DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Oct. 31, 2018 | Dec. 18, 2018 | Apr. 30, 2018 | |
Document Entity Information [Abstract] | |||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Oct. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Amendment Flag | false | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7,696,256,000 | ||
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 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Common Class A [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 79,575,592 | ||
Trading Symbol | hei.a | ||
Entity Listing, Par Value Per Share | $ 0.01 | ||
Heico Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 53,355,169 | ||
Trading Symbol | hei | ||
Entity Listing, Par Value Per Share | $ 0.01 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 59,599 | $ 52,066 |
Accounts receivable, net | 251,469 | 222,456 |
Inventories, net | 401,553 | 343,628 |
Prepaid expenses and other current assets | 21,187 | 13,742 |
Total current assets | 733,808 | 631,892 |
Property, plant and equipment, net | 154,739 | 129,883 |
Goodwill | 1,114,832 | 1,081,306 |
Intangible assets, net | 506,360 | 538,081 |
Other assets | 143,657 | 131,269 |
Total assets | 2,653,396 | 2,512,431 |
Current liabilities: | ||
Current maturities of long-term debt | 859 | 451 |
Trade accounts payable | 107,219 | 89,724 |
Accrued expenses and other current liabilities | 171,514 | 147,612 |
Income taxes payable | 2,837 | 11,650 |
Total current liabilities | 282,429 | 249,437 |
Long-term debt, net of current maturities | 531,611 | 673,528 |
Deferred income taxes | 46,644 | 59,026 |
Other long-term liabilities | 157,658 | 151,025 |
Total liabilities | 1,018,342 | 1,133,016 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 132,046 | 131,123 |
Shareholders' equity: | ||
Preferred Stock | 0 | 0 |
Common Stock | 534 | 338 |
Capital in excess of par value | 320,994 | 326,544 |
Deferred compensation obligation | 3,928 | 3,118 |
HEICO stock held by irrevocable trust | (3,928) | (3,118) |
Accumulated other comprehensive (loss) income | (15,256) | (10,556) |
Retained earnings | 1,091,183 | 844,247 |
Total HEICO shareholders' equity | 1,398,251 | 1,161,080 |
Noncontrolling interests | 104,757 | 87,212 |
Total shareholders' equity | 1,503,008 | 1,248,292 |
Total liabilities and equity | 2,653,396 | 2,512,431 |
Common Class A [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 796 | $ 507 |
CONSOLIDATED BALANCE SHEETS _PA
CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] - $ / shares shares in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 10,000 | 10,000 |
Preferred Stock, shares issued | 0 | 0 |
Common stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 53,355 | 52,776 |
Common stock, shares outstanding | 53,355 | 52,776 |
Common Class A [Member] | ||
Common stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 79,576 | 79,227 |
Common stock, shares outstanding | 79,576 | 79,227 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Net sales | $ 1,777,721 | $ 1,524,813 | $ 1,376,258 |
Operating costs and expenses: | |||
Cost of sales | 1,087,006 | 950,088 | 860,766 |
Selling, general and administrative expenses | 314,470 | 268,067 | 250,147 |
Total operating costs and expenses | 1,401,476 | 1,218,155 | 1,110,913 |
Operating income | 376,245 | 306,658 | 265,345 |
Interest expense | (19,901) | (9,790) | (8,272) |
Other income | (58) | 1,092 | (23) |
Income before taxes and noncontrolling interests | 356,286 | 297,960 | 257,050 |
Income tax expense | 70,600 | 90,300 | 80,900 |
Net income from consolidated operations | 285,686 | 207,660 | 176,150 |
Less: Net income attributable to noncontrolling interests | 26,453 | 21,675 | 19,958 |
Net income attributable to HEICO | $ 259,233 | $ 185,985 | $ 156,192 |
Net income per share attributable to HEICO shareholders: | |||
Basic (in dollars per share) | $ 1.96 | $ 1.41 | $ 1.19 |
Diluted (in dollars per share) | $ 1.90 | $ 1.37 | $ 1.17 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 132,543 | 131,703 | 130,948 |
Diluted (in shares) | 136,696 | 135,588 | 133,145 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Net income from consolidated operations | $ 285,686 | $ 207,660 | $ 176,150 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (5,243) | 15,346 | 353 |
Unrealized (loss) gain on defined benefit pension plan, net of tax | (97) | 321 | (661) |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 13 | 29 | 0 |
Total other comprehensive (loss) income | (5,327) | 15,696 | (308) |
Comprehensive income from consolidated operations | 280,359 | 223,356 | 175,842 |
Less: Net income attributable to noncontrolling interests | 26,453 | 21,675 | 19,958 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (406) | 926 | (62) |
Comprehensive income attributable to noncontrolling interests | 26,047 | 22,601 | 19,896 |
Comprehensive income attributable to HEICO | $ 254,312 | $ 200,755 | $ 155,946 |
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] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total Shareholders Equity [Member] |
Balances 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 (Loss), Net of Tax, Attributable to Parent | $ 155,946 | (246) | 156,192 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 19,896 | $ 9,968 | 9,928 | ||||||||
Comprehensive Income (Loss) | 175,842 | 165,874 | |||||||||
Cash dividends | (10,724) | (10,724) | |||||||||
Issuance of Common Stock to HEICO SIP | 1 | 1 | 6,890 | 6,892 | |||||||
Share-based Compensation Expense | 6,434 | 6,434 | |||||||||
Proceeds from stock option exercises | 2 | 5,922 | 5,924 | ||||||||
Tax benefit from stock option exercises | 868 | 868 | |||||||||
Distributions to noncontrolling interests | 9,957 | (9,060) | (9,060) | ||||||||
Acquisitions of noncontrolling interests | 3,599 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 11,818 | (11,818) | (11,818) | ||||||||
Deferred Compensation Obligation | 677 | ||||||||||
Stock Held During Period Value Deferred Compensation Obligation | (677) | ||||||||||
Adjustments to Additional Paid in Capital, Other | (6) | ||||||||||
Stockholders' Equity, Other | 50 | 44 | |||||||||
Balances at Oct. 31, 2016 | 270 | 403 | 306,328 | 2,460 | (2,460) | (25,326) | 681,704 | 84,326 | 1,047,705 | ||
Redeemable noncontrolling interests at Oct. 31, 2015 | 91,282 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Redeemable Noncontrolling Interest | 19,896 | 9,968 | 9,928 | ||||||||
Distributions to noncontrolling interests | 9,957 | (9,060) | (9,060) | ||||||||
Acquisitions of noncontrolling interests | (3,599) | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 11,818 | (11,818) | (11,818) | ||||||||
Redeemable noncontrolling interests at Oct. 31, 2016 | 99,512 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 200,755 | 14,770 | 185,985 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 22,601 | 11,637 | 10,964 | ||||||||
Comprehensive Income (Loss) | 223,356 | 211,719 | |||||||||
Cash dividends | (12,807) | (12,807) | |||||||||
Stock Issued During Period, Value, Stock Dividend | 68 | 101 | |||||||||
Adjustments to Additional Paid in Capital, Stock Split | (169) | ||||||||||
Dividends, Common Stock, Stock | (23) | (23) | |||||||||
Issuance of Common Stock to HEICO SIP | 7,517 | 7,517 | |||||||||
Share-based Compensation Expense | 7,415 | 7,415 | |||||||||
Proceeds from stock option exercises | 3 | 5,656 | 5,659 | ||||||||
Noncontrolling interests assumed related to acquisition | (23,339) | ||||||||||
Distributions to noncontrolling interests | (10,323) | (8,078) | (8,078) | ||||||||
Acquisitions of noncontrolling interests | 3,848 | 194 | 194 | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 10,806 | (10,806) | (10,806) | ||||||||
Deferred Compensation Obligation | 658 | ||||||||||
Stock Held During Period Value Deferred Compensation Obligation | (658) | ||||||||||
Adjustments to Additional Paid in Capital, Other | (203) | (203) | |||||||||
Balances at Oct. 31, 2017 | 1,248,292 | 338 | 507 | 326,544 | 3,118 | (3,118) | (10,556) | 844,247 | 87,212 | 1,248,292 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Redeemable Noncontrolling Interest | 22,601 | 11,637 | 10,964 | ||||||||
Noncontrolling interests assumed related to acquisition | 23,339 | ||||||||||
Distributions to noncontrolling interests | (10,323) | (8,078) | (8,078) | ||||||||
Acquisitions of noncontrolling interests | (3,848) | (194) | (194) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 10,806 | (10,806) | (10,806) | ||||||||
Redeemable noncontrolling interests at Oct. 31, 2017 | 131,123 | 131,123 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 254,312 | (4,921) | 259,233 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 26,047 | 13,070 | 12,977 | ||||||||
Comprehensive Income (Loss) | 280,359 | 267,289 | |||||||||
Cash dividends | (15,363) | (15,363) | |||||||||
Stock Issued During Period, Value, Stock Dividend | 191 | 286 | |||||||||
Adjustments to Additional Paid in Capital, Stock Split | (477) | ||||||||||
Dividends, Common Stock, Stock | (28) | (28) | |||||||||
Issuance of Common Stock to HEICO SIP | 1 | 1 | 7,868 | 7,870 | |||||||
Share-based Compensation Expense | 9,283 | 9,283 | |||||||||
Proceeds from stock option exercises | 7 | 2 | 4,022 | 4,031 | |||||||
Redemption of common stock related to stock option exercises | (3) | (24,980) | (24,983) | ||||||||
Noncontrolling interests assumed related to acquisition | (2,491) | (5,350) | (5,350) | ||||||||
Distributions to noncontrolling interests | (12,005) | (1,054) | (1,054) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (3,627) | 3,627 | 3,627 | ||||||||
Deferred Compensation Obligation | 810 | ||||||||||
Stock Held During Period Value Deferred Compensation Obligation | (810) | ||||||||||
Adjustments to Additional Paid in Capital, Other | (1,266) | ||||||||||
Stockholders' Equity, Other | 221 | (533) | 272 | (1,306) | |||||||
Balances at Oct. 31, 2018 | 1,503,008 | $ 534 | $ 796 | $ 320,994 | $ 3,928 | $ (3,928) | $ (15,256) | 1,091,183 | 104,757 | 1,503,008 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Redeemable Noncontrolling Interest | 26,047 | 13,070 | 12,977 | ||||||||
Noncontrolling interests assumed related to acquisition | 2,491 | 5,350 | 5,350 | ||||||||
Distributions to noncontrolling interests | (12,005) | $ (1,054) | (1,054) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (3,627) | $ 3,627 | $ 3,627 | ||||||||
Temporary Equity, Other | 994 | ||||||||||
Redeemable noncontrolling interests at Oct. 31, 2018 | $ 132,046 | $ 132,046 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [PARENTHETICAL] - $ / shares | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Cash dividends per share (in dollars per share) | $ 0.116 | $ 0.097 | $ 0.082 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Operating Activities: | |||
Net income from consolidated operations | $ 285,686 | $ 207,660 | $ 176,150 |
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities: | |||
Depreciation and amortization | 77,191 | 64,823 | 60,277 |
Share-based compensation expense | 9,283 | 7,415 | 6,434 |
Employer contributions to HEICO Savings and Investment Plan | 8,019 | 7,768 | 7,020 |
Foreign Currency Transaction Loss, before Tax | 365 | 3,347 | 13 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | (1,365) | ||
Accrued contingent consideration | 1,100 | 3,063 | |
Deferred income tax benefit | (12,977) | (11,096) | (9,194) |
Other | 0 | 0 | (644) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (28,569) | 2,846 | (15,955) |
Inventories | (49,455) | (21,204) | (14,421) |
Prepaid expenses and other current assets | 401 | 134 | (2,356) |
Trade accounts payable | 17,403 | 6,386 | 4,074 |
Accrued expenses and other current liabilities | 22,121 | 1,794 | 35,279 |
Income taxes payable | (12,530) | 6,071 | 1,443 |
Change in long-term liabilities and assets related to HEICO LCP | 11,610 | 12,841 | 10,811 |
Other | 1,304 | (1,600) | (2,281) |
Net cash provided by operating activities | 328,487 | 288,285 | 259,713 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (59,775) | (418,265) | (263,811) |
Capital expenditures | (41,871) | (25,998) | (30,863) |
Net Investment Related to HEICO LCP | (11,500) | (13,400) | (10,529) |
Other | (365) | (552) | (2,942) |
Net cash used in investing activities | (113,511) | (458,215) | (308,145) |
Financing Activities: | |||
Payments on revolving credit facility | (204,000) | (190,877) | (170,000) |
Borrowings on revolving credit facility | 56,000 | 404,000 | 260,000 |
Redemption of common stock related to stop option exercises | (24,983) | (203) | (4) |
Cash dividends paid | (15,363) | (12,807) | (10,724) |
Distributions to noncontrolling interests | (13,059) | (18,401) | (19,017) |
Payment of contingent consideration | (5,425) | (7,039) | (6,329) |
Revolving credit facility issuance costs | (4,067) | (270) | |
Acquisitions of noncontrolling interests | 0 | (3,848) | (3,599) |
Proceeds from stock option exercises | 4,031 | 5,659 | 5,924 |
Other | (669) | (342) | 521 |
Net cash (used in) provided by financing activities | (207,535) | 175,872 | 56,772 |
Effect of exchange rate changes on cash | 92 | 3,169 | 1,012 |
Net increase (decrease) in cash and cash equivalents | 7,533 | 9,111 | 9,352 |
Cash and cash equivalents at beginning of year | 52,066 | 42,955 | 33,603 |
Cash and cash equivalents at end of year | $ 59,599 | $ 52,066 | $ 42,955 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2018 | |
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% 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. Additionally, a wholly owned subsidiary of HEICO Electronic consolidates two subsidiaries which are 78% and 85% owned, respectively, while an 82.5% owned subsidiary of HEICO Electronic consolidates a subsidiary in which it has a 53.1% controlling interest. See Note 11, Redeemable Noncontrolling Interests. All intercompany balances and transactions are eliminated. Stock Splits In June 2018, December 2017 and March 2017, the Company's Board of Directors declared a 5-for-4 stock split on both classes of the Company's common stock. The stock splits were effected as of June 28, 2018, January 18, 2018 and April 19, 2017, respectively, in the form of a 25% stock dividend distributed to shareholders of record as of June 21, 2018, January 3, 2018 and April 7, 2017, respectively. All applicable share and per share information has been adjusted retrospectively to give effect to the 5-for-4 stock splits. 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, without liquidity fees or redemption gates, 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 net realizable value, 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 generally depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements 2 to 20 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, were not material in fiscal 2018 or 2017 and totaled $3.2 million in fiscal 2016. See Note 2, Acquisitions, for additional information regarding fiscal 2016 acquisition costs. For contingent consideration arrangements, a liability is recognized at fair value as of the acquisition date with subsequent fair value adjustments recorded in operations. Additional information regarding the Company's contingent consideration arrangements 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 4 to 15 years Intellectual property 4 to 22 years Licenses 10 to 17 years Patents 5 to 20 years Trade names 8 to 15 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 prior year 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, 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 2% , 3% and 3% in fiscal 2018, 2017 and 2016, 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. SG&A 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 2018, 2017 or 2016. 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. Effective as of the beginning of the first quarter of fiscal 2019, the Company will adopt Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” which will impact the timing of revenue recognition for two types of the Company's customer contracts. See “New Accounting Pronouncements,” below for additional information. 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 effect 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 May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, 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. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented (“full retrospective method”) or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application (“modified retrospective method”). The Company has completed a review of its customer contracts and has evaluated the impact of ASU 2014-09 on each of its primary revenue streams. While the Company finalizes its overall assessment of the amended guidance, the most significant impact relates to the timing of revenue recognition, presentation and disclosures. ASU 2014-09 will impact the timing of revenue recognition for two types of the Company’s customer contracts. For certain contracts under which it produces products with no alternative use and for which the Company has an enforceable right to payment during the production cycle and for certain other contracts under which the Company creates or enhances customer-owned assets while performing repair and overhaul services, ASU 2014-09 will require HEICO to recognize revenue using an over-time recognition model as opposed to the Company’s current policy of recognizing revenue at the time of shipment. For impacted customer contracts, the adoption of ASU 2014-09 will accelerate revenue recognition and the associated cost of sales. Effective as of the beginning of the first quarter of fiscal 2019, the Company will adopt ASU 2014-09 using the modified retrospective method and recognize a cumulative effect adjustment to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition model to an over-time recognition model. While the ongoing impact to net sales and net income is not expected to be material to the Company’s consolidated results of operations, the future impact of ASU 2014-09 is dependent on the mix and nature of specific customer contracts. The Company is nearing completion of implementing changes to its business processes, systems and controls needed to support recognition and disclosure requirements under ASU 2014-09. 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. Previously, inventories were measured at the lower of cost or market. The Company adopted ASU 2015-11 in the first quarter of fiscal 2018, resulting in no material effect on the Company's consolidated results of operations, financial position or cash flows. 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, as amended, provides certain optional transition relief and shall be applied either at the beginning of the earliest comparative period presented in the year of adoption using a modified retrospective transition approach or by recognizing a cumulative effect adjustment at the date of adoption. 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 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. The Company adopted ASU 2016-15 on a retrospective basis in the fourth quarter of fiscal 2018, which requires that proceeds from corporate-owned life insurance policies be classified as cash inflows from investing activities. Such proceeds aggregated $.1 million over the past three fiscal years and were all received in fiscal 2016. In addition, and as permitted by ASU 2016-15, the Company has elected to classify investments related to the HEICO Corporation Leadership Compensation Plan as cash outflows from investing activities as such investments primarily represent premium payments on corporate-owned life insurance policies. The adoption of ASU 2016-15 resulted in an $11.5 million , $13.4 million and $10.5 million increase in cash provided by operating activities and in cash used in investing activities in fiscal 2018, 2017 and fiscal 2016, respectively. