1.2

 1.5

 %

 2.2

 1.5

 %

 The following table presents the effects of leases on our 2023, 2022, and 2021 consolidated statements of cash flows, and provides leases-related non-cash information for those years.

 2023

 2022

 2021

 Operating cash flows used for operating leases

 $

 2,271

 $

 2,259

 $

 2,442

 Operating cash flows used for finance leases

 $

 $

 $

 Financing cash flows used for finance leases

 $

 6,521

 $

 7,289

 $

 4,323

 ROU assets obtained in exchange for operating lease obligations

 $

 5,116

 $

 $

 ROU assets obtained in exchange for finance lease obligations

 $

 -

 $

 -

 $

 42,672

 NOTE 11 - 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. On March 16, 2023,
 at its annual meeting of shareholders, the shareholders of Photronics, Inc., approved amendments to the Plan to increase the number of shares available for issuance by an additional one million shares, thereby increasing the shares available for issuance under the Plan from four
 million to five million. 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) or at the discretion of the compensation committee; 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 most recent fiscal years.

 2023

 2022

 2021

 Expense reported in:

 Cost of goods sold

 $

 1,259

 $

 $

 Selling, general, and administrative

 5,962

 4,803

 4,446

 Research and development

 Total expense incurred

 $

 8,001

 $

 6,308

 $

 5,348

 Expense by award type:

 Restricted stock awards

 $

 7,909

 $

 5,800

 $

 4,920

 Stock options

 Employee stock purchase plan

 Total expense incurred

 $

 8,001

 $

 6,308

 $

 5,348

 Income tax benefits of share-based compensation

 $

 $

 $

 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 values of the awards are determined on the date of grant, based on the closing stock price of our common stock. A summary of restricted stock award activity during 2023 and the status of our restricted stock awards as
 of October 31, 2023, is presented below.

 Restricted Stock

 Shares

 Weighted-Average

 Fair Value at

 Grant Date

 Outstanding at October 31, 2022

 893,704

 $

 15.62

 Granted

 791,925

 $

 16.84

 Vested

 ( 417,432

)

 $

 14.98

 Cancelled

 ( 29,900

)

 $

 16.48

 Outstanding at October 31, 2023

 1,238,297

 $

 16.27

 Expected to vest as of October 31, 2023

 1,117,128

 $

 16.21

 The table below presents additional information on our restricted stock awards for the three most recent fiscal years.

 2023

 2022

 2021

 Number of shares granted

 791,925

 654,224

 564,800

 Weighted-average grant-date fair value of awards (in dollars per share)

 $

 16.84

 $

 18.73

 $

 11.20

 Compensation costs not yet recognized

 $

 12,760

 $

 8,949

 $

 7,300

 Weighted-average amortization period (in years)

 2.8

 2.7

 2.6

 Fair value of awards for which restrictions lapsed

 $

 6,256

 $

 5,212

 $

 4,491

 Shares outstanding at balance sheet date

 1,238,297

 893,704

 929,147

 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 granted are expected to remain outstanding. The risk-free
 rate of return for the estimated term of an option is based on the U.S. Treasury yield curve in effect at the date of grant.

 The table below presents a summary of stock
 options activity during 2023 and information on stock options outstanding at October 31, 2023.

 Shares

 Weighted-Average

 Exercise Price

 Weighted-Average

 Remaining

 Contractual Life

 Aggregate

 Intrinsic Value

 Outstanding at

 614,001

 $

 9.74

 Granted

 -

 $

 -

 Exercised

 ( 137,226

)

 $

 8.24

 Cancellations,
 forfeitures, and adjustments

 ( 4,500

)

 $

 10.18

 Outstanding at

 472,275

 $

 10.18

 2.5 years

 $

 3,865

 Exercisable at

 472,275

 $

 10.18

 2.5 years

 $

 3,865

 Expected to vest as
 of October 31, 2023

 -

 $

 -

 - years

 $

 -

 The table below presents additional information on stock option awards for the three most recent fiscal years.

