DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - $ / shares | 3 Months Ended | |
Jan. 31, 2017 | Feb. 28, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2017 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HEICO CORPORATION | |
Address | 3000 Taft Street, Hollywood, Florida | |
State | Florida | |
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 | |
Heico Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 26,979,679 | |
Entity Common Stock Par Value | $ 0.01 | |
Common Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 40,370,627 | |
Entity Common Stock Par Value | $ 0.01 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 45,905 | $ 42,955 |
Accounts receivable, net | 176,029 | 202,227 |
Inventories, net | 301,120 | 286,302 |
Prepaid expenses and other current assets | 13,197 | 11,674 |
Deferred income taxes | 38,954 | 41,063 |
Total current assets | 575,205 | 584,221 |
Property, plant and equipment, net | 121,881 | 121,611 |
Goodwill | 864,658 | 865,717 |
Intangible assets, net | 357,123 | 366,863 |
Deferred income taxes | 272 | 407 |
Other assets | 112,283 | 100,656 |
Total assets | 2,031,422 | 2,039,475 |
Current liabilities: | ||
Current maturities of long-term debt | 397 | 411 |
Trade accounts payable | 66,949 | 73,335 |
Accrued expenses and other current liabilities | 117,578 | 136,053 |
Income taxes payable | 11,796 | 4,622 |
Total current liabilities | 196,720 | 214,421 |
Long-term debt, net of current maturities | 416,932 | 457,814 |
Deferred income taxes | 103,233 | 105,962 |
Other long-term liabilities | 127,043 | 114,061 |
Total liabilities | 843,928 | 892,258 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 98,902 | 99,512 |
Shareholders' equity: | ||
Common Stock | 270 | 270 |
Capital in excess of par value | 309,901 | 306,328 |
Deferred compensation obligation | 2,320 | 2,460 |
HEICO stock held by irrevocable trust | (2,320) | (2,460) |
Accumulated other comprehensive loss | (26,547) | (25,326) |
Retained earnings | 717,764 | 681,704 |
Total HEICO shareholders' equity | 1,001,792 | 963,379 |
Noncontrolling interests | 86,800 | 84,326 |
Total shareholders' equity | 1,088,592 | 1,047,705 |
Total liabilities and equity | 2,031,422 | 2,039,475 |
Class A Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 404 | $ 403 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] - $ / shares shares in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 26,980 | 26,972 |
Common stock, shares outstanding | 26,980 | 26,972 |
Class A Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 40,370 | 40,317 |
Common stock, shares outstanding | 40,370 | 40,317 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Net sales | $ 343,432 | $ 306,227 |
Operating costs and expenses: | ||
Cost of sales | 218,015 | 194,031 |
Selling, general and administrative expenses | 60,867 | 59,575 |
Total operating costs and expenses | 278,882 | 253,606 |
Operating income | 64,550 | 52,621 |
Interest expense | (1,969) | (1,567) |
Other income | 484 | (430) |
Income before income taxes and noncontrolling interests | 63,065 | 50,624 |
Income tax expense | 16,800 | 14,700 |
Net income from consolidated operations | 46,265 | 35,924 |
Less: Net income attributable to noncontrolling interests | 5,338 | 4,653 |
Net income attributable to HEICO | $ 40,927 | $ 31,271 |
Net income per share attributable to HEICO shareholders: | ||
Basic (in dollars per share) | $ 0.61 | $ 0.47 |
Diluted (in dollars per share) | $ 0.59 | $ 0.46 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 67,314 | 66,875 |
Diluted (in shares) | 69,123 | 67,940 |
Cash dividends per share (in dollars per share) | $ 0.090 | $ 0.080 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Net income from consolidated operations | $ 46,265 | $ 35,924 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (1,524) | (2,667) |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 7 | 0 |
Total other comprehensive income (loss) | (1,517) | (2,667) |
Comprehensive income from consolidated operations | 44,748 | 33,257 |
Less: Comprehensive income attributable to noncontrolling interests | 5,338 | 4,653 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (296) | (204) |
Comprehensive income attributable to noncontrolling interests | 5,042 | 4,449 |
Comprehensive income attributable to HEICO | $ 39,706 | $ 28,808 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member] | Capital In Excess Of Par Value [Member] | Deferred Compensation Obligation [Member] | HEICO Stock Held By Irrevocable Trust [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total Shareholders Equity [Member] |
Starting Balance at Oct. 31, 2015 | $ 269 | $ 400 | $ 286,220 | $ 1,783 | $ (1,783) | $ (25,080) | $ 548,054 | $ 83,408 | $ 893,271 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | $ 33,257 | $ 1,972 | (2,463) | 31,271 | 2,477 | 31,285 | |||||
Cash dividends | (5,350) | (5,350) | |||||||||
Issuance of common stock to Savings and Investment Plan | 945 | 945 | |||||||||
Share-based compensation expense | 1,680 | 1,680 | |||||||||
Proceeds from stock option exercises | 94 | 94 | |||||||||
Tax benefit from stock option exercises | 871 | 871 | |||||||||
Distributions to noncontrolling interests | (1,860) | (836) | (836) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (258) | 258 | 258 | ||||||||
Stock Held During Period Value Deferred Compensation Obligation | (148) | ||||||||||
Stock Issued During Period Value Deferred Compensation Obligation | 148 | ||||||||||
Ending Balance at Jan. 31, 2016 | 269 | 400 | 289,810 | 1,635 | (1,635) | (27,543) | 574,233 | 85,049 | 922,218 | ||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2015 | 91,282 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jan. 31, 2016 | 91,136 | ||||||||||
Starting Balance at Oct. 31, 2016 | 1,047,705 | 270 | 403 | 306,328 | 2,460 | (2,460) | (25,326) | 681,704 | 84,326 | 1,047,705 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | 44,748 | 2,294 | (1,221) | 40,927 | 2,748 | 42,454 | |||||
Cash dividends | (6,059) | (6,059) | |||||||||
Issuance of common stock to Savings and Investment Plan | 893 | 893 | |||||||||
Share-based compensation expense | 1,451 | 1,451 | |||||||||
Proceeds from stock option exercises | 1 | 1,229 | 1,230 | ||||||||
Distributions to noncontrolling interests | (1,712) | (274) | (274) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (1,192) | 1,192 | 1,192 | ||||||||