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Oct. 31, 2018 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS AAT Acquisition On September 15, 2017 , the Company, through HEICO Electronic, acquired all of the outstanding stock of AeroAntenna Technology, Inc. ("AAT"). The purchase price of this acquisition was paid in cash using proceeds from the Company's revolving credit facility. AAT designs and produces high performance active antenna systems for commercial aircraft, precision guided munitions, other defense applications and commercial uses. The Company believes that this acquisition is consistent with HEICO’s practice of acquiring high quality niche designers and manufacturers who also focus on customer needs 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 AAT (in thousands): Cash paid $317,500 Less: cash acquired (868 ) Cash paid, net 316,632 Contingent consideration 13,797 Additional purchase consideration 544 Total consideration $330,973 As noted in the table above, the total consideration includes an accrual of $13.8 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should AAT meet certain earnings objectives during the first six years following the acquisition. See Note 7, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligation. The following table summarizes the allocation of the total consideration for the acquisition of AAT to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands): Assets acquired: Goodwill $157,901 Customer relationships 100,000 Intellectual property 39,000 Trade name 20,000 Inventories 8,306 Accounts receivable 6,115 Property, plant and equipment 1,893 Other assets 208 Total assets acquired, excluding cash 333,423 Liabilities assumed: Accounts payable 1,299 Accrued expenses 1,151 Total liabilities assumed 2,450 Net assets acquired, excluding cash $330,973 The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of AAT and the value of its assembled workforce that do not qualify for separate recognition. The amortization period of the customer relationships, intellectual property and trade name acquired is 15 years , 15 years and indefinite, respectively. The operating results of AAT 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 the fiscal year ended October 31, 2017 includes $10.2 million and $2.5 million , respectively from the acquisition of AAT. The following table presents unaudited pro forma financial information for fiscal 2017 and fiscal 2016 as if the acquisition of AAT had occurred as of November 1, 2015 (in thousands, except per share data): Year ended October 31, 2017 2016 Net sales $1,582,653 $1,428,336 Net income from consolidated operations $220,419 $185,070 Net income attributable to HEICO $198,744 $165,112 Net income per share attributable to HEICO shareholders: Basic $1.51 $1.26 Diluted $1.47 $1.24 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 acquisition had taken place as of November 1, 2015. 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 acquisition and inventory purchase accounting adjustments charged to cost of sales as the inventory is sold. Robertson Acquisition On January 11, 2016 , the Company, through HEICO Electronic, acquired all of the limited liability company interests of Robertson Fuel Systems, LLC ("Robertson"). The purchase price of this acquisition was paid in cash using proceeds from the Company’s revolving credit facility. Robertson designs and produces mission-extending, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft. The Company believes that this acquisition is consistent with HEICO’s practice of acquiring outstanding niche designers and manufacturers of critical components in the defense industry 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 Robertson (in thousands): Cash paid $256,293 Less: cash acquired (3,271 ) Total consideration $253,022 The following table summarizes the allocation of the total consideration for the acquisition of Robertson to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands): Assets acquired: Goodwill $93,425 Customer relationships 55,100 Intellectual property 39,600 Trade name 28,400 Inventories 27,417 Property, plant and equipment 7,476 Accounts receivable 4,973 Other assets 1,884 Total assets acquired, excluding cash 258,275 Liabilities assumed: Accounts payable 4,606 Accrued expenses 647 Total liabilities assumed 5,253 Net assets acquired, excluding cash $253,022 The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Robertson and the value of its assembled workforce that do not qualify for separate recognition. The amortization period of the customer relationships, intellectual property and trade name acquired is 15 years , 22 years and indefinite, respectively. Acquisition costs associated with the purchase of Robertson totaled $3.1 million in fiscal 2016 and were recorded as a component of SG&A expenses in the Company's Consolidated Statements of Operations. The operating results of Robertson 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 the fiscal year ended October 31, 2016 includes $84.1 million and $12.3 million , respectively, from the acquisition of Robertson, exclusive of the aforementioned acquisition costs. Had the acquisition of Robertson been consummated as of November 1, 2014, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for fiscal 2016 would not have been materially different than the reported amounts. Other Acquisitions In September 2018, the Company, through a subsidiary of HEICO Electronic, obtained control over 53.1% of the equity interests of SST Components, Inc. (“SST”) . SST manufactures discrete semiconductor components, tests electronic components, and custom assembles a wide variety of prototype and off the shelf components into desired package styles for military, space and commercial uses. The purchase price of this acquisition was paid using cash provided by operating activities. In August 2018, the Company, through a subsidiary of HEICO Flight Support Corp., acquired all of the business and assets of Optical Display Engineering ("ODE") . ODE is a Federal Aviation Administration ("FAA")-authorized Part 145 Repair Station focusing on the repair of LCD screens and display modules for aviation displays used in civilian and military aircraft. ODE also holds FAA-Parts Manufacturer Approval authority to supply products that it repairs. The purchase price of this acquisition was paid in cash, principally using cash provided by operating activities. In April 2018, the Company, through a subsidiary of HEICO Electronic, acquired all of the assets and business of the Emergency Locator Transmitter Beacon product line ("ELT Product Line") of Instrumar Limited. The ELT Product Line designs and manufactures Emergency Locator Transmitter Beacons for the commercial aviation and defense markets, that upon activation, transmit a distress signal to alert search and rescue operations of the aircraft's location. The purchase price of this acquisition was paid using cash provided by operating activities. In February 2018, the Company, through a subsidiary of HEICO Electronic, acquired 85% of the assets and business of Sensor Technology Engineering, Inc. ("Sensor Technology") . Sensor Technology designs and manufactures sophisticated nuclear radiation detectors for law enforcement, homeland security and military applications. The remaining 15% continues to be owned by certain members of Sensor Technology's management team (see Note 11, Redeemable Noncontrolling Interests, for additional information). In November 2017, the Company, through a subsidiary of HEICO Electronic, acquired all of the stock of Interface Displays & Controls, Inc. ("IDC") . IDC designs and manufactures electronic products for aviation, marine, military fighting vehicles, and embedded computing markets. The purchase price of this acquisition was paid using cash provided by operating activities. In June 2017, the Company, through a subsidiary of the HEICO Flight Support Corp., acquired all of the ownership interests of Carbon by Design ("CBD"). CBD is a manufacturer of composite components for UAVs, rockets, spacecraft and other specialized applications. The purchase price of CBD was paid using cash provided by operating activities. In April 2017, the Company, through a subsidiary of HEICO Flight Support Corp., acquired 80.1% of the equity interests of LLP Enterprises, LLC, which owns all of the outstanding equity interests of the operating units of Air Cost Control ("A2C"). A2C is a leading aviation electrical interconnect product distributor of items such as connectors, wire, cable, protection and fastening systems, in addition to distributing a wide range of electromechanical parts. The remaining 19.9% interest continues to be owned by certain members of A2C's management team (see Note 11, Redeemable Noncontrolling Interests, for additional information). In December 2015, the Company, through a subsidiary of HEICO Electronic, acquired certain assets 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 total consideration includes an accrual as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay in aggregate during the first five years following the acquisition. See Note 7, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligation. The purchase price of this acquisition was 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, 2018 2017 2016 Cash paid $61,931 $109,346 $11,000 Less: cash acquired (4,000 ) (7,713 ) — Cash paid, net 57,931 101,633 11,000 Contingent consideration — — 1,225 Additional purchase consideration (407 ) 1,300 — Total consideration $57,524 $102,933 $12,225 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, 2018 2017 2016 Assets acquired: Goodwill $38,320 $49,932 $6,876 Customer relationships 11,620 29,500 2,800 Trade names 760 16,750 300 Intellectual property 6,970 1,950 2,000 Inventories 6,219 28,410 249 Accounts receivable 1,488 15,165 — Property, plant and equipment 1,807 4,522 — Other assets 51 982 — Total assets acquired, excluding cash 67,235 147,211 12,225 Liabilities assumed: Accounts payable 671 7,696 — Accrued expenses 1,522 6,054 — Deferred income taxes — 5,432 — Other liabilities — 1,434 — Total liabilities assumed 2,193 20,616 — Noncontrolling interests in consolidated subsidiaries 7,518 23,662 — Net assets acquired, excluding cash $57,524 $102,933 $12,225 The following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in connection with the Company's other fiscal 2018, 2017 and 2016 acquisitions (in years): Year ended October 31, 2018 2017 2016 Customer relationships 7 12 11 Trade names — — 15 Intellectual property 10 13 15 The allocation of the total consideration of the Company's other fiscal 2018 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. 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 Sensor Technology and A2C benefit both the Company and the noncontrolling interest holders. The fair value of the noncontrolling interests in Sensor Technology and A2C 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 other fiscal 2018 acquisitions were included in the Company's results of operations from each of the effective acquisition dates. The amount of net sales and earnings of the Company's other fiscal 2018 acquisitions included in the Consolidated Statement of Operations is not material. Had the other fiscal 2018 acquisitions occurred as of November 1, 2016, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for fiscal 2018 and 2017 would not have been materially different than the reported amounts. The operating results of the Company's other fiscal 2017 acquisitions were included in the Company's results of operations from each of the effective acquisition dates. The Company's consolidated net sales for the fiscal year ended October 31, 2017 includes $49.0 million from the other fiscal 2017 acquisitions. The amount of earnings of the other fiscal 2017 acquisitions included in the Company's results of operations for the fiscal year ended October 31, 2017 is not material. Had the other fiscal 2017 acquisitions occurred as of November 1, 2015, net sales on a pro forma basis for fiscal 2017 would not have been materially different than the reported amounts and net sales on a pro forma basis for fiscal 2016 would have been $1,464.5 million . Net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for fiscal 2017 and 2016 would not have been materially different than the reported amounts. 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, 2015. |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Oct. 31, 2018 | |
Selected Financial Statement Information [Abstract] | |
Additional Financial Information Disclosure [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable As of October 31, (in thousands) 2018 2017 Accounts receivable $254,727 $225,462 Less: Allowance for doubtful accounts (3,258 ) (3,006 ) Accounts receivable, net $251,469 $222,456 Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts As of October 31, (in thousands) 2018 2017 Costs incurred on uncompleted contracts $39,350 $29,491 Estimated earnings 19,708 19,902 59,058 49,393 Less: Billings to date (45,731 ) (41,262 ) $13,327 $8,131 Included in the accompanying Consolidated Balance Sheets under the following captions: Accounts receivable, net (costs and estimated earnings in excess of billings) $14,183 $9,377 Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) (856 ) (1,246 ) $13,327 $8,131 Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations in fiscal 2018, 2017 or 2016. Inventories As of October 31, (in thousands) 2018 2017 Finished products $192,758 $173,559 Work in process 49,315 39,986 Materials, parts, assemblies and supplies 158,039 128,031 Contracts in process 1,649 2,415 Less: Billings to date (208 ) (363 ) Inventories, net of valuation reserves $401,553 $343,628 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) 2018 2017 Land $5,864 $5,435 Buildings and improvements 101,424 91,916 Machinery, equipment and tooling 230,108 191,298 Construction in progress 5,044 5,553 342,440 294,202 Less: Accumulated depreciation and amortization (187,701 ) (164,319 ) Property, plant and equipment, net $154,739 $129,883 The amounts set forth above include tooling costs having a net book value of $8.2 million and $7.6 million as of October 31, 2018 and 2017, respectively. Amortization expense on capitalized tooling was $2.8 million , $2.7 million and $2.9 million in fiscal 2018, 2017 and 2016, respectively. The amounts set forth above also include $11.9 million and $4.8 million of assets under capital leases as of October 31, 2018 and October 31, 2017, respectively. Accumulated depreciation associated with assets under capital leases was $1.5 million and $1.0 million as of October 31, 2018 and October 31, 2017, respectively. See Note 5, Long-Term Debt, for additional information pertaining to capital lease obligations. Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $23.2 million , $21.9 million and $20.4 million in fiscal 2018, 2017 and 2016, respectively. Accrued Expenses and Other Current Liabilities As of October 31, (in thousands) 2018 2017 Accrued employee compensation and related payroll taxes $97,048 $78,058 Deferred revenue 28,262 29,247 Accrued customer rebates and credits 16,861 12,866 Contingent consideration and other accrued purchase consideration 6,138 7,588 Other 23,205 19,853 Accrued expenses and other current liabilities $171,514 $147,612 The increase in accrued employee compensation and related payroll taxes principally reflects a higher level of accrued performance-based compensation resulting from the improved consolidated operating results and the impact of our fiscal 2018 acquisitions. The total customer rebates and credits deducted within net sales in fiscal 2018, 2017 and 2016 was $9.9 million , $11.0 million and $10.8 million , respectively. 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 2018, 2017 and 2016 totaled $5.9 million , $4.6 million and $6.8 million , respectively. The aggregate liabilities of the LCP were $125.8 million and $116.0 million as of October 31, 2018 and 2017, respectively, and are classified within other long-term liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $126.8 million and $117.2 million as of October 31, 2018 and 2017, 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 $5.9 million and $5.7 million as of October 31, 2018 and 2017, 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, 2018 and 2017, 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, 2018 2017 2016 R&D expenses $57,450 $46,473 $44,726 Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss during fiscal 2018 and 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 gain 14,420 321 14,741 Amortization of unrealized loss — 29 29 Balances as of October 31, 2017 (9,533 ) (1,023 ) (10,556 ) Unrealized (loss) gain (4,837 ) 124 (4,713 ) Amortization of unrealized loss — 13 13 Balances as of October 31, 2018 ($14,370 ) ($886 ) ($15,256 ) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Oct. 31, 2018 | |
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 2018 and 2017 by operating segment are as follows (in thousands): Segment Consolidated FSG ETG Totals Balances as of October 31, 2016 $336,681 $529,036 $865,717 Goodwill acquired 48,960 160,903 209,863 Foreign currency translation adjustments 2,965 2,761 5,726 Balances as of October 31, 2017 388,606 692,700 1,081,306 Goodwill acquired 10,586 27,734 38,320 Adjustments to goodwill 972 (3,003 ) (2,031 ) Foreign currency translation adjustments (1,470 ) (1,293 ) (2,763 ) Balances as of October 31, 2018 $398,694 $716,138 $1,114,832 The goodwill acquired during fiscal 2018 and 2017 relates to the acquisitions consummated in those respective years as described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Consolidated Statements of Comprehensive Income. The adjustments to goodwill represent immaterial measurement period adjustments to the purchase price allocation of certain fiscal 2017 acquisitions. The Company estimates that most of the goodwill acquired in fiscal 2018 and 2017 is deductible for income tax purposes. Based on the annual test for goodwill impairment as of October 31, 2018, 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 the following (in thousands): As of October 31, 2018 As of October 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $373,946 ($135,359 ) $238,587 $379,966 ($117,069 ) $262,897 Intellectual property 185,983 (56,055 ) 129,928 181,811 (44,861 ) 136,950 Licenses 6,559 (3,522 ) 3,037 6,559 (2,928 ) 3,631 Patents 927 (609 ) 318 870 (551 ) 319 Non-compete agreements 814 (814 ) — 817 (817 ) — Trade names 466 (157 ) 309 466 (118 ) 348 568,695 (196,516 ) 372,179 570,489 (166,344 ) 404,145 Non-Amortizing Assets: Trade names 134,181 — 134,181 133,936 — 133,936 $702,876 ($196,516 ) $506,360 $704,425 ($166,344 ) $538,081 Amortization expense related to intangible assets was $50.1 million , $39.5 million and $36.4 million in fiscal 2018, 2017 and 2016, respectively. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $49.0 million in fiscal 2019, $46.1 million in fiscal 2020, $43.4 million in fiscal 2021, $37.0 million in fiscal 2022, $32.0 million in fiscal 2023 and $164.7 million |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): As of October 31, 2018 2017 Borrowings under revolving credit facility $523,000 $671,000 Capital leases and note payable 9,470 2,979 532,470 673,979 Less: Current maturities of long-term debt (859 ) (451 ) $531,611 $673,528 The Company's borrowings under its revolving credit facility mature in fiscal 2023. As of October 31, 2018 and 2017, the weighted average interest rate on borrowings under the Company's revolving credit facility was 3.4% and 2.4% , respectively. The revolving credit facility contains both financial and non-financial covenants. As of October 31, 2018, the Company was in compliance with all such covenants. Revolving Credit Facility On November 6, 2017, the Company entered into a new $1.3 billion Revolving Credit Facility Agreement ("New Credit Facility") with a bank syndicate, which matures in November 2022. Under certain circumstances, the maturity of the New Credit Facility may be extended for two one-year periods. The New Credit Facility also includes a feature that will allow the Company to increase revolving commitments under the New Credit Facility by $350 million , to become a $1.65 billion facility, through increased commitments from existing lenders or the addition of new lenders. Borrowings under the New Credit Facility may be used to finance acquisitions and for working capital and other general corporate purposes, including capital expenditures. The New Credit Facility replaced the Company's prior $1.0 billion (as amended) Revolving Credit Agreement. Borrowings under the New Credit Facility accrue interest at the Company’s election of the Base Rate or the Eurocurrency Rate, plus in each case, the Applicable Rate (based on the Company’s Total Leverage Ratio). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) the Eurocurrency Rate for an Interest Period of one month plus 100 basis points. The Eurocurrency Rate is the rate per annum obtained by dividing LIBOR for the applicable Interest Period by a percentage equal to 1.00 minus the daily average Eurocurrency Reserve Rate for such Interest Period, as such capitalized terms are defined in the New Credit Facility. The Applicable Rate for Eurocurrency Rate Loans ranges from 1.00% to 2.00% . The Applicable Rate for Base Rate Loans ranges from 0% to 1.00% . A fee is charged on the amount of the unused commitment ranging from .125% to .30% (depending on the Company’s Total Leverage Ratio). The New Credit Facility also includes $100 million sublimits for borrowings made in foreign currencies and for swingline borrowings, and a $50 million sublimit for letters of credit. Outstanding principal, accrued and unpaid interest and other amounts payable under the New Credit Facility may be accelerated upon an event of default, as such events are described in the New Credit Facility. The New Credit Facility is unsecured and contains covenants that require, among other things, the maintenance of a Total Leverage Ratio and an Interest Coverage Ratio, as such capitalized terms are defined in the New Credit Facility. Capital Lease Obligations The Company's capital lease obligations are principally for manufacturing facilities including a 14-year lease that a subsidiary of HEICO Flight Support became party to during fiscal 2018. 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, 2019 $1,240 2020 1,191 2021 1,184 2022 1,175 2023 873 Thereafter 6,412 Total minimum lease payments 12,075 Less: amount representing interest (2,718 ) Present value of minimum lease payments $9,357 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2018 | |
