DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - $ / shares | 9 Months Ended | |
Jul. 31, 2021 | Aug. 25, 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 | Jul. 31, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Current Reporting Status | Yes | |
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | FL | |
Entity Registrant Name | HEICO CORPORATION | |
Zip Code | 33021 | |
Entity Central Index Key | 0000046619 | |
Entity Tax Identification Number | 65-0341002 | |
Address | 3000 Taft Street | |
Entity City | Hollywood | |
State | FL | |
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 | 54,228,197 | |
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 | 81,155,834 | |
Entity Common Stock Par Value | $ 0.01 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 269,816 | $ 406,852 |
Accounts receivable, net | 209,001 | 210,433 |
Contract assets | 62,400 | 60,429 |
Inventories, net | 457,172 | 463,205 |
Prepaid expenses and other current assets | 32,626 | 24,706 |
Total current assets | 1,031,015 | 1,165,625 |
Property, plant and equipment, net | 179,101 | 168,848 |
Goodwill | 1,402,876 | 1,383,167 |
Intangible assets, net | 545,800 | 579,041 |
Other assets | 302,843 | 251,030 |
Total assets | 3,461,635 | 3,547,711 |
Current liabilities: | ||
Current maturities of long-term debt | 1,493 | 1,045 |
Trade accounts payable | 80,611 | 76,237 |
Accrued expenses and other current liabilities | 179,515 | 162,232 |
Income taxes payable | 598 | 1,647 |
Total current liabilities | 262,217 | 241,161 |
Long-term debt, net of current maturities | 385,380 | 738,786 |
Deferred income taxes | 38,868 | 55,658 |
Other long-term liabilities | 330,400 | 280,291 |
Total liabilities | 1,016,865 | 1,315,896 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 224,684 | 221,208 |
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 | 315,601 | 299,930 |
Deferred compensation obligation | 4,777 | 4,886 |
HEICO stock held by irrevocable trust | (4,777) | (4,886) |
Accumulated other comprehensive loss | (3,265) | (9,149) |
Retained earnings | 1,873,239 | 1,688,045 |
Total HEICO shareholders' equity | 2,186,929 | 1,980,177 |
Noncontrolling interests | 33,157 | 30,430 |
Total shareholders' equity | 2,220,086 | 2,010,607 |
Total liabilities and equity | $ 3,461,635 | $ 3,547,711 |
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 or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 150,000 | 150,000 |
Common Stock, Shares, Issued | 54,228 | 54,195 |
Common Stock, Shares, Outstanding | 54,228 | 54,195 |
Class A Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 812 | $ 809 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 150,000 | 150,000 |
Common Stock, Shares, Issued | 81,155 | 80,923 |
Common Stock, Shares, Outstanding | 81,155 | 80,923 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] - $ / shares shares in Thousands | Jul. 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 | 54,228 | 54,195 |
Common stock, shares outstanding | 54,228 | 54,195 |
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 | 81,155 | 80,923 |
Common stock, shares outstanding | 81,155 | 80,923 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Net sales | $ 471,707 | $ 386,410 | $ 1,356,260 | $ 1,360,831 |
Operating costs and expenses: | ||||
Cost of sales | 286,990 | 242,927 | 833,336 | 840,411 |
Selling, general and administrative expenses | 83,879 | 75,049 | 245,053 | 232,835 |
Total operating costs and expenses | 370,869 | 317,976 | 1,078,389 | 1,073,246 |
Operating income | 100,838 | 68,434 | 277,871 | 287,585 |
Interest expense | (1,717) | (2,602) | (6,248) | (10,644) |
Other (expense) income | 162 | 632 | 1,179 | 934 |
Income before income taxes and noncontrolling interests | 99,283 | 66,464 | 272,802 | 277,875 |
Income tax expense | 15,600 | 8,900 | 36,400 | 9,600 |
Net income from consolidated operations | 83,683 | 57,564 | 236,402 | 268,275 |
Less: Net income attributable to noncontrolling interests | 6,794 | 3,248 | 18,244 | 16,618 |
Net income attributable to HEICO | $ 76,889 | $ 54,316 | $ 218,158 | $ 251,657 |
Net income per share attributable to HEICO shareholders: | ||||
Basic (in dollars per share) | $ 0.57 | $ 0.40 | $ 1.61 | $ 1.87 |
Diluted (in dollars per share) | $ 0.56 | $ 0.40 | $ 1.58 | $ 1.83 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 135,370 | 134,837 | 135,291 | 134,676 |
Diluted (in shares) | 137,957 | 137,234 | 137,837 | 137,257 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Net income from consolidated operations | $ 83,683 | $ 57,564 | $ 236,402 | $ 268,275 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (5,145) | 20,133 | 5,964 | 12,734 |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 33 | 21 | 101 | 60 |
Total other comprehensive income (loss) | (5,112) | 20,154 | 6,065 | 12,794 |
Comprehensive income from consolidated operations | 78,571 | 77,718 | 242,467 | 281,069 |
Less: Comprehensive income attributable to noncontrolling interests | 6,794 | 3,248 | 18,244 | 16,618 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (173) | 801 | 181 | 506 |
Comprehensive income attributable to noncontrolling interests | 6,621 | 4,049 | 18,425 | 17,124 |
Comprehensive income attributable to HEICO | $ 71,950 | $ 73,669 | $ 224,042 | $ 263,945 |
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] |
Beginning Balance at Oct. 31, 2019 | $ 541 | $ 804 | $ 284,609 | $ 4,232 | $ (4,232) | $ (16,739) | $ 1,397,327 | $ 28,118 | $ 1,694,660 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 263,945 | 12,288 | 251,657 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 17,124 | $ 12,556 | 4,568 | ||||||||
Comprehensive income | 281,069 | 268,513 | |||||||||
Cash dividends | (21,552) | (21,552) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1 | 8,575 | 8,576 | ||||||||
Share-based compensation expense | 7,775 | 7,775 | |||||||||
Proceeds from stock option exercises | 4 | 5,345 | |||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 5,341 | ||||||||||
Redemptions of common stock related to stock option exercises | (1) | (5,329) | (5,330) | ||||||||
Distributions to noncontrolling interests | (11,240) | (947) | (947) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,147 | (4,147) | (4,147) | ||||||||
Adjustments to Additional Paid in Capital, Other | 561 | ||||||||||
Stockholders' Equity, Other | (1,242) | (681) | |||||||||
Ending Balance at Jul. 31, 2020 | 542 | 807 | 301,532 | 4,232 | (4,232) | (4,451) | 1,623,285 | 30,497 | 1,952,212 | ||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2019 | 188,264 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 17,124 | 12,556 | 4,568 | ||||||||
Distributions to noncontrolling interests | (11,240) | (947) | (947) | ||||||||
Acquisitions of noncontrolling interests | (7,475) | ||||||||||
Noncontrolling interests assumed related to acquisitions | 16,471 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,147 | (4,147) | (4,147) | ||||||||
Temporary Equity, Other Changes | $ 1,416 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2020 | 204,139 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.16 | ||||||||||
Beginning Balance at Apr. 30, 2020 | 542 | 806 | 297,324 | 4,232 | (4,232) | (23,804) | 1,583,646 | 31,006 | 1,889,520 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 73,669 | 19,353 | 54,316 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 4,049 | 3,134 | 915 | ||||||||
Comprehensive income | 77,718 | 74,584 | |||||||||
Cash dividends | (10,790) | (10,790) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1 | 1,294 | 1,295 | ||||||||
Share-based compensation expense | 2,500 | 2,500 | |||||||||
