DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - $ / shares | 9 Months Ended | |
Jul. 31, 2022 | Aug. 29, 2022 | |
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, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
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 | 54,511,139 | |
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 | 82,080,524 | |
Entity Common Stock Par Value | $ 0.01 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 133,605 | $ 108,298 |
Accounts receivable, net | 273,151 | 244,919 |
Contract assets | 86,534 | 80,073 |
Inventories, net | 545,943 | 478,050 |
Prepaid expenses and other current assets | 42,540 | 26,045 |
Total current assets | 1,081,773 | 937,385 |
Property, plant and equipment, net | 202,844 | 193,638 |
Goodwill | 1,541,477 | 1,450,395 |
Intangible assets, net | 638,550 | 582,307 |
Other assets | 322,707 | 334,682 |
Total assets | 3,787,351 | 3,498,407 |
Current liabilities: | ||
Current maturities of long-term debt | 1,734 | 1,515 |
Trade accounts payable | 108,441 | 85,544 |
Accrued expenses and other current liabilities | 233,812 | 206,857 |
Income taxes payable | 2,458 | 964 |
Total current liabilities | 346,445 | 294,880 |
Long-term debt, net of current maturities | 244,023 | 234,983 |
Deferred income taxes | 48,192 | 40,761 |
Other long-term liabilities | 359,713 | 378,257 |
Total liabilities | 998,373 | 948,881 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 296,994 | 252,587 |
Shareholders' equity: | ||
Preferred Stock, $.01 par value per share; 10,000 shares authorized; none issued | 0 | 0 |
Capital in excess of par value | 317,365 | 320,747 |
Deferred compensation obligation | 5,297 | 5,297 |
HEICO stock held by irrevocable trust | (5,297) | (5,297) |
Accumulated other comprehensive loss | (37,927) | (8,552) |
Retained earnings | 2,171,333 | 1,949,521 |
Total HEICO shareholders' equity | 2,452,131 | 2,263,071 |
Noncontrolling interests | 39,853 | 33,868 |
Total shareholders' equity | 2,491,984 | 2,296,939 |
Total liabilities and equity | $ 3,787,351 | $ 3,498,407 |
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 | 54,511 | 54,264 |
Common Stock, Shares, Outstanding | 54,511 | 54,264 |
Class A Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 815 | $ 812 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 150,000 | 150,000 |
Common Stock, Shares, Issued | 81,491 | 81,224 |
Common Stock, Shares, Outstanding | 81,491 | 81,224 |
Heico Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 545 | $ 543 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] - $ / shares shares in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
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 | 54,511 | 54,264 |
Common stock, shares outstanding | 54,511 | 54,264 |
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 | 81,491 | 81,224 |
Common stock, shares outstanding | 81,491 | 81,224 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net sales | $ 569,528 | $ 471,707 | $ 1,598,684 | $ 1,356,260 |
Operating costs and expenses: | ||||
Cost of sales | 348,591 | 286,990 | 976,308 | 833,336 |
Selling, general and administrative expenses | 92,190 | 83,879 | 272,030 | 245,053 |
Total operating costs and expenses | 440,781 | 370,869 | 1,248,338 | 1,078,389 |
Operating income | 128,747 | 100,838 | 350,346 | 277,871 |
Interest expense | (1,406) | (1,717) | (3,181) | (6,248) |
Other (expense) income | 145 | 162 | 685 | 1,179 |
Income before income taxes and noncontrolling interests | 127,486 | 99,283 | 347,850 | 272,802 |
Income tax expense | 34,400 | 15,600 | 67,400 | 36,400 |
Net income from consolidated operations | 93,086 | 83,683 | 280,450 | 236,402 |
Less: Net income attributable to noncontrolling interests | 10,546 | 6,794 | 25,979 | 18,244 |
Net income attributable to HEICO | $ 82,540 | $ 76,889 | $ 254,471 | $ 218,158 |
Net income per share attributable to HEICO shareholders: | ||||
Basic (in dollars per share) | $ 0.61 | $ 0.57 | $ 1.87 | $ 1.61 |
Diluted (in dollars per share) | $ 0.60 | $ 0.56 | $ 1.85 | $ 1.58 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 135,978 | 135,370 | 135,835 | 135,291 |
Diluted (in shares) | 137,837 | 137,957 | 137,890 | 137,837 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net income from consolidated operations | $ 93,086 | $ 83,683 | $ 280,450 | $ 236,402 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (7,744) | (5,145) | (30,772) | 5,964 |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 16 | 33 | 49 | 101 |
Total other comprehensive income (loss) | (7,728) | (5,112) | (30,723) | 6,065 |
Comprehensive income from consolidated operations | 85,358 | 78,571 | 249,727 | 242,467 |
Less: Comprehensive income attributable to noncontrolling interests | 10,546 | 6,794 | 25,979 | 18,244 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (355) | (173) | (1,348) | 181 |
Comprehensive income attributable to noncontrolling interests | 10,191 | 6,621 | 24,631 | 18,425 |
Comprehensive income attributable to HEICO | $ 75,167 | $ 71,950 | $ 225,096 | $ 224,042 |
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, 2020 | $ 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 | ||||||||||
Stock Redeemed or Called During Period, Value | (3,687) | (3,687) | |||||||||
Distributions to noncontrolling interests | (20,122) | (1,731) | (1,731) | ||||||||
Value of Stock Issued or Reversed During Period for Deferred Compensation Obligation | (109) | ||||||||||
Value of Stock Reversed During Period Deferred Compensation Obligation | 109 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 9,962 | (9,962) | (9,962) | ||||||||
Adjustments to Additional Paid in Capital, Other | 286 | ||||||||||
Stockholders' Equity, Other | (159) | 127 | |||||||||
Ending Balance at Jul. 31, 2021 | 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 | ||||||||||
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) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (2,336) | ||||||||||
Noncontrolling Interest, Increase from Business Combination | 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 | ||||||||||
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 | ||||||||||
Stock Redeemed or Called During Period, Value | (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 | 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) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (2,336) | ||||||||||
Noncontrolling Interest, Increase from Business Combination | 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 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | ||||||||||
Beginning Balance at Oct. 31, 2021 | $ 2,296,939 | 543 | 812 | 320,747 | 5,297 | (5,297) | (8,552) | 1,949,521 | 33,868 | 2,296,939 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 225,096 | (29,375) | 254,471 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 24,631 | 17,639 | 6,992 | ||||||||
Comprehensive income | 249,727 | 232,088 | |||||||||
Cash dividends | (24,466) | (24,466) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1 | 9,497 | 9,498 | ||||||||
Share-based compensation expense | 9,815 | 9,815 | |||||||||
Proceeds from stock option exercises | 3 | 3 | 1,870 | ||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 1,864 | ||||||||||
Stock Redeemed or Called During Period, Value | (1) | (1) | (25,824) | (25,826) | |||||||
Distributions to noncontrolling interests | (15,759) | (1,007) | (1,007) | ||||||||
Increase to APIC from Purchase of Noncontrolling Interests and Net Assets | 3,415 | 3,415 | |||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 8,194 | (8,194) | (8,194) | ||||||||
Adjustments to Additional Paid in Capital, Other | (2,149) | ||||||||||
Stockholders' Equity, Other | 1 | (2,148) | |||||||||
Ending Balance at Jul. 31, 2022 | 2,491,984 | 545 | 815 | 317,365 | 5,297 | (5,297) | (37,927) | 2,171,333 | 39,853 | 2,491,984 | |
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2021 | 252,587 | 252,587 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 24,631 | 17,639 | 6,992 | ||||||||
Distributions to noncontrolling interests | (15,759) | (1,007) | (1,007) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (12,150) | ||||||||||
Noncontrolling Interest, Increase from Business Combination | 42,719 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 8,194 | (8,194) | (8,194) | ||||||||
Temporary Equity, Other Changes | 3,764 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2022 | $ 296,994 | 296,994 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.18 | ||||||||||
Beginning Balance at Apr. 30, 2022 | 545 | 814 | 311,053 | 5,297 | (5,297) | (30,554) | 2,100,178 | 38,438 | 2,420,474 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 75,167 | (7,373) | 82,540 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 10,191 | 8,377 | 1,814 | ||||||||
Comprehensive income | 85,358 | 76,981 | |||||||||
Cash dividends | (12,239) | (12,239) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1 | 1,758 | 1,759 | ||||||||
