OTHER RELATED PARTY TRANSACTIONS

12 Months Ended

Nov. 03, 2013

OTHER RELATED PARTY TRANSACTIONS [Abstract]

OTHER RELATED PARTY TRANSACTIONS

NOTE 20 - OTHER RELATED PARTY TRANSACTIONS

The chairman of the board and chief executive officer of the Company is also the vice chairman of the board and majority shareholder of a company that provides secure managed information technology services to Photronics. Another director of the Company is also a shareholder, chief executive officer and executive chairman of the board of this company. Since 2002, the Company has entered into various service contracts with this company to provide services to all of the Company's worldwide facilities. The Company incurred expenses for services provided by this company of $1.7 million, $1.8 million, and $1.8 million in fiscal years 2013, 2012 and 2011, respectively, and had an outstanding balance of $0.1 million and $0.2 million due to this company as of November 3, 2013 and October 28, 2012, respectively. As of November 3, 2013, the Company had contracted with this company for various services through June 2015 at a cost of $2.2 million.

The Company purchases photomask blanks from a company of which an officer of the Company is a significant shareholder. The Company purchased $20.0 million, $20.1 million and $21.4 million of photomask blanks from this company in 2013, 2012 and 2011, respectively, for which the amount owed to this company was $4.6 million at November 3, 2013, and $4.2 million at October 28, 2012.

The Company believes that the terms of its transactions with related parties described above were negotiated at arm's length and were no less favorable to the Company than terms it could have obtained from unrelated third parties. See Note 4 for other related party transactions.