DOCUMENT INFORMATION
DOCUMENT INFORMATION | 12 Months Ended |
Oct. 31, 2022 | |
Document Information [Line Items] | |
Amendment Flag | false |
Document Type | 10-K |
Document Annual Report | true |
Document Period End Date | Oct. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Transition Report | false |
Document Fiscal Year Focus | 2022 |
ICFR Auditor Attestation Flag | true |
ENTITY INFORMATION
ENTITY INFORMATION - USD ($) | 12 Months Ended | |
Oct. 31, 2022 | Apr. 30, 2022 | |
Entity Information [Line Items] | ||
Entity Central Index Key | 0000046619 | |
Current Fiscal Year End Date | --10-31 | |
Entity File Number | 001-04604 | |
Entity Registrant Name | HEICO CORPORATION | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 65-0341002 | |
Entity Address, Address Line One | 3000 Taft Street | |
Entity Address, City or Town | Hollywood | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33021 | |
City Area Code | 954 | |
Local Phone Number | 987-4000 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 15,871,879,000 |
ENTITY LISTING INFORMATION
ENTITY LISTING INFORMATION - $ / shares | 12 Months Ended | |
Oct. 31, 2022 | Dec. 20, 2022 | |
Heico Common Stock [Member] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Trading Symbol | HEI | |
Security Exchange Name | NYSE | |
Entity Listing, Par Value Per Share | $ 0.01 | |
Entity Common Stock, Shares Outstanding | 54,518,561 | |
Common Class A [Member] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $.01 par value per share | |
Trading Symbol | HEI.A | |
Security Exchange Name | NYSE | |
Entity Listing, Par Value Per Share | $ 0.01 | |
Entity Common Stock, Shares Outstanding | 82,125,739 |
AUDITOR INFORMATION
AUDITOR INFORMATION | 12 Months Ended |
Oct. 31, 2022 | |
Cover [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Miami, Florida |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 139,504 | $ 108,298 |
Accounts receivable, net | 294,848 | 244,919 |
Contract assets | 93,978 | 80,073 |
Inventories, net | 582,471 | 478,050 |
Prepaid expenses and other current assets | 41,929 | 26,045 |
Total current assets | 1,152,730 | 937,385 |
Property, plant and equipment, net | 225,879 | 193,638 |
Goodwill | 1,672,425 | 1,450,395 |
Intangible assets, net | 733,327 | 582,307 |
Other assets | 311,135 | 334,682 |
Total assets | 4,095,496 | 3,498,407 |
Current liabilities: | ||
Current maturities of long-term debt | 1,654 | 1,515 |
Trade accounts payable | 116,551 | 85,544 |
Accrued expenses and other current liabilities | 290,199 | 206,857 |
Income taxes payable | 12,455 | 964 |
Total current liabilities | 420,859 | 294,880 |
Long-term debt, net of current maturities | 288,620 | 234,983 |
Deferred income taxes | 71,162 | 40,761 |
Other long-term liabilities | 338,948 | 378,257 |
Total liabilities | 1,119,589 | 948,881 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 327,601 | 252,587 |
Shareholders' equity: | ||
Preferred Stock | 0 | 0 |
Capital in excess of par value | 397,337 | 320,747 |
Deferred compensation obligation | 5,297 | 5,297 |
HEICO stock held by irrevocable trust | (5,297) | (5,297) |
Accumulated other comprehensive (loss) income | (46,499) | (8,552) |
Retained earnings | 2,253,932 | 1,949,521 |
Total HEICO shareholders' equity | 2,606,136 | 2,263,071 |
Noncontrolling interests | 42,170 | 33,868 |
Total shareholders' equity | 2,648,306 | 2,296,939 |
Total liabilities and equity | 4,095,496 | 3,498,407 |
Heico Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | 545 | 543 |
Common Class A [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 821 | $ 812 |
CONSOLIDATED BALANCE SHEETS _PA
CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] - $ / shares shares in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 10,000 | 10,000 |
Preferred Stock, shares issued | 0 | 0 |
Heico Common Stock [Member] | ||
Common stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 54,519 | 54,264 |
Common stock, shares outstanding | 54,519 | 54,264 |
Common Class A [Member] | ||
Common stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 82,093 | 81,224 |
Common stock, shares outstanding | 82,093 | 81,224 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Net sales | $ 2,208,322 | $ 1,865,682 | $ 1,787,009 |
Operating costs and expenses: | |||
Cost of sales | 1,345,563 | 1,138,259 | 1,104,882 |
Selling, general and administrative expenses | 365,915 | 334,523 | 305,479 |
Total operating costs and expenses | 1,711,478 | 1,472,782 | 1,410,361 |
Operating income | 496,844 | 392,900 | 376,648 |
Interest expense | (6,386) | (7,285) | (13,159) |
Other income | 565 | 1,443 | 1,366 |
Income before taxes and noncontrolling interests | 491,023 | 387,058 | 364,855 |
Income tax expense | 100,400 | 57,300 | 29,000 |
Net income from consolidated operations | 390,623 | 329,758 | 335,855 |
Less: Net income attributable to noncontrolling interests | 38,948 | 25,538 | 21,871 |
Net income attributable to HEICO | $ 351,675 | $ 304,220 | $ 313,984 |
Net income per share attributable to HEICO shareholders: | |||
Basic (in dollars per share) | $ 2.59 | $ 2.25 | $ 2.33 |
Diluted (in dollars per share) | $ 2.55 | $ 2.21 | $ 2.29 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 136,010 | 135,326 | 134,754 |
Diluted (in shares) | 138,037 | 137,854 | 137,302 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Net income from consolidated operations | $ 390,623 | $ 329,758 | $ 335,855 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (40,078) | (591) | 8,876 |
Unrealized (loss) gain on defined benefit pension plan, net of tax | 368 | 991 | (1,012) |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 65 | 135 | 73 |
Total other comprehensive (loss) income | (39,645) | 535 | 7,937 |
Comprehensive income from consolidated operations | 350,978 | 330,293 | 343,792 |
Less: Net income attributable to noncontrolling interests | 38,948 | 25,538 | 21,871 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (1,698) | (62) | 347 |
Comprehensive income attributable to noncontrolling interests | 37,250 | 25,476 | 22,218 |