Proceeds from stock option exercises | 2 | 2,953 | |||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 2,951 | ||||||||||
Redemptions of common stock related to stock option exercises | (1) | (2,762) | (2,763) | ||||||||
Distributions to noncontrolling interests | (2,263) | (182) | (182) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 3,887 | (3,887) | (3,887) | ||||||||
Adjustments to Additional Paid in Capital, Other | 225 | ||||||||||
Stockholders' Equity, Other | (1) | (1,242) | (1,018) | ||||||||
Ending Balance at Jul. 31, 2020 | 542 | 807 | 301,532 | 4,232 | (4,232) | (4,451) | 1,623,285 | 30,497 | 1,952,212 | ||
Starting Balance, Redeemable Noncontrolling Interests at Apr. 30, 2020 | 196,507 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 4,049 | 3,134 | 915 | ||||||||
Distributions to noncontrolling interests | (2,263) | (182) | (182) | ||||||||
Noncontrolling interests assumed related to acquisitions | 8,933 | (7,475) | |||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 3,887 | (3,887) | (3,887) | ||||||||
Temporary Equity, Other Changes | $ 1,416 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2020 | 204,139 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.08 | ||||||||||
Beginning 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 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 224,042 | 5,884 | 218,158 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 18,425 | 13,808 | 4,617 | ||||||||
Comprehensive income | 242,467 | 228,659 | |||||||||
Cash dividends | (23,002) | (23,002) | |||||||||
Issuance of common stock to Savings and Investment Plan | 8,216 | 8,216 | |||||||||
Share-based compensation expense | 6,354 | 6,354 | |||||||||
Proceeds from stock option exercises | 3 | 4,505 | |||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 4,502 | ||||||||||
Redemptions of common stock related to stock option exercises | (3,687) | (3,687) | |||||||||
Distributions to noncontrolling interests | (20,122) | (1,731) | (1,731) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 9,962 | (9,962) | (9,962) | ||||||||
Value of Stock Reversed During Period Deferred Compensation Obligation | 109 | ||||||||||
Value of Stock Issued or Reversed During Period for Deferred Compensation Obligation | (109) | ||||||||||
Adjustments to Additional Paid in Capital, Other | 286 | ||||||||||
Stockholders' Equity, Other | (159) | 127 | |||||||||
Ending Balance at Jul. 31, 2021 | 2,220,086 | 542 | 812 | 315,601 | 4,777 | (4,777) | (3,265) | 1,873,239 | 33,157 | 2,220,086 | |
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2020 | 221,208 | 221,208 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 18,425 | 13,808 | 4,617 | ||||||||
Distributions to noncontrolling interests | (20,122) | (1,731) | (1,731) | ||||||||
Acquisitions of noncontrolling interests | (2,336) | ||||||||||
Noncontrolling interests assumed related to acquisitions | 1,097 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 9,962 | (9,962) | (9,962) | ||||||||
Temporary Equity, Stock Issued During Period, Value, New Issues | 1,067 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2021 | $ 224,684 | 224,684 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.17 | ||||||||||
Beginning Balance at Apr. 30, 2021 | 542 | 811 | 311,995 | 4,777 | (4,777) | 1,674 | 1,812,798 | 32,070 | 2,159,890 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 71,950 | (4,939) | 76,889 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 6,621 | 4,747 | 1,874 | ||||||||
Comprehensive income | 78,571 | 73,824 | |||||||||
Cash dividends | (12,184) | (12,184) | |||||||||
Issuance of common stock to Savings and Investment Plan | 776 | 776 | |||||||||
Share-based compensation expense | 2,083 | 2,083 | |||||||||
Proceeds from stock option exercises | 1 | 667 | |||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 666 | ||||||||||
Redemptions of common stock related to stock option exercises | (63) | (63) | |||||||||
Distributions to noncontrolling interests | (7,402) | (628) | (628) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,264 | (4,264) | (4,264) | ||||||||
Adjustments to Additional Paid in Capital, Other | 144 | ||||||||||
Stockholders' Equity, Other | (159) | (15) | |||||||||
Ending Balance at Jul. 31, 2021 | 2,220,086 | $ 542 | $ 812 | $ 315,601 | $ 4,777 | $ (4,777) | $ (3,265) | 1,873,239 | 33,157 | 2,220,086 | |
Starting Balance, Redeemable Noncontrolling Interests at Apr. 30, 2021 | 223,266 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 6,621 | 4,747 | 1,874 | ||||||||
Distributions to noncontrolling interests | (7,402) | $ (628) | (628) | ||||||||
Acquisitions of noncontrolling interests | (2,336) | ||||||||||
Noncontrolling interests assumed related to acquisitions | 1,097 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,264 | $ (4,264) | $ (4,264) | ||||||||
Temporary Equity, Stock Issued During Period, Value, New Issues | 1,067 | ||||||||||
Temporary Equity, Other Changes | (19) | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2021 | $ 224,684 | $ 224,684 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED [PARENTHETICAL] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Cash dividends per share (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.17 | $ 0.16 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Operating Activities: | ||
Net income from consolidated operations | $ 236,402 | $ 268,275 |
Adjustments to reconcile net income from consolidated operations to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 68,816 | 65,218 |
Employer contributions to HEICO Savings and Investment Plan | 7,366 | 7,452 |
Share-based compensation expense | 6,354 | 7,775 |
Deferred income tax provision (benefit) | (16,957) | (9,345) |
Change in value of contingent consideration | 1,305 | 189 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Change in accounts receivable | 3,537 | 96,258 |
Change in contract assets | (1,960) | (15,968) |
Change in inventories | 7,729 | (48,077) |
Change in prepaid expenses and other current assets | (12,442) | (12,724) |
Change in trade accounts payable | 4,166 | (25,434) |
Change in accrued expenses and other current liabilities | 12,538 | (45,990) |
Change in income taxes payable | 3,202 | (2,469) |
Change in other long-term liabilities and assets related to HEICO Leadership Compensation Plan | 12,212 | 10,595 |
Other | 1,835 | 3,216 |
Net cash provided by operating activities | 334,103 | 298,971 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (29,603) | (66,320) |
Capital expenditures | (30,124) | (17,472) |
Net Investment Related to Deferred Compensation Plan | (12,400) | (14,600) |
Other | 3,237 | 385 |
Net cash used in investing activities | (68,890) | (98,007) |
Financing Activities: | ||
Payments on revolving credit facility | (355,000) | (68,000) |
Borrowings on revolving credit facility | 0 | 245,000 |
Cash dividends paid | (23,002) | (21,552) |
Distributions to noncontrolling interests | (21,853) | (12,187) |
Redemptions of common stock related to stock option exercises | (3,687) | (5,330) |
Acquisitions of noncontrolling interests | (2,336) | (7,475) |
Payments of Debt Issuance Costs | (1,468) | 0 |
Proceeds from stock option exercises | 4,505 | 5,345 |
Capital contributions from noncontrolling interests | 534 | 0 |
Other | (916) | (1,176) |
Net cash (used in) provided by financing activities | (403,223) | 134,625 |
Effect of exchange rate changes on cash | 974 | 2,688 |
Net (decrease) increase in cash and cash equivalents | (137,036) | 338,277 |
Cash and cash equivalents at beginning of year | 406,852 | 57,001 |