Stock Held During Period Value Deferred Compensation Obligation | (140) | ||||||||||
Stock Issued During Period Value Deferred Compensation Obligation | 140 | ||||||||||
Ending Balance at Jan. 31, 2017 | 1,088,592 | $ 270 | $ 404 | $ 309,901 | $ 2,320 | $ (2,320) | $ (26,547) | $ 717,764 | $ 86,800 | $ 1,088,592 | |
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2016 | 99,512 | 99,512 | |||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jan. 31, 2017 | $ 98,902 | $ 98,902 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED [PARENTHETICAL] - $ / shares | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Cash dividends per share (in dollars per share) | $ 0.090 | $ 0.080 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Operating Activities: | ||
Net income from consolidated operations | $ 46,265 | $ 35,924 |
Adjustments to reconcile net income from consolidated operations to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 15,248 | 13,921 |
Employer contributions to HEICO Savings and Investment Plan | 1,714 | 1,417 |
Share-based compensation expense | 1,451 | 1,680 |
Increase (decrease) in value of contingent consideration | 537 | 847 |
Deferred income tax provision (benefit) | (346) | 2,276 |
Foreign currency transaction adjustments, net | (956) | (839) |
Tax benefit from stock option exercises | 871 | |
Excess tax benefit from stock option exercises | (871) | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Decrease in accounts receivable | 25,998 | 12,348 |
Increase in inventories | (14,989) | (2,326) |
(Increase) decrease in prepaid expenses and other current assets | (1,563) | (3,030) |
Decrease in trade accounts payable | (6,322) | (7,696) |
Decrease in accrued expenses and other current liabilities | (18,908) | (14,787) |
Increase in income taxes payable | 7,230 | 5,851 |
Other | 616 | (419) |
Net cash provided by operating activities | 55,975 | 45,167 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | (264,324) |
Capital expenditures | (6,422) | (5,690) |
Other | 419 | 474 |
Net cash used in investing activities | (6,003) | (269,540) |
Financing Activities: | ||
Borrowings on revolving credit facility | 0 | 260,000 |
Payments on revolving credit facility | (40,000) | (32,000) |
Cash dividends paid | (6,059) | (5,350) |
Distributions to noncontrolling interests | (1,986) | (2,696) |
Proceeds from stock option exercises | 1,230 | 94 |
Excess tax benefit from stock option exercises | 871 | |
Other | (108) | (86) |
Net cash (used in) provided by financing activities | (46,923) | 220,833 |
Effect of exchange rate changes on cash | (99) | (177) |
Net (decrease) increase in cash and cash equivalents | 2,950 | (3,717) |
Cash and cash equivalents at beginning of year | 42,955 | 33,603 |
Cash and cash equivalents at end of period | $ 45,905 | $ 29,886 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2016. The October 31, 2016 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the three months ended January 31, 2017 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09, as amended, 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 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. In February 2016, the FASB issued ASU 2016-02, “Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects related to accounting for share-based payment transactions. Under ASU 2016-09, all excess tax benefits and tax deficiencies are to be recognized in the statement of operations as a component of income tax expense rather than as capital in excess of par value. The Company adopted ASU 2016-09 in the first quarter of fiscal 2017 resulting in the recognition of a $3.1 million discrete income tax benefit, which, net of noncontrolling interests, increased net income attributable to HEICO by $2.6 million . Additionally, ASU 2016-09 requires excess tax benefits and deficiencies to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, which increased the Company's weighted average number of diluted common shares outstanding by 543,000 shares in the first quarter of fiscal 2017. Further, ASU 2016-09 requires excess tax benefits be presented within the statement of cash flows as an operating activity rather than as a financing activity. The Company adopted this change on a prospective basis, which resulted in a $3.1 million increase in cash provided by operating activities and cash used in financing activities in the first quarter of fiscal 2017. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which clarifies how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 provides guidance on eight specific cash flow classification issues including contingent consideration payments made after a business combination, proceeds from corporate-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 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 is permitted. ASU 2016-15 requires a retrospective transition approach for all periods presented. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment," which is intended to simplify the current test for goodwill impairment by eliminating the second step in which the implied value of a reporting unit is calculated when the carrying value of the reporting unit exceeds its fair value. Under ASU 2017-04, goodwill impairment should be recognized for the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 must be applied prospectively and is effective for any annual or interim goodwill impairment test in fiscal years beginning after December 15, 2019, or in fiscal 2021 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Jan. 31, 2017 | |
Selected Financial Statement Information [Abstract] | |
