DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - $ / shares | 3 Months Ended | |
Jan. 31, 2021 | Feb. 24, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false | |
Local Phone Number | 987-4000 | |
Entity File Number | 001-04604 | |
City Area Code | 954 | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | FL | |
Entity Registrant Name | HEICO CORPORATION | |
Address | 3000 Taft Street | |
Entity Address, City or Town | Hollywood | |
State | FL | |
Zip Code | 33021 | |
Entity Central Index Key | 0000046619 | |
Entity Tax Identification Number | 65-0341002 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Heico Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Security Exchange Name | NYSE | |
Trading Symbol | HEI | |
Entity Common Stock, Shares Outstanding | 54,200,427 | |
Entity Common Stock Par Value | $ 0.01 | |
Common Class A [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $.01 par value per share | |
Security Exchange Name | NYSE | |
Trading Symbol | HEI.A | |
Entity Common Stock, Shares Outstanding | 81,060,661 | |
Entity Common Stock Par Value | $ 0.01 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 399,403 | $ 406,852 |
Accounts receivable, net | 202,318 | 210,433 |
Contract assets | 57,876 | 60,429 |
Inventories, net | 462,854 | 463,205 |
Prepaid expenses and other current assets | 26,648 | 24,706 |
Total current assets | 1,149,099 | 1,165,625 |
Property, plant and equipment, net | 177,968 | 168,848 |
Goodwill | 1,388,046 | 1,383,167 |
Intangible assets, net | 565,921 | 579,041 |
Other assets | 284,550 | 251,030 |
Total assets | 3,565,584 | 3,547,711 |
Current liabilities: | ||
Current maturities of long-term debt | 1,089 | 1,045 |
Trade accounts payable | 78,292 | 76,237 |
Accrued expenses and other current liabilities | 151,788 | 162,232 |
Income taxes payable | 3,506 | 1,647 |
Total current liabilities | 234,675 | 241,161 |
Long-term debt, net of current maturities | 668,595 | 738,786 |
Deferred income taxes | 47,598 | 55,658 |
Other long-term liabilities | 312,332 | 280,291 |
Total liabilities | 1,263,200 | 1,315,896 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 222,225 | 221,208 |
Shareholders' equity: | ||
Total HEICO shareholders' equity | 2,048,836 | 1,980,177 |
Noncontrolling interests | 31,323 | 30,430 |
Total shareholders' equity | 2,080,159 | 2,010,607 |
Total liabilities and equity | $ 3,565,584 | $ 3,547,711 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] - USD ($) shares in Thousands, $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Preferred Stock, Par or Stated Value 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 dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 54,195 | 54,195 |
Common stock, shares outstanding | 54,195 | |
Shareholders' equity: | ||
Preferred Stock, $.01 par value per share; 10,000 shares authorized; none issued | $ 0 | $ 0 |
Common Stock | 542 | 542 |
Capital in excess of par value | 301,107 | 299,930 |
Deferred compensation obligation | 4,777 | 4,886 |
HEICO stock held by irrevocable trust | (4,777) | (4,886) |
Accumulated other comprehensive loss | 2,129 | (9,149) |
Retained earnings | $ 1,744,247 | $ 1,688,045 |
Class A Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 81,053 | 80,923 |
Common stock, shares outstanding | 81,053 | 80,923 |
Shareholders' equity: | ||
Common Stock | $ 811 | $ 809 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Net sales | $ 417,902 | $ 506,275 |
Operating costs and expenses: | ||
Cost of sales | 259,468 | 308,228 |
Selling, general and administrative expenses | 78,149 | 87,057 |
Total operating costs and expenses | 337,617 | 395,285 |
Operating income | 80,285 | 110,990 |
Interest expense | (2,448) | (4,283) |
Other (expense) income | 711 | 195 |
Income before income taxes and noncontrolling interests | 78,548 | 106,902 |
Income tax expense | 2,300 | (22,900) |
Net income from consolidated operations | 76,248 | 129,802 |
Less: Net income attributable to noncontrolling interests | 5,652 | 7,914 |
Net income attributable to HEICO | $ 70,596 | $ 121,888 |
Net income per share attributable to HEICO shareholders: | ||
Basic (in dollars per share) | $ 0.52 | $ 0.91 |
Diluted (in dollars per share) | $ 0.51 | $ 0.89 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 135,210 | 134,523 |
Diluted (in shares) | 137,742 | 137,421 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Net income from consolidated operations | $ 76,248 | $ 129,802 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 11,648 | (2,678) |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 34 | 24 |
Total other comprehensive income (loss) | 11,682 | (2,654) |
Comprehensive income from consolidated operations | 87,930 | 127,148 |
Less: Comprehensive income attributable to noncontrolling interests | 5,652 | 7,914 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | 404 | (130) |
Comprehensive income attributable to noncontrolling interests | 6,056 | 7,784 |
Comprehensive income attributable to HEICO | $ 81,874 | $ 119,364 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member] | Capital In Excess Of Par Value [Member] | Deferred Compensation Obligation [Member] | HEICO Stock Held By Irrevocable Trust [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total Shareholders Equity [Member] |
Starting Balance at Oct. 31, 2019 | $ 541 | $ 804 | $ 284,609 | $ 4,232 | $ (4,232) | $ (16,739) | $ 1,397,327 | $ 28,118 | $ 1,694,660 | ||
Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 119,364 | (2,524) | 121,888 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 7,784 | $ 4,767 | 3,017 | ||||||||
Comprehensive income | 127,148 | 122,381 | |||||||||
Cash dividends | (10,762) | (10,762) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1,298 | 1,298 | |||||||||
Share-based compensation expense | 2,646 | 2,646 | |||||||||
Proceeds from stock option exercises | 1 | 1,528 | |||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 1,527 | ||||||||||
Stock Redeemed or Called During Period, Value | (2,562) | (2,562) | |||||||||
Distributions to noncontrolling interests | (4,347) | (534) | (534) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (331) | 331 | 331 | ||||||||
Adjustments to Additional Paid in Capital, Other | 261 | 261 | |||||||||
Ending Balance at Jan. 31, 2020 | 541 | 805 | 287,779 | 4,232 | (4,232) | (19,263) | 1,508,784 | 30,601 | 1,809,247 | ||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2019 | 188,264 | ||||||||||
Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 7,784 | 4,767 | 3,017 | ||||||||
Noncontrolling Interest, Increase from Business Combination | 7,540 | ||||||||||
Distributions to noncontrolling interests | (4,347) | (534) | (534) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (331) | 331 | 331 | ||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jan. 31, 2020 | 195,893 | ||||||||||
Starting Balance at Oct. 31, 2020 | 2,010,607 | 542 | 809 | 299,930 | 4,886 | (4,886) | (9,149) | 1,688,045 | 30,430 | 2,010,607 | |
Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 81,874 | 11,278 | 70,596 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 6,056 | 4,797 | 1,259 | ||||||||
Comprehensive income | 87,930 | 83,133 | |||||||||
Cash dividends | (10,818) | (10,818) | |||||||||
Share-based compensation expense | 2,229 | 2,229 | |||||||||
Proceeds from stock option exercises | 2 | 2,450 | |||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 2,448 | ||||||||||
Stock Redeemed or Called During Period, Value | (3,571) | (3,571) | |||||||||
Distributions to noncontrolling interests | (7,378) | (366) | (366) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 3,576 | (3,576) | (3,576) | ||||||||
Value of Stock Issued or Reversed During Period for Deferred Compensation Obligation | (109) | ||||||||||
Value of Stock Reversed During Period Deferred Compensation Obligation | 109 | ||||||||||
Adjustments to Additional Paid in Capital, Other | 71 | 71 | |||||||||
Ending Balance at Jan. 31, 2021 | 2,080,159 | $ 542 | $ 811 | $ 301,107 | $ 4,777 | $ (4,777) | $ 2,129 | 1,744,247 | 31,323 | 2,080,159 | |
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2020 | 221,208 | 221,208 | |||||||||
Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 6,056 | 4,797 | 1,259 | ||||||||
Distributions to noncontrolling interests | (7,378) | $ (366) | (366) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 3,576 | $ (3,576) | $ (3,576) | ||||||||
Temporary Equity, Other Changes | 22 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jan. 31, 2021 | $ 222,225 | $ 222,225 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED [PARENTHETICAL] - $ / shares | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Cash dividends per share (in dollars per share) | $ 0.08 | $ 0.08 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Operating Activities: | ||
Net income from consolidated operations | $ 76,248 | $ 129,802 |
Adjustments to reconcile net income from consolidated operations to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 23,003 | 21,583 |
Share-based compensation expense | 2,229 | 2,646 |
Employer contributions to HEICO Savings and Investment Plan | 2,840 | 2,613 |
Deferred income tax provision (benefit) | (8,345) | (25,718) |
Change in value of contingent consideration | 432 | 408 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Change in accounts receivable | 9,234 | 23,734 |
Increase (Decrease) in Contract with Customer, Asset | 2,623 | (1,719) |
Change in inventories | 2,602 | (20,449) |
Change in prepaid expenses and other current assets | (6,614) | (3,303) |
Change in trade accounts payable | 1,641 | (10,678) |
Change in accrued expenses and other current liabilities | (19,241) | (48,319) |
Change in income taxes payable | 6,627 | (1,334) |
Increase (Decrease) in Obligation, Other Postretirement Benefits | 12,022 | 11,315 |
Other | 1,898 | 555 |
Net cash provided by operating activities | 107,199 | 81,136 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (345) | (45,343) |
Capital expenditures | (15,509) | (6,850) |
Net Investment Related to Deferred Compensation Plan | (10,400) | (11,800) |
Other | 983 | 439 |
Net cash used in investing activities | (25,271) | (63,554) |
Financing Activities: | ||
Payments on revolving credit facility | (70,000) | (38,000) |
Proceeds from Long-term Lines of Credit | 45,000 | |
Cash dividends paid | (10,818) | (10,762) |
Distributions to noncontrolling interests | (7,744) | (4,881) |
Common Stock Issued Repurchased and Retired Related To Stock Option Exercises | (3,571) | (2,562) |
Payments of Debt Issuance Costs | (1,468) | |
Proceeds from stock option exercises | 2,450 | 1,528 |
Other | (256) | (538) |
Net cash (used in) provided by financing activities | (91,407) | (10,215) |
Effect of exchange rate changes on cash | 2,030 | (397) |
Net (decrease) increase in cash and cash equivalents | (7,449) | 6,970 |
Cash and cash equivalents at beginning of year | 406,852 | 57,001 |
Cash and cash equivalents at end of period | $ 399,403 | $ 63,971 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2020. The October 31, 2020 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the three months ended January 31, 2021 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. The Company's results of operations in the first quarter of fiscal 2021 continue to reflect the adverse impact from the COVID-19 global pandemic (the “Pandemic”). Most notably, demand for HEICO's commercial aviation products and services continues to be moderated by the ongoing depressed commercial aerospace market. Consolidated net sales for the Company's businesses that operate within the commercial aerospace industry decreased by approximately 43% during the first quarter of fiscal 2021, as compared to the first quarter of fiscal 2020. Looking ahead to the remainder of fiscal 2021, the extent to which the Pandemic may have a material adverse effect on the Company's future business, financial condition and results of operations will depend on many factors that are not within HEICO’s control, including but not limited to the duration, spread and severity of the Pandemic, the emergence of new coronavirus strain variants, the timing of distribution and effectiveness of COVID-19 vaccines, government responses and other actions to mitigate the spread of and to treat the Pandemic, and when and to what extent normal business, economic and social activity and conditions resume. However, the Company is cautiously optimistic that the recent vaccine progress may generate increased commercial air travel and result in a gradual recovery in demand for its commercial aerospace parts and services commencing toward the second-half of fiscal 2021. |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Jan. 31, 2021 | |
Selected Financial Statement Information [Abstract] | |
Selected Financial Statement Information [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable (in thousands) January 31, 2021 October 31, 2020 Accounts receivable $215,145 $223,171 Less: Allowance for doubtful accounts (12,827) (12,738) Accounts receivable, net $202,318 $210,433 Inventories (in thousands) January 31, 2021 October 31, 2020 Finished products $228,602 $235,501 Work in process 40,268 37,957 Materials, parts, assemblies and supplies 193,984 189,747 Inventories, net of valuation reserves $462,854 $463,205 Property, Plant and Equipment (in thousands) January 31, 2021 October 31, 2020 Land $10,877 $6,678 Buildings and improvements 128,961 120,769 Machinery, equipment and tooling 269,836 265,408 Construction in progress 9,307 8,487 418,981 401,342 Less: Accumulated depreciation and amortization (241,013) (232,494) Property, plant and equipment, net $177,968 $168,848 Accrued Customer Rebates and Credits The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $16.0 million as of January 31, 2021 and $15.8 million as of October 31, 2020. The total customer rebates and credits deducted within net sales for the three months ended January 31, 2021 and 2020 was $.8 million and $2.1 million, respectively. Research and Development Expenses The amount of new product research and development ("R&D") expenses included in cost of sales for the three months ended January 31, 2021 and 2020 is as follows (in thousands): Three months ended January 31, 2021 2020 R&D expenses $16,181 $17,103 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 2030. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): January 31, 2021 October 31, 2020 Redeemable at fair value $180,978 $179,415 Redeemable based on a multiple of future earnings 41,247 41,793 Redeemable noncontrolling interests $222,225 $221,208 Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive income (loss) for the three months ended January 31, 2021 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2020 ($6,460) ($2,689) ($9,149) Unrealized gain 11,244 — 11,244 Amortization of unrealized loss — 34 34 Balances as of January 31, 2021 $4,784 ($2,655) $2,129 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill by operating segment for the three months ended January 31, 2021 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2020 $427,565 $955,602 $1,383,167 Foreign currency translation adjustments 1,903 2,768 4,671 Adjustments to goodwill (33) 241 208 Balances as of January 31, 2021 $429,435 $958,611 $1,388,046 Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Condensed Consolidated Statements of Comprehensive Income. The adjustments to goodwill represent immaterial measurement period adjustments to the purchase price allocation of certain fiscal 2020 acquisitions. Identifiable intangible assets consist of the following (in thousands): As of January 31, 2021 As of October 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $435,317 ($190,688) $244,629 $443,143 ($188,919) $254,224 Intellectual property 241,704 (89,952) 151,752 240,725 (84,686) 156,039 Licenses 6,559 (4,795) 1,764 6,559 (4,670) 1,889 Patents 1,073 (750) 323 1,071 (746) 325 Non-compete agreements 818 (818) — 811 (811) — Trade names 450 (228) 222 450 (219) 231 685,921 (287,231) 398,690 692,759 (280,051) 412,708 Non-Amortizing Assets: Trade names 167,231 — 167,231 166,333 — 166,333 $853,152 ($287,231) $565,921 $859,092 ($280,051) $579,041 Amortization expense related to intangible assets for the three months ended January 31, 2021 and 2020 was $15.2 million and $13.7 million, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2021 is estimated to be $44.7 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $53.1 million in fiscal 2022, $47.5 million in fiscal 2023, $42.6 million in fiscal 2024, $38.2 million in fiscal 2025, $33.8 million in fiscal 2026, and $138.8 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): January 31, 2021 October 31, 2020 Borrowings under revolving credit facility $660,000 $730,000 Finance leases and note payable 9,684 9,831 669,684 739,831 Less: Current maturities of long-term debt (1,089) (1,045) $668,595 $738,786 |
REVENUE
REVENUE | 3 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Contract Balances Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer. Contract liabilities (deferred revenue) represent customer advances and billings in excess of revenue recognized and are included within accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheet. Changes in the Company’s contract assets and liabilities for the three months ended January 31, 2021 are as follows (in thousands): January 31, 2021 October 31, 2020 Change Contract assets $57,876 $60,429 ($2,553) Contract liabilities 30,004 25,631 4,373 Net contract assets $27,872 $34,798 ($6,926) The decrease in the Company's contract assets during the first quarter of fiscal 2021 mainly occurred within the ETG and principally reflects billings on certain customer contracts made during the quarter in excess of amounts recorded as unbilled receivables on certain customer contracts using an over-time recognition model. The increase in the Company's contract liabilities during the first quarter of fiscal 2021 mainly occurred within the ETG and principally reflects the receipt during the quarter of new customer deposits on certain customer contracts in excess of reductions to contract liabilities from customer deposits recognized as revenue. The amount of revenue that the Company recognized during the first quarter of fiscal 2021 that was included in contract liabilities as of the beginning of fiscal 2021 was $11.2 million. Remaining Performance Obligations As of January 31, 2021, the Company had $486.2 million of remaining performance obligations associated with contracts with an original duration of greater than one year pertaining to the majority of the products offered by the ETG as well as certain products of the FSG's specialty products and aftermarket replacement parts product lines. The Company will recognize net sales as these obligations are satisfied. The Company expects to recognize $286.5 million of this amount during the remainder of fiscal 2021 and $199.7 million thereafter, of which the majority is expected to occur in fiscal 2022. Disaggregation of Revenue The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Three months ended January 31, 2021 2020 Flight Support Group: Aftermarket replacement parts (1) $118,434 $168,267 Repair and overhaul parts and services (2) 42,412 69,287 Specialty products (3) 38,488 63,513 Total net sales 199,334 301,067 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 167,089 160,713 Electronic component parts for equipment in various other industries (5) 56,461 47,698 Total net sales 223,550 208,411 Intersegment sales (4,982) (3,203) Total consolidated net sales $417,902 $506,275 (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, high performance active antenna systems, and technical surveillance countermeasures (TSCM) equipment. (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, custom molded cable assemblies, silicone material for a variety of demanding applications and rugged small form-factor embedded computing solutions. The following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Three months ended January 31, 2021 2020 Flight Support Group: Aerospace $135,056 $239,923 Defense and Space 54,044 50,253 Other (1) 10,234 10,891 Total net sales 199,334 301,067 Electronic Technologies Group: Defense and Space 142,092 133,110 Other (2) 63,907 54,963 Aerospace 17,551 20,338 Total net sales 223,550 208,411 Intersegment sales (4,982) (3,203) Total consolidated net sales $417,902 $506,275 (1) Principally industrial products. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company's income tax expense was $2.3 million in the first quarter of fiscal 2021, as compared to an income tax benefit of $22.9 million in the first quarter of fiscal 2020. The Company recognized a discrete tax benefit from stock option exercises in both the first quarter of fiscal 2021 and 2020 of $13.5 million and $47.6 million, respectively. The tax benefit from stock option exercises in both periods was the result of strong appreciation in HEICO's stock price during the optionees' holding periods and the $34.1 million larger benefit recognized in the first quarter of fiscal 2020 was the result of more stock options exercised. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands): As of January 31, 2021 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $209,873 $— $209,873 Money market funds 4,322 — — 4,322 Total assets $4,322 $209,873 $— $214,195 Liabilities: Contingent consideration $— $— $42,819 $42,819 As of October 31, 2020 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $180,128 $— $180,128 Money market funds 11 — — 11 Total assets $11 $180,128 $— $180,139 Liabilities: Contingent consideration $— $— $41,974 $41,974 The Company maintains the HEICO Corporation Leadership Compensation Plan (the "LCP"), which is a non-qualified deferred compensation plan. The assets of the LCP principally represent cash surrender values of life insurance policies, which derive their fair values from investments in mutual funds that are managed by an insurance company and are classified within Level 2 and valued using a market approach. Certain other assets of the LCP represent investments in money market funds that are classified within Level 1. The assets of the LCP are held within an irrevocable trust and classified within other assets in the Company’s Condensed Consolidated Balance Sheets. The related liabilities of the LCP are included within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $212.2 million as of January 31, 2021 and $178.3 million as of October 31, 2020. As part of the agreement to acquire 89.99% of the equity interests of a subsidiary by the ETG in fiscal 2020, the Company may be obligated to pay contingent consideration of up to CAD $27.0 million, or $21.1 million, in fiscal 2025 should the acquired entity meet certain earnings objectives during fiscal 2023 and 2024. However, should the acquired entity achieve a certain earnings objective over any two consecutive fiscal years beginning in fiscal 2021 and ending in fiscal 2023, half of the contingent consideration obligation, or CAD $13.5 million, would be payable in the following year. As of January 31, 2021, the estimated fair value of the contingent consideration was CAD $13.0 million, or $10.2 million. As part of the agreement to acquire a subsidiary by the ETG in fiscal 2020, the Company may be obligated to pay contingent consideration of up to $35.0 million in fiscal 2025 based on the earnings of the acquired entity during calendar years 2023 and 2024 provided the entity meets certain earnings objectives during each of calendar years 2021 to 2024. As of January 31, 2021, the estimated fair value of the contingent consideration was $14.4 million. The obligation to pay any contingent consideration would be payable by a consolidated subsidiary of HEICO that is 75% owned by HEICO Electronic. 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 a certain earnings objective during the first six years following the acquisition. As of January 31, 2021, the estimated fair value of the contingent consideration was $18.3 million. The estimated fair value of the contingent consideration arrangements described above are classified within Level 3 and were determined using probability-based scenario analyses. Under this method, a set of discrete potential future subsidiary earnings was determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood was assigned to each discrete potential future earnings estimate and the resultant contingent consideration was calculated. The resulting probability-weighted contingent consideration amounts were discounted using a weighted average discount rate reflecting the credit risk of HEICO. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's consolidated statements of operations. The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of January 31, 2021 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 8-18-2020 $10,193 Compound annual revenue growth rate 0% - 19% 7.0% Discount rate 4.3% - 4.5% 4.4% 8-11-2020 14,357 Compound annual revenue growth rate 4% - 18% 13.0% Discount rate 4.5% - 4.5% 4.5% 9-15-2017 18,269 Compound annual revenue growth rate (3%) - 10% 6.0% Discount rate 3.4% - 3.4% 3.4% (1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. Changes in the Company’s contingent consideration liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended January 31, 2021 are as follows (in thousands): Liabilities Balance as of October 31, 2020 $41,974 Increase in accrued contingent consideration 432 Foreign currency transaction adjustments 413 Balance as of January 31, 2021 $42,819 The Company's contingent consideration liabilities are included in other long-term liabilities in its Condensed Consolidated Balance Sheet and the Company records changes in accrued contingent consideration and foreign currency transaction adjustments within selling, general and administrative expenses in its Condensed Consolidated Statement of Operations. The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of January 31, 2021 due to the relatively short maturity of the respective instruments. The carrying amount of long-term debt approximates fair value due to its variable interest rates. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 3 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): Three months ended January 31, 2021 2020 Numerator: Net income attributable to HEICO $70,596 $121,888 Denominator: Weighted average common shares outstanding - basic 135,210 134,523 Effect of dilutive stock options 2,532 2,898 Weighted average common shares outstanding - diluted 137,742 137,421 Net income per share attributable to HEICO shareholders: Basic $.52 $.91 Diluted $.51 $.89 Anti-dilutive stock options excluded 28 117 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS Information on the Company’s two operating segments, the FSG and the ETG, for the three months ended January 31, 2021 and 2020, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Three months ended January 31, 2021: Net sales $199,334 $223,550 ($4,982) $417,902 Depreciation 3,450 3,059 246 6,755 Amortization 5,136 10,838 274 16,248 Operating income 25,822 60,128 (5,665) 80,285 Capital expenditures 1,988 13,521 — 15,509 Three months ended January 31, 2020: Net sales $301,067 $208,411 ($3,203) $506,275 Depreciation 3,617 2,928 255 6,800 Amortization 4,859 9,678 246 14,783 Operating income 62,045 57,491 (8,546) 110,990 Capital expenditures 4,118 2,727 5 6,850 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. Total assets by operating segment are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of January 31, 2021 $1,122,774 $1,893,898 $548,912 $3,565,584 Total assets as of October 31, 2020 1,127,666 1,896,671 523,374 3,547,711 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees As of January 31, 2021, the Company has arranged for standby letters of credit aggregating $15.6 million, which are supported by its revolving credit facility and principally pertain to performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries as well as payment guarantees related to potential workers' compensation claims and a facility lease. Product Warranty Changes in the Company’s product warranty liability for the three months ended January 31, 2021 and 2020, respectively, are as follows (in thousands): Three months ended January 31, 2021 2020 Balances as of beginning of fiscal year $3,015 $2,810 Accruals for warranties 175 1,007 Acquired warranty liabilities — 50 Warranty claims settled (323) (459) Balances as of January 31 $2,867 $3,408 Litigation The Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jan. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Basis of Presentation [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2020. The October 31, 2020 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the three months ended January 31, 2021 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. The Company's results of operations in the first quarter of fiscal 2021 continue to reflect the adverse impact from the COVID-19 global pandemic (the “Pandemic”). Most notably, demand for HEICO's commercial aviation products and services continues to be moderated by the ongoing depressed commercial aerospace market. Consolidated net sales for the Company's businesses that operate within the commercial aerospace industry decreased by approximately 43% during the first quarter of fiscal 2021, as compared to the first quarter of fiscal 2020. Looking ahead to the remainder of fiscal 2021, the extent to which the Pandemic may have a material adverse effect on the Company's future business, financial condition and results of operations will depend on many factors that are not within HEICO’s control, including but not limited to the duration, spread and severity of the Pandemic, the emergence of new coronavirus strain variants, the timing of distribution and effectiveness of COVID-19 vaccines, government responses and other actions to mitigate the spread of and to treat the Pandemic, and when and to what extent normal business, economic and social activity and conditions resume. However, the Company is cautiously optimistic that the recent vaccine progress may generate increased commercial air travel and result in a gradual recovery in demand for its commercial aerospace parts and services commencing toward the second-half of fiscal 2021. |
Accounting Standards Update 2017-04 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update "ASU" 2017-04, "Simplifying the Test for Goodwill Impairment," which is intended to simplify the current test for goodwill impairment by eliminating the second step in which the implied value of a reporting unit is calculated when the carrying value of the reporting unit exceeds its fair value. Under ASU 2017-04, goodwill impairment should be recognized for the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company adopted ASU 2017-04 in the first quarter of fiscal 2021 and will apply the guidance on a prospective basis when assessing its goodwill for impairment. |
SELECTED FINANCIAL STATEMENT _2
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands) January 31, 2021 October 31, 2020 Accounts receivable $215,145 $223,171 Less: Allowance for doubtful accounts (12,827) (12,738) Accounts receivable, net $202,318 $210,433 |
Schedule of Inventories [Table Text Block] | Inventories (in thousands) January 31, 2021 October 31, 2020 Finished products $228,602 $235,501 Work in process 40,268 37,957 Materials, parts, assemblies and supplies 193,984 189,747 Inventories, net of valuation reserves $462,854 $463,205 |
Schedule of Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment (in thousands) January 31, 2021 October 31, 2020 Land $10,877 $6,678 Buildings and improvements 128,961 120,769 Machinery, equipment and tooling 269,836 265,408 Construction in progress 9,307 8,487 418,981 401,342 Less: Accumulated depreciation and amortization (241,013) (232,494) Property, plant and equipment, net $177,968 $168,848 |
Schedule of Research and Development Expenses [Table Text Block] | The amount of new product research and development ("R&D") expenses included in cost of sales for the three months ended January 31, 2021 and 2020 is as follows (in thousands): Three months ended January 31, 2021 2020 R&D expenses $16,181 $17,103 |
Schedule of Redeemable Noncontrolling Interests [Table Text Block] | Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): January 31, 2021 October 31, 2020 Redeemable at fair value $180,978 $179,415 Redeemable based on a multiple of future earnings 41,247 41,793 Redeemable noncontrolling interests $222,225 $221,208 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive income (loss) for the three months ended January 31, 2021 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2020 ($6,460) ($2,689) ($9,149) Unrealized gain 11,244 — 11,244 Amortization of unrealized loss — 34 34 Balances as of January 31, 2021 $4,784 ($2,655) $2,129 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by operating segment for the three months ended January 31, 2021 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2020 $427,565 $955,602 $1,383,167 Foreign currency translation adjustments 1,903 2,768 4,671 Adjustments to goodwill (33) 241 208 Balances as of January 31, 2021 $429,435 $958,611 $1,388,046 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of January 31, 2021 As of October 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $435,317 ($190,688) $244,629 $443,143 ($188,919) $254,224 Intellectual property 241,704 (89,952) 151,752 240,725 (84,686) 156,039 Licenses 6,559 (4,795) 1,764 6,559 (4,670) 1,889 Patents 1,073 (750) 323 1,071 (746) 325 Non-compete agreements 818 (818) — 811 (811) — Trade names 450 (228) 222 450 (219) 231 685,921 (287,231) 398,690 692,759 (280,051) 412,708 Non-Amortizing Assets: Trade names 167,231 — 167,231 166,333 — 166,333 $853,152 ($287,231) $565,921 $859,092 ($280,051) $579,041 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): January 31, 2021 October 31, 2020 Borrowings under revolving credit facility $660,000 $730,000 Finance leases and note payable 9,684 9,831 669,684 739,831 Less: Current maturities of long-term debt (1,089) (1,045) $668,595 $738,786 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Changes in the Company’s contract assets and liabilities for the three months ended January 31, 2021 are as follows (in thousands): January 31, 2021 October 31, 2020 Change Contract assets $57,876 $60,429 ($2,553) Contract liabilities 30,004 25,631 4,373 Net contract assets $27,872 $34,798 ($6,926) |
