DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Dec. 15, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | |||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Oct. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Amendment Flag | false | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,069,162,000 | ||
Document Type | 10-K | ||
Entity Information [Line Items] | |||
Entity Registrant Name | HEICO CORPORATION | ||
Entity Address, Address Line One | 3000 Taft Street, Hollywood, Florida | ||
Entity Address, State or Province | Florida | ||
Entity Address, Postal Zip Code | 33,021 | ||
Entity Central Index Key | 46,619 | ||
Entity Tax Identification Number | 650,341,002 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | hei | ||
Entity Common Stock, Shares Outstanding | 26,905,966 | ||
Entity Listing, Par Value Per Share | $ 0.01 | ||
Common Class A [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 39,966,753 | ||
Entity Listing, Par Value Per Share | $ 0.01 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 33,603 | $ 20,229 |
Accounts receivable, net | 181,593 | 149,669 |
Inventories, net | 243,517 | 218,042 |
Prepaid expenses and other current assets | 9,369 | 8,868 |
Deferred income taxes | 35,530 | 34,485 |
Total current assets | 503,612 | 431,293 |
Property, plant and equipment, net | 105,670 | 93,865 |
Goodwill | 766,639 | 686,271 |
Intangible assets, net | 272,593 | 200,810 |
Deferred income taxes | 847 | 1,063 |
Other assets | 87,026 | 75,912 |
Total assets | 1,736,387 | 1,489,214 |
Current liabilities: | ||
Current maturities of long-term debt | 357 | 418 |
Trade accounts payable | 64,682 | 57,157 |
Accrued expenses and other current liabilities | 100,155 | 92,578 |
Income taxes payable | 3,193 | 2,067 |
Total current liabilities | 168,387 | 152,220 |
Long-term debt, net of current maturities | 367,241 | 328,691 |
Deferred income taxes | 110,588 | 111,429 |
Other long-term liabilities | 105,618 | 82,289 |
Total liabilities | $ 751,834 | $ 674,629 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | $ 91,282 | $ 39,966 |
Shareholders' equity: | ||
Common Stock | 269 | 268 |
Capital in excess of par value | 286,220 | 269,351 |
Deferred compensation obligation | 1,783 | 1,138 |
HEICO stock held by irrevocable trust | (1,783) | (1,138) |
Accumulated other comprehensive (loss) income | (25,080) | (8,289) |
Retained earnings | 548,054 | 437,757 |
Total HEICO shareholders' equity | 809,863 | 699,484 |
Noncontrolling interests | 83,408 | 75,135 |
Total shareholders' equity | 893,271 | 774,619 |
Total liabilities and equity | 1,736,387 | 1,489,214 |
Common Class A [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 400 | $ 397 |
CONSOLIDATED BALANCE SHEETS _PA
CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] - $ / shares shares in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Common stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 26,906 | 26,847 |
Common stock, shares outstanding | 26,906 | 26,847 |
Common Class A [Member] | ||
Common stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 39,967 | 39,699 |
Common stock, shares outstanding | 39,967 | 39,699 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Net sales | $ 1,188,648 | $ 1,132,311 | $ 1,008,757 |
Operating costs and expenses: | |||
Cost of sales | 754,469 | 733,999 | 637,576 |
Selling, general and administrative expenses | 204,523 | 194,924 | 187,591 |
Total operating costs and expenses | 958,992 | 928,923 | 825,167 |
Operating income | 229,656 | 203,388 | 183,590 |
Interest expense | (4,626) | (5,441) | (3,717) |
Other income | (66) | 625 | 888 |
Income before taxes and noncontrolling interests | 224,964 | 198,572 | 180,761 |
Income tax expense | 71,400 | 59,800 | 56,200 |
Net income from consolidated operations | 153,564 | 138,772 | 124,561 |
Less: Net income attributable to noncontrolling interests | 20,200 | 17,479 | 22,165 |
Net income attributable to HEICO | $ 133,364 | $ 121,293 | $ 102,396 |
Net income per share attributable to HEICO shareholders (Note 13): | |||
Basic (in dollars per share) | $ 2 | $ 1.82 | $ 1.54 |
Diluted (in dollars per share) | $ 1.97 | $ 1.80 | $ 1.53 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 66,740 | 66,463 | 66,298 |
Diluted (in shares) | 67,811 | 67,453 | 66,982 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Net income from consolidated operations | $ 153,564 | $ 138,772 | $ 124,561 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (16,880) | (7,882) | 3,128 |
Unrealized (loss) gain on defined benefit pension plan, net of tax | (771) | (551) | 590 |
Total other comprehensive (loss) income | (17,651) | (8,433) | 3,718 |
Comprehensive income from consolidated operations | 135,913 | 130,339 | 128,279 |
Less: Net income attributable to noncontrolling interests | 20,200 | 17,479 | 22,165 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (860) | 0 | 0 |
Comprehensive income attributable to noncontrolling interests | 19,340 | 17,479 | 22,165 |
Comprehensive income attributable to HEICO | $ 116,573 | $ 112,860 | $ 106,114 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member]Common Class A [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] |
Balances at Oct. 31, 2012 | $ 213 | $ 315 | $ 244,632 | $ 823 | $ (823) | $ (3,572) | $ 375,085 | $ 103,086 | $ 719,759 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $ 22,165 | $ 8,386 | 13,779 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 106,114 | 3,718 | 102,396 | ||||||||
Comprehensive Income (Loss) | 128,279 | 119,893 | |||||||||
Cash dividends | (116,600) | (120,361) | (120,361) | ||||||||
Five-for-four common stock split | 54 | 79 | |||||||||
Five-for-four common stock split | (133) | 17 | 17 | ||||||||
Issuance of common stock to HEICO Savings and Investment Plan | 2,985 | 2,985 | |||||||||
Share-based compensation expense | 5,117 | 5,117 | |||||||||
Proceeds from stock option exercises | 1 | 2 | 460 | 463 | |||||||
Tax benefit from stock option exercises | 5,191 | 5,191 | |||||||||
Redemptions of common stock related to stock option exercises | (2,364) | (2,364) | (2,364) | ||||||||
Distributions to noncontrolling interests | (7,579) | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 7,454 | (7,454) | (7,454) | ||||||||
Deferred Compensation Obligation | 315 | ||||||||||
Stock Held During Period Value Deferred Compensation Obligation | (315) | ||||||||||
Other | 1 | (2) | 24 | 23 | |||||||
Balances at Oct. 31, 2013 | 268 | 396 | 255,889 | 1,138 | (1,138) | 144 | 349,649 | 116,889 | 723,235 | ||
Redeemable noncontrolling interests at Oct. 31, 2012 | 67,166 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 22,165 | 8,386 | 13,779 | ||||||||
Distributions to noncontrolling interests | (7,579) | ||||||||||
Acquisitions of noncontrolling interests | (16,610) | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 7,454 | (7,454) | (7,454) | ||||||||
Temporary Equity, Other Changes | 401 | ||||||||||
Redeemable noncontrolling interests at Oct. 31, 2013 | 59,218 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 17,479 | 5,313 | 12,166 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 112,860 | (8,433) | 121,293 | ||||||||
Comprehensive Income (Loss) | 130,339 | 125,026 | |||||||||
Cash dividends | (27,200) | (31,215) | (31,215) | ||||||||
Issuance of common stock to HEICO Savings and Investment Plan | 5,504 | 5,504 | |||||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | 1 | ||||||||||
Share-based compensation expense | 7,425 | 7,426 | |||||||||
Proceeds from stock option exercises | 708 | 708 | |||||||||
Tax benefit from stock option exercises | 93 | 93 | |||||||||
Redemptions of common stock related to stock option exercises | (273) | (273) | (273) | ||||||||
Distributions to noncontrolling interests | (5,908) | (73,304) | (73,304) | ||||||||
Reclassification of redeemable noncontrolling interests to noncontrolling interests | 19,383 | 19,383 | 19,383 | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 1,969 | (1,969) | (1,969) | ||||||||
Other | 5 | (1) | 1 | 5 | |||||||
Balances 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 Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 17,479 | 5,313 | 12,166 | ||||||||
Distributions to noncontrolling interests | (5,908) | (73,304) | (73,304) | ||||||||
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 | 1,969 | (1,969) | (1,969) | ||||||||
Redeemable noncontrolling interests at Oct. 31, 2014 | 39,966 | 39,966 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 19,340 | 6,534 | 12,806 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 116,573 | (16,791) | 133,364 | ||||||||
Comprehensive Income (Loss) | 135,913 | 129,379 | |||||||||
Cash dividends | (9,343) | (9,343) | |||||||||
Issuance of common stock to HEICO Savings and Investment Plan | 1 | 1 | 5,752 | 5,754 | |||||||
Share-based compensation expense | 6,048 | 6,048 | |||||||||
Proceeds from stock option exercises | 2 | 3,671 | 3,673 | ||||||||
Tax benefit from stock option exercises | 1,402 | 1,402 | |||||||||
Redemptions of common stock related to stock option exercises | (5) | (5) | (5) | ||||||||
Distributions to noncontrolling interests | (5,166) | (4,533) | (4,533) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 13,724 | (13,724) | (13,724) | ||||||||
Deferred Compensation Obligation | 645 | ||||||||||
Stock Held During Period Value Deferred Compensation Obligation | (645) | ||||||||||
Other | 1 | 1 | |||||||||
Balances at Oct. 31, 2015 | 893,271 | $ 269 | $ 400 | $ 286,220 | $ 1,783 | $ (1,783) | $ (25,080) | 548,054 | 83,408 | 893,271 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 19,340 | 6,534 | 12,806 | ||||||||
Distributions to noncontrolling interests | (5,166) | $ (4,533) | (4,533) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 13,724 | $ (13,724) | $ (13,724) | ||||||||
Noncontrolling interests assumed related to acquisition | 36,224 | ||||||||||
Redeemable noncontrolling interests at Oct. 31, 2015 | $ 91,282 | $ 91,282 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [PARENTHETICAL] - $ / shares | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Cash dividends per share (in dollars per share) | $ 0.140 | $ 0.470 | $ 1.816 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Operating Activities: | |||
Net income from consolidated operations | $ 153,564 | $ 138,772 | $ 124,561 |
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities: | |||
Depreciation and amortization | 47,907 | 47,757 | 36,790 |
Impairment of intangible assets | 0 | 15,000 | 0 |
Share-based compensation expense | 6,048 | 6,426 | 5,117 |
Employer contributions to HEICO Savings and Investment Plan | 6,125 | 6,302 | 2,985 |
Deferred income tax benefit | (7,080) | (16,745) | (5,785) |
Tax benefit from stock option exercises | 1,402 | 93 | 5,191 |
Excess tax benefit from stock option exercises | (1,402) | (93) | (5,126) |
Accrued contingent consideration | 293 | (28,126) | (1,640) |
Foreign Currency Transaction Gain, before Tax | (3,704) | 0 | 0 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (22,572) | 6,999 | (16,585) |
Inventories | (10,187) | 126 | (14,877) |
Prepaid expenses and other current assets | 1,433 | 8,033 | (4,918) |
Trade accounts payable | 3,169 | 2,511 | (23) |
Accrued expenses and other current liabilities | (883) | (3,090) | 12,766 |
Income taxes payable | 373 | 1,462 | (7,273) |
Other | (1,623) | 5,262 | 653 |
Net cash provided by operating activities | 172,863 | 190,689 | 131,836 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (166,784) | (8,737) | (222,638) |
Capital expenditures | (18,249) | (16,410) | (18,328) |
Other | (973) | (40) | (342) |
Net cash used in investing activities | (186,006) | (25,187) | (241,308) |
Financing Activities: | |||
Borrowings on revolving credit facility | 173,696 | 112,000 | 372,000 |
Payments on revolving credit facility | (132,000) | (159,000) | (126,000) |
Distributions to noncontrolling interests | (9,699) | (79,212) | (7,579) |
Cash dividends paid | (9,343) | (31,215) | (120,361) |
Acquisitions of noncontrolling interests | 0 | (1,243) | (16,610) |
Redemptions of common stock related to stock option exercises | (5) | (273) | (2,364) |
Proceeds from stock option exercises | 3,673 | 708 | 463 |
Excess tax benefit from stock option exercises | 1,402 | 93 | 5,126 |
Revolving credit facility issuance costs | 0 | (767) | (570) |
Payment of contingent consideration | 0 | 0 | (601) |
Other | (388) | (1,206) | (296) |
Net cash (used in) provided by financing activities | 27,336 | (160,115) | 103,208 |
Effect of exchange rate changes on cash | (819) | (657) | 312 |
Net increase (decrease) in cash and cash equivalents | 13,374 | 4,730 | (5,952) |
Cash and cash equivalents at beginning of year | 20,229 | 15,499 | 21,451 |
Cash and cash equivalents at end of year | $ 33,603 | $ 20,229 | $ 15,499 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2015 | |
Summary Of Significant Accounting Policies (Policies) [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business HEICO Corporation, through its principal subsidiaries consisting of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”), HEICO Flight Support Corp. and HEICO Electronic Technologies Corp. (“HEICO Electronic”) and their respective subsidiaries (collectively, the “Company”), is principally engaged in the design, manufacture and sale of aerospace, defense and electronic related products and services throughout the United States ("U.S.") and internationally. The Company’s customer base is primarily the aviation, defense, space, medical, telecommunications and electronics industries. Basis of Presentation The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries. The consolidated financial statements include the financial accounts of HEICO Corporation and its subsidiaries, all of which are wholly owned except for HEICO Aerospace, which is 20% owned by Lufthansa Technik AG ("LHT"), the technical services subsidiary of Lufthansa German Airlines. In addition, HEICO Aerospace consolidates two subsidiaries which are 80.1% and 82.3% owned, respectively, and a joint venture, which is 84% owned. Also, HEICO Flight Support Corp. consolidates two subsidiaries which are 80.0% and 84% owned, respectively, and four subsidiaries that are each 80.1% owned. Furthermore, HEICO Electronic consolidates four subsidiaries, which are 80.1% , 80.1% , 82.5% , and 95.9% owned, respectively, and a wholly owned subsidiary of HEICO Electronic consolidates a subsidiary which is 78% owned. See Note 11, Redeemable Noncontrolling Interests. All intercompany balances and transactions are eliminated. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments such as U.S. Treasury bills and money market funds with an original maturity of three months or less at the time of purchase to be cash equivalents. Accounts Receivable Accounts receivable consist of amounts billed and currently due from customers and unbilled costs and estimated earnings related to revenue from certain fixed price contracts recognized on the percentage-of-completion method that have been recognized for accounting purposes, but not yet billed to customers. The valuation of accounts receivable requires that the Company set up an allowance for estimated uncollectible accounts and record a corresponding charge to bad debt expense. The Company estimates uncollectible receivables based on such factors as its prior experience, its appraisal of a customer’s ability to pay, age of receivables outstanding and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade accounts receivable. The Company places its temporary cash investments with high credit quality financial institutions and limits the amount of credit exposure to any one financial institution. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographical regions. The Company performs ongoing credit evaluations of its customers, but does not generally require collateral to support customer receivables. Inventory Inventory is stated at the lower of cost or market, with cost being determined on the first-in, first-out or the average cost basis. Losses, if any, are recognized fully in the period when identified. The Company periodically evaluates the carrying value of inventory, giving consideration to factors such as its physical condition, sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving, obsolete or damaged inventory. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In accordance with industry practice, all inventories are classified as a current asset including portions with long production cycles, some of which may not be realized within one year. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization is generally provided on the straight-line method over the estimated useful lives of the various assets. The Company’s property, plant and equipment is depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Leasehold improvements 2 to 20 years Machinery and equipment 3 to 10 years Tooling 2 to 5 years The costs of major additions and improvements are capitalized. Leasehold improvements are amortized over the shorter of the leasehold improvement’s useful life or the lease term. Repairs and maintenance costs are expensed as incurred. Upon an asset's disposition, its cost and related accumulated depreciation are removed from the financial accounts and any resulting gain or loss is reflected within earnings. Capital Leases Assets acquired under capital leases are recorded at the lower of the asset's fair value or the present value of the future minimum lease payments, excluding any portion of the lease payments representing executory costs. The discount rate used in determining the present value of the minimum lease payments is the lower of the rate implicit in the lease or the Company's incremental borrowing rate. Assets under capital leases are included in property, plant and equipment and are depreciated over the shorter of the lease term or the useful life of the leased asset. Lease payments under capital leases are recognized as a reduction of the capital lease obligation and as interest expense. Business Combinations The Company allocates the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values, with any excess recorded as goodwill. The operating results of acquired businesses are included in the Company’s results of operations beginning as of their effective acquisition dates. Acquisition costs are generally expensed as incurred and were not material in fiscal 2015, 2014 or 2013. For contingent consideration arrangements, a liability is recognized at fair value as of the acquisition date with subsequent fair value adjustments recorded in operations. Information regarding additional contingent purchase consideration may be found in Note 2, Acquisitions, and Note 7, Fair Value Measurements. Goodwill and Other Intangible Assets The Company tests goodwill for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. In evaluating the recoverability of goodwill, the Company compares the fair value of each of its reporting units to its carrying value to determine potential impairment. If the carrying value of a reporting unit exceeds its fair value, the implied fair value of that reporting unit’s goodwill is to be calculated and an impairment loss is recognized in the amount by which the carrying value of the reporting unit’s goodwill exceeds its implied fair value, if any. The fair values of the Company's reporting units are determined by using a weighted average of a market approach and an income approach. Under the market approach, fair values are estimated using published market multiples for comparable companies. The Company calculates fair values under the income approach by taking estimated future cash flows that are based on internal projections and other assumptions deemed reasonable by management and discounting them using an estimated weighted average cost of capital. The Company’s intangible assets not subject to amortization consist principally of its trade names. The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for certain customer relationships amortized on an accelerated method) over the following estimated useful lives : Customer relationships 7 to 12 years Intellectual property 7 to 15 years Licenses 10 to 17 years Non-compete agreements 2 to 7 years Patents 5 to 20 years Trade names 8 to 10 years Amortization expense of intellectual property, licenses and patents is recorded as a component of cost of sales, and amortization expense of customer relationships, non-compete agreements and trade names is recorded as a component of selling, general and administrative ("SG&A") expenses in the Company’s Consolidated Statements of Operations. The Company tests each non-amortizing intangible asset for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. To derive the fair value of its trade names, the Company utilizes an income approach, which relies upon management's assumptions of royalty rates, projected revenues and discount rates. The Company also tests each amortizing intangible asset for impairment if events or circumstances indicate that the asset might be impaired. The test consists of determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The determination of fair value requires management to make a number of estimates, assumptions and judgments of such factors as projected revenues and earnings and discount rates. Investments Investments are stated at fair value based on quoted market prices. Investments that are intended to be held for less than one year are included within prepaid expenses and other current assets in the Company’s Consolidated Balance Sheets, while those intended to be held for longer than one year are classified within other assets. Unrealized gains or losses associated with available-for-sale securities are reported net of tax within other comprehensive income or (loss) in shareholders’ equity. Unrealized gains or losses associated with trading securities are recorded as a component of other income in the Company’s Consolidated Statements of Operations. Customer Rebates and Credits The Company records accrued customer rebates and credits as a component of accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. These amounts generally relate to discounts negotiated with customers as part of certain sales contracts that are usually tied to sales volume thresholds. The Company accrues customer rebates and credits as a reduction within net sales as the revenue is recognized based on the estimated level of discount rate expected to be earned by each customer over the life of the contractual rebate period (generally one year). Accrued customer rebates and credits are monitored by management and discount levels are updated at least quarterly. Product Warranties Product warranty liabilities are estimated at the time of shipment and recorded as a component of accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The amount recognized is based on historical claims experience. Defined Benefit Pension Plan In connection with a fiscal 2013 acquisition, the Company assumed a frozen qualified defined benefit pension plan (the "Plan"). The Plan's benefits are based on employee compensation and years of service. However, since the Plan was closed to new participants effective December 31, 2004, the accrued benefit for Plan participants was fixed as of the date of acquisition. The Company uses an actuarial valuation to determine the projected benefit obligation of the Plan and records the difference between the fair value of the Plan's assets and the projected benefit obligation as of October 31 in its Consolidated Balance Sheets. Additionally, any actuarial gain or loss that arises during a fiscal year that is not recognized as a component of net periodic pension income or expense is recorded as a component of other comprehensive income or (loss), net of tax. See Note 10, Employee Retirement Plans, for additional information and disclosures about the Plan. Revenue Recognition Revenue from the sale of products and the rendering of services is recognized when title and risk of loss passes to the customer, which is generally at the time of shipment. Revenue from the rendering of services represented less than 10% of consolidated net sales for all periods presented. Revenue from certain fixed price contracts for which costs can be dependably estimated is recognized on the percentage-of-completion method, measured by the percentage of costs incurred to date to estimated total costs for each contract. The percentage of the Company’s net sales recognized under the percentage-of-completion method was approximately 4% , 3% and 1% in fiscal 2015, 2014 and 2013, respectively. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Selling, general and administrative costs are charged to expense as incurred. Revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the period of revision. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Variations in actual labor performance, changes to estimated profitability, and final contract settlements may result in revisions to cost estimates and are recognized in income in the period in which the revisions are determined. Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations in fiscal 2015, 2014 or 2013. The asset, “costs and estimated earnings in excess of billings” on uncompleted percentage-of-completion contracts, included in accounts receivable, represents revenue recognized in excess of amounts billed. The liability, “billings in excess of costs and estimated earnings,” included in accrued expenses and other current liabilities, represents billings in excess of revenue recognized on contracts accounted for under the percentage-of-completion method. Billings are made based on the completion of certain milestones as provided for in the contracts. For fixed price contracts in which costs cannot be dependably estimated, revenue is recognized on the completed-contract method. A contract is considered complete when all significant costs have been incurred or the item has been accepted by the customer. Progress billings and customer advances (“billings to date”) received on fixed price contracts accounted for under the completed-contract method are classified as a reduction to contracts in process (a component of inventories), if any, and any remaining amount is included in accrued expenses and other current liabilities. Stock-Based Compensation The Company records compensation expense associated with stock options in its Consolidated Statements of Operations based on the grant date fair value of those awards. The fair value of each stock option on the date of grant is estimated using the Black-Scholes pricing model based on certain valuation assumptions. Expected stock price volatility is based on the Company’s historical stock prices over the contractual term of the option grant and other factors. The risk-free interest rate used is based on the published U.S. Treasury yield curve in effect at the time of the option grant for instruments with a similar life. The dividend yield reflects the Company’s expected dividend yield at the date of grant. The expected option life represents the period of time that the stock options are expected to be outstanding, taking into consideration the contractual term of the option grant and employee historical exercise behavior. The Company generally recognizes stock option compensation expense ratably over the award’s vesting period. Income Taxes Income tax expense includes U.S. and foreign income taxes, plus a provision for U.S. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested. Deferred income taxes are provided on elements of income that are recognized for financial accounting purposes in periods different from periods recognized for income tax purposes. The Company’s policy is to recognize interest and penalties related to income tax matters as a component of income tax expense. Further information regarding income taxes can be found in Note 6, Income Taxes. Redeemable Noncontrolling Interests As further detailed in Note 11, Redeemable Noncontrolling Interests, the holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that require the Company to provide cash consideration for their equity interests (the “Redemption Amount”) at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. The Put Rights are embedded in the shares owned by the noncontrolling interest holders and are not freestanding. The Company tracks the carrying cost of such redeemable noncontrolling interests at historical cost plus an allocation of subsidiary earnings based on ownership interest, less dividends paid to the noncontrolling interest holders. Redeemable noncontrolling interests are recorded outside of permanent equity at the higher of their carrying cost or management’s estimate of the Redemption Amount. The initial adjustment to record redeemable noncontrolling interests at the Redemption Amount results in a corresponding decrease to retained earnings. Subsequent adjustments to the Redemption Amount of redeemable noncontrolling interests may result in corresponding decreases or increases to retained earnings, provided any increases to retained earnings may only be recorded to the extent of decreases previously recorded. Adjustments to Redemption Amounts based on fair value will have no affect on net income per share attributable to HEICO shareholders whereas the portion of periodic adjustments to the carrying amount of redeemable noncontrolling interests based solely on a multiple of future earnings that reflect a redemption amount in excess of fair value will affect net income per share attributable to HEICO shareholders. Acquisitions of redeemable noncontrolling interests are treated as equity transactions. Net Income per Share Attributable to HEICO Shareholders Basic net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period. Diluted net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period plus potentially dilutive common shares arising from the assumed exercise of stock options, if dilutive. The dilutive impact of potentially dilutive common shares is determined by applying the treasury stock method. Foreign Currency All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end exchange rates, while revenue and expenses are translated using average exchange rates for the period. Unrealized translation gains or losses are reported as foreign currency translation adjustments through other comprehensive income or (loss) in shareholders’ equity. Transaction gains or losses related to balances denominated in a currency other than the functional currency are recorded in the Company's Consolidated Statements of Operations. Contingencies Losses for contingencies such as product warranties, litigation and environmental matters are recognized in income when they are probable and can be reasonably estimated. Gain contingencies are not recognized in income until they have been realized. 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. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year. Accordingly, ASU 2014-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2017, or in fiscal 2019 for HEICO. Early adoption in the year preceding the effective date is 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 and cash flows. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires entities to measure inventories at the lower of cost or net realizable value. Under current guidance, inventories are measured at the lower of cost or market. ASU 2015-11 must be applied prospectively and 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 permitted. The Company is currently evaluating the effect, if any, the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments," which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including any cumulative effect on earnings as a result of the change to the provisional amounts as if the accounting had been completed as of the acquisition date. The Company adopted ASU 2015-16 in the fourth quarter of fiscal 2015, resulting in no impact on the Company's consolidated results of operations, financial position or cash flows. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes," which requires that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 may be applied either prospectively or retrospectively and 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 permitted. The Company is currently evaluating which transition method it will elect. The adoption of this guidance will only effect the presentation of deferred taxes in the Company's consolidated statement of financial position. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Oct. 31, 2015 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS Reinhold Acquisition On May 31, 2013 , the Company, through HEICO Flight Support Corp., acquired Reinhold Industries, Inc. ("Reinhold") through the acquisition of all of the outstanding stock of Reinhold's parent company in a transaction carried out by means of a merger. The purchase price of this acquisition was paid in cash, principally using proceeds from the Company’s revolving credit facility. Reinhold is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. This acquisition is consistent with HEICO’s practice of acquiring outstanding, niche designers and manufacturers of critical components in the aerospace and defense industries and will further enable the Company to broaden its product offerings, technologies and customer base. The following table summarizes the total consideration for the acquisition of Reinhold (in thousands): Cash paid $141,014 Less: cash acquired (8,041 ) Cash paid, net 132,973 Additional purchase consideration 1,499 Total consideration $134,472 The following table summarizes the allocation of the total consideration for the acquisition of Reinhold to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands): Assets acquired: Goodwill $76,424 Identifiable intangible assets 66,500 Inventories 10,753 Accounts receivable 8,830 Property, plant and equipment 7,994 Other assets 2,756 Total assets acquired, excluding cash 173,257 Liabilities assumed: Deferred income taxes 25,613 Accrued expenses 6,994 Accounts payable 2,923 Defined benefit pension plan obligation, net 2,865 Other liabilities 390 Total liabilities assumed 38,785 Net assets acquired, excluding cash $134,472 The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Reinhold and the value of its assembled workforce that do not qualify for separate recognition. The operating results of Reinhold were included in the Company’s results of operations from the effective acquisition date. The Company’s consolidated net sales and net income attributable to HEICO for fiscal 2013 includes approximately $30.8 million and $2.8 million , respectively, from the acquisition of Reinhold. Other Acquisitions In August 2015 , the Company, through HEICO Flight Support Corp., acquired all of the stock of Astroseal Products Mfg. Corporation (“Astroseal”). Astroseal manufactures expanded foil mesh, which is integrated into composite aerospace structures for lighting strike protection in fixed and rotary wing aircraft. In August 2015 , the Company, through HEICO Electronic, acquired 80.1% of the equity of Midwest Microwave Solutions, Inc. (“MMS”). MMS designs, manufactures and sells unique Size, Weight, Power and Cost (SWAP-C) optimized Communications and Electronic Intercept Receivers and Tuners for military and intelligence applications. The remaining 19.9% continues to be owned by certain members of MMS’ management team (see Note 11, Redeemable Noncontrolling Interests, for additional information). In August 2015 , the Company, through HEICO Flight Support Corp., acquired 80.1% of the assets and assumed certain liabilities of Aerospace & Commercial Technologies, LLC (“ACT”). ACT is a leading provider of products and services necessary to maintain up-to-date F-16 fighter aircraft operational capabilities. The remaining 19.9% continues to be owned by certain members of ACT’s management team (see Note 11, Redeemable Noncontrolling Interests, for additional information). In May 2015 , the Company, through a subsidiary of HEICO Flight Support Corp., 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. In January 2015 , the Company, through HEICO Flight Support Corp., 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 11, Redeemable Noncontrolling Interests, for additional information). In January 2015 , the Company, through HEICO Flight Support Corp., acquired 80% of the equity of Aeroworks International Holding B.V. (“Aeroworks”). Aeroworks, which is headquartered in the Netherlands and maintains a significant portion of its 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 11, Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual representing the estimated 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 June 2014 , the Company, through a subsidiary of HEICO Flight Support Corp., acquired certain assets and liabilities of Quest Aviation Supply, Inc. (“Quest Aviation”). Quest Aviation is a niche supplier of parts to repair thrust reversers on various aircraft engines. In October 2013 , the Company acquired, through HEICO Electronic, all of the outstanding stock of Lucix Corporation ("Lucix") in a transaction carried out by means of a merger. Lucix is a leading designer and manufacturer of high performance, high reliability microwave modules, units, and integrated sub-systems for commercial and military satellites. The total consideration included an accrual of $7.0 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may have been obligated to pay had Lucix met certain earnings objectives during the last three months of the calendar year of acquisition. Additionally, the total consideration included an accrual of $13.7 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Lucix meet certain earnings objectives during the subsequent two calendar years (2014 and 2015). As of the acquisition date, the maximum amount of contingent consideration that the Company could have been required to pay was $50.0 million in aggregate. See Note 7, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. During fiscal 2013, the Company, through subsidiaries of HEICO Electronic, acquired certain product lines that will supplement their existing operations. The purchase prices of these acquisitions were paid using cash provided by operating activities. Unless otherwise noted, the purchase price of each of the above referenced other acquisitions was paid in cash principally using proceeds from the Company's revolving credit facility and is not material or significant to the Company's consolidated financial statements. The following table summarizes the aggregate total consideration for the Company's other acquisitions (in thousands): Year ended October 31, 2015 2014 2013 Cash paid $171,829 $6,759 $91,647 Less: cash acquired (5,062 ) — (3,185 ) Cash paid, net 166,767 6,759 88,462 Contingent purchase consideration 21,355 — 20,654 Additional purchase consideration (204 ) (56 ) 569 Total consideration $187,918 $6,703 $109,685 The following table summarizes the allocation of the aggregate total consideration for the Company's other acquisitions to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands): Year ended October 31, 2015 2014 2013 Assets acquired: Identifiable intangible assets $102,981 $3,400 $39,843 Goodwill 89,144 2,552 68,095 Inventories 17,254 247 3,112 Property, plant and equipment 16,280 248 6,286 Accounts receivable 10,719 256 9,233 Other assets 2,594 12 2,565 Total assets acquired, excluding cash 238,972 6,715 129,134 Liabilities assumed: Deferred income taxes 6,788 — 13,857 Accounts payable 4,845 — 1,746 Accrued expenses 2,576 12 3,846 Other liabilities 621 — — Total liabilities assumed 14,830 12 19,449 Noncontrolling interests in consolidated subsidiaries 36,224 — — Net assets acquired, excluding cash $187,918 $6,703 $109,685 The allocation of the aggregate total consideration for the Company's fiscal 2015 acquisitions to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed is preliminary until the Company obtains final information regarding their fair values. However, the Company does not expect any adjustments to such allocations to be material to the Company's consolidated financial statements. During fiscal 2015, the Company recorded certain immaterial measurement period adjustments to the allocation of the total consideration for its fiscal 2014 acquisition. The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of the businesses acquired and the value of their assembled workforces that do not qualify for separate recognition, which, in the case of MMS, ACT, Harter and Aeroworks benefit both the Company and the noncontrolling interest holders. The fair value of the noncontrolling interests in MMS, ACT, Harter and Aeroworks was determined based on the consideration paid by the Company for its controlling ownership interest adjusted for a lack of control that a market participant would consider when estimating the fair value of the noncontrolling interest. The operating results of the Company’s fiscal 2015 acquisitions were included in the Company’s results of operations from each of the effective acquisition dates. The Company’s consolidated net sales and net income attributable to HEICO for fiscal 2015 includes approximately $62.9 million and $7.9 million , respectively, from the fiscal 2015 acquisitions. The following table presents unaudited pro forma financial information for fiscal 2015 and fiscal 2014 as if the Company's fiscal 2015 acquisitions had occurred as of November 1, 2013 (in thousands): Year ended October 31, 2015 2014 Net sales $1,244,911 $1,228,987 Net income from consolidated operations $163,012 $150,412 Net income attributable to HEICO $140,771 $130,539 Net income per share attributable to HEICO shareholders: Basic $2.11 $1.96 Diluted $2.08 $1.94 The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisitions had taken place as of November 1, 2013. The unaudited pro forma financial information includes adjustments to historical amounts such as additional amortization expense related to intangible assets acquired, increased interest expense associated with borrowings to finance the acquisitions and inventory purchase accounting adjustments charged to cost of sales as the inventory is sold. Additional Purchase Consideration During fiscal 2014 and 2013, the Company made additional purchase consideration payments in cash of $2.0 million and $1.2 million , respectively, pursuant to the terms of the purchase agreements related to certain recent acquisitions. |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Oct. 31, 2015 | |
Selected Financial Statement Information [Abstract] | |
Additional Financial Information Disclosure [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable As of October 31, (in thousands) 2015 2014 Accounts receivable $183,631 $151,812 Less: Allowance for doubtful accounts (2,038 ) (2,143 ) Accounts receivable, net $181,593 $149,669 Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts As of October 31, (in thousands) 2015 2014 Costs incurred on uncompleted contracts $22,645 $24,437 Estimated earnings 16,116 11,747 38,761 36,184 Less: Billings to date (36,442 ) (29,829 ) $2,319 $6,355 Included in the accompanying Consolidated Balance Sheets under the following captions: Accounts receivable, net (costs and estimated earnings in excess of billings) $6,263 $8,161 Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) (3,944 ) (1,806 ) $2,319 $6,355 Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations in fiscal 2015, 2014 or 2013. Inventories As of October 31, (in thousands) 2015 2014 Finished products $119,262 $106,229 Work in process 32,201 30,056 Materials, parts, assemblies and supplies 89,739 79,163 Contracts in process 4,521 2,594 Less: Billings to date (2,206 ) — Inventories, net of valuation reserves $243,517 $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 As of October 31, (in thousands) 2015 2014 Land $5,060 $4,501 Buildings and improvements 70,626 60,332 Machinery, equipment and tooling 152,022 139,963 Construction in progress 4,668 6,905 232,376 211,701 Less: Accumulated depreciation and amortization (126,706 ) (117,836 ) Property, plant and equipment, net $105,670 $93,865 The amounts set forth above include tooling costs having a net book value of $6.5 million and $6.0 million as of October 31, 2015 and 2014, respectively. Amortization expense on capitalized tooling was $2.4 million , $2.4 million and $2.2 million in fiscal 2015, 2014 and 2013, respectively. The amounts set forth above also include $3.7 million and $4.6 million of assets under capital leases as of October 31, 2015 and October 31, 2014, respectively. Accumulated depreciation associated with the assets under capital leases was $.7 million and $1.0 million as of October 31, 2015 and October 31, 2014, respectively. See Note 5, Long-Term Debt, for additional information pertaining to these capital lease obligations. Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $17.8 million , $17.1 million and $13.4 million in fiscal 2015, 2014 and 2013, respectively. Accrued Expenses and Other Current Liabilities As of October 31, (in thousands) 2015 2014 Accrued employee compensation and related payroll taxes $53,238 $52,480 Deferred revenue 16,498 12,481 Accrued customer rebates and credits 8,072 10,924 Accrued additional purchase consideration 6,859 90 Other 15,488 16,603 Accrued expenses and other current liabilities $100,155 $92,578 The total customer rebates and credits deducted within net sales in fiscal 2015, 2014 and 2013 was $4.7 million , $8.3 million and $8.3 million , respectively. The decrease in total customer rebates and credits deducted within net sales in fiscal 2015 and the amount of accrued customer rebates and credits principally reflects a reduction in the net sales volume of certain customers eligible for rebates as well as a reduction in the associated rebate percentages. The increase in deferred revenue principally reflects billings in excess of costs and earnings pertaining to certain of the Company's percentage-of-completion contracts. The increase in accrued additional purchase consideration principally reflects the estimated fair value of contingent consideration related to a fiscal 2015 acquisition expected to be paid in fiscal 2016. See Note 7, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligations. Other Long-Term Assets and Liabilities The Company provides eligible employees, officers and directors of the Company the opportunity to voluntarily defer base salary, bonus payments, commissions, long-term incentive awards and directors fees, as applicable, on a pre-tax basis through the HEICO Corporation Leadership Compensation Plan (“LCP”), a nonqualified deferred compensation plan that conforms to Section 409A of the Internal Revenue Code. The Company matches 50% of the first 6% of base salary deferred by each participant. Director fees that would otherwise be payable in Company common stock may be deferred into the LCP, and, when distributable, are distributed in actual shares of Company common stock. The LCP does not provide for diversification of a director’s assets allocated to Company common stock. The deferred compensation obligation associated with Company common stock is recorded as a component of shareholders’ equity at cost and subsequent changes in fair value are not reflected in operations or shareholders’ equity of the Company. Further, while the Company has no obligation to do so, the LCP also provides the Company the opportunity to make discretionary contributions. The Company’s matching contributions and any discretionary contributions are subject to vesting and forfeiture provisions set forth in the LCP. Company contributions to the LCP charged to income in fiscal 2015, 2014 and 2013 totaled $5.7 million , $5.3 million and $4.3 million , respectively. The aggregate liabilities of the LCP were $76.2 million and $65.0 million as of October 31, 2015 and 2014, respectively, and are classified within other long-term liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $77.1 million and $65.9 million as of October 31, 2015 and 2014, respectively, are classified within other assets and principally represent cash surrender values of life insurance policies that are held within an irrevocable trust that may be used to satisfy the obligations under the LCP. Other long-term liabilities also includes deferred compensation of $4.5 million and $5.5 million as of October 31, 2015 and 2014, respectively, principally related to elective deferrals of salary and bonuses under a Company sponsored non-qualified deferred compensation plan formerly available to selected employees. The Company makes no contributions to this plan. The assets of this plan, which equaled the deferred compensation liability as of October 31, 2015 and 2014, respectively, are held within an irrevocable trust and classified within other assets in the Company’s Consolidated Balance Sheets. Additional information regarding the assets of this deferred compensation plan and the LCP may be found in Note 7, Fair Value Measurements. Research and Development Expenses The amount of new product research and development ("R&D") expenses included in cost of sales is as follows (in thousands): Year ended October 31, 2015 2014 2013 R&D expenses $38,747 $37,377 $32,897 Accumulated Other Comprehensive Income (Loss) Changes in the components of accumulated other comprehensive income (loss) during fiscal 2015 and 2014 are as follows (in thousands): Foreign Currency Translation Pension Benefit Obligation Accumulated Other Comprehensive Income (Loss) Balances as of October 31, 2013 ($466 ) $610 $144 Unrealized loss (7,882 ) (551 ) (8,433 ) Balances as of October 31, 2014 (8,348 ) 59 (8,289 ) Unrealized loss (16,020 ) (771 ) (16,791 ) Balances as of October 31, 2015 ($24,368 ) ($712 ) ($25,080 ) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Oct. 31, 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 during fiscal 2015 and 2014 by operating segment are as follows (in thousands): Segment Consolidated FSG ETG Totals Balances as of October 31, 2013 $279,855 $408,634 $688,489 Goodwill acquired 2,552 — 2,552 Foreign currency translation adjustments — (4,797 ) (4,797 ) Adjustments to goodwill — 27 27 Balances as of October 31, 2014 282,407 403,864 686,271 Goodwill acquired 56,441 32,703 89,144 Foreign currency translation adjustments (1,341 ) (7,435 ) (8,776 ) Balances as of October 31, 2015 $337,507 $429,132 $766,639 The goodwill acquired during fiscal 2015 and 2014 relates to the acquisitions consummated in those respective years as described in Note 2, Acquisitions. Goodwill acquired 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 foreign currency translation adjustments reflect unrealized translation losses on the goodwill recognized in connection with foreign subsidiaries. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Consolidated Statements of Comprehensive Income. The adjustments to goodwill during fiscal 2014 represent immaterial measurement period adjustments to the purchase price allocations of certain fiscal 2013 acquisitions. The Company estimates that approximately $60 million and $3 million of the goodwill acquired in fiscal 2015 and fiscal 2014, respectively, is deductible for income tax purposes. Based on the annual test for goodwill impairment as of October 31, 2015, the Company determined there is no impairment of its goodwill and the fair value of each of the Company’s reporting units significantly exceeded their carrying value. Identifiable intangible assets consist of (in thousands): As of October 31, 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 $190,450 ($63,461 ) $126,989 $144,478 ($55,393 ) $89,085 Intellectual property 98,143 (22,912 ) 75,231 73,005 (17,620 ) 55,385 Licenses 4,200 (1,882 ) 2,318 2,900 (1,645 ) 1,255 Non-compete agreements 914 (914 ) — 1,020 (1,020 ) — Patents 746 (447 ) 299 712 (405 ) 307 Trade names 166 (38 ) 128 166 (17 ) 149 294,619 (89,654 ) 204,965 222,281 (76,100 ) 146,181 Non-Amortizing Assets: Trade names 67,628 — 67,628 54,629 — 54,629 $362,247 ($89,654 ) $272,593 $276,910 ($76,100 ) $200,810 The increase in the gross carrying amount of customer relationships, intellectual property, licenses and non-amortizing trade names as of October 31, 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, intellectual property and licenses acquired during fiscal 2015 is 10 years, 12 years, and 11 years, respectively. Amortization expense related to intangible assets was $27.0 million , $27.7 million and $20.6 million in fiscal 2015, 2014 and 2013, respectively. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $30.7 million in fiscal 2016, $29.8 million in fiscal 2017, $27.8 million in fiscal 2018, $25.8 million in fiscal 2019, $23.2 million in fiscal 2020 and $67.7 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): As of October 31, 2015 2014 Borrowings under revolving credit facility $365,203 $326,000 Capital leases 2,395 3,109 367,598 329,109 Less: Current maturities of long-term debt (357 ) (418 ) $367,241 $328,691 As of October 31, 2015, the Company's long-term debt, excluding capital leases, consisted solely of $365.2 million of borrowings under its revolving credit facility, all of which will mature in fiscal 2019. As of October 31, 2015 and 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 October 31, 2015, the Company was in compliance with all such covenants. During 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 a fiscal 2015 acquisition. As of October 31, 2015, the U.S. dollar equivalent of the Company's Euro borrowing was $35.2 million . Capital Lease Obligations A subsidiary of HEICO Electronic is a party to a capital lease for a manufacturing facility and related property in France. The lease contains a bargain purchase option and has a twelve-year term, which began in fiscal 2011. Additionally, the subsidiary is a party to various capital leases, principally for manufacturing and office equipment, with lease terms of approximately five years. The estimated future minimum lease payments of all capital leases for the next five fiscal years and thereafter are as follows (in thousands): Year ending October 31, 2016 $455 2017 400 2018 395 2019 395 2020 358 Thereafter 753 Total minimum lease payments 2,756 Less: amount representing interest (361 ) Present value of minimum lease payments $2,395 Revolving Credit Facility In December 2011 , the Company entered into a $670 million Revolving Credit Agreement (“Credit Facility”) with a bank syndicate. The Credit Facility may be used for working capital and general corporate needs of the Company, including capital expenditures and to finance acquisitions. In December 2012 , the Company entered into an amendment to extend the maturity date of the Credit Facility by one year to December 2017 . The Company also amended certain covenants contained within the Credit Facility agreement to accommodate payment of a special and extraordinary cash dividend paid in December 2012. See Note 8, Shareholders' Equity, for additional information. In November 2013 , the Company entered into an amendment to extend the maturity date of the Credit Facility by one year to December 2018 and to increase the aggregate principal amount to $800 million . Furthermore, the amendment includes a feature that will allow the Company to increase the aggregate principal amount by an additional $200 million to become a $1.0 billion facility through increased commitments from existing lenders or the addition of new lenders. Advances under the Credit Facility accrue interest at the Company’s choice of the “Base Rate” or the London Interbank Offered Rate (“LIBOR”) plus the applicable margin (based on the Company’s ratio of total funded debt to earnings before interest, taxes, depreciation and amortization, noncontrolling interests and non-cash charges, or “leverage ratio”). The Base Rate is the highest of (i) the Prime Rate; (ii) the Federal Funds rate plus .50% per annum; and (iii) the Adjusted LIBO Rate determined on a daily basis for an Interest Period of one month plus 1.00% per annum, as such capitalized terms are defined in the Credit Facility. The applicable margin for a LIBOR-based borrowing ranges from .75% to 2.25% . The applicable margin for a Base Rate borrowing ranges from 0% to 1.25% . A fee is charged on the amount of the unused commitment ranging from .125% to .35% (depending on the Company’s leverage ratio). The Credit Facility also includes a $50 million sublimit for borrowings made in foreign currencies, letters of credit and swingline borrowings. Outstanding principal, accrued and unpaid interest and other amounts payable under the Credit Facility may be accelerated upon an event of default, as such events are described in the Credit Facility. The Credit Facility is unsecured and contains covenants that restrict the amount of certain payments, including dividends, and require, among other things, the maintenance of a total leverage ratio, a senior leverage ratio and a fixed charge coverage ratio. In the event the Company’s leverage ratio exceeds a specified level, the Credit Facility would become secured by the capital stock owned in substantially all of the Company’s subsidiaries. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The components of income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2015 2014 2013 Domestic $206,612 $185,842 $168,643 Foreign 18,352 12,730 12,118 Income before taxes and noncontrolling interests $224,964 $198,572 $180,761 The components of the provision for income taxes on income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2015 2014 2013 Current: Federal $65,857 $63,264 $49,275 State 8,559 10,145 9,060 Foreign 4,064 3,136 3,650 78,480 76,545 61,985 Deferred: Federal (4,459 ) (14,000 ) (4,786 ) State (1,907 ) (2,871 ) (467 ) Foreign (714 ) 126 (532 ) (7,080 ) (16,745 ) (5,785 ) Total income tax expense $71,400 $59,800 $56,200 A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows: Year ended October 31, 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal income tax benefit 2.4 2.9 3.1 Research and development tax credits (1.9 ) (1.2 ) (2.6 ) Noncontrolling interests’ share of income (1.3 ) (1.0 ) (1.3 ) Domestic production activities tax deduction (1.2 ) (1.6 ) (1.2 ) Foreign taxes, where permanently reinvested outside of the U.S. (.8 ) — — Nontaxable reduction in accrued contingent consideration (.2 ) (3.4 ) — Tax-exempt losses (gains) on corporate owned life insurance policies .1 (.6 ) (1.4 ) Other, net (.4 ) — (.5 ) Effective tax rate 31.7 % 30.1 % 31.1 % The Company’s effective tax rate in fiscal 2015 increased to 31.7% from 30.1% in fiscal 2014. The increase is principally due to the impact of a larger nontaxable reduction in accrued contingent consideration during fiscal 2014 associated with a prior year acquisition acquired by means of a stock transaction and the impact of higher tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the LCP in fiscal 2014 compared to fiscal 2015. These increases were partially offset by 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, the benefit of recognizing additional foreign tax credits related to R&D activities at one of the Company's foreign subsidiaries inclusive of amendments to prior year tax returns, and the Company's decision to not make a provision for U.S. income taxes on the undistributed earnings of a fiscal 2015 foreign acquisition. The Company's effective tax rate in fiscal 2014 decreased to 30.1% from 31.1% in fiscal 2013. The decrease is principally attributed to the impact of a nontaxable reduction in accrued contingent consideration during fiscal 2014 associated with a fiscal 2013 acquisition acquired by means of a stock transaction. This decrease was partially offset by lower U.S. federal R&D tax credits recognized in fiscal 2014 due to the expiration of the U.S. federal R&D tax credit in December 2013 compared to fiscal 2013 during which the retroactive extension of the U.S. federal R&D tax credit in the first quarter resulted in twenty-two months of U.S. federal R&D tax credits recognized that year. Additionally, the decrease in the effective tax rate was partially offset by the impact of higher tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the LCP in fiscal 2013 compared to fiscal 2014. The Company files income tax returns in the U.S. federal jurisdiction and in multiple state jurisdictions. The Company is also subject to income taxes in certain jurisdictions outside the U.S., none of which are individually material to the accompanying consolidated financial statements. Generally, the Company is no longer subject to U.S. federal, state or foreign examinations by tax authorities for years prior to fiscal 2011. 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 consolidated financial statements. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company believes that it is more likely than not that it will generate sufficient future taxable income to utilize all of its deferred tax assets and has therefore not recorded a valuation allowance on any such asset. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of October 31, 2015 2014 Deferred tax assets: Deferred compensation liability $31,520 $27,568 Inventories 24,912 23,099 Share-based compensation 9,333 7,427 Bonus accrual 3,791 4,031 Deferred revenue 2,005 2,660 Vacation accrual 1,836 1,724 R&D related carryforward 1,826 2,068 Customer rebates accrual 1,236 1,635 Other 7,450 8,258 Total deferred tax assets 83,909 78,470 Deferred tax liabilities: Goodwill and other intangible assets (148,448 ) (144,381 ) Property, plant and equipment (7,667 ) (9,090 ) Other (2,005 ) (880 ) Total deferred tax liabilities (158,120 ) (154,351 ) Net deferred tax liability ($74,211 ) ($75,881 ) The net deferred tax liability is classified in the Company’s Consolidated Balance Sheets as follows (in thousands): As of October 31, 2015 2014 Current asset $35,530 $34,485 Long-term asset 847 1,063 Long-term liability (110,588 ) (111,429 ) Net deferred tax liability ($74,211 ) ($75,881 ) The Company's deferred income tax benefit was $7.1 million , $16.7 million and $5.8 million in fiscal 2015, 2014 and 2013, respectively. The larger deferred income tax benefit recognized in fiscal 2014 is principally due to the impact of impairment losses recorded in fiscal 2014 related to certain intangible assets recognized in connection with a fiscal 2013 acquisition, the long-term deferred revenue recognized in fiscal 2014, and the impact from the timing of the extension of the bonus depreciation allowance on new property, plant and equipment that resulted in only two months of such allowance recognized in fiscal 2014. As of October 31, 2015 and 2014, the Company’s liability for gross unrecognized tax benefits related to uncertain tax positions was $.8 million and $.9 million , respectively, of which $.5 million and $.6 million , respectively, 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 during the fiscal years ended October 31, 2015 and 2014 is as follows (in thousands): Year ended October 31, 2015 2014 Balances as of beginning of year $879 $1,072 Increases related to current year tax positions 279 138 Increases related to prior year tax positions 30 10 Decreases related to prior year tax positions (80 ) — Settlements (118 ) (22 ) Lapse of statutes of limitations (203 ) (319 ) Balances as of end of year $787 $879 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Oct. 31, 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 October 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate owned life insurance $— $73,238 $— $73,238 Money market funds 3,832 — — 3,832 Equity securities 1,845 — — 1,845 Mutual funds 1,665 — — 1,665 Other 946 50 — 996 Total assets $8,288 $73,288 $— $81,576 Liabilities: Contingent consideration $— $— $21,405 $21,405 As of October 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate owned life insurance $— $61,958 $— $61,958 Money market funds 3,974 — — 3,974 Equity securities 2,225 — — 2,225 Mutual funds 1,903 — — 1,903 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 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 Consolidated Balance Sheets. As part of the agreement to acquire a subsidiary by the FSG in 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 October 31, 2015 exchange rate, should the acquired entity meet certain earnings objectives during each of the first four years following the acquisition. The estimated fair value of the contingent consideration as of the acquisition date was €18.1 million , or approximately $21.3 million . As of October 31, 2015, the estimated fair value of the contingent consideration was €19.5 million , or $21.4 million . The $.1 million increase was recorded as an addition to SG&A expenses in the Company's Consolidated Statement of Operations and is principally attributed to revised earnings estimates that reflect more favorable projected market conditions during the earnout period, nearly offset by the strengthening of the U.S. dollar relative to the Euro. As part of the agreement to acquire a subsidiary by the ETG in fiscal 2013, the Company may have been obligated to pay contingent consideration of up to $20.0 million had the acquired entity met certain earnings objectives during the last three months of the calendar year of acquisition and 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. In December 2013, the acquired entity incurred unanticipated costs associated with certain contracts for which revenue is recognized on the percentage-of-completion method and as a result, did not meet its calendar 2013 related earnings objectives. Accordingly, the $7.0 million estimated fair value of the contingent consideration accrued as of October 31, 2013 was recorded as a reduction to SG&A expenses in the Company's Consolidated Statement of Operations in the first quarter of fiscal 2014. During fiscal 2014, management revised its earnings estimates due to less favorable projected market conditions during the earnout period for certain of the space products the subsidiary produces. Accordingly, $12.5 million of the $13.7 million estimated fair value of the contingent consideration accrued as of October 31, 2013 was recorded as a reduction to SG&A expenses in fiscal 2014. The remaining $1.2 million accrued contingent consideration as of October 31, 2014 was recorded as a reduction of SG&A expenses in fiscal 2015. Additionally, the aforementioned market conditions resulted in the Company concluding it had a triggering event requiring assessment of impairment of the subsidiary's intangible assets during fiscal 2014. Please see below for further information pertaining to the measurement and recognition of impairment losses associated with the intangible assets of this subsidiary. As part of the agreement to acquire a subsidiary by the ETG in fiscal 2012, the Company may be obligated to pay contingent consideration of up to $7.7 million in aggregate should the acquired entity meet certain earnings objectives during each of the next two years following the third anniversary date of the acquisition. During fiscal 2014, management revised its earnings estimates due to less favorable projected market conditions during the earnout period. Accordingly, the $8.6 million estimated fair value of the contingent consideration accrued as of October 31, 2013 was recorded as a reduction to SG&A expenses in the Company's Consolidated Statement of Operations in fiscal 2014. Additionally, the aforementioned conditions resulted in the Company concluding it had a triggering event requiring assessment of impairment of the subsidiary's intangible assets during fiscal 2014. Please see below for further information pertaining to the measurement and recognition of impairment losses associated with the intangible assets of this subsidiary. As of October 31, 2015, the Company did not have any contingent consideration accrued pertaining to this acquisition. 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 consolidated statements of operations. The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of October 31, 2015 are as follows: Fiscal 2015 Acquisition Compound annual revenue growth rate range 2 % - 16% Weighted average discount rate 2.0% Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the fiscal years ended October 31, 2015 and 2014 are as follows (in thousands): Liabilities Balance as of October 31, 2013 $29,310 Decrease in accrued contingent consideration (28,126 ) Balance as of October 31, 2014 1,184 Contingent consideration related to acquisition 21,355 Increase in accrued contingent consideration, net 293 Foreign currency transaction adjustments (1,427 ) Balance as of October 31, 2015 $21,405 Included in the accompanying Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $6,686 Other long-term liabilities 14,719 $21,405 The Company did not have any transfers between Level 1 and Level 2 fair value measurements during fiscal 2015 and 2014. 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 October 31, 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. During fiscal 2014, certain customer relationships, non-amortizing trade names and intellectual property within the ETG were measured at fair value on a nonrecurring basis, resulting in the recognition of impairment losses aggregating $15.0 million . The fair values of the Company’s nonfinancial assets and liabilities that were measured at fair value on a nonrecurring basis, which are classified within Level 3, and the related impairment losses recognized in fiscal 2014 are as follows (in thousands): Carrying Amount Impairment Loss Fair Value (Level 3) Assets: Customer relationships $19,366 ($11,200 ) $8,166 Non-amortizing trade names 10,000 (1,900 ) 8,100 Intellectual property 2,302 (1,900 ) 402 Impairment of intangible assets ($15,000 ) The fair values of such customer relationships, non-amortizing trade names and intellectual property were determined using variations of the income approach which apply an asset-specific discount rate to a forecast of asset-specific cash flows. These methods utilize certain significant unobservable inputs categorized as Level 3. The Level 3 inputs used to derive the estimated fair values of the customer relationships, non-amortizing trade names and intellectual property during fiscal 2014 are as follows: Customer Relationships Non-Amortizing Trade Names Intellectual Property Valuation method Excess Earnings Relief from Royalty Relief from Royalty Discount rate 15.0% - 19.0% 14.0% - 18.0% 19.0% Annual attrition rate 25.0% - 30.0% N/A 20.0% Royalty rate N/A 1.0% - 2.5% 6.0% |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Oct. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | SHAREHOLDERS’ EQUITY Common Stock and Class A Common Stock The Company has two classes of common stock that are virtually identical in all economic respects except voting rights. Each share of Common Stock is entitled to one vote per share. Each share of Class A Common Stock is entitled to a 1/10 vote per share. Holders of the Company’s common stock are entitled to receive when, as and if declared by the Board of Directors, dividends and other distributions payable in cash, property, stock or otherwise. In the event of liquidation, after payment of debts and other liabilities of the Company, the remaining assets of the Company will be distributable ratably among the holders of both classes of common stock. Share Repurchases In 1990, the Company's Board of Directors authorized a share repurchase program, which allows the Company to repurchase shares of Company common stock in the open market or in privately negotiated transactions at the Company's discretion, subject to certain restrictions included in the Company's revolving credit agreement. As of October 31, 2015, the maximum number of shares that may yet be purchased under this program was 2,501,813 of either or both of the Company's Class A Common Stock and the Company's Common Stock. The repurchase program does not have a fixed termination date. During fiscal 2015, 2014 and 2013, the Company did not repurchase any shares of Company common stock under this program. During fiscal 2014, the Company repurchased an aggregate 6,833 shares of Class A Common Stock at a total cost of approximately $.3 million . The shares purchased represent shares tendered as payment of employee withholding taxes due upon the issuance of a share-based award. During fiscal 2013, the Company repurchased an aggregate 36,354 shares of Common Stock at a total cost of $1.3 million and an aggregate 39,965 shares of Class A Common Stock at a total cost of $1.1 million . The shares purchased in fiscal 2013 occurred as settlement for employee taxes due pertaining to exercises of non-qualified stock options. The shares purchased in fiscal 2014 and 2013 did not impact the number of shares authorized for future purchase under the Company’s share repurchase program and are reflected as redemptions of common stock related to share-based compensation in the Company's Consolidated Statements of Shareholders' Equity and the Company's Consolidated Statements of Cash Flows. Special and Extraordinary Cash Dividends In January 2014 , the Company paid a special and extraordinary $.35 per share cash dividend on both classes of HEICO's common stock as well as its regular semi-annual $.06 per share cash dividend. In December 2012 , the Company paid a special and extraordinary $1.712 per share cash dividend on both classes of HEICO's common stock as well as a regular semi-annual $.048 per share cash dividend that was accelerated from January 2013. The dividends, which aggregated $27.2 million in fiscal 2014 and $116.6 million in fiscal 2013, were principally funded from borrowings under the Company's revolving credit facility. Noncontrolling Interests Consistent with the Company's past practice of increasing its ownership in certain non-wholly-owned subsidiaries, on February 14, 2014 , HEICO Corporation acquired the 20% noncontrolling interest held by LHT in four of the Company's existing subsidiaries principally operating in the specialty products and distribution businesses within HEICO Aerospace (the “Transaction”). Pursuant to the Transaction, HEICO Aerospace paid dividends proportional to the ownership ( 80% / 20% ) to HEICO and LHT, and HEICO transferred the businesses to HEICO Flight Support Corp. HEICO did not record any gain or loss in connection with the Transaction. LHT’s dividend of $67.4 million was paid in cash, principally using proceeds from the Company’s revolving credit facility. LHT remains a 20% owner in HEICO Aerospace, a leading producer of PMA parts and component repair and overhaul services. During fiscal 2014, the Put Right held by the noncontrolling interest holders in one of the Company's subsidiaries expired, resulting in a reclassification of the Redemption Amount from redeemable noncontrolling interests (temporary equity) to noncontrolling interests (permanent equity). See Note 11, Redeemable Noncontrolling Interests, for additional information. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | SHARE-BASED COMPENSATION The Company currently maintains one share-based compensation plan, the HEICO Corporation 2012 Incentive Compensation Plan (“2012 Plan”), under which it may grant various forms of share-based compensation awards including, but not limited to, stock options, restricted stock, restricted stock awards and stock appreciation rights. The 2012 Plan became effective in fiscal 2012, the same time the Company's 2002 Stock Option Plan (“2002 Plan”) expired. Also, in fiscal 2012, the Company made a decision to no longer issue options under its Non-Qualified Stock Option Plan (“NQSOP”). Options outstanding under the 2002 Plan and NQSOP may be exercised pursuant to their terms. The total number of shares approved by the shareholders of the Company for the 2012 Plan is 2.7 million plus any options outstanding under the 2002 Plan and NQSOP as of the 2012 Plan's effective date that are subsequently forfeited or expire. A total of approximately 4.6 million shares of the Company's common stock are reserved for issuance to employees, directors, officers and consultants as of October 31, 2015, including 3.3 million shares currently under option and 1.3 million shares available for future grants. Stock options granted pursuant to the 2012 Plan may be designated as Common Stock and/or Class A Common Stock in such proportions as shall be determined by the Board of Directors or the Stock Option Plan Committee at its sole discretion. The exercise price per share of a stock option granted under the 2012 Plan may not be less than the fair market value of the designated class of Company common stock as of the date of grant and stock option grants vest ratably over a period specified as of the date of grant (generally five years) and expire ten years after the date of grant. Options issued under the 2012 Plan may be designated as incentive stock options or non-qualified stock options, but only employees are eligible to receive incentive stock options. The 2012 Plan will terminate no later than the tenth anniversary of its effective date. Information concerning share-based activity for each of the last three fiscal years ended October 31 is as follows (in thousands, except per share data): Shares Under Option Shares Available For Grant Shares Weighted Average Exercise Price Outstanding as of October 31, 2012 2,389 2,899 $16.90 Granted (549 ) 549 $35.74 Exercised — (306 ) $3.78 Outstanding as of October 31, 2013 1,840 3,142 $21.48 Granted (161 ) 161 $43.37 Stock award issuance (62 ) — $— Exercised — (39 ) $18.36 Outstanding as of October 31, 2014 1,617 3,264 $22.59 Granted (291 ) 291 $51.85 Exercised — (220 ) $16.85 Outstanding as of October 31, 2015 1,326 3,335 $25.52 Information concerning stock options outstanding (all of which are vested or expected to vest) and stock options exercisable by class of common stock as of October 31, 2015 is as follows (in thousands, except per share and contractual life data): Options Outstanding Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Common Stock 1,579 $23.54 4.9 $43,230 Class A Common Stock 1,756 $27.30 6.3 29,967 3,335 $25.52 5.6 $73,197 Options Exercisable Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Common Stock 1,342 $19.60 4.3 $41,376 Class A Common Stock 908 $19.91 5.0 21,644 2,250 $19.73 4.6 $63,020 Information concerning stock options exercised is as follows (in thousands): Year ended October 31, 2015 2014 2013 Cash proceeds from stock option exercises $3,673 $708 $463 Tax benefit realized from stock option exercises 1,402 93 5,191 Intrinsic value of stock option exercises 6,958 929 8,033 Net income attributable to HEICO for the fiscal years ended October 31, 2015, 2014 and 2013 includes compensation expense of $5.8 million , $6.2 million and $5.1 million , respectively, and an income tax benefit of $2.2 million , $2.4 million and $2.0 million , respectively, related to the Company’s stock options. Substantially all of the stock option compensation expense was recorded as a component of SG&A expenses in the Company’s Consolidated Statements of Operations. As of October 31, 2015, there was $15.2 million of pre-tax unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted average period of approximately 3.4 years. The total fair value of stock options that vested in fiscal 2015, 2014 and 2013 was $5.5 million , $5.9 million and $4.5 million , respectively. If there were a change in control of the Company, all of the unvested options outstanding as of October 31, 2015 would become immediately exercisable. For the fiscal years ended October 31, 2015, 2014 and 2013, the excess tax benefit resulting from tax deductions in excess of the cumulative compensation cost recognized for stock options exercised was $1.4 million , $.1 million and $5.1 million , respectively, and is presented as a financing activity in the Company’s Consolidated Statements of Cash Flows. The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model based on the following weighted average assumptions for the fiscal years ended October 31, 2015, 2014 and 2013: 2015 2014 2013 Common Stock Class A Common Stock Class A Common Stock Common Stock Class A Common Stock Expected stock price volatility 39.96 % 36.51 % 38.04 % 39.94 % 38.40 % Risk-free interest rate 2.30 % 2.12 % 2.06 % 2.02 % 1.85 % Dividend yield .24 % .32 % .38 % .24 % .33 % Forfeiture rate .00 % .00 % .00 % .00 % .00 % Expected option life (years) 9 7 7 9 7 Weighted average fair value $28.46 $19.59 $17.23 $20.24 $14.29 In fiscal 2013, the Company granted restricted shares in the common stock of one of its subsidiaries representing approximately 1% of the equity of the subsidiary. The shares cliff vest in fiscal 2018. Net income attributable to HEICO includes compensation expense of $.2 million , $.2 million , and less than $.1 million in fiscal 2015, 2014 and 2013 related to unvested restricted shares, respectively. As of October 31, 2015, there was $.5 million of pre-tax unrecognized compensation expense related to the unvested restricted shares, which is expected to be recognized over the next 2.2 years. In fiscal 2014, the Company issued 24,982 shares of Class A Common Stock in lieu of cash to satisfy an employee bonus award, which was accrued in fiscal 2013. Pursuant to the terms of the 2012 Plan, this stock award reduced the share reserve for issuance under the 2012 Plan by 62,455 shares. |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended |
