DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 6 Months Ended | |
Apr. 30, 2015 | 20-May-15 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Apr-15 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HEICO CORPORATION | |
Address | 3000 Taft Street, Hollywood, Florida | |
State | Florida | |
Zip Code | 33021 | |
Entity Central Index Key | 46619 | |
Entity Tax Identification Number | 650341002 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | hei | |
Entity Common Stock, Shares Outstanding | 26,890,107 | |
Entity Common Stock Par Value | $0.01 | |
Class A Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 39,915,823 | |
Entity Common Stock Par Value | $0.01 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $20,679 | $20,229 |
Accounts receivable, net | 152,663 | 149,669 |
Inventories, net | 231,035 | 218,042 |
Prepaid expenses and other current assets | 15,099 | 8,868 |
Deferred income taxes | 33,011 | 34,485 |
Total current assets | 452,487 | 431,293 |
Property, plant and equipment, net | 104,493 | 93,865 |
Goodwill | 712,043 | 686,271 |
Intangible assets, net | 223,304 | 200,810 |
Deferred income taxes | 1,207 | 1,063 |
Other assets | 87,060 | 75,912 |
Total assets | 1,580,594 | 1,489,214 |
Current liabilities: | ||
Current maturities of long-term debt | 346 | 418 |
Trade accounts payable | 56,092 | 57,157 |
Accrued expenses and other current liabilities | 82,090 | 92,578 |
Income taxes payable | 2,464 | 2,067 |
Total current liabilities | 140,992 | 152,220 |
Long-term debt, net of current maturities | 326,471 | 328,691 |
Deferred income taxes | 115,288 | 111,429 |
Other long-term liabilities | 105,528 | 82,289 |
Total liabilities | 688,279 | 674,629 |
Commitments and contingencies (Note 10) | ||
Redeemable noncontrolling interests (Note 3) | 63,914 | 39,966 |
Shareholders' equity: | ||
Common Stock | 269 | 268 |
Capital in excess of par value | 280,608 | 269,351 |
Deferred compensation obligation | 1,296 | 1,138 |
HEICO stock held by irrevocable trust | -1,296 | -1,138 |
Accumulated other comprehensive loss | -19,214 | -8,289 |
Retained earnings | 486,534 | 437,757 |
Total HEICO shareholders' equity | 748,596 | 699,484 |
Noncontrolling interests | 79,805 | 75,135 |
Total shareholders' equity | 828,401 | 774,619 |
Total liabilities and equity | 1,580,594 | 1,489,214 |
Class A Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | $399 | $397 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 26,890 | 26,847 |
Common stock, shares outstanding | 26,890 | 26,847 |
Class A Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 39,911 | 39,699 |
Common stock, shares outstanding | 39,911 | 39,699 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Net sales | $291,421 | $282,232 | $559,606 | $549,058 |
Operating costs and expenses: | ||||
Cost of sales | 185,927 | 182,310 | 360,315 | 357,019 |
Selling, general and administrative expenses | 49,706 | 50,751 | 97,097 | 92,483 |
Total operating costs and expenses | 235,633 | 233,061 | 457,412 | 449,502 |
Operating income | 55,788 | 49,171 | 102,194 | 99,556 |
Interest expense | -1,146 | -1,441 | -2,258 | -2,722 |
Other income | 362 | 350 | 559 | 508 |
Income before income taxes and noncontrolling interests | 55,004 | 48,080 | 100,495 | 97,342 |
Income tax expense | 16,500 | 15,300 | 29,900 | 32,000 |
Net income from consolidated operations | 38,504 | 32,780 | 70,595 | 65,342 |
Less: Net income attributable to noncontrolling interests | 5,399 | 4,413 | 9,850 | 9,520 |
Net income attributable to HEICO | $33,105 | $28,367 | $60,745 | $55,822 |
Net income per share attributable to HEICO shareholders: | ||||
Basic (in dollars per share) | $0.50 | $0.43 | $0.91 | $0.84 |
Diluted (in dollars per share) | $0.49 | $0.42 | $0.90 | $0.83 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 66,711 | 66,437 | 66,653 | 66,415 |
Diluted (in shares) | 67,801 | 67,455 | 67,735 | 67,403 |
Cash dividends per share (in dollars per share) | $0 | $0 | $0.07 | $0.41 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Net income from consolidated operations | $38,504 | $32,780 | $70,595 | $65,342 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 3 | 1,811 | -11,735 | -651 |
Total other comprehensive income (loss) | 3 | 1,811 | -11,735 | -651 |
Comprehensive income from consolidated operations | 38,507 | 34,591 | 58,860 | 64,691 |
Less: Net income attributable to noncontrolling interests | 5,399 | 4,413 | 9,850 | 9,520 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | -353 | 0 | -810 | 0 |
Comprehensive income attributable to noncontrolling interests | 5,046 | 4,413 | 9,040 | 9,520 |
Comprehensive income attributable to HEICO | $33,461 | $30,178 | $49,820 | $55,171 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED (USD $) | Total | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Deferred Compensation Obligation [Member] | HEICO Stock Held By Irrevocable Trust [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total Shareholders Equity [Member] |
In Thousands, unless otherwise specified | Class A Common Stock [Member] | ||||||||||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2013 | $59,218 | ||||||||||
Starting Balance at Oct. 31, 2013 | 268 | 396 | 255,889 | 1,138 | -1,138 | 144 | 349,649 | 116,889 | 723,235 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | 64,691 | 3,583 | -651 | 55,822 | 5,937 | 61,108 | |||||
Cash dividends | -27,225 | -27,225 | |||||||||
Issuance of common stock to Savings and Investment Plan | 3,071 | 3,071 | |||||||||
Share-based compensation expense | 4,189 | 4,189 | |||||||||
Proceeds from stock option exercises | 400 | 400 | |||||||||
Tax benefit from stock option exercises | 93 | 93 | |||||||||
Redemptions of common stock related to stock option exercises | -273 | -273 | -273 | ||||||||
Distributions to noncontrolling interests | -3,712 | -67,400 | -67,400 | ||||||||
Acquisitions of noncontrolling interests | -1,243 | ||||||||||
Reclassification of Redeemable Noncontrolling Interests to Noncontrolling Interests | 19,383 | 19,383 | 19,383 | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | -630 | 630 | 630 | ||||||||
Other | 1 | 5 | -1 | 1 | 6 | ||||||
Ending Balance, Redeemable Noncontrolling Interests at Apr. 30, 2014 | 37,833 | ||||||||||
Ending Balance at Apr. 30, 2014 | 268 | 397 | 263,374 | 1,138 | -1,138 | -507 | 378,875 | 74,810 | 717,217 | ||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2014 | 39,966 | 39,966 | |||||||||
Starting Balance at Oct. 31, 2014 | 774,619 | 268 | 397 | 269,351 | 1,138 | -1,138 | -8,289 | 437,757 | 75,135 | 774,619 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | 58,860 | 2,288 | -10,925 | 60,745 | 6,752 | 56,572 | |||||
Cash dividends | -4,666 | -4,666 | |||||||||
Issuance of common stock to Savings and Investment Plan | 1 | 4,127 | 4,128 | ||||||||
Share-based compensation expense | 2,778 | 2,778 | |||||||||
Proceeds from stock option exercises | 2 | 2,952 | 2,954 | ||||||||
Tax benefit from stock option exercises | 1,405 | 1,405 | |||||||||
Redemptions of common stock related to stock option exercises | -5 | -5 | -5 | ||||||||
Distributions to noncontrolling interests | -2,651 | -2,082 | -2,082 | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 7,304 | -7,304 | -7,304 | ||||||||
Deferred compensation obligation | 158 | ||||||||||
Deferred compensation obligation | -158 | ||||||||||
Other | 2 | 2 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Noncontrolling Interest, Increase from Business Combination | 17,007 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Apr. 30, 2015 | 63,914 | 63,914 | |||||||||
Ending Balance at Apr. 30, 2015 | $828,401 | $269 | $399 | $280,608 | $1,296 | ($1,296) | ($19,214) | $486,534 | $79,805 | $828,401 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED [PARENTHETICAL] (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Cash dividends per share (in dollars per share) | $0 | $0 | $0.07 | $0.41 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Operating Activities: | ||
Net income from consolidated operations | $70,595 | $65,342 |
Adjustments to reconcile net income from consolidated operations to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 23,141 | 24,139 |
Share-based compensation expense | 2,778 | 4,189 |
Employer contributions to HEICO Savings and Investment Plan | 2,596 | 3,071 |
Deferred income tax provision (benefit) | -1,851 | -3,146 |
Tax benefit from stock option exercises | 1,405 | 93 |
Excess tax benefit from stock option exercises | -1,405 | -93 |
Change in value of contingent consideration | -1,058 | -9,295 |
Foreign currency transaction adjustments, net | -2,247 | 0 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Change in accounts receivable | 2,039 | -8,113 |
Change in inventories | -4,962 | -6,199 |
Change in prepaid expenses and other current assets | -5,622 | -4,336 |
Change in trade accounts payable | -3,699 | 1,507 |