Share-based compensation expense | 2,960 | 2,960 | |||||||||
Proceeds from stock option exercises | 260 | ||||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 260 | ||||||||||
Stock Redeemed or Called During Period, Value | (2,134) | (2,134) | |||||||||
Distributions to noncontrolling interests | (5,791) | (399) | (399) | ||||||||
Increase to APIC from Purchase of Noncontrolling Interests and Net Assets | 3,415 | 3,415 | |||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (853) | 853 | 853 | ||||||||
Adjustments to Additional Paid in Capital, Other | 53 | ||||||||||
Stockholders' Equity, Other | 1 | 54 | |||||||||
Ending Balance at Jul. 31, 2022 | 2,491,984 | $ 545 | $ 815 | $ 317,365 | $ 5,297 | $ (5,297) | $ (37,927) | 2,171,333 | 39,853 | 2,491,984 | |
Starting Balance, Redeemable Noncontrolling Interests at Apr. 30, 2022 | 303,927 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 10,191 | 8,377 | 1,814 | ||||||||
Distributions to noncontrolling interests | (5,791) | $ (399) | (399) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (12,150) | ||||||||||
Noncontrolling Interest, Increase from Business Combination | 3,484 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (853) | $ 853 | $ 853 | ||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2022 | $ 296,994 | $ 296,994 | |||||||||
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, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Cash dividends per share (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.17 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net income from consolidated operations | $ 280,450 | $ 236,402 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation, Depletion and Amortization | 70,526 | 68,816 |
Stock or Unit Option Plan Expense | 9,815 | 6,354 |
Employer contributions to HEICO Savings and Investment Plan | 8,884 | 7,366 |
Deferred income tax provision (benefit) | 7,858 | (16,957) |
Change in value of contingent consideration | (4,253) | 1,305 |
Increase (Decrease) in Operating Capital [Abstract] | ||
Increase (Decrease) in Receivables | (18,445) | 3,537 |
Change in contract assets | (4,022) | (1,960) |
Increase (Decrease) in Inventories | (61,190) | 7,729 |
Increase (Decrease) in Prepaid Expense and Other Assets | (11,701) | (12,442) |
Change in trade accounts payable | 18,959 | 4,166 |
Change in accrued expenses and other current liabilities | 12,963 | 12,538 |
Increase (Decrease) in Income Taxes Payable | (2,405) | 3,202 |
Change in other long-term liabilities and assets related to HEICO Leadership Compensation Plan | 13,735 | 12,212 |
Other Noncash Income (Expense) | 2,736 | 1,835 |
Net cash provided by operating activities | 323,910 | 334,103 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Proceeds from Long-term Lines of Credit | 162,000 | |
Repayments of Long-Term Lines of Credit | (157,000) | (355,000) |
Common Stock Issued Repurchased and Retired Related To Stock Option Exercises | (25,826) | (3,687) |
Payments of Ordinary Dividends, Common Stock | (24,466) | (23,002) |
Payments of Ordinary Dividends, Noncontrolling Interest | (16,766) | (21,853) |
Payments to Noncontrolling Interests | (8,735) | (2,336) |
Payments of Debt Issuance Costs | (1,010) | (1,468) |
Proceeds from Stock Options Exercised | 1,870 | 4,505 |
Proceeds from Noncontrolling Interests | 534 | |
Proceeds from (Payments for) Other Financing Activities | (157) | (916) |
Net cash (used in) provided by financing activities | (70,090) | (403,223) |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Payments to Acquire Businesses, Net of Cash Acquired | (175,298) | (29,603) |
Payments to Acquire Property, Plant, and Equipment | (24,357) | (30,124) |
Net Investment Related to Deferred Compensation Plan | (13,400) | (12,400) |
Payments for (Proceeds from) Other Investing Activities | (10,296) | 3,237 |
Net cash used in investing activities | (223,351) | (68,890) |
Effect of exchange rate changes on cash | (5,162) | 974 |
Net (decrease) increase in cash and cash equivalents | 25,307 | (137,036) |
Cash and cash equivalents at beginning of year | 108,298 | 406,852 |
Cash and cash equivalents at end of period | $ 133,605 | $ 269,816 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2022 | |
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, 2021. The October 31, 2021 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, 2022 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. ("HFSC") 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 fiscal 2022 continue to reflect the adverse impact from the COVID-19 global pandemic (the “Pandemic”), including its impact on the Company’s supply chain. Despite the aforementioned, the Company experienced continued improvement in operating results in the first nine months and third quarter of fiscal 2022 as compared to the first nine months and third quarter of fiscal 2021 principally reflecting improved demand for its commercial aerospace products. The Flight Support Group has reported eight consecutive quarters of improvement in net sales and operating income resulting from signs of commercial air travel recovery in certain domestic travel markets, moderated by a slower recovery in international travel markets. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Jul. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS In July 2022, the Company, through a subsidiary of HFSC, acquired 96% of the stock of Accurate Metal Machining, Inc. ("Accurate"). Accurate is a manufacturer of high-reliability components and assemblies. The remaining 4% interest continues to be owned by certain members of Accurate’s management team (see Note 3, Selected Financial Statement Information - Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual of $13.1 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Accurate meet certain earnings objectives following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. The purchase price of this acquisition was paid in cash, principally using proceeds from the Company's revolving credit facility. In March 2022, the Company, through a subsidiary of HFSC, acquired 74% of the membership interests of Pioneer Industries, LLC ("Pioneer"). Pioneer is a specialty distributor of spares for military aviation, marine, and ground platforms. The remaining 26% interest continues to be owned by certain members of Pioneer's management team (see Note 3, Selected Financial Statement Information - Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual of $9.8 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Pioneer meet a certain earnings objective following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. The purchase price of this acquisition was paid in cash, principally using proceeds from the Company's revolving credit facility. In March 2022, the Company, through a subsidiary of HEICO Electronic, acquired 100% of the stock of Flight Microwave Corporation ("Flight Microwave"). Flight Microwave is a designer and manufacturer of custom high power filters and filter assemblies used in space and defense applications. The purchase price of this acquisition was paid in cash using cash provided by operating activities. The individual purchase price of Accurate, Pioneer and Flight Microwave is not material or significant to the Company's condensed consolidated financial statements. The allocation of the total consideration for the fiscal 2022 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 2022 acquisitions were included in the Company’s results of operations as of each effective acquisition date. The amount of net sales and earnings of the fiscal 2022 acquisitions included in the Condensed Consolidated Statements of Operations for the nine and three months ended July 31, 2022 is not material. Had the fiscal 2022 acquisitions occurred as of November 1, 2020, net sales and net income from consolidated operations on a pro forma basis for the nine and three months ended July 31, 2022 would not have been materially different than the reported amounts, and net sales on a pro forma basis for the nine and three months ended July 31, 2021 would have been $1,448.0 million and $504.1 million, respectively, and net income from consolidated operations on a pro forma basis for the nine and three months ended July 31, 2021 would have been $248.5 million and $88.1 million, respectively. Had the fiscal 2022 acquisitions occurred as of November 1, 2020, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for the nine and three months ended July 31, 2022 and 2021 would not have been materially different than the reported amounts. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisitions had taken place as of November 1, 2020. The unaudited pro forma financial information includes adjustments to historical amounts such as additional amortization expense related to the intangible assets acquired and increased interest expense associated with borrowings to finance the acquisitions. |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 9 Months Ended |