 2023

 2022

 2021

 Number of options granted in period

 -

 -

 -

 Total intrinsic value of options exercised

 $

 1,654

 $

 5,108

 $

 1,910

 Cash received from option exercises

 $

 1,101

 $

 5,275

 $

 3,441

 Compensation cost not yet recognized

 $

 -

 $

 $

 Weighted-average amortization period for cost not yet recognized (in years)

 -

 0.2

 1.1

 Employee Stock Purchase Plan

 Our Employee Stock Purchase Plan ("ESPP") permits employees to purchase Photronics,
 Inc. common shares at 85 % of the lower of the closing market price at the commencement or ending date of the Plan year (which is
 approximately one year from the commencement date). We recognize the ESPP expense over that same period. As of October 31, 2023, the
 maximum number of shares of common stock approved by our shareholders to be purchased under the ESPP was 1.85 million shares, of which
 approximately 1.6 million shares had been issued through October 31, 2023. As of October 31, 2023, there is no unrecognized compensation cost. As of October 31, 2022, there were less than 0.1 million shares with unrecognized compensation cost of less than $ 0.1
 million that was recognized in fiscal year 2023.

 NOTE 12 - EMPLOYEE RETIREMENT PLANS

 We maintain a 401(k) Savings and Profit-Sharing Plan ("401(k) Plan") which covers all full and certain part-time U.S. employees who
 have completed three months of service and are 18 years of age or older. Under the terms of the 401(k) Plan, employees may contribute up to 50 % of
 their salary, subject to certain maximum amounts, which will be matched by the Company at 50 % of the employee's contributions that are not
 in excess of 4 % of the employee's compensation. Employee and employer contributions vest immediately upon contribution. The total employer
 contributions for all of our defined contribution plans were $ 0.8 million, $ 0.7 million and $ 0.8 million in 2023, 2022, and 2021, respectively.

 NOTE 13 - INCOME TAXES

 On December 15, 2022, the European Union (EU) Member States formally adopted the EU's Pillar Two Directive, which generally provides for a minimum
 effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A
 significant number of other countries are expected to also implement similar legislation with varying effective dates in the future. The Company is continuing to evaluate the potential impact on future periods of the Pillar Two Framework, pending
 legislative adoption by additional individual countries.

 Income before the income tax provisions consists of the following:

 2023

 2022

 2021

 $

 ( 1,737

)

 $

 1,813

 $

 ( 19,447

)

 Foreign

 271,683

 237,220

 121,453

 $

 269,946

 $

 239,033

 $

 102,006

 Income Tax Provision

 The components of our income tax provisions are presented below.

 2023

 2022

 2021

 Current:

 Federal

 $

 -

 $

 -

 $

 -

 State

 Foreign

 71,225

 58,981

 25,296

 71,239

 58,982

 25,300

 Deferred:

 Federal

 -

 -

 -

 State

 Foreign

 ( 939

)

 ( 2,213

)

 ( 927

)

 ( 2,110

)

 Total

 $

 70,312

 $

 59,791

 $

 23,190

 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.

 2023

 2022

 2021

 U.S. federal income tax at statutory rate

 $

 56,689

 $

 50,197

 $

 21,421

 Changes in valuation allowances

 ( 256

)

 ( 1,462

)

 Foreign tax rate differentials

 11,394

 7,941

 3,244

 Tax credits

 ( 2,425

)

 ( 1,368

)

 ( 3,942

)

 Uncertain tax positions, including reserves, settlements and resolutions

 3,328

 3,214

 1,037

 Other, net

 1,582

 1,269

 1,066

 $

 70,312

 $

 59,791

 $

 23,190

 Reporting Period

 U.S. Statutory Tax

 Rates

 Photronics Effective

 Tax Rates

 Primary Reasons for Differences

 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.

 2021

 21.0

 %

 22.7

 %

 Loss jurisdiction pre-tax losses not being benefited due to valuation allowances, non-U.S. pre-tax income being taxed at higher statutory rates in the non-U.S. jurisdictions, and investment credits in foreign jurisdictions.

 Deferred Income Tax Assets
 and Liabilities

 The net deferred income tax assets consist of the following:

 As of

 2023

 2022

 Deferred income tax
 assets

 Net operating losses

 $

 26,377

 $

 29,410

 Reserves not currently deductible

 8,776

 8,528

 Tax credit carryforwards

 10,442

 9,660

 Share-based compensation

 1,892

 1,560

 Property, plant and equipment

 9,844

 6,591

 Lease liabilities

 5,743

 7,367

 63,074

 63,116

 Valuation allowances

 ( 32,619

)

 ( 32,895

)

 30,455

 30,221

 Deferred income tax liabilities

 ROU assets

 ( 8,193

)

 ( 8,930

)

 Other

 ( 1,200

)

 ( 1,722

)

 ( 9,393

)

 ( 10,652

)

 Net deferred income tax assets

 $

 21,062

 $

 19,569

 Deferred income tax assets

 $

 21,297

 $

 19,816

 Other liabilities

 ( 235

)

 ( 247

)

 $

 21,062

 $

 19,569

 We have established a valuation allowance for a portion of our deferred tax assets because we believe, based on the weight of all available evidence,
 that it is more likely than not that a portion of our deferred tax assets will expire prior to utilization. In 2023 the valuation allowance decreased as a result of management's determination that tax benefits on deferred tax assets would more likely
 than not be realized and, therefore, decreased the valuation allowance to include these deferred tax assets.