Change in accrued expenses and other current liabilities | -16,300 | -18,152 |
Change in income taxes payable | 173 | 0 |
Other | -778 | 5,994 |
Net cash provided by operating activities | 64,805 | 55,001 |
Investing Activities: | ||
Acquisitions, net of cash acquired | -49,482 | -569 |
Capital expenditures | -9,460 | -7,485 |
Other | 86 | -8 |
Net cash used in investing activities | -58,856 | -8,062 |
Financing Activities: | ||
Borrowings on revolving credit facility | 61,696 | 105,000 |
Payments on revolving credit facility | -61,000 | -45,000 |
Distributions to noncontrolling interests | -4,733 | -71,112 |
Cash dividends paid | -4,666 | -27,225 |
Acquisitions of noncontrolling interests | 0 | -1,243 |
Revolving credit facility issuance costs | 0 | -767 |
Redemptions of common stock related to stock option exercises | -5 | -273 |
Proceeds from stock option exercises | 2,954 | 400 |
Excess tax benefit from stock option exercises | 1,405 | 93 |
Other | -201 | -936 |
Net cash (used in) provided by financing activities | -4,550 | -41,063 |
Effect of exchange rate changes on cash | -949 | 27 |
Net (decrease) increase in cash and cash equivalents | 450 | 5,903 |
Cash and cash equivalents at beginning of year | 20,229 | 15,499 |
Cash and cash equivalents at end of period | $20,679 | $21,402 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2014. The October 31, 2014 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the six months ended April 30, 2015 are not necessarily indicative of the results which may be expected for the entire fiscal year. | |
The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”) and HEICO Flight Support Corp. and their collective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. | |
New Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” which clarifies the applicable guidance for the release of any cumulative translation adjustments into net earnings. ASU 2013-05 specifies that the entire amount of cumulative translation adjustments should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the investment in the foreign entity. The Company adopted ASU 2013-05 in the first quarter of fiscal 2015, resulting in no impact on the Company's consolidated results of operations, financial position or cash flows. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is not permitted. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating which transition method it will elect and the effect the adoption of this guidance will have on its consolidated results of operations, financial position or cash flows. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Apr. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS |
In January 2015, the Company, through its HEICO Flight Support Corp. subsidiary, acquired 80% of the equity of Aeroworks International Holdings, B.V. (“Aeroworks”). Aeroworks, which is headquartered in The Netherlands and maintains significant production facilities in Thailand and Laos, is a manufacturer of both composite and metal parts used primarily in aircraft interior applications, including seating, galleys, lavatories, doors, and overhead bins. The remaining 20% interest continues to be owned by a certain member of Aeroworks' management team (see Note 3, Selected Financial Statement Information, for additional information). The total consideration includes an accrual representing the fair value of contingent consideration that the Company may be obligated to pay should Aeroworks meet certain earnings objectives during each of the first four years following the acquisition. See Note 7, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. | |
In January 2015, the Company, through its HEICO Flight Support Corp. subsidiary, acquired 80.1% of the equity of Harter Aerospace, LLC ("Harter"). Harter is a globally recognized component and accessory maintenance, repair, and overhaul (MRO) station specializing in commercial aircraft accessories, including thrust reverse actuation systems and pneumatics, and electromechanical components. The remaining 19.9% interest continues to be owned by certain members of Harter's management team (see Note 3, Selected Financial Statement Information, for additional information). | |
In May 2015, the Company, through its HEICO Flight Support Corp. subsidiary, acquired all of the stock of Thermal Energy Products, Inc. (“TEP”). TEP engineers, designs and manufactures removable/reusable insulation systems for industrial, commercial, aerospace and defense applications. | |
The purchase prices of the fiscal 2015 acquisitions were paid in cash principally using proceeds from the Company’s revolving credit facility and the total consideration for the acquisitions is not material or significant to the Company's condensed consolidated financial statements. The allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed for the Aeroworks and Harter acquisitions is preliminary until the Company obtains final information regarding their fair values. | |
The operating results of Aeroworks and Harter were included in the Company’s results of operations from the effective acquisition dates. The amount of net sales and earnings of Aeroworks and Harter included in the Condensed Consolidated Statements of Operations is not material. Had the Aeroworks and Harter acquisitions been consummated as of November 1, 2013, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for the six and three months ended April 30, 2015 and April 30, 2014 would not have been materially different than the reported amounts. |
SELECTED_FINANCIAL_STATEMENT_I
SELECTED FINANCIAL STATEMENT INFORMATION | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Selected Financial Statement Information [Abstract] | |||||||||||||||||
Selected Financial Statement Information [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Accounts receivable | $154,807 | $151,812 | |||||||||||||||
Less: Allowance for doubtful accounts | (2,144 | ) | (2,143 | ) | |||||||||||||
Accounts receivable, net | $152,663 | $149,669 | |||||||||||||||
Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts | |||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Costs incurred on uncompleted contracts | $16,866 | $24,437 | |||||||||||||||
Estimated earnings | 8,510 | 11,747 | |||||||||||||||
25,376 | 36,184 | ||||||||||||||||
Less: Billings to date | (22,769 | ) | (29,829 | ) | |||||||||||||
$2,607 | $6,355 | ||||||||||||||||
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions: | |||||||||||||||||
Accounts receivable, net (costs and estimated earnings in excess of billings) | $5,052 | $8,161 | |||||||||||||||
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) | (2,445 | ) | (1,806 | ) | |||||||||||||
$2,607 | $6,355 | ||||||||||||||||
Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the six and three months ended April 30, 2015 and 2014. | |||||||||||||||||
Inventories | |||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Finished products | $109,914 | $106,229 | |||||||||||||||
Work in process | 31,051 | 30,056 | |||||||||||||||
Materials, parts, assemblies and supplies | 87,267 | 79,163 | |||||||||||||||
Contracts in process | 4,997 | 2,594 | |||||||||||||||
Less: Billings to date | (2,194 | ) | — | ||||||||||||||
Inventories, net of valuation reserves | $231,035 | $218,042 | |||||||||||||||
Contracts in process represents accumulated capitalized costs associated with fixed price contracts. Related progress billings and customer advances (“billings to date”) are classified as a reduction to contracts in process, if any, and any excess is included in accrued expenses and other liabilities. | |||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Land | $4,963 | $4,501 | |||||||||||||||
Buildings and improvements | 67,117 | 60,332 | |||||||||||||||
Machinery, equipment and tooling | 149,249 | 139,963 | |||||||||||||||
Construction in progress | 8,898 | 6,905 | |||||||||||||||
230,227 | 211,701 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (125,734 | ) | (117,836 | ) | |||||||||||||
Property, plant and equipment, net | $104,493 | $93,865 | |||||||||||||||
Accrued Customer Rebates and Credits | |||||||||||||||||
The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $7.7 million and $10.9 million as of April 30, 2015 and October 31, 2014, respectively. The total customer rebates and credits deducted within net sales for the six months ended April 30, 2015 and 2014 was $2.9 million and $3.4 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended April 30, 2015 and 2014 was $1.3 million and $1.7 million, respectively. The decrease in the amount of accrued customer rebates and credits since October 31, 2014 principally reflects payments made during the second quarter of fiscal 2015. | |||||||||||||||||
Employee Retirement Plan | |||||||||||||||||
The components of net pension income for the six and three months ended April 30, 2015 and 2014 that were recorded within the Company's Condensed Consolidated Statements of Operations are as follows (in thousands): | |||||||||||||||||