Cash and cash equivalents at end of period | $ 269,816 | $ 395,278 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTIn August 2021, the Company, through a subsidiary of HFSC, acquired 89% of the equity of Ridge Engineering, Inc. (“Ridge”) and The Bechdon Company, Inc. (“Bechdon”). Ridge performs tight-tolerance machining and brazing of large-sized parts in mission-critical defense and aerospace applications. Bechdon provides machining, fabrication and welding services for aerospace, defense and other industrial applications. The remaining 11% interest continues to be owned by certain members of Ridge's and Bechdon's management team. The purchase price of these acquisitions was paid in cash using cash on hand and the total consideration for the acquisitions is not material or significant to the Company's condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 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 nine months ended July 31, 2021 are not necessarily indicative of the results which may be expected for the entire fiscal year. Certain immaterial prior year amounts within the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current year presentation and resulted in no changes to total net cash provided by operating activities, net cash used in investing activities and net cash (used in) provided by financing activities. 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 nine months and third 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 as compared to pre-Pandemic levels. The Company experienced a significant improvement in operating results in the third quarter of fiscal 2021 as compared to the third quarter of fiscal 2020. The third quarter of fiscal 2020 was the quarter in which the Company’s results of operations were most negatively affected by the Pandemic’s impact. Since then, the Flight Support Group has reported four consecutive quarters of improvement in net sales and operating income resulting from signs of commercial air travel recovery. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Jul. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS In June 2021, the Company, through a subsidiary of HEICO Flight Support Corp. ("HFSC"), acquired certain assets and liabilities of Camtronics, LLC ("Camtronics"). Camtronics is a Federal Aviation Administration ("FAA")-certified Part 145 repair station with extensive proprietary FAA-designated engineering representative repairs for a variety of domestic and international commercial and cargo airlines. As a result of the transaction, HFSC has an 80.1% interest in Camtronics. Additionally, the noncontrolling interest holders of an 84% owned subsidiary of HFSC have a 9.9% interest in Camtronics and the remaining 10% interest continues to be owned by certain members of Camtronics' management team (see Note 3, Selected Financial Statement Information - Redeemable Noncontrolling Interests, for additional information). In March 2021, the Company, through HEICO Electronic, acquired all of the business, assets and certain liabilities of Pyramid Semiconductor LLC ("Pyramid"). Pyramid is a specialty semiconductor designer and manufacturer offering a well-developed line of processors, static random-access memory (SRAM), electronically erasable programmable read-only memory (EEPROM) and Logic products on a diverse array of military, space and medical platforms. The purchase price of each fiscal 2021 acquisition was paid in cash provided by operating activities, and is not material or significant to the Company's condensed consolidated financial statements. The allocation of the total consideration for the fiscal 2021 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 adjustment to such allocations to be material to the Company's consolidated financial statements. The operating results of the fiscal 2021 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 fiscal 2021 acquisitions included in the Condensed Consolidated Statement of Operations for the nine and three months ended July 31, 2021 is not material. Had the fiscal 2021 acquisitions occurred as of November 1, 2019, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for the |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 9 Months Ended |
Jul. 31, 2021 | |
Selected Financial Statement Information [Abstract] | |
Selected Financial Statement Information [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable (in thousands) July 31, 2021 October 31, 2020 Accounts receivable $220,711 $223,171 Less: Allowance for doubtful accounts (11,710) (12,738) Accounts receivable, net $209,001 $210,433 Inventories (in thousands) July 31, 2021 October 31, 2020 Finished products $216,865 $235,501 Work in process 45,304 37,957 Materials, parts, assemblies and supplies 195,003 189,747 Inventories, net of valuation reserves $457,172 $463,205 Property, Plant and Equipment (in thousands) July 31, 2021 October 31, 2020 Land $10,680 $6,678 Buildings and improvements 134,582 120,769 Machinery, equipment and tooling 276,983 265,408 Construction in progress 8,359 8,487 430,604 401,342 Less: Accumulated depreciation and amortization (251,503) (232,494) Property, plant and equipment, net $179,101 $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 $15.7 million and $15.8 million as of July 31, 2021 and October 31, 2020, respectively. The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2021 and 2020 was $2.5 million and $4.3 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended July 31, 2021 and 2020 was $.7 million and $.5 million, respectively. Research and Development Expenses The amount of new product research and development ("R&D") expenses included in cost of sales for the nine and three months ended July 31, 2021 and 2020 is as follows (in thousands): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 R&D expenses $52,179 $48,968 $17,976 $15,113 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): July 31, 2021 October 31, 2020 Redeemable at fair value $186,223 $179,415 Redeemable based on a multiple of future earnings 38,461 41,793 Redeemable noncontrolling interests $224,684 $221,208 As discussed in Note 2, Acquisitions, the Company, through a subsidiary of HEICO Flight Support Corp., acquired an 80.1% interest in Camtronics in June 2021. As part of the operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interest over a four-year period beginning in fiscal 2026, or sooner under certain conditions, and the Company has the right to purchase the same equity interest over the same period. During fiscal 2020, the holder of a 17.7% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2008 exercised their option to cause the Company to purchase a portion of their noncontrolling interest over a two-year period ending in fiscal 2021. Accordingly, the Company acquired the second half of such interest in May 2021, which increased the Company's ownership interest in the subsidiary to 90%. The $2.3 million Redemption Amount for the redeemable noncontrolling interests acquired in fiscal 2021 was paid using cash provided by operating activities. Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss for the nine months ended July 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 5,783 — 5,783 Amortization of unrealized loss — 101 101 Balances as of July 31, 2021 ($677) ($2,588) ($3,265) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Jul. 