 Due to the Tax Cuts and Jobs Act, which was signed into law in December 2017, as of fiscal year end 2018, U.S. deferred taxes were no longer provided on
 the undistributed earnings of non-U.S. subsidiaries. Our policy to indefinitely reinvest these earnings in non-U.S. operations remains unchanged for the purpose of determining deferred tax liabilities for U.S. state and foreign withholding taxes.
 Therefore, should we elect in the future to repatriate the remaining foreign earnings deemed to be indefinitely reinvested, we may incur additional state and foreign withholding tax expense on those earnings, the amount of which is not practicable to
 compute.

 Tax Credits and Carryforwards

 The following tables present our available operating loss and credit carryforwards as of October 31, 2023, and their related
 expiration periods.

 Operating Loss Carryforwards

 Expiration

 Period

 Federal

 $

 86,765

 2029 -Indefinite

 State

 $

 148,934

 2024 -Indefinite

 Foreign

 $

 2024 -Indefinite

 Tax Credit Carryforwards

 Expiration

 Period

 Federal research and development

 $

 5,806

 2024 - 2043

 State

 $

 5,042

 2024 - 2037

 Uncertain Tax Positions

 We include unrecognized tax benefits in Other liabilities, and we include any applicable interest and penalties related to uncertain tax positions in our income tax provision.

 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.

 2023

 2022

 2021

 Balance at beginning of year before interest and penalties

 $

 5,204

 $

 3,534

 $

 2,550

 (Reductions) additions of tax positions in prior years

 ( 355

)

 Additions based on current year tax positions

 3,361

 2,892

 1,313

 Settlements

 ( 423

)

 ( 848

)

 ( 489

)

 Lapses of statutes of limitations

 ( 19

)

 ( 19

)

 ( 21

)

 Balance at end of year before interest and penalties

 8,332

 5,204

 3,534

 Interest and penalties

 Balance at end of year including interest and penalties

 $

 8,908

 $

 5,599

 $

 3,757

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

 2023

 2022

 Unrecognized tax benefits that, if recognized, would impact the effective tax rate

 $

 8,908

 $

 5,599

 Accrued interest and penalties related to uncertain tax positions

 $

 $

 Although the timing of the reversal of uncertain tax positions may be uncertain, as they can be dependent upon the settlement of tax audits or
 expirations of statutes of limitations, the Company believes that the amount of uncertain tax positions (including accrued interest and penalties, and net of tax benefits) that may be resolved over the next twelve months is $ 0.4 million. Resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements. The
 Company is no longer subject to tax authority examinations in the U.S., major foreign, or state tax jurisdictions for years prior to fiscal year 2018.

 Income Tax Payments and Refunds

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

 2023

 2022

 2021

 Income taxes paid

 $

 70,362

 $

 37,770

 $

 22,684

 Income tax refunds received

 $

 $

 $

 NOTE 14 - EARNINGS PER SHARE

 The calculation of basic and diluted earnings per share is presented below.

 2023

 2022

 2021

 Net income attributable to Photronics, Inc. shareholders

 $

 $

 $

 Effect of dilutive securities

 -

 -

 -

 Earnings used for diluted earnings per share

 $

 $

 $

 Weighted-average common shares computations:

 Weighted-average common shares used for basic earnings per share

 61,139

 60,559

 61,407

 Effect of dilutive securities:

 Share-based payment awards

 Potentially dilutive common shares

 Weighted-average common shares used for diluted earnings per share

 61,755

 61,189

 61,999

 Basic earnings per share

 $

 2.05

 $

 1.96

 $

 0.90

 Diluted earnings per share

 $

 2.03

 $

 1.94

 $

 0.89

 The table below sets forth 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.

 2023

 2022

 2021

 Share based payment awards

 Total potentially dilutive shares excluded

 NOTE 15 - COMMITMENTS AND CONTINGENCIES

 Presented below are our unrecognized commitments, as of October 31, 2023. Included in these amounts are commitments of $ 106.8 million for the purchase of capital equipment. The amounts below do not include our commitments under our debt and lease arrangements, which are
 presented in Notes 8 and 10, respectively.