Six months ended April 30, | Three months ended April 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Expected return on plan assets | $370 | $370 | $185 | $185 | |||||||||||||
Interest cost | 280 | 306 | 140 | 153 | |||||||||||||
Net pension income | $90 | $64 | $45 | $32 | |||||||||||||
Research and Development Expenses | |||||||||||||||||
The amount of new product research and development ("R&D") expenses included in cost of sales for the six and three months ended April 30, 2015 and 2014 is as follows (in thousands): | |||||||||||||||||
Six months ended April 30, | Three months ended April 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
R&D expenses | $19,439 | $18,416 | $10,137 | $9,300 | |||||||||||||
Redeemable Noncontrolling Interests | |||||||||||||||||
The holders of equity interests in certain of the Company's subsidiaries have put rights that may be exercised on varying dates causing the Company to give cash consideration to purchase their equity interests based on fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate redemption amount of all put rights (inclusive of the fiscal 2015 transactions described below) that the Company could be required to pay at varying dates through fiscal 2023 is as follows (in thousands): | |||||||||||||||||
30-Apr-15 | 31-Oct-14 | ||||||||||||||||
Redeemable at fair value | $51,614 | $27,666 | |||||||||||||||
Redeemable based on a multiple of future earnings | 12,300 | 12,300 | |||||||||||||||
Redeemable noncontrolling interests | $63,914 | $39,966 | |||||||||||||||
As discussed in Note 2, Acquisitions, the Company, through the FSG, acquired interests of 80% and 80.1% in Aeroworks and Harter, respectively, in January 2015. As part of the Aeroworks purchase agreement, the Company has the right to purchase the noncontrolling interest over a four-year period beginning in fiscal 2019, or sooner under certain conditions, and the noncontrolling interest holder has the right to cause the Company to purchase the same equity interest over the same period. As part of the Harter purchase agreement, the Company has the right to purchase the noncontrolling interests over a four-year period beginning in fiscal 2020, or sooner under certain conditions, and the noncontrolling interest holders have the right to cause the Company to purchase the same equity interests over the same period. | |||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2015 are as follows (in thousands): | |||||||||||||||||
Foreign Currency Translation | Pension Benefit Obligation | Accumulated | |||||||||||||||
Other Comprehensive | |||||||||||||||||
Loss | |||||||||||||||||
Balances as of October 31, 2014 | ($8,348 | ) | $59 | ($8,289 | ) | ||||||||||||
Unrealized loss, net | (10,925 | ) | — | (10,925 | ) | ||||||||||||
Balances as of April 30, 2015 | ($19,273 | ) | $59 | ($19,214 | ) | ||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended | ||||||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill by operating segment for the six months ended April 30, 2015 are as follows (in thousands): | |||||||||||||||||||||||||
Segment | Consolidated Totals | ||||||||||||||||||||||||
FSG | ETG | ||||||||||||||||||||||||
Balances as of October 31, 2014 | $282,407 | $403,864 | $686,271 | ||||||||||||||||||||||
Goodwill acquired | 33,624 | — | 33,624 | ||||||||||||||||||||||
Foreign currency translation adjustments | (1,597 | ) | (6,255 | ) | (7,852 | ) | |||||||||||||||||||
Balances as of April 30, 2015 | $314,434 | $397,609 | $712,043 | ||||||||||||||||||||||
The goodwill acquired pertains to the fiscal 2015 acquisitions described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed. The Company estimates that approximately $7 million of the goodwill acquired in fiscal 2015 will be deductible for income tax purposes. | |||||||||||||||||||||||||
Identifiable intangible assets consist of the following (in thousands): | |||||||||||||||||||||||||
As of April 30, 2015 | As of October 31, 2014 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Amortizing Assets: | |||||||||||||||||||||||||
Customer relationships | $160,753 | ($55,908 | ) | $104,845 | $144,478 | ($55,393 | ) | $89,085 | |||||||||||||||||
Intellectual property | 73,892 | (18,860 | ) | 55,032 | 73,005 | (17,620 | ) | 55,385 | |||||||||||||||||
Licenses | 2,900 | (1,758 | ) | 1,142 | 2,900 | (1,645 | ) | 1,255 | |||||||||||||||||
Non-compete agreements | 927 | (927 | ) | — | 1,020 | (1,020 | ) | — | |||||||||||||||||
Patents | 715 | (419 | ) | 296 | 712 | (405 | ) | 307 | |||||||||||||||||
Trade names | 166 | (28 | ) | 138 | 166 | (17 | ) | 149 | |||||||||||||||||
239,353 | (77,900 | ) | 161,453 | 222,281 | (76,100 | ) | 146,181 | ||||||||||||||||||
Non-Amortizing Assets: | |||||||||||||||||||||||||
Trade names | 61,851 | — | 61,851 | 54,629 | — | 54,629 | |||||||||||||||||||
$301,204 | ($77,900 | ) | $223,304 | $276,910 | ($76,100 | ) | $200,810 | ||||||||||||||||||
The increase in the gross carrying amount of customer relationships, non-amortizing trade names and intellectual property as of April 30, 2015 compared to October 31, 2014 principally relates to such intangible assets recognized in connection with the fiscal 2015 acquisitions (see Note 2, Acquisitions). The weighted-average amortization period of the customer relationships and intellectual property acquired during fiscal 2015 is 9 and 10 years, respectively. | |||||||||||||||||||||||||
Amortization expense related to intangible assets for the six months ended April 30, 2015 and 2014 was $13.1 million and $14.1 million, respectively. Amortization expense related to intangible assets for the three months ended April 30, 2015 and 2014 was $7.0 million. Amortization expense related to intangible assets for the remainder of fiscal 2015 is estimated to be $13.0 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $25.2 million in fiscal 2016, $24.3 million in fiscal 2017, $22.4 million in fiscal 2018, $20.5 million in fiscal 2019, $18.0 million in fiscal 2020, and $38.1 million thereafter. |
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-term Debt [Text Block] | LONG-TERM DEBT | ||||||||
Long-term debt consists of the following (in thousands): | |||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
Borrowings under revolving credit facility | $324,289 | $326,000 | |||||||
Capital leases | 2,528 | 3,109 | |||||||
326,817 | 329,109 | ||||||||
Less: Current maturities of long-term debt | (346 | ) | (418 | ) | |||||
$326,471 | $328,691 | ||||||||
During the first quarter of fiscal 2015, the Company elected to borrow €32 million under its revolving credit facility, which allows for borrowings made in foreign currencies up to a $50 million sublimit. The funds were used to facilitate an acquisition made during the same fiscal quarter. As of April 30, 2015, the United States ("U.S.") dollar equivalent of the Company's Euro borrowing was $35.3 million. | |||||||||
As of April 30, 2015 and October 31, 2014, the weighted average interest rate on borrowings under the Company’s revolving credit facility was 1.3%. The revolving credit facility contains both financial and non-financial covenants. As of April 30, 2015, the Company was in compliance with all such covenants. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended | ||||
Apr. 30, 2015 | |||||
Income Tax Disclosure [Abstract] | |||||
Income Tax Disclosure [Text Block] | INCOME TAXES | ||||
As of April 30, 2015, the Company’s liability for gross unrecognized tax benefits related to uncertain tax positions was $1.0 million of which $.7 million would decrease the Company’s income tax expense and effective income tax rate if the tax benefits were recognized. A reconciliation of the activity related to the liability for gross unrecognized tax benefits for the six months ended April 30, 2015 is as follows (in thousands): | |||||
Balance as of October 31, 2014 | $879 | ||||
Increases related to current year tax positions | 76 | ||||
Increases related to prior year tax positions | 14 | ||||
Balance as of April 30, 2015 | $969 | ||||
There were no material changes in the liability for unrecognized tax positions resulting from tax positions taken during the current or a prior year, settlements with other taxing authorities or a lapse of applicable statutes of limitations. The accrual of interest and penalties related to the unrecognized tax benefits was not material for the six months ended April 30, 2015. Further, the Company does not expect the total amount of unrecognized tax benefits to materially change in the next twelve months. | |||||