Product Line [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Three months ended January 31, 2021 2020 Flight Support Group: Aftermarket replacement parts (1) $118,434 $168,267 Repair and overhaul parts and services (2) 42,412 69,287 Specialty products (3) 38,488 63,513 Total net sales 199,334 301,067 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 167,089 160,713 Electronic component parts for equipment in various other industries (5) 56,461 47,698 Total net sales 223,550 208,411 Intersegment sales (4,982) (3,203) Total consolidated net sales $417,902 $506,275 (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, high performance active antenna systems, and technical surveillance countermeasures (TSCM) equipment. (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, custom molded cable assemblies, silicone material for a variety of demanding applications and rugged small form-factor embedded computing solutions. |
Sales by Industry [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Three months ended January 31, 2021 2020 Flight Support Group: Aerospace $135,056 $239,923 Defense and Space 54,044 50,253 Other (1) 10,234 10,891 Total net sales 199,334 301,067 Electronic Technologies Group: Defense and Space 142,092 133,110 Other (2) 63,907 54,963 Aerospace 17,551 20,338 Total net sales 223,550 208,411 Intersegment sales (4,982) (3,203) Total consolidated net sales $417,902 $506,275 (1) Principally industrial products. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands): As of January 31, 2021 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $209,873 $— $209,873 Money market funds 4,322 — — 4,322 Total assets $4,322 $209,873 $— $214,195 Liabilities: Contingent consideration $— $— $42,819 $42,819 As of October 31, 2020 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $180,128 $— $180,128 Money market funds 11 — — 11 Total assets $11 $180,128 $— $180,139 Liabilities: Contingent consideration $— $— $41,974 $41,974 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of January 31, 2021 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 8-18-2020 $10,193 Compound annual revenue growth rate 0% - 19% 7.0% Discount rate 4.3% - 4.5% 4.4% 8-11-2020 14,357 Compound annual revenue growth rate 4% - 18% 13.0% Discount rate 4.5% - 4.5% 4.5% 9-15-2017 18,269 Compound annual revenue growth rate (3%) - 10% 6.0% Discount rate 3.4% - 3.4% 3.4% |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Changes in the Company’s contingent consideration liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three months ended January 31, 2021 are as follows (in thousands): Liabilities Balance as of October 31, 2020 $41,974 Increase in accrued contingent consideration 432 Foreign currency transaction adjustments 413 Balance as of January 31, 2021 $42,819 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): Three months ended January 31, 2021 2020 Numerator: Net income attributable to HEICO $70,596 $121,888 Denominator: Weighted average common shares outstanding - basic 135,210 134,523 Effect of dilutive stock options 2,532 2,898 Weighted average common shares outstanding - diluted 137,742 137,421 Net income per share attributable to HEICO shareholders: Basic $.52 $.91 Diluted $.51 $.89 Anti-dilutive stock options excluded 28 117 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Information on the Company’s two operating segments, the FSG and the ETG, for the three months ended January 31, 2021 and 2020, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Three months ended January 31, 2021: Net sales $199,334 $223,550 ($4,982) $417,902 Depreciation 3,450 3,059 246 6,755 Amortization 5,136 10,838 274 16,248 Operating income 25,822 60,128 (5,665) 80,285 Capital expenditures 1,988 13,521 — 15,509 Three months ended January 31, 2020: Net sales $301,067 $208,411 ($3,203) $506,275 Depreciation 3,617 2,928 255 6,800 Amortization 4,859 9,678 246 14,783 Operating income 62,045 57,491 (8,546) 110,990 Capital expenditures 4,118 2,727 5 6,850 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by operating segment are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of January 31, 2021 $1,122,774 $1,893,898 $548,912 $3,565,584 Total assets as of October 31, 2020 1,127,666 1,896,671 523,374 3,547,711 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability for the three months ended January 31, 2021 and 2020, respectively, are as follows (in thousands): Three months ended January 31, 2021 2020 Balances as of beginning of fiscal year $3,015 $2,810 Accruals for warranties 175 1,007 Acquired warranty liabilities — 50 Warranty claims settled (323) (459) Balances as of January 31 $2,867 $3,408 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) | 3 Months Ended |
Jan. 31, 2021 | |
Aerospace [Member] | |
Percent change in Revenue | 43.00% |
SELECTED FINANCIAL STATEMENT _3
SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 215,145 | $ 223,171 |
Less: Allowance for doubtful accounts | (12,827) | (12,738) |
Accounts receivable, net | $ 202,318 | $ 210,433 |
SELECTED FINANCIAL STATEMENT _4
SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Inventory [Line Items] | ||
Finished products | $ 228,602 | $ 235,501 |
Work in process | 40,268 | 37,957 |
Materials, parts, assemblies and supplies | 193,984 | 189,747 |
Inventories, net of valuation reserves | $ 462,854 | $ 463,205 |
SELECTED FINANCIAL STATEMENT _5
SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 10,877 | $ 6,678 |
Buildings and improvements | 128,961 | 120,769 |
Machinery, equipment and tooling | 269,836 | 265,408 |
Construction in progress | 9,307 | 8,487 |
Property, plant and equipment, gross | 418,981 | 401,342 |
Less: Accumulated depreciation and amortization | (241,013) | (232,494) |
Property, plant and equipment, net | $ 177,968 | $ 168,848 |
SELECTED FINANCIAL STATEMENT _6
SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2019 | |
Selected Financial Statement Information (Details) [Abstract] | ||
R&D expenses | $ 16,181 | $ 17,103 |
SELECTED FINANCIAL STATEMENT _7
SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable at fair value | $ 180,978 | $ 179,415 |
Redeemable based on a multiple of future earnings | 41,247 | 41,793 |
Redeemable noncontrolling interests | $ 222,225 | $ 221,208 |
SELECTED FINANCIAL STATEMENT _8
SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Starting accumulated other comprehensive loss | $ (9,149) | |
Unrealized gain | 11,244 | |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 34 | $ 24 |
Ending accumulated other comprehensive loss | 2,129 | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Starting accumulated other comprehensive loss | (6,460) | |
Unrealized gain | 11,244 | |
Ending accumulated other comprehensive loss | 4,784 | |
Pension Benefit Obligation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Starting accumulated other comprehensive loss | (2,689) | |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 34 | |
Ending accumulated other comprehensive loss | $ (2,655) |
SELECTED FINANCIAL STATEMENT _9
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Selected Financial Statement Information (Details) [Abstract] | |||
Accrued customer rebates and credits | $ 16 | $ 15.8 | |
Total customer rebates and credits deducted within net sales | $ 0.8 | $ 2.1 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands | 3 Months Ended |
Jan. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Opening Balance | $ 1,383,167 |