 Fiscal Year

 Unrecognized

 Commitments

 2024

 $

 99,779

 2025

 27,182

 2026

 10,024

 2027

 2028

 Thereafter

 -

 Total

 $

 137,129

 We are subject to various claims that arise in the ordinary course of business. We believe that our potential liability under such
 claims, individually and in the aggregate, will not have a material effect on our consolidated financial statements. As of October 31, 2023, and October 31, 2022, we were not involved in environmental litigation to which a government was a party.

 NOTE 16 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT

 The following tables set forth the changes in our accumulated other comprehensive (loss) income by component (net of tax of $ 0) for the years ended October 31, 2023, and October 31, 2022.

 Year Ended October 31,
 2023

 Foreign Currency

 Translation

 Adjustments

 Other

 Total

 Balance at October 31, 2022

 $

 ( 97,790

)

 $

 ( 666

)

 $

 ( 98,456

)

 Other comprehensive income (loss)

 5,615

 ( 3

)

 5,612

 Other comprehensive (income) loss attributable to noncontrolling interests

 4,131

 ( 21

)

 4,110

 Balance at October 31, 2023

 $

 ( 88,044

)

 $

 ( 690

)

 $

 ( 88,734

)

 Year Ended October 31, 2022

 Foreign Currency

 Translation

 Adjustments

 Other

 Total

 Balance at October 31, 2021

 $

 21,476

 $

 ( 905

)

 $

 20,571

 Other comprehensive (loss) income

 ( 151,209

)

 ( 150,786

)

 Other comprehensive loss (income) attributable to noncontrolling interests

 31,943

 ( 184

)

 31,759

 Balance at October 31, 2022

 $

 ( 97,790

)

 $

 ( 666

)

 $

 ( 98,456

)

 NOTE 17 - RISKS AND CONCENTRATIONS

 Financial instruments that potentially subject us to credit risk principally consist of trade accounts receivable and short-term
 cash investments. We sell our products primarily to semiconductor and FPD manufacturers in Asia, North America, and Europe. We believe that the concentration of credit risk in our trade receivables is substantially mitigated by our ongoing credit
 evaluation process and relatively short collection terms. We do not generally require collateral from customers. We establish an allowance for credit losses based upon factors surrounding the credit risk of specific customers, historical trends, and
 other information.

 Our cash and cash equivalents are deposited in several financial institutions, including institutions located within all of the
 countries in which we manufacture photomasks. Portions of deposits in some of these institutions may exceed the amount of insurance available for such deposits at these institutions. As these deposits are generally redeemable upon demand and are held
 by high quality, reputable institutions, we consider them to bear minimal credit risk. We further mitigate credit risks related to our cash and cash equivalents by spreading such risk among a number of institutions.

 The following table presents the percentages of our net
 accounts receivable attributable to customers that accounted for more than ten percent of the total balance as of the balance sheet dates.

 2023

 2022

 Customer A

 %

 %

 Customer B

 %

 %

 The following table presents the percentages of our revenue attributable to customers that accounted for more than ten percent of
 the total revenue during the reporting periods.

 2023

 2022

 2021

 Customer A

 %

 %

 %

 Customer B

 %

 %

 %

 Customer C

 %

 %

 %

 We operate as a single operating segment as a manufacturer of photomasks, which are high precision quartz or glass plates containing
 microscopic images of electronic circuits for use in the fabrication of IC's and FPDs.

 As of the balance sheet dates, our long-lived assets and net assets were, by geographic area, as presented below.

 Long-lived Assets

 Net Assets

 Long-lived Assets

 Net Assets

 China

 $

 249,357

 $

 317,409

 $

 242,712

 $

 257,855

 Taiwan

 199,313

 489,722

 155,690

 393,795

 140,733

 188,712

 132,915

 183,909

 Korea

 119,438

 281,941

 109,892

 229,501

 Europe and Other

 7,294

 ( 2,175

)

 6,758

 ( 2,971

)

 $

 716,135

 $

 1,275,609

 $

 647,967

 $

 1,062,089

 NOTE 18 - RELATED PARTY TRANSACTIONS

 Our chief executive officer is related to an individual in a position of authority at one of our largest customers. We recorded
 revenue from this customer of $ 126.5 million, $ 119.0
 million and $ 111.0 million, in 2023, 2022, and 2021, respectively. As of October 31, 2023, and October 31, 2022, we had accounts receivable
 of $ 41.5 million and $ 32.4
 million, respectively, from this customer.