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, 2018 2017 2016 Domestic $309,123 $264,420 $227,927 Foreign 47,163 33,540 29,123 Income before taxes and noncontrolling interests $356,286 $297,960 $257,050 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, 2018 2017 2016 Current: Federal $61,548 $85,047 $75,261 State 9,420 6,820 7,463 Foreign 12,608 9,529 7,370 83,576 101,396 90,094 Deferred: Federal (13,115 ) (9,661 ) (5,979 ) State 1,578 (499 ) (2,587 ) Foreign (1,439 ) (936 ) (628 ) (12,976 ) (11,096 ) (9,194 ) Total income tax expense $70,600 $90,300 $80,900 A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows: Year ended October 31, 2018 2017 2016 Federal statutory income tax rate (blended rate in fiscal 2018) 23.3 % 35.0 % 35.0 % State taxes, net of federal income tax benefit 2.9 % 1.9 % 1.7 % Discrete net tax benefit related to Tax Act (3.4 %) — % — % Research and development tax credits (2.0 %) (1.8 %) (2.7 %) Domestic production activities tax deduction (.8 %) (1.1 %) (1.3 %) Tax benefit related to stock option exercises (.5 %) (1.0 %) — % Noncontrolling interests’ share of income (.3 %) (.7 %) (.7 %) Tax-exempt losses (gains) on corporate-owned life insurance policies .1 % (1.8 %) (.1 %) Other, net .5 % (.2 %) (.4 %) Effective tax rate 19.8 % 30.3 % 31.5 % On December 22, 2017, the United States ("U.S.") government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act contains significant changes to existing tax law including, among other things, a reduction in the U.S. federal statutory tax rate from 35% to 21% and the implementation of a territorial tax system resulting in a one-time transition tax on the unremitted earnings of the Company’s foreign subsidiaries. The Tax Act also contains additional provisions that will become effective for HEICO in fiscal 2019 including a new tax on Global Intangible Low-Taxed Income (“GILTI”), a new deduction for Foreign-Derived Intangible Income (“FDII”), the repeal of the domestic production activity deduction and additional limitations on the deductibility of certain executive compensation. The Company has not yet determined the impact of the provisions of the Tax Act which do not become effective for HEICO until fiscal 2019 but does not anticipate these provisions to materially affect its consolidated results of operations, financial position or cash flows. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on the accounting for the tax effects of the Tax Act. This guidance provides companies with a measurement period not to exceed one year from the enactment of the Tax Act to complete their accounting for the related tax effects. SAB 118 further states that during the measurement period, companies who are able to make reasonable estimates of the tax effects of the Tax Act should include those amounts in their financial statements as provisional amounts and reflect any adjustments in subsequent periods as they refine their estimates or complete their accounting of such tax effects. As a result of the Tax Act, the Company's effective federal statutory income tax rate in fiscal 2018 is a blended rate of 23.3% , which reflects the reduction in the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. Additionally, the Company remeasured its U.S. federal net deferred tax liabilities and recorded a discrete tax benefit of $16.5 million in fiscal 2018. Further, the Company recorded a provisional discrete tax expense of $4.4 million in fiscal 2018 related to a one-time transition tax on the unremitted earnings of the Company's foreign subsidiaries. The Company intends to pay this tax over the eight-year period allowed for in the Tax Act. The Company’s effective tax rate in fiscal 2018 decreased to 19.8% from 30.3% in fiscal 2017. The decrease principally reflects the previously mentioned discrete tax benefit from the remeasurement of the Company’s U.S. federal net deferred tax liabilities and the net benefit of a lower federal statutory income tax rate, which were partially offset by the aforementioned one-time transition tax expense. Further, the decrease in fiscal 2018 was slightly moderated by an unfavorable impact from lower tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the HEICO Corporation Leadership Compensation Plan ("HEICO LCP"). The Company’s effective tax rate in fiscal 2017 decreased to 30.3% from 31.5% in fiscal 2016. The decrease principally reflects the favorable impact of higher tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the HEICO LCP and a $3.1 million discrete income tax benefit related to stock option exercises resulting from the adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," in the first quarter of fiscal 2017. These decreases were partially offset by the benefit recognized in 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 and a less favorable benefit in fiscal 2017 from the foreign tax rate differential associated with the undistributed earnings of a fiscal 2015 acquisition. 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 2014. 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, 2018 2017 Deferred tax assets: Deferred compensation liability $31,152 $47,093 Inventories 22,204 31,797 Share-based compensation 9,811 12,984 Bonus accrual 4,474 4,956 Customer rebates accrual 1,526 1,864 Vacation accrual 1,456 2,112 Deferred revenue 68 730 Other 7,084 9,230 Total deferred tax assets 77,775 110,766 Deferred tax liabilities: Goodwill and other intangible assets (112,533 ) (160,158 ) Property, plant and equipment (11,615 ) (7,887 ) Other (271 ) (1,747 ) Total deferred tax liabilities (124,419 ) (169,792 ) Net deferred tax liability ($46,644 ) ($59,026 ) As of October 31, 2018 and 2017, the Company’s liability for gross unrecognized tax benefits related to uncertain tax positions was $2.1 million and $2.0 million , respectively, of which $1.7 million and $1.3 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 fiscal 2018 and 2017 is as follows (in thousands): Year ended October 31, 2018 2017 Balances as of beginning of year $2,040 $1,602 Increases related to current year tax positions 591 596 Increases related to prior year tax positions 20 — Decreases related to prior year tax positions — (24 ) Settlements (394 ) — Lapses of statutes of limitations (157 ) (134 ) Balances as of end of year $2,100 $2,040 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Oct. 31, 2018 | |
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, 2018 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 $— $123,255 $— $123,255 Money market funds 3,560 — — 3,560 Equity securities 3,179 — — 3,179 Mutual funds 1,437 — — 1,437 Other 1,306 — — 1,306 Total assets $9,482 $123,255 $— $132,737 Liabilities: Contingent consideration $— $— $20,875 $20,875 As of October 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 $— $113,220 $— $113,220 Money market funds 3,972 — — 3,972 Equity securities 2,895 — — 2,895 Mutual funds 1,541 — — 1,541 Other 1,246 — — 1,246 Total assets $9,654 $113,220 $— $122,874 Liabilities: Contingent consideration $— $— $27,573 $27,573 The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan ("HEICO 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 HEICO 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 ETG in fiscal 2017, the Company may be obligated to pay contingent consideration of $20.0 million in fiscal 2023 should the acquired entity meet certain earnings objectives during the first six years following the acquisition. As of October 31, 2018, the estimated fair value of the contingent consideration was $13.9 million . 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 $1.7 million in aggregate during the first four years following the first anniversary of the acquisition. During fiscal 2018, the Company paid $.3 million of contingent consideration based on the actual financial performance of the acquired entity during the second year following the acquisition. As of October 31, 2018, the estimated fair value of the remaining contingent consideration was $1.2 million . 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 should the acquired entity meet certain earnings objectives during each of the first four years following the acquisition. The estimated fair value of the aggregate contingent consideration as of October 31, 2017 for the third and fourth year following the acquisition was €10.8 million , or $12.6 million . During fiscal 2018, the Company paid €4.4 million , or $5.1 million , of contingent consideration based on the lower actual than anticipated earnings of the acquired entity during the third year following the acquisition and recognized a €1.3 million , or $1.8 million , reduction in accrued contingent consideration based principally on the lower actual than anticipated earnings. As of October 31, 2018, the estimated fair vale of the contingent consideration for the fourth year following the acquisition was €5.1 million , or $5.8 million . 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 HEICO. 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, 2018 are as follows: Fiscal 2017 Acquisition Fiscal 2016 Acquisition Fiscal 2015 Acquisition Compound annual revenue growth rate range (4%) - 7% 4 % - 13% 10 % - 13% Weighted average discount rate 6.3% 4.8% .8% Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) during fiscal 2018 and 2017 are as follows (in thousands): Liabilities Balance as of October 31, 2016 $18,881 Contingent consideration related to acquisition 13,797 Increase in accrued contingent consideration, net 1,100 Payment of contingent consideration (7,039 ) Foreign currency transaction adjustments 834 Balance as of October 31, 2017 27,573 Payment of contingent consideration (5,425 ) Decrease in accrued contingent consideration, net (1,365 ) Foreign currency transaction adjustments 92 Balance as of October 31, 2018 $20,875 Included in the accompanying Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $6,107 Other long-term liabilities 14,768 $20,875 The Company recorded the increase (decrease) in accrued contingent consideration and foreign currency transaction adjustments set forth in the table above within SG&A expenses in the Company's Consolidated Statements of Operations. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during fiscal 2018 and 2017. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Oct. 31, 2018 | |
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 dividends and other distributions payable in cash, property, stock or otherwise, when and if declared by the Board of Directors. 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, 2018, the maximum number of shares that may yet be purchased under this program was 4,886,353 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 2018, 2017 and 2016, the Company did not repurchase any shares of Company common stock under this program. During fiscal 2018, the Company repurchased an aggregate 332,140 shares and 18,145 shares of Common Stock and Class A Common Stock, respectively, at a total cost of approximately $23.9 million and $1.1 million , respectively. The shares purchased represent shares tendered as payment of employee withholding taxes due upon the issuance of a share-based award. The shares purchased in fiscal 2018 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. Such share repurchases in fiscal 2017 and 2016 were not material. Stock Splits In June 2018, December 2017 and March 2017, the Company's Board of Directors declared a 5-for-4 stock split on both classes of the Company's common stock. The stock splits were effected as of June 28, 2018, January 18, 2018 and April 19, 2017, respectively, in the form of a 25% |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Oct. 31, 2018 | |
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 has one stock option plan, the HEICO Corporation 2018 Incentive Compensation Plan ("2018 Plan"), which enables the Company to grant various forms of share-based compensation awards including stock options, restricted stock, restricted stock awards and stock appreciation rights. The 2018 Plan became effective in fiscal 2018 and replaced the Company's 2012 Incentive Compensation Plan (“2012 Plan”). Options outstanding under the Company's 2012 Plan, 2002 Stock Option Plan and Non-Qualified Stock Option Plan may be exercised pursuant to their terms. The total number of shares approved by the shareholders of the Company for the 2018 Plan is 5.0 million plus any options outstanding under the 2012 Plan as of the 2018 Plan's effective date that are subsequently forfeited or expire. A total of approximately 11.0 million shares of the Company's common stock are reserved for issuance to employees, directors, officers and consultants as of October 31, 2018, including 6.4 million shares currently under option and 4.6 million shares available for future grants. Stock options granted pursuant to the 2018 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 2018 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 2018 Plan may be designated as incentive stock options or non-qualified stock options, but only employees are eligible to receive incentive stock options and no incentive stock options were outstanding as of October 31, 2018. The 2018 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, 2015 2,590 6,514 $13.07 Granted (586 ) 586 $23.58 Exercised — (568 ) $10.45 Cancelled 12 (12 ) $18.62 Outstanding as of October 31, 2016 2,016 6,520 $14.23 Granted (1,186 ) 1,186 $41.37 Exercised — (409 ) $15.27 Outstanding as of October 31, 2017 830 7,297 $18.58 Shares approved by the Company's shareholders for the 2018 Incentive Compensation Plan 5,000 — $— Cancelled unissued shares under the 2012 Incentive Compensation Plan (830 ) — $— Granted (412 ) 412 $65.64 Exercised — (1,285 ) $10.54 Cancelled 24 (24 ) $28.85 Outstanding as of October 31, 2018 4,612 6,400 $23.19 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, 2018 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 2,955 $23.48 4.4 $178,327 Class A Common Stock 3,445 $22.94 5.5 150,649 6,400 $23.19 5.0 $328,976 Options Exercisable Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Common Stock 2,197 $14.75 3.0 $151,756 Class A Common Stock 2,160 $15.59 4.1 110,297 4,357 $15.17 3.5 $262,053 Information concerning stock options exercised is as follows (in thousands): Year ended October 31, 2018 2017 2016 Cash proceeds from stock option exercises $4,031 $5,659 $5,924 Tax benefit realized from stock option exercises 2,162 3,087 868 Intrinsic value of stock option exercises 75,152 10,376 9,751 Net income from consolidated operations for the fiscal years ended October 31, 2018, 2017 and 2016 includes compensation expense of $9.3 million , $7.4 million and $6.4 million , respectively, and an income tax benefit of $2.2 million , $2.8 million and $2.4 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, 2018, there was $26.9 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 3.5 years. The total fair value of stock options that vested in fiscal 2018, 2017 and 2016 was $8.5 million , $5.3 million and $5.8 million , respectively. If there were a change in control of the Company, all of the unvested options outstanding as of October 31, 2018 would become immediately exercisable. The fair value of each stock option grant in fiscal 2018, 2017 and 2016 was estimated on the date of grant using the Black-Scholes option-pricing model based on the following weighted average assumptions: Year ended October 31, 2018 2017 2016 Common Stock Class A Common Stock Common Stock Class A Common Stock Common Stock Class A Common Stock Expected stock price volatility 31.00 % 27.69 % 37.89 % 28.18 % 39.63 % 32.52 % Risk-free interest rate 2.83 % 2.81 % 2.44 % 2.06 % 2.16 % 1.82 % Dividend yield .24 % .29 % .26 % .31 % .24 % .32 % Forfeiture rate .00 % .00 % .00 % .00 % .00 % .00 % Expected option life (years) 9 8 9 7 9 6 Weighted average fair value $30.00 $20.93 $21.36 $12.47 $12.10 $7.92 |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended |
Oct. 31, 2018 | |
Retirement Benefits [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 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. Unless specified otherwise, all capitalized terms herein are defined in the 401(k) Plan document. Participants receive 100% vesting in Employee Contributions and on cash dividends received on Company common stock. Vesting in Employer Contributions is based on a participant’s number of Years of Service. Employer Contributions to the 401(k) Plan charged to income in fiscal 2018, 2017 and 2016 totaled $8.0 million , $7.8 million and $7.0 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, 2015 28 28 Shares registered for issuance to the 401(k) Plan 586 586 Issuance of common stock to the 401(k) Plan (123 ) (123 ) Shares available for issuance as of October 31, 2016 491 491 Issuance of common stock to the 401(k) Plan (93 ) (93 ) Shares available for issuance as of October 31, 2017 398 398 Issuance of common stock to the 401(k) Plan (65 ) (65 ) Shares available for issuance as of October 31, 2018 333 333 As previously mentioned in Note 1, Summary of Significant Accounting Policies, the Company acquired a frozen qualified defined benefit pension plan (the "Plan") in connection with a prior year acquisition. Changes in the Plan's projected benefit obligation and plan assets during fiscal 2018 and 2017 are as follows (in thousands): Change in projected benefit obligation: Projected benefit obligation as of October 31, 2016 $14,511 Actuarial gain (156 ) Interest cost 561 Benefits paid (916 ) Projected benefit obligation as of October 31, 2017 14,000 Actuarial gain (749 ) Interest cost 539 Benefits paid (900 ) Projected benefit obligation as of October 31, 2018 $12,890 Change in plan assets: Fair value of plan assets as of October 31, 2016 $10,510 Actual return on plan assets 1,048 Employer contributions 428 Benefits paid (916 ) Fair value of plan assets as of October 31, 2017 11,070 Actual return on plan assets (151 ) Employer contributions 360 Benefits paid (900 ) Fair value of plan assets as of October 31, 2018 $10,379 Funded status as of October 31, 2017 ($2,930 ) Funded status as of October 31, 2018 ($2,511 ) The $2.5 million and $2.9 million difference between the projected benefit obligation and fair value of plan assets as of October 31, 2018 and October 31, 2017, respectively, is included in other long-term liabilities within the Company's Consolidated Balance Sheets. Additionally, the Plan experienced a $.1 million unrealized loss during fiscal 2018 and a $.5 million unrealized gain during fiscal 2017, that were recognized in other comprehensive income (loss) and reported net of less than $.1 million and $.2 million of tax in fiscal 2018 and 2017, respectively. The total unrealized loss in accumulated other comprehensive loss that has yet to be recognized as a component of net periodic pension income (expense) as of October 31, 2018 is $1.8 million (pre-tax). Weighted average assumptions used to determine the projected benefit obligation are as follows: As of October 31, 2018 2017 Discount rate 4.49 % 3.98 % Weighted average assumptions used to determine net pension income are as follows: Year ended October 31, 2018 2017 2016 Discount rate 3.98 % 3.99 % 4.47 % 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, 2018 2017 2016 Expected return on plan assets $728 $688 $702 Less: Interest cost (539 ) (561 ) (613 ) Less: Amortization of unrealized loss (17 ) (46 ) — Net pension income $172 $81 $89 The Company anticipates making contributions of $1.0 million to the Plan during fiscal 2019. 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, 2019 $930 2020 929 2021 897 2022 877 2023 869 2024-2028 4,329 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, 2018 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 $5,276 $— $— $5,276 Equity securities 5,006 — — 5,006 Money market funds and cash 97 — — 97 $10,379 $— $— $10,379 As of October 31, 2017 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 $5,382 $— $— $5,382 Equity securities 5,593 — — 5,593 Money market funds and cash 95 — — 95 $11,070 $— $— $11,070 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, 2018 2017 Actual Target Actual Target Fixed income securities 51 % 50 % 49 % 50 % Equity securities 48 % 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, 2018 | |