Selected Financial Statement Information [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable (in thousands) January 31, 2017 October 31, 2016 Accounts receivable $179,256 $205,386 Less: Allowance for doubtful accounts (3,227 ) (3,159 ) Accounts receivable, net $176,029 $202,227 Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts (in thousands) January 31, 2017 October 31, 2016 Costs incurred on uncompleted contracts $20,937 $19,086 Estimated earnings 14,110 13,887 35,047 32,973 Less: Billings to date (40,630 ) (39,142 ) ($5,583 ) ($6,169 ) Included in the accompanying Condensed Consolidated Balance Sheets under the following captions: Accounts receivable, net (costs and estimated earnings in excess of billings) $3,429 $4,839 Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) (9,012 ) (11,008 ) ($5,583 ) ($6,169 ) Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the three months ended January 31, 2017 and 2016. Inventories (in thousands) January 31, 2017 October 31, 2016 Finished products $138,889 $131,008 Work in process 38,427 36,076 Materials, parts, assemblies and supplies 120,443 117,153 Contracts in process 4,576 3,253 Less: Billings to date (1,215 ) (1,188 ) Inventories, net of valuation reserves $301,120 $286,302 Contracts in process represents accumulated capitalized costs associated with fixed price contracts. Related progress billings and customer advances (“billings to date”) are classified as a reduction to contracts in process, if any, and any excess is included in accrued expenses and other liabilities. Property, Plant and Equipment (in thousands) January 31, 2017 October 31, 2016 Land $5,094 $5,090 Buildings and improvements 83,434 79,205 Machinery, equipment and tooling 175,087 171,717 Construction in progress 8,318 10,453 271,933 266,465 Less: Accumulated depreciation and amortization (150,052 ) (144,854 ) Property, plant and equipment, net $121,881 $121,611 Accrued Customer Rebates and Credits The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $13.9 million and $11.9 million as of January 31, 2017 and October 31, 2016, respectively. The total customer rebates and credits deducted within net sales for the three months ended January 31, 2017 and 2016 was $2.4 million and $2.3 million , respectively. Research and Development Expenses The amount of new product research and development ("R&D") expenses included in cost of sales for the three months ended January 31, 2017 and 2016 is as follows (in thousands): Three months ended January 31, 2017 2016 R&D expenses $11,246 $9,007 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 a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): January 31, 2017 October 31, 2016 Redeemable at fair value $84,964 $85,574 Redeemable based on a multiple of future earnings 13,938 13,938 Redeemable noncontrolling interests $98,902 $99,512 Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss for the three months ended January 31, 2017 are as follows (in thousands): Foreign Currency Translation Pension Benefit Obligation Accumulated Other Comprehensive Loss Balances as of October 31, 2016 ($23,953 ) ($1,373 ) ($25,326 ) Unrealized loss (1,228 ) — (1,228 ) Amortization of unrealized loss on defined benefit pension plan, net of tax — 7 7 Balances as of January 31, 2017 ($25,181 ) ($1,366 ) ($26,547 ) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill by operating segment for the three months ended January 31, 2017 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2016 $336,681 $529,036 $865,717 Foreign currency translation adjustments (585 ) (474 ) (1,059 ) Balances as of January 31, 2017 $336,096 $528,562 $864,658 Foreign currency translation adjustments are included in other comprehensive loss in the Company's Condensed Consolidated Statements of Comprehensive Income. Identifiable intangible assets consist of the following (in thousands): As of January 31, 2017 As of October 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $247,681 ($94,834 ) $152,847 $248,271 ($88,829 ) $159,442 Intellectual property 139,518 (35,847 ) 103,671 139,817 (33,291 ) 106,526 Licenses 6,559 (2,476 ) 4,083 6,559 (2,325 ) 4,234 Non-compete agreements 814 (814 ) — 811 (811 ) — Patents 796 (492 ) 304 779 (480 ) 299 Trade names 466 (87 ) 379 466 (77 ) 389 395,834 (134,550 ) 261,284 396,703 (125,813 ) 270,890 Non-Amortizing Assets: Trade names 95,839 — 95,839 95,973 — 95,973 $491,673 ($134,550 ) $357,123 $492,676 ($125,813 ) $366,863 Amortization expense related to intangible assets for the three months ended January 31, 2017 and 2016 was $9.2 million and $8.3 million , respectively. Amortization expense related to intangible assets for the remainder of fiscal 2017 is estimated to be $27.3 million . Amortization expense for each of the next five fiscal years and thereafter is estimated to be $34.5 million in fiscal 2018, $32.4 million in fiscal 2019, $29.7 million in fiscal 2020, $27.2 million in fiscal 2021, $22.1 million in fiscal 2022, and $88.1 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): January 31, 2017 October 31, 2016 Borrowings under revolving credit facility $414,338 $455,083 Capital leases 2,991 3,142 417,329 458,225 Less: Current maturities of long-term debt (397 ) (411 ) $416,932 $457,814 The Company's borrowings under its revolving credit facility mature in fiscal 2019. As of January 31, 2017 and October 31, 2016, the weighted average interest rate on borrowings under the Company’s revolving credit facility was 1.8% and 1.6% , respectively. Borrowings under the revolving credit facility denominated in Euros were €32 million as of both January 31, 2017 and October 31, 2016 of which the U.S. dollar equivalent was $34.3 million and $35.1 million , respectively. The revolving credit facility contains both financial and non-financial covenants. As of January 31, 2017, the Company was in compliance with all such covenants. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company’s effective tax rate in the first quarter of fiscal 2017 decreased to 26.6% from 29.0% in the first quarter of fiscal 2016. The decrease principally reflects a $3.1 million discrete income tax benefit related to stock option exercises resulting from the adoption of ASU 2016-09 in the first quarter of fiscal 2017 (see Note 1, Summary of Significant Accounting Policies - New Accounting Pronouncements) and the favorable impact of higher tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the HEICO Corporation Leadership Compensation Plan. These decreases were partially offset by the benefit recognized in the first quarter of fiscal 2016 from the retroactive and permanent extension of the U.S. federal R&D tax credit that resulted in the recognition of additional income tax credits for qualified R&D activities related to the last ten months of fiscal 2015. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jan. 31, 2017 | |