 We believe that the terms of the transaction described above were negotiated at arm's length and were no less favorable to us than
 terms we could have obtained from unrelated third parties.

 NOTE 19 - 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 certain 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 Short-term

 investments are Level 1 measurements. (Please refer to "Investments" within Note 1 for additional fair value information on our Short-term investments.)

 The fair values of certain cash equivalents are Level 2 measurements that are provided by independent third-party pricing services or other independent entities, which may use matrix pricing, valuation models, or other methods which utilize
 observable market data. The fair values of our variable-rate debt instruments are Level 2 measurements and approximate their carrying values due to the variable nature of their underlying interest rates. Other than our Short-term investments, we did no t have any assets or liabilities
 measured at fair value, on a recurring or a nonrecurring basis, at October 31, 2023, or October 31, 2022.

 NOTE 20 - 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. The most recent 10b5-1 plan expired on September 15, 2022, and has not been renewed. Share repurchases under this authorization commenced on September 16, 2020. The repurchase authorization by the Board of Directors has no expiration date, does not obligate us to acquire any common stock, and is subject to market conditions. In
 2023, we did not repurchase any further shares as part of this program. In 2022, we repurchased 0.2 million shares at a cost of $ 2.5 million (an average of $ 13.43 per
 share) and, since the program's inception, we have repurchased 5.8 million shares at a cost of $ 68.3 million (an average of $ 11.70 per share). There is $ 31.7 million remaining under the Board of Director authorization. All shares repurchased under the program have been retired.

 In August 2019, 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. The share repurchase program
 commenced on September 25, 2019, and was terminated on March 20, 2020.

 All of the shares purchased under the above repurchase programs were retired prior to the end of the fiscal
 year in which they were purchased. As of October 31, 2023, $ 31.7 million was available under this authorization for the purchase
 of additional shares. The table below presents information on the repurchase programs for the three most recent fiscal years.

 2023

 Purchases

 2022

 Purchases

 2021

 Purchases

 Number of shares repurchased

 3,919

 Cost of shares repurchased

 $

 $

 2,522

 $

 48,249

 Average price paid per share

 $

 $

 13.43

 $

 12.31

 NOTE 21 - SUBSIDIARY DIVIDENDS

 In 2021, PDMC, the Company's majority owned subsidiary in Taiwan, paid dividends of which 49.99 %, or approximately $ 9.6 million were
 paid to noncontrolling interests. Dividends were no t paid in the years ended 2022 and 2023.

 NOTE 22 - RECENT ACCOUNTING PRONOUNCEMENTS

 Accounting Standards Updates Adopted

 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 was
 effective for annual disclosures beginning our fiscal year 2023, and early adoption was permitted. We adopted the guidance as of the effective date. The guidance did not have a material impact in the consolidated financial statements. Refer to Note
 1 of our consolidated financial statements for additional information.

 Accounting Standards Updates to be Adopted

 In November 2023, the FASB issued ASU 2023-07, "Segment Reporting
 (Topic 280): Improvements to Reportable Segment Disclosures", which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance in this Update is effective for all
 public entities for fiscal years beginning after December 15, 2023, with early adoption permitted. 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 from December 31, 2022. In December 2022, the FASB issues
 ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848", which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31,
 2024. We are currently evaluating the effect the adoption of this ASU may have on our disclosures.

 ITEM 9.

 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 None.

 ITEM 9A.

 CONTROLS AND PROCEDURES

 Evaluation of Disclosure Controls and Procedures

 Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of October 31, 2023. We have established and
 currently maintain disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, designed to provide reasonable assurance that information required to be disclosed in our reports filed under the
 Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to management, including our
 chief executive officer and chief financial officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating disclosure controls and procedures, management recognized that any controls and
 procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost- benefit relationship of
 possible controls and procedures. Based on an evaluation of our disclosure controls and procedures as of October 31, 2023, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and
 procedures were effective at a reasonable assurance level.

 Management's Report on Internal Control over Financial Reporting

 Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and
 with the participation of our management, including our principal executive officer and principal financial officer, the Company conducted an evaluation of the effectiveness of the internal control over financial reporting based on criteria
 established in the Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk
 that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 Management assessed the effectiveness of our internal control over financial reporting as of October 31, 2023, based on the criteria set forth by the COSO. Management, under the supervision and with the participation
 of our Chief Executive Officer and Chief Financial Officer, concluded that our internal control over financial reporting was effective as of October 31, 2023.