The Company’s effective tax rate in the first six months of fiscal 2015 decreased to 29.8% from 32.9% in the first six months of fiscal 2014. The decrease is principally due to an income tax credit for qualified R&D activities for the last ten months of fiscal 2014 that was recognized in the first quarter of fiscal 2015 resulting from the retroactive extension of the U.S. federal R&D tax credit in December 2014 to cover calendar year 2014. Additionally, the decrease in the effective tax rate reflects the benefit of recognizing additional foreign tax credits related to R&D activities at one of the Company's foreign subsidiaries inclusive of a prior year tax return amendment. These decreases were partially offset by the impact of a larger reduction in accrued contingent consideration in the first six months of fiscal 2014 compared to fiscal 2015 associated with a prior year acquisition acquired by means of a nontaxable stock transaction. | |||||
The Company’s effective tax rate in the second quarter of fiscal 2015 decreased to 30.0% from 31.8% in the second quarter of fiscal 2014. The decrease is principally attributed to the benefit of recognizing additional foreign tax credits related to R&D activities at one of the Company's foreign subsidiaries inclusive of a prior year tax return amendment. The decrease in the effective tax rate also reflects no provision for U.S. income taxes on the undistributed earnings of a fiscal 2015 foreign acquisition located in a lower tax rate jurisdiction. These decreases were partially offset by the impact of a larger reduction in accrued contingent consideration in the first six months of fiscal 2014 compared to fiscal 2015 associated with a prior year acquisition acquired by means of a nontaxable stock transaction. | |||||
The Company has not made a provision for U.S. income taxes on the undistributed earnings of a fiscal 2015 foreign acquisition as such earnings are considered permanently reinvested outside of the U.S. The amount of undistributed earnings is not material to the Company's condensed consolidated financial statements. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS | ||||||||||||||||
The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands): | |||||||||||||||||
As of April 30, 2015 | |||||||||||||||||
Quoted Prices | Significant | Significant Unobservable Inputs | Total | ||||||||||||||
in Active Markets for Identical Assets | Other Observable Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Deferred compensation plans: | |||||||||||||||||
Corporate owned life insurance | $— | $76,506 | $— | $76,506 | |||||||||||||
Equity securities | 2,382 | — | — | 2,382 | |||||||||||||
Mutual funds | 1,800 | — | — | 1,800 | |||||||||||||
Money market funds | 979 | — | — | 979 | |||||||||||||
Other | 905 | 50 | — | 955 | |||||||||||||
Total assets | $6,066 | $76,556 | $— | $82,622 | |||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $— | $— | $20,118 | $20,118 | |||||||||||||
As of October 31, 2014 | |||||||||||||||||
Quoted Prices | Significant | Significant Unobservable Inputs | Total | ||||||||||||||
in Active Markets for Identical Assets | Other Observable Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Deferred compensation plans: | |||||||||||||||||
Corporate owned life insurance | $— | $61,958 | $— | $61,958 | |||||||||||||
Equity securities | 2,225 | — | — | 2,225 | |||||||||||||
Mutual funds | 1,903 | — | — | 1,903 | |||||||||||||
Money market funds | 3,974 | — | — | 3,974 | |||||||||||||
Other | 1,339 | 50 | — | 1,389 | |||||||||||||
Total assets | $9,441 | $62,008 | $— | $71,449 | |||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $— | $— | $1,184 | $1,184 | |||||||||||||
The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan (the “LCP”) principally represent cash surrender values of life insurance policies, which derive their fair values from investments in mutual funds that are managed by an insurance company and are classified within Level 2 and valued using a market approach. Certain other assets of the LCP represent investments in money market funds that are classified within Level 1. The assets of the Company’s other deferred compensation plan are principally invested in equity securities and mutual funds that are classified within Level 1. The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $82.6 million as of April 30, 2015 and $71.4 million as of October 31, 2014, of which the LCP related assets were $77.5 million and $65.9 million as of April 30, 2015 and October 31, 2014, respectively. The related liabilities of the two deferred compensation plans are included within other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $81.6 million as of April 30, 2015 and $70.5 million as of October 31, 2014, of which the LCP related liability was $76.5 million and $65.0 million as of April 30, 2015 and October 31, 2014, respectively. | |||||||||||||||||
As part of the agreement to acquire a subsidiary by the FSG in the first quarter of fiscal 2015, the Company may be obligated to pay contingent consideration of up to €24.4 million in aggregate, which translates to approximately $26.9 million based on the April 30, 2015 exchange rate, should the acquired entity meet certain earnings objectives during each of the first four years following the acquisition. As of April 30, 2015, the estimated fair value of the contingent consideration was $20.1 million. | |||||||||||||||||
As part of the agreement to acquire a subsidiary by the ETG in fiscal 2013, the Company may be obligated to pay contingent consideration of up to $30.0 million should the acquired entity meet certain earnings objectives during calendar years 2014 and 2015. The $1.2 million estimated fair value of the contingent consideration as of October 31, 2014 was recorded as a reduction to selling, general and administrative expenses in the Company's Condensed Consolidated Statement of Operations in the second quarter of fiscal 2015. The decrease in the fair value of the contingent consideration is principally attributed to revised earnings estimates that reflect less favorable projected market conditions during the earnout period. | |||||||||||||||||
The estimated fair value of the fiscal 2015 contingent consideration arrangement described above is classified within Level 3 and was determined using a probability-based scenario analysis approach. Under this method, a set of discrete potential future subsidiary earnings was determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood was assigned to each discrete potential future earnings estimate and the resultant contingent consideration was calculated. The resulting probability-weighted contingent consideration amount was discounted using a weighted average discount rate reflecting the credit risk of a market participant. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's condensed consolidated statements of operations. | |||||||||||||||||
The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of April 30, 2015 were as follows: | |||||||||||||||||
Fiscal 2015 Subsidiary | |||||||||||||||||
Compound annual revenue growth rate range | (7 | %) | - | 12% | |||||||||||||
Weighted average discount rate | 2.20% | ||||||||||||||||
Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the six months ended April 30, 2015 are as follows (in thousands): | |||||||||||||||||
Balance as of October 31, 2014 | $1,184 | ||||||||||||||||
Contingent consideration related to acquisition | 21,355 | ||||||||||||||||
Decrease in accrued contingent consideration | (1,058 | ) | |||||||||||||||
Foreign currency translation adjustments | (1,363 | ) | |||||||||||||||
Balance as of April 30, 2015 | $20,118 | ||||||||||||||||
Included in the accompanying Condensed Consolidated Balance Sheet | |||||||||||||||||
under the following captions: | |||||||||||||||||
Accrued expenses and other current liabilities | $5,963 | ||||||||||||||||
Other long-term liabilities | 14,155 | ||||||||||||||||
$20,118 | |||||||||||||||||
The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the six months ended April 30, 2015. | |||||||||||||||||
The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of April 30, 2015 due to the relatively short maturity of the respective instruments. The carrying amount of long-term debt approximates fair value due to its variable interest rates. |
NET_INCOME_PER_SHARE_ATTRIBUTA
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share [Text Block] | NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | ||||||||||||||||
The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): | |||||||||||||||||
Six months ended April 30, | Three months ended April 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to HEICO | $60,745 | $55,822 | $33,105 | $28,367 | |||||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding - basic | 66,653 | 66,415 | 66,711 | 66,437 | |||||||||||||
Effect of dilutive stock options | 1,082 | 988 | 1,090 | 1,018 | |||||||||||||
Weighted average common shares outstanding - diluted | 67,735 | 67,403 | 67,801 | 67,455 | |||||||||||||
Net income per share attributable to HEICO shareholders: | |||||||||||||||||