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, 2018, management’s estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is approximately $132.0 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, 2018 redeemable at fair value is approximately $83.5 million and the portion redeemable based solely on a multiple of future earnings is approximately $48.5 million . A summary of the Put Rights associated with the redeemable noncontrolling interests in certain of the Company’s subsidiaries as of October 31, 2018 is as follows: Subsidiary Operating Company Earliest Purchase 2005 ETG 95.9% 2019 (1) 4 (2) 2006 FSG 80.1% 2019 (1) 4 2008 FSG 82.3% 2019 (1) 5 2009 ETG 82.5% 2019 (1) 1 2012 ETG 78.0% 2019 (1) 2 2012 FSG 84.0% 2019 (1) 4 2012 FSG 80.1% 2019 (1) 4 2015 FSG 80.0% 2019 4 2015 FSG 80.1% 2020 4 2015 ETG 80.1% 2020 2 2015 FSG 80.1% 2022 4 2017 FSG 80.1% 2022 2 (3) 2018 ETG 85.0% 2021 1 (1) Currently puttable (2) A portion is to be purchased in a lump sum (3) The second purchase is to be made two years after the first Put Right Year The estimated aggregate Redemption Amount of the Put Rights that are currently puttable or becoming puttable during fiscal 2019 is approximately $61.3 million , of which approximately $27.7 million would be payable in fiscal 2019 should all of the eligible associated noncontrolling interest holders elect to exercise their Put Rights during fiscal 2019. Additionally, the Company has call rights to purchase the equity interests of the noncontrolling holders over the same purchase period as the Put Rights. During fiscal 2016, the holders of a 19.9% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2011 exercised their option to cause the Company to purchase their interests over a two-year period ending in fiscal 2017. Accordingly, the Company’s ownership interest in the subsidiary increased to 100% effective March 2017. The $3.8 million and $3.6 million |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 12 Months Ended |
Oct. 31, 2018 | |
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, 2018 2017 2016 Numerator: Net income attributable to HEICO $259,233 $185,985 $156,192 Denominator: Weighted average common shares outstanding - basic 132,543 131,703 130,948 Effect of dilutive stock options 4,153 3,885 2,197 Weighted average common shares outstanding - diluted 136,696 135,588 133,145 Net income per share attributable to HEICO shareholders: Basic $1.96 $1.41 $1.19 Diluted $1.90 $1.37 $1.17 Anti-dilutive stock options excluded 512 799 1,133 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Oct. 31, 2018 | |
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: 2018 $404,410 $430,602 $465,825 $476,884 2017 $343,432 $368,657 $391,500 $421,224 Gross profit: 2018 $154,791 $167,857 $181,609 $186,458 2017 $125,417 $140,382 $148,897 $160,029 Net income from consolidated operations: 2018 $71,695 $66,011 $73,899 $74,081 2017 $46,265 $50,833 $51,475 $59,087 Net income attributable to HEICO: 2018 $65,152 $59,618 $67,086 $67,377 2017 $40,927 $45,686 $45,698 $53,674 Net income per share attributable to HEICO: Basic: 2018 $.49 $.45 $.51 $.51 2017 $.31 $.35 $.35 $.41 Diluted: 2018 $.48 $.44 $.49 $.49 2017 $.30 $.34 $.34 $.39 During the first quarter of fiscal 2018, the U.S. government enacted significant changes to existing tax law resulting in the Company recording a provisional discrete tax benefit from remeasuring its U.S. federal net deferred tax liabilities that was partially offset by a provisional discrete tax expenses related to a one-time transition tax on the unremitted earnings of the Company's foreign subsidiaries. The net impact of these provisional amounts increased net income attributable to HEICO by $11.9 million , or $.09 per basic and dilute share. See Note 6, Income Taxes, for additional information regarding changes to existing tax law. During the first quarter of fiscal 2017, the Company adopted ASU 2016-09, resulting in the recognition of a $3.1 million discrete income tax benefit and a 1,220,000 increase in the Company's weighted average number of diluted common shares outstanding, which, net of noncontrolling interests, increased net income attributable to HEICO by $2.6 million , or $.02 per basic and $.01 per diluted share. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Oct. 31, 2018 | |
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. Further, the FSG engineers, designs and manufactures thermal insulation blankets and parts and is a leading distributor of aviation electrical interconnect products and electromechanical parts. The ETG collectively 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, emergency locator transmission beacons, electromagnetic interference shielding, traveling wave tube amplifiers, harsh environment electronic connectors and other interconnect products, communications and electronic intercept receivers and tuners, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft, radio frequency (RF) and microwave amplifiers, transmitters and receivers, satellite microwave modules and integrated subsystems and high performance active antenna systems 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 (1) Consolidated Totals FSG ETG Year ended October 31, 2018: Net sales $1,097,937 $701,827 ($22,043 ) $1,777,721 Depreciation 13,322 9,225 692 23,239 Amortization 19,530 33,339 1,083 53,952 Operating income 206,623 204,508 (34,886 ) 376,245 Capital expenditures 13,074 9,531 19,266 41,871 Total assets 1,093,858 1,391,997 167,541 2,653,396 Year ended October 31, 2017: Net sales $967,540 $574,261 ($16,988 ) $1,524,813 Depreciation 13,042 8,609 227 21,878 Amortization 18,026 24,167 752 42,945 Operating income 179,278 157,451 (30,071 ) 306,658 Capital expenditures 15,665 10,100 233 25,998 Total assets 1,042,925 1,339,363 130,143 2,512,431 Year ended October 31, 2016: Net sales $875,870 $511,272 ($10,884 ) $1,376,258 Depreciation 12,113 8,030 218 20,361 Amortization 16,590 22,664 662 39,916 Operating income 163,427 126,031 (24,113 ) 265,345 Capital expenditures 18,434 11,962 467 30,863 Total assets 877,672 1,015,696 105,044 1,998,412 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. The following table summarizes the Company’s net sales to external customers by product lines included in each operating segment (in thousands): Year ended October 31, 2018 2017 2016 Flight Support Group: Aftermarket replacement parts (1) $582,562 $489,644 $405,108 Repair and overhaul parts and services (2) 286,454 270,482 251,357 Specialty products (3) 228,921 207,414 219,405 Total net sales 1,097,937 967,540 875,870 Electronic Technologies Group: Electronic component parts for defense, space and aerospace equipment (4) 547,088 420,991 371,297 Electronic component parts for equipment in various other industries (5) 154,739 153,270 139,975 Total net sales 701,827 574,261 511,272 Other, primarily corporate and intersegment (22,043 ) (16,988 ) (10,884 ) Total consolidated net sales $1,777,721 $1,524,813 $1,376,258 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh. (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners and high performance active antenna systems. (5) Includes various component parts such as electromagnetic and radio interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products and custom molded cable assemblies. Major Customer and Geographic Information The Company markets its products and services in approximately 115 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 foreign 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. 2018 2017 2016 Net Sales: United States of America $1,127,998 $1,007,491 $904,670 Other countries 649,723 517,322 471,588 Total net sales $1,777,721 $1,524,813 $1,376,258 Long-lived assets: United States of America $124,225 $97,367 $94,889 Other countries 30,514 32,516 26,722 Total long-lived assets $154,739 $129,883 $121,611 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2018 | |
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, 2019 $14,961 2020 14,991 2021 14,147 2022 12,546 2023 7,334 Thereafter 18,007 Total minimum lease commitments $81,986 Total rent expense charged to operations for operating leases in fiscal 2018, 2017 and 2016 amounted to $17.5 million , $15.6 million and $14.7 million , respectively. Guarantees As of October 31, 2018, the Company has arranged for standby letters of credit aggregating $4.3 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 in fiscal 2018 and 2017 are as follows (in thousands): Year ended October 31, 2018 2017 Balances as of beginning of year $2,921 $3,351 Accruals for warranties 2,720 2,254 Acquired warranty liabilities 320 — Warranty claims settled (2,655 ) (2,684 ) Balances as of end of year $3,306 $2,921 Litigation |
SUPPLEMENTAL DISCLOSURES OF CAS
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | 12 Months Ended |
Oct. 31, 2018 | |
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 2018, 2017 and 2016 (in thousands): Year ended October 31, 2018 2017 2016 Cash paid for income taxes $90,488 $95,851 $87,486 Cash received from income tax refunds (1,510 ) (2,953 ) (1,906 ) Cash paid for interest 19,233 9,631 8,288 Contingent consideration — 13,797 1,225 Additional purchase consideration (407 ) 220 — Property, plant and equipment acquired through capital lease obligations 7,166 37 1,111 |
SUBSEQUENT EVENT SUBSEQUENT EVE
SUBSEQUENT EVENT SUBSEQUENT EVENT (Notes) | 12 Months Ended |
Oct. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS In November 2018, the Company, through HEICO Electronic, acquired all of the stock of Specialty Silicone Products, Inc. ("SSP"). SSP designs and manufactures silicone material for a variety of demanding applications, used in aerospace, defense, research, oil and gas, testing, pharmaceuticals and other markets. The purchase price of this acquisition was paid in cash principally using proceeds from the Company's revolving credit facility and the total consideration for the acquisition is not material or significant to the Company’s consolidated financial statements. In November 2018, the Company, through HEICO Electronic, acquired 93% of the stock of Apex Micotechnology, Inc. ("Apex"). Apex designs and manufactures precision power analog monolithic, hybrid and open frame components for a certain wide range of aerospace, defense, industrial, measurement, medical and test applications. The purchase price of this acquisition was paid in cash using proceeds from the Company's revolving credit facility 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, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Year ended October 31, 2018 2017 2016 Allowance for doubtful accounts (in thousands): Allowance as of beginning of year $3,006 $3,159 $2,038 Additions charged to costs and expenses 492 7 390 Additions (credited) charged to other accounts (a) (13 ) 298 973 Deductions (b) (227 ) (458 ) (242 ) Allowance as of end of year $3,258 $3,006 $3,159 (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, 2018 2017 2016 Inventory valuation reserves (in thousands): Reserves as of beginning of year $92,148 $81,449 $69,654 Additions charged to costs and expenses 9,227 6,284 10,270 Additions charged to other accounts (a) 1,270 6,264 6,268 Deductions (b) (7,254 ) (1,849 ) (4,743 ) Reserves as of end of year $95,391 $92,148 $81,449 (a) Principally additions from acquisitions and foreign currency translation adjustments. (b) |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2018 | |
Summary Of Significant Accounting Policies (Policies) [Abstract] | |
Nature Of Business, Policy [Policy Text Block] | Nature of Business |
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% 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. Additionally, a wholly owned subsidiary of HEICO Electronic consolidates two subsidiaries which are 78% and 85% owned, respectively, while an 82.5% owned subsidiary of HEICO Electronic consolidates a subsidiary in which it has a 53.1% |
Stock Split [Policy Text Block] | Stock Splits In June 2018, December 2017 and March 2017, the Company's Board of Directors declared a 5-for-4 stock split on both classes of the Company's common stock. The stock splits were effected as of June 28, 2018, January 18, 2018 and April 19, 2017, respectively, in the form of a 25% |
Use of Estimates and Assumptions, Policy [Policy Text Block] | Use of Estimates and Assumptions |
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, without liquidity fees or redemption gates, 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 |
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 net realizable value, 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. |
Property, Plant and Equipment [Line Items] | |
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 generally depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements 2 to 20 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. |
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, were not material in fiscal 2018 or 2017 and totaled $3.2 million in fiscal 2016. See Note 2, Acquisitions, for additional information regarding fiscal 2016 acquisition costs. |
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 4 to 15 years Intellectual property 4 to 22 years Licenses 10 to 17 years Patents 5 to 20 years Trade names 8 to 15 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 |
Customer Rebates and Credits, Policy [Policy Text Block] | Customer Rebates and Credits |
Product Warranties, Policy [Policy Text Block] | Product Warranties |
Defined Benefit Pension Plan, Policy [Policy Text Block] | Defined Benefit Pension Plan In connection with a prior year 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, 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 |
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 2% , 3% and 3% in fiscal 2018, 2017 and 2016, 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. SG&A 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 2018, 2017 or 2016. 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. Effective as of the beginning of the first quarter of fiscal 2019, the Company will adopt Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” which will impact the timing of revenue recognition for two types of the Company's customer contracts. See “New Accounting Pronouncements,” below for additional information. |
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 |
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 effect 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 |
Net Income per Share Attributable to HEICO Shareholders, Policy [Policy Text Block] | Net Income per Share Attributable to HEICO Shareholders |
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 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, 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. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented (“full retrospective method”) or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application (“modified retrospective method”). The Company has completed a review of its customer contracts and has evaluated the impact of ASU 2014-09 on each of its primary revenue streams. While the Company finalizes its overall assessment of the amended guidance, the most significant impact relates to the timing of revenue recognition, presentation and disclosures. ASU 2014-09 will impact the timing of revenue recognition for two types of the Company’s customer contracts. For certain contracts under which it produces products with no alternative use and for which the Company has an enforceable right to payment during the production cycle and for certain other contracts under which the Company creates or enhances customer-owned assets while performing repair and overhaul services, ASU 2014-09 will require HEICO to recognize revenue using an over-time recognition model as opposed to the Company’s current policy of recognizing revenue at the time of shipment. For impacted customer contracts, the adoption of ASU 2014-09 will accelerate revenue recognition and the associated cost of sales. Effective as of the beginning of the first quarter of fiscal 2019, the Company will adopt ASU 2014-09 using the modified retrospective method and recognize a cumulative effect adjustment to retained earnings based on any open contracts at that time for which revenue recognition has changed from a point-in-time recognition model to an over-time recognition model. While the ongoing impact to net sales and net income is not expected to be material to the Company’s consolidated results of operations, the future impact of ASU 2014-09 is dependent on the mix and nature of specific customer contracts. The Company is nearing completion of implementing changes to its business processes, systems and controls needed to support recognition and disclosure requirements under ASU 2014-09. 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. Previously, inventories were measured at the lower of cost or market. The Company adopted ASU 2015-11 in the first quarter of fiscal 2018, resulting in no material effect on the Company's consolidated results of operations, financial position or cash flows. 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, as amended, provides certain optional transition relief and shall be applied either at the beginning of the earliest comparative period presented in the year of adoption using a modified retrospective transition approach or by recognizing a cumulative effect adjustment at the date of adoption. 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 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. The Company adopted ASU 2016-15 on a retrospective basis in the fourth quarter of fiscal 2018, which requires that proceeds from corporate-owned life insurance policies be classified as cash inflows from investing activities. Such proceeds aggregated $.1 million over the past three fiscal years and were all received in fiscal 2016. In addition, and as permitted by ASU 2016-15, the Company has elected to classify investments related to the HEICO Corporation Leadership Compensation Plan as cash outflows from investing activities as such investments primarily represent premium payments on corporate-owned life insurance policies. The adoption of ASU 2016-15 resulted in an $11.5 million , $13.4 million and $10.5 million increase in cash provided by operating activities and in cash used in investing activities in fiscal 2018, 2017 and fiscal 2016, respectively. |
Assets Held under Capital Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Policy [Policy Text Block] | Capital Leases |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Summary Of Significant Accounting Policies (Details) [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s property, plant and equipment is generally depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements 2 to 20 years Tooling 2 to 5 years |
Intangible Assets Useful Life [Table Text Block] | 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 4 to 15 years Intellectual property 4 to 22 years Licenses 10 to 17 years Patents 5 to 20 years Trade names 8 to 15 years |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in connection with the Company's other fiscal 2018, 2017 and 2016 acquisitions (in years): Year ended October 31, 2018 2017 2016 Customer relationships 7 12 11 Trade names — — 15 Intellectual property 10 13 15 |
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, 2018 2017 2016 Cash paid $61,931 $109,346 $11,000 Less: cash acquired (4,000 ) (7,713 ) — Cash paid, net 57,931 101,633 11,000 Contingent consideration — — 1,225 Additional purchase consideration (407 ) 1,300 — Total consideration $57,524 $102,933 $12,225 |
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, 2018 2017 2016 Assets acquired: Goodwill $38,320 $49,932 $6,876 Customer relationships 11,620 29,500 2,800 Trade names 760 16,750 300 Intellectual property 6,970 1,950 2,000 Inventories 6,219 28,410 249 Accounts receivable 1,488 15,165 — Property, plant and equipment 1,807 4,522 — Other assets 51 982 — Total assets acquired, excluding cash 67,235 147,211 12,225 Liabilities assumed: Accounts payable 671 7,696 — Accrued expenses 1,522 6,054 — Deferred income taxes — 5,432 — Other liabilities — 1,434 — Total liabilities assumed 2,193 20,616 — Noncontrolling interests in consolidated subsidiaries 7,518 23,662 — Net assets acquired, excluding cash $57,524 $102,933 $12,225 |
Electronic Technologies Group [Member] | AAT [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 AAT (in thousands): Cash paid $317,500 Less: cash acquired (868 ) Cash paid, net 316,632 Contingent consideration 13,797 Additional purchase consideration 544 Total consideration $330,973 |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the allocation of the total consideration for the acquisition of AAT to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands): Assets acquired: Goodwill $157,901 Customer relationships 100,000 Intellectual property 39,000 Trade name 20,000 Inventories 8,306 Accounts receivable 6,115 Property, plant and equipment 1,893 Other assets 208 Total assets acquired, excluding cash 333,423 Liabilities assumed: Accounts payable 1,299 Accrued expenses 1,151 Total liabilities assumed 2,450 Net assets acquired, excluding cash $330,973 |