Comprehensive income attributable to HEICO | $ 313,728 | $ 304,817 | $ 321,574 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member] Common Class A [Member] | Capital in Excess of Par Value [Member] | Deferred Compensation Obligation [Member] | HEICO Stock Held By Irrevocable Trust [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total Shareholders Equity [Member] |
Balances at Oct. 31, 2019 | $ 541 | $ 804 | $ 284,609 | $ 4,232 | $ (4,232) | $ (16,739) | $ 1,397,327 | $ 28,118 | $ 1,694,660 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 321,574 | 7,590 | 313,984 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 22,218 | $ 16,932 | 5,286 | ||||||||
Comprehensive Income (Loss) | 343,792 | 326,860 | |||||||||
Cash dividends | (21,552) | (21,552) | |||||||||
Issuance of Common Stock to HEICO SIP | 1 | 9,723 | 9,724 | ||||||||
Share-based Compensation Expense | 10,134 | 10,134 | |||||||||
Proceeds from stock option exercises | 6 | 6,955 | |||||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 6,949 | ||||||||||
Stock Redeemed or Called During Period, Value | (1) | (12,119) | (12,120) | ||||||||
Distributions to noncontrolling interests | (16,176) | (1,732) | (1,732) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 1,714 | (1,714) | (1,714) | ||||||||
Deferred Compensation Obligation | 654 | ||||||||||
Stock Held During Period Value Deferred Compensation Obligation | (654) | ||||||||||
Adjustments to Additional Paid in Capital, Other | 634 | ||||||||||
Stockholders' Equity, Other | (1,242) | (608) | |||||||||
Balances at Oct. 31, 2020 | 542 | 809 | 299,930 | 4,886 | (4,886) | (9,149) | 1,688,045 | 30,430 | 2,010,607 | ||
Redeemable noncontrolling interests at Oct. 31, 2019 | 188,264 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Redeemable Noncontrolling Interest | 22,218 | 16,932 | 5,286 | ||||||||
Distributions to noncontrolling interests | (16,176) | (1,732) | (1,732) | ||||||||
Acquisitions of noncontrolling interests | (7,475) | ||||||||||
Noncontrolling interests assumed related to acquisition | 22,204 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 1,714 | (1,714) | (1,714) | ||||||||
Temporary Equity, Stock Issued During Period, Value, New Issues | 14,329 | ||||||||||
Temporary Equity, Other | 1,416 | ||||||||||
Redeemable noncontrolling interests at Oct. 31, 2020 | 221,208 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 304,817 | 597 | 304,220 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 25,476 | 19,662 | 5,814 | ||||||||
Comprehensive Income (Loss) | 330,293 | 310,631 | |||||||||
Cash dividends | (23,002) | (23,002) | |||||||||
Issuance of Common Stock to HEICO SIP | 1 | 9,791 | 9,792 | ||||||||
Share-based Compensation Expense | 9,058 | 9,058 | |||||||||
Proceeds from stock option exercises | 3 | 5,344 | |||||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 5,341 | ||||||||||
Stock Redeemed or Called During Period, Value | (3,791) | (3,791) | |||||||||
Distributions to noncontrolling interests | (25,746) | (2,217) | (2,217) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 19,743 | (19,743) | (19,743) | ||||||||
Deferred Compensation Obligation | 411 | ||||||||||
Stock Held During Period Value Deferred Compensation Obligation | (411) | ||||||||||
Adjustments to Additional Paid in Capital, Other | 418 | ||||||||||
Stockholders' Equity, Other | 1 | (159) | 260 | ||||||||
Balances 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 Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Redeemable Noncontrolling Interest | 25,476 | 19,662 | 5,814 | ||||||||
Distributions to noncontrolling interests | (25,746) | (2,217) | (2,217) | ||||||||
Acquisitions of noncontrolling interests | (2,336) | ||||||||||
Noncontrolling interests assumed related to acquisition | 18,989 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 19,743 | (19,743) | (19,743) | ||||||||
Temporary Equity, Stock Issued During Period, Value, New Issues | 1,067 | ||||||||||
Redeemable noncontrolling interests at Oct. 31, 2021 | 252,587 | 252,587 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 313,728 | (37,947) | 351,675 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 37,250 | 27,442 | 9,808 | ||||||||
Comprehensive Income (Loss) | 350,978 | 323,536 | |||||||||
Cash dividends | (24,466) | (24,466) | |||||||||
Stock Issued During Period, Value, Acquisitions | 6 | 74,999 | 75,005 | ||||||||
Issuance of Common Stock to HEICO SIP | 1 | 11,416 | 11,417 | ||||||||
Share-based Compensation Expense | 12,646 | 12,646 | |||||||||
Proceeds from stock option exercises | 3 | 3 | 2,352 | ||||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 2,346 | ||||||||||
Stock Redeemed or Called During Period, Value | (1) | (1) | (25,944) | (25,946) | |||||||
Distributions to noncontrolling interests | (23,607) | (1,485) | (1,485) | ||||||||
Increase to APIC from Purchase of Noncontrolling Interests and Net Assets | 3,415 | 3,415 | |||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 22,798 | (22,798) | (22,798) | ||||||||
Adjustments to Additional Paid in Capital, Other | (2,288) | ||||||||||
Stockholders' Equity, Other | (21) | (2,309) | |||||||||
Balances at Oct. 31, 2022 | 2,648,306 | $ 545 | $ 821 | $ 397,337 | $ 5,297 | $ (5,297) | $ (46,499) | 2,253,932 | 42,170 | 2,648,306 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Redeemable Noncontrolling Interest | 37,250 | 27,442 | 9,808 | ||||||||
Distributions to noncontrolling interests | (23,607) | $ (1,485) | (1,485) | ||||||||
Acquisitions of noncontrolling interests | (8,700) | (12,150) | |||||||||
Noncontrolling interests assumed related to acquisition | 56,770 | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 22,798 | $ (22,798) | $ (22,798) | ||||||||
Temporary Equity, Other | 3,761 | ||||||||||
Redeemable noncontrolling interests at Oct. 31, 2022 | $ 327,601 | $ 327,601 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [PARENTHETICAL] - $ / shares | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Cash dividends per share (in dollars per share) | $ 0.18 | $ 0.17 | $ 0.16 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Operating Activities: | |||
Net income from consolidated operations | $ 390,623 | $ 329,758 | $ 335,855 |
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities: | |||
Depreciation and amortization | 96,333 | 93,019 | 88,561 |