Basic | $0.91 | $0.84 | $0.50 | $0.43 | |||||||||||||
Diluted | $0.90 | $0.83 | $0.49 | $0.42 | |||||||||||||
Anti-dilutive stock options excluded | 305 | 425 | 305 | 305 | |||||||||||||
OPERATING_SEGMENTS
OPERATING SEGMENTS | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS | ||||||||||||||||
Information on the Company’s two operating segments, the FSG and ETG, for the six and three months ended April 30, 2015 and 2014, respectively, is as follows (in thousands): | |||||||||||||||||
Other, | Consolidated | ||||||||||||||||
Segment | Primarily Corporate and | Totals | |||||||||||||||
FSG | ETG | Intersegment | |||||||||||||||
Six months ended April 30, 2015: | |||||||||||||||||
Net sales | $384,832 | $180,216 | ($5,442 | ) | $559,606 | ||||||||||||
Depreciation and amortization | 11,161 | 11,578 | 402 | 23,141 | |||||||||||||
Operating income | 68,248 | 41,624 | (7,678 | ) | 102,194 | ||||||||||||
Capital expenditures | 6,477 | 2,857 | 126 | 9,460 | |||||||||||||
Six months ended April 30, 2014: | |||||||||||||||||
Net sales | $376,477 | $177,233 | ($4,652 | ) | $549,058 | ||||||||||||
Depreciation and amortization | 9,863 | 13,871 | 405 | 24,139 | |||||||||||||
Operating income | 69,089 | 41,040 | (10,573 | ) | 99,556 | ||||||||||||
Capital expenditures | 4,256 | 2,759 | 470 | 7,485 | |||||||||||||
Three months ended April 30, 2015: | |||||||||||||||||
Net sales | $202,775 | $90,995 | ($2,349 | ) | $291,421 | ||||||||||||
Depreciation and amortization | 6,349 | 5,686 | 202 | 12,237 | |||||||||||||
Operating income | 37,545 | 22,206 | (3,963 | ) | 55,788 | ||||||||||||
Capital expenditures | 3,863 | 1,226 | 117 | 5,206 | |||||||||||||
Three months ended April 30, 2014: | |||||||||||||||||
Net sales | $194,892 | $89,741 | ($2,401 | ) | $282,232 | ||||||||||||
Depreciation and amortization | 4,943 | 6,946 | 200 | 12,089 | |||||||||||||
Operating income | 36,886 | 18,136 | (5,851 | ) | 49,171 | ||||||||||||
Capital expenditures | 2,231 | 1,051 | 213 | 3,495 | |||||||||||||
Total assets by operating segment as of April 30, 2015 and October 31, 2014 are as follows (in thousands): | |||||||||||||||||
Other, | Consolidated | ||||||||||||||||
Segment | Primarily Corporate | Totals | |||||||||||||||
FSG | ETG | ||||||||||||||||
Total assets as of April 30, 2015 | $779,920 | $679,534 | $121,140 | $1,580,594 | |||||||||||||
Total assets as of October 31, 2014 | 676,824 | 703,144 | 109,246 | 1,489,214 | |||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES | ||||||||
Guarantees | |||||||||
As of April 30, 2015, the Company has arranged for standby letters of credit aggregating $2.3 million, which are supported by its revolving credit facility. One letter of credit in the amount of $1.5 million is to satisfy the security requirement of the Company's insurance company for potential workers' compensation claims and the remainder pertain to performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries. | |||||||||
Product Warranty | |||||||||
Changes in the Company’s product warranty liability for the six months ended April 30, 2015 and 2014, respectively, are as follows (in thousands): | |||||||||
Six months ended April 30, | |||||||||
2015 | 2014 | ||||||||
Balances as of beginning of fiscal year | $4,079 | $3,233 | |||||||
Accruals for warranties | 436 | 1,125 | |||||||
Acquired warranty liabilities | 35 | — | |||||||
Warranty claims settled | (1,078 | ) | (941 | ) | |||||
Balances as of April 30 | $3,472 | $3,417 | |||||||
Litigation | |||||||||
The Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2014. The October 31, 2014 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the six months ended April 30, 2015 are not necessarily indicative of the results which may be expected for the entire fiscal year. | |
The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”) and HEICO Flight Support Corp. and their collective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. | |
New Accounting Pronouncements [Text Block] | New Accounting Pronouncements |
In March 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” which clarifies the applicable guidance for the release of any cumulative translation adjustments into net earnings. ASU 2013-05 specifies that the entire amount of cumulative translation adjustments should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the investment in the foreign entity. The Company adopted ASU 2013-05 in the first quarter of fiscal 2015, resulting in no impact on the Company's consolidated results of operations, financial position or cash flows. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is not permitted. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating which transition method it will elect and the effect the adoption of this guidance will have on its consolidated results of operations, financial position or cash flows. |
SELECTED_FINANCIAL_STATEMENT_I1
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Selected Financial Statement Information (Tables) [Abstract] | |||||||||||||||||
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable | ||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Accounts receivable | $154,807 | $151,812 | |||||||||||||||
Less: Allowance for doubtful accounts | (2,144 | ) | (2,143 | ) | |||||||||||||
Accounts receivable, net | $152,663 | $149,669 | |||||||||||||||
Schedule of Costs in Excess of Billings and Billings in Excess of Costs [Table Text Block] | Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts | ||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Costs incurred on uncompleted contracts | $16,866 | $24,437 | |||||||||||||||
Estimated earnings | 8,510 | 11,747 | |||||||||||||||
25,376 | 36,184 | ||||||||||||||||
Less: Billings to date | (22,769 | ) | (29,829 | ) | |||||||||||||
$2,607 | $6,355 | ||||||||||||||||
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions: | |||||||||||||||||
Accounts receivable, net (costs and estimated earnings in excess of billings) | $5,052 | $8,161 | |||||||||||||||
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) | (2,445 | ) | (1,806 | ) | |||||||||||||
$2,607 | $6,355 | ||||||||||||||||
Schedule of Inventory [Table Text Block] | Inventories | ||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Finished products | $109,914 | $106,229 | |||||||||||||||
Work in process | 31,051 | 30,056 | |||||||||||||||
Materials, parts, assemblies and supplies | 87,267 | 79,163 | |||||||||||||||
Contracts in process | 4,997 | 2,594 | |||||||||||||||
Less: Billings to date | (2,194 | ) | — | ||||||||||||||
Inventories, net of valuation reserves | $231,035 | $218,042 | |||||||||||||||
Schedule of Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment | ||||||||||||||||
(in thousands) | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Land | $4,963 | $4,501 | |||||||||||||||
Buildings and improvements | 67,117 | 60,332 | |||||||||||||||
Machinery, equipment and tooling | 149,249 | 139,963 | |||||||||||||||
Construction in progress | 8,898 | 6,905 | |||||||||||||||
230,227 | 211,701 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (125,734 | ) | (117,836 | ) | |||||||||||||
Property, plant and equipment, net | $104,493 | $93,865 | |||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | The components of net pension income for the six and three months ended April 30, 2015 and 2014 that were recorded within the Company's Condensed Consolidated Statements of Operations are as follows (in thousands): | ||||||||||||||||
Six months ended April 30, | Three months ended April 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Expected return on plan assets | $370 | $370 | $185 | $185 | |||||||||||||
Interest cost | 280 | 306 | 140 | 153 | |||||||||||||
Net pension income | $90 | $64 | $45 | $32 | |||||||||||||
Schedule of Research and Development Expenses [Table Text Block] | The amount of new product research and development ("R&D") expenses included in cost of sales for the six and three months ended April 30, 2015 and 2014 is as follows (in thousands): | ||||||||||||||||
Six months ended April 30, | Three months ended April 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
R&D expenses | $19,439 | $18,416 | $10,137 | $9,300 | |||||||||||||
Schedule of Redeemable Noncontrolling Interests [Table Text Block] | Management's estimate of the aggregate redemption amount of all put rights (inclusive of the fiscal 2015 transactions described below) that the Company could be required to pay at varying dates through fiscal 2023 is as follows (in thousands): | ||||||||||||||||
30-Apr-15 | 31-Oct-14 | ||||||||||||||||
Redeemable at fair value | $51,614 | $27,666 | |||||||||||||||
Redeemable based on a multiple of future earnings | 12,300 | 12,300 | |||||||||||||||
Redeemable noncontrolling interests | $63,914 | $39,966 | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2015 are as follows (in thousands): | ||||||||||||||||