Oct. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | EMPLOYEE RETIREMENT PLANS The HEICO Savings and Investment Plan (the “401(k) Plan”) is a qualified defined contribution retirement plan under which eligible employees of the Company and its participating subsidiaries may make Elective Deferral Contributions up to the limitations set forth in Section 402(g) of the Internal Revenue Code. The Company generally makes a 25% or 50% Employer Matching Contribution, as determined by the Board of Directors, based on a participant’s Elective Deferral Contribution up to 6% of the participant’s Compensation for the Elective Deferral Contribution period. The 401(k) Plan also provides that the Company may make additional Employer Contributions. Employer Contributions may be contributed in the form of the Company’s common stock or cash, as determined by the Company. Employer Contributions awarded in the form of Company common stock are valued based on the fair value of the underlying shares as of the effective date of contribution. Employer Contributions may be diversified by a participant into any of the participant-directed investment options of the 401(k) Plan; however, Employee Contributions may not be invested in Company common stock. Participants receive 100% vesting of Employee Contributions and cash dividends received on Company common stock. Vesting in Employer Contributions is based on a participant’s number of years of vesting service. Employer Contributions to the 401(k) Plan charged to income in fiscal 2015, 2014 and 2013 totaled $6.1 million , $6.3 million and $3.2 million , respectively, and were made through the issuance of new shares of Company common stock and the use of forfeited shares within the 401(k) Plan. Information concerning share-based activity pertaining to the 401(k) Plan for each of the last three fiscal years ended October 31 is as follows (in thousands): Common Stock Class A Common Stock Shares available for issuance as of October 31, 2012 170 170 Issuance of common stock to 401(k) Plan (45 ) (45 ) Shares available for issuance as of October 31, 2013 125 125 Issuance of common stock to 401(k) Plan (57 ) (57 ) Shares available for issuance as of October 31, 2014 68 68 Issuance of common stock to 401(k) Plan (54 ) (54 ) Shares available for issuance as of October 31, 2015 14 14 As previously mentioned in Note 1, Summary of Significant Accounting Policies, the Company acquired a frozen qualified defined benefit pension plan in connection with a fiscal 2013 acquisition. Changes in the Plan's projected benefit obligation and plan assets for the fiscal years ended October 31, 2015 and 2014 are as follows (in thousands): Change in projected benefit obligation: Projected benefit obligation as of October 31, 2013 $13,213 Actuarial loss 930 Interest cost 610 Benefits paid (938 ) Projected benefit obligation as of October 31, 2014 13,815 Actuarial loss 716 Interest cost 561 Benefits paid (924 ) Projected benefit obligation as of October 31, 2015 $14,168 Change in plan assets: Fair value of plan assets as of October 31, 2013 $11,397 Actual return on plan assets 764 Employer contributions 136 Benefits paid (938 ) Fair value of plan assets as of October 31, 2014 11,359 Actual return on plan assets 254 Employer contributions 78 Benefits paid (924 ) Fair value of plan assets as of October 31, 2015 $10,767 Funded status as of October 31, 2014 ($2,456 ) Funded status as of October 31, 2015 ($3,401 ) The $3.4 million and $2.5 million difference between the projected benefit obligation and fair value of plan assets as of October 31, 2015 and October 31, 2014, respectively, are included in other long-term liabilities within the Company's Consolidated Balance Sheets. Additionally, the Plan experienced a $1.2 million and $.9 million unrealized loss during fiscal 2015 and 2014, respectively, that were recognized in other comprehensive income (loss) where they are reported net of ($.4) million and ($.3) million of tax, respectively. As of October 31, 2015, $1.1 million (pre-tax) represents the total unrealized loss in accumulated other comprehensive income (loss) that has yet to be recognized as a component of net periodic pension income (expense). The Company does not expect to recognize any of the amount within accumulated other comprehensive income (loss) as of October 31, 2015 as a component of net periodic pension income (expense) during fiscal 2016. Weighted average assumptions used to determine the projected benefit obligation are as follows: As of October 31, 2015 2014 Discount rate 4.47 % 4.20 % Weighted average assumptions used to determine net pension income are as follows: Year ended October 31, 2015 2014 2013 Discount rate 4.20 % 4.79 % 3.99 % Expected return on plan assets 6.75 % 6.75 % 6.75 % The discount rate used to determine the projected benefit obligation was determined using the results of a bond yield curve model based on a portfolio of high-quality bonds matching expected Plan benefit payments. The expected return on Plan assets was based upon the target asset allocation and investment return estimates for the Plan's equity and fixed income securities. In establishing this assumption, the Company considers many factors including both the historical rate of return and projected inflation-adjusted real rate of return on the Plan's various asset classes and the expected working lifetime for Plan participants. Components of net pension income that were recorded within the Company's Consolidated Statements of Operations are as follows (in thousands): Year ended October 31, 2015 2014 2013 Expected return on plan assets $738 $739 $320 Interest cost 561 610 236 Net pension income $177 $129 $84 The Company anticipates making contributions of $.4 million to the Plan during fiscal 2016. Estimated future benefit payments to be made during each of the next five fiscal years and in aggregate during the succeeding five fiscal years are as follows (in thousands): Year ending October 31, 2016 $914 2017 907 2018 883 2019 915 2020 918 2021-2025 4,436 The fair value of the Plan's assets are set forth by level within the fair value hierarchy in the following tables (in thousands): As of October 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed income securities $5,372 $— $— $5,372 Equity securities 5,280 — — 5,280 Money market funds and cash 115 — — 115 $10,767 $— $— $10,767 As of October 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed income securities $5,563 $— $— $5,563 Equity securities 5,678 — — 5,678 Money market funds and cash 118 — — 118 $11,359 $— $— $11,359 Fixed income securities consist of investments in mutual funds. Equity securities consist of investments in common stocks, mutual funds and exchange traded funds. The Plan's actual and targeted asset allocations by investment category are as follows: As of October 31, 2015 2014 Actual Target Actual Target Fixed income securities 50 % 50 % 49 % 50 % Equity securities 49 % 50 % 50 % 50 % Money market funds and cash 1 % — % 1 % — % 100 % 100 % 100 % 100 % |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Oct. 31, 2015 | |
Temporary Equity Redeemable Noncontrolling Interests [Abstract] | |
Temporary Equity Redeemable Noncontrolling Interests [Text Block] | REDEEMABLE NONCONTROLLING INTERESTS The holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2025. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the “Redemption Amount”) be at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. As of October 31, 2015, management’s estimate of the aggregate Redemption Amount of all Put Rights that the Company would be required to pay is approximately $91.3 million . The actual Redemption Amount will likely be different. The aggregate Redemption Amount of all Put Rights was determined using probability adjusted internal estimates of future earnings of the Company’s subsidiaries with Put Rights while considering the earliest exercise date, the measurement period and any applicable fair value adjustments. The portion of the estimated Redemption Amount as of October 31, 2015 redeemable at fair value is approximately $76.9 million and the portion redeemable based solely on a multiple of future earnings is approximately $14.4 million . A summary of the Put Rights associated with the redeemable noncontrolling interests in certain of the Company’s subsidiaries is as follows as of October 31, 2015: Subsidiary Operating Company Earliest Purchase 2005 ETG 95.9% 2016 (1) 4 (2) 2006 FSG 80.1% 2016 (1) 4 2008 FSG 82.3% 2016 5 2009 ETG 82.5% 2016 (1) 1 2011 FSG 80.1% 2016 (1) 2 2012 ETG 78.0% 2017 2 2012 FSG 84.0% 2018 4 2012 FSG 80.1% 2019 4 2015 FSG 80.0% 2019 4 2015 FSG 80.1% 2020 4 2015 FSG 80.1% 2022 4 2015 ETG 80.1% 2020 2 (1) Currently puttable (2) A portion is to be purchased in a lump sum The aggregate Redemption Amount of the Put Rights that are currently puttable or becoming puttable during fiscal 2016 is approximately $35.0 million , of which approximately $20.1 million would be payable in fiscal 2016 should all of the eligible associated noncontrolling interest holders elect to exercise their Put Rights during fiscal 2016. As of October 31, 2015, none of the holders of equity interests in any of the above Company subsidiaries has exercised their Put Right to cause the Company to purchase their current equity interest. Additionally, the Company has call rights to purchase the equity interests of the noncontrolling holders over the same period. The Company acquired an 80.1% interest in a subsidiary through the ETG in fiscal 2004. As part of the purchase agreement, the noncontrolling interest holders had the right to cause the Company to purchase their interests over a five-year period. During fiscal 2014, the noncontrolling interest holders' Put Right expired, resulting in a reclassification of the Redemption Amount from redeemable noncontrolling interests (temporary equity) to noncontrolling interests (permanent equity). Additionally, the Company has the right to purchase the noncontrolling interests over a five-year period. Pursuant to the purchase agreement related to the acquisition of a 51% interest in a subsidiary by the FSG in fiscal 2006, the noncontrolling interest holders exercised their option to cause the Company to purchase an aggregate 35.7% interest during fiscal years 2011 and 2012 and the remaining 13.3% interest in fiscal 2013. During fiscal 2014, the Company paid a purchase price adjustment for the portion of the redeemable noncontrolling interests acquired in fiscal 2013 that was based on the acquired entity's actual fiscal 2013 earnings. The purchase price of the redeemable noncontrolling interests acquired in fiscal 2014 was paid using cash provided by operating activities. The purchase price of the redeemable noncontrolling interests acquired in fiscal 2013 was paid using proceeds from the Company's revolving credit facility. The aggregate cost of the redeemable noncontrolling interests acquired in fiscal 2014 and 2013 was $1.2 million and $16.6 million , respectively. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 12 Months Ended |
Oct. 31, 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): Year ended October 31, 2015 2014 2013 Numerator: Net income attributable to HEICO $133,364 $121,293 $102,396 Denominator: Weighted average common shares outstanding - basic 66,740 66,463 66,298 Effect of dilutive stock options 1,071 990 684 Weighted average common shares outstanding - diluted 67,811 67,453 66,982 Net income per share attributable to HEICO shareholders: Basic $2.00 $1.82 $1.54 Diluted $1.97 $1.80 $1.53 Anti-dilutive stock options excluded 412 430 754 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales: 2015 $268,185 $291,421 $300,370 $328,672 2014 $266,826 $282,232 $291,030 $292,223 Gross profit: 2015 $93,797 $105,494 $108,092 $126,796 2014 $92,117 $99,922 $103,327 $102,946 Net income from consolidated operations: 2015 $32,091 $38,504 $38,938 $44,031 2014 $32,562 $32,780 $37,352 $36,078 Net income attributable to HEICO: 2015 $27,640 $33,105 $34,369 $38,250 2014 $27,455 $28,367 $33,366 $32,105 Net income per share attributable to HEICO: Basic: 2015 $.42 $.50 $.51 $.57 2014 $.41 $.43 $.50 $.48 Diluted: 2015 $.41 $.49 $.51 $.56 2014 $.41 $.42 $.49 $.48 During the first quarter of fiscal 2015, the Company recognized an income tax credit for qualified R&D activities for the last ten months of fiscal 2014 upon the retroactive extension of the U.S. federal R&D tax credit in December 2014 to cover calendar year 2014. The tax credit, net of expenses, increased net income attributable to HEICO by $1.8 million , or $.03 per basic and diluted share. During the fourth quarter of fiscal 2014, the Company recorded a reduction in accrued contingent consideration related to a fiscal 2012 acquisition that was partially offset by impairment losses related to the write-down of certain intangible assets at the acquired business resulting in an increase in net income attributable to HEICO of approximately $1.7 million , or $.03 per basic and diluted share. During the third quarter of fiscal 2014, the Company recorded a reduction in accrued contingent consideration related to a fiscal 2013 acquisition that was partially offset by impairment losses related to the write-down of certain intangible assets and lower than expected operating income at the acquired business resulting in an increase in net income attributable to HEICO of approximately $3.4 million , or $.05 per basic and diluted share. During the first quarter of fiscal 2014, the Company recorded a reduction in accrued contingent consideration related to a fiscal 2013 acquisition that was partially offset by lower than expected operating income at the acquired business resulting in an increase in net income attributable to HEICO of approximately $2.6 million , or $.04 per basic and diluted share. Due to changes in the average number of common shares outstanding, net income per share attributable to HEICO for the full fiscal year may not equal the sum of the four individual quarters. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HEICO Flight Support Corp. and their collective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries. The Company's operating segment reporting structure is consistent with how management reviews the business, makes investing and resource decisions and assesses operating performance. Additionally, characteristics such as similarity of products, customers, economic characteristics and various other factors are considered when identifying the Company's operating segments. The FSG designs, manufactures, repairs, overhauls and distributes jet engine and aircraft component replacement parts. The parts and services are approved by the FAA. The FSG also manufactures and sells specialty parts as a subcontractor for aerospace and industrial original equipment manufacturers and the U.S. government. Additionally, the FSG is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to foreign military organizations allied with the U.S. and is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. The ETG designs and manufactures electronic, microwave, and electro-optical equipment and components, three-dimensional microelectronic and stacked memory products, high-speed interface products, high voltage interconnection devices, high voltage advanced power electronics products, power conversion products, underwater locator beacons, electromagnetic interference shielding, traveling wave tube amplifiers, harsh environment electronic connectors and other interconnect products, communications and electronic intercept receivers and tuners, and RF and microwave amplifiers, transmitters, receivers and satellite microwave modules, and integrated subsystems primarily for the aviation, defense, space, medical, telecommunications and electronics industries. The Company’s reportable operating segments offer distinctive products and services that are marketed through different channels. They are managed separately because of their unique technology and service requirements. Segment Profit or Loss The accounting policies of the Company’s operating segments are the same as those described in Note 1, Summary of Significant Accounting Policies. Management evaluates segment performance based on segment operating income. Information on the Company’s two operating segments, the FSG and the ETG, for each of the last three fiscal years ended October 31 is as follows (in thousands): Segment Other, Primarily Corporate and Intersegment Consolidated Totals FSG ETG Year ended October 31, 2015: Net sales $809,700 $390,982 ($12,034 ) $1,188,648 Depreciation 10,859 6,803 168 17,830 Amortization 13,470 15,945 662 30,077 Operating income 149,798 98,833 (18,975 ) 229,656 Capital expenditures 11,737 6,201 311 18,249 Total assets 868,218 746,018 122,151 1,736,387 Year ended October 31, 2014: Net sales $762,801 $379,404 ($9,894 ) $1,132,311 Depreciation 9,809 7,113 146 17,068 Amortization 10,034 19,993 662 30,689 Operating income 136,480 88,914 (22,006 ) 203,388 Capital expenditures 9,437 6,327 646 16,410 Total assets 676,824 703,144 109,246 1,489,214 Year ended October 31, 2013: Net sales $665,148 $350,033 ($6,424 ) $1,008,757 Depreciation 7,997 5,242 133 13,372 Amortization 6,617 16,150 651 23,418 Operating income 122,058 83,063 (21,531 ) 183,590 Capital expenditures 10,190 7,748 390 18,328 Total assets 679,839 759,807 93,369 1,533,015 Major Customer and Geographic Information The Company markets its products and services in approximately 100 countries. The following table summarizes the Company’s net sales to customers located in the United States and to those in other countries for each of the last three fiscal years ended October 31 (in thousands). Net sales are attributed to countries based on the location of the customer. Net sales to any one customer or originating from any one country did not account for 10% or more of the Company’s consolidated net sales during any of the last three fiscal years. The following table also summarizes the Company’s long-lived assets held within and outside of the United States as of October 31 of the last three fiscal years (in thousands). Long-lived assets consist of net property, plant and equipment. 2015 2014 2013 Net Sales: United States of America $785,567 $754,616 $654,096 Other countries 403,081 377,695 354,661 Total net sales $1,188,648 $1,132,311 $1,008,757 Long-lived assets: United States of America $85,253 $84,116 $87,247 Other countries 20,417 9,749 10,490 Total long-lived assets $105,670 $93,865 $97,737 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases certain property and equipment, including manufacturing facilities and office equipment under operating leases. Some of these leases provide the Company with the option after the initial lease term either to purchase the property at the then fair market value or renew the lease at the then fair rental value. Generally, management expects that leases will be renewed or replaced by other leases in the normal course of business. Future minimum payments under non-cancelable operating leases for the next five fiscal years and thereafter are estimated to be as follows (in thousands): Year ending October 31, 2016 $10,526 2017 8,202 2018 4,479 2019 2,509 2020 2,063 Thereafter 8,943 Total minimum lease commitments $36,722 Total rent expense charged to operations for operating leases in fiscal 2015, 2014 and 2013 amounted to $11.9 million , $11.2 million and $9.8 million , respectively. Guarantees As of October 31, 2015, the Company has arranged for standby letters of credit aggregating $2.7 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 insurance company used by the 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 in fiscal 2015 and 2014 are as follows (in thousands): Year ended October 31, 2015 2014 Balances as of beginning of year $4,079 $3,233 Accruals for warranties 1,215 3,005 Acquired warranty liabilities 35 — Warranty claims settled (2,126 ) (2,159 ) Balances as of end of year $3,203 $4,079 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. |
SUPPLEMENTAL DISCLOSURES OF CAS
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | 12 Months Ended |
Oct. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION The following table presents supplemental disclosures of cash flow information and non-cash investing activities for fiscal 2015, 2014 and 2013 (in thousands): Year ended October 31, 2015 2014 2013 Cash paid for income taxes $76,021 $72,723 $62,631 Cash received from income tax refunds (1,211 ) (395 ) (33 ) Cash paid for interest 4,598 5,550 3,514 Contingent consideration 21,355 — 20,654 Additional purchase consideration (204 ) (56 ) 2,068 Property, plant and equipment acquired through capital lease obligations 59 131 — |
SUBSEQUENT EVENT SUBSEQUENT EVE
SUBSEQUENT EVENT SUBSEQUENT EVENT (Notes) | 12 Months Ended |
Oct. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT In December 2015 , the Company, through a subsidiary of HEICO Electronic, acquired all of the assets and assumed certain liabilities of a company that designs and manufactures underwater locator beacons used to locate aircraft cockpit voice recorders, flight data recorders, marine ship voyage recorders and other devices which have been submerged under water. The purchase price of this acquisition was paid in cash using cash provided by operating activities and the total consideration for the acquisition is not material or significant to the Company’s consolidated financial statements. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Oct. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Year ended October 31, 2015 2014 2013 Allowance for doubtful accounts (in thousands): Allowance as of beginning of year $2,143 $3,096 $2,334 Additions (deductions) charged (credited) to costs and expenses 248 (232 ) 586 Additions (deductions) charged to other accounts (a) 55 (31 ) 303 Deductions (b) (408 ) (690 ) (127 ) Allowance as of end of year $2,038 $2,143 $3,096 (a) Principally additions from acquisitions and foreign currency translation adjustments. (b) Principally write-offs of uncollectible accounts receivable, net of recoveries. Year ended October 31, 2015 2014 2013 Inventory valuation reserves (in thousands): Reserves as of beginning of year $60,608 $54,577 $46,861 Additions charged to costs and expenses 7,779 9,398 8,032 Additions (deductions) charged to other accounts (a) 4,598 (322 ) 3,148 Deductions (b) (3,331 ) (3,045 ) (3,464 ) Reserves as of end of year $69,654 $60,608 $54,577 (a) Principally additions from acquisitions and foreign currency translation adjustments (b) Principally write-offs of slow-moving, obsolete or damaged inventory. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2015 | |
Summary Of Significant Accounting Policies (Policies) [Abstract] | |
Nature Of Business, Policy [Policy Text Block] | Nature of Business HEICO Corporation, through its principal subsidiaries consisting of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”), HEICO Flight Support Corp. and HEICO Electronic Technologies Corp. (“HEICO Electronic”) and their respective subsidiaries (collectively, the “Company”), is principally engaged in the design, manufacture and sale of aerospace, defense and electronic related products and services throughout the United States ("U.S.") and internationally. The Company’s customer base is primarily the aviation, defense, space, medical, telecommunications and electronics industries. |
Basis Of Presentation, Policy [Policy Text Block] | Basis of Presentation The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries. The consolidated financial statements include the financial accounts of HEICO Corporation and its subsidiaries, all of which are wholly owned except for HEICO Aerospace, which is 20% owned by Lufthansa Technik AG ("LHT"), the technical services subsidiary of Lufthansa German Airlines. In addition, HEICO Aerospace consolidates two subsidiaries which are 80.1% and 82.3% owned, respectively, and a joint venture, which is 84% owned. Also, HEICO Flight Support Corp. consolidates two subsidiaries which are 80.0% and 84% owned, respectively, and four subsidiaries that are each 80.1% owned. Furthermore, HEICO Electronic consolidates four subsidiaries, which are 80.1% , 80.1% , 82.5% , and 95.9% owned, respectively, and a wholly owned subsidiary of HEICO Electronic consolidates a subsidiary which is 78% owned. See Note 11, Redeemable Noncontrolling Interests. All intercompany balances and transactions are eliminated. |
Use of Estimates and Assumptions, Policy [Policy Text Block] | Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments such as U.S. Treasury bills and money market funds with an original maturity of three months or less at the time of purchase to be cash equivalents. |
Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable consist of amounts billed and currently due from customers and unbilled costs and estimated earnings related to revenue from certain fixed price contracts recognized on the percentage-of-completion method that have been recognized for accounting purposes, but not yet billed to customers. The valuation of accounts receivable requires that the Company set up an allowance for estimated uncollectible accounts and record a corresponding charge to bad debt expense. The Company estimates uncollectible receivables based on such factors as its prior experience, its appraisal of a customer’s ability to pay, age of receivables outstanding and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries. |