Share-based compensation expense | 12,646 | 9,058 | 10,134 |
Employer contributions to HEICO Savings and Investment Plan | 12,180 | 10,091 | 9,576 |
Deferred Income Taxes and Tax Credits | 8,876 | (15,635) | (5,998) |
Change in accrued contingent consideration | (7,631) | 1,246 | 515 |
Payment of contingent consideration | (175) | ||
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (29,272) | (27,300) | 71,515 |
Contract assets | (4,148) | 376 | (16,398) |
Inventories | (89,186) | (10,121) | (28,315) |
Prepaid expenses and other current assets | (10,077) | (4,795) | 2,471 |
Trade accounts payable | 25,567 | 6,907 | (30,327) |
Accrued expenses and other current liabilities | 34,122 | 33,634 | (37,905) |
Income taxes payable | 11,597 | 2,821 | (9,586) |
Change in long-term liabilities and assets related to HEICO LCP | 15,398 | 12,781 | 14,836 |
Other | 828 | 2,244 | 4,366 |
Net cash provided by operating activities | 467,856 | 444,084 | 409,125 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (347,308) | (136,500) | (163,939) |
Capital expenditures | (31,982) | (36,183) | (22,940) |
Net Investment Related to HEICO LCP | (15,300) | (14,000) | (15,900) |
Other | (1,239) | 3,229 | 3,736 |
Net cash used in investing activities | (395,829) | (183,454) | (199,043) |
Financing Activities: | |||
Borrowings on revolving credit facility | 262,000 | 245,000 | |
Payments on revolving credit facility | (212,000) | (505,000) | (68,000) |
Redemption of common stock related to stop option exercises | (25,946) | (3,791) | (12,120) |
Distributions to noncontrolling interests | (25,092) | (27,963) | (17,908) |
Cash dividends paid | (24,466) | (23,002) | (21,552) |
Acquisitions of noncontrolling interests | (8,735) | (2,336) | (7,475) |
Revolving credit facility issuance costs | (1,010) | (1,468) | |
Proceeds from stock option exercises | 2,352 | 5,344 | 6,955 |
Payment of contingent consideration | (320) | (325) | |
Proceeds from Noncontrolling Interests | 534 | 14,329 | |
Other | (616) | (1,286) | (1,161) |
Net cash (used in) provided by financing activities | (33,833) | (558,968) | 137,743 |
Effect of exchange rate changes on cash | (6,988) | (216) | 2,026 |
Net increase (decrease) in cash and cash equivalents | 31,206 | (298,554) | 349,851 |
Cash and cash equivalents at beginning of year | 108,298 | 406,852 | 57,001 |
Cash and cash equivalents at end of year | $ 139,504 | $ 108,298 | $ 406,852 |
SUPPLEMENTAL DISCLOSURES OF CAS
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | 12 Months Ended |
Oct. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION The following table presents supplemental disclosures of cash flow information and non-cash investing activities for fiscal 2022, 2021 and 2020 (in thousands): Year ended October 31, 2022 2021 2020 Cash paid for income taxes $80,995 $67,661 $42,552 Cash received from income tax refunds (2,522) (993) (1,371) Cash paid for interest 6,037 7,355 13,418 Contingent consideration 29,412 18,334 23,719 Additional purchase consideration 4,000 292 144 Issuance of common stock for an acquisition (75,005) — — |
SUPPLEMENTAL DISCLOSURE OF CASH
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | 12 Months Ended |
Oct. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table presents supplemental disclosures of cash flow information and non-cash investing activities for fiscal 2022, 2021 and 2020 (in thousands): Year ended October 31, 2022 2021 2020 Cash paid for income taxes $80,995 $67,661 $42,552 Cash received from income tax refunds (2,522) (993) (1,371) Cash paid for interest 6,037 7,355 13,418 Contingent consideration 29,412 18,334 23,719 Additional purchase consideration 4,000 292 144 Issuance of common stock for an acquisition (75,005) — — |
SUPPLEMENTAL DISCLOSURE OF CA_2
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Cash paid for income taxes | $ 80,995 | $ 67,661 | $ 42,552 |
Cash received from income tax refunds | (2,522) | (993) | (1,371) |
Cash paid for interest | 6,037 | 7,355 | 13,418 |
Additional purchase consideration | 4,000 | 292 | 144 |
Stock Issued | (75,005) | ||
Other Acquisitions [Member] | |||
Contingent purchase consideration | $ (29,412) | $ (18,334) | $ (23,719) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business HEICO Corporation, through its principal subsidiaries consisting of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”), HEICO Flight Support Corp. ("HFSC") and HEICO Electronic Technologies Corp. (“HEICO Electronic”) and their respective subsidiaries (collectively, the “Company”), is principally engaged in the design, manufacture and sale of aerospace, defense and electronic related products and services throughout the United States ("U.S.") and internationally. The Company’s customer base is primarily the aviation, defense, space, medical, telecommunications and electronics industries. Basis of Presentation The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HFSC and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries. The consolidated financial statements include the financial accounts of HEICO Corporation and its direct subsidiaries, all of which are wholly owned except for HEICO Aerospace, which is 20% owned by Lufthansa Technik AG ("LHT"), the technical services subsidiary of Lufthansa German Airlines. HFSC consolidates six subsidiaries which are 70%, 74%, 82%, 84%, 89% and 96% owned, respectively, three subsidiaries that are approximately 90% owned and six subsidiaries that are each 80.1% owned. In addition, HEICO Aerospace consolidates a joint venture, which is 84% owned. HEICO Electronic consolidates four subsidiaries that are each 80.1% owned, two subsidiaries that are each 75% owned, and six subsidiaries which are 80.4%, 82.5%, 85%, 90%, 92.7% and 95.9% owned, respectively. Certain subsidiaries of HEICO Electronic consolidate subsidiaries that are less than wholly owned. See Note 13, Redeemable Noncontrolling Interests. All intercompany balances and transactions are eliminated. The Company's results of operations in fiscal 2022 continued 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 fiscal 2022 as compared to fiscal 2021 principally reflecting improved demand for its commercial aerospace products. The Flight Support Group has reported nine 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. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments such as U.S. Treasury bills and money market funds with an original maturity of three months or less at the time of purchase to be cash equivalents. Accounts Receivable Accounts receivable consist of amounts billed and currently due from customers. The valuation of accounts receivable requires that the Company set up an allowance for estimated uncollectible accounts and record a corresponding charge to bad debt expense. The Company estimates uncollectible receivables based on such factors as its prior experience, its appraisal of a customer’s ability to pay, age of receivables outstanding and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries. Contract Assets Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer. See Note 6, Revenue, for additional information regarding the Company's contract assets. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade accounts receivable. The Company places its temporary cash investments with high credit quality financial institutions and limits the amount of credit exposure to any one financial institution. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographical regions. The Company performs ongoing credit evaluations of its customers, but does not generally require collateral to support customer receivables. Inventory Inventory is stated at the lower of cost or net realizable value, with cost being determined on the first-in, first-out or the average cost basis. Losses, if any, are recognized fully in the period when identified. The Company periodically evaluates the carrying value of inventory, giving consideration to factors such as its physical condition, sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving, obsolete or damaged inventory. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In accordance with industry practice, all inventories are classified as a current asset including portions with long production cycles, some of which may not be realized within one year. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization is generally provided on the straight-line method over the estimated useful lives of the various assets. The Company’s property, plant and equipment is generally depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements 2 to 20 years Tooling 2 to 5 years The costs of major additions and improvements are capitalized. Leasehold improvements are amortized over the shorter of the leasehold improvement’s useful life or the lease term. Repairs and maintenance costs are expensed as incurred. Upon an asset's disposition, its cost and related accumulated depreciation are removed from the financial accounts and any resulting gain or loss is reflected within earnings. Leases The Company’s lease arrangements primarily pertain to manufacturing facilities, office buildings, equipment, land and vehicles. The Company evaluates whether a contractual arrangement that provides it with control over the use of an asset is, or contains, a lease at the inception date. The term of a lease is inclusive of any option to renew, extend, or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company classifies a lease as operating or finance using the classification criteria set forth in Accounting Standards Codification ("ASC") Topic 842. HEICO recognizes lease right-of-use (“ROU”) assets and corresponding lease liabilities as of the lease commencement date based on the present value of the lease payments over the lease term. The discount rate used to calculate the present value of the Company’s leases is based on HEICO’s incremental borrowing rate and considers credit risk, the lease term and other available information as of the commencement date since the leases do not provide a readily determinable implicit rate. Variable lease payments that depend on an index or a rate are included in the determination of ROU assets and lease liabilities using the index or rate at the lease commencement date. Variable lease payments that do not depend on an index or rate or resulting from changes in an index or rate subsequent to the lease commencement date, are recorded as lease expense in the period in which the obligation for the payment is incurred. The Company’s ROU assets are increased by any prepaid lease payments and initial direct costs and reduced by any lease incentives. The Company’s leases do not contain any material residual value guarantees or restrictive covenants. See Note 9, Leases, for additional information regarding the Company’s accounting policy for leases. Business Combinations The Company allocates the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values, with any excess recorded as goodwill. The operating results of acquired businesses are included in the Company’s results of operations beginning as of their effective acquisition dates. Acquisition costs were not material in fiscal 2022, 2021 and 2020. For contingent consideration arrangements, a liability is recognized at fair value as of the acquisition date with subsequent fair value adjustments recorded in operations. Additional information regarding the Company's contingent consideration arrangements may be found in Note 2, Acquisitions, and Note 8, Fair Value Measurements. Goodwill and Other Intangible Assets The Company tests goodwill for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. In evaluating the recoverability of goodwill, the Company compares the fair value of each of its reporting units to its carrying value to determine potential impairment and an impairment loss is recognized in the amount by which the carrying value of a reporting unit’s goodwill exceeds its fair value. The fair values of the Company's reporting units are determined by using a weighted average of a market approach and an income approach. Under the market approach, fair values are estimated using published market multiples for comparable companies. The Company calculates fair values under the income approach by taking estimated future cash flows that are based on internal projections and other assumptions deemed reasonable