Jul. 31, 2022 | |
Selected Financial Statement Information [Abstract] | |
Selected Financial Statement Information [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable (in thousands) July 31, 2022 October 31, 2021 Accounts receivable $282,693 $255,793 Less: Allowance for doubtful accounts (9,542) (10,874) Accounts receivable, net $273,151 $244,919 Inventories (in thousands) July 31, 2022 October 31, 2021 Finished products $267,839 $238,867 Work in process 58,738 44,887 Materials, parts, assemblies and supplies 219,366 194,296 Inventories, net of valuation reserves $545,943 $478,050 Property, Plant and Equipment (in thousands) July 31, 2022 October 31, 2021 Land $11,200 $11,363 Buildings and improvements 139,777 134,150 Machinery, equipment and tooling 311,102 297,297 Construction in progress 13,320 7,784 475,399 450,594 Less: Accumulated depreciation and amortization (272,555) (256,956) Property, plant and equipment, net $202,844 $193,638 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 $17.5 million as of July 31, 2022 and $13.2 million as of October 31, 2021. The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2022 and 2021 was $5.9 million and $2.5 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended July 31, 2022 and 2021 was $2.2 million and $.7 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, 2022 and 2021 is as follows (in thousands): Nine months ended July 31, Three months ended July 31, 2022 2021 2022 2021 R&D expenses $55,804 $52,179 $18,657 $17,976 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 2032. 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, 2022 October 31, 2021 Redeemable at fair value $274,854 $217,416 Redeemable based on a multiple of future earnings 22,140 35,171 Redeemable noncontrolling interests $296,994 $252,587 As discussed in Note 2, Acquisitions, the Company, through a subsidiary of HFSC, acquired 96% of the stock of Accurate in July 2022. As part of the operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their membership interest over a four-year period beginning in fiscal 2029, or sooner under certain conditions, and the Company has the right to purchase the same membership interest over the same period. As discussed in Note 2, Acquisitions, the Company, through a subsidiary of HFSC, acquired 74% of the membership interests of Pioneer in March 2022. As part of the operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their membership interest over a four-year period beginning in fiscal 2029, or sooner under certain conditions, and the Company has the right to purchase the same membership interest over the same period. During fiscal 2022, the holder of a 19.9% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2017 exercised its option to cause the Company to purchase one-half of the noncontrolling interest in fiscal 2022 and the remaining one-half in fiscal 2024. Accordingly, the Company acquired an additional 9.95% equity interest in May 2022, which increased the Company's ownership interest in the subsidiary to 90.05%. During fiscal 2022, the Company sold a 3% equity interest in a subsidiary of the FSG that was acquired in fiscal 2015, which decreased the Company's ownership interest in the subsidiary to 82%. As part of the operating agreement, the noncontrolling interest holder has the right to cause the Company to purchase one-fifth of its equity interest beginning in fiscal 2028, or sooner under certain conditions, and each remaining one-fifth equity interest following the first anniversary of the most recent put option exercise. The Company has the right to purchase the same equity interest over the same period. During fiscal 2022, the Company sold 10% of the membership interests of a subsidiary of the FSG that was acquired in fiscal 2018, which decreased the Company's ownership interest in the subsidiary to 90%. As part of the operating agreement, the noncontrolling interest holder has the right to cause the Company to purchase its membership interest over a four-year period beginning in fiscal 2027, or sooner under certain conditions, and the Company has the right to purchase the same membership interest over the same period. Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss for the nine months ended July 31, 2022 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2021 ($6,989) ($1,563) ($8,552) Unrealized loss (29,424) — (29,424) Amortization of unrealized loss — 49 49 Balances as of July 31, 2022 ($36,413) ($1,514) ($37,927) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2021 $468,288 $982,107 $1,450,395 Goodwill acquired 107,265 2,652 109,917 Foreign currency translation adjustments (5,288) (6,527) (11,815) Adjustments to goodwill (6,911) (109) (7,020) Balances as of July 31, 2022 $563,354 $978,123 $1,541,477 The goodwill acquired pertains to the fiscal 2022 acquisitions described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Condensed Consolidated Statements of Comprehensive Income. The adjustments to goodwill principally reflect a measurement period adjustment of the write-up to fair value of property, plant and equipment associated with a fiscal 2021 acquisition. The Company estimates that $108 million of the goodwill acquired in fiscal 2022 will be deductible for income tax purposes. Identifiable intangible assets consist of the following (in thousands): As of July 31, 2022 As of October 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $480,195 ($197,070) $283,125 $464,506 ($221,098) $243,408 Intellectual property 263,382 (106,013) 157,369 255,011 (94,313) 160,698 Licenses 6,559 (5,344) 1,215 6,559 (5,072) 1,487 Patents 1,109 (801) 308 1,110 (793) 317 Non-compete agreements 641 (641) — 722 (722) — Trade names 300 (133) 167 450 (257) 193 752,186 (310,002) 442,184 728,358 (322,255) 406,103 Non-Amortizing Assets: Trade names 196,366 — 196,366 176,204 — 176,204 $948,552 ($310,002) $638,550 $904,562 ($322,255) $582,307 Amortization expense related to intangible assets for the nine months ended July 31, 2022 and 2021 was $45.4 million and $45.5 million, respectively. Amortization expense related to intangible assets for the three months ended July 31, 2022 and 2021 was $15.2 million. Amortization expense related to intangible assets for the remainder of fiscal 2022 is estimated to be $15.5 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $58.3 million in fiscal 2023, $53.3 million in fiscal 2024, $48.9 million in fiscal 2025, $44.4 million in fiscal 2026, $41.5 million in fiscal 2027, and $180.3 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): July 31, 2022 October 31, 2021 Borrowings under revolving credit facility $230,000 $225,000 Finance leases and notes payable 15,757 11,498 245,757 236,498 Less: Current maturities of long-term debt (1,734) (1,515) $244,023 $234,983 The Company's borrowings under its revolving credit facility mature in fiscal 2025 as discussed further below. As of July 31, 2022 and October 31, 2021, the weighted average interest rate on borrowings under the Company's revolving credit facility was 3.3% and 1.1%, respectively. The revolving credit facility contains both financial and non-financial covenants. As of July 31, 2022, the Company was in compliance with all such covenants. On April 7, 2022, the Company entered into an amendment to extend the maturity date of its Revolving Credit Facility Agreement ("Credit Facility") by one year to November 2024 and to replace the Eurocurrency Rate with Adjusted Term SOFR as an election in which borrowings under the Credit Facility accrue interest, as such capitalized terms are defined in the Credit Facility. |
REVENUE
REVENUE | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 are as follows (in thousands): July 31, 2022 October 31, 2021 Change Contract assets $86,534 $80,073 $6,461 Contract liabilities 58,366 32,738 25,628 Net contract assets $28,168 $47,335 ($19,167) The increase in the Company's contract liabilities during the first nine months of fiscal 2022 principally reflects the receipt of advance deposits on certain customer contracts at both the ETG and FSG. The amount of revenue that the Company recognized during the nine and three months ended July 31, 2022 that was included in contract liabilities as of the beginning of fiscal 2022 was $22.7 million and $3.1 million, respectively. Remaining Performance Obligations As of July 31, 2022, the Company had $451.3 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 product line. The Company will recognize net sales as these obligations are satisfied. The Company expects to recognize $123.8 million of this amount during the remainder of fiscal 2022 and $327.5 million thereafter, of which the majority is expected to occur in fiscal 2023. 