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 January 31, 2017 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 $— $96,801 $— $96,801 Money market funds 4,123 — — 4,123 Equity securities 2,206 — — 2,206 Mutual funds 1,796 — — 1,796 Other 1,193 50 — 1,243 Total assets $9,318 $96,851 $— $106,169 Liabilities: Contingent consideration $— $— $19,045 $19,045 As of October 31, 2016 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 $— $86,004 $— $86,004 Money market funds 2,515 — — 2,515 Equity securities 1,832 — — 1,832 Mutual funds 1,758 — — 1,758 Other 1,043 50 — 1,093 Total assets $7,148 $86,054 $— $93,202 Liabilities: Contingent consideration $— $— $18,881 $18,881 The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan (the “LCP”) principally represent cash surrender values of life insurance policies, which derive their fair values from investments in mutual funds that are managed by an insurance company and are classified within Level 2 and valued using a market approach. Certain other assets of the LCP represent investments in money market funds that are classified within Level 1. The assets of the Company’s other deferred compensation plan are principally invested in equity securities and mutual funds that are classified within Level 1. The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $106.2 million as of January 31, 2017 and $93.2 million as of October 31, 2016, of which the LCP related assets were $100.9 million and $88.5 million as of January 31, 2017 and October 31, 2016, respectively. The related liabilities of the two deferred compensation plans are included within other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $105.7 million as of January 31, 2017 and $92.6 million as of October 31, 2016, of which the LCP related liability was $100.4 million and $87.9 million as of January 31, 2017 and October 31, 2016, respectively. As part of the agreement to acquire certain assets of a company by the ETG in fiscal 2016, the Company may be obligated to pay contingent consideration of up to $2.0 million in aggregate during the first five years following the acquisition. As of January 31, 2017, the estimated fair value of the contingent consideration was $1.3 million , of which $.2 million represents the portion expected to be paid in the second quarter of fiscal 2017 based on the actual earnings of the acquired entity during the first year following the acquisition. 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 €6.1 million per year, or €18.3 million in aggregate, should the acquired entity meet certain earnings objectives during each of the first three years following the first anniversary of the acquisition. As of January 31, 2017, the estimated fair value of the contingent consideration was €16.5 million , or $17.7 million , of which €6.1 million , or $6.6 million , represents the portion expected to be paid in fiscal 2017 based on the actual earnings of the acquired entity during the second year following the acquisition. The estimated fair value of the contingent consideration arrangements described above are classified within Level 3 and were 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 amounts were discounted using a weighted average discount rate reflecting the credit risk of a market participant. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's condensed consolidated statements of operations. The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of January 31, 2017 were as follows: Fiscal 2016 Acquisition Fiscal 2015 Acquisition Compound annual revenue growth rate range (3 %) - 10% 4 % - 20% Weighted average discount rate 3.8% 1.7% Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended January 31, 2017 are as follows (in thousands): Balance as of October 31, 2016 $18,881 Increase in accrued contingent consideration 537 Foreign currency transaction adjustments (373 ) Balance as of January 31, 2017 $19,045 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $6,806 Other long-term liabilities 12,239 $19,045 The Company recorded the increase in accrued contingent consideration and foreign currency transaction adjustments set forth in the table above within selling, general and administrative expenses in the Company's Condensed Consolidated Statement of Operations. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the three months ended January 31, 2017. 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 January 31, 2017 due to the relatively short maturity of the respective instruments. The carrying amount of long-term debt approximates fair value due to its variable interest rates. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 3 Months Ended |
Jan. 31, 2017 | |
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): Three months ended January 31, 2017 2016 Numerator: Net income attributable to HEICO $40,927 $31,271 Denominator: Weighted average common shares outstanding - basic 67,314 66,875 Effect of dilutive stock options 1,809 1,065 Weighted average common shares outstanding - diluted 69,123 67,940 Net income per share attributable to HEICO shareholders: Basic $.61 $.47 Diluted $.59 $.46 Anti-dilutive stock options excluded 137 715 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 3 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS Information on the Company’s two operating segments, the FSG and the ETG, for the three months ended January 31, 2017 and 2016, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Three months ended January 31, 2017: Net sales $220,901 $126,165 ($3,634 ) $343,432 Depreciation 3,148 2,043 53 5,244 Amortization 4,104 5,735 165 10,004 Operating income 41,363 29,084 (5,897 ) 64,550 Capital expenditures 3,872 2,504 46 6,422 Three months ended January 31, 2016: Net sales $204,576 $104,152 ($2,501 ) $306,227 Depreciation 2,950 1,852 56 4,858 Amortization 4,128 4,770 165 9,063 Operating income 35,480 22,269 (5,128 ) 52,621 Capital expenditures 3,705 1,683 302 5,690 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. Total assets by operating segment as of January 31, 2017 and October 31, 2016 are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of January 31, 2017 $871,148 $1,004,554 $155,720 $2,031,422 Total assets as of October 31, 2016 878,674 1,017,827 142,974 2,039,475 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees As of January 31, 2017, the Company has arranged for standby letters of credit aggregating $2.9 million , which are supported by its revolving credit facility and pertain to payment guarantees related to potential workers' compensation claims and a facility lease as well as performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries. Product Warranty Changes in the Company’s product warranty liability for the three months ended January 31, 2017 and 2016, respectively, are as follows (in thousands): Three months ended January 31, 2017 2016 Balances as of beginning of year $3,351 $3,203 Accruals for warranties 782 301 Warranty claims settled (619 ) (534 ) Balances as of January 31 $3,514 $2,970 Litigation The Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2016. The October 31, 2016 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the three months ended January 31, 2017 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. |