by management and discounting them using an estimated weighted average cost of capital. The Company’s intangible assets not subject to amortization consist principally of its trade names. The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for certain customer relationships amortized on an accelerated method) over the following estimated useful lives: Customer relationships 6 to 17 years Intellectual property 7 to 22 years Other 5 to 20 years Amortization expense of intellectual property is recorded as a component of cost of sales and amortization expense of customer relationships is recorded as a component of selling, general and administrative ("SG&A") expenses in the Company’s Consolidated Statements of Operations. The Company tests each non-amortizing intangible asset for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. To derive the fair value of its trade names, the Company utilizes an income approach, which relies upon management's assumptions of royalty rates, projected revenues and discount rates. The Company also tests each amortizing intangible asset for impairment if events or circumstances indicate that the asset might be impaired. The test consists of determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The determination of fair value requires management to make a number of estimates, assumptions and judgments of such factors as projected revenues and earnings and discount rates. Customer Rebates and Credits The Company records accrued customer rebates and credits as a component of accrued expenses and other current liabilities in its Consolidated Balance Sheets. These amounts generally relate to discounts negotiated with customers as part of certain sales contracts that are usually tied to sales volume thresholds. The Company accrues customer rebates and credits as a reduction within net sales as the revenue is recognized based on the estimated level of discount rate expected to be earned by each customer over the life of the contractual rebate period (generally one year). Accrued customer rebates and credits are monitored by management and discount levels are updated at least quarterly. Product Warranties Product warranty liabilities are estimated at the time of shipment and recorded as a component of accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The amount recognized is based on historical claims experience. Defined Benefit Pension Plan In connection with a prior year acquisition, the Company assumed a frozen qualified defined benefit pension plan (the "Plan"). The Plan's benefits are based on employee compensation and years of service; however, the accrued benefit for Plan participants was fixed as of the date of acquisition. The Company uses an actuarial valuation to determine the projected benefit obligation of the Plan and records the difference between the fair value of the Plan's assets and the projected benefit obligation as of October 31 in other long-term liabilities in its Consolidated Balance Sheets, but reclassifies any excess funded amounts to other long-term assets. Additionally, any actuarial gain or loss that arises during a fiscal year that is not recognized as a component of net periodic pension income or expense is recorded as a component of other comprehensive income or (loss), net of tax. The following table presents the fair value of the Plan's assets and projected benefit obligation as of October 31, for each of the last two fiscal years (in thousands): As of October 31, 2022 2021 Fair value of plan assets $10,106 $13,116 Projected benefit obligation 9,924 13,979 Funded status $182 ($863) Revenue Recognition The Company recognizes revenue when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to receive in exchange for the good or service. The Company’s performance obligations are satisfied and control is transferred either at a point-in-time or over-time. The majority of the Company’s revenue is recognized at a point-in-time when control is transferred, which is generally evidenced by the shipment or delivery of the product to the customer, a transfer of title, a transfer of the significant risks and rewards of ownership, and customer acceptance. For certain contracts under which the Company produces products with no alternative use and for which it has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date and for certain other contracts under which the Company creates or enhances a customer-owned asset while performing repair and overhaul services, control is transferred to the customer over-time. The Company recognizes revenue using an over-time recognition model for these types of contracts. The Company accounts for a contract with a customer when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect the consideration to which it is entitled to receive. Customer payment terms related to the sale of products and the rendering of services vary by Company subsidiary and product line. The time between receipt of payment and recognition of revenue for satisfaction of the related performance obligation is not significant. A performance obligation is a promise within a contract to transfer a distinct good or service to the customer in exchange for payment and is the unit of account for recognizing revenue. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The majority of the Company’s contracts have a single performance obligation to transfer goods or services. For contracts with more than one performance obligation, the Company allocates the transaction price to each performance obligation based on its estimated standalone selling price. When standalone selling prices are not available, the transaction price is allocated using an expected cost plus margin approach as pricing for such contracts is typically negotiated on the basis of cost. The Company accounts for contract modifications prospectively when the remaining goods or services are distinct and on a cumulative catch-up basis when the remaining goods or services are not distinct. The Company provides assurance type warranties on many of its products and services. Since customers cannot purchase such warranties independently of the products or services under contract and they are not priced separately, warranties are not separate performance obligations. The Company utilizes the cost-to-cost method as a measure of progress for performance obligations that are satisfied over-time as it believes this input method best represents the transfer of control to the customer. Under this method, revenue for the current period is recorded at an amount equal to the ratio of costs incurred to date divided by total estimated contract costs multiplied by (i) the transaction price, less (ii) cumulative revenue recognized in prior periods. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Under the cost-to-cost method, the extent of progress toward completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. These projections require the Company to make numerous assumptions and estimates relating to items such as the complexity of design and related development costs, performance of subcontractors, availability and cost of materials, labor productivity and cost, overhead, capital costs, and manufacturing efficiency. The Company reviews its cost estimates on a periodic basis, or when circumstances change and warrant a modification to a previous estimate. Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends and other economic projections. For certain contracts with similar characteristics and for which revenue is recognized using an over-time model, the Company uses a portfolio approach to estimate the amount of revenue to recognize. For each portfolio of contracts, the respective work in process and/or finished goods inventory balances are identified and the portfolio-specific margin is applied to estimate the pro rata portion of the transaction price to recognize in relation to the costs incurred. This approach is utilized only when the resulting revenue recognition is not expected to be materially different than if the accounting was applied to the individual contracts. Certain of the Company’s contracts give rise to variable consideration when they contain items such as customer rebates, credits, volume purchase discounts, penalties and other provisions that may impact the total consideration the Company will receive. The Company includes variable consideration in the transaction price generally by applying the most likely amount method of the consideration that it expects to be entitled to receive based on an assessment of all available information (i.e., historical experience, current and forecasted performance) and only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty is resolved. The Company estimates variable consideration by applying the most likely amount method when there are a limited number of outcomes related to the resolution of the variable consideration. See Note 6, Revenue, for additional information regarding the Company’s revenue recognition policy. Changes in estimates that result in adjustments to net sales and cost of sales are recognized as necessary in the period they become known on a cumulative catch-up basis. Changes in estimates did not have a material effect on net income from consolidated operations in fiscal 2022, 2021 and 2020. Stock-Based Compensation The Company records compensation expense associated with stock options in its Consolidated Statements of Operations based on the grant date fair value of those awards. The fair value of each stock option on the date of grant is estimated using the Black-Scholes pricing model based on certain valuation assumptions. Expected stock price volatility is based on the Company’s historical stock prices over the expected life of the option grant and other factors. The risk-free interest rate used is based on the published U.S. Treasury yield curve in effect at the time of the option grant for instruments with a similar life. The dividend yield reflects the Company’s expected dividend yield at the date of grant. The expected option life represents the period of time that the stock options are expected to be outstanding, taking into consideration the contractual term of the option grant and employee historical exercise behavior. The Company’s historical rate of forfeiture is nominal and therefore not included when estimating the grant date fair value of stock option awards. As such, the Company recognizes the impact of forfeitures when they occur. The Company generally recognizes stock option compensation expense ratably over the award’s vesting period. Income Taxes Income tax expense includes U.S. and foreign income taxes. Deferred income taxes are provided on elements of income that are recognized for financial reporting purposes in periods different from when recognized for income tax purposes. Deferred tax assets and liabilities are recognized for the tax effects of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company's policy is to recognize interest and penalties related to income tax matters as a component of income tax expense and to treat any tax on Global Intangible Low-Taxed Income ("GILTI") as a current period income tax expense. Further information regarding income taxes can be found in Note 7, Income Taxes. Redeemable Noncontrolling Interests As further detailed in Note 13, Redeemable Noncontrolling Interests, the holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that require the Company to provide cash consideration for their equity interests (the “Redemption Amount”) at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. The Put Rights are embedded in the shares owned by the noncontrolling interest holders and are not freestanding. The Company tracks the carrying cost of such redeemable noncontrolling interests at historical cost plus an allocation of subsidiary earnings based on ownership interest, less dividends paid to the noncontrolling interest holders. Redeemable noncontrolling interests are recorded outside of permanent equity at the higher of their carrying cost or management’s estimate of the Redemption Amount. The initial adjustment to record redeemable noncontrolling interests at the Redemption Amount results in a corresponding decrease to retained earnings. Subsequent adjustments to the Redemption Amount of redeemable noncontrolling interests may result in corresponding decreases