Foreign Currency Translation | Pension Benefit Obligation | Accumulated | |||||||||||||||
Other Comprehensive | |||||||||||||||||
Loss | |||||||||||||||||
Balances as of October 31, 2014 | ($8,348 | ) | $59 | ($8,289 | ) | ||||||||||||
Unrealized loss, net | (10,925 | ) | — | (10,925 | ) | ||||||||||||
Balances as of April 30, 2015 | ($19,273 | ) | $59 | ($19,214 | ) | ||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by operating segment for the six months ended April 30, 2015 are as follows (in thousands): | ||||||||||||||||||||||||
Segment | Consolidated Totals | ||||||||||||||||||||||||
FSG | ETG | ||||||||||||||||||||||||
Balances as of October 31, 2014 | $282,407 | $403,864 | $686,271 | ||||||||||||||||||||||
Goodwill acquired | 33,624 | — | 33,624 | ||||||||||||||||||||||
Foreign currency translation adjustments | (1,597 | ) | (6,255 | ) | (7,852 | ) | |||||||||||||||||||
Balances as of April 30, 2015 | $314,434 | $397,609 | $712,043 | ||||||||||||||||||||||
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): | ||||||||||||||||||||||||
As of April 30, 2015 | As of October 31, 2014 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Amortizing Assets: | |||||||||||||||||||||||||
Customer relationships | $160,753 | ($55,908 | ) | $104,845 | $144,478 | ($55,393 | ) | $89,085 | |||||||||||||||||
Intellectual property | 73,892 | (18,860 | ) | 55,032 | 73,005 | (17,620 | ) | 55,385 | |||||||||||||||||
Licenses | 2,900 | (1,758 | ) | 1,142 | 2,900 | (1,645 | ) | 1,255 | |||||||||||||||||
Non-compete agreements | 927 | (927 | ) | — | 1,020 | (1,020 | ) | — | |||||||||||||||||
Patents | 715 | (419 | ) | 296 | 712 | (405 | ) | 307 | |||||||||||||||||
Trade names | 166 | (28 | ) | 138 | 166 | (17 | ) | 149 | |||||||||||||||||
239,353 | (77,900 | ) | 161,453 | 222,281 | (76,100 | ) | 146,181 | ||||||||||||||||||
Non-Amortizing Assets: | |||||||||||||||||||||||||
Trade names | 61,851 | — | 61,851 | 54,629 | — | 54,629 | |||||||||||||||||||
$301,204 | ($77,900 | ) | $223,304 | $276,910 | ($76,100 | ) | $200,810 | ||||||||||||||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): | ||||||||
30-Apr-15 | 31-Oct-14 | ||||||||
Borrowings under revolving credit facility | $324,289 | $326,000 | |||||||
Capital leases | 2,528 | 3,109 | |||||||
326,817 | 329,109 | ||||||||
Less: Current maturities of long-term debt | (346 | ) | (418 | ) | |||||
$326,471 | $328,691 | ||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 6 Months Ended | ||||
Apr. 30, 2015 | |||||
Income Tax Disclosure [Abstract] | |||||
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the activity related to the liability for gross unrecognized tax benefits for the six months ended April 30, 2015 is as follows (in thousands): | ||||
Balance as of October 31, 2014 | $879 | ||||
Increases related to current year tax positions | 76 | ||||
Increases related to prior year tax positions | 14 | ||||
Balance as of April 30, 2015 | $969 | ||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands): | ||||||||||||||||
As of April 30, 2015 | |||||||||||||||||
Quoted Prices | Significant | Significant Unobservable Inputs | Total | ||||||||||||||
in Active Markets for Identical Assets | Other Observable Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Deferred compensation plans: | |||||||||||||||||
Corporate owned life insurance | $— | $76,506 | $— | $76,506 | |||||||||||||
Equity securities | 2,382 | — | — | 2,382 | |||||||||||||
Mutual funds | 1,800 | — | — | 1,800 | |||||||||||||
Money market funds | 979 | — | — | 979 | |||||||||||||
Other | 905 | 50 | — | 955 | |||||||||||||
Total assets | $6,066 | $76,556 | $— | $82,622 | |||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $— | $— | $20,118 | $20,118 | |||||||||||||
As of October 31, 2014 | |||||||||||||||||
Quoted Prices | Significant | Significant Unobservable Inputs | Total | ||||||||||||||
in Active Markets for Identical Assets | Other Observable Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Deferred compensation plans: | |||||||||||||||||
Corporate owned life insurance | $— | $61,958 | $— | $61,958 | |||||||||||||
Equity securities | 2,225 | — | — | 2,225 | |||||||||||||
Mutual funds | 1,903 | — | — | 1,903 | |||||||||||||
Money market funds | 3,974 | — | — | 3,974 | |||||||||||||
Other | 1,339 | 50 | — | 1,389 | |||||||||||||
Total assets | $9,441 | $62,008 | $— | $71,449 | |||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $— | $— | $1,184 | $1,184 | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of April 30, 2015 were as follows: | ||||||||||||||||
Fiscal 2015 Subsidiary | |||||||||||||||||
Compound annual revenue growth rate range | (7 | %) | - | 12% | |||||||||||||
Weighted average discount rate | 2.20% | ||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the six months ended April 30, 2015 are as follows (in thousands): | ||||||||||||||||
Balance as of October 31, 2014 | $1,184 | ||||||||||||||||
Contingent consideration related to acquisition | 21,355 | ||||||||||||||||
Decrease in accrued contingent consideration | (1,058 | ) | |||||||||||||||
Foreign currency translation adjustments | (1,363 | ) | |||||||||||||||
Balance as of April 30, 2015 | $20,118 | ||||||||||||||||
Included in the accompanying Condensed Consolidated Balance Sheet | |||||||||||||||||
under the following captions: | |||||||||||||||||
Accrued expenses and other current liabilities | $5,963 | ||||||||||||||||
Other long-term liabilities | 14,155 | ||||||||||||||||
$20,118 | |||||||||||||||||
NET_INCOME_PER_SHARE_ATTRIBUTA1
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): | ||||||||||||||||
Six months ended April 30, | Three months ended April 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to HEICO | $60,745 | $55,822 | $33,105 | $28,367 | |||||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding - basic | 66,653 | 66,415 | 66,711 | 66,437 | |||||||||||||
Effect of dilutive stock options | 1,082 | 988 | 1,090 | 1,018 | |||||||||||||
Weighted average common shares outstanding - diluted | 67,735 | 67,403 | 67,801 | 67,455 | |||||||||||||
Net income per share attributable to HEICO shareholders: | |||||||||||||||||
Basic | $0.91 | $0.84 | $0.50 | $0.43 | |||||||||||||
Diluted | $0.90 | $0.83 | $0.49 | $0.42 | |||||||||||||
Anti-dilutive stock options excluded | 305 | 425 | 305 | 305 | |||||||||||||
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Information on the Company’s two operating segments, the FSG and ETG, for the six and three months ended April 30, 2015 and 2014, respectively, is as follows (in thousands): | ||||||||||||||||
Other, | Consolidated | ||||||||||||||||
Segment | Primarily Corporate and | Totals | |||||||||||||||
FSG | ETG | Intersegment | |||||||||||||||
Six months ended April 30, 2015: | |||||||||||||||||
Net sales | $384,832 | $180,216 | ($5,442 | ) | $559,606 | ||||||||||||
Depreciation and amortization | 11,161 | 11,578 | 402 | 23,141 | |||||||||||||
Operating income | 68,248 | 41,624 | (7,678 | ) | 102,194 | ||||||||||||
Capital expenditures | 6,477 | 2,857 | 126 | 9,460 | |||||||||||||
Six months ended April 30, 2014: | |||||||||||||||||
Net sales | $376,477 | $177,233 | ($4,652 | ) | $549,058 | ||||||||||||
Depreciation and amortization | 9,863 | 13,871 | 405 | 24,139 | |||||||||||||
Operating income | 69,089 | 41,040 | (10,573 | ) | 99,556 | ||||||||||||
Capital expenditures | 4,256 | 2,759 | 470 | 7,485 | |||||||||||||
Three months ended April 30, 2015: | |||||||||||||||||
Net sales | $202,775 | $90,995 | ($2,349 | ) | $291,421 | ||||||||||||
Depreciation and amortization | 6,349 | 5,686 | 202 | 12,237 | |||||||||||||
Operating income | 37,545 | 22,206 | (3,963 | ) | 55,788 | ||||||||||||
Capital expenditures | 3,863 | 1,226 | 117 | 5,206 | |||||||||||||
Three months ended April 30, 2014: | |||||||||||||||||
Net sales | $194,892 | $89,741 | ($2,401 | ) | $282,232 | ||||||||||||
Depreciation and amortization | 4,943 | 6,946 | 200 | 12,089 | |||||||||||||
Operating income | 36,886 | 18,136 | (5,851 | ) | 49,171 | ||||||||||||
Capital expenditures | 2,231 | 1,051 | 213 | 3,495 | |||||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by operating segment as of April 30, 2015 and October 31, 2014 are as follows (in thousands): | ||||||||||||||||
Other, | Consolidated | ||||||||||||||||
Segment | Primarily Corporate | Totals | |||||||||||||||
FSG | ETG | ||||||||||||||||
Total assets as of April 30, 2015 | $779,920 | $679,534 | $121,140 | $1,580,594 | |||||||||||||
Total assets as of October 31, 2014 | 676,824 | 703,144 | 109,246 | 1,489,214 | |||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability for the six months ended April 30, 2015 and 2014, respectively, are as follows (in thousands): | ||||||||
Six months ended April 30, | |||||||||
2015 | 2014 | ||||||||
Balances as of beginning of fiscal year | $4,079 | $3,233 | |||||||
Accruals for warranties | 436 | 1,125 | |||||||
Acquired warranty liabilities | 35 | — | |||||||