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, 2022 2021 2022 2021 Flight Support Group: Aftermarket replacement parts (1) $512,335 $390,685 $187,453 $136,357 Repair and overhaul parts and services (2) 193,973 147,709 66,440 54,591 Specialty products (3) 202,945 128,338 76,366 46,170 Total net sales 909,253 666,732 330,259 237,118 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 485,780 521,586 165,871 176,238 Electronic component parts for equipment in various other industries (5) 218,152 184,596 78,332 63,305 Total net sales 703,932 706,182 244,203 239,543 Intersegment sales (14,501) (16,654) (4,934) (4,954) Total consolidated net sales $1,598,684 $1,356,260 $569,528 $471,707 (1) Includes primarily 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 as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers. (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, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, 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 frequency 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, 2022 2021 2022 2021 Flight Support Group: Aerospace $637,282 $473,470 $219,558 $175,388 Defense and Space 231,014 162,196 94,756 51,898 Other (1) 40,957 31,066 15,945 9,832 Total net sales 909,253 666,732 330,259 237,118 Electronic Technologies Group: Defense and Space 402,639 439,488 136,778 148,035 Other (2) 243,238 210,114 87,103 72,203 Aerospace 58,055 56,580 20,322 19,305 Total net sales 703,932 706,182 244,203 239,543 Intersegment sales (14,501) (16,654) (4,934) (4,954) Total consolidated net sales $1,598,684 $1,356,260 $569,528 $471,707 (1) Principally industrial products. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company's effective tax rate was 19.4% in the first nine months of fiscal 2022, as compared to 13.3% in the first nine months of fiscal 2021. The increase in the Company's effective tax rate principally reflects a 4.9% unfavorable impact from tax-exempt unrealized losses in the cash surrender values of life insurance policies related to the HEICO Leadership Compensation Plan ("the LCP") recognized in the first nine months of fiscal 2022 as compared to the tax-exempt unrealized gains recognized on such policies in the first nine months of fiscal 2021. The Company's effective tax rate was 27.0% in the third quarter of fiscal 2022, as compared to 15.7% in the third quarter of fiscal 2021. The increase in the Company's effective tax rate principally reflects a 5.3% unfavorable impact from tax-exempt unrealized losses in the |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $210,995 $— $210,995 Money market fund 8,484 — — 8,484 Total assets $8,484 $210,995 $— $219,479 Liabilities: Contingent consideration $— $— $80,632 $80,632 As of October 31, 2021 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $245,580 $— $245,580 Money market fund 4 — — 4 Total assets $4 $245,580 $— $245,584 Liabilities: Contingent consideration $— $— $62,286 $62,286 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 $218.2 million as of July 31, 2022 and $244.3 million as of October 31, 2021. As part of the agreement to acquire 96% of the stock of a subsidiary by the FSG in fiscal 2022, the Company may be obligated to pay contingent consideration of up to $27.4 million in fiscal 2027 based on the earnings of the acquired entity during fiscal years 2025 and 2026 provided the entity meets certain earnings objectives during each of fiscal years 2022 to 2024. As of July 31, 2022, the estimated fair value of the contingent consideration was $13.1 million. As part of the agreement to acquire 74% of the membership interests of a subsidiary by the FSG in fiscal 2022, the Company may be obligated to pay contingent consideration of $14.1 million in fiscal 2027 should the acquired entity meet a certain earnings objective during the five-year period following the acquisition. As of July 31, 2022, the estimated fair value of the contingent consideration was $9.7 million. As part of the agreement to acquire 89% of the membership interests of a subsidiary by the FSG in fiscal 2021, the Company may be obligated to pay contingent consideration of $8.9 million as early as in fiscal 2024 should the acquired entity meet a certain earnings objective during the three-year period following the acquisition. Additionally, the Company may be obligated to pay contingent consideration of up to $17.8 million as early as in fiscal 2026 should the acquired entity meet a certain earnings objective during the three-year period following the second anniversary of the acquisition. As of July 31, 2022, the estimated fair value of the contingent consideration was $17.4 million. As part of the agreement to acquire 89.99% of the equity interests of a subsidiary by the ETG in fiscal 2020, the Company may be obligated to pay contingent consideration of up to CAD $27.0 million, or $21.1 million, in fiscal 2025 should the acquired entity meet certain earnings objectives during fiscal 2023 and 2024. However, should the acquired entity achieve a certain earnings objective over any two consecutive fiscal years beginning in fiscal 2021 and ending in fiscal 2023, half of the contingent consideration obligation, or CAD $13.5 million, would be payable in the following year. As of July 31, 2022, the estimated fair value of the contingent consideration was CAD $18.5 million, or $14.4 million, of which $10.4 million was included in accrued expenses and other current liabilities in the Company's Condensed Consolidated Balance Sheet. 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, 2022, the estimated fair value of the contingent consideration was $7.4 million as compared to $13.3 million as of October 31, 2021. The decrease in the fair value of the contingent consideration is principally attributable to an increased probability that the required earnings objective for each of calendar years 2022 to 2024 is not met as forecasted sales and earnings growth is delayed reflecting the lower demand that the subsidiary is currently experiencing for its defense products. 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, 2022, the estimated fair value of the contingent consideration was $18.6 million. The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of July 31, 2022 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 7-18-2022 $13,145 Compound annual revenue growth rate 0% - 5% 3% Discount rate 7.2% - 7.2% 7.2% 3-17-2022 9,653 Compound annual revenue growth rate (3%) - 8% 3% Discount rate 5.8% - 5.8% 5.8% 8-4-2021 17,394 Compound annual revenue growth rate (1%) - 9% 7% Discount rate 6.9% - 7.3% 7.0% 8-18-2020 14,450 Compound annual revenue growth rate 12% - 21% 15% Discount rate 3.7% - 7.3% 4.7% 8-11-2020 7,386 Compound annual revenue growth rate (2%) - 13% 6% Discount rate 7.0% - 7.0% 7.0% 9-15-2017 18,604 Compound annual revenue growth rate (1%) - 5% 3% Discount rate 6.2% - 6.2% 6.2% (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, 2022 are as follows (in thousands): Liabilities Balance as of October 31, 2021 $62,286 Contingent consideration related to acquisitions 22,980 Decrease in accrued contingent consideration, net (4,253) Foreign currency transaction adjustments (381) Balance as of July 31, 2022 $80,632 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $10,421 Other long-term liabilities 70,211 $80,632 The Company records changes in accrued contingent consideration and foreign currency transaction adjustments within selling, general and administrative expenses 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, 2022 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, 2022 | |
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, 2022 2021 2022 2021 Numerator: Net income attributable to HEICO $254,471 $218,158 $82,540 $76,889 Denominator: Weighted average common shares outstanding - basic 135,835 135,291 135,978 135,370 Effect of dilutive stock options 2,055 2,546 1,859 2,587 Weighted average common shares outstanding - diluted 137,890 137,837 137,837 137,957 Net income per share attributable to HEICO shareholders: Basic $1.87 $1.61 $.61 $.57 Diluted $1.85 $1.58 $.60 $.56 Anti-dilutive stock options excluded 748 13 767 — |
OPERATING SEGMENTS