or increases to retained earnings, provided any increases to retained earnings may only be recorded to the extent of decreases previously recorded. Adjustments to Redemption Amounts based on fair value will have no effect on net income per share attributable to HEICO shareholders whereas the portion of periodic adjustments to the carrying amount of redeemable noncontrolling interests based solely on a multiple of future earnings that reflect a redemption amount in excess of fair value will affect net income per share attributable to HEICO shareholders. Acquisitions of redeemable noncontrolling interests are treated as equity transactions. Net Income per Share Attributable to HEICO Shareholders Basic net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period. Diluted net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period plus potentially dilutive common shares arising from the assumed exercise of stock options, if dilutive. The dilutive impact of potentially dilutive common shares is determined by applying the treasury stock method. Foreign Currency All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end exchange rates, while revenue and expenses are translated using average exchange rates for the period. Unrealized translation gains or losses are reported as foreign currency translation adjustments through other comprehensive income or (loss) in shareholders’ equity. Transaction gains or losses related to monetary balances denominated in a currency other than the functional currency are recorded in the Company's Consolidated Statements of Operations. Contingencies Losses for contingencies such as product warranties, litigation and environmental matters are recognized in income when they are probable and can be reasonably estimated. Gain contingencies are not recognized in income until they have been realized. New Accounting Pronouncement |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Oct. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS In September 2022, the Company, through a subsidiary of HEICO Electronic, acquired 100% of the stock of TRAD Tests & Radiations SAS (“TRAD”). TRAD specializes in radiation engineering, including test and simulation of radiation effects on electronic components and materials, developing and providing software for radiation testing and effects modeling, and sourcing/screening radiation tolerant and radiation hardened components. The purchase price of this acquisition was paid in cash using cash provided by operating activities. In September 2022, the Company, through a subsidiary of HEICO Electronic, acquired 80.36% of the stock of Ironwood Electronics, Inc. ("Ironwood"). Ironwood designs and manufactures high performance test sockets and adapters for both engineering and production use of semiconductor devices. The remaining 19.64% interest continues to be owned by certain members of Ironwood's management team (see Note 13, Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual of $6.4 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Ironwood meet certain earnings objectives following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. In August 2022, the Company, through HEICO Electronic, 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. 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. 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 13, 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. 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 13, 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. 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. In October 2021, the Company, through a subsidiary of HEICO Electronic, acquired all of the outstanding stock of Paciwave, Inc. ("Paciwave"). Paciwave is a designer and manufacturer of Radio Frequency (RF) and microwave components and integrated assemblies specializing particularly in PIN Diode Switches, PIN Attenuators, PIN Limiters, Switching Assemblies and integrated subsystems found in defense and other complex electronic applications. The purchase price of this acquisition was paid in cash using cash provided by operating activities. In September 2021, the Company, through HEICO Electronic, acquired 80.1% of the stock of R.H. Laboratories, Inc. ("RH Labs"). RH Labs designs and manufactures state-of-the-art RF and microwave integrated assemblies, sub-assemblies and components used in a broad range of demanding defense applications operating in harsh environments including Space. The remaining 19.9% interest continues to be owned by certain members of RH Lab's management team (see Note 13, Redeemable Noncontrolling Interests, for additional information). The purchase price of this acquisition was paid in cash using cash provided by operating activities. In August 2021, the Company, through HFSC, acquired 89% of the membership interests of Ridge HoldCo, LLC, which owns all of Ridge Engineering, Inc. ("Ridge") and The Bechdon Company, Inc. ("Bechdon"). Ridge performs tight-tolerance machining and brazing of large-sized parts in mission-critical defense and aerospace applications. Bechdon provides machining, fabrication and welding services for aerospace, defense and other industrial applications. The remaining 11% interests continue to be owned by certain members of Ridge’s and Bechdon's management teams (see Note 13, Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual of $18.3 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Ridge and Bechdon 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 using cash provided by operating activities. In June 2021, the Company, through HFSC, acquired certain assets and liabilities of Camtronics, LLC ("Camtronics"). Camtronics is a Federal Aviation Administration ("FAA")-certified Part 145 repair station with extensive proprietary FAA-designated engineering representative repairs for a variety of domestic and international commercial and cargo airlines. As a result of the transaction, HFSC has an 80.1% interest in Camtronics. Additionally, the noncontrolling interest holders of an 84% owned subsidiary of HFSC have a 9.9% interest in Camtronics and the remaining 10% interest continues to be owned by certain members of