Foreign currency translation adjustments | 4,671 |
Adjustments to goodwill | 208 |
Ending Balance | 1,388,046 |
Flight Support Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 427,565 |
Foreign currency translation adjustments | 1,903 |
Adjustments to goodwill | (33) |
Ending Balance | 429,435 |
Electronic Technologies Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 955,602 |
Foreign currency translation adjustments | 2,768 |
Adjustments to goodwill | 241 |
Ending Balance | $ 958,611 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Customer Relationships, Gross | $ 435,317 | $ 443,143 |
Finite-Lived Intellectual Property, Gross | 241,704 | 240,725 |
Finite-Lived License Agreements, Gross | 6,559 | 6,559 |
Finite-Lived Patents, Gross | 1,073 | 1,071 |
Finite-Lived Noncompete Agreements, Gross | 818 | 811 |
Finite-Lived Trade Names, Gross | 450 | 450 |
Gross Carrying Amount | 685,921 | 692,759 |
Indefinite-Lived Trade Names | 167,231 | 166,333 |
Intangible Assets, Gross (Excluding Goodwill) | 853,152 | 859,092 |
Accumulated Amortization | (287,231) | (280,051) |
Net Carrying Amount | 398,690 | 412,708 |
Intangible Asset Net Carrying Amount | 565,921 | 579,041 |
Customer Relationships [Member] | ||
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (190,688) | (188,919) |
Net Carrying Amount | 244,629 | 254,224 |
Intellectual Property [Member] | ||
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (89,952) | (84,686) |
Net Carrying Amount | 151,752 | 156,039 |
Licensing Agreements [Member] | ||
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (4,795) | (4,670) |
Net Carrying Amount | 1,764 | 1,889 |
Patents [Member] | ||
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (750) | (746) |
Net Carrying Amount | 323 | 325 |
Noncompete Agreements [Member] | ||
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (818) | (811) |
Net Carrying Amount | 0 | 0 |
Trade Names [Member] | ||
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (228) | (219) |
Net Carrying Amount | $ 222 | $ 231 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense related to intangible assets | $ 15.2 | $ 13.7 |
Estimated Amortization Expense, remainder of fiscal year | 44.7 | |
Estimated Amortization Expense, for fiscal 2022 | 53.1 | |
Estimated Amortization Expense, for fiscal 2023 | 47.5 | |
Estimated Amortization Expense, for fiscal 2024 | 42.6 | |
Estimated Amortization Expense, for fiscal 2025 | 38.2 | |
Estimated Amortization Expense, for fiscal 2026 | 33.8 | |
Estimated Amortization Expense, thereafter | $ 138.8 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Borrowings under revolving credit facility | $ 660,000 | $ 730,000 |
Finance leases and note payable | 9,684 | 9,831 |
Total debt and capital leases | 669,684 | 739,831 |
Current maturities of long-term debt | (1,089) | (1,045) |
Long-term debt, net of current maturities | $ 668,595 | $ 738,786 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) | Jan. 31, 2021 | Oct. 31, 2020 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.20% | 1.30% |
REVENUE (Contract Assets and Li
REVENUE (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Oct. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Contract assets | $ 57,876 | $ 60,429 |
Contract liabilities | 30,004 | 25,631 |
Net contract assets | 27,872 | $ 34,798 |
Decrease in contract assets, net | (2,553) | |
Increase (Decrease) in Customer Deposits | 4,373 | |
Contract with Customer, Billings in Excess of Unbilled Receivable and New Deposits in Excess of Deposits Recognized as Revenue | $ (6,926) |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue, by Product Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 417,902 | $ 506,275 | |
Flight Support Group [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 199,334 | 301,067 | |
Flight Support Group [Member] | Aftermarket Replacement Parts [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 118,434 | 168,267 |
Flight Support Group [Member] | Repair and Overhaul Parts and Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 42,412 | 69,287 |
Flight Support Group [Member] | Specialty Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [3] | 38,488 | 63,513 |
Electronic Technologies Group [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 223,550 | 208,411 | |
Electronic Technologies Group [Member] | Electronic Components for Defense, Space and Aerospace [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [4] | 167,089 | 160,713 |
Electronic Technologies Group [Member] | Other Electronic Components [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [5] | 56,461 | 47,698 |
Corporate And Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (4,982) | $ (3,203) | |
[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, high performance active antenna systems, and technical surveillance countermeasures (TSCM) equipment. | ||
[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, custom molded cable assemblies, silicone material for a variety of demanding applications and rugged small form-factor embedded computing solutions. |
REVENUE (Disaggregation of Re_2
REVENUE (Disaggregation of Revenue, by Industry) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 417,902 | $ 506,275 | |
Flight Support Group [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 199,334 | 301,067 | |
Flight Support Group [Member] | Aerospace [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 135,056 | 239,923 | |
Flight Support Group [Member] | Defense and Space [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 54,044 | 50,253 | |
Flight Support Group [Member] | Other Industries [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 10,234 | 10,891 |
Electronic Technologies Group [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 223,550 | 208,411 | |
Electronic Technologies Group [Member] | Aerospace [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 17,551 | 20,338 | |
Electronic Technologies Group [Member] | Defense and Space [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 142,092 | 133,110 | |
Electronic Technologies Group [Member] | Other Industries [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 63,907 | 54,963 |
Corporate And Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (4,982) | $ (3,203) | |
[1] | Principally industrial products. | ||
[2] | Principally other electronics and medical products. |
REVENUE (Details Textuals)
REVENUE (Details Textuals) $ in Millions | 3 Months Ended |
Jan. 31, 2021USD ($) | |
REVENUE [Abstract] | |
Contract with Customer, Liability, Revenue Recognized | $ 11.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 486.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Amount | $ 286.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months 1 day |
Revenue, Remaining Performance Obligation, Amount | $ 199.7 |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $ (2,300) | $ 22,900 |
Tax benefit from stock option exercises recognized in the period | $ 13,500 | 47,600 |