Warranty claims settled | (1,078 | ) | (941 | ) | |||||
Balances as of April 30 | $3,472 | $3,417 | |||||||
ACQUISITIONS_Details_Textuals
ACQUISITIONS (Details Textuals) | 6 Months Ended |
Apr. 30, 2015 | |
Business Acquisition [Line Items] | |
Business Combination, Pro Forma Information, Disclosure Impracticable | The amount of net sales and earnings of Aeroworks and Harter included in the Condensed Consolidated Statements of Operations is not material. Had the Aeroworks and Harter acquisitions been consummated as of November 1, 2013, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for the six and three months ended April 30, 2015 and April 30, 2014 would not have been materially different than the reported amounts. |
Aeroworks [Member] | |
Business Acquisition [Line Items] | |
Effective Date of Acquisition | 31-Jan-15 |
Name of Acquired Entity | Aeroworks International Holdings, B.V. |
Percentage of Voting Interests Acquired | 80.00% |
Description of Acquired Entity | Aeroworks, which is headquartered in The Netherlands and maintains significant production facilities in Thailand and Laos, is a manufacturer of both composite and metal parts used primarily in aircraft interior applications, including seating, galleys, lavatories, doors, and overhead bins. |
Ownership Percentage by Noncontrolling Owners | 20.00% |
Contingent Consideration Arrangements, Description | The total consideration includes an accrual representing the fair value of contingent consideration that the Company may be obligated to pay should Aeroworks meet certain earnings objectives during each of the first four years following the acquisition. |
Harter [Member] | |
Business Acquisition [Line Items] | |
Effective Date of Acquisition | 31-Jan-15 |
Name of Acquired Entity | Harter Aerospace, LLC |
Percentage of Voting Interests Acquired | 80.10% |
Description of Acquired Entity | Harter is a globally recognized component and accessory maintenance, repair, and overhaul (MRO) station specializing in commercial aircraft accessories, including thrust reverse actuation systems and pneumatics, and electromechanical components. |
Ownership Percentage by Noncontrolling Owners | 19.90% |
TEP [Member] | |
Business Acquisition [Line Items] | |
Effective Date of Acquisition | 1-May-15 |
Name of Acquired Entity | Thermal Energy Products, Inc. |
Description of Acquired Entity | TEP engineers, designs and manufactures removable/reusable insulation systems for industrial, commercial, aerospace and defense applications. |
SELECTED_FINANCIAL_STATEMENT_I2
SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $154,807 | $151,812 |
Less: Allowance for doubtful accounts | -2,144 | -2,143 |
Accounts receivable, net | $152,663 | $149,669 |
SELECTED_FINANCIAL_STATEMENT_I3
SELECTED FINANCIAL STATEMENT INFORMATION (Costs and Estimated Earnings on Uncompleted POC Contracts) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Oct. 31, 2014 |
Costs incurred on uncompleted contracts | $16,866 | $24,437 |
Estimated Earnings | 8,510 | 11,747 |
Estimated Revenue on Completed Percentage-of-Completion Contracts | 25,376 | 36,184 |
Billings to date | -22,769 | -29,829 |
Receivables, Long-term Contracts or Programs | 2,607 | 6,355 |
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions: | ||
Accounts receivable, net (costs and estimated earnings in excess of billings) | 5,052 | 8,161 |
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) | -2,445 | -1,806 |
Receivables, Long-term Contracts or Programs | $2,607 | $6,355 |
SELECTED_FINANCIAL_STATEMENT_I4
SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Finished products | $109,914 | $106,229 |
Work in process | 31,051 | 30,056 |
Materials, parts, assemblies and supplies | 87,267 | 79,163 |
Contracts in process | 4,997 | 2,594 |
Less: Billings to date | -2,194 | 0 |
Inventories, net of valuation reserves | $231,035 | $218,042 |
SELECTED_FINANCIAL_STATEMENT_I5
SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $4,963 | $4,501 |
Buildings and improvements | 67,117 | 60,332 |
Machinery, equipment and tooling | 149,249 | 139,963 |
Construction in progress | 8,898 | 6,905 |
Property, plant and equipment, gross | 230,227 | 211,701 |
Less: Accumulated depreciation and amortization | -125,734 | -117,836 |
Property, plant and equipment, net | $104,493 | $93,865 |
SELECTED_FINANCIAL_STATEMENT_I6
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Employee Retirement Plan) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | $185 | $185 | $370 | $370 |
Interest cost | 140 | 153 | 280 | 306 |
Net pension income | $45 | $32 | $90 | $64 |
SELECTED_FINANCIAL_STATEMENT_I7
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Selected Financial Statement Information (Details) [Abstract] | ||||
R&D expenses | $10,137 | $9,300 | $19,439 | $18,416 |
SELECTED_FINANCIAL_STATEMENT_I8
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable at fair value | $51,614 | $27,666 |
Redeemable based on a multiple of future earnings | 12,300 | 12,300 |
Redeemable noncontrolling interests | $63,914 | $39,966 |
SELECTED_FINANCIAL_STATEMENT_I9
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | ($8,289) | |||
Other Comprehensive Income (Loss), Net of Tax | 3 | 1,811 | -11,735 | -651 |
Ending accumulated other comprehensive loss | -19,214 | -19,214 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | -8,348 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -10,925 | |||
Ending accumulated other comprehensive loss | -19,273 | -19,273 | ||
Pension Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | 59 | |||
Other Comprehensive Income (Loss), Net of Tax | 0 | |||
Ending accumulated other comprehensive loss | 59 | 59 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | -8,289 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -10,925 | |||
Ending accumulated other comprehensive loss | ($19,214) | ($19,214) |
Recovered_Sheet1
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 |
Business Acquisition [Line Items] | |||||
Accrued customer rebates and credits | $7.70 | $7.70 | $10.90 | ||
Total customer rebates and credits deducted within net sales | $1.30 | $1.70 | $2.90 | $3.40 | |
Aeroworks [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of Voting Interests Acquired | 80.00% | 80.00% | |||
Harter [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of Voting Interests Acquired | 80.10% | 80.10% |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2015 |
Goodwill [Line Items] | |
Balances as of October 31, 2014 | $686,271 |
Goodwill acquired | 33,624 |
Foreign currency translation adjustments | -7,852 |
Balances as of April 30, 2015 | 712,043 |
Flight Support Group [Member] | |
Goodwill [Line Items] | |
Balances as of October 31, 2014 | 282,407 |
Goodwill acquired | 33,624 |
Foreign currency translation adjustments | -1,597 |
Balances as of April 30, 2015 | 314,434 |
Electronic Technologies Group [Member] | |
Goodwill [Line Items] | |
Balances as of October 31, 2014 | 403,864 |
Goodwill acquired | 0 |
Foreign currency translation adjustments | -6,255 |
Balances as of April 30, 2015 | $397,609 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $239,353 | $222,281 |
Accumulated Amortization | -77,900 | -76,100 |
Net Carrying Amount | 161,453 | 146,181 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Asset Gross Carrying Amount | 301,204 | 276,910 |
Intangible Asset Net Carrying Amount | 223,304 | 200,810 |
Trade Names [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 61,851 | 54,629 |
Net Carrying Amount | 61,851 | 54,629 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 160,753 | 144,478 |
Accumulated Amortization | -55,908 | -55,393 |
Net Carrying Amount | 104,845 | 89,085 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 73,892 | 73,005 |
Accumulated Amortization | -18,860 | -17,620 |
Net Carrying Amount | 55,032 | 55,385 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 2,900 | 2,900 |
Accumulated Amortization | -1,758 | -1,645 |
Net Carrying Amount | 1,142 | 1,255 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 927 | 1,020 |
Accumulated Amortization | -927 | -1,020 |
Net Carrying Amount | 0 | 0 |
Patents [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 715 | 712 |
Accumulated Amortization | -419 | -405 |
Net Carrying Amount | 296 | 307 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 166 | 166 |
Accumulated Amortization | -28 | -17 |
Net Carrying Amount | $138 | $149 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $7 | $7 | ||
Amortization expense related to intangible assets | 7 | 7 | 13.1 | 14.1 |
Estimated Amortization Expense, remainder of fiscal 2015 | 13 | 13 | ||
Estimated Amortization Expense, for fiscal 2016 | 25.2 | 25.2 | ||
Estimated Amortization Expense, for fiscal 2017 | 24.3 | 24.3 | ||
Estimated Amortization Expense, for fiscal 2018 | 22.4 | 22.4 | ||
Estimated Amortization Expense, for fiscal 2019 | 20.5 | 20.5 | ||