OPERATING SEGMENTS | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 and 2021, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Nine months ended July 31, 2022: Net sales $909,253 $703,932 ($14,501) $1,598,684 Depreciation 11,493 10,153 743 22,389 Amortization 17,543 29,750 844 48,137 Operating income 189,329 189,605 (28,588) 350,346 Capital expenditures 12,084 11,874 399 24,357 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 Three months ended July 31, 2022: Net sales $330,259 $244,203 ($4,934) $569,528 Depreciation 4,082 3,361 250 7,693 Amortization 6,281 9,571 274 16,126 Operating income 70,756 68,029 (10,038) 128,747 Capital expenditures 3,971 3,879 296 8,146 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 (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, 2022 $1,595,356 $1,938,593 $253,402 $3,787,351 Total assets as of October 31, 2021 1,274,462 1,952,413 271,532 3,498,407 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees As of July 31, 2022, the Company has arranged for standby letters of credit aggregating $21.3 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, 2022 and 2021, respectively, are as follows (in thousands): Nine months ended July 31, 2022 2021 Balances as of beginning of fiscal year $3,379 $3,015 Accruals for warranties 1,352 1,486 Acquired warranty liabilities — 33 Warranty claims settled (1,719) (1,209) Balances as of July 31 $3,012 $3,325 Litigation On April 20, 2021, an indirect subsidiary of HFSC, 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. The Company has completed its production of documents responsive to the subpoena, although the Company has a continuing obligation to produce such documents should any be located. 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 its business, if any, that may result from this matter. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jul. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS In August 2022, the Company, through a subsidiary of HEICO Electronic, acquired 100% of the stock of Charter Engineering, Inc. ("Charter"). Charter designs and manufactures a complete line of RF and Microwave coaxial switches for the aerospace, defense, commercial, Automated Test Equipment ("ATE"), and instrumentation markets. The purchase price of this acquisition was paid in cash using cash provided by operating activities and is not material or significant to the Company's condensed consolidated financial statements. In August 2022, the Company acquired 100% of the stock of Sensor Systems, Inc. ("Sensor"). Sensor designs and manufactures airborne antennas for commercial and military applications. The purchase price of this acquisition was paid for with a proportional combination of cash using proceeds from the Company's revolving credit facility and 576,338 shares of HEICO Class A Common Stock. The purchase price is not material or significant to the Company's condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2021. The October 31, 2021 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, 2022 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. ("HFSC") 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 fiscal 2022 continue to reflect the adverse impact from the COVID-19 global pandemic (the “Pandemic”), including its impact on the Company’s supply chain. Despite the aforementioned, the Company experienced continued improvement in operating results in the first nine months and third quarter of fiscal 2022 as compared to the first nine months and third quarter of fiscal 2021 principally reflecting improved demand for its commercial aerospace products. The Flight Support Group has reported eight consecutive quarters of improvement in net sales and operating income resulting from signs of commercial air travel recovery in certain domestic travel markets, moderated by a slower recovery in international travel markets. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncement In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. ASU 2021-08 is effective for fiscal years and interim reporting periods within those fiscal years beginning after December 15, 2022, or in fiscal 2024 for HEICO. Early adoption is permitted and ASU 2021-08 shall be applied on a prospective basis to business combinations that occur on or after the adoption date. The Company is currently evaluating the effect, if any, the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. |
SELECTED FINANCIAL STATEMENT _2
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands) July 31, 2022 October 31, 2021 Accounts receivable $282,693 $255,793 Less: Allowance for doubtful accounts (9,542) (10,874) Accounts receivable, net $273,151 $244,919 |
Schedule of Inventories [Table Text Block] | Inventories (in thousands) July 31, 2022 October 31, 2021 Finished products $267,839 $238,867 Work in process 58,738 44,887 Materials, parts, assemblies and supplies 219,366 194,296 Inventories, net of valuation reserves $545,943 $478,050 |
Schedule of Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment (in thousands) July 31, 2022 October 31, 2021 Land $11,200 $11,363 Buildings and improvements 139,777 134,150 Machinery, equipment and tooling 311,102 297,297 Construction in progress 13,320 7,784 475,399 450,594 Less: Accumulated depreciation and amortization (272,555) (256,956) Property, plant and equipment, net $202,844 $193,638 |
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, 2022 and 2021 is as follows (in thousands): Nine months ended July 31, Three months ended July 31, 2022 2021 2022 2021 R&D expenses $55,804 $52,179 $18,657 $17,976 |
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, 2022 October 31, 2021 Redeemable at fair value $274,854 $217,416 Redeemable based on a multiple of future earnings 22,140 35,171 Redeemable noncontrolling interests $296,994 $252,587 |
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, 2022 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2021 ($6,989) ($1,563) ($8,552) Unrealized loss (29,424) — (29,424) Amortization of unrealized loss — 49 49 Balances as of July 31, 2022 ($36,413) ($1,514) ($37,927) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2021 $468,288 $982,107 $1,450,395 Goodwill acquired 107,265 2,652 109,917 Foreign currency translation adjustments (5,288) (6,527) (11,815) Adjustments to goodwill (6,911) (109) (7,020) Balances as of July 31, 2022 $563,354 $978,123 $1,541,477 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of July 31, 2022 As of October 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $480,195 ($197,070) $283,125 $464,506 ($221,098) $243,408 Intellectual property 263,382 (106,013) 157,369 255,011 (94,313) 160,698 Licenses 6,559 (5,344) 1,215 6,559 (5,072) 1,487 Patents 1,109 (801) 308 1,110 (793) 317 Non-compete agreements 641 (641) — 722 (722) — Trade names 300 (133) 167 450 (257) 193 752,186 (310,002) 442,184 728,358 (322,255) 406,103 Non-Amortizing Assets: Trade names 196,366 — 196,366 176,204 — 176,204 $948,552 ($310,002) $638,550 $904,562 ($322,255) $582,307 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): July 31, 2022 October 31, 2021 Borrowings under revolving credit facility $230,000 $225,000 Finance leases and notes payable 15,757 11,498 245,757 236,498 Less: Current maturities of long-term debt (1,734) (1,515) $244,023 $234,983 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 are as follows (in thousands): July 31, 2022 October 31, 2021 Change Contract assets $86,534 $80,073 $6,461 Contract liabilities 58,366 32,738 25,628 Net contract assets $28,168 $47,335 ($19,167) |
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, 2022 2021 2022 2021 Flight Support Group: Aftermarket replacement parts (1) $512,335 $390,685 $187,453 $136,357 Repair and overhaul parts and services (2) 193,973 147,709 66,440 54,591 Specialty products (3) 202,945 128,338 76,366 46,170 Total net sales 909,253 666,732 330,259 237,118 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 485,780 521,586 165,871 176,238 Electronic component parts for equipment in various other industries (5) 218,152 184,596 78,332 63,305 Total net sales 703,932 706,182 244,203 239,543 Intersegment sales (14,501) (16,654) (4,934) (4,954) Total consolidated net sales $1,598,684 $1,356,260 $569,528 $471,707 (1) Includes primarily 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 as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers. (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, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, 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 frequency 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, 2022 2021 2022 2021 Flight Support Group: Aerospace $637,282 $473,470 $219,558 $175,388 Defense and Space 231,014 162,196 94,756 51,898 Other (1) 40,957 31,066 15,945 9,832 Total net sales 909,253 666,732 330,259 237,118 Electronic Technologies Group: Defense and Space 402,639 439,488 136,778 148,035 Other (2) 243,238 210,114 87,103 72,203 Aerospace 58,055 56,580 20,322 19,305 Total net sales 703,932 706,182 244,203 239,543 Intersegment sales (14,501) (16,654) (4,934) (4,954) Total consolidated net sales $1,598,684 $1,356,260 $569,528 $471,707 (1) Principally industrial products. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $210,995 $— $210,995 Money market fund 8,484 — — 8,484 Total assets $8,484 $210,995 $— $219,479 Liabilities: Contingent consideration $— $— $80,632 $80,632 As of October 31, 2021 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $245,580 $— $245,580 Money market fund 4 — — 4 Total assets $4 $245,580 $— $245,584 Liabilities: Contingent consideration $— $— $62,286 $62,286 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of July 31, 2022 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 7-18-2022 $13,145 Compound annual revenue growth rate 0% - 5% 3% Discount rate 7.2% - 7.2% 7.2% 3-17-2022 9,653 Compound annual revenue growth rate (3%) - 8% 3% Discount rate 5.8% - 5.8% 5.8% 8-4-2021 17,394 Compound annual revenue growth rate (1%) - 9% 7% Discount rate 6.9% - 7.3% 7.0% 8-18-2020 14,450 Compound annual revenue growth rate 12% - 21% 15% Discount rate 3.7% - 7.3% 4.7% 8-11-2020 7,386 Compound annual revenue growth rate (2%) - 13% 6% Discount rate 7.0% - 7.0% 7.0% 9-15-2017 18,604 Compound annual revenue growth rate (1%) - 5% 3% Discount rate 6.2% - 6.2% 6.2% |
