| INCOME TAXES |
NOTE 10 - INCOME TAXES
The Company calculates its provision for income taxes at the end of each interim reporting period on the basis of an estimated
annual effective tax rate adjusted for tax items that are discrete to each period. The table below sets forth the primary reasons that the Company’s effective income tax rates differed from the U.S. statutory tax rates in effect during the periods ended May 4, 2025 and April 28, 2024.
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Reporting Period
|
|
U.S. Statutory
Tax Rates
|
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Photronics
Effective Tax
Rates
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Primary Reasons for Differences
|
|
|
|
|
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|
|
Three months ended May 4, 2025
|
|
|
21.0%
|
|
|
19.1%
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|
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 the non-U.S. jurisdictions, and changes in uncertain tax positions in non-U.S. jurisdictions.
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|
|
|
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Three months ended April 28, 2024
|
|
|
21.0%
|
|
|
26.4%
|
|
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 the non-U.S. jurisdictions and the establishment of uncertain tax positions in non-U.S. jurisdictions.
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| Six months ended May 4, 2025
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|
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21.0% |
|
|
23.0% |
|
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 the non-U.S. jurisdictions, and changes in uncertain tax positions in non-U.S. jurisdictions.
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| Six months ended April 28, 2024
|
|
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21.0% |
|
|
26.8% |
|
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 the non-U.S. jurisdictions, and the establishment of uncertain tax positions in non-U.S. jurisdictions.
|
Uncertain Tax
Positions
Although the timing of reversal of uncertain tax positions may be
uncertain, as they can be dependent upon the settlement of tax audits, the Company believes that the amount of uncertain tax positions (including interest and penalties, and net of tax benefits) that may be resolved over the next twelve months is
immaterial. 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 2019. The table below presents information on unrecognized tax benefits as of the balance sheet dates.
| |
|
May 4,
2025
|
|
|
October 31,
2024
|
|
|
Unrecognized tax benefits related to uncertain tax positions
|
|
$
|
14,006
|
|
|
$
|
14,720
|
|
|
Unrecognized tax benefits that, if recognized, would impact the effective tax rate
|
|
$
|
14,006
|
|
|
$
|
14,720
|
|
|
Accrued interest and penalties related to uncertain tax positions
|
|
$
|
1,327
|
|
|
$
|
1,028
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