New Accounting Pronouncements [Text Block] | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09, as amended, 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 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. In February 2016, the FASB issued ASU 2016-02, “Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects related to accounting for share-based payment transactions. Under ASU 2016-09, all excess tax benefits and tax deficiencies are to be recognized in the statement of operations as a component of income tax expense rather than as capital in excess of par value. The Company adopted ASU 2016-09 in the first quarter of fiscal 2017 resulting in the recognition of a $3.1 million discrete income tax benefit, which, net of noncontrolling interests, increased net income attributable to HEICO by $2.6 million . Additionally, ASU 2016-09 requires excess tax benefits and deficiencies to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, which increased the Company's weighted average number of diluted common shares outstanding by 543,000 shares in the first quarter of fiscal 2017. Further, ASU 2016-09 requires excess tax benefits be presented within the statement of cash flows as an operating activity rather than as a financing activity. The Company adopted this change on a prospective basis, which resulted in a $3.1 million increase in cash provided by operating activities and cash used in financing activities in the first quarter of fiscal 2017. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which clarifies how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 provides guidance on eight specific cash flow classification issues including contingent consideration payments made after a business combination, proceeds from corporate-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 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 is permitted. ASU 2016-15 requires a retrospective transition approach for all periods presented. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment," which is intended to simplify the current test for goodwill impairment by eliminating the second step in which the implied value of a reporting unit is calculated when the carrying value of the reporting unit exceeds its fair value. Under ASU 2017-04, goodwill impairment should be recognized for the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 must be applied prospectively and is effective for any annual or interim goodwill impairment test in fiscal years beginning after December 15, 2019, or in fiscal 2021 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. |
SELECTED FINANCIAL STATEMENT 19
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands) January 31, 2017 October 31, 2016 Accounts receivable $179,256 $205,386 Less: Allowance for doubtful accounts (3,227 ) (3,159 ) Accounts receivable, net $176,029 $202,227 |
Schedule of Costs in Excess of Billings and Billings in Excess of Costs [Table Text Block] | Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts (in thousands) January 31, 2017 October 31, 2016 Costs incurred on uncompleted contracts $20,937 $19,086 Estimated earnings 14,110 13,887 35,047 32,973 Less: Billings to date (40,630 ) (39,142 ) ($5,583 ) ($6,169 ) Included in the accompanying Condensed Consolidated Balance Sheets under the following captions: Accounts receivable, net (costs and estimated earnings in excess of billings) $3,429 $4,839 Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) (9,012 ) (11,008 ) ($5,583 ) ($6,169 ) |
Schedule of Inventories [Table Text Block] | Inventories (in thousands) January 31, 2017 October 31, 2016 Finished products $138,889 $131,008 Work in process 38,427 36,076 Materials, parts, assemblies and supplies 120,443 117,153 Contracts in process 4,576 3,253 Less: Billings to date (1,215 ) (1,188 ) Inventories, net of valuation reserves $301,120 $286,302 |
Schedule of Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment (in thousands) January 31, 2017 October 31, 2016 Land $5,094 $5,090 Buildings and improvements 83,434 79,205 Machinery, equipment and tooling 175,087 171,717 Construction in progress 8,318 10,453 271,933 266,465 Less: Accumulated depreciation and amortization (150,052 ) (144,854 ) Property, plant and equipment, net $121,881 $121,611 |
Schedule of Research and Development Expenses [Table Text Block] | The amount of new product research and development ("R&D") expenses included in cost of sales for the three months ended January 31, 2017 and 2016 is as follows (in thousands): Three months ended January 31, 2017 2016 R&D expenses $11,246 $9,007 |
Schedule of Redeemable Noncontrolling Interests [Table Text Block] | Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): January 31, 2017 October 31, 2016 Redeemable at fair value $84,964 $85,574 Redeemable based on a multiple of future earnings 13,938 13,938 Redeemable noncontrolling interests $98,902 $99,512 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive loss for the three months ended January 31, 2017 are as follows (in thousands): Foreign Currency Translation Pension Benefit Obligation Accumulated Other Comprehensive Loss Balances as of October 31, 2016 ($23,953 ) ($1,373 ) ($25,326 ) Unrealized loss (1,228 ) — (1,228 ) Amortization of unrealized loss on defined benefit pension plan, net of tax — 7 7 Balances as of January 31, 2017 ($25,181 ) ($1,366 ) ($26,547 ) |
GOODWILL AND OTHER INTANGIBLE20