Schedule of Pro Forma Information [Table Text Block] | The following table presents unaudited pro forma financial information for fiscal 2017 and fiscal 2016 as if the acquisition of AAT had occurred as of November 1, 2015 (in thousands, except per share data): Year ended October 31, 2017 2016 Net sales $1,582,653 $1,428,336 Net income from consolidated operations $220,419 $185,070 Net income attributable to HEICO $198,744 $165,112 Net income per share attributable to HEICO shareholders: Basic $1.51 $1.26 Diluted $1.47 $1.24 |
Electronic Technologies Group [Member] | Robertson [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 Robertson (in thousands): Cash paid $256,293 Less: cash acquired (3,271 ) Total consideration $253,022 |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the allocation of the total consideration for the acquisition of Robertson to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands): Assets acquired: Goodwill $93,425 Customer relationships 55,100 Intellectual property 39,600 Trade name 28,400 Inventories 27,417 Property, plant and equipment 7,476 Accounts receivable 4,973 Other assets 1,884 Total assets acquired, excluding cash 258,275 Liabilities assumed: Accounts payable 4,606 Accrued expenses 647 Total liabilities assumed 5,253 Net assets acquired, excluding cash $253,022 |
SELECTED FINANCIAL STATEMENT _2
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable As of October 31, (in thousands) 2018 2017 Accounts receivable $254,727 $225,462 Less: Allowance for doubtful accounts (3,258 ) (3,006 ) Accounts receivable, net $251,469 $222,456 |
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) 2018 2017 Costs incurred on uncompleted contracts $39,350 $29,491 Estimated earnings 19,708 19,902 59,058 49,393 Less: Billings to date (45,731 ) (41,262 ) $13,327 $8,131 Included in the accompanying Consolidated Balance Sheets under the following captions: Accounts receivable, net (costs and estimated earnings in excess of billings) $14,183 $9,377 Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) (856 ) (1,246 ) $13,327 $8,131 |
Schedule of Inventory [Table Text Block] | Inventories As of October 31, (in thousands) 2018 2017 Finished products $192,758 $173,559 Work in process 49,315 39,986 Materials, parts, assemblies and supplies 158,039 128,031 Contracts in process 1,649 2,415 Less: Billings to date (208 ) (363 ) Inventories, net of valuation reserves $401,553 $343,628 |
Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment As of October 31, (in thousands) 2018 2017 Land $5,864 $5,435 Buildings and improvements 101,424 91,916 Machinery, equipment and tooling 230,108 191,298 Construction in progress 5,044 5,553 342,440 294,202 Less: Accumulated depreciation and amortization (187,701 ) (164,319 ) Property, plant and equipment, net $154,739 $129,883 |
Schedule Of Accrued Expenses and Other Current Liabilities [Table Text Block] | Accrued Expenses and Other Current Liabilities As of October 31, (in thousands) 2018 2017 Accrued employee compensation and related payroll taxes $97,048 $78,058 Deferred revenue 28,262 29,247 Accrued customer rebates and credits 16,861 12,866 Contingent consideration and other accrued purchase consideration 6,138 7,588 Other 23,205 19,853 Accrued expenses and other current liabilities $171,514 $147,612 |
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, 2018 2017 2016 R&D expenses $57,450 $46,473 $44,726 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive loss during fiscal 2018 and 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 gain 14,420 321 14,741 Amortization of unrealized loss — 29 29 Balances as of October 31, 2017 (9,533 ) (1,023 ) (10,556 ) Unrealized (loss) gain (4,837 ) 124 (4,713 ) Amortization of unrealized loss — 13 13 Balances as of October 31, 2018 ($14,370 ) ($886 ) ($15,256 ) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill during fiscal 2018 and 2017 by operating segment are as follows (in thousands): Segment Consolidated FSG ETG Totals Balances as of October 31, 2016 $336,681 $529,036 $865,717 Goodwill acquired 48,960 160,903 209,863 Foreign currency translation adjustments 2,965 2,761 5,726 Balances as of October 31, 2017 388,606 692,700 1,081,306 Goodwill acquired 10,586 27,734 38,320 Adjustments to goodwill 972 (3,003 ) (2,031 ) Foreign currency translation adjustments (1,470 ) (1,293 ) (2,763 ) Balances as of October 31, 2018 $398,694 $716,138 $1,114,832 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of October 31, 2018 As of October 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $373,946 ($135,359 ) $238,587 $379,966 ($117,069 ) $262,897 Intellectual property 185,983 (56,055 ) 129,928 181,811 (44,861 ) 136,950 Licenses 6,559 (3,522 ) 3,037 6,559 (2,928 ) 3,631 Patents 927 (609 ) 318 870 (551 ) 319 Non-compete agreements 814 (814 ) — 817 (817 ) — Trade names 466 (157 ) 309 466 (118 ) 348 568,695 (196,516 ) 372,179 570,489 (166,344 ) 404,145 Non-Amortizing Assets: Trade names 134,181 — 134,181 133,936 — 133,936 $702,876 ($196,516 ) $506,360 $704,425 ($166,344 ) $538,081 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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, 2018 2017 Borrowings under revolving credit facility $523,000 $671,000 Capital leases and note payable 9,470 2,979 532,470 673,979 Less: Current maturities of long-term debt (859 ) (451 ) $531,611 $673,528 |
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, 2019 $1,240 2020 1,191 2021 1,184 2022 1,175 2023 873 Thereafter 6,412 Total minimum lease payments 12,075 Less: amount representing interest (2,718 ) Present value of minimum lease payments $9,357 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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, 2018 2017 2016 Domestic $309,123 $264,420 $227,927 Foreign 47,163 33,540 29,123 Income before taxes and noncontrolling interests $356,286 $297,960 $257,050 |
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, 2018 2017 2016 Current: Federal $61,548 $85,047 $75,261 State 9,420 6,820 7,463 Foreign 12,608 9,529 7,370 83,576 101,396 90,094 Deferred: Federal (13,115 ) (9,661 ) (5,979 ) State 1,578 (499 ) (2,587 ) Foreign (1,439 ) (936 ) (628 ) (12,976 ) (11,096 ) (9,194 ) Total income tax expense $70,600 $90,300 $80,900 |
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, 2018 2017 2016 Federal statutory income tax rate (blended rate in fiscal 2018) 23.3 % 35.0 % 35.0 % State taxes, net of federal income tax benefit 2.9 % 1.9 % 1.7 % Discrete net tax benefit related to Tax Act (3.4 %) — % — % Research and development tax credits (2.0 %) (1.8 %) (2.7 %) Domestic production activities tax deduction (.8 %) (1.1 %) (1.3 %) Tax benefit related to stock option exercises (.5 %) (1.0 %) — % Noncontrolling interests’ share of income (.3 %) (.7 %) (.7 %) Tax-exempt losses (gains) on corporate-owned life insurance policies .1 % (1.8 %) (.1 %) Other, net .5 % (.2 %) (.4 %) Effective tax rate 19.8 % 30.3 % 31.5 % |
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, 2018 2017 Deferred tax assets: Deferred compensation liability $31,152 $47,093 Inventories 22,204 31,797 Share-based compensation 9,811 12,984 Bonus accrual 4,474 4,956 Customer rebates accrual 1,526 1,864 Vacation accrual 1,456 2,112 Deferred revenue 68 730 Other 7,084 9,230 Total deferred tax assets 77,775 110,766 Deferred tax liabilities: Goodwill and other intangible assets (112,533 ) (160,158 ) Property, plant and equipment (11,615 ) (7,887 ) Other (271 ) (1,747 ) Total deferred tax liabilities (124,419 ) (169,792 ) Net deferred tax liability ($46,644 ) ($59,026 ) |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the activity related to the liability for gross unrecognized tax benefits during fiscal 2018 and 2017 is as follows (in thousands): Year ended October 31, 2018 2017 Balances as of beginning of year $2,040 $1,602 Increases related to current year tax positions 591 596 Increases related to prior year tax positions 20 — Decreases related to prior year tax positions — (24 ) Settlements (394 ) — Lapses of statutes of limitations (157 ) (134 ) Balances as of end of year $2,100 $2,040 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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, 2018 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 $— $123,255 $— $123,255 Money market funds 3,560 — — 3,560 Equity securities 3,179 — — 3,179 Mutual funds 1,437 — — 1,437 Other 1,306 — — 1,306 Total assets $9,482 $123,255 $— $132,737 Liabilities: Contingent consideration $— $— $20,875 $20,875 As of October 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 $— $113,220 $— $113,220 Money market funds 3,972 — — 3,972 Equity securities 2,895 — — 2,895 Mutual funds 1,541 — — 1,541 Other 1,246 — — 1,246 Total assets $9,654 $113,220 $— $122,874 Liabilities: Contingent consideration $— $— $27,573 $27,573 |
Fair Value Measurement Inputs and 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, 2018 are as follows: Fiscal 2017 Acquisition Fiscal 2016 Acquisition Fiscal 2015 Acquisition Compound annual revenue growth rate range (4%) - 7% 4 % - 13% 10 % - 13% Weighted average discount rate 6.3% 4.8% .8% |
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) during fiscal 2018 and 2017 are as follows (in thousands): Liabilities Balance as of October 31, 2016 $18,881 Contingent consideration related to acquisition 13,797 Increase in accrued contingent consideration, net 1,100 Payment of contingent consideration (7,039 ) Foreign currency transaction adjustments 834 Balance as of October 31, 2017 27,573 Payment of contingent consideration (5,425 ) Decrease in accrued contingent consideration, net (1,365 ) Foreign currency transaction adjustments 92 Balance as of October 31, 2018 $20,875 Included in the accompanying Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $6,107 Other long-term liabilities 14,768 $20,875 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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, 2015 2,590 6,514 $13.07 Granted (586 ) 586 $23.58 Exercised — (568 ) $10.45 Cancelled 12 (12 ) $18.62 Outstanding as of October 31, 2016 2,016 6,520 $14.23 Granted (1,186 ) 1,186 $41.37 Exercised — (409 ) $15.27 Outstanding as of October 31, 2017 830 7,297 $18.58 Shares approved by the Company's shareholders for the 2018 Incentive Compensation Plan 5,000 — $— Cancelled unissued shares under the 2012 Incentive Compensation Plan (830 ) — $— Granted (412 ) 412 $65.64 Exercised — (1,285 ) $10.54 Cancelled 24 (24 ) $28.85 Outstanding as of October 31, 2018 4,612 6,400 $23.19 |
Share-based Compensation Arrangements 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, 2018 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 2,955 $23.48 4.4 $178,327 Class A Common Stock 3,445 $22.94 5.5 150,649 6,400 $23.19 5.0 $328,976 Options Exercisable Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Common Stock 2,197 $14.75 3.0 $151,756 Class A Common Stock 2,160 $15.59 4.1 110,297 4,357 $15.17 3.5 $262,053 |
Schedule of Cash Proceeds Received from Share-based Payment Awards [Table Text Block] (Deprecated 2017-01-31) | Information concerning stock options exercised is as follows (in thousands): Year ended October 31, 2018 2017 2016 Cash proceeds from stock option exercises $4,031 $5,659 $5,924 Tax benefit realized from stock option exercises 2,162 3,087 868 Intrinsic value of stock option exercises 75,152 10,376 9,751 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each stock option grant in fiscal 2018, 2017 and 2016 was estimated on the date of grant using the Black-Scholes option-pricing model based on the following weighted average assumptions: Year ended October 31, 2018 2017 2016 Common Stock Class A Common Stock Common Stock Class A Common Stock Common Stock Class A Common Stock Expected stock price volatility 31.00 % 27.69 % 37.89 % 28.18 % 39.63 % 32.52 % Risk-free interest rate 2.83 % 2.81 % 2.44 % 2.06 % 2.16 % 1.82 % Dividend yield .24 % .29 % .26 % .31 % .24 % .32 % Forfeiture rate .00 % .00 % .00 % .00 % .00 % .00 % Expected option life (years) 9 8 9 7 9 6 Weighted average fair value $30.00 $20.93 $21.36 $12.47 $12.10 $7.92 |
EMPLOYEE RETIREMENT PLANS EMPLO
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Retirement Benefits [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, 2015 28 28 Shares registered for issuance to the 401(k) Plan 586 586 Issuance of common stock to the 401(k) Plan (123 ) (123 ) Shares available for issuance as of October 31, 2016 491 491 Issuance of common stock to the 401(k) Plan (93 ) (93 ) Shares available for issuance as of October 31, 2017 398 398 Issuance of common stock to the 401(k) Plan (65 ) (65 ) Shares available for issuance as of October 31, 2018 333 333 |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Changes in the Plan's projected benefit obligation and plan assets during fiscal 2018 and 2017 are as follows (in thousands): Change in projected benefit obligation: Projected benefit obligation as of October 31, 2016 $14,511 Actuarial gain (156 ) Interest cost 561 Benefits paid (916 ) Projected benefit obligation as of October 31, 2017 14,000 Actuarial gain (749 ) Interest cost 539 Benefits paid (900 ) Projected benefit obligation as of October 31, 2018 $12,890 Change in plan assets: Fair value of plan assets as of October 31, 2016 $10,510 Actual return on plan assets 1,048 Employer contributions 428 Benefits paid (916 ) Fair value of plan assets as of October 31, 2017 11,070 Actual return on plan assets (151 ) Employer contributions 360 Benefits paid (900 ) Fair value of plan assets as of October 31, 2018 $10,379 Funded status as of October 31, 2017 ($2,930 ) Funded status as of October 31, 2018 ($2,511 ) |
Schedule of Assumptions Used [Table Text Block] | Weighted average assumptions used to determine the projected benefit obligation are as follows: As of October 31, 2018 2017 Discount rate 4.49 % 3.98 % Weighted average assumptions used to determine net pension income are as follows: Year ended October 31, 2018 2017 2016 Discount rate 3.98 % 3.99 % 4.47 % 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, 2018 2017 2016 Expected return on plan assets $728 $688 $702 Less: Interest cost (539 ) (561 ) (613 ) Less: Amortization of unrealized loss (17 ) (46 ) — Net pension income $172 $81 $89 |
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, 2019 $930 2020 929 2021 897 2022 877 2023 869 2024-2028 4,329 |
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, 2018 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 $5,276 $— $— $5,276 Equity securities 5,006 — — 5,006 Money market funds and cash 97 — — 97 $10,379 $— $— $10,379 As of October 31, 2017 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 $5,382 $— $— $5,382 Equity securities 5,593 — — 5,593 Money market funds and cash 95 — — 95 $11,070 $— $— $11,070 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, 2018 2017 Actual Target Actual Target Fixed income securities 51 % 50 % 49 % 50 % Equity securities 48 % 50 % 50 % 50 % Money market funds and cash 1 % — % 1 % — % 100 % 100 % 100 % 100 % |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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 as of October 31, 2018 is as follows: Subsidiary Operating Company Earliest Purchase 2005 ETG 95.9% 2019 (1) 4 (2) 2006 FSG 80.1% 2019 (1) 4 2008 FSG 82.3% 2019 (1) 5 2009 ETG 82.5% 2019 (1) 1 2012 ETG 78.0% 2019 (1) 2 2012 FSG 84.0% 2019 (1) 4 2012 FSG 80.1% 2019 (1) 4 2015 FSG 80.0% 2019 4 2015 FSG 80.1% 2020 4 2015 ETG 80.1% 2020 2 2015 FSG 80.1% 2022 4 2017 FSG 80.1% 2022 2 (3) 2018 ETG 85.0% 2021 1 (1) Currently puttable (2) A portion is to be purchased in a lump sum (3) The second purchase is to be made two years after the first Put Right Year |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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, 2018 2017 2016 Numerator: Net income attributable to HEICO $259,233 $185,985 $156,192 Denominator: Weighted average common shares outstanding - basic 132,543 131,703 130,948 Effect of dilutive stock options 4,153 3,885 2,197 Weighted average common shares outstanding - diluted 136,696 135,588 133,145 Net income per share attributable to HEICO shareholders: Basic $1.96 $1.41 $1.19 Diluted $1.90 $1.37 $1.17 Anti-dilutive stock options excluded 512 799 1,133 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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: 2018 $404,410 $430,602 $465,825 $476,884 2017 $343,432 $368,657 $391,500 $421,224 Gross profit: 2018 $154,791 $167,857 $181,609 $186,458 2017 $125,417 $140,382 $148,897 $160,029 Net income from consolidated operations: 2018 $71,695 $66,011 $73,899 $74,081 2017 $46,265 $50,833 $51,475 $59,087 Net income attributable to HEICO: 2018 $65,152 $59,618 $67,086 $67,377 2017 $40,927 $45,686 $45,698 $53,674 Net income per share attributable to HEICO: Basic: 2018 $.49 $.45 $.51 $.51 2017 $.31 $.35 $.35 $.41 Diluted: 2018 $.48 $.44 $.49 $.49 2017 $.30 $.34 $.34 $.39 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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 (1) Consolidated Totals FSG ETG Year ended October 31, 2018: Net sales $1,097,937 $701,827 ($22,043 ) $1,777,721 Depreciation 13,322 9,225 692 23,239 Amortization 19,530 33,339 1,083 53,952 Operating income 206,623 204,508 (34,886 ) 376,245 Capital expenditures 13,074 9,531 19,266 41,871 Total assets 1,093,858 1,391,997 167,541 2,653,396 Year ended October 31, 2017: Net sales $967,540 $574,261 ($16,988 ) $1,524,813 Depreciation 13,042 8,609 227 21,878 Amortization 18,026 24,167 752 42,945 Operating income 179,278 157,451 (30,071 ) 306,658 Capital expenditures 15,665 10,100 233 25,998 Total assets 1,042,925 1,339,363 130,143 2,512,431 Year ended October 31, 2016: Net sales $875,870 $511,272 ($10,884 ) $1,376,258 Depreciation 12,113 8,030 218 20,361 Amortization 16,590 22,664 662 39,916 Operating income 163,427 126,031 (24,113 ) 265,345 Capital expenditures 18,434 11,962 467 30,863 Total assets 877,672 1,015,696 105,044 1,998,412 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. |
Schedule of Product Information [Table Text Block] | The following table summarizes the Company’s net sales to external customers by product lines included in each operating segment (in thousands): Year ended October 31, 2018 2017 2016 Flight Support Group: Aftermarket replacement parts (1) $582,562 $489,644 $405,108 Repair and overhaul parts and services (2) 286,454 270,482 251,357 Specialty products (3) 228,921 207,414 219,405 Total net sales 1,097,937 967,540 875,870 Electronic Technologies Group: Electronic component parts for defense, space and aerospace equipment (4) 547,088 420,991 371,297 Electronic component parts for equipment in various other industries (5) 154,739 153,270 139,975 Total net sales 701,827 574,261 511,272 Other, primarily corporate and intersegment (22,043 ) (16,988 ) (10,884 ) Total consolidated net sales $1,777,721 $1,524,813 $1,376,258 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh. (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners and high performance active antenna systems. (5) |
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. 2018 2017 2016 Net Sales: United States of America $1,127,998 $1,007,491 $904,670 Other countries 649,723 517,322 471,588 Total net sales $1,777,721 $1,524,813 $1,376,258 Long-lived assets: United States of America $124,225 $97,367 $94,889 Other countries 30,514 32,516 26,722 Total long-lived assets $154,739 $129,883 $121,611 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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, 2019 $14,961 2020 14,991 2021 14,147 2022 12,546 2023 7,334 Thereafter 18,007 Total minimum lease commitments $81,986 |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability in fiscal 2018 and 2017 are as follows (in thousands): Year ended October 31, 2018 2017 Balances as of beginning of year $2,921 $3,351 Accruals for warranties 2,720 2,254 Acquired warranty liabilities 320 — Warranty claims settled (2,655 ) (2,684 ) Balances as of end of year $3,306 $2,921 |
SUPPLEMENTAL DISCLOSURES OF C_2
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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 2018, 2017 and 2016 (in thousands): Year ended October 31, 2018 2017 2016 Cash paid for income taxes $90,488 $95,851 $87,486 Cash received from income tax refunds (1,510 ) (2,953 ) (1,906 ) Cash paid for interest 19,233 9,631 8,288 Contingent consideration — 13,797 1,225 Additional purchase consideration (407 ) 220 — Property, plant and equipment acquired through capital lease obligations 7,166 37 1,111 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Oct. 31, 2018 | |
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 |
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 |
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 |
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 ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Oct. 31, 2018 | |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Intellectual Property [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Intellectual Property [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 22 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 |
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 | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2017 | |