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 nine months ended July 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 Goodwill acquired 4,446 11,761 16,207 Foreign currency translation adjustments 1,481 1,840 3,321 Adjustments to goodwill 188 (7) 181 Balances as of July 31, 2021 $433,680 $969,196 $1,402,876 The goodwill acquired pertains to the fiscal 2021 acquisitions described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and intangible assets acquired and liabilities and noncontrolling interests assumed. 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. The Company estimates that all of the goodwill acquired in fiscal 2021 will be deductible for income tax purposes. Identifiable intangible assets consist of the following (in thousands): As of July 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 $440,641 ($210,848) $229,793 $443,143 ($188,919) $254,224 Intellectual property 244,651 (98,837) 145,814 240,725 (84,686) 156,039 Licenses 6,559 (4,980) 1,579 6,559 (4,670) 1,889 Patents 1,117 (784) 333 1,071 (746) 325 Non-compete agreements 721 (721) — 811 (811) — Trade names 450 (248) 202 450 (219) 231 694,139 (316,418) 377,721 692,759 (280,051) 412,708 Non-Amortizing Assets: Trade names 168,079 — 168,079 166,333 — 166,333 $862,218 ($316,418) $545,800 $859,092 ($280,051) $579,041 Amortization expense related to intangible assets for the nine months ended July 31, 2021 and 2020 was $45.5 million and $41.8 million, respectively. Amortization expense related to intangible assets for the three months ended July 31, 2021 and 2020 was $15.2 million and $14.2 million, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2021 is estimated to be $15.0 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $54.0 million in fiscal 2022, $48.3 million in fiscal 2023, $43.5 million in fiscal 2024, $39.0 million in fiscal 2025, $34.7 million in fiscal 2026, and $143.2 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): July 31, 2021 October 31, 2020 Borrowings under revolving credit facility $375,000 $730,000 Finance leases and note payable 11,873 9,831 386,873 739,831 Less: Current maturities of long-term debt (1,493) (1,045) $385,380 $738,786 The Company's borrowings under its revolving credit facility mature in fiscal 2024. As of July 31, 2021 and October 31, 2020, the weighted average interest rate on borrowings under the Company's revolving credit facility was 1.2% and 1.3%, respectively. The revolving credit facility contains both financial and non-financial covenants. As of July 31, 2021, the Company |
REVENUE
REVENUE | 9 Months Ended |
Jul. 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 Sheets. Changes in the Company’s contract assets and liabilities for the nine months ended July 31, 2021 are as follows (in thousands): July 31, 2021 October 31, 2020 Change Contract assets $62,400 $60,429 $1,971 Contract liabilities 26,693 25,631 1,062 Net contract assets $35,707 $34,798 $909 The amount of revenue that the Company recognized during the nine and three months ended July 31, 2021 that was included in contract liabilities as of the beginning of fiscal 2021 was $17.8 million and $2.9 million, respectively. Remaining Performance Obligations As of July 31, 2021, the Company had $408.7 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 $113.9 million of this amount during the remainder of fiscal 2021 and $294.8 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): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 Flight Support Group: Aftermarket replacement parts (1) $390,685 $412,088 $136,357 $102,629 Repair and overhaul parts and services (2) 147,709 154,517 54,591 32,601 Specialty products (3) 128,338 164,584 46,170 42,928 Total net sales 666,732 731,189 237,118 178,158 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 521,586 494,864 176,238 165,189 Electronic component parts for equipment in various other industries (5) 184,596 143,421 63,305 45,730 Total net sales 706,182 638,285 239,543 210,919 Intersegment sales (16,654) (8,643) (4,954) (2,667) Total consolidated net sales $1,356,260 $1,360,831 $471,707 $386,410 (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): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 Flight Support Group: Aerospace $473,470 $543,205 $175,388 $114,627 Defense and Space 162,196 157,664 51,898 53,269 Other (1) 31,066 30,320 9,832 10,262 Total net sales 666,732 731,189 237,118 178,158 Electronic Technologies Group: Defense and Space 439,488 413,883 148,035 141,282 Other (2) 210,114 167,861 72,203 55,155 Aerospace 56,580 56,541 19,305 14,482 Total net sales 706,182 638,285 239,543 210,919 Intersegment sales (16,654) (8,643) (4,954) (2,667) Total consolidated net sales $1,356,260 $1,360,831 $471,707 $386,410 (1) Principally industrial products. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXESThe Company's effective tax rate in the first nine months of fiscal 2021 was 13.3%, as compared to 3.5% in the first nine months 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. Additionally, the effective tax rate in the first nine months of fiscal 2021 reflects the favorable impact of higher tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the HEICO Corporation Leadership Compensation Plan. The Company's effective tax rate was 15.7% in the third quarter of fiscal 2021, as compared to 13.4% in the third quarter of fiscal 2020. The increase principally reflects the fact that the third quarter of fiscal 2020 reflected a larger deduction related to Foreign-Derived Intangible Income ("FDII") principally resulting from the final tax regulations issued during that quarter as part of the Tax Cuts and Jobs Act that was enacted in December 2017. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 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 July 31, 2021 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $238,544 $— $238,544 Money market funds 392 — — 392 Total assets $392 $238,544 $— $238,936 Liabilities: Contingent consideration $— $— $43,931 $43,931 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 fund 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 $238.0 million as of July 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 $21.6 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 July 31, 2021, the estimated fair value of the contingent consideration was CAD $13.5 million, or $10.8 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 July 31, 2021, the estimated fair value of the contingent consideration was $14.5 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 July 31, 2021, the estimated fair value of the contingent consideration was $18.6 million. The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of July 31, 2021 ($ in thousands): Weighted Acquisition Date Fair Value Unobservable Input Range Average (1) 8-18-2020 $10,821 Compound annual revenue growth rate 0% - 19% 7% Discount rate 4.3% - 4.6% 4.4% 8-11-2020 14,531 Compound annual revenue growth rate 4% - 16% 13% Discount rate 4.8% - 4.8% 4.8% 9-15-2017 18,579 Compound annual revenue growth rate (3%) - 10% 6% 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 nine months ended July 31, 2021 are as follows (in thousands): Liabilities Balance as of October 31, 2020 $41,974 Increase in accrued contingent consideration 1,305 Foreign currency transaction adjustments 652 Balance as of July 31, 2021 $43,931 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 July 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 | 9 Months Ended |