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by operating segment for the three months ended January 31, 2017 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2016 $336,681 $529,036 $865,717 Foreign currency translation adjustments (585 ) (474 ) (1,059 ) Balances as of January 31, 2017 $336,096 $528,562 $864,658 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of January 31, 2017 As of October 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $247,681 ($94,834 ) $152,847 $248,271 ($88,829 ) $159,442 Intellectual property 139,518 (35,847 ) 103,671 139,817 (33,291 ) 106,526 Licenses 6,559 (2,476 ) 4,083 6,559 (2,325 ) 4,234 Non-compete agreements 814 (814 ) — 811 (811 ) — Patents 796 (492 ) 304 779 (480 ) 299 Trade names 466 (87 ) 379 466 (77 ) 389 395,834 (134,550 ) 261,284 396,703 (125,813 ) 270,890 Non-Amortizing Assets: Trade names 95,839 — 95,839 95,973 — 95,973 $491,673 ($134,550 ) $357,123 $492,676 ($125,813 ) $366,863 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): January 31, 2017 October 31, 2016 Borrowings under revolving credit facility $414,338 $455,083 Capital leases 2,991 3,142 417,329 458,225 Less: Current maturities of long-term debt (397 ) (411 ) $416,932 $457,814 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
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 January 31, 2017 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 $— $96,801 $— $96,801 Money market funds 4,123 — — 4,123 Equity securities 2,206 — — 2,206 Mutual funds 1,796 — — 1,796 Other 1,193 50 — 1,243 Total assets $9,318 $96,851 $— $106,169 Liabilities: Contingent consideration $— $— $19,045 $19,045 As of October 31, 2016 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 $— $86,004 $— $86,004 Money market funds 2,515 — — 2,515 Equity securities 1,832 — — 1,832 Mutual funds 1,758 — — 1,758 Other 1,043 50 — 1,093 Total assets $7,148 $86,054 $— $93,202 Liabilities: Contingent consideration $— $— $18,881 $18,881 |
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 January 31, 2017 were as follows: Fiscal 2016 Acquisition Fiscal 2015 Acquisition Compound annual revenue growth rate range (3 %) - 10% 4 % - 20% Weighted average discount rate 3.8% 1.7% |
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 three months ended January 31, 2017 are as follows (in thousands): Balance as of October 31, 2016 $18,881 Increase in accrued contingent consideration 537 Foreign currency transaction adjustments (373 ) Balance as of January 31, 2017 $19,045 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $6,806 Other long-term liabilities 12,239 $19,045 |
NET INCOME PER SHARE ATTRIBUT23
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): Three months ended January 31, 2017 2016 Numerator: Net income attributable to HEICO $40,927 $31,271 Denominator: Weighted average common shares outstanding - basic 67,314 66,875 Effect of dilutive stock options 1,809 1,065 Weighted average common shares outstanding - diluted 69,123 67,940 Net income per share attributable to HEICO shareholders: Basic $.61 $.47 Diluted $.59 $.46 Anti-dilutive stock options excluded 137 715 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
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 the three months ended January 31, 2017 and 2016, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Three months ended January 31, 2017: Net sales $220,901 $126,165 ($3,634 ) $343,432 Depreciation 3,148 2,043 53 5,244 Amortization 4,104 5,735 165 10,004 Operating income 41,363 29,084 (5,897 ) 64,550 Capital expenditures 3,872 2,504 46 6,422 Three months ended January 31, 2016: Net sales $204,576 $104,152 ($2,501 ) $306,227 Depreciation 2,950 1,852 56 4,858 Amortization 4,128 4,770 165 9,063 Operating income 35,480 22,269 (5,128 ) 52,621 Capital expenditures 3,705 1,683 302 5,690 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by operating segment as of January 31, 2017 and October 31, 2016 are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of January 31, 2017 $871,148 $1,004,554 $155,720 $2,031,422 Total assets as of October 31, 2016 878,674 1,017,827 142,974 2,039,475 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability for the three months ended January 31, 2017 and 2016, respectively, are as follows (in thousands): Three months ended January 31, 2017 2016 Balances as of beginning of year $3,351 $3,203 Accruals for warranties 782 301 Warranty claims settled (619 ) (534 ) Balances as of January 31 $3,514 $2,970 |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Net Income (Loss) Attributable to Parent | $ 40,927 | $ 31,271 |
Weighted Average Number of Shares Outstanding, Diluted | 69,123 | 67,940 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3,100 | |
Net Income (Loss) Attributable to Parent | $ 2,600 | |
Weighted Average Number of Shares Outstanding, Diluted | 543 |
SELECTED FINANCIAL STATEMENT 27
SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 179,256 | $ 205,386 |
Less: Allowance for doubtful accounts | (3,227) | (3,159) |
Accounts receivable, net | $ 176,029 | $ 202,227 |
SELECTED FINANCIAL STATEMENT 28
SELECTED FINANCIAL STATEMENT INFORMATION (Costs and Estimated Earnings on Uncompleted POC Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jan. 31, 2017 | Oct. 31, 2016 | |
Costs incurred on uncompleted contracts | $ 20,937 | $ 19,086 |
Estimated Earnings | 14,110 | 13,887 |
Estimated Revenue on Completed Percentage-of-Completion Contracts | 35,047 | 32,973 |
Billed Contracts Receivable | (40,630) | (39,142) |
Unbilled Contracts Receivable | (5,583) | (6,169) |
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions: | ||
Accounts receivable, net (costs and estimated earnings in excess of billings) | 3,429 | 4,839 |
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) | (9,012) | (11,008) |
Unbilled Contracts Receivable | $ (5,583) | $ (6,169) |
SELECTED FINANCIAL STATEMENT 29
SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Inventory [Line Items] | ||
Finished products | $ 138,889 | $ 131,008 |
Work in process | 38,427 | 36,076 |
Materials, parts, assemblies and supplies | 120,443 | 117,153 |
Contracts in process | 4,576 | 3,253 |
Less: Billings to date | (1,215) | (1,188) |
Inventories, net of valuation reserves | $ 301,120 | $ 286,302 |
SELECTED FINANCIAL STATEMENT 30
SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 5,094 | $ 5,090 |
Buildings and improvements | 83,434 | 79,205 |
Machinery, equipment and tooling | 175,087 | 171,717 |
Construction in progress | 8,318 | 10,453 |
Property, plant and equipment, gross | 271,933 | 266,465 |
Less: Accumulated depreciation and amortization | (150,052) | (144,854) |
Property, plant and equipment, net | $ 121,881 | $ 121,611 |
SELECTED FINANCIAL STATEMENT 31
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Selected Financial Statement Information (Details) [Abstract] | ||