 The Company's independent registered public accounting firm, Deloitte & Touche LLP, has audited the effectiveness of the Company's internal control over financial reporting as of October 31, 2023, as stated in
 their report on page 72 of this Form 10-K.

 Changes in Internal Control over Financial Reporting

 There were no changes to our internal control over financial reporting during 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To the shareholders and the Board of Directors of Photronics, Inc.

 Opinion on Internal Control over Financial Reporting

 We have audited the internal control over financial reporting of Photronics, Inc. (the "Company") as of October 31, 2023, based on criteria established
 in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the
 Company maintained, in all material respects, effective internal control over financial reporting as of October 31, 2023, based on criteria established in Internal Control —
 Integrated Framework (2013) issued by COSO.

 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the
 consolidated financial statements as of and for the year ended October 31, 2023, of the Company and our report dated December 22, 2023, expressed an unqualified opinion on those
 financial statements.

 Basis for Opinion

 The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the
 accompanying "Management's Report on Internal Control Over Financial Reporting." Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered
 with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial
 reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating
 effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

 Definition and Limitations of Internal Control over Financial Reporting

 A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
 purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
 and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
 accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
 of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk
 that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 /s/ Deloitte & Touche LLP

 Boston, Massachusetts

 ITEM 9B.

 OTHER INFORMATION

 None.

 ITEM 9C.

 DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION

 Not applicable.

 ITEM 10.

 DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 The information as to Directors required by Items 401, 405 and 407(c)(3)(d)(4) and (d)(5) of Regulation S-K is set forth in our 2023 Definitive Proxy Statement which will be filed with the Securities and Exchange
 Commission pursuant to Regulation 14A of the Exchange Act within 120 days after the end of the fiscal year covered by this Form 10-K under the caption "PROPOSAL 1 - ELECTION OF DIRECTORS," "DELINQUENT SECTION 16(A) REPORTS" and in the third
 paragraph under the caption "MEETINGS AND COMMITTEES OF THE BOARD", and is incorporated in this report by reference. The information as to Executive Officers is included in our 2023 Definitive Proxy Statement under the caption "EXECUTIVE OFFICERS"
 and is incorporated in this report by reference.

 We have adopted a code of ethics that applies to our principal executive officer, chief financial officer or principal financial officer and principal accounting officer. A copy of the code of ethics may be obtained,
 free of charge, by writing to the executive vice president, general counsel of Photronics, Inc. at 15 Secor Road, Brookfield, Connecticut 06804.

 ITEM 11.

 EXECUTIVE COMPENSATION

 The information required by Item 402 of Regulation S-K and paragraph (e)(4) and (e)(5) of Item 407 is set forth in our 2023 Definitive Proxy Statement under the captions "EXECUTIVE COMPENSATION", "CERTAIN AGREEMENTS",
 "DIRECTORS' COMPENSATION", "COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION" and "COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION", respectively, and is incorporated in this report by reference.

 ITEM 12.

 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 The information required by Item 201(d) of Regulation S-K is set forth in our 2024 Definitive Proxy Statement under the caption "EQUITY COMPENSATION PLAN INFORMATION" and is incorporated in this report by reference.
 The information required by Item 403 of Regulation S-K is set forth in our 2024 Definitive Proxy Statement under the caption "OWNERSHIP OF COMMON STOCK BY DIRECTORS, OFFICERS AND CERTAIN BENEFICIAL OWNERS", and is incorporated in this report by
 reference.

 ITEM 13.

 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 The information required by Items 404 and Item 407(a) of Regulation S-K is set forth in our 2023 Definitive Proxy Statement under the captions "MEETINGS AND COMMITTEES OF THE BOARD" and "RELATED PARTY TRANSACTIONS",
 respectively, and is incorporated in this report by reference.

 ITEM 14.

 PRINCIPAL ACCOUNTANT FEES AND SERVICES

 The information required by Item 9(e) of Rule 14a-101 of the Exchange Act is set forth in our 2024 Definitive Proxy Statement under the captions "Independent Registered Public Accounting Firm Fees" and "AUDIT COMMITTEE
 REPORT", and is incorporated in this report by reference.

 ITEM 15.

 EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 The following documents are filed as part of this report:

 Page

 No.

 1.

 Financial Statements: See "INDEX TO CONSOLIDATED FINANCIAL STATEMENTS" in Part II, Item 8 of this Form 10-K for a list of financial statements filed as part of this report.