Concentrations Of Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade accounts receivable. The Company places its temporary cash investments with high credit quality financial institutions and limits the amount of credit exposure to any one financial institution. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographical regions. The Company performs ongoing credit evaluations of its customers, but does not generally require collateral to support customer receivables. |
Inventory, Policy [Policy Text Block] | Inventory Inventory is stated at the lower of cost or market, with cost being determined on the first-in, first-out or the average cost basis. Losses, if any, are recognized fully in the period when identified. The Company periodically evaluates the carrying value of inventory, giving consideration to factors such as its physical condition, sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving, obsolete or damaged inventory. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In accordance with industry practice, all inventories are classified as a current asset including portions with long production cycles, some of which may not be realized within one year. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization is generally provided on the straight-line method over the estimated useful lives of the various assets. The Company’s property, plant and equipment is depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Leasehold improvements 2 to 20 years Machinery and equipment 3 to 10 years Tooling 2 to 5 years The costs of major additions and improvements are capitalized. Leasehold improvements are amortized over the shorter of the leasehold improvement’s useful life or the lease term. Repairs and maintenance costs are expensed as incurred. Upon an asset's disposition, its cost and related accumulated depreciation are removed from the financial accounts and any resulting gain or loss is reflected within earnings. |
Capital Leases, Policy [Policy Text Block] | Capital Leases Assets acquired under capital leases are recorded at the lower of the asset's fair value or the present value of the future minimum lease payments, excluding any portion of the lease payments representing executory costs. The discount rate used in determining the present value of the minimum lease payments is the lower of the rate implicit in the lease or the Company's incremental borrowing rate. Assets under capital leases are included in property, plant and equipment and are depreciated over the shorter of the lease term or the useful life of the leased asset. Lease payments under capital leases are recognized as a reduction of the capital lease obligation and as interest expense. |
Business Combinations, Policy [Policy Text Block] | Business Combinations The Company allocates the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values, with any excess recorded as goodwill. The operating results of acquired businesses are included in the Company’s results of operations beginning as of their effective acquisition dates. Acquisition costs are generally expensed as incurred and were not material in fiscal 2015, 2014 or 2013. For contingent consideration arrangements, a liability is recognized at fair value as of the acquisition date with subsequent fair value adjustments recorded in operations. Information regarding additional contingent purchase consideration may be found in Note 2, Acquisitions, and Note 7, Fair Value Measurements. |
Goodwill and Other Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets The Company tests goodwill for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. In evaluating the recoverability of goodwill, the Company compares the fair value of each of its reporting units to its carrying value to determine potential impairment. If the carrying value of a reporting unit exceeds its fair value, the implied fair value of that reporting unit’s goodwill is to be calculated and an impairment loss is recognized in the amount by which the carrying value of the reporting unit’s goodwill exceeds its implied fair value, if any. The fair values of the Company's reporting units are determined by using a weighted average of a market approach and an income approach. Under the market approach, fair values are estimated using published market multiples for comparable companies. The Company calculates fair values under the income approach by taking estimated future cash flows that are based on internal projections and other assumptions deemed reasonable by management and discounting them using an estimated weighted average cost of capital. The Company’s intangible assets not subject to amortization consist principally of its trade names. The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for certain customer relationships amortized on an accelerated method) over the following estimated useful lives : Customer relationships 7 to 12 years Intellectual property 7 to 15 years Licenses 10 to 17 years Non-compete agreements 2 to 7 years Patents 5 to 20 years Trade names 8 to 10 years Amortization expense of intellectual property, licenses and patents is recorded as a component of cost of sales, and amortization expense of customer relationships, non-compete agreements and trade names is recorded as a component of selling, general and administrative ("SG&A") expenses in the Company’s Consolidated Statements of Operations. The Company tests each non-amortizing intangible asset for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. To derive the fair value of its trade names, the Company utilizes an income approach, which relies upon management's assumptions of royalty rates, projected revenues and discount rates. The Company also tests each amortizing intangible asset for impairment if events or circumstances indicate that the asset might be impaired. The test consists of determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The determination of fair value requires management to make a number of estimates, assumptions and judgments of such factors as projected revenues and earnings and discount rates. |
Investments, Policy [Policy Text Block] | Investments Investments are stated at fair value based on quoted market prices. Investments that are intended to be held for less than one year are included within prepaid expenses and other current assets in the Company’s Consolidated Balance Sheets, while those intended to be held for longer than one year are classified within other assets. Unrealized gains or losses associated with available-for-sale securities are reported net of tax within other comprehensive income or (loss) in shareholders’ equity. Unrealized gains or losses associated with trading securities are recorded as a component of other income in the Company’s Consolidated Statements of Operations. |
Customer Rebates and Credits, Policy [Policy Text Block] | Customer Rebates and Credits The Company records accrued customer rebates and credits as a component of accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. These amounts generally relate to discounts negotiated with customers as part of certain sales contracts that are usually tied to sales volume thresholds. The Company accrues customer rebates and credits as a reduction within net sales as the revenue is recognized based on the estimated level of discount rate expected to be earned by each customer over the life of the contractual rebate period (generally one year). Accrued customer rebates and credits are monitored by management and discount levels are updated at least quarterly. |
Product Warranties, Policy [Policy Text Block] | Product Warranties Product warranty liabilities are estimated at the time of shipment and recorded as a component of accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The amount recognized is based on historical claims experience. |
Defined Benefit Pension Plan, Policy [Policy Text Block] | Defined Benefit Pension Plan In connection with a fiscal 2013 acquisition, the Company assumed a frozen qualified defined benefit pension plan (the "Plan"). The Plan's benefits are based on employee compensation and years of service. However, since the Plan was closed to new participants effective December 31, 2004, the accrued benefit for Plan participants was fixed as of the date of acquisition. The Company uses an actuarial valuation to determine the projected benefit obligation of the Plan and records the difference between the fair value of the Plan's assets and the projected benefit obligation as of October 31 in its Consolidated Balance Sheets. Additionally, any actuarial gain or loss that arises during a fiscal year that is not recognized as a component of net periodic pension income or expense is recorded as a component of other comprehensive income or (loss), net of tax. See Note 10, Employee Retirement Plans, for additional information and disclosures about the Plan. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue from the sale of products and the rendering of services is recognized when title and risk of loss passes to the customer, which is generally at the time of shipment. Revenue from the rendering of services represented less than 10% of consolidated net sales for all periods presented. Revenue from certain fixed price contracts for which costs can be dependably estimated is recognized on the percentage-of-completion method, measured by the percentage of costs incurred to date to estimated total costs for each contract. The percentage of the Company’s net sales recognized under the percentage-of-completion method was approximately 4% , 3% and 1% in fiscal 2015, 2014 and 2013, respectively. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Selling, general and administrative costs are charged to expense as incurred. Revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the period of revision. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Variations in actual labor performance, changes to estimated profitability, and final contract settlements may result in revisions to cost estimates and are recognized in income in the period in which the revisions are determined. Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations in fiscal 2015, 2014 or 2013. The asset, “costs and estimated earnings in excess of billings” on uncompleted percentage-of-completion contracts, included in accounts receivable, represents revenue recognized in excess of amounts billed. The liability, “billings in excess of costs and estimated earnings,” included in accrued expenses and other current liabilities, represents billings in excess of revenue recognized on contracts accounted for under the percentage-of-completion method. Billings are made based on the completion of certain milestones as provided for in the contracts. For fixed price contracts in which costs cannot be dependably estimated, revenue is recognized on the completed-contract method. A contract is considered complete when all significant costs have been incurred or the item has been accepted by the customer. Progress billings and customer advances (“billings to date”) received on fixed price contracts accounted for under the completed-contract method are classified as a reduction to contracts in process (a component of inventories), if any, and any remaining amount is included in accrued expenses and other current liabilities. |
Stock-Based Compensation, Policy [Policy Text Block] | Stock-Based Compensation The Company records compensation expense associated with stock options in its Consolidated Statements of Operations based on the grant date fair value of those awards. The fair value of each stock option on the date of grant is estimated using the Black-Scholes pricing model based on certain valuation assumptions. Expected stock price volatility is based on the Company’s historical stock prices over the contractual term of the option grant and other factors. The risk-free interest rate used is based on the published U.S. Treasury yield curve in effect at the time of the option grant for instruments with a similar life. The dividend yield reflects the Company’s expected dividend yield at the date of grant. The expected option life represents the period of time that the stock options are expected to be outstanding, taking into consideration the contractual term of the option grant and employee historical exercise behavior. The Company generally recognizes stock option compensation expense ratably over the award’s vesting period. |
Income Taxes, Policy [Policy Text Block] | Income Taxes Income tax expense includes U.S. and foreign income taxes, plus a provision for U.S. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested. Deferred income taxes are provided on elements of income that are recognized for financial accounting purposes in periods different from periods recognized for income tax purposes. The Company’s policy is to recognize interest and penalties related to income tax matters as a component of income tax expense. Further information regarding income taxes can be found in Note 6, Income Taxes. |
Redeemable Noncontrolling Interests, Policy [Policy Text Block] | Redeemable Noncontrolling Interests As further detailed in Note 11, Redeemable Noncontrolling Interests, the holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that require the Company to provide cash consideration for their equity interests (the “Redemption Amount”) at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. The Put Rights are embedded in the shares owned by the noncontrolling interest holders and are not freestanding. The Company tracks the carrying cost of such redeemable noncontrolling interests at historical cost plus an allocation of subsidiary earnings based on ownership interest, less dividends paid to the noncontrolling interest holders. Redeemable noncontrolling interests are recorded outside of permanent equity at the higher of their carrying cost or management’s estimate of the Redemption Amount. The initial adjustment to record redeemable noncontrolling interests at the Redemption Amount results in a corresponding decrease to retained earnings. Subsequent adjustments to the Redemption Amount of redeemable noncontrolling interests may result in corresponding decreases or increases to retained earnings, provided any increases to retained earnings may only be recorded to the extent of decreases previously recorded. Adjustments to Redemption Amounts based on fair value will have no affect on net income per share attributable to HEICO shareholders whereas the portion of periodic adjustments to the carrying amount of redeemable noncontrolling interests based solely on a multiple of future earnings that reflect a redemption amount in excess of fair value will affect net income per share attributable to HEICO shareholders. Acquisitions of redeemable noncontrolling interests are treated as equity transactions. |
Net Income per Share Attributable to HEICO Shareholders, Policy [Policy Text Block] | Net Income per Share Attributable to HEICO Shareholders Basic net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period. Diluted net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period plus potentially dilutive common shares arising from the assumed exercise of stock options, if dilutive. The dilutive impact of potentially dilutive common shares is determined by applying the treasury stock method. |
Foreign Currency Translation, Policy [Policy Text Block] | Foreign Currency All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end exchange rates, while revenue and expenses are translated using average exchange rates for the period. Unrealized translation gains or losses are reported as foreign currency translation adjustments through other comprehensive income or (loss) in shareholders’ equity. Transaction gains or losses related to balances denominated in a currency other than the functional currency are recorded in the Company's Consolidated Statements of Operations. |
Contingencies, Policy [Policy Text Block] | Contingencies Losses for contingencies such as product warranties, litigation and environmental matters are recognized in income when they are probable and can be reasonably estimated. Gain contingencies are not recognized in income until they have been realized. |
New Accounting Pronouncements, Policy [Policy 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. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year. Accordingly, ASU 2014-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2017, or in fiscal 2019 for HEICO. Early adoption in the year preceding the effective date is 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 and cash flows. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires entities to measure inventories at the lower of cost or net realizable value. Under current guidance, inventories are measured at the lower of cost or market. ASU 2015-11 must be applied prospectively and 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 permitted. The Company is currently evaluating the effect, if any, the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments," which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including any cumulative effect on earnings as a result of the change to the provisional amounts as if the accounting had been completed as of the acquisition date. The Company adopted ASU 2015-16 in the fourth quarter of fiscal 2015, resulting in no impact on the Company's consolidated results of operations, financial position or cash flows. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes," which requires that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 may be applied either prospectively or retrospectively and 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 permitted. The Company is currently evaluating which transition method it will elect. The adoption of this guidance will only effect the presentation of deferred taxes in the Company's consolidated statement of financial position. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Summary Of Significant Accounting Policies (Details) [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s property, plant and equipment is depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Leasehold improvements 2 to 20 years Machinery and equipment 3 to 10 years Tooling 2 to 5 years |
Intangible Assets Useful Life [Table Text Block] | : Customer relationships 7 to 12 years Intellectual property 7 to 15 years Licenses 10 to 17 years Non-compete agreements 2 to 7 years Patents 5 to 20 years Trade names 8 to 10 years |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Pro Forma Information [Table Text Block] | The following table presents unaudited pro forma financial information for fiscal 2015 and fiscal 2014 as if the Company's fiscal 2015 acquisitions had occurred as of November 1, 2013 (in thousands): Year ended October 31, 2015 2014 Net sales $1,244,911 $1,228,987 Net income from consolidated operations $163,012 $150,412 Net income attributable to HEICO $140,771 $130,539 Net income per share attributable to HEICO shareholders: Basic $2.11 $1.96 Diluted $2.08 $1.94 |
Other Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Total Consideration [Table Text Block] | The following table summarizes the aggregate total consideration for the Company's other acquisitions (in thousands): Year ended October 31, 2015 2014 2013 Cash paid $171,829 $6,759 $91,647 Less: cash acquired (5,062 ) — (3,185 ) Cash paid, net 166,767 6,759 88,462 Contingent purchase consideration 21,355 — 20,654 Additional purchase consideration (204 ) (56 ) 569 Total consideration $187,918 $6,703 $109,685 |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the allocation of the aggregate total consideration for the Company's other acquisitions to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands): Year ended October 31, 2015 2014 2013 Assets acquired: Identifiable intangible assets $102,981 $3,400 $39,843 Goodwill 89,144 2,552 68,095 Inventories 17,254 247 3,112 Property, plant and equipment 16,280 248 6,286 Accounts receivable 10,719 256 9,233 Other assets 2,594 12 2,565 Total assets acquired, excluding cash 238,972 6,715 129,134 Liabilities assumed: Deferred income taxes 6,788 — 13,857 Accounts payable 4,845 — 1,746 Accrued expenses 2,576 12 3,846 Other liabilities 621 — — Total liabilities assumed 14,830 12 19,449 Noncontrolling interests in consolidated subsidiaries 36,224 — — Net assets acquired, excluding cash $187,918 $6,703 $109,685 |
Heico Flight Support Corp [Member] | Reinhold Industries [Member] | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Total Consideration [Table Text Block] | The following table summarizes the total consideration for the acquisition of Reinhold (in thousands): Cash paid $141,014 Less: cash acquired (8,041 ) Cash paid, net 132,973 Additional purchase consideration 1,499 Total consideration $134,472 |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the allocation of the total consideration for the acquisition of Reinhold to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands): Assets acquired: Goodwill $76,424 Identifiable intangible assets 66,500 Inventories 10,753 Accounts receivable 8,830 Property, plant and equipment 7,994 Other assets 2,756 Total assets acquired, excluding cash 173,257 Liabilities assumed: Deferred income taxes 25,613 Accrued expenses 6,994 Accounts payable 2,923 Defined benefit pension plan obligation, net 2,865 Other liabilities 390 Total liabilities assumed 38,785 Net assets acquired, excluding cash $134,472 |
SELECTED FINANCIAL STATEMENT 30
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts Receivable As of October 31, (in thousands) 2015 2014 Accounts receivable $183,631 $151,812 Less: Allowance for doubtful accounts (2,038 ) (2,143 ) Accounts receivable, net $181,593 $149,669 |
Costs And Estimated Earnings On Uncompleted Percentage Of Completion Contracts [Table Text Block] | Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts As of October 31, (in thousands) 2015 2014 Costs incurred on uncompleted contracts $22,645 $24,437 Estimated earnings 16,116 11,747 38,761 36,184 Less: Billings to date (36,442 ) (29,829 ) $2,319 $6,355 Included in the accompanying Consolidated Balance Sheets under the following captions: Accounts receivable, net (costs and estimated earnings in excess of billings) $6,263 $8,161 Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) (3,944 ) (1,806 ) $2,319 $6,355 |
Schedule of Inventory, Current [Table Text Block] | Inventories As of October 31, (in thousands) 2015 2014 Finished products $119,262 $106,229 Work in process 32,201 30,056 Materials, parts, assemblies and supplies 89,739 79,163 Contracts in process 4,521 2,594 Less: Billings to date (2,206 ) — Inventories, net of valuation reserves $243,517 $218,042 |
Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment As of October 31, (in thousands) 2015 2014 Land $5,060 $4,501 Buildings and improvements 70,626 60,332 Machinery, equipment and tooling 152,022 139,963 Construction in progress 4,668 6,905 232,376 211,701 Less: Accumulated depreciation and amortization (126,706 ) (117,836 ) Property, plant and equipment, net $105,670 $93,865 |
Schedule Of Accrued Expenses and Other Current Liabilities [Table Text Block] | Accrued Expenses and Other Current Liabilities As of October 31, (in thousands) 2015 2014 Accrued employee compensation and related payroll taxes $53,238 $52,480 Deferred revenue 16,498 12,481 Accrued customer rebates and credits 8,072 10,924 Accrued additional purchase consideration 6,859 90 Other 15,488 16,603 Accrued expenses and other current liabilities $100,155 $92,578 |
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 is as follows (in thousands): Year ended October 31, 2015 2014 2013 R&D expenses $38,747 $37,377 $32,897 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive income (loss) during fiscal 2015 and 2014 are as follows (in thousands): Foreign Currency Translation Pension Benefit Obligation Accumulated Other Comprehensive Income (Loss) Balances as of October 31, 2013 ($466 ) $610 $144 Unrealized loss (7,882 ) (551 ) (8,433 ) Balances as of October 31, 2014 (8,348 ) 59 (8,289 ) Unrealized loss (16,020 ) (771 ) (16,791 ) Balances as of October 31, 2015 ($24,368 ) ($712 ) ($25,080 ) |
GOODWILL AND OTHER INTANGIBLE31