Summary Of Significant Accounting Policies (Details) [Abstract] | ||||||
Common Stock Dividend Percentage Rate | 25.00% | 25.00% | 25.00% | |||
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. | |||||
Business Combination, Description [Abstract] | ||||||
Business Acquisition, Transaction Costs | $ 3,200 | |||||
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 | 2.00% | 3.00% | 3.00% | |||
Proceeds from Life Insurance Policy | $ 100 | |||||
Net Investment Related to Deferred Compensation Plan | $ 11,500 | $ 13,400 | $ 10,529 | |||
Subsidiary Seven [Member] | HEICO Electronic [Member] | Subsidiary Seven [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 53.10% | |||||
Subsidiary Six [Member] | HEICO Electronic [Member] | Subsidiary Six [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 85.00% | |||||
Subsidiary Four [Member] | HEICO Electronic [Member] | Subsidiary Four [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 95.90% | |||||
Subsidiary Three [Member] | HEICO Electronic [Member] | Subsidiary Three [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 82.50% | |||||
Joint Venture [Member] | Heico Aerospace [Member] | Joint Venture [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 84.00% | |||||
Subsidiary Two [Member] | Heico Flight Support Corp [Member] | Subsidiary Two [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 84.00% | |||||
Subsidiary Two [Member] | HEICO Electronic [Member] | Subsidiary Two [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | |||||
Subsidiary Two [Member] | Heico Aerospace [Member] | Subsidiary Two [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 82.30% | |||||
Certain Subsidiaries [Member] | Heico Flight Support Corp [Member] | Subsidiaries [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | |||||
Heico Aerospace [Member] | Lufthansa Technik AG [Member] | Heico Aerospace [Member] | Heico Aerospace [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Percentage of interest owned by noncontrolling shareholders | 20.00% | |||||
Subsidiary One [Member] | Heico Flight Support Corp [Member] | Subsidiary One [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80.00% | |||||
Subsidiary One [Member] | HEICO Electronic [Member] | Subsidiary One [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | |||||
Subsidiary One [Member] | Heico Aerospace [Member] | Subsidiary One [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% | |||||
Subsidiary Five [Member] | HEICO Electronic [Member] | Subsidiary Five [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 78.00% |
ACQUISITIONS ACQUISITIONS (Deta
ACQUISITIONS ACQUISITIONS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Business Acquisition [Line Items] | |||
Cash paid, net | $ 59,775 | $ 418,265 | $ 263,811 |
Electronic Technologies Group [Member] | AAT [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | 317,500 | ||
Cash Acquired from Acquisition | (868) | ||
Cash paid, net | 316,632 | ||
Contingent purchase consideration | 13,797 | ||
Additional purchase consideration | (544) | ||
Total purchase consideration | $ 330,973 |
ACQUISITIONS ACQUISITIONS (De_2
ACQUISITIONS ACQUISITIONS (Details 2) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 |
Assets acquired: | |||
Goodwill | $ 1,114,832 | $ 1,081,306 | $ 865,717 |
Inventories | 8,306 | ||
Electronic Technologies Group [Member] | |||
Assets acquired: | |||
Goodwill | 716,138 | $ 692,700 | $ 529,036 |
Electronic Technologies Group [Member] | AAT [Member] | |||
Assets acquired: | |||
Goodwill | 157,901 | ||
Accounts receivable | 6,115 | ||
Property, plant and equipment | 1,893 | ||
Other assets | 208 | ||
Total assets acquired, excluding cash | 333,423 | ||
Liabilities assumed: | |||
Accounts payable | 1,299 | ||
Accrued expenses | 1,151 | ||
Total liabilities assumed | 2,450 | ||
Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 330,973 | ||
Electronic Technologies Group [Member] | AAT [Member] | Trade Names [Member] | |||
Assets acquired: | |||
Identifiable intangible assets, indefinite-lived | 20,000 | ||
Electronic Technologies Group [Member] | AAT [Member] | Customer Relationships [Member] | |||
Assets acquired: | |||
Identifiable intangible assets, finite-lived | 100,000 | ||
Electronic Technologies Group [Member] | AAT [Member] | Intellectual Property [Member] | |||
Assets acquired: | |||
Identifiable intangible assets, finite-lived | $ 39,000 |
ACQUISITIONS ACQUISITIONS (De_3
ACQUISITIONS ACQUISITIONS (Details 3) - Electronic Technologies Group [Member] - AAT [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Business Acquisition [Line Items] | ||
Pro Forma Revenue | $ 1,582,653 | $ 1,428,336 |
Pro Forma Net Income (Loss) Attributable to HEICO | 220,419 | 185,070 |
Pro Forma Net Income Attributable to Parent | $ 198,744 | $ 165,112 |
Pro Forma Net Income (Loss) Per Share Attributable To Common Shareholders [Abstract] | ||
Pro Forma Earnings Per Share, Basic | $ 1.51 | $ 1.26 |
Pro Forma Earnings Per Share, Diluted | $ 1.47 | $ 1.24 |
ACQUISITIONS ACQUISITIONS (De_4
ACQUISITIONS ACQUISITIONS (Details 4) - Electronic Technologies Group [Member] - Robertson [Member] $ in Thousands | 12 Months Ended |
Oct. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Cash paid | $ 256,293 |
Less: cash acquired | (3,271) |
Total purchase consideration | $ 253,022 |
ACQUISITIONS (Details 5)
ACQUISITIONS (Details 5) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 |
Assets acquired: | |||
Goodwill | $ 1,114,832 | $ 1,081,306 | $ 865,717 |
Inventories | 8,306 | ||
Electronic Technologies Group [Member] | |||
Assets acquired: | |||
Goodwill | 716,138 | $ 692,700 | $ 529,036 |
Electronic Technologies Group [Member] | Robertson [Member] | |||
Assets acquired: | |||
Goodwill | 93,425 | ||
Inventories | 27,417 | ||
Property, plant and equipment | 7,476 | ||
Accounts receivable | 4,973 | ||
Other assets | 1,884 | ||
Total assets acquired, excluding cash | 258,275 | ||
Liabilities assumed: | |||
Accounts payable | 4,606 | ||
Accrued expenses | 647 | ||
Total liabilities assumed | 5,253 | ||
Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 253,022 | ||
Electronic Technologies Group [Member] | Robertson [Member] | Trade Names [Member] | |||
Assets acquired: | |||
Identifiable intangible assets, indefinite-lived | 28,400 | ||
Electronic Technologies Group [Member] | Robertson [Member] | Customer Relationships [Member] | |||
Assets acquired: | |||
Identifiable intangible assets, finite-lived | 55,100 | ||
Electronic Technologies Group [Member] | Robertson [Member] | Intellectual Property [Member] | |||
Assets acquired: | |||
Identifiable intangible assets, finite-lived | $ 39,600 |
ACQUISITIONS ACQUISITIONS (De_5
ACQUISITIONS ACQUISITIONS (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Business Acquisition [Line Items] | |||
Cash paid, net | $ 59,775 | $ 418,265 | $ 263,811 |
Other Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid | 61,931 | 109,346 | 11,000 |
Less: cash acquired | (4,000) | (7,713) | 0 |
Cash paid, net | 57,931 | 101,633 | 11,000 |
Contingent purchase consideration | 0 | 0 | 1,225 |
Additional purchase consideration | (407) | 1,300 | 0 |
Total purchase consideration | $ 57,524 | $ 102,933 | $ 12,225 |
ACQUISITIONS ACQUISITIONS (De_6
ACQUISITIONS ACQUISITIONS (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Assets acquired: | |||
Goodwill | $ 1,114,832 | $ 1,081,306 | $ 865,717 |
Inventories | 8,306 | ||
Other Acquisitions [Member] | |||
Assets acquired: | |||
Goodwill | 38,320 | 49,932 | 6,876 |
Inventories | 6,219 | 28,410 | 249 |
Accounts receivable | 1,488 | 15,165 | 0 |
Property, plant and equipment | 1,807 | 4,522 | 0 |
Other assets | 51 | 982 | 0 |
Total assets acquired, excluding cash | 67,235 | 147,211 | 12,225 |
Liabilities assumed: | |||
Accounts payable | 671 | 7,696 | 0 |
Accrued expenses | 1,522 | 6,054 | 0 |
Deferred income taxes | 0 | 5,432 | 0 |
Other liabilities | 0 | 1,434 | 0 |
Total liabilities assumed | 2,193 | 20,616 | 0 |
Noncontrolling interests in consolidated subsidiaries | 7,518 | 23,662 | 0 |
Net assets acquired, excluding cash | 57,524 | 102,933 | 12,225 |
Other Acquisitions [Member] | Customer Relationships [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | 11,620 | 29,500 | 2,800 |
Other Acquisitions [Member] | Trade Names [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | 760 | 16,750 | 300 |
Other Acquisitions [Member] | Intellectual Property [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | $ 6,970 | $ 1,950 | $ 2,000 |
ACQUISITIONS ACQUISITIONS (De_7
ACQUISITIONS ACQUISITIONS (Details 8) | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | 12 years | 11 years |
Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Intellectual Property [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | 13 years | 15 years |
ACQUISITIONS (Details Textuals)
ACQUISITIONS (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 476,884 | $ 465,825 | $ 430,602 | $ 404,410 | $ 421,224 | $ 391,500 | $ 368,657 | $ 343,432 | $ 1,777,721 | $ 1,524,813 | $ 1,376,258 |
Net income | 67,377 | $ 67,086 | $ 59,618 | $ 65,152 | 53,674 | $ 45,698 | $ 45,686 | $ 40,927 | 259,233 | 185,985 | 156,192 |
Acquisition Costs | 3,200 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 59,775 | 418,265 | $ 263,811 | ||||||||
Contingent consideration, liability | $ 20,875 | $ 27,573 | $ 20,875 | $ 27,573 | |||||||
Customer Relationships [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | 12 years | 11 years | ||||||||
Intellectual Property [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | 13 years | 15 years | ||||||||
FY 2017 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 49,000 | ||||||||||
Pro Forma Revenue | $ 1,464,500 | ||||||||||
CBD [Member] | Heico Flight Support Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Jun. 30, 2017 | ||||||||||
Name of Acquired Entity | Carbon by Design | ||||||||||
Description of Acquired Entity | CBD is a manufacturer of composite components for UAVs, rockets, spacecraft and other specialized applications. | ||||||||||
A2C [Member] | Heico Flight Support Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Apr. 30, 2017 | ||||||||||
Name of Acquired Entity | Air Cost Control | ||||||||||
Description of Acquired Entity | A2C is a leading aviation electrical interconnect product distributor of items such as connectors, wire, cable, protection and fastening systems, in addition to distributing a wide range of electromechanical parts. | ||||||||||
Percentage of interest acquired in the subsidiary | 80.10% | 80.10% | |||||||||
Electronic Technologies Group [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 701,827 | $ 574,261 | 511,272 | ||||||||
Electronic Technologies Group [Member] | FY 2017 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Amount of contingent purchase consideration, the company could be required to pay | $ 20,000 | 20,000 | |||||||||
Contingent consideration, liability | 13,900 | $ 13,900 | |||||||||
Electronic Technologies Group [Member] | AAT [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Sep. 15, 2017 | ||||||||||
Name of Acquired Entity | AeroAntenna Technology, Inc. | ||||||||||
Description of Acquired Entity | AAT designs and produces high performance active antenna systems for commercial aircraft, precision guided munitions, other defense applications and commercial uses. | ||||||||||
Amount of contingent purchase consideration, the company could be required to pay | $ 13,800 | $ 13,800 | |||||||||
Net sales | 10,200 | ||||||||||
Net income | 2,500 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 316,632 | ||||||||||
Cash Acquired from Acquisition | $ 868 | ||||||||||
Pro Forma Revenue | 1,582,653 | 1,428,336 | |||||||||
Electronic Technologies Group [Member] | AAT [Member] | Customer Relationships [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||
Electronic Technologies Group [Member] | AAT [Member] | Intellectual Property [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||
Electronic Technologies Group [Member] | Robertson [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Jan. 11, 2016 | ||||||||||
Name of Acquired Entity | Robertson Fuel Systems, LLC | ||||||||||
Description of Acquired Entity | Robertson designs and produces mission-extending, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft. | ||||||||||
Net sales | 84,100 | ||||||||||
Net income | 12,300 | ||||||||||
Acquisition Costs | 3,100 | ||||||||||
Cash Acquired from Acquisition | $ 3,271 | ||||||||||
Electronic Technologies Group [Member] | Robertson [Member] | Customer Relationships [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||
Electronic Technologies Group [Member] | Robertson [Member] | Intellectual Property [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 22 years | ||||||||||
Electronic Technologies Group [Member] | SST [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Sep. 30, 2018 | ||||||||||
Name of Acquired Entity | SST Components, Inc. (“SST”) | ||||||||||
Description of Acquired Entity | SST manufactures discrete semiconductor components, tests electronic components, and custom assembles a wide variety of prototype and off the shelf components into desired package styles for military, space and commercial uses. | ||||||||||
Percentage of interest acquired in the subsidiary | 53.10% | 53.10% | |||||||||
Electronic Technologies Group [Member] | ELT [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Apr. 30, 2018 | ||||||||||
Description of Acquired Entity | The ELT Product Line designs and manufactures Emergency Locator Transmitter Beacons for the commercial aviation and defense markets, that upon activation, transmit a distress signal to alert search and rescue operations of the aircraft's location. | ||||||||||
Electronic Technologies Group [Member] | STE [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Feb. 28, 2018 | ||||||||||
Name of Acquired Entity | Sensor Technology Engineering, Inc. ("Sensor Technology") | ||||||||||
Description of Acquired Entity | Sensor Technology designs and manufactures sophisticated nuclear radiation detectors for law enforcement, homeland security and military applications. | ||||||||||
Percentage of interest acquired in the subsidiary | 85.00% | 85.00% | |||||||||
Electronic Technologies Group [Member] | IDC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Nov. 30, 2017 | ||||||||||
Name of Acquired Entity | Interface Displays & Controls, Inc. ("IDC") | ||||||||||
Description of Acquired Entity | IDC designs and manufactures electronic products for aviation, marine, military fighting vehicles, and embedded computing markets. | ||||||||||
Electronic Technologies Group [Member] | Certain Assets [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Dec. 31, 2015 | ||||||||||
Description of Acquired Entity | 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 | ||||||||||
Flight Support Group [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 1,097,937 | $ 967,540 | $ 875,870 | ||||||||
Flight Support Group [Member] | ODE [Member] | Heico Flight Support Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective Date of Acquisition | Aug. 31, 2018 | ||||||||||
Name of Acquired Entity | Optical Display Engineering ("ODE") | ||||||||||
Description of Acquired Entity | ODE is a Federal Aviation Administration ("FAA")-authorized Part 145 Repair Station focusing on the repair of LCD screens and display modules for aviation displays used in civilian and military aircraft. ODE also holds FAA-Parts Manufacturer Approval authority to supply products that it repairs. | ||||||||||
A2C [Member] | A2C [Member] | Heico Flight Support Corp [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of interest owned by noncontrolling shareholders | 19.90% | 19.90% | |||||||||
STE [Member] | Electronic Technologies Group [Member] | STE [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of interest owned by noncontrolling shareholders | 15.00% | 15.00% |
SELECTED FINANCIAL STATEMENT _3
SELECTED FINANCIAL STATEMENT INFORMATION, Accounts Receivable (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Accounts receivable | $ 254,727 | $ 225,462 |
Less: Allowance for doubtful accounts | (3,258) | (3,006) |
Accounts receivable, net | $ 251,469 | $ 222,456 |
SELECTED FINANCIAL STATEMENT _4
SELECTED FINANCIAL STATEMENT INFORMATION, Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Costs incurred on uncompleted contracts | $ 39,350 | $ 29,491 |
Estimated earnings | 19,708 | 19,902 |
Total cost incurred and estimated earnings on uncompleted percentage-of completed contracts | 59,058 | 49,393 |
Less: Billings to date | (45,731) | (41,262) |
Unbilled Contracts Receivable | 13,327 | 8,131 |
Included in the accompanying Consolidated Balance Sheets under the following captions: | ||
Accounts receivable, net (costs and estimated earnings in excess of billings) | 14,183 | 9,377 |
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) | (856) | (1,246) |
Unbilled Contracts Receivable | $ 13,327 | $ 8,131 |
SELECTED FINANCIAL STATEMENT _5
SELECTED FINANCIAL STATEMENT INFORMATION, Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Finished products | $ 192,758 | $ 173,559 |
Work in process | 49,315 | 39,986 |
Materials, parts, assemblies and supplies | 158,039 | 128,031 |
Contracts-in-process | 1,649 | 2,415 |
Less: Billings to date | (208) | (363) |
Inventories, net of valuation reserves | $ 401,553 | $ 343,628 |
SELECTED FINANCIAL STATEMENT _6
SELECTED FINANCIAL STATEMENT INFORMATION, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||
Land | $ 5,864 | $ 5,435 | |
Buildings and improvements | 101,424 | 91,916 | |
Machinery, equipment and tooling | 230,108 | 191,298 | |
Construction in progress | 5,044 | 5,553 | |
Property, Plant and Equipment, Gross | 342,440 | 294,202 | |
Less: Accumulated depreciation and amortization | (187,701) | (164,319) | |
Property, plant and equipment, net | $ 154,739 | $ 129,883 | $ 121,611 |
SELECTED FINANCIAL STATEMENT _7
SELECTED FINANCIAL STATEMENT INFORMATION, Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Accrued employee compensation and related payroll taxes | $ 97,048 | $ 78,058 |
Deferred revenue | 28,262 | 29,247 |
Accrued customer rebates and credits | 16,861 | 12,866 |
Accrued additional purchase consideration | 6,138 | 7,588 |
Other Liabilities, Current | 23,205 | 19,853 |
Accrued expenses and other current liabilities | $ 171,514 | $ 147,612 |
SELECTED FINANCIAL STATEMENT _8
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION, Research and Development Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
R&D expenses | $ 57,450 | $ 46,473 | $ 44,726 |
SELECTED FINANCIAL STATEMENT _9
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION, Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | $ (10,556) | ||
Unrealized gain/(loss) | (5,327) | $ 15,696 | $ (308) |
Amortization of unrealized loss | (17) | (46) | 0 |
Accumulated Other Comprehensive Income (Loss), Balance End | (15,256) | (10,556) | |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | (9,533) | (23,953) | |
Unrealized gain/(loss) | (4,837) | 14,420 | |
Amortization of unrealized loss | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Balance End | (14,370) | (9,533) | (23,953) |
Pension Benefit Obligation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | (1,023) | (1,373) | |
Unrealized gain/(loss) | 124 | 321 | |
Amortization of unrealized loss | 13 | 29 | |
Accumulated Other Comprehensive Income (Loss), Balance End | (886) | (1,023) | (1,373) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | (10,556) | (25,326) | |
Unrealized gain/(loss) | (4,713) | 14,741 | |
Amortization of unrealized loss | 13 | 29 | |
Accumulated Other Comprehensive Income (Loss), Balance End | $ (15,256) | $ (10,556) | $ (25,326) |
SELECTED FINANCIAL STATEMENT_10
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, net | $ 154,739 | $ 129,883 | $ 121,611 |
Amortization | 53,952 | 42,945 | 39,916 |
Assets under capital lease | 11,900 | 4,800 | |
Assets under capital lease, accumulated depreciation | 1,500 | 1,000 | |
Depreciation and amortization | 77,191 | 64,823 | 60,277 |
Total customer rebates and credits deducted within net sales | $ 9,900 | 11,000 | 10,800 |
Other Assets and Liabilities, Noncurrent [Abstract] | |||
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 | $ 5,900 | 4,600 | 6,800 |
Deferred compensation plans | 132,737 | 122,874 | |
Other Deferred Compensation Plan [Member] | |||
Other Assets and Liabilities, Noncurrent [Abstract] | |||
Employee related deferred compensation plans, specified as other long-term liabilities | 5,900 | 5,700 | |
Leadership Compensation Plan [Member] | |||
Other Assets and Liabilities, Noncurrent [Abstract] | |||
Employee related deferred compensation plans, specified as other long-term liabilities | 125,800 | 116,000 | |
Tooling [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, net | 8,200 | 7,600 | |
Amortization | 2,800 | 2,700 | 2,900 |
Property, Plant and Equipment, Exclusive of Tooling [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | 23,200 | 21,900 | $ 20,400 |
Leadership Compensation Plan [Member] | |||
Other Assets and Liabilities, Noncurrent [Abstract] | |||
