OTHER RELATED PARTY TRANSACTIONS

12 Months Ended

Nov. 02, 2014

OTHER RELATED PARTY TRANSACTIONS [Abstract]

OTHER RELATED PARTY TRANSACTIONS

NOTE 19 - OTHER RELATED PARTY TRANSACTIONS

     The chairman of the board and chief executive officer of the Company is also a director 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 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 $1.2 million, $1.7 million, and $1.8 million in fiscal years 2014, 2013 and 2012, respectively, and had an outstanding balance of $0.1 million due to this company as of November 2, 2014 and November 3, 2013. As of November 2, 2014, the Company had contracted with this company for various services through June 2015 at a cost of $0.9 million.

     The Company purchases photomask blanks from a company of which an officer of the Company is a significant shareholder. The Company purchased $20.1 million, $20.0 million and $20.1 million of photomask blanks from this company in 2014, 2013 and 2012, respectively, for which the amount owed to this company was $4.4 million at November 2, 2014, and $4.6 million at November 3, 2013.

     The Company believes that the terms of its transactions with the 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 5 for other related party transactions.