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, 2022 are as follows (in thousands): Liabilities Balance as of October 31, 2021 $62,286 Contingent consideration related to acquisitions 22,980 Decrease in accrued contingent consideration, net (4,253) Foreign currency transaction adjustments (381) Balance as of July 31, 2022 $80,632 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $10,421 Other long-term liabilities 70,211 $80,632 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 2021 2022 2021 Numerator: Net income attributable to HEICO $254,471 $218,158 $82,540 $76,889 Denominator: Weighted average common shares outstanding - basic 135,835 135,291 135,978 135,370 Effect of dilutive stock options 2,055 2,546 1,859 2,587 Weighted average common shares outstanding - diluted 137,890 137,837 137,837 137,957 Net income per share attributable to HEICO shareholders: Basic $1.87 $1.61 $.61 $.57 Diluted $1.85 $1.58 $.60 $.56 Anti-dilutive stock options excluded 748 13 767 — |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 and 2021, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Nine months ended July 31, 2022: Net sales $909,253 $703,932 ($14,501) $1,598,684 Depreciation 11,493 10,153 743 22,389 Amortization 17,543 29,750 844 48,137 Operating income 189,329 189,605 (28,588) 350,346 Capital expenditures 12,084 11,874 399 24,357 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 Three months ended July 31, 2022: Net sales $330,259 $244,203 ($4,934) $569,528 Depreciation 4,082 3,361 250 7,693 Amortization 6,281 9,571 274 16,126 Operating income 70,756 68,029 (10,038) 128,747 Capital expenditures 3,971 3,879 296 8,146 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 |
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, 2022 $1,595,356 $1,938,593 $253,402 $3,787,351 Total assets as of October 31, 2021 1,274,462 1,952,413 271,532 3,498,407 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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, 2022 and 2021, respectively, are as follows (in thousands): Nine months ended July 31, 2022 2021 Balances as of beginning of fiscal year $3,379 $3,015 Accruals for warranties 1,352 1,486 Acquired warranty liabilities — 33 Warranty claims settled (1,719) (1,209) Balances as of July 31 $3,012 $3,325 |
ACQUISITIONS (Details Textuals)
ACQUISITIONS (Details Textuals) € in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2023 USD ($) | Jan. 31, 2023 EUR (€) | Jul. 31, 2021 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jan. 31, 2023 EUR (€) | |
Business Acquisition [Line Items] | ||||||
Business Acquisition, Pro Forma Revenue | $ 504,100 | $ 1,448,000 | ||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 88,100 | $ 248,500 | ||||
Heico Flight Support Corp | Accurate | ||||||
Business Acquisition [Line Items] | ||||||
Name of Acquired Entity | Accurate Metal Machining, Inc. | |||||
Description of Acquired Entity | Accurate is a manufacturer of high-reliability components and assemblies. | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 96% | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 13,100 | |||||
Heico Flight Support Corp | Accurate | Existing Management | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 4% | |||||
Heico Flight Support Corp | Pioneer | ||||||
Business Acquisition [Line Items] | ||||||
Name of Acquired Entity | Pioneer Industries, LLC | |||||
Description of Acquired Entity | Pioneer is a specialty distributor of spares for military aviation, marine, and ground platforms. | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 74% | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 9,800 | |||||
Heico Flight Support Corp | Pioneer | Existing Management | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 26% | |||||
Heico Electronic Technologies Corp | Exxelia | ||||||
Business Acquisition [Line Items] | ||||||
Name of Acquired Entity | Exxelia International | |||||
Description of Acquired Entity | Exxelia designs, manufactures and sells high-reliability (“Hi-Rel”), complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging “clean energy” and electrification applications. | |||||
Heico Electronic Technologies Corp | Exxelia | Subsequent Event | Forecast | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Price of Acquisition, Expected | $ 463,100 | € 453,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 14,300 | € 14,000 | ||||
Heico Electronic Technologies Corp | Exxelia | Existing Management | Subsequent Event | Forecast | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5% | 5% | ||||
Heico Electronic Technologies Corp | Flight Microwave | ||||||
Business Acquisition [Line Items] | ||||||
Name of Acquired Entity | Flight Microwave Corporation | |||||
Description of Acquired Entity | Flight Microwave is a designer and manufacturer of custom high power filters and filter assemblies used in space and defense applications. | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% |
SELECTED FINANCIAL STATEMENT _3
SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 282,693 | $ 255,793 |
Less: Allowance for doubtful accounts | (9,542) | (10,874) |
Accounts receivable, net | $ 273,151 | $ 244,919 |
SELECTED FINANCIAL STATEMENT _4
SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Inventory [Line Items] | ||
Finished products | $ 267,839 | $ 238,867 |
Work in process | 58,738 | 44,887 |
Materials, parts, assemblies and supplies | 219,366 | 194,296 |
Inventories, net of valuation reserves | $ 545,943 | $ 478,050 |
SELECTED FINANCIAL STATEMENT _5
SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 11,200 | $ 11,363 |
Buildings and improvements | 139,777 | 134,150 |
Machinery, equipment and tooling | 311,102 | 297,297 |
Construction in progress | 13,320 | 7,784 |
Property, plant and equipment, gross | 475,399 | 450,594 |
Less: Accumulated depreciation and amortization | (272,555) | (256,956) |
Property, plant and equipment, net | $ 202,844 | $ 193,638 |
SELECTED FINANCIAL STATEMENT _6
SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Selected Financial Statement Information (Details) [Abstract] | ||||
R&D expenses | $ 18,657 | $ 17,976 | $ 55,804 | $ 52,179 |
SELECTED FINANCIAL STATEMENT _7
SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable at fair value | $ 274,854 | $ 217,416 |
Redeemable based on a multiple of future earnings | 22,140 | 35,171 |
Redeemable noncontrolling interests | $ 296,994 | $ 252,587 |
SELECTED FINANCIAL STATEMENT _8
SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | $ (8,552) | |||
Unrealized gain (loss) | (29,424) | |||
Amortization of unrealized loss on defined benefit pension plan, net of tax | $ 16 | $ 33 | 49 | $ 101 |
Ending accumulated other comprehensive loss | (37,927) | (37,927) | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | (6,989) | |||
Unrealized gain (loss) | (29,424) | |||
Ending accumulated other comprehensive loss | (36,413) | (36,413) | ||
Pension Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | (1,563) | |||
Amortization of unrealized loss on defined benefit pension plan, net of tax | 49 | |||
Ending accumulated other comprehensive loss | $ (1,514) | $ (1,514) |
SELECTED FINANCIAL STATEMENT _9
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | May 31, 2022 | Oct. 31, 2021 | |
Selected Financial Statement Information (Details) [Abstract] | ||||||
Accrued customer rebates and credits | $ 17.5 | $ 17.5 | $ 13.2 | |||
Total customer rebates and credits deducted within net sales | $ 2.2 | $ 0.7 | $ 5.9 | $ 2.5 | ||
Accurate | Heico Flight Support Corp | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 96% | 96% | ||||
Pioneer | Heico Flight Support Corp | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 74% | 74% | ||||
FY 2017 Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 9.95% | |||||
FY 2017 Acquisition [Member] | Existing Noncontrolling Interest Holders | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.90% | |||||
FY 2017 Acquisition [Member] | Heico Corp | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 90.05% | |||||
FY 2015 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of Voting Interests Sold | 3% | 3% | ||||
FY 2015 Acquisition | Heico Corp | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 82% | 82% | ||||
FY 2018 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of Voting Interests Sold | 10% | 10% | ||||
FY 2018 Acquisition | Heico Corp | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 90% | 90% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands | 9 Months Ended |
Jul. 31, 2022 USD ($) | |
Goodwill [Line Items] | |
Opening Balance | $ 1,450,395 |
Goodwill acquired | 109,917 |
Foreign currency translation adjustments | (11,815) |