Jul. 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): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 Numerator: Net income attributable to HEICO $218,158 $251,657 $76,889 $54,316 Denominator: Weighted average common shares outstanding - basic 135,291 134,676 135,370 134,837 Effect of dilutive stock options 2,546 2,581 2,587 2,397 Weighted average common shares outstanding - diluted 137,837 137,257 137,957 137,234 Net income per share attributable to HEICO shareholders: Basic $1.61 $1.87 $.57 $.40 Diluted $1.58 $1.83 $.56 $.40 Anti-dilutive stock options excluded 13 272 — 250 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 9 Months Ended |
Jul. 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 nine and three months ended July 31, 2021 and 2020, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Nine months ended July 31, 2021: Net sales $666,732 $706,182 ($16,654) $1,356,260 Depreciation 10,159 9,457 728 20,344 Amortization 15,036 32,588 848 48,472 Operating income 103,357 200,419 (25,905) 277,871 Capital expenditures 5,885 23,749 490 30,124 Nine months ended July 31, 2020: Net sales $731,189 $638,285 ($8,643) $1,360,831 Depreciation 10,835 8,681 760 20,276 Amortization 14,720 29,484 738 44,942 Operating income 121,597 184,948 (18,960) 287,585 Capital expenditures 8,389 9,066 17 17,472 Three months ended July 31, 2021: Net sales $237,118 $239,543 ($4,954) $471,707 Depreciation 3,330 3,238 242 6,810 Amortization 4,929 10,871 287 16,087 Operating income 42,059 68,997 (10,218) 100,838 Capital expenditures 1,792 5,921 473 8,186 Three months ended July 31, 2020: Net sales $178,158 $210,919 ($2,667) $386,410 Depreciation 3,590 2,872 249 6,711 Amortization 5,109 9,876 246 15,231 Operating income 12,021 61,931 (5,518) 68,434 Capital expenditures 1,624 3,401 12 5,037 (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 July 31, 2021 $1,139,630 $1,893,434 $428,571 $3,461,635 Total assets as of October 31, 2020 1,127,666 1,896,671 523,374 3,547,711 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees As of July 31, 2021, the Company has arranged for standby letters of credit aggregating $16.6 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 nine months ended July 31, 2021 and 2020, respectively, are as follows (in thousands): Nine months ended July 31, 2021 2020 Balances as of beginning of fiscal year $3,015 $2,810 Accruals for warranties 1,486 1,472 Acquired warranty liabilities 33 50 Warranty claims settled (1,209) (1,259) Balances as of July 31 $3,325 $3,073 Litigation On April 20, 2021, an indirect subsidiary of HEICO Flight Support Corp., which was acquired in June 2020, received a grand jury subpoena from the United States District Court for the Southern District of California requiring the production of documents for the time period December 1, 2017 through February 4, 2019 related to the subsidiary's employment of a certain individual and its performance of work on certain Navy vessels during that time period. The Company is cooperating with the investigation and is currently gathering documents for production pursuant to the subpoena. At this early stage in the investigation, the Company cannot predict the outcome of the investigation or when the investigation will ultimately be resolved; nor can the Company reasonably estimate the possible range of loss or impact to the its business, if any, that may result from this matter. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 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 nine months ended July 31, 2021 are not necessarily indicative of the results which may be expected for the entire fiscal year. Certain immaterial prior year amounts within the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current year presentation and resulted in no changes to total net cash provided by operating activities, net cash used in investing activities and net cash (used in) provided by financing activities. 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. |
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 simplifies 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) | 9 Months Ended |
Jul. 31, 2021 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands) July 31, 2021 October 31, 2020 Accounts receivable $220,711 $223,171 Less: Allowance for doubtful accounts (11,710) (12,738) Accounts receivable, net $209,001 $210,433 |
Schedule of Inventories [Table Text Block] | Inventories (in thousands) July 31, 2021 October 31, 2020 Finished products $216,865 $235,501 Work in process 45,304 37,957 Materials, parts, assemblies and supplies 195,003 189,747 Inventories, net of valuation reserves $457,172 $463,205 |
Schedule of Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment (in thousands) July 31, 2021 October 31, 2020 Land $10,680 $6,678 Buildings and improvements 134,582 120,769 Machinery, equipment and tooling 276,983 265,408 Construction in progress 8,359 8,487 430,604 401,342 Less: Accumulated depreciation and amortization (251,503) (232,494) Property, plant and equipment, net $179,101 $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 nine and three months ended July 31, 2021 and 2020 is as follows (in thousands): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 R&D expenses $52,179 $48,968 $17,976 $15,113 |
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): July 31, 2021 October 31, 2020 Redeemable at fair value $186,223 $179,415 Redeemable based on a multiple of future earnings 38,461 41,793 Redeemable noncontrolling interests $224,684 $221,208 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive loss for the nine months ended July 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 5,783 — 5,783 Amortization of unrealized loss — 101 101 Balances as of July 31, 2021 ($677) ($2,588) ($3,265) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 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 nine months ended July 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 Goodwill acquired 4,446 11,761 16,207 Foreign currency translation adjustments 1,481 1,840 3,321 Adjustments to goodwill 188 (7) 181 Balances as of July 31, 2021 $433,680 $969,196 $1,402,876 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of July 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 $440,641 ($210,848) $229,793 $443,143 ($188,919) $254,224 Intellectual property 244,651 (98,837) 145,814 240,725 (84,686) 156,039 Licenses 6,559 (4,980) 1,579 6,559 (4,670) 1,889 Patents 1,117 (784) 333 1,071 (746) 325 Non-compete agreements 721 (721) — 811 (811) — Trade names 450 (248) 202 450 (219) 231 694,139 (316,418) 377,721 692,759 (280,051) 412,708 Non-Amortizing Assets: Trade names 168,079 — 168,079 166,333 — 166,333 $862,218 ($316,418) $545,800 $859,092 ($280,051) $579,041 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): July 31, 2021 October 31, 2020 Borrowings under revolving credit facility $375,000 $730,000 Finance leases and note payable 11,873 9,831 386,873 739,831 Less: Current maturities of long-term debt (1,493) (1,045) $385,380 $738,786 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 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 nine months ended July 31, 2021 are as follows (in thousands): July 31, 2021 October 31, 2020 Change Contract assets $62,400 $60,429 $1,971 Contract liabilities 26,693 25,631 1,062 Net contract assets $35,707 $34,798 $909 |