R&D expenses | $ 11,246 | $ 9,007 |
SELECTED FINANCIAL STATEMENT 32
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable at fair value | $ 84,964 | $ 85,574 |
Redeemable based on a multiple of future earnings | 13,938 | 13,938 |
Redeemable noncontrolling interests | $ 98,902 | $ 99,512 |
SELECTED FINANCIAL STATEMENT 33
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Starting accumulated other comprehensive loss | $ (25,326) | |
Amortization of unrealized loss on defined pension plan, net of tax | 7 | $ 0 |
Ending accumulated other comprehensive loss | (26,547) | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Starting accumulated other comprehensive loss | (23,953) | |
Unrealized loss | (1,228) | |
Ending accumulated other comprehensive loss | (25,181) | |
Pension Benefit Obligation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Starting accumulated other comprehensive loss | (1,373) | |
Amortization of unrealized loss on defined pension plan, net of tax | 7 | |
Ending accumulated other comprehensive loss | (1,366) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Starting accumulated other comprehensive loss | (25,326) | |
Unrealized loss | (1,228) | |
Amortization of unrealized loss on defined pension plan, net of tax | 7 | |
Ending accumulated other comprehensive loss | $ (26,547) |
SELECTED FINANCIAL STATEMENT 34
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 | |
Selected Financial Statement Information (Details) [Abstract] | |||
Accrued customer rebates and credits | $ 13.9 | $ 11.9 | |
Total customer rebates and credits deducted within net sales | $ 2.4 | $ 2.3 |
GOODWILL AND OTHER INTANGIBLE35
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands | 3 Months Ended |
Jan. 31, 2017USD ($) | |
Goodwill [Line Items] | |
Opening Balance | $ 865,717 |
Foreign currency translation adjustments | (1,059) |
Ending Balance | 864,658 |
Flight Support Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 336,681 |
Foreign currency translation adjustments | (585) |
Ending Balance | 336,096 |
Electronic Technologies Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 529,036 |
Foreign currency translation adjustments | (474) |
Ending Balance | $ 528,562 |
GOODWILL AND OTHER INTANGIBLE36
GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 395,834 | $ 396,703 |
Accumulated Amortization | (134,550) | (125,813) |
Net Carrying Amount | 261,284 | 270,890 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Asset Gross Carrying Amount | 491,673 | 492,676 |
Intangible Asset Net Carrying Amount | 357,123 | 366,863 |
Trade Names [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 95,839 | 95,973 |
Net Carrying Amount | 95,839 | 95,973 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 247,681 | 248,271 |
Accumulated Amortization | (94,834) | (88,829) |
Net Carrying Amount | 152,847 | 159,442 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 139,518 | 139,817 |
Accumulated Amortization | (35,847) | (33,291) |
Net Carrying Amount | 103,671 | 106,526 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 6,559 | 6,559 |
Accumulated Amortization | (2,476) | (2,325) |
Net Carrying Amount | 4,083 | 4,234 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 814 | 811 |
Accumulated Amortization | (814) | (811) |
Net Carrying Amount | 0 | 0 |
Patents [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 796 | 779 |
Accumulated Amortization | (492) | (480) |
Net Carrying Amount | 304 | 299 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 466 | 466 |
Accumulated Amortization | (87) | (77) |
Net Carrying Amount | $ 379 | $ 389 |
GOODWILL AND OTHER INTANGIBLE37
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense related to intangible assets | $ 9.2 | $ 8.3 |
Estimated Amortization Expense, remainder of the fiscal year | 27.3 | |
Estimated Amortization Expense, for the next fiscal year | 34.5 | |
Estimated Amortization Expense, for the next fiscal year 2 | 32.4 | |
Estimated Amortization Expense, for the next fiscal year 3 | 29.7 | |
Estimated Amortization Expense, for the next fiscal year 4 | 27.2 | |
Estimated Amortization Expense, for the next fiscal year 5 | 22.1 | |
Estimated Amortization Expense, thereafter | $ 88.1 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Borrowings under revolving credit facility | $ 414,338 | $ 455,083 |
Capital leases | 2,991 | 3,142 |
Total debt and capital leases | 417,329 | 458,225 |
Less: Current maturities of long-term debt | (397) | (411) |
Long-term debt, net of current maturities | $ 416,932 | $ 457,814 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) € in Millions, $ in Millions | Jan. 31, 2017EUR (€) | Jan. 31, 2017USD ($) | Oct. 31, 2016EUR (€) | Oct. 31, 2016USD ($) |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.80% | 1.80% | 1.60% | 1.60% |
Foreign Line of Credit [Member] | Euro Member Countries, Euro | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | € 32 | $ 34.3 | € 32 | $ 35.1 |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Effective Income Tax Rate, Continuing Operations | 26.60% | 29.00% |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3.1 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy, by Category) (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 106,169 | $ 93,202 |
Liabilities: | ||
Contingent consideration | 19,045 | 18,881 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 9,318 | 7,148 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 96,851 | 86,054 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Contingent consideration | 19,045 | 18,881 |
Corporate Owned Life Insurance [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 96,801 | 86,004 |
Corporate Owned Life Insurance [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 96,801 | 86,004 |
Money Market Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 4,123 | 2,515 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 4,123 | 2,515 |
Equity Securities [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 2,206 | 1,832 |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 2,206 | 1,832 |
Equity Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,796 | 1,758 |
Equity Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,796 | 1,758 |
Other Defined Deferred Compensation Plan [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,243 | 1,093 |
