INCOME TAXES (Tables)

9 Months Ended

Jul. 31, 2022

Reconciliation of Effective Income Tax Rates from U.S. Statutory Tax Rates

The table below sets forth the primary reasons that our effective income tax rates differed from the U.S. statutory tax rates in effect during the three and nine-month periods ended July 31, 2022, and August 1, 2021.

Reporting Period	U.S. Statutory Tax Rates	Photronics Effective Tax Rates	Primary Reasons for Differences

Three months ended July 31, 2022	21.0%	26.9%	Non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances; 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.

Three months ended August 1, 2021	21.0%	24.4%	Changes in forecasted jurisdictional earnings; benefits of investment credits in certain foreign jurisdictions, partially offset by valuation allowance activity.

Nine months ended July 31, 2022	21.0%	26.1%	Non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances; 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.

Nine months ended August 1, 2021	21.0%	22.4%	Changes in forecasted jurisdictional earnings; benefits of investment tax credits in certain foreign jurisdictions, partially offset by valuation allowance activity

Unrecognized Tax Benefits

The table below presents information on our unrecognized tax benefits as of the balance sheet dates.

	July 31, 2022		October 31, 2021

Unrecognized tax benefits related to uncertain tax positions	$	5,315	$	3,757
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	5,315	$	3,757
Accrued interest and penalties related to uncertain tax positions	$	388	$	223