NOTE 18 - SEGMENT REPORTING

The Company operates and manages its business as one operating and reportable segment based on the organizational structure of the Company and information reviewed by the Company’s Chief Executive Officer, who is also the chief operating decision maker (“CODM”). The CODM allocates capital resources across the Company’s entire asset base to maximize profitability without regard to geography, legal entity, or end market basis and evaluates the performance based on consolidated net income attributable to Photronics, Inc. shareholders.
The following table presents selected financial information with respect to the Company’s single operating segment for the years ended October 31, 2025, 2024, and 2023:

   
Year Ended October 31,
 
   
2025
   
2024
   
2023
 
Revenues
 
$
849,294
   
$
866,946
   
$
892,076
 
Cost of goods sold
   
(549,464
)
   
(551,000
)
   
(555,914
)
Gross Profit
   
299,830
     
315,946
     
336,162
 
                         
Selling, general and administrative expense
   
(75,625
)
   
(77,760
)
   
(69,458
)
Research and development expense
   
(15,804
)
   
(16,576
)
   
(13,654
)
Other operating expense
   
(240
)
   
(92
)
   
-
 
Operating Income
   
208,161
     
221,518
     
253,050
 
                         
Non-operating income, net
   
13,623
     
25,897
     
16,896
 
Income tax provision
   
(31,550
)
   
(63,567
)
   
(70,312
)
Net income attributable to noncontrolling interests
   
(53,829
)
   
(53,160
)
   
(74,149
)
Net income attributable to Photronics, Inc. shareholders
   
136,405
     
130,688
     
125,485
 

Historical Timeline

Fiscal YearFiled
2025Dec 17, 2025Showing above
2020Jan 15, 2021
2019Dec 23, 2019
2018Dec 21, 2018

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.