 2.

 Financial Statement Schedules

 All schedules are omitted because they are immaterial or not applicable.

 3.

 Exhibit Index

 EXHIBIT INDEX

 Incorporated by Reference

 Filed or

 Furnished

 Herewith

 Exhibit

 Number

 Description

 Form

 Exhibit

 Filing

 Date

 3.1

 Certificate of Incorporation as amended July 9, 1986, April 9, 1990, March 16, 1995, November 13, 1997, April 15, 2002 and June 20, 2005

 3.1

 3.2

 Amended and Restated By-laws of the Company dated as of September 7, 2016

 3.2

 9/13/2016

 4.1

 Description of Securities of the Company

 4.1

 4.2

 Certificate of Amendment with Respect to Series A Preferred Stock, dated September 24, 2019

 3.1

 9/24/2019

 10.1

 The Company's 1992 Employee Stock Purchase Plan

 10.1

 12/20/2017

 10.2

 Amendment to the Employee Stock Purchase Plan as of March 24, 2004 +

 10.2

 1/6/2017

 10.3

 Amendment to the Employee Stock Purchase Plan as of April 8, 2010 +

 10.4

 1/7/2016

 10.4

 Amendment to the Employee Stock Purchase Plan as of March 28, 2012 +

 10.4

 10.5

 Amendment to the Employee Stock Plan as of December 18, 2019 +

 10.5

 10.6

 2016 Equity Incentive Compensation Plan +

 DEF 14A

 2/29/2016

 10.7

 Amendment to the 2016 Equity Incentive Compensation Plan

 10-1

 3/21/2023

 10.8

 The Company's 2007 Long-Term Equity Incentive Plan +

 DEF 14A

 2/23/2007

 10. 9

 Amendment to the 2007 Long-Term Equity Incentive Plan as of April 8, 2010 +

 10.7

 1/7/2016

 10. 10

 Amendment to the 2007 Long Term Equity Incentive Plan as of April 11, 2014 +

 10.7

 10.11

 2011 Executive Incentive Compensation Plan effective as of November 1, 2010 +

 10.9

 1/6/2015

 10.12

 Form of Restricted Stock Award Agreement

 X

 10.1 3

 Joint Venture Operating Agreement dated November 20, 2013, between the Company and Dai Nippon Printing Co., Ltd #

 X

 10.1 4

 Outsourcing Agreement dated November 20, 2013, among the Company, Dai Nippon Printing Co., Ltd and Photronics Semiconductor Mask Corporation

 X

 10.1 5

 License Agreement dated November 20, 2013, between the Company and Photronics Semiconductor Mask Corporation#

 X

 10.16

 Executive Employment Agreement between the Company and Christopher J. Progler, Vice President, Chief Technology Officer dated September 10, 2007 +

 10.18

 10.17

 Executive Employment Agreement between the Company and Richelle E. Burr dated May 21, 2010 +

 10.30

 1/7/2016

 10.18

 Executive Employment Agreement between the Company and John P. Jordan dated September 5, 2017 +

 10.31

 12/20/2017

 10. 19

 Employment Agreement dated March 9, 2020, between Photronics Dai Nippon Mask Corporation, Photronics and Frank Lee

 10.36

 3/11/2020

 10.20

 Form of Amendment to Executive Employment Agreement dated March 16, 2012+

 10.23

 10.21

 Fourth Amended and Restated Credit Agreement dated as of September 27, 2018, among Photronics, Inc. the Foreign Subsidiary Borrower Party Thereto, the Lender Party
 Thereto, JPMorgan Chase Bank, N.A. as Administrative and Collateral Agent and Bank of America, N.A. as syndication agent

 10.24

 10.22

 Third Amended and Restated Security Agreement entered into as of September 27, 2018, by and among Photronics, Inc., the subsidiaries of the Company and JPMorgan
 Chase Bank N.A

 10.25

 10.23

 Fixed Asset Loan Agreement between Photronics DNP Mask Corporation Xiamen and Industrial and Commercial Bank China Limited Xiamen Xiang'an Branch

 10.26

 10.24

 Working Capital Loan Agreement between Industrial and Commercial Bureau China Limited Xiamen Xiang'an Branch and Photronics DNP Mask Corporation Xiamen effective as
 of November 7, 2018

 10.27

 10.26

 Investment Agreement between Xiamen Torch Hi-Tech Industrial Development Zone Management Committee and Photronics Singapore Pte. Ltd.