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): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 Flight Support Group: Aftermarket replacement parts (1) $390,685 $412,088 $136,357 $102,629 Repair and overhaul parts and services (2) 147,709 154,517 54,591 32,601 Specialty products (3) 128,338 164,584 46,170 42,928 Total net sales 666,732 731,189 237,118 178,158 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 521,586 494,864 176,238 165,189 Electronic component parts for equipment in various other industries (5) 184,596 143,421 63,305 45,730 Total net sales 706,182 638,285 239,543 210,919 Intersegment sales (16,654) (8,643) (4,954) (2,667) Total consolidated net sales $1,356,260 $1,360,831 $471,707 $386,410 (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): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 Flight Support Group: Aerospace $473,470 $543,205 $175,388 $114,627 Defense and Space 162,196 157,664 51,898 53,269 Other (1) 31,066 30,320 9,832 10,262 Total net sales 666,732 731,189 237,118 178,158 Electronic Technologies Group: Defense and Space 439,488 413,883 148,035 141,282 Other (2) 210,114 167,861 72,203 55,155 Aerospace 56,580 56,541 19,305 14,482 Total net sales 706,182 638,285 239,543 210,919 Intersegment sales (16,654) (8,643) (4,954) (2,667) Total consolidated net sales $1,356,260 $1,360,831 $471,707 $386,410 (1) Principally industrial products. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 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 July 31, 2021 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $238,544 $— $238,544 Money market funds 392 — — 392 Total assets $392 $238,544 $— $238,936 Liabilities: Contingent consideration $— $— $43,931 $43,931 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 fund 11 — — 11 Total assets $11 $180,128 $— $180,139 Liabilities: Contingent consideration $— $— $41,974 $41,974 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of July 31, 2021 ($ in thousands): Weighted Acquisition Date Fair Value Unobservable Input Range Average (1) 8-18-2020 $10,821 Compound annual revenue growth rate 0% - 19% 7% Discount rate 4.3% - 4.6% 4.4% 8-11-2020 14,531 Compound annual revenue growth rate 4% - 16% 13% Discount rate 4.8% - 4.8% 4.8% 9-15-2017 18,579 Compound annual revenue growth rate (3%) - 10% 6% 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 nine months ended July 31, 2021 are as follows (in thousands): Liabilities Balance as of October 31, 2020 $41,974 Increase in accrued contingent consideration 1,305 Foreign currency transaction adjustments 652 Balance as of July 31, 2021 $43,931 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 9 Months Ended |
Jul. 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): Nine months ended July 31, Three months ended July 31, 2021 2020 2021 2020 Numerator: Net income attributable to HEICO $218,158 $251,657 $76,889 $54,316 Denominator: Weighted average common shares outstanding - basic 135,291 134,676 135,370 134,837 Effect of dilutive stock options 2,546 2,581 2,587 2,397 Weighted average common shares outstanding - diluted 137,837 137,257 137,957 137,234 Net income per share attributable to HEICO shareholders: Basic $1.61 $1.87 $.57 $.40 Diluted $1.58 $1.83 $.56 $.40 Anti-dilutive stock options excluded 13 272 — 250 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 9 Months Ended |
Jul. 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 nine and three months ended July 31, 2021 and 2020, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Nine months ended July 31, 2021: Net sales $666,732 $706,182 ($16,654) $1,356,260 Depreciation 10,159 9,457 728 20,344 Amortization 15,036 32,588 848 48,472 Operating income 103,357 200,419 (25,905) 277,871 Capital expenditures 5,885 23,749 490 30,124 Nine months ended July 31, 2020: Net sales $731,189 $638,285 ($8,643) $1,360,831 Depreciation 10,835 8,681 760 20,276 Amortization 14,720 29,484 738 44,942 Operating income 121,597 184,948 (18,960) 287,585 Capital expenditures 8,389 9,066 17 17,472 Three months ended July 31, 2021: Net sales $237,118 $239,543 ($4,954) $471,707 Depreciation 3,330 3,238 242 6,810 Amortization 4,929 10,871 287 16,087 Operating income 42,059 68,997 (10,218) 100,838 Capital expenditures 1,792 5,921 473 8,186 Three months ended July 31, 2020: Net sales $178,158 $210,919 ($2,667) $386,410 Depreciation 3,590 2,872 249 6,711 Amortization 5,109 9,876 246 15,231 Operating income 12,021 61,931 (5,518) 68,434 Capital expenditures 1,624 3,401 12 5,037 |
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 July 31, 2021 $1,139,630 $1,893,434 $428,571 $3,461,635 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) | 9 Months Ended |
Jul. 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 nine months ended July 31, 2021 and 2020, respectively, are as follows (in thousands): Nine months ended July 31, 2021 2020 Balances as of beginning of fiscal year $3,015 $2,810 Accruals for warranties 1,486 1,472 Acquired warranty liabilities 33 50 Warranty claims settled (1,209) (1,259) Balances as of July 31 $3,325 $3,073 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Heico Flight Support Corp | Aug. 01, 2021 |
Ridge | |
Subsequent Event [Line Items] | |
Percentage of Voting Interests Acquired | 89.00% |
Name of Acquired Entity | Ridge Engineering, Inc. |
Description of Acquired Entity | Ridge performs tight-tolerance machining and brazing of large-sized parts in mission-critical defense and aerospace applications. |
Ridge | Exisiting Management | |
Subsequent Event [Line Items] | |
Ownership Percentage by Noncontrolling Owners | 11.00% |
Bechdon | |
Subsequent Event [Line Items] | |
Percentage of Voting Interests Acquired | 89.00% |
Name of Acquired Entity | The Bechdon Company, Inc. |
Description of Acquired Entity | Bechdon provides machining, fabrication and welding services for aerospace, defense and other industrial applications. |
Bechdon | Exisiting Management | |
Subsequent Event [Line Items] | |
Ownership Percentage by Noncontrolling Owners | 11.00% |
ACQUISITIONS (Details Textuals)
ACQUISITIONS (Details Textuals) | 9 Months Ended |
Jul. 31, 2021 | |
Heico Flight Support Corp | Camtronics | |
Business Acquisition [Line Items] | |
Name of Acquired Entity | Camtronics, LLC |
Description of Acquired Entity | Camtronics is a Federal Aviation Administration ("FAA")-certified Part 145 repair station with extensive proprietary FAA-designated engineering representative repairs for a variety of domestic and international commercial and cargo airlines. |
Percentage of Voting Interests Acquired | 80.10% |
Heico Flight Support Corp | Camtronics | Noncontrolling interest holders in subsidiary one | |
Business Acquisition [Line Items] | |
Ownership Percentage by Noncontrolling Owners | 9.90% |
Heico Flight Support Corp | Camtronics | Exisiting Management | |
Business Acquisition [Line Items] | |
Ownership Percentage by Noncontrolling Owners | 10.00% |
Heico Flight Support Corp | Subsidiary one | |
Business Acquisition [Line Items] | |
Percentage of Voting Interests Acquired | 84.00% |
Electronic Technologies Group [Member] | Pyramid | |
Business Acquisition [Line Items] | |
Name of Acquired Entity | Pyramid Semiconductor LLC |
Description of Acquired Entity | Pyramid is a specialty semiconductor designer and manufacturer offering a well-developed line of processors, static random-access memory (SRAM), electronically erasable programmable read-only memory (EEPROM) and Logic products on a diverse array of military, space and medical platforms. |
SELECTED FINANCIAL STATEMENT _3
SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 220,711 | $ 223,171 |
Less: Allowance for doubtful accounts | (11,710) | (12,738) |
Accounts receivable, net | $ 209,001 | $ 210,433 |
SELECTED FINANCIAL STATEMENT _4
SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Inventory [Line Items] | ||
Finished products | $ 216,865 | $ 235,501 |
Work in process | 45,304 | 37,957 |
Materials, parts, assemblies and supplies | 195,003 | 189,747 |
Inventories, net of valuation reserves | $ 457,172 | $ 463,205 |
SELECTED FINANCIAL STATEMENT _5
SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 10,680 | $ 6,678 |
Buildings and improvements | 134,582 | 120,769 |
Machinery, equipment and tooling | 276,983 | 265,408 |
Construction in progress | 8,359 | 8,487 |
Property, plant and equipment, gross | 430,604 | 401,342 |
Less: Accumulated depreciation and amortization | (251,503) | (232,494) |
Property, plant and equipment, net | $ 179,101 | $ 168,848 |
SELECTED FINANCIAL STATEMENT _6
SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Selected Financial Statement Information (Details) [Abstract] | ||||
R&D expenses | $ 17,976 | $ 15,113 | $ 52,179 | $ 48,968 |
SELECTED FINANCIAL STATEMENT _7
SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable at fair value | $ 186,223 | $ 179,415 |
Redeemable based on a multiple of future earnings | 38,461 | 41,793 |
Redeemable noncontrolling interests | $ 224,684 | $ 221,208 |
SELECTED FINANCIAL STATEMENT _8
SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | $ (9,149) | |||
Unrealized gain | 5,783 | |||
Amortization of unrealized loss on defined benefit pension plan, net of tax | $ 33 | $ 21 | 101 | $ 60 |
Ending accumulated other comprehensive loss | (3,265) | (3,265) | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | (6,460) | |||
Unrealized gain | 5,783 | |||
Ending accumulated other comprehensive loss | (677) | (677) | ||
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 | 101 | |||
Ending accumulated other comprehensive loss | $ (2,588) | $ (2,588) |
SELECTED FINANCIAL STATEMENT _9
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Selected Financial Statement Information (Details) [Abstract] | |||||
Accrued customer rebates and credits | $ 15,700 | $ 15,700 | $ 15,800 | ||
Total customer rebates and credits deducted within net sales | 700 | $ 500 | 2,500 | $ 4,300 | |
Business Acquisition [Line Items] | |||||
Acquisitions of noncontrolling interests | $ (2,336) | $ (2,336) | $ (7,475) | ||
Camtronics | Heico Flight Support Corp | |||||
Business Acquisition [Line Items] | |||||
Percentage of Voting Interests Acquired | 80.10% | 80.10% | |||
FY2008 Acquisition | Flight Support Group [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of Voting Interests Acquired | 90.00% | 90.00% | |||
Ownership Percentage by Noncontrolling Owners | 17.70% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands | 9 Months Ended |
Jul. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Opening Balance | $ 1,383,167 |
Goodwill acquired | 16,207 |
Foreign currency translation adjustments | 3,321 |
Adjustments to goodwill | 181 |
Ending Balance | 1,402,876 |
Flight Support Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 427,565 |
Goodwill acquired | 4,446 |
Foreign currency translation adjustments | 1,481 |
Adjustments to goodwill | 188 |
Ending Balance | 433,680 |
Electronic Technologies Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 955,602 |
Goodwill acquired | 11,761 |
Foreign currency translation adjustments | 1,840 |
Adjustments to goodwill | (7) |
Ending Balance | $ 969,196 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 694,139 | $ 692,759 |
Accumulated Amortization | (316,418) | (280,051) |
Net Carrying Amount | 377,721 | 412,708 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Asset Gross Carrying Amount | 862,218 | 859,092 |
Intangible Asset Net Carrying Amount | 545,800 | 579,041 |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 168,079 | 166,333 |
Net Carrying Amount | 168,079 | 166,333 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 440,641 | 443,143 |
Accumulated Amortization | (210,848) | (188,919) |
Net Carrying Amount | 229,793 | 254,224 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 244,651 | 240,725 |
Accumulated Amortization | (98,837) | (84,686) |
Net Carrying Amount | 145,814 | 156,039 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 6,559 | 6,559 |
Accumulated Amortization | (4,980) | (4,670) |
Net Carrying Amount | 1,579 | 1,889 |
Patents [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1,117 | 1,071 |
Accumulated Amortization | (784) | (746) |
Net Carrying Amount | 333 | 325 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 721 | 811 |
Accumulated Amortization | (721) | (811) |
Net Carrying Amount | 0 | 0 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 450 | 450 |
Accumulated Amortization | (248) | (219) |
Net Carrying Amount | $ 202 | $ 231 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 15,200 | $ 14,200 | $ 45,500 | $ 41,800 |
Estimated Amortization Expense, remainder of fiscal year | 15,000 | 15,000 | ||
Estimated Amortization Expense, for fiscal 2022 | 54,000 | 54,000 | ||
Estimated Amortization Expense, for fiscal 2023 | 48,300 | 48,300 | ||
Estimated Amortization Expense, for fiscal 2024 | 43,500 | 43,500 | ||
Estimated Amortization Expense, for fiscal 2025 | 39,000 | 39,000 | ||
Estimated Amortization Expense, for fiscal 2026 | 34,700 | 34,700 | ||
Estimated Amortization Expense, thereafter | $ 143,200 | $ 143,200 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Borrowings under revolving credit facility | $ 375,000 | $ 730,000 |
Finance leases and note payable | 11,873 | 9,831 |
Total debt and capital leases | 386,873 | 739,831 |
Current maturities of long-term debt | (1,493) | (1,045) |
Long-term debt, net of current maturities | $ 385,380 | $ 738,786 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) | Jul. 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 | 9 Months Ended | |
Jul. 31, 2021 | Oct. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Contract assets | $ 62,400 | $ 60,429 |
Contract liabilities | 26,693 | 25,631 |
Net contract assets | 35,707 | $ 34,798 |
Change in Contract Assets | 1,971 | |
Change in Contract Liabilities | 1,062 | |
Change in Net Contract Assets | $ 909 |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue, by Product Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 471,707 | $ 386,410 | $ 1,356,260 | $ 1,360,831 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 237,118 | 178,158 | 666,732 | 731,189 | |
Flight Support Group [Member] | Aftermarket Replacement Parts [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 136,357 | 102,629 | 390,685 | 412,088 |
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] | 54,591 | 32,601 | 147,709 | 154,517 |
Flight Support Group [Member] | Specialty Products [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [3] | 46,170 | 42,928 | 128,338 | 164,584 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 239,543 | 210,919 | 706,182 | 638,285 | |
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] | 176,238 | 165,189 | 521,586 | 494,864 |
Electronic Technologies Group [Member] | Other Electronic Components [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [5] | 63,305 | 45,730 | 184,596 | 143,421 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (4,954) | $ (2,667) | $ (16,654) | $ (8,643) | |
[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 | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 471,707 | $ 386,410 | $ 1,356,260 | $ 1,360,831 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 237,118 | 178,158 | 666,732 | 731,189 | |
Flight Support Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 175,388 | 114,627 | 473,470 | 543,205 | |
Flight Support Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 51,898 | 53,269 | 162,196 | 157,664 | |
Flight Support Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 9,832 | 10,262 | 31,066 | 30,320 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 239,543 | 210,919 | 706,182 | 638,285 | |