Other Defined Deferred Compensation Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,193 | 1,043 |
Other Defined Deferred Compensation Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 50 | $ 50 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] | 3 Months Ended |
Jan. 31, 2017 | |
FY 2016 Acquisition [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Weighted average discount rate | 3.80% |
FY 2016 Acquisition [Member] | Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Compound annual revenue growth rate range (negative) | (3.00%) |
FY 2016 Acquisition [Member] | Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Compound annual revenue growth rate range | 10.00% |
FY 2015 Acquisition [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Weighted average discount rate | 1.70% |
FY 2015 Acquisition [Member] | Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Compound annual revenue growth rate range | 4.00% |
FY 2015 Acquisition [Member] | Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Compound annual revenue growth rate range | 20.00% |
FAIR VALUE MEASUREMENTS (Contin
FAIR VALUE MEASUREMENTS (Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Oct. 31, 2016 | |
Liabilities [Abstract] | ||
Accrued expenses and other current liabilities | $ 117,578 | $ 136,053 |
Other long-term liabilities | 127,043 | 114,061 |
Total liabilities | 843,928 | $ 892,258 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Opening Balances, Liabilities | 18,881 | |
Increase in accrued contingent consideration | 537 | |
Foreign currency transaction adjustments | (373) | |
Ending Balances, Liabilities | 19,045 | |
Liabilities [Abstract] | ||
Accrued expenses and other current liabilities | 6,806 | |
Other long-term liabilities | 12,239 | |
Total liabilities | $ 19,045 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, € in Millions | Jan. 31, 2017EUR (€) | Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held within irrevocable trusts and classified within other assets | $ 106,169 | $ 93,202 | |
Related liabilities of deferred compensation plans, specified as other long-term liabilities | 105,700 | 92,600 | |
Business Combinations [Abstract] | |||
Fair Value Contingent Consideration, Liability | 19,045 | 18,881 | |
Aggregate LCP Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held within irrevocable trusts and classified within other assets | 100,900 | 88,500 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held within irrevocable trusts and classified within other assets | 96,851 | 86,054 | |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Owned Life Insurance [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Related liabilities of deferred compensation plans, specified as other long-term liabilities | 100,400 | 87,900 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Business Combinations [Abstract] | |||
Fair Value Contingent Consideration, Liability | 19,045 | $ 18,881 | |
Flight Support Group [Member] | FY 2015 Acquisition [Member] | |||
Business Combinations [Abstract] | |||
Fair Value Contingent Consideration, Liability | 17,700 | ||
Fair Value Contingent Consideration, Liability, Current | 6,600 | ||
Flight Support Group [Member] | Euro Member Countries, Euro | FY 2015 Acquisition [Member] | |||
Business Combinations [Abstract] | |||
Contingent Consideration Arrangements, Per Year Amount | € | € 6.1 | ||
Aggregate Contingent Consideration Arrangements | € | 18.3 | ||
Fair Value Contingent Consideration, Liability | € | 16.5 | ||
Fair Value Contingent Consideration, Liability, Current | € | € 6.1 | ||
Electronic Technologies Group [Member] | FY 2016 Acquisition [Member] | |||
Business Combinations [Abstract] | |||
Aggregate Contingent Consideration Arrangements | 2,000 | ||
Fair Value Contingent Consideration, Liability | 1,300 | ||
Fair Value Contingent Consideration, Liability, Current | $ 200 |
NET INCOME PER SHARE ATTRIBUT45
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Numerator: | ||
Net income attributable to HEICO | $ 40,927 | $ 31,271 |
Denominator: | ||
Weighted Average Number of Shares Outstanding, Basic | 67,314 | 66,875 |
Effect of dilutive stock options | 1,809 | 1,065 |
Weighted Average Number of Shares Outstanding, Diluted | 69,123 | 67,940 |
Earnings Per Share, Basic | $ 0.61 | $ 0.47 |
Earnings Per Share, Diluted | $ 0.59 | $ 0.46 |
Anti-dilutive stock options excluded | 137 | 715 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 343,432 | $ 306,227 |
Depreciation | 5,244 | 4,858 |
Amortization | 10,004 | 9,063 |
Operating income | 64,550 | 52,621 |
Capital expenditures | 6,422 | 5,690 |
Corporate, Non-Segment [Member] | Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation | 53 | 56 |
Amortization | 165 | 165 |
Operating income | (5,897) | (5,128) |
Capital expenditures | 46 | 302 |
Operating Segments [Member] | Flight Support Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 220,901 | 204,576 |
Depreciation | 3,148 | 2,950 |
Amortization | 4,104 | 4,128 |
Operating income | 41,363 | 35,480 |
Capital expenditures | 3,872 | 3,705 |
Operating Segments [Member] | Electronic Technologies Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 126,165 | 104,152 |
Depreciation | 2,043 | 1,852 |
Amortization | 5,735 | 4,770 |
Operating income | 29,084 | 22,269 |
Capital expenditures | 2,504 | 1,683 |
Intersegment Eliminations [Member] | Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ (3,634) | $ (2,501) |
OPERATING SEGMENTS (Details 1)
OPERATING SEGMENTS (Details 1) - USD ($) $ in Thousands | Jan. 31, 2017 | Oct. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,031,422 | $ 2,039,475 |
Flight Support Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 871,148 | 878,674 |
Other Primarily Corporate and Inter Segment [Member] | Corporate, Non-Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 155,720 | 142,974 |
Electronic Technologies Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,004,554 | $ 1,017,827 |
COMMITMENTS AND CONTINGENCIES48
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Schedule of Product Warranties [Line Items] | ||
Balances as of beginning of fiscal year | $ 3,351 | $ 3,203 |
Accruals for warranties | 782 | 301 |
Warranty claims settled | (619) | (534) |
Balances as of January 31 | $ 3,514 | $ 2,970 |
COMMITMENTS AND CONTINGENCIES49
COMMITMENTS AND CONTINGENCIES (Details Textuals) $ in Millions | Jan. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 2.9 |