 10.35

 9/2/2016

 10.27

 Amendment No. 1 to the Investment Agreement between Xiamen Torch Hi-Tech Industrial Development Zone Management Committee and Photronics Singapore Pte, Ltd. #

 10.29

 10.28

 Amendment No. 2 to the Investment Agreement between Xiamen Torch Hi-Tech Industrial Development Zone, People's Government of Xiang'an Xiamen, Photronics Singapore
 Pte. Ltd., DNP Asia Pacific Pte and Xiamen American Japan Photronics Mask Co., Ltd. #

 10.41

 3/10/2022

 10.29

 Amendment No. 3 to the Investment Agreement between Xiamen Torch Hi-Tech Industrial Development Zone, People's Government of Xiang'an Xiamen,
 Photronics Singapore Pte. Ltd., DNP Asia Pacific Pte and Xiamen American Japan Photronics Mask Co., Ltd. #

 10.42

 3/10/2022

 10.30

 Joint Venture Operating Agreement dated May 16, 2017, among Photronics, Photronics Singapore, DNP, and DNP Asia Pacific #

 X

 10.31

 Outsourcing Agreement dated May 16, 2017, among Photronics, DNP, Photronics DNP Photomask Corporation ("PDMC") and PDMCX

 X

 10.32

 Amended and Restated License Agreement dated May 16, 2017 between DNP and PDMC#

 10-Q/A

 10.29

 12/19/2017

 10.33

 Investment Cooperation Agreement between Hefei State Hi-tech Industry Development Zone and Photronics UK, Ltd.

 10.42

 12/20/2017

 10.34

 Master Lease Agreement dated October 12, 2020, between TD Equipment Finance and the Company

 10.38

 1/15/2021

 10.35

 Master Lease Agreement Dated September 5, 2019 between Bank of America and the Company

 10.28

 9/5/2019

 10.36

 Fixed Asset Loan Contract dated October 1, 2020, between Hefei Photronics Mask Corporation and China Construction Bank Corporation

 10.39

 1/15/2021

 10.37

 Maximum Mortgage Contract dated October 1, 2020 between Photronics Mask Corporation Hefei and China Construction Bank Corporation Hefei Shushan
 Branch

 10.40

 1/15/2021

 Insider Trading Policy

 X

 List of Subsidiaries of the Company

 X

 23.1

 Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm

 23.1

 X

 31.1

 Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
 Sarbanes-Oxley Act of 2002

 31.1

 X

 31.2

 Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
 Sarbanes-Oxley Act of 2002

 32.2

 X

 32.1

 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 32.1

 X

 32.2

 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 32.2

 X

 Compensation Recovery Policy effective October 2, 2023

 X

 101.INS

 101.INS

 X

 101.SCH

 101.SCH

 X

 101.CAL

 101.CAL

 X

 101.DEF

 101.DEF

 X

 101.LAB

 101.LAB

 X

 101.PRE

 101.PRE

 X

 X

 +

 Represents a management contract or compensatory plan or arrangement.

 #

 Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.

 The Company will provide a copy of any exhibit upon receipt of a written request for the particular exhibit or exhibits desired. All requests should be addressed to the Company's general counsel at the address of the
 Company's principal executive offices.

 ITEM 16.

 FORM 10-K SUMMARY

 Not applicable.

 SIGNATURES

 Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 (Registrant)

 By

 /s/ John P. Jordan

 By

 /s/ Eric Rivera

 John P. Jordan

 Executive Vice President, Chief Financial Officer

 (Principal Financial Officer)

 Eric Rivera

 Vice President, Corporate Controller

 (Principal Accounting Officer)

 Pursuant to the requirements of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 By

 /s/ Frank Lee

 Frank Lee

 Chief Executive Officer

 (Principal Executive Officer)

 By

 /s/ John P. Jordan

 John P. Jordan

 Executive Vice President, Chief Financial Officer

 (Principal Financial Officer)

 By

 /s/ Eric Rivera

 Eric Rivera

 Vice President, Corporate Controller

 (Principal Accounting Officer)

 By

 /s/ Constantine S. Macricostas

 Constantine S. Macricostas

 Chairman of the Board

 By

 /s/ Walter M. Fiederowicz

 Walter M. Fiederowicz

 By

 /s/ Adam Lewis

 Adam Lewis

 By

 /s/ Daniel Liao

 Daniel Liao

 By

 /s/ George Macricostas

 George Macricostas

 By

 /s/ Mary Paladino

 Mary Paladino

 By

 /s/ Mitchell G. Tyson

 Mitchell G. Tyson