Adjustments to goodwill | (7,020) |
Ending Balance | 1,541,477 |
Flight Support Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 468,288 |
Goodwill acquired | 107,265 |
Foreign currency translation adjustments | (5,288) |
Adjustments to goodwill | (6,911) |
Ending Balance | 563,354 |
Electronic Technologies Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 982,107 |
Goodwill acquired | 2,652 |
Foreign currency translation adjustments | (6,527) |
Adjustments to goodwill | (109) |
Ending Balance | $ 978,123 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 752,186 | $ 728,358 |
Accumulated Amortization | (310,002) | (322,255) |
Net Carrying Amount | 442,184 | 406,103 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Asset Gross Carrying Amount | 948,552 | 904,562 |
Intangible Asset Net Carrying Amount | 638,550 | 582,307 |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 196,366 | 176,204 |
Net Carrying Amount | 196,366 | 176,204 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 480,195 | 464,506 |
Accumulated Amortization | (197,070) | (221,098) |
Net Carrying Amount | 283,125 | 243,408 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 263,382 | 255,011 |
Accumulated Amortization | (106,013) | (94,313) |
Net Carrying Amount | 157,369 | 160,698 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 6,559 | 6,559 |
Accumulated Amortization | (5,344) | (5,072) |
Net Carrying Amount | 1,215 | 1,487 |
Patents [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1,109 | 1,110 |
Accumulated Amortization | (801) | (793) |
Net Carrying Amount | 308 | 317 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 641 | 722 |
Accumulated Amortization | (641) | (722) |
Net Carrying Amount | 0 | 0 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 300 | 450 |
Accumulated Amortization | (133) | (257) |
Net Carrying Amount | $ 167 | $ 193 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 108,000 | $ 108,000 | ||
Amortization expense related to intangible assets | 15,200 | $ 15,200 | 45,400 | $ 45,500 |
Estimated Amortization Expense, remainder of fiscal year | 15,500 | 15,500 | ||
Estimated Amortization Expense, for fiscal 2023 | 58,300 | 58,300 | ||
Estimated Amortization Expense, for fiscal 2024 | 53,300 | 53,300 | ||
Estimated Amortization Expense, for fiscal 2025 | 48,900 | 48,900 | ||
Estimated Amortization Expense, for fiscal 2026 | 44,400 | 44,400 | ||
Estimated Amortization Expense, for fiscal 2027 | 41,500 | 41,500 | ||
Estimated Amortization Expense, thereafter | $ 180,300 | $ 180,300 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Borrowings under revolving credit facility | $ 230,000 | $ 225,000 |
Finance leases and note payable | 15,757 | 11,498 |
Total debt and capital leases | 245,757 | 236,498 |
Current maturities of long-term debt | (1,734) | (1,515) |
Long-term debt, net of current maturities | $ 244,023 | $ 234,983 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) | Jul. 31, 2022 | Oct. 31, 2021 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.30% | 1.10% |
REVENUE (Contract Assets and Li
REVENUE (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2022 | Oct. 31, 2021 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Contract assets | $ 86,534 | $ 80,073 |
Contract liabilities | 58,366 | 32,738 |
Net contract assets | 28,168 | $ 47,335 |
Increase in contract assets, net | 6,461 | |
Increase (Decrease) in Customer Deposits | 25,628 | |
Contract with Customer, Billings in Excess of Unbilled Receivable and New Deposits in Excess of Deposits Recognized as Revenue | $ (19,167) |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue, by Product Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 569,528 | $ 471,707 | $ 1,598,684 | $ 1,356,260 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 330,259 | 237,118 | 909,253 | 666,732 | |
Flight Support Group [Member] | Aftermarket Replacement Parts [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 187,453 | 136,357 | 512,335 | 390,685 |
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] | 66,440 | 54,591 | 193,973 | 147,709 |
Flight Support Group [Member] | Specialty Products [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [3] | 76,366 | 46,170 | 202,945 | 128,338 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 244,203 | 239,543 | 703,932 | 706,182 | |
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] | 165,871 | 176,238 | 485,780 | 521,586 |
Electronic Technologies Group [Member] | Other Electronic Components [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [5] | 78,332 | 63,305 | 218,152 | 184,596 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (4,934) | $ (4,954) | $ (14,501) | $ (16,654) | |
[1]Includes primarily 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 as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers.[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, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, 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 frequency 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, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 569,528 | $ 471,707 | $ 1,598,684 | $ 1,356,260 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 330,259 | 237,118 | 909,253 | 666,732 | |
Flight Support Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 219,558 | 175,388 | 637,282 | 473,470 | |
Flight Support Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 94,756 | 51,898 | 231,014 | 162,196 | |
Flight Support Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 15,945 | 9,832 | 40,957 | 31,066 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 244,203 | 239,543 | 703,932 | 706,182 | |
Electronic Technologies Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 20,322 | 19,305 | 58,055 | 56,580 | |
Electronic Technologies Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 136,778 | 148,035 | 402,639 | 439,488 | |
Electronic Technologies Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 87,103 | 72,203 | 243,238 | 210,114 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (4,934) | $ (4,954) | $ (14,501) | $ (16,654) | |
[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, 2022 USD ($) | Jul. 31, 2022 USD ($) | |
REVENUE [Abstract] | ||
Contract with Customer, Liability, Revenue Recognized | $ 3,100 | $ 22,700 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 451,300 | $ 451,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-02 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 123,800 | $ 123,800 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 327,500 | $ 327,500 |
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) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 27% | 15.70% | 19.40% | 13.30% |
Tax-Exempt Losses on Corporate Owned Life Insurance Policies | 5.30% | 4.90% | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent | 2.60% |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy, by Category) (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 219,479 | $ 245,584 |
Liabilities: | ||
Contingent consideration | 80,632 | 62,286 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 8,484 | 4 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 210,995 | 245,580 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Liabilities: | ||
Contingent consideration | 80,632 | 62,286 |
Corporate Owned Life Insurance [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 210,995 | 245,580 |
Corporate Owned Life Insurance [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Corporate Owned Life Insurance [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 210,995 | 245,580 |
Corporate Owned Life Insurance [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 8,484 | 4 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 8,484 | 4 |
Money Market Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | Jul. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 80,632 | $ 62,286 | |
FY2022 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 13,145 | ||
FY2022 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 9,653 | ||
FY2021 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 17,394 | ||
FY2020 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 14,450 | ||
FY2020 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 7,386 | ||
FY 2017 Acquisition [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 18,604 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.03 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 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] | FY2022 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.05 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.03 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 2 | 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] | FY2022 Acquisition Subsidiary 2 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.08 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2021 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] | FY2021 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | (0.01) | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2021 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.09 | ||