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill during fiscal 2015 and 2014 by operating segment are as follows (in thousands): Segment Consolidated FSG ETG Totals Balances as of October 31, 2013 $279,855 $408,634 $688,489 Goodwill acquired 2,552 — 2,552 Foreign currency translation adjustments — (4,797 ) (4,797 ) Adjustments to goodwill — 27 27 Balances as of October 31, 2014 282,407 403,864 686,271 Goodwill acquired 56,441 32,703 89,144 Foreign currency translation adjustments (1,341 ) (7,435 ) (8,776 ) Balances as of October 31, 2015 $337,507 $429,132 $766,639 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of (in thousands): As of October 31, 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 $190,450 ($63,461 ) $126,989 $144,478 ($55,393 ) $89,085 Intellectual property 98,143 (22,912 ) 75,231 73,005 (17,620 ) 55,385 Licenses 4,200 (1,882 ) 2,318 2,900 (1,645 ) 1,255 Non-compete agreements 914 (914 ) — 1,020 (1,020 ) — Patents 746 (447 ) 299 712 (405 ) 307 Trade names 166 (38 ) 128 166 (17 ) 149 294,619 (89,654 ) 204,965 222,281 (76,100 ) 146,181 Non-Amortizing Assets: Trade names 67,628 — 67,628 54,629 — 54,629 $362,247 ($89,654 ) $272,593 $276,910 ($76,100 ) $200,810 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): As of October 31, 2015 2014 Borrowings under revolving credit facility $365,203 $326,000 Capital leases 2,395 3,109 367,598 329,109 Less: Current maturities of long-term debt (357 ) (418 ) $367,241 $328,691 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The estimated future minimum lease payments of all capital leases for the next five fiscal years and thereafter are as follows (in thousands): Year ending October 31, 2016 $455 2017 400 2018 395 2019 395 2020 358 Thereafter 753 Total minimum lease payments 2,756 Less: amount representing interest (361 ) Present value of minimum lease payments $2,395 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The components of income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2015 2014 2013 Domestic $206,612 $185,842 $168,643 Foreign 18,352 12,730 12,118 Income before taxes and noncontrolling interests $224,964 $198,572 $180,761 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes on income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2015 2014 2013 Current: Federal $65,857 $63,264 $49,275 State 8,559 10,145 9,060 Foreign 4,064 3,136 3,650 78,480 76,545 61,985 Deferred: Federal (4,459 ) (14,000 ) (4,786 ) State (1,907 ) (2,871 ) (467 ) Foreign (714 ) 126 (532 ) (7,080 ) (16,745 ) (5,785 ) Total income tax expense $71,400 $59,800 $56,200 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows: Year ended October 31, 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal income tax benefit 2.4 2.9 3.1 Research and development tax credits (1.9 ) (1.2 ) (2.6 ) Noncontrolling interests’ share of income (1.3 ) (1.0 ) (1.3 ) Domestic production activities tax deduction (1.2 ) (1.6 ) (1.2 ) Foreign taxes, where permanently reinvested outside of the U.S. (.8 ) — — Nontaxable reduction in accrued contingent consideration (.2 ) (3.4 ) — Tax-exempt losses (gains) on corporate owned life insurance policies .1 (.6 ) (1.4 ) Other, net (.4 ) — (.5 ) Effective tax rate 31.7 % 30.1 % 31.1 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of October 31, 2015 2014 Deferred tax assets: Deferred compensation liability $31,520 $27,568 Inventories 24,912 23,099 Share-based compensation 9,333 7,427 Bonus accrual 3,791 4,031 Deferred revenue 2,005 2,660 Vacation accrual 1,836 1,724 R&D related carryforward 1,826 2,068 Customer rebates accrual 1,236 1,635 Other 7,450 8,258 Total deferred tax assets 83,909 78,470 Deferred tax liabilities: Goodwill and other intangible assets (148,448 ) (144,381 ) Property, plant and equipment (7,667 ) (9,090 ) Other (2,005 ) (880 ) Total deferred tax liabilities (158,120 ) (154,351 ) Net deferred tax liability ($74,211 ) ($75,881 ) The net deferred tax liability is classified in the Company’s Consolidated Balance Sheets as follows (in thousands): As of October 31, 2015 2014 Current asset $35,530 $34,485 Long-term asset 847 1,063 Long-term liability (110,588 ) (111,429 ) Net deferred tax liability ($74,211 ) ($75,881 ) |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the activity related to the liability for gross unrecognized tax benefits during the fiscal years ended October 31, 2015 and 2014 is as follows (in thousands): Year ended October 31, 2015 2014 Balances as of beginning of year $879 $1,072 Increases related to current year tax positions 279 138 Increases related to prior year tax positions 30 10 Decreases related to prior year tax positions (80 ) — Settlements (118 ) (22 ) Lapse of statutes of limitations (203 ) (319 ) Balances as of end of year $787 $879 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Oct. 31, 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 October 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate owned life insurance $— $73,238 $— $73,238 Money market funds 3,832 — — 3,832 Equity securities 1,845 — — 1,845 Mutual funds 1,665 — — 1,665 Other 946 50 — 996 Total assets $8,288 $73,288 $— $81,576 Liabilities: Contingent consideration $— $— $21,405 $21,405 As of October 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate owned life insurance $— $61,958 $— $61,958 Money market funds 3,974 — — 3,974 Equity securities 2,225 — — 2,225 Mutual funds 1,903 — — 1,903 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 October 31, 2015 are as follows: Fiscal 2015 Acquisition Compound annual revenue growth rate range 2 % - 16% Weighted average discount rate 2.0% |
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 fiscal years ended October 31, 2015 and 2014 are as follows (in thousands): Liabilities Balance as of October 31, 2013 $29,310 Decrease in accrued contingent consideration (28,126 ) Balance as of October 31, 2014 1,184 Contingent consideration related to acquisition 21,355 Increase in accrued contingent consideration, net 293 Foreign currency transaction adjustments (1,427 ) Balance as of October 31, 2015 $21,405 Included in the accompanying Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $6,686 Other long-term liabilities 14,719 $21,405 |
Schedule of Impaired Intangible Assets [Table Text Block] | The fair values of the Company’s nonfinancial assets and liabilities that were measured at fair value on a nonrecurring basis, which are classified within Level 3, and the related impairment losses recognized in fiscal 2014 are as follows (in thousands): Carrying Amount Impairment Loss Fair Value (Level 3) Assets: Customer relationships $19,366 ($11,200 ) $8,166 Non-amortizing trade names 10,000 (1,900 ) 8,100 Intellectual property 2,302 (1,900 ) 402 Impairment of intangible assets ($15,000 ) |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | The Level 3 inputs used to derive the estimated fair values of the customer relationships, non-amortizing trade names and intellectual property during fiscal 2014 are as follows: Customer Relationships Non-Amortizing Trade Names Intellectual Property Valuation method Excess Earnings Relief from Royalty Relief from Royalty Discount rate 15.0% - 19.0% 14.0% - 18.0% 19.0% Annual attrition rate 25.0% - 30.0% N/A 20.0% Royalty rate N/A 1.0% - 2.5% 6.0% |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Share Based Compensation Stock Options Activity And Shares Available For Grants [Table Text Block] | Information concerning share-based activity for each of the last three fiscal years ended October 31 is as follows (in thousands, except per share data): Shares Under Option Shares Available For Grant Shares Weighted Average Exercise Price Outstanding as of October 31, 2012 2,389 2,899 $16.90 Granted (549 ) 549 $35.74 Exercised — (306 ) $3.78 Outstanding as of October 31, 2013 1,840 3,142 $21.48 Granted (161 ) 161 $43.37 Stock award issuance (62 ) — $— Exercised — (39 ) $18.36 Outstanding as of October 31, 2014 1,617 3,264 $22.59 Granted (291 ) 291 $51.85 Exercised — (220 ) $16.85 Outstanding as of October 31, 2015 1,326 3,335 $25.52 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block] | Information concerning stock options outstanding (all of which are vested or expected to vest) and stock options exercisable by class of common stock as of October 31, 2015 is as follows (in thousands, except per share and contractual life data): Options Outstanding Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Common Stock 1,579 $23.54 4.9 $43,230 Class A Common Stock 1,756 $27.30 6.3 29,967 3,335 $25.52 5.6 $73,197 Options Exercisable Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Common Stock 1,342 $19.60 4.3 $41,376 Class A Common Stock 908 $19.91 5.0 21,644 2,250 $19.73 4.6 $63,020 |
Schedule of Cash Proceeds Received from Share-based Payment Awards [Table Text Block] | Information concerning stock options exercised is as follows (in thousands): Year ended October 31, 2015 2014 2013 Cash proceeds from stock option exercises $3,673 $708 $463 Tax benefit realized from stock option exercises 1,402 93 5,191 Intrinsic value of stock option exercises 6,958 929 8,033 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model based on the following weighted average assumptions for the fiscal years ended October 31, 2015, 2014 and 2013: 2015 2014 2013 Common Stock Class A Common Stock Class A Common Stock Common Stock Class A Common Stock Expected stock price volatility 39.96 % 36.51 % 38.04 % 39.94 % 38.40 % Risk-free interest rate 2.30 % 2.12 % 2.06 % 2.02 % 1.85 % Dividend yield .24 % .32 % .38 % .24 % .33 % Forfeiture rate .00 % .00 % .00 % .00 % .00 % Expected option life (years) 9 7 7 9 7 Weighted average fair value $28.46 $19.59 $17.23 $20.24 $14.29 |
EMPLOYEE RETIREMENT PLANS EMPLO
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Other Share-based Compensation, Activity [Table Text Block] | Information concerning share-based activity pertaining to the 401(k) Plan for each of the last three fiscal years ended October 31 is as follows (in thousands): Common Stock Class A Common Stock Shares available for issuance as of October 31, 2012 170 170 Issuance of common stock to 401(k) Plan (45 ) (45 ) Shares available for issuance as of October 31, 2013 125 125 Issuance of common stock to 401(k) Plan (57 ) (57 ) Shares available for issuance as of October 31, 2014 68 68 Issuance of common stock to 401(k) Plan (54 ) (54 ) Shares available for issuance as of October 31, 2015 14 14 |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Changes in the Plan's projected benefit obligation and plan assets for the fiscal years ended October 31, 2015 and 2014 are as follows (in thousands): Change in projected benefit obligation: Projected benefit obligation as of October 31, 2013 $13,213 Actuarial loss 930 Interest cost 610 Benefits paid (938 ) Projected benefit obligation as of October 31, 2014 13,815 Actuarial loss 716 Interest cost 561 Benefits paid (924 ) Projected benefit obligation as of October 31, 2015 $14,168 Change in plan assets: Fair value of plan assets as of October 31, 2013 $11,397 Actual return on plan assets 764 Employer contributions 136 Benefits paid (938 ) Fair value of plan assets as of October 31, 2014 11,359 Actual return on plan assets 254 Employer contributions 78 Benefits paid (924 ) Fair value of plan assets as of October 31, 2015 $10,767 Funded status as of October 31, 2014 ($2,456 ) Funded status as of October 31, 2015 ($3,401 ) |
Schedule of Assumptions Used [Table Text Block] | Weighted average assumptions used to determine the projected benefit obligation are as follows: As of October 31, 2015 2014 Discount rate 4.47 % 4.20 % Weighted average assumptions used to determine net pension income are as follows: Year ended October 31, 2015 2014 2013 Discount rate 4.20 % 4.79 % 3.99 % Expected return on plan assets 6.75 % 6.75 % 6.75 % |
Schedule of Net Benefit Costs [Table Text Block] | Components of net pension income that were recorded within the Company's Consolidated Statements of Operations are as follows (in thousands): Year ended October 31, 2015 2014 2013 Expected return on plan assets $738 $739 $320 Interest cost 561 610 236 Net pension income $177 $129 $84 |
Schedule of Expected Benefit Payments [Table Text Block] | Estimated future benefit payments to be made during each of the next five fiscal years and in aggregate during the succeeding five fiscal years are as follows (in thousands): Year ending October 31, 2016 $914 2017 907 2018 883 2019 915 2020 918 2021-2025 4,436 |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair value of the Plan's assets are set forth by level within the fair value hierarchy in the following tables (in thousands): As of October 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed income securities $5,372 $— $— $5,372 Equity securities 5,280 — — 5,280 Money market funds and cash 115 — — 115 $10,767 $— $— $10,767 As of October 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed income securities $5,563 $— $— $5,563 Equity securities 5,678 — — 5,678 Money market funds and cash 118 — — 118 $11,359 $— $— $11,359 Fixed income securities consist of investments in mutual funds. Equity securities consist of investments in common stocks, mutual funds and exchange traded funds. The Plan's actual and targeted asset allocations by investment category are as follows: As of October 31, 2015 2014 Actual Target Actual Target Fixed income securities 50 % 50 % 49 % 50 % Equity securities 49 % 50 % 50 % 50 % Money market funds and cash 1 % — % 1 % — % 100 % 100 % 100 % 100 % |
REDEEMABLE NONCONTROLLING INT37
REDEEMABLE NONCONTROLLING INTERESTS REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Redeemable Noncontrolling Interests [Abstract] | |
Schedule of Put Rights [Table Text Block] | A summary of the Put Rights associated with the redeemable noncontrolling interests in certain of the Company’s subsidiaries is as follows as of October 31, 2015: Subsidiary Operating Company Earliest Purchase 2005 ETG 95.9% 2016 (1) 4 (2) 2006 FSG 80.1% 2016 (1) 4 2008 FSG 82.3% 2016 5 2009 ETG 82.5% 2016 (1) 1 2011 FSG 80.1% 2016 (1) 2 2012 ETG 78.0% 2017 2 2012 FSG 84.0% 2018 4 2012 FSG 80.1% 2019 4 2015 FSG 80.0% 2019 4 2015 FSG 80.1% 2020 4 2015 FSG 80.1% 2022 4 2015 ETG 80.1% 2020 2 (1) Currently puttable (2) A portion is to be purchased in a lump sum |
NET INCOME PER SHARE ATTRIBUT38
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [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): Year ended October 31, 2015 2014 2013 Numerator: Net income attributable to HEICO $133,364 $121,293 $102,396 Denominator: Weighted average common shares outstanding - basic 66,740 66,463 66,298 Effect of dilutive stock options 1,071 990 684 Weighted average common shares outstanding - diluted 67,811 67,453 66,982 Net income per share attributable to HEICO shareholders: Basic $2.00 $1.82 $1.54 Diluted $1.97 $1.80 $1.53 Anti-dilutive stock options excluded 412 430 754 |
QUARTERLY FINANCIAL INFORMATI39
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales: 2015 $268,185 $291,421 $300,370 $328,672 2014 $266,826 $282,232 $291,030 $292,223 Gross profit: 2015 $93,797 $105,494 $108,092 $126,796 2014 $92,117 $99,922 $103,327 $102,946 Net income from consolidated operations: 2015 $32,091 $38,504 $38,938 $44,031 2014 $32,562 $32,780 $37,352 $36,078 Net income attributable to HEICO: 2015 $27,640 $33,105 $34,369 $38,250 2014 $27,455 $28,367 $33,366 $32,105 Net income per share attributable to HEICO: Basic: 2015 $.42 $.50 $.51 $.57 2014 $.41 $.43 $.50 $.48 Diluted: 2015 $.41 $.49 $.51 $.56 2014 $.41 $.42 $.49 $.48 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Oct. 31, 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 the ETG, for each of the last three fiscal years ended October 31 is as follows (in thousands): Segment Other, Primarily Corporate and Intersegment Consolidated Totals FSG ETG Year ended October 31, 2015: Net sales $809,700 $390,982 ($12,034 ) $1,188,648 Depreciation 10,859 6,803 168 17,830 Amortization 13,470 15,945 662 30,077 Operating income 149,798 98,833 (18,975 ) 229,656 Capital expenditures 11,737 6,201 311 18,249 Total assets 868,218 746,018 122,151 1,736,387 Year ended October 31, 2014: Net sales $762,801 $379,404 ($9,894 ) $1,132,311 Depreciation 9,809 7,113 146 17,068 Amortization 10,034 19,993 662 30,689 Operating income 136,480 88,914 (22,006 ) 203,388 Capital expenditures 9,437 6,327 646 16,410 Total assets 676,824 703,144 109,246 1,489,214 Year ended October 31, 2013: Net sales $665,148 $350,033 ($6,424 ) $1,008,757 Depreciation 7,997 5,242 133 13,372 Amortization 6,617 16,150 651 23,418 Operating income 122,058 83,063 (21,531 ) 183,590 Capital expenditures 10,190 7,748 390 18,328 Total assets 679,839 759,807 93,369 1,533,015 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The following table also summarizes the Company’s long-lived assets held within and outside of the United States as of October 31 of the last three fiscal years (in thousands). Long-lived assets consist of net property, plant and equipment. 2015 2014 2013 Net Sales: United States of America $785,567 $754,616 $654,096 Other countries 403,081 377,695 354,661 Total net sales $1,188,648 $1,132,311 $1,008,757 Long-lived assets: United States of America $85,253 $84,116 $87,247 Other countries 20,417 9,749 10,490 Total long-lived assets $105,670 $93,865 $97,737 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum payments under non-cancelable operating leases for the next five fiscal years and thereafter are estimated to be as follows (in thousands): Year ending October 31, 2016 $10,526 2017 8,202 2018 4,479 2019 2,509 2020 2,063 Thereafter 8,943 Total minimum lease commitments $36,722 |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability in fiscal 2015 and 2014 are as follows (in thousands): Year ended October 31, 2015 2014 Balances as of beginning of year $4,079 $3,233 Accruals for warranties 1,215 3,005 Acquired warranty liabilities 35 — Warranty claims settled (2,126 ) (2,159 ) Balances as of end of year $3,203 $4,079 |
SUPPLEMENTAL DISCLOSURES OF C42
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table presents supplemental disclosures of cash flow information and non-cash investing activities for fiscal 2015, 2014 and 2013 (in thousands): Year ended October 31, 2015 2014 2013 Cash paid for income taxes $76,021 $72,723 $62,631 Cash received from income tax refunds (1,211 ) (395 ) (33 ) Cash paid for interest 4,598 5,550 3,514 Contingent consideration 21,355 — 20,654 Additional purchase consideration (204 ) (56 ) 2,068 Property, plant and equipment acquired through capital lease obligations 59 131 — |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Oct. 31, 2015 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Other Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Other Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Tooling [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Tooling [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Oct. 31, 2015 | |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 12 years |
Intellectual Property [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Intellectual Property [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Licensing Agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Licensing Agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Noncompete Agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Noncompete Agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Patents [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Patents [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Trade Names [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Trade Names [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment, Depreciation Methods | Depreciation and amortization is generally provided on the straight-line method over the estimated useful lives of the various assets. | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Method | The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for certain customer relationships amortized on an accelerated method) over the following estimated useful lives | ||
Revenue Recognition [Abstract] | |||
Percent of Revenue from Services Renderred | 10.00% | ||
Net Sales Recognized from Percentage-Of-Completion Method | 4.00% | 3.00% | 1.00% |
Heico Aerospace [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Percentage of interest owned by noncontrolling shareholders | 20.00% | 20.00% | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.00% | ||
Lufthansa Technik AG [Member] | Heico Aerospace [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Percentage of interest owned by noncontrolling shareholders | 20.00% | ||
Heico Flight Support Corp [Member] | Subsidiary One [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 80.00% | ||
Heico Flight Support Corp [Member] | Subsidiary Two [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 84.00% | ||
Heico Flight Support Corp [Member] | Subsidiaries [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | ||
HEICO Electronic [Member] | Subsidiary One [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | ||
HEICO Electronic [Member] | Subsidiary Two [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | ||
HEICO Electronic [Member] | Subsidiary Three [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 82.50% | ||
HEICO Electronic [Member] | Subsidiary Four [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 95.90% | ||
HEICO Electronic [Member] | Subsidiary Five [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 78.00% | ||
Heico Aerospace [Member] | Subsidiary One [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | ||
Heico Aerospace [Member] | Subsidiary Two [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 82.30% | ||
Heico Aerospace [Member] | Joint Venture [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 84.00% |
ACQUISITIONS ACQUISITIONS (Deta
ACQUISITIONS ACQUISITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Business Acquisition [Line Items] | |||
Cash paid, net | $ 166,784 | $ 8,737 | $ 222,638 |
Additional purchase consideration | (204) | $ (56) | $ 2,068 |
Heico Flight Support Corp [Member] | Reinhold Industries [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid | 141,014 | ||
Less: cash acquired | (8,041) | ||
Cash paid, net | 132,973 | ||
Additional purchase consideration | 1,499 | ||
Total purchase consideration | $ 134,472 |
ACQUISITIONS (Details 1)
ACQUISITIONS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Assets acquired: | |||
Goodwill | $ 766,639 | $ 686,271 | $ 688,489 |
Heico Flight Support Corp [Member] | Reinhold Industries [Member] | |||
Assets acquired: | |||
Goodwill | 76,424 | ||
Identifiable intangible assets | 66,500 | ||
Inventories | 10,753 | ||
Accounts receivable | 8,830 | ||
Property, plant and equipment | 7,994 | ||
Other assets | 2,756 | ||
Total assets acquired, excluding cash | 173,257 | ||
Liabilities assumed: | |||
Deferred income taxes | 25,613 | ||
Accrued expenses | 6,994 | ||
Accounts payable | 2,923 | ||
Defined benefit pension plan obligation, net | 2,865 | ||
Other liabilities | 390 | ||
Total liabilities assumed | 38,785 | ||
Net assets acquired, excluding cash | $ 134,472 |
ACQUISITIONS ACQUISITIONS (De48
ACQUISITIONS ACQUISITIONS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Business Acquisition [Line Items] | |||
Cash paid, net | $ 166,784 | $ 8,737 | $ 222,638 |
Additional purchase consideration | (204) | (56) | 2,068 |
Additional purchase consideration | (293) | 28,126 | 1,640 |
Other Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid | 171,829 | 6,759 | 91,647 |
Less: cash acquired | (5,062) | 0 | (3,185) |
Cash paid, net | 166,767 | 6,759 | 88,462 |
Contingent purchase consideration | 21,355 | 0 | 20,654 |
Additional purchase consideration | (204) | (56) | 569 |
Total purchase consideration | $ 187,918 | $ 6,703 | $ 109,685 |
ACQUISITIONS ACQUISITIONS (De49
ACQUISITIONS ACQUISITIONS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Assets acquired: | |||
Goodwill | $ 766,639 | $ 686,271 | $ 688,489 |
Other Acquisitions [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | 102,981 | 3,400 | 39,843 |
Goodwill | 89,144 | 2,552 | 68,095 |
Inventories | 17,254 | 247 | 3,112 |
Property, plant and equipment | 16,280 | 248 | 6,286 |
Accounts receivable | 10,719 | 256 | 9,233 |
Other assets | 2,594 | 12 | 2,565 |
Total assets acquired, excluding cash | 238,972 | 6,715 | 129,134 |
Liabilities assumed: | |||
Deferred income taxes | 6,788 | 0 | 13,857 |
Accounts payable | 4,845 | 0 | 1,746 |
Accrued expenses | 2,576 | 12 | 3,846 |
Other liabilities | 621 | 0 | 0 |
Total liabilities assumed | 14,830 | 12 | 19,449 |
Noncontrolling interests in consolidated subsidiaries | 36,224 | 0 | 0 |
Net assets acquired, excluding cash | $ 187,918 | $ 6,703 | $ 109,685 |
ACQUISITIONS ACQUISITIONS (De50
ACQUISITIONS ACQUISITIONS (Details 4) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Business Acquisition [Line Items] | ||
Pro Forma Revenue | $ 1,244,911 | $ 1,228,987 |
Pro Forma Net income from consolidated operations | 163,012 | 150,412 |
Pro Forma Net Income (Loss) Attributable to HEICO | $ 140,771 | $ 130,539 |
Pro Forma Net Income (Loss) Per Share Attributable To Common Shareholders [Abstract] | ||
Pro Forma Earnings Per Share, Basic | $ 2.11 | $ 1.96 |
Pro Forma Earnings Per Share, Diluted | $ 2.08 | $ 1.94 |
ACQUISITIONS (Details Textuals)
ACQUISITIONS (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Business Acquisition [Line Items] | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 166,784 | $ 8,737 | $ 222,638 | ||||||||
Net sales | $ 328,672 | $ 300,370 | $ 291,421 | $ 268,185 | $ 292,223 | $ 291,030 | $ 282,232 | $ 266,826 | 1,188,648 | 1,132,311 | 1,008,757 |
Net income attributable to HEICO | 38,250 | $ 34,369 | $ 33,105 | $ 27,640 | 32,105 | $ 33,366 | $ 28,367 | $ 27,455 | 133,364 | 121,293 | 102,396 |
Contingent consideration, liability | $ 21,405 | $ 1,184 | 21,405 | 1,184 | |||||||
Additional Purchase Consideration Paid | $ 2,000 | 1,200 | |||||||||
FY 2015 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 62,900 | ||||||||||
Net income attributable to HEICO | $ 7,900 | ||||||||||
Reinhold Industries [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Reinhold Industries, Inc. | ||||||||||
Date on which the acquirer obtains control of the acquiree | May 31, 2013 | ||||||||||
Description of the acquired entity | Reinhold is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. | ||||||||||
HEICO Electronic [Member] | Midwest Microwave Solutions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Midwest Microwave Solutions, Inc. | ||||||||||
Date on which the acquirer obtains control of the acquiree | Aug. 31, 2015 | ||||||||||
Description of the acquired entity | MMS designs, manufactures and sells unique Size, Weight, Power and Cost (SWAP-C) optimized Communications and Electronic Intercept Receivers and Tuners for military and intelligence applications. | ||||||||||
Percentage of interest acquired in the subsidiary | 80.10% | 80.10% | |||||||||
Percentage of interest owned by noncontrolling shareholders | 19.90% | 19.90% | |||||||||
HEICO Electronic [Member] | Lucix Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Lucix Corporation | ||||||||||
Date on which the acquirer obtains control of the acquiree | Oct. 31, 2013 | ||||||||||
Description of the acquired entity | Lucix is a leading designer and manufacturer of high performance, high reliability microwave modules, units, and integrated sub-systems for commercial and military satellites. | ||||||||||
Amount of contingent purchase consideration, the company could be required to pay | 50,000 | ||||||||||
Heico Flight Support Corp [Member] | Reinhold Industries [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 132,973 | ||||||||||
Cash Acquired from Acquisition | $ 8,041 | ||||||||||
Net sales | 30,800 | ||||||||||
Net income attributable to HEICO | 2,800 | ||||||||||
Heico Flight Support Corp [Member] | Astroseal Products Manufacturing Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Astroseal Products Mfg. Corporation | ||||||||||
Date on which the acquirer obtains control of the acquiree | Aug. 31, 2015 | ||||||||||
Description of the acquired entity | Astroseal manufactures expanded foil mesh, which is integrated into composite aerospace structures for lighting strike protection in fixed and rotary wing aircraft. | ||||||||||
Heico Flight Support Corp [Member] | Aerospace & Commercial Technologies [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Aerospace & Commercial Technologies, LLC | ||||||||||
Date on which the acquirer obtains control of the acquiree | Aug. 31, 2015 | ||||||||||
Description of the acquired entity | ACT is a leading provider of products and services necessary to maintain up-to-date F-16 fighter aircraft operational capabilities. | ||||||||||
Percentage of interest acquired in the subsidiary | 80.10% | 80.10% | |||||||||
Percentage of interest owned by noncontrolling shareholders | 19.90% | 19.90% | |||||||||