Change in tax benefit for stock option exercises | $ 34,100 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy, by Category) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 214,195 | $ 180,139 |
Liabilities: | ||
Contingent consideration | 42,819 | 41,974 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 4,322 | 11 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 209,873 | 180,128 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Liabilities: | ||
Contingent consideration | 42,819 | 41,974 |
Corporate Owned Life Insurance [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 209,873 | 180,128 |
Corporate Owned Life Insurance [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Corporate Owned Life Insurance [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 209,873 | 180,128 |
Corporate Owned Life Insurance [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 4,322 | 11 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 4,322 | 11 |
Money Market Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Level
FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | Jan. 31, 2021USD ($) | Oct. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 42,819 | $ 41,974 | |
FY2020 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 10,193 | ||
FY2020 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 14,357 | ||
FY 2017 Acquisition [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 18,269 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.070 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.19 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.130 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 2 | 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] | FY2020 Acquisition Subsidiary 2 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.18 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.060 | |
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 | (0.03) | ||
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 | 0.10 | ||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.044 | |
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.043 | ||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.045 | ||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.045 | |
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 2 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.045 | ||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 2 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.045 | ||
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 | [1] | 0.034 | |
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.034 | ||
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.034 | ||
[1] | Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. |
FAIR VALUE MEASUREMENTS (Contin
FAIR VALUE MEASUREMENTS (Contingent Consideration Liability) (Details) - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands | 3 Months Ended |
Jan. 31, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening balance, Liabilities | $ 41,974 |
Change in accrued contingent consideration | 432 |
Ending balance, Liabilities | 42,819 |
Foreign Currency Gain (Loss) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ 413 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, $ in Thousands | Jan. 31, 2021USD ($) | Jan. 31, 2021CAD ($) | Oct. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | $ 42,819 | $ 41,974 | |
FY2020 Acquisition Subsidiary 1 | Heico Electronic Technologies Corp | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | 10,200 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 21,100 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 89.99% | 89.99% | |
FY2020 Acquisition Subsidiary 1 | Heico Electronic Technologies Corp | Canada, Dollars | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | $ 13,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 27,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 13,500 | ||
FY2020 Acquisition Subsidiary 2 | Heico Electronic Technologies Corp | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | $ 14,400 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 35,000 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 75.00% | 75.00% | |
FY 2017 Acquisition [Member] | Heico Electronic Technologies Corp | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | $ 18,300 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 20,000 | ||
Aggregate LCP Liability [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Related liabilities of deferred compensation plans, specified as other long-term liabilities | $ 212,200 | $ 178,300 |
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 | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Numerator: | ||
Net income attributable to HEICO | $ 70,596 | $ 121,888 |
Denominator: | ||
Weighted Average Number of Shares Outstanding, Basic | 135,210 | 134,523 |
Effect of dilutive stock options | 2,532 | 2,898 |
Weighted Average Number of Shares Outstanding, Diluted | 137,742 | 137,421 |
Earnings Per Share, Basic | $ 0.52 | $ 0.91 |
Earnings Per Share, Diluted | $ 0.51 | $ 0.89 |
Anti-dilutive stock options excluded | 28 | 117 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 417,902 | $ 506,275 | |
Depreciation | 6,755 | 6,800 | |
Amortization | 16,248 | 14,783 | |
Operating income | 80,285 | 110,990 | |
Capital expenditures | 15,509 | 6,850 | |
Corporate And Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | (4,982) | (3,203) |
Depreciation | [1] | 246 | 255 |
Amortization | [1] | 274 | 246 |
Operating income | [1] | (5,665) | (8,546) |
Capital expenditures | [1] | 0 | 5 |
Flight Support Group [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 199,334 | 301,067 | |
Depreciation | 3,450 | 3,617 | |
Amortization | 5,136 | 4,859 | |
Operating income | 25,822 | 62,045 | |
Capital expenditures | 1,988 | 4,118 | |
Electronic Technologies Group [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 223,550 | 208,411 | |
Depreciation | 3,059 | 2,928 | |
Amortization | 10,838 | 9,678 | |
Operating income | 60,128 | 57,491 | |
Capital expenditures | $ 13,521 | $ 2,727 | |
[1] | Intersegment activity principally consists of net sales from the ETG to the FSG. |
OPERATING SEGMENTS (Details 1)
OPERATING SEGMENTS (Details 1) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,565,584 | $ 3,547,711 |
Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 548,912 | 523,374 |
Flight Support Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,122,774 | 1,127,666 |
Electronic Technologies Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,893,898 | $ 1,896,671 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of Product Warranties [Line Items] | ||
Balances as of beginning of fiscal year | $ 3,015 | $ 2,810 |
Accruals for warranties | 175 | 1,007 |
Acquired warranty liabilities | 0 | 50 |
Warranty claims settled | (323) | (459) |
Balances as of end of period | $ 2,867 | $ 3,408 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textuals) $ in Millions | Jan. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 15.6 |