Deferred compensation plans | $ 126,800 | $ 117,200 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Goodwill [Roll Forward] | ||
Opening Balances | $ 1,081,306 | $ 865,717 |
Goodwill acquired | 38,320 | 209,863 |
Foreign currency translation adjustments | 2,763 | (5,726) |
Adjustments to goodwill | (2,031) | |
Ending Balances | 1,114,832 | 1,081,306 |
Flight Support Group [Member] | ||
Goodwill [Roll Forward] | ||
Opening Balances | 388,606 | 336,681 |
Goodwill acquired | 10,586 | 48,960 |
Foreign currency translation adjustments | 1,470 | (2,965) |
Adjustments to goodwill | 972 | |
Ending Balances | 398,694 | 388,606 |
Electronic Technologies Group [Member] | ||
Goodwill [Roll Forward] | ||
Opening Balances | 692,700 | 529,036 |
Goodwill acquired | 27,734 | 160,903 |
Foreign currency translation adjustments | 1,293 | (2,761) |
Adjustments to goodwill | (3,003) | |
Ending Balances | $ 716,138 | $ 692,700 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Amortizing Assets: | ||
Customer Relationships, Gross | $ 373,946 | $ 379,966 |
Intellectual Property, Gross | 185,983 | 181,811 |
License, Gross | 6,559 | 6,559 |
Patents, Gross | 927 | 870 |
Noncompete Agreements, Gross | 814 | 817 |
Trade Names, Gross | 466 | 466 |
Gross Carrying Amount | 568,695 | 570,489 |
Accumulated Amortization | (196,516) | (166,344) |
Amortizing Net Carrying Amount | 372,179 | 404,145 |
Non-Amortizing Assets: | ||
Indefinite-Lived Trade Names | 134,181 | 133,936 |
Total Gross Carrying Amount | 702,876 | 704,425 |
Total Net Carrying Amount | 506,360 | 538,081 |
Customer Relationships [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (135,359) | (117,069) |
Amortizing Net Carrying Amount | 238,587 | 262,897 |
Intellectual Property [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (56,055) | (44,861) |
Amortizing Net Carrying Amount | 129,928 | 136,950 |
Licensing Agreements [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (3,522) | (2,928) |
Amortizing Net Carrying Amount | 3,037 | 3,631 |
Patents [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (609) | (551) |
Amortizing Net Carrying Amount | 318 | 319 |
Noncompete Agreements [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (814) | (817) |
Amortizing Net Carrying Amount | 0 | 0 |
Trade Names [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (157) | (118) |
Amortizing Net Carrying Amount | $ 309 | $ 348 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 50.1 | $ 39.5 | $ 36.4 |
Estimated Amortization expense related to intangible assets, year one | 49 | ||
Estimated Amortization expense related to intangible assets, year two | 46.1 | ||
Estimated Amortization expense related to intangible assets, year three | 43.4 | ||
Estimated Amortization expense related to intangible assets, year four | 37 | ||
Estimated Amortization expense related to intangible assets, year five | 32 | ||
Estimated Amortization expense related to intangible assets, year, there after | $ 164.7 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Borrowings under revolving credit facility | $ 523,000 | $ 671,000 |
Capital leases and notes payable | 9,470 | 2,979 |
Total debt and capital leases | 532,470 | 673,979 |
Less: Current maturities of long-term debt | (859) | (451) |
Long-term debt, net of current maturities | $ 531,611 | $ 673,528 |
LONG-TERM DEBT, Future Lease Pa
LONG-TERM DEBT, Future Lease Payments (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Lease payments in year one | $ 1,240 |
Lease payments in year two | 1,191 |
Lease payments in year three | 1,184 |
Lease payments in year four | 1,175 |
Lease payments in year five | 873 |
Thereafter | 6,412 |
Total minimum lease payments | 12,075 |
Less: amount representing interest | (2,718) |
Present value of minimum lease payments | $ 9,357 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Interest Rate | 3.40% | 2.40% |
Credit Facility [Abstract] | ||
Credit Facility, Current Borrowing Capacity | $ 1,300 | |
Credit Facility, Expiration Date | Nov. 30, 2022 | |
Line of Credit Facility Change in Borrowing Capacity | $ 350 | |
Credit Facility, Maximum Borrowing Capacity | $ 1,650 | |
Credit facility, interest rate description | Borrowings under the New Credit Facility accrue interest at the Company’s election of the Base Rate or the Eurocurrency Rate, plus in each case, the Applicable Rate (based on the Company’s Total Leverage Ratio). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) the Eurocurrency Rate for an Interest Period of one month plus 100 basis points. The Eurocurrency Rate is the rate per annum obtained by dividing LIBOR for the applicable Interest Period by a percentage equal to 1.00 minus the daily average Eurocurrency Reserve Rate for such Interest Period, as such capitalized terms are defined in the New 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 | 0.30% | |
Eurodollar [Member] | Minimum [Member] | ||
Credit Facility [Abstract] | ||
Credit Facility, Interest Rate, Increase (Decrease) | 1.00% | |
Eurodollar [Member] | Maximum [Member] | ||
Credit Facility [Abstract] | ||
Credit Facility, Interest Rate, Increase (Decrease) | 2.00% | |
Base Rate [Member] | Minimum [Member] | ||
Credit Facility [Abstract] | ||
Credit Facility, Interest Rate, Increase (Decrease) | 0.00% | |
Base Rate [Member] | Maximum [Member] | ||
Credit Facility [Abstract] | ||
Credit Facility, Interest Rate, Increase (Decrease) | 1.00% | |
Prior Credit Facility [Member] | ||
Credit Facility [Abstract] | ||
Credit Facility, Current Borrowing Capacity | $ 1,000 | |
Foreign Line of Credit [Member] | ||
Credit Facility [Abstract] | ||
Credit Facility, Current Borrowing Capacity | 100 | |
Letter of Credit [Member] | ||
Credit Facility [Abstract] | ||
Credit Facility, Current Borrowing Capacity | $ 50 |
INCOME TAXES INCOME TAXES, Dome
INCOME TAXES INCOME TAXES, Domestic and Foreign Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 309,123 | $ 264,420 | $ 227,927 |
Foreign | 47,163 | 33,540 | 29,123 |
Income before taxes and noncontrolling interests | $ 356,286 | $ 297,960 | $ 257,050 |
INCOME TAXES, Current and Defer
INCOME TAXES, Current and Deferred Expense Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Current: | |||
Federal | $ 61,548 | $ 85,047 | $ 75,261 |
State | 9,420 | 6,820 | 7,463 |
Foreign | 12,608 | 9,529 | 7,370 |
Current income tax expense | 83,576 | 101,396 | 90,094 |
Deferred: | |||
Federal | (13,115) | (9,661) | (5,979) |
State | 1,578 | (499) | (2,587) |
Foreign | (1,439) | (936) | (628) |
Deferred Income Tax Expense (Benefit) | (12,976) | (11,096) | (9,194) |
Income tax expense | $ 70,600 | $ 90,300 | $ 80,900 |
INCOME TAXES, Rate Reconciliati
INCOME TAXES, Rate Reconciliation (Details) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Jan. 31, 2018 | Dec. 21, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Federal statutory income tax rate | 21.00% | 35.00% | 23.30% | 35.00% | 35.00% |
State taxes, less applicable federal income tax reduction | 2.90% | 1.90% | 1.70% | ||
Discrete net tax benefit related to Tax Act | (3.40%) | 0.00% | 0.00% | ||
Research and development tax credits | (2.00%) | (1.80%) | (2.70%) | ||
Domestic production activities tax deduction | (0.80%) | (1.10%) | (1.30%) | ||
Tax benefit related to stock option exercises (ASU 2016-09 adoption) | (0.50%) | (1.00%) | 0.00% | ||
Noncontrolling interests' share of income | 0.30% | 0.70% | 0.70% | ||
Tax-exempt (gains) losses on corporate-owned life insurance policies | (0.10%) | 1.80% | 0.10% | ||
Other, net | 0.50% | (0.20%) | (0.40%) | ||
Effective tax rate | 19.80% | 30.30% | 31.50% |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Deferred tax assets: | ||
Deferred compensation liability | $ 31,152 | $ 47,093 |
Inventories | 22,204 | 31,797 |
Share-based compensation | 9,811 | 12,984 |
Bonus accrual | 4,474 | 4,956 |
Customer rebates accrual | 1,526 | 1,864 |
Vacation accrual | 1,456 | 2,112 |
Deferred revenue | 68 | 730 |
Other | 7,084 | 9,230 |
Deferred Tax Assets, Gross | 77,775 | 110,766 |
Deferred tax liabilities: | ||
Goodwill and other intangible assets | (112,533) | (160,158) |
Property, plant and equipment | (11,615) | (7,887) |
Other | (271) | (1,747) |
Total deferred tax liabilities | (124,419) | (169,792) |
Net deferred tax liabilities | $ (46,644) | $ (59,026) |
INCOME TAXES, Unrecognized Tax
INCOME TAXES, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balances as of beginning of year | $ 2,040 | $ 1,602 |
Increases related to current year tax positions | 591 | 596 |
Increases related to prior year tax positions | 20 | 0 |
Decreases related to prior year tax positions | 0 | (24) |
Settlements | (394) | 0 |
Lapse of statutes of limitations | (157) | (134) |
Balances as of end of year | $ 2,100 | $ 2,040 |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2018 | Dec. 21, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||
Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 23.30% | 35.00% | 35.00% | |
Remeasurement of Deferred Tax Liabilities for Change in Tax Rate | $ 16,500 | |||||
Transition Tax Expense from Unremitted Earnings from Foreign Subsidiaries | $ 4,400 | |||||
Effective Income Tax Rate, Continuing Operations | 19.80% | 30.30% | 31.50% | |||
Gross unrecognized tax benefits related to uncertain tax positions | $ 2,100 | $ 2,040 | $ 1,602 | |||
Unrecognized tax benefits that would impact effective tax rate | $ 1,700 | $ 1,300 | ||||
Accounting Standards Update 2016-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3,100 |
FAIR VALUE MEASUREMENTS, Assets
FAIR VALUE MEASUREMENTS, Assets and Liabilities, Measured on Recurring Basis (Details) - USD ($) | Oct. 31, 2018 | Oct. 31, 2017 |
Assets [Abstract] | ||
Deferred Compensation Plan Assets | $ 132,737,000 | $ 122,874,000 |
Liabilities [Abstract] | ||
Contingent consideration, liability | 20,875,000 | 27,573,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 9,482,000 | 9,654,000 |
Liabilities [Abstract] | ||
Contingent consideration, liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 123,255,000 | 113,220,000 |
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 | 20,875,000 | 27,573,000 |
Corporate Owned Life Insurance [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 123,255,000 | 113,220,000 |
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 | 123,255,000 | 113,220,000 |
Corporate Owned Life Insurance [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 | 3,560,000 | 3,972,000 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 3,560,000 | 3,972,000 |
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 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 3,179,000 | 2,895,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 3,179,000 | 2,895,000 |
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 |
Equity Funds [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,437,000 | 1,541,000 |
Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,437,000 | 1,541,000 |
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 |
Other Defined Deferred Compensation Plan [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,306,000 | 1,246,000 |
Other Defined Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 1,306,000 | 1,246,000 |
Other Defined Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Other Defined Deferred Compensation Plan [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, Contingent Consideration Level 3 Valuation Inputs (Details) - Fair Value, Inputs, Level 3 [Member] | Oct. 31, 2018 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | (0.04) |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.07 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2016 Acquisition [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.04 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2016 Acquisition [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.13 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2015 Acquisition [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.10 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2015 Acquisition [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.13 |
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.063 |
Measurement Input, Discount Rate [Member] | FY 2016 Acquisition [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.048 |
Measurement Input, Discount Rate [Member] | FY 2015 Acquisition [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.008 |
FAIR VALUE MEASUREMENTS, Asse_2
FAIR VALUE MEASUREMENTS, Assets and Liabilities, Measured at Fair Value Using Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Change in value of contingent consideration | $ 1,100 | $ 3,063 | |
Liabilities, Ending Balance | $ 20,875 | ||
Liabilities [Abstract] | |||
Total liabilities | 1,018,342 | 1,133,016 | |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Liabilities, Opening Balance | 27,573 | 18,881 | |
Contingent consideration related to acquisition | (1,365) | 13,797 | |
Increase in accrued contingent consideration | 1,100 | ||
Change in value of contingent consideration | (5,425) | (7,039) | |
Liabilities, Ending Balance | 27,573 | $ 18,881 | |
Liabilities [Abstract] | |||
Accrued Liabilities, Current | 6,107 | ||
Other Liabilities, Noncurrent | 14,768 | ||
Total liabilities | 20,875 | ||
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Gain (Loss) [Member] | |||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Change in Unrealized Gain (Loss) | $ 92 | $ 834 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, € in Millions | 12 Months Ended | |||||
Oct. 31, 2018USD ($) | Oct. 31, 2018EUR (€) | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2018EUR (€) | Oct. 31, 2017EUR (€) | |
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Change in value of contingent consideration | $ 1,100 | $ 3,063 | ||||
Contingent consideration, liability | $ 20,875 | 27,573 | ||||
Flight Support Group [Member] | FY 2015 Acquisition [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Change in value of contingent consideration | 5,100 | |||||
Contingent consideration related to acquisition | 1,800 | |||||
Contingent consideration, liability | 5,800 | $ 12,600 | ||||
Electronic Technologies Group [Member] | FY 2017 Acquisition [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Amount of contingent purchase consideration, the company could be required to pay | 20,000 | |||||
Contingent consideration, liability | 13,900 | |||||
Electronic Technologies Group [Member] | FY 2016 Acquisition [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Amount of contingent purchase consideration, the company could be required to pay | 1,700 | |||||
Change in value of contingent consideration | 300 | |||||
Contingent consideration, liability | 1,200 | |||||
Euro Member Countries, Euro | Flight Support Group [Member] | FY 2015 Acquisition [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Contingent Consideration Arrangements, Per Year Amount | € | € 6.1 | |||||
Change in value of contingent consideration | € | € 4.4 | |||||
Contingent consideration related to acquisition | $ 1,300 | |||||
Contingent consideration, liability | € | € 5.1 | € 10.8 |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2018 | Jul. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 4,886,353 | |||
Common Stock Dividend Percentage Rate | 25.00% | 25.00% | 25.00% | |
Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 332,140 | |||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 23.9 | |||
Common Class A [Member] | Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 18,145 | |||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 1.1 |
SHARE-BASED COMPENSATION, Share
SHARE-BASED COMPENSATION, Share-based Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Shares Available for Grant [Roll Forward] | |||
Opening Balance Outstanding Shares (Shares Available For Grant) | 830 | 2,016 | 2,590 |
Shares approved by Shareholders (Shares Available for Grant) | 5,000 | ||
Granted (Available for Grant) | (412) | (1,186) | (586) |
Cancelled (Available for Grant) | 24 | 12 | |
Ending Balance Outstanding Shares (Shares Available For Grant) | 4,612 | 830 | 2,016 |
Shares Outstanding [Roll Forward] | |||
Outstanding (Shares Under Option) | 7,297 | 6,520 | 6,514 |
Granted (Shares Under Option) | 412 | 1,186 | 586 |
Exercised (Shares Under Option) | (1,285) | (409) | (568) |
Cancelled (Shares Under Option) | (24) | (12) | |
Outstanding (Shares Under Option) | 6,400 | 7,297 | 6,520 |
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding (in dollars per share) | $ 18.58 | $ 14.23 | $ 13.07 |
Granted (in dollars per share) | 65.64 | 41.37 | 23.58 |
Exercised (in dollars per share) | 10.54 | 15.27 | 10.45 |
Cancelled (in dollars per share) | 28.85 | 18.62 | |
Outstanding (in dollars per share) | $ 23.19 | $ 18.58 | $ 14.23 |
2012 Incentive Compensation Plan [Member] | |||
Shares Available for Grant [Roll Forward] | |||
Cancelled (Available for Grant) | (830) |
SHARE-BASED COMPENSATION, Optio
SHARE-BASED COMPENSATION, Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Number Outstanding (in shares) | 6,400 | 7,297 | 6,520 | 6,514 |
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 23.19 | $ 18.58 | $ 14.23 | $ 13.07 |
Outstanding Weighted Average Contractual Life (in years) | 5 years | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 328,976 | |||
Number Exercisable (in shares) | 4,357 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 15.17 | |||
Exercisable Weighted Average Contractual Life (in years) | 3 years 6 months | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 262,053 | |||
Heico Common Stock [Member] | ||||
Number Outstanding (in shares) | 2,955 | |||
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 23.48 | |||
Outstanding Weighted Average Contractual Life (in years) | 4 years 4 months 24 days | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 178,327 | |||
Number Exercisable (in shares) | 2,197 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 14.75 | |||
Exercisable Weighted Average Contractual Life (in years) | 3 years | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 151,756 | |||
Common Class A [Member] | ||||
Number Outstanding (in shares) | 3,445 | |||
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 22.94 | |||
Outstanding Weighted Average Contractual Life (in years) | 5 years 6 months | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 150,649 | |||
Number Exercisable (in shares) | 2,160 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 15.59 | |||
Exercisable Weighted Average Contractual Life (in years) | 4 years 1 month 6 days | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 110,297 |
SHARE-BASED COMPENSATION, Infor
SHARE-BASED COMPENSATION, Information on Options Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Proceeds from stock option exercises | $ 4,031 | $ 5,659 | $ 5,924 |
Tax benefit from stock option exercises | 2,162 | 3,087 | 868 |
Intrinsic value of stock option exercises | $ 75,152 | $ 10,376 | $ 9,751 |
SHARE-BASED COMPENSATION, Assum
SHARE-BASED COMPENSATION, Assumptions for Option Grants Fair Value Calculation (Details) - $ / shares | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Common Class A [Member] | |||
Expected stock price volatility | 27.69% | 28.18% | 32.52% |
Risk-free interest rate | 2.81% | 2.06% | 1.82% |
Dividend yield | 0.29% | 0.31% | 0.32% |
Forfeiture rate | 0.00% | 0.00% | 0.00% |
Expected option life (years) | 8 years | 7 years | 6 years |
Weighted average fair value | $ 20.93 | $ 12.47 | $ 7.92 |
Heico Common Stock [Member] | |||
Expected stock price volatility | 31.00% | 37.89% | 39.63% |
Risk-free interest rate | 2.83% | 2.44% | 2.16% |
Dividend yield | 0.24% | 0.26% | 0.24% |
Forfeiture rate | 0.00% | 0.00% | 0.00% |
Expected option life (years) | 9 years | 9 years | 9 years |
Weighted average fair value | $ 30 | $ 21.36 | $ 12.10 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Textuals) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Shares approved by Shareholders (Shares Available for Grant) | 5,000 | ||||
Number Outstanding (in shares) | 6,400 | 7,297 | 6,520 | 6,514 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 4,612 | 830 | 2,016 | 2,590 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Pre-tax unrecognized compensation expense related to nonvested stock options | $ 26.9 | ||||
Pre-tax unrecognized compensation expense related to nonvested stock options, expected to be recognized over a weighted average period (in years) | 3 years 6 months | ||||
Fair value of stock options, Vested | $ 8.5 | $ 5.3 | $ 5.8 | ||
Common Class A [Member] | |||||
Number Outstanding (in shares) | 3,445 | ||||
Stock Option and Future Grants [Member] | |||||
Shares approved by Shareholders (Shares Available for Grant) | 11,000 | ||||
Number Outstanding (in shares) | 6,400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 4,600 | ||||
Employee Stock Option [Member] | |||||
Allocated Share-based Compensation Expense | $ 9.3 | 7.4 | 6.4 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 2.2 | $ 2.8 | $ 2.4 | ||