Heico Flight Support Corp [Member] | TEP [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Thermal Energy Products, Inc. | ||||||||||
Date on which the acquirer obtains control of the acquiree | May 31, 2015 | ||||||||||
Description of the acquired entity | TEP engineers, designs and manufactures removable/reusable insulation systems for industrial, commercial, aerospace and defense applications. | ||||||||||
Heico Flight Support Corp [Member] | Harter [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Harter Aerospace, LLC | ||||||||||
Date on which the acquirer obtains control of the acquiree | Jan. 31, 2015 | ||||||||||
Description of the 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. | ||||||||||
Percentage of interest acquired in the subsidiary | 80.10% | 80.10% | |||||||||
Percentage of interest owned by noncontrolling shareholders | 19.90% | 19.90% | |||||||||
Heico Flight Support Corp [Member] | Aeroworks [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Aeroworks International Holding B.V. | ||||||||||
Date on which the acquirer obtains control of the acquiree | Jan. 31, 2015 | ||||||||||
Description of the acquired entity | Aeroworks, which is headquartered in the Netherlands and maintains a significant portion of its 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. | ||||||||||
Percentage of interest acquired in the subsidiary | 80.00% | 80.00% | |||||||||
Percentage of interest owned by noncontrolling shareholders | 20.00% | 20.00% | |||||||||
Heico Flight Support Corp [Member] | Quest Aviation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Name of the entity in which interest is owned | Quest Aviation Supply, Inc. | ||||||||||
Date on which the acquirer obtains control of the acquiree | Jun. 30, 2014 | ||||||||||
Description of the acquired entity | Quest Aviation is a niche supplier of parts to repair thrust reversers on various aircraft engines. | ||||||||||
Tranche One [Member] | HEICO Electronic [Member] | Lucix Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration, liability | 7,000 | ||||||||||
Tranche Two [Member] | HEICO Electronic [Member] | Lucix Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration, liability | $ 13,700 |
SELECTED FINANCIAL STATEMENT 52
SELECTED FINANCIAL STATEMENT INFORMATION, Accounts Receivable (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Accounts receivable | $ 183,631 | $ 151,812 |
Less: Allowance for doubtful accounts | (2,038) | (2,143) |
Accounts receivable, net | $ 181,593 | $ 149,669 |
SELECTED FINANCIAL STATEMENT 53
SELECTED FINANCIAL STATEMENT INFORMATION, Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Costs incurred on uncompleted contracts | $ 22,645 | $ 24,437 |
Estimated earnings | 16,116 | 11,747 |
Total cost incurred and estimated earnings on uncompleted percentage-of completed contracts | 38,761 | 36,184 |
Less: Billings to date | (36,442) | (29,829) |
Unbilled Contracts Receivable | 2,319 | 6,355 |
Included in the accompanying Consolidated Balance Sheets under the following captions: | ||
Accounts receivable, net (costs and estimated earnings in excess of billings) | 6,263 | 8,161 |
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) | (3,944) | (1,806) |
Unbilled Contracts Receivable | $ 2,319 | $ 6,355 |
SELECTED FINANCIAL STATEMENT 54
SELECTED FINANCIAL STATEMENT INFORMATION, Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Finished products | $ 119,262 | $ 106,229 |
Work in process | 32,201 | 30,056 |
Materials, parts, assemblies and supplies | 89,739 | 79,163 |
Contracts-in-process | 4,521 | 2,594 |
Less: Billings to date | (2,206) | 0 |
Inventories, net of valuation reserves | $ 243,517 | $ 218,042 |
SELECTED FINANCIAL STATEMENT 55
SELECTED FINANCIAL STATEMENT INFORMATION, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||
Land | $ 5,060 | $ 4,501 | |
Buildings and improvements | 70,626 | 60,332 | |
Machinery, equipment and tooling | 152,022 | 139,963 | |
Construction in progress | 4,668 | 6,905 | |
Property, Plant and Equipment, Gross | 232,376 | 211,701 | |
Less: Accumulated depreciation and amortization | (126,706) | (117,836) | |
Property, plant and equipment, net | $ 105,670 | $ 93,865 | $ 97,737 |
SELECTED FINANCIAL STATEMENT 56
SELECTED FINANCIAL STATEMENT INFORMATION, Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Accrued employee compensation and related payroll taxes | $ 53,238 | $ 52,480 |
Deferred revenue | 16,498 | 12,481 |
Accrued customer rebates and credits | 8,072 | 10,924 |
Accrued additional purchase consideration | 6,859 | 90 |
Other Liabilities, Current | 15,488 | 16,603 |
Accrued expenses and other current liabilities | $ 100,155 | $ 92,578 |
SELECTED FINANCIAL STATEMENT 57
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION, Research and Development Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
R&D expenses | $ 38,747 | $ 37,377 | $ 32,897 |
SELECTED FINANCIAL STATEMENT 58
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION, Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | $ (8,289) | ||
Unrealized loss | (17,651) | $ (8,433) | $ 3,718 |
Accumulated Other Comprehensive Income (Loss), Balance End | (25,080) | (8,289) | |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | (8,348) | (466) | |
Unrealized loss | (16,020) | (7,882) | |
Accumulated Other Comprehensive Income (Loss), Balance End | (24,368) | (8,348) | (466) |
Pension Benefit Obligation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | 59 | 610 | |
Unrealized loss | (771) | (551) | |
Accumulated Other Comprehensive Income (Loss), Balance End | (712) | 59 | 610 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | (8,289) | 144 | |
Unrealized loss | (16,791) | (8,433) | |
Accumulated Other Comprehensive Income (Loss), Balance End | $ (25,080) | $ (8,289) | $ 144 |
SELECTED FINANCIAL STATEMENT 59
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Property, plant and equipment, net | $ 105,670 | $ 93,865 | $ 97,737 |
Depreciation and amortization | 47,907 | 47,757 | 36,790 |
Assets under capital lease | 3,700 | 4,600 | |
Assets under capital lease, accumulated depreciation | 700 | 1,000 | |
Total customer rebates and credits deducted within net sales | $ 4,700 | 8,300 | 8,300 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Contributions to the plan charged | $ 5,700 | 5,300 | 4,300 |
Deferred compensation plans | 81,576 | 71,449 | |
Costs in Excess of Billings, Current | 6,263 | 8,161 | |
Billings in Excess of Cost, Current | 3,944 | 1,806 | |
Corporate Owned Life Insurance [Member] | |||
Deferred compensation plans | 77,100 | 65,900 | |
Other Deferred Compensation Plan [Member] | |||
Employee related deferred compensation plans, specified as other long-term liabilities | 4,500 | 5,500 | |
Leadership Compensation Plan [Member] | |||
Employee related deferred compensation plans, specified as other long-term liabilities | 76,200 | 65,000 | |
Tooling [Member] | |||
Property, plant and equipment, net | 6,500 | 6,000 | |
Depreciation and amortization | 2,400 | 2,400 | 2,200 |
Property, Plant and Equipment, Exclusive of Tooling [Member] | |||
Depreciation and amortization | $ 17,800 | $ 17,100 | $ 13,400 |
GOODWILL AND OTHER INTANGIBLE60
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Goodwill [Roll Forward] | ||
Opening Balances | $ 686,271 | $ 688,489 |
Goodwill acquired | 89,144 | 2,552 |
Foreign currency translation adjustments | (8,776) | (4,797) |
Adjustments to goodwill | 27 | |
Ending Balances | 766,639 | 686,271 |
Flight Support Group [Member] | ||
Goodwill [Roll Forward] | ||
Opening Balances | 282,407 | 279,855 |
Goodwill acquired | 56,441 | 2,552 |
Foreign currency translation adjustments | (1,341) | 0 |
Adjustments to goodwill | 0 | |
Ending Balances | 337,507 | 282,407 |
Electronic Technologies Group [Member] | ||
Goodwill [Roll Forward] | ||
Opening Balances | 403,864 | 408,634 |
Goodwill acquired | 32,703 | 0 |
Foreign currency translation adjustments | (7,435) | (4,797) |
Adjustments to goodwill | 27 | |
Ending Balances | $ 429,132 | $ 403,864 |
GOODWILL AND OTHER INTANGIBLE61
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Amortizing Assets: | ||
Customer Relationships, Gross | $ 190,450 | $ 144,478 |
Intellectual Property, Gross | 98,143 | 73,005 |
License, Gross | 4,200 | 2,900 |
Noncompete Agreements, Gross | 914 | 1,020 |
Patents, Gross | 746 | 712 |
Trade Names, Gross | 166 | 166 |
Gross Carrying Amount | 294,619 | 222,281 |
Accumulated Amortization | (89,654) | (76,100) |
Amortizing Net Carrying Amount | 204,965 | 146,181 |
Non-Amortizing Assets: | ||
Indefinite-Lived Trade Names | 67,628 | 54,629 |
Total Gross Carrying Amount | 362,247 | 276,910 |
Total Net Carrying Amount | 272,593 | 200,810 |
Customer Relationships [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (63,461) | (55,393) |
Amortizing Net Carrying Amount | 126,989 | 89,085 |
Intellectual Property [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (22,912) | (17,620) |
Amortizing Net Carrying Amount | 75,231 | 55,385 |
Licensing Agreements [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (1,882) | (1,645) |
Amortizing Net Carrying Amount | 2,318 | 1,255 |
Noncompete Agreements [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (914) | (1,020) |
Amortizing Net Carrying Amount | 0 | 0 |
Patents [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (447) | (405) |
Amortizing Net Carrying Amount | 299 | 307 |
Trade Names [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (38) | (17) |
Amortizing Net Carrying Amount | $ 128 | $ 149 |
GOODWILL AND OTHER INTANGIBLE62
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill recognized expected tax deductible amount | $ 60 | $ 3 | |
Amortization expense related to intangible assets | 27 | $ 27.7 | $ 20.6 |
Estimated Amortization expense related to intangible assets, year one | 30.7 | ||
Estimated Amortization expense related to intangible assets, year two | 29.8 | ||
Estimated Amortization expense related to intangible assets, year three | 27.8 | ||
Estimated Amortization expense related to intangible assets, year four | 25.8 | ||
Estimated Amortization expense related to intangible assets, year five | 23.2 | ||
Estimated Amortization expense related to intangible assets, year, there after | $ 67.7 | ||
Customer Relationships [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Weighted average amortization period (in years) | 10 years | ||
Intellectual Property [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Weighted average amortization period (in years) | 12 years | ||
Licensing Agreements [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Weighted average amortization period (in years) | 11 years |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Borrowings under revolving credit facility | $ 365,203 | $ 326,000 |
Capital leases and notes payable | 2,395 | 3,109 |
Total debt and capital leases | 367,598 | 329,109 |
Less: Current maturities of long-term debt | (357) | (418) |
Long-term debt, net of current maturities | $ 367,241 | $ 328,691 |
LONG-TERM DEBT (Details 1)
LONG-TERM DEBT (Details 1) $ in Thousands | Oct. 31, 2015USD ($) |
Lease payments in year one | $ 455 |
Lease payments in year two | 400 |
Lease payments in year three | 395 |
Lease payments in year four | 395 |
Lease payments in year five | 358 |
Thereafter | 753 |
Total minimum lease payments | 2,756 |
Less: amount representing interest | (361) |
Present value of minimum lease payments | $ 2,395 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2013 | Dec. 31, 2011USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2012 | Oct. 31, 2015EUR (€) | Oct. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | $ 365,203 | $ 326,000 | ||||
Credit Facility [Abstract] | ||||||
Credit facility, interest rate description | Advances under the Credit Facility accrue interest at the Company’s choice of the “Base Rate” or the London Interbank Offered Rate (“LIBOR”) plus the applicable margin (based on the Company’s ratio of total funded debt to earnings before interest, taxes, depreciation and amortization, noncontrolling interests and non-cash charges, or “leverage ratio”). The Base Rate is the highest of (i) the Prime Rate; (ii) the Federal Funds rate plus .50% per annum; and (iii) the Adjusted LIBO Rate determined on a daily basis for an Interest Period of one month plus 1.00% per annum, as such capitalized terms are defined in the Credit Facility. | |||||
Minimum [Member] | ||||||
Credit Facility [Abstract] | ||||||
Credit facility unused capacity, commitment fee percentage | 0.125% | |||||
Maximum [Member] | ||||||
Credit Facility [Abstract] | ||||||
Credit facility unused capacity, commitment fee percentage | 0.35% | |||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
Credit Facility [Abstract] | ||||||
Credit facility interest rate range, Minimum | 0.75% | |||||
Credit facility interest rate range, Maximum | 2.25% | |||||
Base Rate [Member] | ||||||
Credit Facility [Abstract] | ||||||
Credit facility interest rate range, Minimum | 0.00% | |||||
Credit facility interest rate range, Maximum | 1.25% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Initiation Date | Dec. 31, 2011 | Dec. 31, 2012 | ||||
Credit Facility [Abstract] | ||||||
Credit Facility, Expiration Date | Dec. 31, 2017 | |||||
Credit Facility, Current Borrowing Capacity | $ 670,000 | |||||
Weighted average interest rate | 1.30% | 1.30% | 1.30% | |||
Amended Revolving Credit Facility1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Initiation Date | Nov. 30, 2013 | |||||
Credit Facility [Abstract] | ||||||
Credit Facility, Expiration Date | Dec. 31, 2018 | |||||
Credit Facility, Current Borrowing Capacity | $ 800,000 | |||||
Line of Credit Facility Change in Borrowing Capacity | 200,000 | |||||
Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |||||
Foreign Line of Credit [Member] | ||||||
Credit Facility [Abstract] | ||||||
Credit Facility, Maximum Borrowing Capacity | 50,000 | |||||
Long-term Debt | $ 35,200 | |||||
Euro Member Countries, Euro | Foreign Line of Credit [Member] | ||||||
Credit Facility [Abstract] | ||||||
Long-term Debt | € | € 32 |
INCOME TAXES INCOME TAXES (Deta
INCOME TAXES INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 206,612 | $ 185,842 | $ 168,643 |
Foreign | 18,352 | 12,730 | 12,118 |
Income before taxes and noncontrolling interests | $ 224,964 | $ 198,572 | $ 180,761 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Current: | |||
Federal | $ 65,857 | $ 63,264 | $ 49,275 |
State | 8,559 | 10,145 | 9,060 |
Foreign | 4,064 | 3,136 | 3,650 |
Current income tax expense | 78,480 | 76,545 | 61,985 |
Deferred: | |||
Federal | (4,459) | (14,000) | (4,786) |
State | (1,907) | (2,871) | (467) |
Foreign | (714) | 126 | (532) |
Deferred Income Tax Expense (Benefit) | (7,080) | (16,745) | (5,785) |
Income tax expense | $ 71,400 | $ 59,800 | $ 56,200 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State taxes, less applicable federal income tax reduction | 2.40% | 2.90% | 3.10% |
Net tax benefit on qualified research and development activities | (1.90%) | (1.20%) | (2.60%) |
Net tax benefit on noncontrolling interests' share of income | (1.30%) | (1.00%) | (1.30%) |
Net tax benefit on qualified domestic production activities | (1.20%) | (1.60%) | (1.20%) |
Foreign taxes, where permanently reinvested outside of the U.S. | 0.80% | 0.00% | 0.00% |
Nontaxable reduction in accrued contingent consideration | (0.20%) | (3.40%) | (0.00%) |
Net tax benefit on corporate owned life insurance policies | 0.10% | (0.60%) | (1.40%) |
Other, net | 0.40% | (0.00%) | 0.50% |
Effective tax rate | 31.70% | 30.10% | 31.10% |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Deferred tax assets: | ||
Deferred compensation liability | $ 31,520 | $ 27,568 |
Inventories | 24,912 | 23,099 |
Share-based compensation | 9,333 | 7,427 |
Bonus accrual | 3,791 | 4,031 |
Deferred revenue | 2,005 | 2,660 |
Vacation accrual | 1,836 | 1,724 |
R and D carryforward and credit | 1,826 | 2,068 |
Customer rebates accrual | 1,236 | 1,635 |
Other | 7,450 | 8,258 |
Deferred Tax Assets, Gross | 83,909 | 78,470 |
Deferred tax liabilities: | ||
Goodwill and other intangible assets | (148,448) | (144,381) |
Property, plant and equipment | (7,667) | (9,090) |
Other | (2,005) | (880) |
Total deferred tax liabilities | (158,120) | (154,351) |
Net deferred tax liabilities | $ (74,211) | $ (75,881) |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 |
Current asset | $ 35,530 | $ 34,485 |
Long-term asset | 847 | 1,063 |
Long-term liability | (110,588) | (111,429) |
Net deferred tax liabilities | $ (74,211) | $ (75,881) |
INCOME TAXES (Details 5)
INCOME TAXES (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balances as of beginning of year | $ 879 | $ 1,072 |
Increases related to current year tax positions | 279 | 138 |
Increases related to prior year tax positions | 30 | 10 |
Decreases related to prior year tax positions | (80) | 0 |
Settlements | (118) | (22) |
Lapse of statutes of limitations | (203) | (319) |
Balances as of end of year | $ 787 | $ 879 |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate, Continuing Operations | 31.70% | 30.10% | 31.10% |
Net deferred tax liability | $ (74,211) | $ (75,881) | |
Deferred Income Tax Expense (Benefit) | 7,080 | 16,745 | $ 5,785 |
Gross unrecognized tax benefits related to uncertain tax positions | 787 | 879 | $ 1,072 |
Unrecognized tax benefits that would impact effective tax rate | $ 500 | $ 600 |
FAIR VALUE MEASUREMENTS, Assets
FAIR VALUE MEASUREMENTS, Assets and liabilities, measured on recurring basis (Details 1) - USD ($) | Oct. 31, 2015 | Oct. 31, 2014 |
Assets [Abstract] | ||
Deferred Compensation Plan Assets | $ 81,576,000 | $ 71,449,000 |
Liabilities [Abstract] | ||
Contingent consideration, liability | 21,405,000 | 1,184,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 8,288,000 | 9,441,000 |
Liabilities [Abstract] | ||
Contingent consideration, liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 73,288,000 | 62,008,000 |
Liabilities [Abstract] | ||
Contingent consideration, liability | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Liabilities [Abstract] | ||
Contingent consideration, liability | 21,405,000 | 1,184,000 |
Other Defined Deferred Compensation Plan [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 996,000 | 1,389,000 |
Other Defined Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 946,000 | 1,339,000 |
Other Defined Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 50,000 | 50,000 |
Other Defined Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Equity Funds [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,665,000 | 1,903,000 |
Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,665,000 | 1,903,000 |
Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,845,000 | 2,225,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,845,000 | 2,225,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Money Market Funds [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 3,832,000 | 3,974,000 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 3,832,000 | 3,974,000 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Corporate Owned Life Insurance [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 73,238,000 | 61,958,000 |
Corporate Owned Life Insurance [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Corporate Owned Life Insurance [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 73,238,000 | 61,958,000 |
Corporate Owned Life Insurance [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS, Level 3 valuation inputs (1) (Details 2) - FY 2015 Acquisition [Member] - Fair Value, Inputs, Level 3 [Member] | 12 Months Ended |
Oct. 31, 2015 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Fair Value Inputs, Discount Rate | 2.00% |
Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Fair Value Inputs, Long-term Revenue Growth Rate | 2.00% |
Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Fair Value Inputs, Long-term Revenue Growth Rate | 16.00% |
FAIR VALUE MEASUREMENTS, Asse75
FAIR VALUE MEASUREMENTS, Assets and liabilities, measured at fair value using unobservable inputs (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Liabilities [Abstract] | ||
Total liabilities | $ 751,834 | $ 674,629 |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Liabilities, Opening Balance | 1,184 | 29,310 |
Contingent purchase consideration | 21,355 | |
Contingent consideration related to acquisition | 293 | (28,126) |
Liabilities, Ending Balance | 21,405 | $ 1,184 |
Liabilities [Abstract] | ||
Accrued Liabilities, Current | 6,686 | |
Other Liabilities, Noncurrent | 14,719 | |
Total liabilities | 21,405 | |
Foreign Currency Gain (Loss) [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (1,427) |
FAIR VALUE MEASUREMENTS FAIR 76
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS, Assets and liabilities and related impairment losses (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Finite-Lived Intangible Assets, Net | $ 204,965 | $ 146,181 | |
Indefinite-Lived Trade Names | 67,628 | 54,629 | |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | (15,000) | $ 0 |
Customer Relationships [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Finite-Lived Intangible Assets, Net | 126,989 | 89,085 | |
Intellectual Property [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Finite-Lived Intangible Assets, Net | $ 75,231 | 55,385 | |
Electronic Technologies Group [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | (15,000) | ||
Electronic Technologies Group [Member] | Customer Relationships [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | (11,200) | ||
Finite-Lived Intangible Assets, Net | 19,366 | ||
Electronic Technologies Group [Member] | Intellectual Property [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | (1,900) | ||
Finite-Lived Intangible Assets, Net | 2,302 | ||
Trade Names [Member] | Electronic Technologies Group [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Indefinite Lived Intangible Assets, Carrying Amount | 10,000 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (1,900) | ||
Fair Value, Inputs, Level 3 [Member] | Electronic Technologies Group [Member] | Customer Relationships [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Finite-Lived Intangible Assets, Net | 8,166 | ||
Fair Value, Inputs, Level 3 [Member] | Electronic Technologies Group [Member] | Intellectual Property [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Finite-Lived Intangible Assets, Net | 402 | ||
Fair Value, Inputs, Level 3 [Member] | Trade Names [Member] | Electronic Technologies Group [Member] | |||
Schedule of Impairment Charges, Nonfinancial Assets and Liabilities [Line Items] | |||
Indefinite-Lived Trade Names | $ 8,100 |
FAIR VALUE MEASUREMENTS FAIR 77
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS, Level 3 valuation inputs (2) (Details 5) | 12 Months Ended |
Oct. 31, 2015 | |
Intellectual Property [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Annual attrition rate | 20.00% |
Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Measurements, Valuation Techniques | Excess Earnings |
Fair Value, Inputs, Level 3 [Member] | Intellectual Property [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Measurements, Valuation Techniques | Relief from Royalty |
Fair Value Inputs, Discount Rate | 19.00% |
Fair Value Inputs, Royalty Rate | 6.00% |
Fair Value, Inputs, Level 3 [Member] | Trade Names [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Measurements, Valuation Techniques | Relief from Royalty |
Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Discount Rate | 15.00% |
Annual attrition rate | 25.00% |
Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Trade Names [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Discount Rate | 14.00% |
Fair Value Inputs, Royalty Rate | 1.00% |
Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Customer Relationships [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Discount Rate | 19.00% |
Annual attrition rate | 30.00% |
Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Trade Names [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Discount Rate | 18.00% |
Fair Value Inputs, Royalty Rate | 2.50% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, € in Millions | 12 Months Ended | |||
Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2013USD ($) | Oct. 31, 2015EUR (€) | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Contingent consideration, liability | $ 21,405 | $ 1,184 | ||
Impairment of intangible assets | 0 | 15,000 | $ 0 | |
Change in value of contingent consideration | 293 | (28,126) | (1,640) | |
FY 2013 Acquisition [Member] | Tranche One [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Amount of contingent purchase consideration, the company could be required to pay | 20,000 | |||
Contingent consideration, liability | 7,000 | |||
FY 2013 Acquisition [Member] | Tranche Two [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Amount of contingent purchase consideration, the company could be required to pay | 30,000 | |||
Contingent consideration, liability | 1,200 | 13,700 | ||
Change in value of contingent consideration | 12,500 | |||
FY12 Acquisitions [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Amount of contingent purchase consideration, the company could be required to pay | 7,700 | |||
Contingent consideration, liability | $ 8,600 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Contingent consideration, liability | 21,405 | 1,184 | ||
Contingent consideration related to acquisition | $ 293 | (28,126) | ||
Fair Value, Inputs, Level 3 [Member] | FY 2015 Acquisition [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Fair Value Inputs, Discount Rate | 2.00% | |||
Fair Value, Inputs, Level 3 [Member] | FY 2015 Acquisition [Member] | Minimum [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Fair Value Inputs, Long-term Revenue Growth Rate | 2.00% | |||
Fair Value, Inputs, Level 3 [Member] | FY 2015 Acquisition [Member] | Maximum [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Fair Value Inputs, Long-term Revenue Growth Rate | 16.00% | |||
Flight Support Group [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Contingent consideration, liability | $ 21,300 | |||
Flight Support Group [Member] | FY 2015 Acquisition [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Amount of contingent purchase consideration, the company could be required to pay | 26,900 | |||
Contingent consideration, liability | 21,400 | |||
Change in value of contingent consideration | $ 100 | |||
Electronic Technologies Group [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Impairment of intangible assets | $ 15,000 | |||
Euro Member Countries, Euro | Flight Support Group [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Contingent consideration, liability | € | € 18.1 | |||