Estimated Amortization Expense, for fiscal 2020 | 18 | 18 | ||
Estimated Amortization Expense, thereafter | $38.10 | $38.10 | ||
Customer Relationships [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||
Intellectual Property [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Borrowings under revolving credit facility | $324,289 | $326,000 |
Capital leases | 2,528 | 3,109 |
Total debt and capital leases | 326,817 | 329,109 |
Less: Current maturities of long-term debt | -346 | -418 |
Long-term debt, net of current maturities | $326,471 | $328,691 |
LONGTERM_DEBT_Details_Textuals
LONG-TERM DEBT (Details Textuals) | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | Foreign Line of Credit [Member] | Foreign Line of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] |
USD ($) | Euro Member Countries, Euro | |||
EUR (€) | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $50 | |||
Long-term Debt | $35.30 | € 32 | ||
Weighted average interest rate | 1.30% | 1.30% |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2015 |
Income Tax Contingency [Line Items] | |
Balance as of October 31, 2014 | $879 |
Increases related to current year tax positions | 76 |
Increases related to prior year tax positions | 14 |
Balance as of April 30, 2015 | $969 |
INCOME_TAXES_Details_Textuals
INCOME TAXES (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized tax benefits on uncertain tax position | $969,000 | $969,000 | $879,000 | ||
Unrecognized tax benefits that would impact effective tax rate | $700,000 | $700,000 | |||
Effective Income Tax Rate, Continuing Operations | 30.00% | 31.80% | 29.80% | 32.90% |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy, by Category) (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $82,622 | $71,449 |
Liabilities: | ||
Contingent consideration | 20,118 | 1,184 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 6,066 | 9,441 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 76,556 | 62,008 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Liabilities: | ||
Contingent consideration | 20,118 | 1,184 |
Corporate Owned Life Insurance [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 76,506 | 61,958 |
Corporate Owned Life Insurance [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Corporate Owned Life Insurance [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 76,506 | 61,958 |
Corporate Owned Life Insurance [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Equity Securities [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 2,382 | 2,225 |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 2,382 | 2,225 |
Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Equity Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,800 | 1,903 |
Equity Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,800 | 1,903 |
Equity Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Equity Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 979 | 3,974 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 979 | 3,974 |
Money Market Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Other Defined Deferred Compensation Plan [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 955 | 1,389 |
Other Defined Deferred Compensation Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 905 | 1,339 |
Other Defined Deferred Compensation Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 50 | 50 |
Other Defined Deferred Compensation Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $0 | $0 |
Recovered_Sheet2
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) (FY 2015 Acquisition [Member], Fair Value, Inputs, Level 3 [Member]) | 6 Months Ended |
Apr. 30, 2015 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Fair Value Inputs, Discount Rate | 2.20% |
Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Negative Long-term Revenue Growth Rate | -7.00% |
Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Fair Value Inputs, Long-term Revenue Growth Rate | 12.00% |
FAIR_VALUE_MEASUREMENTS_Contin
FAIR VALUE MEASUREMENTS (Contingent Consideration Liability) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Oct. 31, 2014 |
Liabilities [Abstract] | ||
Accrued Liabilities, Current | $82,090 | $92,578 |
Other Liabilities, Noncurrent | 105,528 | 82,289 |
Total liabilities | 688,279 | 674,629 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balances as of October 31, 2014, Liabilities | 1,184 | |
Business Combination, Consideration Transferred, Liabilities Incurred | 21,355 | |
Increase in accrued contingent consideration | -1,058 | |
Balances as of April 30, 2015, Liabilities | 20,118 | |
Liabilities [Abstract] | ||
Accrued Liabilities, Current | 5,963 | |
Other Liabilities, Noncurrent | 14,155 | |
Total liabilities | 20,118 | |
Foreign Currency Gain (Loss) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | ($1,363) |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details Textuals) | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 |
USD ($) | USD ($) | Aggregate LCP Assets [Member] | Aggregate LCP Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Flight Support Group [Member] | Flight Support Group [Member] | Electronic Technologies Group [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Euro Member Countries, Euro | United States of America, Dollars | FY 2013 Acquisition [Member] | |||
FY 2015 Acquisition [Member] | FY 2015 Acquisition [Member] | USD ($) | |||||||||
EUR (€) | USD ($) | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Business Combination, Contingent Consideration, Liability | $20,118,000 | $1,184,000 | $0 | $0 | $20,118,000 | $1,184,000 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 24,400,000 | 26,900,000 | 30,000,000 | ||||||||
Assets held within irrevocable trusts and classified within other assets | 82,622,000 | 71,449,000 | 77,500,000 | 65,900,000 | 76,556,000 | 62,008,000 | 0 | 0 | |||
Related liabilities of deferred compensation plans, specified as other long-term liabilities | $81,600,000 | $70,500,000 | $76,500,000 | $65,000,000 |
NET_INCOME_PER_SHARE_ATTRIBUTA2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Numerator: | ||||
Net income attributable to HEICO | $33,105 | $28,367 | $60,745 | $55,822 |
Denominator: | ||||
Weighted Average Number of Shares Outstanding, Basic | 66,711 | 66,437 | 66,653 | 66,415 |
Effect of dilutive stock options | 1,090 | 1,018 | 1,082 | 988 |
Weighted Average Number of Shares Outstanding, Diluted | 67,801 | 67,455 | 67,735 | 67,403 |
Earnings Per Share, Basic | $0.50 | $0.43 | $0.91 | $0.84 |
Earnings Per Share, Diluted | $0.49 | $0.42 | $0.90 | $0.83 |
Anti-dilutive stock options excluded | 305 | 305 | 305 | 425 |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Segment Reporting Information [Line Items] | ||||
Net sales | $291,421 | $282,232 | $559,606 | $549,058 |
Depreciation and amortization | 12,237 | 12,089 | 23,141 | 24,139 |
Operating income | 55,788 | 49,171 | 102,194 | 99,556 |
Capital expenditures | 5,206 | 3,495 | 9,460 | 7,485 |
Flight Support Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 202,775 | 194,892 | 384,832 | 376,477 |
Depreciation and amortization | 6,349 | 4,943 | 11,161 | 9,863 |
Operating income | 37,545 | 36,886 | 68,248 | 69,089 |
Capital expenditures | 3,863 | 2,231 | 6,477 | 4,256 |
Electronic Technologies Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 90,995 | 89,741 | 180,216 | 177,233 |
Depreciation and amortization | 5,686 | 6,946 | 11,578 | 13,871 |
Operating income | 22,206 | 18,136 | 41,624 | 41,040 |
Capital expenditures | 1,226 | 1,051 | 2,857 | 2,759 |
Other Primarily Corporate and Intersegment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | -2,349 | -2,401 | -5,442 | -4,652 |
Depreciation and amortization | 202 | 200 | 402 | 405 |
Operating income | -3,963 | -5,851 | -7,678 | -10,573 |
Capital expenditures | $117 | $213 | $126 | $470 |
OPERATING_SEGMENTS_Details_1
OPERATING SEGMENTS (Details 1) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $1,580,594 | $1,489,214 |
Flight Support Group [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 779,920 | 676,824 |
Electronic Technologies Group [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 679,534 | 703,144 |
Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $121,140 | $109,246 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Schedule of Product Warranties [Line Items] | ||
Balances as of beginning of fiscal year | $4,079 | $3,233 |
Accruals for warranties | 436 | 1,125 |
Acquired warranty liabilities | 35 | 0 |
Warranty claims settled | -1,078 | -941 |
Balances as of January 31 | $3,472 | $3,417 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $2,300,000 | $2,300,000 | ||
Standby letter of credit to meet the security requirement of its insurance company for potential workers'compensation claims | 1,500,000 | |||
New product research and development expenses | $10,137,000 | $9,300,000 | $19,439,000 | $18,416,000 |