Accounting Standards Update 2016-09 [Member] | |||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3.1 |
EMPLOYEE RETIREMENT PLANS EMP_2
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS, Defined Contribution Plan Share-based Activity (Details) - shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Shares available for issuance, Opening Balance | 398 | 491 | 28 |
Shares registered for issuance to the 401(k) Plan | 586 | ||
Issuance of common stock to 401(k) Plan | (65) | (93) | (123) |
Shares available for issuance, Ending Balance | 333 | 398 | 491 |
Common Class A [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares available for issuance, Opening Balance | 398 | 491 | 28 |
Shares registered for issuance to the 401(k) Plan | 586 | ||
Issuance of common stock to 401(k) Plan | (65) | (93) | (123) |
Shares available for issuance, Ending Balance | 333 | 398 | 491 |
EMPLOYEE RETIREMENT PLANS EMP_3
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS, Projected Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, Opening balance | $ 14,000 | $ 14,511 | |
Actuarial gain | (749) | (156) | |
Interest cost | 539 | 561 | $ 613 |
Benefits paid | 900 | 916 | |
Projected benefit obligation, Ending balance | 12,890 | 14,000 | 14,511 |
Change in plan assets: | |||
Fair value of plan assets, Opening balance | 11,070 | 10,510 | |
Actual return on plan assets | (151) | 1,048 | |
Employer contributions | 360 | 428 | |
Benefits paid | (900) | (916) | |
Fair value of plan assets, Ending balance | 10,379 | 11,070 | $ 10,510 |
Funded status | $ 2,511 | $ 2,930 |
EMPLOYEE RETIREMENT PLANS EMP_4
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS, Weighted Average Assumptions (Details) | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Weighted Average Discount Rate [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.49% | 3.98% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.98% | 3.99% | 4.47% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.75% | 6.75% | 6.75% |
EMPLOYEE RETIREMENT PLANS EMP_5
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS, Net Pension Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | $ 728 | $ 688 | $ 702 |
Interest cost | (539) | (561) | (613) |
Amortization of unrealized loss | (17) | (46) | 0 |
Net pension income | $ 172 | $ 81 | $ 89 |
EMPLOYEE RETIREMENT PLANS EMP_6
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS, Estimated Future Benefit Payments (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Year ending October 31, | |
Next Twelve Months | $ 930 |
Year Two | 929 |
Year Three | 897 |
Year Four | 877 |
Year Five | 869 |
Five Fiscal Years Thereafter | $ 4,329 |
EMPLOYEE RETIREMENT PLANS EMP_7
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS, Plan Assets Fair Value (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 10,379 | $ 11,070 | $ 10,510 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 10,379 | 11,070 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 5,276 | 5,382 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 5,276 | 5,382 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 5,006 | 5,593 | |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 5,006 | 5,593 | |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Money Market Funds and Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 97 | 95 | |
Money Market Funds and Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 97 | 95 | |
Money Market Funds and Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Money Market Funds and Cash [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 |
EMPLOYEE RETIREMENT PLANS EMP_8
EMPLOYEE RETIREMENT PLANS EMPLOYEE RETIREMENT PLANS, Actual and Targeted Asset Allocations (Details) | Oct. 31, 2018 | Oct. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | 100.00% |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 51.00% | 49.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | 50.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 48.00% | 50.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | 50.00% |
Money Market Funds and Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 1.00% | 1.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | 0.00% |
EMPLOYEE RETIREMENT PLANS (Deta
EMPLOYEE RETIREMENT PLANS (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 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 | $ 8,000 | $ 7,800 | $ 7,000 |
Liability, Defined Benefit Plan, Noncurrent | (2,500) | (2,900) | |
Defined Benefit Plan, Actuarial Gain (Loss) before Tax | (100) | 500 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, Tax | 100 | $ 200 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 1,800 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 1,000 | ||
Maximum [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS REDEEMABLE NONCONTROLLING INTERESTS (Details) | 12 Months Ended | |
Oct. 31, 2018 | ||
Electronic Technologies Group [Member] | Subsidiary One [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2005 | |
Percentage of interest acquired in the subsidiary | 95.90% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2019 | [1] |
Put Rights Purchase Period | 4 years | [2] |
Electronic Technologies Group [Member] | Subsidiary Four [Member] | ||
Business Acquisition [Line Items] | ||
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, 2019 | [1] |
Put Rights Purchase Period | 1 year | |
Electronic Technologies Group [Member] | Subsidiary Five [Member] | ||
Business Acquisition [Line Items] | ||
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, 2019 | [1] |
Put Rights Purchase Period | 2 years | |
Electronic Technologies Group [Member] | Subsidiary Ten [Member] | ||
Business Acquisition [Line Items] | ||
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 | |
Electronic Technologies Group [Member] | Subsidiary Thirteen [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2018 | |
Percentage of interest acquired in the subsidiary | 85.00% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2021 | |
Put Rights Purchase Period | 1 year | |
Flight Support Group [Member] | Subsidiary Two [Member] | ||
Business Acquisition [Line Items] | ||
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, 2019 | [1] |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Three [Member] | ||
Business Acquisition [Line Items] | ||
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, 2019 | [1] |
Put Rights Purchase Period | 5 years | |
Flight Support Group [Member] | Subsidiary Six [Member] | ||
Business Acquisition [Line Items] | ||
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, 2019 | [1] |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Seven [Member] | ||
Business Acquisition [Line Items] | ||
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 | [1] |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Eight [Member] | ||
Business Acquisition [Line Items] | ||
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 Nine [Member] | ||
Business Acquisition [Line Items] | ||
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] | ||
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 | |
Flight Support Group [Member] | Subsidiary Twelve [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2017 | |
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 | 2 years | [3] |
[1] | (1) Currently puttable | |
[2] | (2) A portion is to be purchased in a lump sum | |
[3] | (3) |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Redeemable Noncontrolling Interests (Textuals) [Abstract] | |||
Management's estimate of the aggregate redemption amount of all put rights | $ 132,046 | $ 131,123 | |
Estimated Redemption Amount of equity interest redeemable at fair value | 83,500 | ||
Estimated Redemption Amount of equity interest redeemable based on a multiple of future earnings | 48,500 | ||
Business Acquisition [Line Items] | |||
Payments For Repurchase Of Redeemable Noncontrolling Interest | 0 | (3,848) | $ (3,599) |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Aggregate Redemption Amount Puttable | 61,300 | ||
Potential Redemption Amount Payable | $ 27,700 | ||
FY 2011 Acquisition [Member] | Flight Support Group [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of interest acquired in the subsidiary | 19.90% | ||
Payments For Repurchase Of Redeemable Noncontrolling Interest | $ (3,800) | $ (3,600) | |
Subsidiary One [Member] | Electronic Technologies Group [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of interest acquired in the subsidiary | 95.90% | ||
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 Five [Member] | Electronic Technologies Group [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of interest acquired in the subsidiary | 78.00% | ||
Subsidiary Six [Member] | Flight Support Group [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of interest acquired in the subsidiary | 84.00% | ||
FY 2011 Acquisition [Member] | FY 2011 Acquisition [Member] | Flight Support Group [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of company total ownership interest | 100.00% |
NET INCOME PER SHARE ATTRIBUT_3
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, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Numerator: | |||||||||||
Net income attributable to HEICO | $ 67,377 | $ 67,086 | $ 59,618 | $ 65,152 | $ 53,674 | $ 45,698 | $ 45,686 | $ 40,927 | $ 259,233 | $ 185,985 | $ 156,192 |
Denominator: | |||||||||||
Weighted average common shares outstanding - basic | 132,543 | 131,703 | 130,948 | ||||||||
Effect of dilutive stock options | 4,153 | 3,885 | 2,197 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 136,696 | 135,588 | 133,145 | ||||||||
Earnings Per Share, Basic | $ 0.51 | $ 0.51 | $ 0.45 | $ 0.49 | $ 0.41 | $ 0.35 | $ 0.35 | $ 0.31 | $ 1.96 | $ 1.41 | $ 1.19 |
Earnings Per Share, Diluted | $ 0.49 | $ 0.49 | $ 0.44 | $ 0.48 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.30 | $ 1.90 | $ 1.37 | $ 1.17 |
Anti-dilutive stock options excluded | 512 | 799 | 1,133 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Net sales: | |||||||||||
Net sales | $ 476,884 | $ 465,825 | $ 430,602 | $ 404,410 | $ 421,224 | $ 391,500 | $ 368,657 | $ 343,432 | $ 1,777,721 | $ 1,524,813 | $ 1,376,258 |
Gross profit: | |||||||||||
Gross profit | 186,458 | 181,609 | 167,857 | 154,791 | 160,029 | 148,897 | 140,382 | 125,417 | |||
Net income from consolidated operations: | |||||||||||
Net income from consolidated operations | 74,081 | 73,899 | 66,011 | 71,695 | 59,087 | 51,475 | 50,833 | 46,265 | 285,686 | 207,660 | 176,150 |
Net income attributable to HEICO: | |||||||||||
Net income attributable to HEICO | $ 67,377 | $ 67,086 | $ 59,618 | $ 65,152 | $ 53,674 | $ 45,698 | $ 45,686 | $ 40,927 | $ 259,233 | $ 185,985 | $ 156,192 |
Basic: | |||||||||||
Basic (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.45 | $ 0.49 | $ 0.41 | $ 0.35 | $ 0.35 | $ 0.31 | $ 1.96 | $ 1.41 | $ 1.19 |
Diluted: | |||||||||||
Diluted (in dollars per share) | $ 0.49 | $ 0.49 | $ 0.44 | $ 0.48 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.30 | $ 1.90 | $ 1.37 | $ 1.17 |
QUARTERLY FINANCIAL INFORMATI_4
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details Textuals) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Remeasurement of Deferred Tax Liabilities for Change in Tax Rate, Net | $ 11,900 | $ 11,900 | |||||||||
Remeasurement of Deferred Tax Liabilities for Change in Tax Rate, Net, Per Share | $ 0.09 | $ 0.09 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted | 136,696,000 | 135,588,000 | 133,145,000 | ||||||||
Net income attributable to HEICO | $ 67,377 | $ 67,086 | $ 59,618 | $ 65,152 | $ 53,674 | $ 45,698 | $ 45,686 | $ 40,927 | $ 259,233 | $ 185,985 | $ 156,192 |
Earnings Per Share, Basic | $ 0.51 | $ 0.51 | $ 0.45 | $ 0.49 | $ 0.41 | $ 0.35 | $ 0.35 | $ 0.31 | $ 1.96 | $ 1.41 | $ 1.19 |
Earnings Per Share, Diluted | $ 0.49 | $ 0.49 | $ 0.44 | $ 0.48 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.30 | $ 1.90 | $ 1.37 | $ 1.17 |
Accounting Standards Update 2016-09 [Member] | |||||||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 3,100 | ||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 1,220,000 | ||||||||||
Net income attributable to HEICO | $ 2,600 | ||||||||||
Earnings Per Share, Basic | $ 0.02 | ||||||||||
Earnings Per Share, Diluted | $ 0.01 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Net sales | $ 476,884 | $ 465,825 | $ 430,602 | $ 404,410 | $ 421,224 | $ 391,500 | $ 368,657 | $ 343,432 | $ 1,777,721 | $ 1,524,813 | $ 1,376,258 |
Depreciation | 23,239 | 21,878 | 20,361 | ||||||||
Amortization | 53,952 | 42,945 | 39,916 | ||||||||
Operating income | 376,245 | 306,658 | 265,345 | ||||||||
Capital expenditures | 41,871 | 25,998 | 30,863 | ||||||||
Total assets | 2,653,396 | 2,512,431 | 2,653,396 | 2,512,431 | 1,998,412 | ||||||
Flight Support Group [Member] | |||||||||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Net sales | 1,097,937 | 967,540 | 875,870 | ||||||||
Depreciation | 13,322 | 13,042 | 12,113 | ||||||||
Amortization | 19,530 | 18,026 | 16,590 | ||||||||
Operating income | 206,623 | 179,278 | 163,427 | ||||||||
Capital expenditures | 13,074 | 15,665 | 18,434 | ||||||||
Total assets | 1,093,858 | 1,042,925 | 1,093,858 | 1,042,925 | 877,672 | ||||||
Electronic Technologies Group [Member] | |||||||||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Net sales | 701,827 | 574,261 | 511,272 | ||||||||
Depreciation | 9,225 | 8,609 | 8,030 | ||||||||
Amortization | 33,339 | 24,167 | 22,664 | ||||||||
Operating income | 204,508 | 157,451 | 126,031 | ||||||||
Capital expenditures | 9,531 | 10,100 | 11,962 | ||||||||
Total assets | 1,391,997 | 1,339,363 | 1,391,997 | 1,339,363 | 1,015,696 | ||||||
Other Primarily Corporate and Inter Segment [Member] | |||||||||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | |||||||||||
Depreciation | 692 | 227 | 218 | ||||||||
Amortization | 1,083 | 752 | 662 | ||||||||
Operating income | (34,886) | (30,071) | (24,113) | ||||||||
Capital expenditures | 19,266 | 233 | 467 | ||||||||
Total assets | $ 167,541 | $ 130,143 | 167,541 | 130,143 | 105,044 | ||||||
Consolidation, Eliminations [Member] | 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 | $ (22,043) | $ (16,988) | $ (10,884) |
OPERATING SEGMENTS OPERATING SE
OPERATING SEGMENTS OPERATING SEGMENTS, Information by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | ||
Product Information [Line Items] | ||||||||||||
Net sales | $ 476,884 | $ 465,825 | $ 430,602 | $ 404,410 | $ 421,224 | $ 391,500 | $ 368,657 | $ 343,432 | $ 1,777,721 | $ 1,524,813 | $ 1,376,258 | |
Flight Support Group [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | 1,097,937 | 967,540 | 875,870 | |||||||||
Flight Support Group [Member] | Aftermarket Replacement Parts [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | [1] | 582,562 | 489,644 | 405,108 | ||||||||
Flight Support Group [Member] | Repair and Overhaul Parts and Services [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | [2] | 286,454 | 270,482 | 251,357 | ||||||||
Flight Support Group [Member] | Specialty Products [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | [3] | 228,921 | 207,414 | 219,405 | ||||||||
Electronic Technologies Group [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | 701,827 | 574,261 | 511,272 | |||||||||
Electronic Technologies Group [Member] | Electronic Components for Defense, Space and Aerospace [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | [4] | 547,088 | 420,991 | 371,297 | ||||||||
Electronic Technologies Group [Member] | Other Electronic Components [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | [5] | 154,739 | 153,270 | 139,975 | ||||||||
Consolidation, Eliminations [Member] | Other Primarily Corporate and Inter Segment [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Net sales | $ (22,043) | $ (16,988) | $ (10,884) | |||||||||
[1] | (1) Includes various jet engine and aircraft component replacement parts. | |||||||||||
[2] | (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. | |||||||||||
[3] | (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh. | |||||||||||
[4] | (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners and high performance active antenna systems. | |||||||||||
[5] | (5) Includes various component parts such as electromagnetic and radio interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products and custom molded cable assemblies. |
OPERATING SEGMENTS (Details 2)
OPERATING SEGMENTS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 476,884 | $ 465,825 | $ 430,602 | $ 404,410 | $ 421,224 | $ 391,500 | $ 368,657 | $ 343,432 | $ 1,777,721 | $ 1,524,813 | $ 1,376,258 |
Property, Plant and Equipment, Net | 154,739 | 129,883 | 154,739 | 129,883 | 121,611 | ||||||
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,127,998 | 1,007,491 | 904,670 | ||||||||
Property, Plant and Equipment, Net | 124,225 | 97,367 | 124,225 | 97,367 | 94,889 | ||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 649,723 | 517,322 | 471,588 | ||||||||
Property, Plant and Equipment, Net | $ 30,514 | $ 32,516 | $ 30,514 | $ 32,516 | $ 26,722 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Year One | $ 14,961 |
Year Two | 14,991 |
Year Three | 14,147 |
Year Four | 12,546 |
Year Five | 7,334 |
Thereafter | 18,007 |
Total minimum lease commitments | $ 81,986 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balances as of beginning of year | $ 2,921 | $ 3,351 |
Accruals for warranties | 2,720 | 2,254 |
Acquired warranty liabilities | 320 | 0 |
Warranty claims settled | (2,655) | (2,684) |
Balances as of end of year | $ 3,306 | $ 2,921 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rent expense charged to operations for operating leases | $ 17.5 | $ 15.6 | $ 14.7 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 4.3 |
SUPPLEMENTAL DISCLOSURES OF C_3
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Cash paid for income taxes | $ 90,488 | $ 95,851 | $ 87,486 |
Cash received from income tax refunds | (1,510) | (2,953) | (1,906) |
Cash paid for interest | 19,233 | 9,631 | 8,288 |
Additional purchase consideration | 220 | ||
Additional purchase consideration | (407) | 0 | |
Property, plant and equipment acquired through capital lease obligations | 7,166 | 37 | 1,111 |
Other Acquisitions [Member] | |||
Contingent purchase consideration | $ 0 | $ (13,797) | $ (1,225) |
SUBSEQUENT EVENT SUBSEQUENT E_2
SUBSEQUENT EVENT SUBSEQUENT EVENT (Details Textual) - Subsequent Event [Member] - Electronic Technologies Group [Member] | 1 Months Ended |
Nov. 30, 2018 | |
SSP [Member] | |
Subsequent Event [Line Items] | |
Subsequent Event, Description | In November 2018, the Company, through HEICO Electronic, acquired all of the stock of Specialty Silicone Products, Inc. ("SSP"). SSP designs and manufactures silicone material for a variety of demanding applications, used in aerospace, defense, research, oil and gas, testing, pharmaceuticals and other markets. The purchase price of this acquisition was paid in cash principally using proceeds from the Company's revolving credit facility and the total consideration for the acquisition is not material or significant to the Company’s consolidated financial statements. |
APEX [Member] | |
Subsequent Event [Line Items] | |
Subsequent Event, Description | In November 2018, the Company, through HEICO Electronic, acquired 93% of the stock of Apex Micotechnology, Inc. ("Apex"). Apex designs and manufactures precision power analog monolithic, hybrid and open frame components for a certain wide range of aerospace, defense, industrial, measurement, medical and test applications. The purchase price of this acquisition was paid in cash using proceeds from the Company's revolving credit facility and the total consideration for the acquisition is not material or significant to the Company’s consolidated financial statements. |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Opening Balance | $ 3,006 | $ 3,159 | $ 2,038 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 492 | 7 | 390 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Addition, Recovery | [1] | (13) | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [1] | 298 | 973 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [2] | (227) | (458) | (242) |
Valuation Allowances and Reserves, Ending Balance | 3,258 | 3,006 | 3,159 | |
SEC Schedule, 12-09, Reserve, Inventory [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Opening Balance | 92,148 | 81,449 | 69,654 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 9,227 | 6,284 | 10,270 | |
Valuation Allowances and Reserves, Charged to Other Accounts | [3] | 1,270 | 6,264 | 6,268 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [4] | (7,254) | (1,849) | (4,743) |
Valuation Allowances and Reserves, Ending Balance | $ 95,391 | $ 92,148 | $ 81,449 | |
[1] | (a)Principally additions from acquisitions and foreign currency translation adjustments. | |||
[2] | (b)Principally write-offs of uncollectible accounts receivable, net of recoveries. | |||
[3] | (a)Principally additions from acquisitions and foreign currency translation adjustments | |||
[4] | (b)Principally write-offs of slow-moving, obsolete or damaged inventory |