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] | 0.15 | |
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 | 0.12 | ||
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 | 0.21 | ||
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] | 0.06 | |
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 | (0.02) | ||
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 | 0.13 | ||
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] | 0.03 | |
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 | (0.01) | ||
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 | 0.05 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.072 | |
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.072 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.072 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.058 | |
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.058 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.058 | ||
Measurement Input, Discount Rate [Member] | FY2021 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.070 | |
Measurement Input, Discount Rate [Member] | FY2021 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.069 | ||
Measurement Input, Discount Rate [Member] | FY2021 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.073 | ||
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] | 0.047 | |
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 | 0.037 | ||
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 | 0.073 | ||
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] | 0.070 | |
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 | 0.070 | ||
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 | 0.070 | ||
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] | 0.062 | |
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 | 0.062 | ||
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 | 0.062 | ||
[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) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2022 | Oct. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Accrued Liabilities, Current | $ 233,812 | $ 206,857 |
Other Liabilities, Noncurrent | 359,713 | $ 378,257 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Opening balance, Liabilities | 62,286 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | 22,980 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | (4,253) | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (381) | |
Ending balance, Liabilities | 80,632 | |
Accrued Liabilities, Current | 10,421 | |
Other Liabilities, Noncurrent | $ 70,211 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, $ in Thousands | 9 Months Ended | |||
Jul. 31, 2022 USD ($) | Jul. 31, 2022 CAD ($) | May 31, 2022 | Oct. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities | $ 80,632 | $ 62,286 | ||
Accrued Liabilities, Current | $ 233,812 | 206,857 | ||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | |||
FY2022 Acquisition Subsidiary 1 | Flight Support Group [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 96% | 96% | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 27,400 | |||
Total liabilities | $ 13,100 | |||
FY2021 Acquisition Subsidiary 1 | Flight Support Group [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 89% | 89% | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 8,900 | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 17,800 | |||
Total liabilities | $ 17,400 | |||
FY2020 Acquisition Subsidiary 1 | Heico Electronic Technologies Corp | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 89.99% | 89.99% | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 21,100 | |||
Total liabilities | 14,400 | |||
Accrued Liabilities, Current | 10,400 | |||
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, Low | $ 13,500 | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 27,000 | |||
Total liabilities | $ 18,500 | |||
FY2020 Acquisition Subsidiary 2 | 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 | 35,000 | |||
Total liabilities | $ 7,400 | 13,300 | ||
FY2020 Acquisition Subsidiary 2 | Heico Electronic Technologies Corp | FY2020 Acquisition Subsidiary 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 75% | 75% | ||
FY 2017 Acquisition [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 9.95% | |||
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 | |||
FY2022 Acquisition Subsidiary 2 | Flight Support Group [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 74% | 74% | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 14,100 | |||
Total liabilities | 9,700 | |||
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 | $ 218,200 | $ 244,300 |
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, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Numerator: | ||||
Net income attributable to HEICO | $ 82,540 | $ 76,889 | $ 254,471 | $ 218,158 |
Denominator: | ||||
Weighted Average Number of Shares Outstanding, Basic | 135,978 | 135,370 | 135,835 | 135,291 |
Effect of dilutive stock options | 1,859 | 2,587 | 2,055 | 2,546 |
Weighted Average Number of Shares Outstanding, Diluted | 137,837 | 137,957 | 137,890 | 137,837 |
Earnings Per Share, Basic | $ 0.61 | $ 0.57 | $ 1.87 | $ 1.61 |
Earnings Per Share, Diluted | $ 0.60 | $ 0.56 | $ 1.85 | $ 1.58 |
Anti-dilutive stock options excluded | 767 | 0 | 748 | 13 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 569,528 | $ 471,707 | $ 1,598,684 | $ 1,356,260 | |
Depreciation | 7,693 | 6,810 | 22,389 | 20,344 | |
Amortization | 16,126 | 16,087 | 48,137 | 48,472 | |
Operating Income (Loss) | 128,747 | 100,838 | 350,346 | 277,871 | |
Capital expenditures | 8,146 | 8,186 | 24,357 | 30,124 | |
Corporate And Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | (4,934) | (4,954) | (14,501) | (16,654) |
Depreciation | [1] | 250 | 242 | 743 | 728 |
Amortization | [1] | 274 | 287 | 844 | 848 |
Operating Income (Loss) | [1] | (10,038) | (10,218) | (28,588) | (25,905) |
Capital expenditures | [1] | 296 | 473 | 399 | 490 |
Flight Support Group [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 330,259 | 237,118 | 909,253 | 666,732 | |
Depreciation | 4,082 | 3,330 | 11,493 | 10,159 | |
Amortization | 6,281 | 4,929 | 17,543 | 15,036 | |
Operating Income (Loss) | 70,756 | 42,059 | 189,329 | 103,357 | |
Capital expenditures | 3,971 | 1,792 | 12,084 | 5,885 | |
Electronic Technologies Group [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 244,203 | 239,543 | 703,932 | 706,182 | |
Depreciation | 3,361 | 3,238 | 10,153 | 9,457 | |
Amortization | 9,571 | 10,871 | 29,750 | 32,588 | |
Operating Income (Loss) | 68,029 | 68,997 | 189,605 | 200,419 | |
Capital expenditures | $ 3,879 | $ 5,921 | $ 11,874 | $ 23,749 | |
[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, 2022 | Oct. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,787,351 | $ 3,498,407 |
Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 253,402 | 271,532 |
Flight Support Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,595,356 | 1,274,462 |
Electronic Technologies Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,938,593 | $ 1,952,413 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule of Product Warranties [Line Items] | ||
Balances as of beginning of fiscal year | $ 3,379 | $ 3,015 |
Accruals for warranties | 1,352 | 1,486 |
Standard and Extended Product Warranty Accrual, Additions from Business Acquisition | 33 | |
Warranty claims settled | (1,719) | (1,209) |
Balances as of end of period | $ 3,012 | $ 3,325 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textuals) $ in Millions | Jul. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 21.3 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textuals) - shares | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2022 | Jul. 31, 2022 | Aug. 01, 2022 | |
Charter | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||
Name of Acquired Entity | Charter Engineering, Inc. | ||
Description of Acquired Entity | Charter designs and manufactures a complete line of RF and Microwave coaxial switches for the aerospace, defense, commercial, Automated Test Equipment ("ATE"), and instrumentation markets. | ||
Sensor | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||
Name of Acquired Entity | Sensor Systems, Inc. | ||
Description of Acquired Entity | Sensor designs and manufactures airborne antennas for commercial and military applications. | ||
Stock Issued During Period, Shares, Acquisitions | 576,338 | ||
Exxelia | Heico Electronic Technologies Corp | |||
Subsequent Event [Line Items] | |||
Name of Acquired Entity | Exxelia International | ||
Description of Acquired Entity | Exxelia designs, manufactures and sells high-reliability (“Hi-Rel”), complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging “clean energy” and electrification applications. |