Electronic Technologies Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 19,305 | 14,482 | 56,580 | 56,541 | |
Electronic Technologies Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 148,035 | 141,282 | 439,488 | 413,883 | |
Electronic Technologies Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 72,203 | 55,155 | 210,114 | 167,861 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (4,954) | $ (2,667) | $ (16,654) | $ (8,643) | |
[1] | Principally industrial products. | ||||
[2] | Principally other electronics and medical products. |
REVENUE (Details Textuals)
REVENUE (Details Textuals) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jul. 31, 2021USD ($) | Jul. 31, 2021USD ($) | |
REVENUE [Abstract] | ||
Contract with Customer, Liability, Revenue Recognized | $ 2,900 | $ 17,800 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 408,700 | $ 408,700 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-02 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 113,900 | $ 113,900 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | 3 months |
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, Amount | $ 294,800 | $ 294,800 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months 1 day | 3 months 1 day |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2021 | Jan. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, Percent | 15.70% | 13.40% | 13.30% | 3.50% | ||
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 | Jul. 31, 2021 | Oct. 31, 2020 |
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 238,936 | $ 180,139 |
Liabilities: | ||
Contingent consideration | 43,931 | 41,974 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 392 | 11 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 238,544 | 180,128 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Contingent consideration | 43,931 | 41,974 |
Corporate Owned Life Insurance [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 238,544 | 180,128 |
Corporate Owned Life Insurance [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 238,544 | 180,128 |
Money Market Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 392 | 11 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 392 | $ 11 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | Jul. 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 | $ 43,931 | $ 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 | 10,821 | ||
FY2020 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 14,531 | ||
FY 2017 Acquisition [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 18,579 | ||
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] | 0.07 | |
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] | 0.13 | |
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 | 0.16 | ||
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] | 0.06 | |
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 | 0.046 | ||
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] | 0.048 | |
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 | 0.048 | ||
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 | 0.048 | ||
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 | 9 Months Ended |
Jul. 31, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening balance, Liabilities | $ 41,974 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 1,305 |
Ending balance, Liabilities | 43,931 |
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) | $ 652 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, $ in Thousands | Jul. 31, 2021USD ($) | Jul. 31, 2021CAD ($) | Oct. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities | $ 43,931 | $ 41,974 | |
FY2020 Acquisition Subsidiary 1 | Heico Electronic Technologies Corp | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of Voting Interests Acquired | 89.99% | 89.99% | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 21,600 | ||
Total liabilities | $ 10,800 | ||
FY2020 Acquisition Subsidiary 1 | Heico Electronic Technologies Corp | Canada, Dollars | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 27,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 13,500 | ||
Total liabilities | $ 13,500 | ||
FY2020 Acquisition Subsidiary 2 | Heico Electronic Technologies Corp | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of Voting Interests Acquired | 75.00% | 75.00% | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 35,000 | ||
Total liabilities | 14,500 | ||
FY 2017 Acquisition [Member] | Heico Electronic Technologies Corp | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 20,000 | ||
Total liabilities | 18,600 | ||
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 | $ 238,000 | $ 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 | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Numerator: | ||||
Net income attributable to HEICO | $ 76,889 | $ 54,316 | $ 218,158 | $ 251,657 |
Denominator: | ||||
Weighted Average Number of Shares Outstanding, Basic | 135,370 | 134,837 | 135,291 | 134,676 |
Effect of dilutive stock options | 2,587 | 2,397 | 2,546 | 2,581 |
Weighted Average Number of Shares Outstanding, Diluted | 137,957 | 137,234 | 137,837 | 137,257 |
Earnings Per Share, Basic | $ 0.57 | $ 0.40 | $ 1.61 | $ 1.87 |
Earnings Per Share, Diluted | $ 0.56 | $ 0.40 | $ 1.58 | $ 1.83 |
Anti-dilutive stock options excluded | 0 | 250 | 13 | 272 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 471,707 | $ 386,410 | $ 1,356,260 | $ 1,360,831 | |
Depreciation | 6,810 | 6,711 | 20,344 | 20,276 | |
Amortization | 16,087 | 15,231 | 48,472 | 44,942 | |
Operating Income (Loss) | 100,838 | 68,434 | 277,871 | 287,585 | |
Capital expenditures | 8,186 | 5,037 | 30,124 | 17,472 | |
Corporate And Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | (4,954) | (2,667) | (16,654) | (8,643) |
Depreciation | [1] | 242 | 249 | 728 | 760 |
Amortization | [1] | 287 | 246 | 848 | 738 |
Operating Income (Loss) | [1] | (10,218) | (5,518) | (25,905) | (18,960) |
Capital expenditures | [1] | 473 | 12 | 490 | 17 |
Flight Support Group [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 237,118 | 178,158 | 666,732 | 731,189 | |
Depreciation | 3,330 | 3,590 | 10,159 | 10,835 | |
Amortization | 4,929 | 5,109 | 15,036 | 14,720 | |
Operating Income (Loss) | 42,059 | 12,021 | 103,357 | 121,597 | |
Capital expenditures | 1,792 | 1,624 | 5,885 | 8,389 | |
Electronic Technologies Group [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 239,543 | 210,919 | 706,182 | 638,285 | |
Depreciation | 3,238 | 2,872 | 9,457 | 8,681 | |
Amortization | 10,871 | 9,876 | 32,588 | 29,484 | |
Operating Income (Loss) | 68,997 | 61,931 | 200,419 | 184,948 | |
Capital expenditures | $ 5,921 | $ 3,401 | $ 23,749 | $ 9,066 | |
[1] | Intersegment activity principally consists of net sales from the ETG to the FSG |
OPERATING SEGMENTS (Assets) (De
OPERATING SEGMENTS (Assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,461,635 | $ 3,547,711 |
Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 428,571 | 523,374 |
Flight Support Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,139,630 | 1,127,666 |
Electronic Technologies Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,893,434 | $ 1,896,671 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Schedule of Product Warranties [Line Items] | ||
Balances as of beginning of fiscal year | $ 3,015 | $ 2,810 |
Accruals for warranties | 1,486 | 1,472 |
Acquired warranty liabilities | 33 | 50 |
Warranty claims settled | (1,209) | (1,259) |
Balances as of end of period | $ 3,325 | $ 3,073 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textuals) $ in Millions | Jul. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 16.6 |