Euro Member Countries, Euro | Flight Support Group [Member] | FY 2015 Acquisition [Member] | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Amount of contingent purchase consideration, the company could be required to pay | € | 24.4 | |||
Contingent consideration, liability | € | € 19.5 |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textuals) - USD ($) $ / shares in Units, $ in Millions | Feb. 14, 2014 | Jan. 31, 2014 | Dec. 31, 2012 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 2,501,813 | |||||
Dividends Payable, Date to be Paid | Jan. 31, 2014 | Dec. 31, 2012 | ||||
Cash dividends per share (in dollars per share) | $ 0.140 | $ 0.470 | $ 1.816 | |||
Cash dividends | $ 27.2 | $ 116.6 | ||||
Special Dividend [Member] | ||||||
Cash dividends per share (in dollars per share) | $ 0.35 | $ 1.712 | ||||
Regular Semi-Annual Dividend [Member] | ||||||
Cash dividends per share (in dollars per share) | $ 0.06 | $ 0.048 | ||||
Common Stock [Member] | ||||||
Repurchase of common stock, shares (in shares) | 36,354 | |||||
Repurchase of common stock, amounts (in dollars) | $ 1.3 | |||||
Common Class A [Member] | ||||||
Repurchase of common stock, shares (in shares) | 6,833 | 39,965 | ||||
Repurchase of common stock, amounts (in dollars) | $ 0.3 | $ 1.1 | ||||
Heico Aerospace [Member] | ||||||
Business Acquisition, Effective Date of Acquisition | Feb. 14, 2014 | |||||
Percentage of interest acquired in the subsidiary | 20.00% | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 80.00% | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | 20.00% | ||||
Net assets acquired, excluding cash | $ 67.4 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Shares Available for Grant [Roll Forward] | |||
Opening Balance Outstanding Shares (Shares Available For Grant) | 1,617 | 1,840 | 2,389 |
Shares approved by Shareholders (Shares Available for Grant) | 2,700 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | (291) | (161) | (549) |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | (62) | ||
Ending Balance Outstanding Shares (Shares Available For Grant) | 1,326 | 1,617 | 1,840 |
Shares Outstanding [Roll Forward] | |||
Outstanding (Shares Under Option) | 3,264 | 3,142 | 2,899 |
Granted (Shares Under Option) | 291 | 161 | 549 |
Exercised (Shares Under Option) | (220) | (39) | (306) |
Outstanding (Shares Under Option) | 3,335 | 3,264 | 3,142 |
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding (in dollars per share) | $ 22.59 | $ 21.48 | $ 16.90 |
Granted (in dollars per share) | 51.85 | 43.37 | 35.74 |
Exercised (in dollars per share) | 16.85 | 18.36 | 3.78 |
Outstanding (in dollars per share) | $ 25.52 | $ 22.59 | $ 21.48 |
SHARE-BASED COMPENSATION (Det81
SHARE-BASED COMPENSATION (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Number Outstanding (in shares) | 3,335 | 3,264 | 3,142 | 2,899 |
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 25.52 | $ 22.59 | $ 21.48 | $ 16.90 |
Outstanding Weighted Average Contractual Life (in years) | 5 years 7 months 6 days | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 73,197 | |||
Number Exercisable (in shares) | 2,250 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 19.73 | |||
Exercisable Weighted Average Contractual Life (in years) | 4 years 7 months 6 days | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 63,020 | |||
Heico Common Stock [Member] | ||||
Number Outstanding (in shares) | 1,579 | |||
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 23.54 | |||
Outstanding Weighted Average Contractual Life (in years) | 4 years 10 months 24 days | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 43,230 | |||
Number Exercisable (in shares) | 1,342 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 19.60 | |||
Exercisable Weighted Average Contractual Life (in years) | 4 years 3 months 18 days | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 41,376 | |||
Common Class A [Member] | ||||
Number Outstanding (in shares) | 1,756 | |||
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 27.30 | |||
Outstanding Weighted Average Contractual Life (in years) | 6 years 3 months 18 days | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 29,967 | |||
Number Exercisable (in shares) | 908 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 19.91 | |||
Exercisable Weighted Average Contractual Life (in years) | 5 years | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 21,644 |
SHARE-BASED COMPENSATION (Det82
SHARE-BASED COMPENSATION (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Proceeds from stock option exercises | $ 3,673 | $ 708 | $ 463 |
Tax benefit from stock option exercises | 1,402 | 93 | 5,191 |
Intrinsic value of stock option exercises | $ 6,958 | $ 929 | $ 8,033 |
SHARE-BASED COMPENSATION (Det83
SHARE-BASED COMPENSATION (Details 3) - $ / shares | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Common Class A [Member] | |||
Expected stock price volatility | 36.51% | 38.04% | 38.40% |
Risk-free interest rate | 2.12% | 2.06% | 1.85% |
Dividend yield | 0.32% | 0.38% | 0.33% |
Forfeiture rate | 0.00% | 0.00% | 0.00% |
Expected option life (years) | 7 years | 7 years | 7 years |
Weighted average fair value | $ 19.59 | $ 17.23 | $ 14.29 |
Heico Common Stock [Member] | |||
Expected stock price volatility | 39.96% | 39.94% | |
Risk-free interest rate | 2.30% | 2.02% | |
Dividend yield | 0.24% | 0.24% | |
Forfeiture rate | 0.00% | 0.00% | |
Expected option life (years) | 9 years | 9 years | |
Weighted average fair value | $ 28.46 | $ 20.24 |
SHARE-BASED COMPENSATION (Det84
SHARE-BASED COMPENSATION (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Shares approved by Shareholders (Shares Available for Grant) | 2,700,000 | |||
Number Outstanding (in shares) | 3,335,000 | 3,264,000 | 3,142,000 | 2,899,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 1,326,000 | 1,617,000 | 1,840,000 | 2,389,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||
Pre-tax unrecognized compensation expense related to nonvested stock options | $ 15,200 | |||
Pre-tax unrecognized compensation expense related to nonvested stock options, expected to be recognized over a weighted average period (in years) | 3 years 4 months 24 days | |||
Fair value of stock options, Vested | $ 5,500 | $ 5,900 | $ 4,500 | |
Excess tax benefit from stock option exercises | $ 1,402 | $ 93 | 5,126 | |
Deferred Compensation Arrangement with Individual, Shares Issued | 24,982 | |||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 62,455 | |||
Common Class A [Member] | ||||
Number Outstanding (in shares) | 1,756,000 | |||
Stock Option and Future Grants [Member] | ||||
Shares approved by Shareholders (Shares Available for Grant) | 4,600,000 | |||
Number Outstanding (in shares) | 3,300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 1,300,000 | |||
Restricted Stock [Member] | ||||
Allocated Share-based Compensation Expense | $ 200 | $ 200 | 100 | |
Pre-tax unrecognized compensation expense related to nonvested stock options | $ 500 | |||
Pre-tax unrecognized compensation expense related to nonvested stock options, expected to be recognized over a weighted average period (in years) | 2 years 2 months 12 days | |||
Employee Stock Option [Member] | ||||
Allocated Share-based Compensation Expense | $ 5,800 | 6,200 | 5,100 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 2,200 | $ 2,400 | $ 2,000 | |
Restricted Subsidiary Shares [Member] | ||||
Equity Method Investment, Ownership Percentage | 1.00% |
EMPLOYEE RETIREMENT PLANS EMP85
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Details 1) - shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Shares available for issuance, Opening Balance | 68 | 125 | 170 |
Issuance of common stock to 401(k) Plan | (54) | (57) | (45) |
Shares available for issuance, Ending Balance | 14 | 68 | 125 |
Common Class A [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares available for issuance, Opening Balance | 68 | 125 | 170 |
Issuance of common stock to 401(k) Plan | (54) | (57) | (45) |
Shares available for issuance, Ending Balance | 14 | 68 | 125 |
EMPLOYEE RETIREMENT PLANS EMP86
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Change in projected benefit obligation: | |||
Interest cost | $ 561 | ||
FY 2013 Acquisition [Member] | |||
Change in projected benefit obligation: | |||
Projected benefit obligation, Opening balance | 13,815 | $ 13,213 | |
Actuarial gain | 716 | 930 | |
Interest cost | 561 | 610 | $ 236 |
Benefits paid | (924) | (938) | |
Projected benefit obligation, Ending balance | 14,168 | 13,815 | 13,213 |
Change in plan assets: | |||
Fair value of plan assets, Opening balance | 11,359 | 11,397 | |
Actual return on plan assets | 254 | 764 | |
Employer contributions | 78 | 136 | |
Benefits paid | (924) | (938) | |
Fair value of plan assets, Ending balance | 10,767 | 11,359 | $ 11,397 |
Funded status | $ 3,401 | $ 2,456 |
EMPLOYEE RETIREMENT PLANS EMP87
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Details 3) - FY 2013 Acquisition [Member] | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Weighted Average Discount Rate [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.47% | 4.20% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.20% | 4.79% | 3.99% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.75% | 6.75% | 6.75% |
EMPLOYEE RETIREMENT PLANS EMP88
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | $ 738 | ||
Interest cost | 561 | ||
Net pension income | 177 | ||
FY 2013 Acquisition [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | $ 739 | $ 320 | |
Interest cost | $ 561 | 610 | 236 |
Net pension income | $ 129 | $ 84 |
EMPLOYEE RETIREMENT PLANS EMP89
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Details 5) - FY 2013 Acquisition [Member] $ in Thousands | Oct. 31, 2015USD ($) |
Year ending October 31, | |
2,016 | $ 914 |
2,017 | 907 |
2,018 | 883 |
2,019 | 915 |
2,020 | 918 |
2021-2025 | $ 4,436 |
EMPLOYEE RETIREMENT PLANS EMP90
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Details 6) - FY 2013 Acquisition [Member] - USD ($) $ in Thousands | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 10,767 | $ 11,359 | $ 11,397 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 10,767 | 11,359 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5,372 | 5,563 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5,372 | 5,563 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5,280 | 5,678 | |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5,280 | 5,678 | |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Money Market Funds and Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 115 | 118 | |
Money Market Funds and Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 115 | 118 | |
Money Market Funds and Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Money Market Funds and Cash [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
EMPLOYEE RETIREMENT PLANS EMP91
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Details 7) - FY 2013 Acquisition [Member] | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | 100.00% |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 50.00% | 49.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | 50.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 49.00% | 50.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | 50.00% |
Money Market Funds and Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 1.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | 0.00% |
EMPLOYEE RETIREMENT PLANS (Deta
EMPLOYEE RETIREMENT PLANS (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Defined contribution plan partcipants range minimum | 6.00% | ||
Defined contribution plan partcipants employees range maximum | 6.00% | ||
Defined contribution plan, vesting of employee contribution and cash dividends, percent | 100.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 6,100 | $ 6,300 | $ 3,200 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | $ 1,200 | 900 | |
Minimum [Member] | |||
Defined contribution plan partcipants range minimum | 25.00% | ||
Maximum [Member] | |||
Defined contribution plan partcipants range minimum | 50.00% | ||
FY 2013 Acquisition [Member] | |||
Employer contributions | $ 78 | 136 | |
Defined Benefit Plan, Funded Status of Plan | 3,401 | 2,456 | |
Defined Benefit Plan, Actuarial Gain (Loss) | (716) | (930) | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, before Reclassification Adjustments, Tax | (400) | $ (300) | |
Defined Benefit Plan, Actuarial Gain (Loss) before Tax | 1,100 | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 400 |
REDEEMABLE NONCONTROLLING INT93
REDEEMABLE NONCONTROLLING INTERESTS REDEEMABLE NONCONTROLLING INTERESTS (Details) | 12 Months Ended | ||||
Oct. 31, 2015 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2006 | Oct. 31, 2004 | |
Electronic Technologies Group [Member] | Subsidiary One [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2005 | ||||
Percentage of interest acquired in the subsidiary | 95.90% | 80.10% | |||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2016 | ||||
Put Rights Purchase Period | 4 years | ||||
Electronic Technologies Group [Member] | Subsidiary Four [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2009 | ||||
Percentage of interest acquired in the subsidiary | 82.50% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2016 | ||||
Put Rights Purchase Period | 1 year | ||||
Electronic Technologies Group [Member] | Subsidiary Six [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2012 | ||||
Percentage of interest acquired in the subsidiary | 78.00% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2017 | ||||
Put Rights Purchase Period | 2 years | ||||
Electronic Technologies Group [Member] | Subsidiary Twelve [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2015 | ||||
Percentage of interest acquired in the subsidiary | 80.10% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2020 | ||||
Put Rights Purchase Period | 2 years | ||||
Flight Support Group [Member] | Subsidiary Two [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2006 | ||||
Percentage of interest acquired in the subsidiary | 80.10% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2016 | ||||
Put Rights Purchase Period | 4 years | ||||
Flight Support Group [Member] | Subsidiary Three [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2008 | ||||
Percentage of interest acquired in the subsidiary | 82.30% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2016 | ||||
Put Rights Purchase Period | 5 years | ||||
Flight Support Group [Member] | Subsidiary Four [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest acquired in the subsidiary | 13.30% | 35.70% | 51.00% | ||
Flight Support Group [Member] | Subsidiary Five [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2011 | ||||
Percentage of interest acquired in the subsidiary | 80.10% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2016 | ||||
Put Rights Purchase Period | 2 years | ||||
Flight Support Group [Member] | Subsidiary Seven [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2012 | ||||
Percentage of interest acquired in the subsidiary | 84.00% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2018 | ||||
Put Rights Purchase Period | 4 years | ||||
Flight Support Group [Member] | Subsidiary Eight [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2012 | ||||
Percentage of interest acquired in the subsidiary | 80.10% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2019 | ||||
Put Rights Purchase Period | 4 years | ||||
Flight Support Group [Member] | Subsidiary Nine [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2015 | ||||
Percentage of interest acquired in the subsidiary | 80.00% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2019 | ||||
Put Rights Purchase Period | 4 years | ||||
Flight Support Group [Member] | Subsidiary Ten [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2015 | ||||
Percentage of interest acquired in the subsidiary | 80.10% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2020 | ||||
Put Rights Purchase Period | 4 years | ||||
Flight Support Group [Member] | Subsidiary Eleven [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2015 | ||||
Percentage of interest acquired in the subsidiary | 80.10% | ||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2022 | ||||
Put Rights Purchase Period | 4 years |
REDEEMABLE NONCONTROLLING INT94
REDEEMABLE NONCONTROLLING INTERESTS (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2006 | Oct. 31, 2004 | |
Business Acquisition [Line Items] | ||||||
Management's estimate of the aggregate redemption amount of all put rights | $ 91,282 | $ 39,966 | ||||
Estimated Redemption Amount of equity interest redeemable at fair value | 76,900 | |||||
Estimated Redemption Amount of equity interest redeemable based on a multiple of future earnings | 14,400 | |||||
Payments For Repurchase Of Redeemable Noncontrolling Interest | 0 | $ (1,243) | $ (16,610) | |||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate Redemption Amount Puttable | 35,000 | |||||
Potential Redemption Amount Payable | $ 20,100 | |||||
Subsidiary One [Member] | Electronic Technologies Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired in the subsidiary | 95.90% | 80.10% | ||||
Subsidiary Two [Member] | Flight Support Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired in the subsidiary | 80.10% | |||||
Subsidiary Three [Member] | Flight Support Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired in the subsidiary | 82.30% | |||||
Subsidiary Four [Member] | Electronic Technologies Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired in the subsidiary | 82.50% | |||||
Subsidiary Four [Member] | Flight Support Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired in the subsidiary | 13.30% | 35.70% | 51.00% | |||
Subsidiary Five [Member] | Flight Support Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired in the subsidiary | 80.10% | |||||
Subsidiary Six [Member] | Electronic Technologies Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired in the subsidiary | 78.00% |
NET INCOME PER SHARE ATTRIBUT95
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Net income attributable to HEICO | $ 38,250 | $ 34,369 | $ 33,105 | $ 27,640 | $ 32,105 | $ 33,366 | $ 28,367 | $ 27,455 | $ 133,364 | $ 121,293 | $ 102,396 |
Denominator: | |||||||||||
Weighted average common shares outstanding - basic | 66,740 | 66,463 | 66,298 | ||||||||
Effect of dilutive stock options | 1,071 | 990 | 684 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 67,811 | 67,453 | 66,982 | ||||||||
Basic | $ 0.57 | $ 0.51 | $ 0.50 | $ 0.42 | $ 0.48 | $ 0.50 | $ 0.43 | $ 0.41 | $ 2 | $ 1.82 | $ 1.54 |
Diluted | $ 0.56 | $ 0.51 | $ 0.49 | $ 0.41 | $ 0.48 | $ 0.49 | $ 0.42 | $ 0.41 | $ 1.97 | $ 1.80 | $ 1.53 |
Anti-dilutive stock options excluded | 412 | 430 | 754 |
QUARTERLY FINANCIAL INFORMATI96
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Net sales: | |||||||||||
Net sales | $ 328,672 | $ 300,370 | $ 291,421 | $ 268,185 | $ 292,223 | $ 291,030 | $ 282,232 | $ 266,826 | $ 1,188,648 | $ 1,132,311 | $ 1,008,757 |
Gross profit: | |||||||||||
Gross profit | 126,796 | 108,092 | 105,494 | 93,797 | 102,946 | 103,327 | 99,922 | 92,117 | |||
Net income from consolidated operations: | |||||||||||
Net income from consolidated operations | 44,031 | 38,938 | 38,504 | 32,091 | 36,078 | 37,352 | 32,780 | 32,562 | 153,564 | 138,772 | 124,561 |
Net income attributable to HEICO: | |||||||||||
Net income attributable to HEICO | $ 38,250 | $ 34,369 | $ 33,105 | $ 27,640 | $ 32,105 | $ 33,366 | $ 28,367 | $ 27,455 | $ 133,364 | $ 121,293 | $ 102,396 |
Basic: | |||||||||||
Basic (in dollars per share) | $ 0.57 | $ 0.51 | $ 0.50 | $ 0.42 | $ 0.48 | $ 0.50 | $ 0.43 | $ 0.41 | $ 2 | $ 1.82 | $ 1.54 |
Diluted: | |||||||||||
Diluted (in dollars per share) | $ 0.56 | $ 0.51 | $ 0.49 | $ 0.41 | $ 0.48 | $ 0.49 | $ 0.42 | $ 0.41 | $ 1.97 | $ 1.80 | $ 1.53 |
QUARTERLY FINANCIAL INFORMATI97
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details Textuals) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Jan. 31, 2014 | |
Net Income Impact From Research And Development Credits Net Of Expenses | $ 1.8 | |||
Earnings Per Share Impact From Research And Development Credits Net Of Expenses | $ 0.03 | |||
FY12 Acquisitions [Member] | ||||
Net Income Impact | $ 1.7 | |||
Earnings Per Share Impact | $ 0.03 | |||
FY 2013 Acquisition [Member] | ||||
Net Income Impact | $ 3.4 | $ 2.6 | ||
Earnings Per Share Impact | $ 0.05 | $ 0.04 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Net sales | $ 328,672 | $ 300,370 | $ 291,421 | $ 268,185 | $ 292,223 | $ 291,030 | $ 282,232 | $ 266,826 | $ 1,188,648 | $ 1,132,311 | $ 1,008,757 |
Depreciation | 17,830 | 17,068 | 13,372 | ||||||||
Amortization | 30,077 | 30,689 | 23,418 | ||||||||
Depreciation and amortization | 47,907 | 47,757 | 36,790 | ||||||||
Operating income | 229,656 | 203,388 | 183,590 | ||||||||
Capital expenditures | 18,249 | 16,410 | 18,328 | ||||||||
Total assets | 1,736,387 | 1,489,214 | 1,736,387 | 1,489,214 | 1,533,015 | ||||||
Flight Support Group [Member] | |||||||||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Net sales | 809,700 | 762,801 | 665,148 | ||||||||
Depreciation | 10,859 | 9,809 | 7,997 | ||||||||
Amortization | 13,470 | 10,034 | 6,617 | ||||||||
Operating income | 149,798 | 136,480 | 122,058 | ||||||||
Capital expenditures | 11,737 | 9,437 | 10,190 | ||||||||
Total assets | 868,218 | 676,824 | 868,218 | 676,824 | 679,839 | ||||||
Electronic Technologies Group [Member] | |||||||||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Net sales | 390,982 | 379,404 | 350,033 | ||||||||
Depreciation | 6,803 | 7,113 | 5,242 | ||||||||
Amortization | 15,945 | 19,993 | 16,150 | ||||||||
Operating income | 98,833 | 88,914 | 83,063 | ||||||||
Capital expenditures | 6,201 | 6,327 | 7,748 | ||||||||
Total assets | 746,018 | 703,144 | 746,018 | 703,144 | 759,807 | ||||||
Other Primarily Corporate and Inter Segment [Member] | |||||||||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Net sales | (12,034) | (9,894) | (6,424) | ||||||||
Depreciation | 168 | 146 | 133 | ||||||||
Amortization | 662 | 662 | 651 | ||||||||
Operating income | (18,975) | (22,006) | (21,531) | ||||||||
Capital expenditures | 311 | 646 | 390 | ||||||||
Total assets | $ 122,151 | $ 109,246 | $ 122,151 | $ 109,246 | $ 93,369 |
OPERATING SEGMENTS (Details 1)
OPERATING SEGMENTS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 328,672 | $ 300,370 | $ 291,421 | $ 268,185 | $ 292,223 | $ 291,030 | $ 282,232 | $ 266,826 | $ 1,188,648 | $ 1,132,311 | $ 1,008,757 |
Property, Plant and Equipment, Net | 105,670 | 93,865 | 105,670 | 93,865 | 97,737 | ||||||
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 785,567 | 754,616 | 654,096 | ||||||||
Property, Plant and Equipment, Net | 85,253 | 84,116 | 85,253 | 84,116 | 87,247 | ||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 403,081 | 377,695 | 354,661 | ||||||||
Property, Plant and Equipment, Net | $ 20,417 | $ 9,749 | $ 20,417 | $ 9,749 | $ 10,490 |
COMMITMENTS AND CONTINGENCIE100
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Oct. 31, 2015USD ($) |
Year One | $ 10,526 |
Year Two | 8,202 |
Year Three | 4,479 |
Year Four | 2,509 |
Year Five | 2,063 |
Thereafter | 8,943 |
Total minimum lease commitments | $ 36,722 |
COMMITMENTS AND CONTINGENCIE101
COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balances as of beginning of year | $ 4,079 | $ 3,233 |
Accruals for warranties | 1,215 | 3,005 |
Acquired warranty liabilities | 35 | 0 |
Warranty claims settled | (2,126) | (2,159) |
Balances as of end of year | $ 3,203 | $ 4,079 |
COMMITMENTS AND CONTINGENCIE102
COMMITMENTS AND CONTINGENCIES (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rent expense charged to operations for operating leases | $ 11.9 | $ 11.2 | $ 9.8 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 2.7 | ||
Standby letter of credit to meet the security requirement of its insurance company for potential workers' compensation claims | $ 1.5 |
SUPPLEMENTAL DISCLOSURES OF 103
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | |
Cash paid for income taxes | $ 76,021 | $ 72,723 | $ 62,631 |
Cash received from income tax refunds | (1,211) | (395) | (33) |
Cash paid for interest | 4,598 | 5,550 | 3,514 |
Other Significant Noncash Transaction, Value of Consideration Received | (204) | (56) | 2,068 |
Property, plant and equipment acquired through capital lease obligations | 59 | 131 | 0 |
Other Acquisitions [Member] | |||
Contingent purchase consideration | 21,355 | 0 | 20,654 |
Other Significant Noncash Transaction, Value of Consideration Received | $ (204) | $ (56) | $ 569 |
SUBSEQUENT EVENT SUBSEQUENT 104
SUBSEQUENT EVENT SUBSEQUENT EVENT (Details Textual) - Subsequent Event [Member] | 1 Months Ended |
Dec. 31, 2015 | |
Subsequent Event [Line Items] | |
Subsequent Event, Date | Dec. 31, 2015 |
Subsequent Event, Description | acquired all of the assets and assumed certain liabilities of a company that designs and manufactures underwater locator beacons used to locate aircraft cockpit voice recorders, flight data recorders, marine ship voyage recorders and other devices which have been submerged under water. |
VALUATION AND QUALIFYING ACC105
VALUATION AND QUALIFYING ACCOUNTS VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | ||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Opening Balance | $ 2,143 | $ 3,096 | $ 2,334 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 248 | 586 | ||
Deductions Charged to Costs and Expenses | (232) | |||
Deductions to Other Accounts | [1] | 31 | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [1] | 55 | 303 | |
Valuation Allowances and Reserves, Deductions | [2] | (408) | (690) | (127) |
Valuation Allowances and Reserves, Ending Balance | 2,038 | 2,143 | 3,096 | |
Inventory Valuation Reserve [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Opening Balance | 60,608 | 54,577 | 46,861 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 7,779 | 9,398 | 8,032 | |
Deductions to Other Accounts | [3] | 322 | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [3] | 4,598 | 3,148 | |
Valuation Allowances and Reserves, Deductions | [4] | (3,331) | (3,045) | (3,464) |
Valuation Allowances and Reserves, Ending Balance | $ 69,654 | $ 60,608 | $ 54,577 | |
[1] | Principally additions from acquisitions and foreign currency translation adjustments. | |||
[2] | Principally write-offs of uncollectible accounts receivable, net of recoveries. | |||
[3] | Principally additions from acquisitions and foreign currency translation adjustments | |||
[4] | Principally write-offs of slow-moving, obsolete or damaged inventory |