Camtronics' management team (see Note 13, Redeemable Noncontrolling Interests, for additional information). The purchase price of this acquisition was paid in cash using cash provided by operating activities. In March 2021, the Company, through HEICO Electronic, acquired all of the business, assets and certain liabilities of Pyramid Semiconductor LLC ("Pyramid"). Pyramid is a specialty semiconductor designer and manufacturer offering a well-developed line of processors, static random-access memory (SRAM), electronically erasable programmable read-only memory (EEPROM) and Logic products on a diverse array of military, space and medical platforms. The purchase price of this acquisition was paid in cash using cash provided by operating activities. In August 2020, the Company, through HEICO Electronic, acquired 89.99% of the equity interests of Connect Tech Inc. ("Connect Tech"). Connect Tech designs and manufacturers rugged, small-form-factor embedded computing solutions. Connect Tech's components are designed for very harsh environments and are primarily used in rugged commercial and industrial, aerospace and defense, transportation, and smart energy applications. The remaining 10.01% interest continues to be owned by a certain member of Connect Tech's management team (see Note 13, Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual of $9.7 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Connect Tech meet certain earnings objectives following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. In August 2020, the Company, through a newly formed subsidiary of HEICO Electronic, acquired all of the equity interests of Transformational Security, LLC and Intelligent Devices, Inc. (collectively, "TSID"). TSID develops and manufactures state-of-the-art Technical Surveillance Countermeasures ("TSCM") equipment used to protect critical spaces from exploitation via wireless transmissions, technical surveillance and listening devices. The subsidiary of HEICO Electronic that completed the acquisition is 75% owned by HEICO Electronic and 25% owned by the noncontrolling interest holders of a subsidiary of HEICO Electronic that is also a designer and manufacturer of TSCM equipment (see Note 13, Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual of $14.0 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should TSID meet certain earnings objectives following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. In June 2020, the Company, through HFSC, acquired 70% of the membership interests of Rocky Mountain Hydrostatics, LLC ("Rocky Mountain"). Rocky Mountain overhauls industrial pumps, motors, and other hydraulic units with a focus on the support of legacy systems for the U.S. Navy. The remaining 30% interest continues to be owned by certain members of Rocky Mountain's management team (see Note 13, Redeemable Noncontrolling Interests, for additional information). In May 2020, a subsidiary of HEICO Electronic obtained 100% ownership of the assets and liabilities of Freebird Semiconductor Corporation ("Freebird"), an entity in which the subsidiary held a controlling financial interest since November 2018. In June 2020, the HEICO Electronic subsidiary contributed the assets and liabilities of Freebird in exchange for a 49% equity interest in EPC Space LLC ("EPC”), which the Company accounts for under the equity method. As the fair value of the net assets contributed approximated the fair value of the equity interest received in EPC, no material gain or loss was recorded as a result of this transaction. EPC designs, develops, promotes, markets and sells radiation-hardened gallium nitride power solutions packaged for use in outer space and other high reliability applications. In December 2019, the Company, through a subsidiary of HEICO Electronic, acquired 100% of the business and assets of the Human-Machine Interface ("HMI") product line of Spectralux Corporation. HMI designs, manufactures, and repairs flight deck annunciators, panels, indicators, and illuminated keyboards, as well as lighting controls, and flight deck lighting. In December 2019, the Company, through HEICO Electronic, acquired 80.1% of the stock of Quell Corporation ("Quell"). Quell designs and manufactures electromagnetic interference (EMI)/radio-frequency interference (RFI) and transient protection solutions for a wide variety of connectors that principally serve customers within the aerospace and defense markets. The remaining 19.9% interest continues to be owned by certain members of Quell's management team (see Note 13, Redeemable Noncontrolling Interests, for additional information). Unless otherwise noted, the purchase price of each of the above referenced acquisitions was paid in cash, principally using proceeds from the Company's revolving credit facility, and is not material or significant to the Company's consolidated financial statements. The following table summarizes the aggregate total consideration for the Company's acquisitions based on the year of acquisition (in thousands): Year ended October 31, 2022 2021 2020 Cash paid $348,606 $136,995 $165,290 Less: cash acquired (1,852) (616) (1,323) Cash paid, net 346,754 136,379 163,967 Issuance of common stock for an acquisition 75,005 — — Contingent consideration 29,732 18,334 23,719 Additional purchase consideration 4,000 292 144 Total consideration $455,491 $155,005 $187,830 The following table summarizes the allocation of the aggregate total consideration for the Company's acquisitions to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands, and based on the year of acquisition): Year ended October 31, 2022 2021 2020 Assets acquired: Goodwill $244,042 $59,445 $114,391 Customer relationships 132,199 30,910 44,740 Intellectual property 45,265 23,920 27,120 Trade names 41,784 9,920 12,410 Property, plant and equipment 26,472 24,613 4,000 Inventories 23,673 6,391 10,902 Accounts receivable 24,954 6,866 7,124 Contract assets 10,054 18,386 2,530 Other assets 6,917 1,126 980 Total assets acquired, excluding cash 555,360 181,577 224,197 Liabilities assumed: Deferred income taxes 22,470 414 10,434 Accrued expenses 12,765 4,502 2,787 Accounts payable 7,529 2,338 726 Other liabilities 417 266 197 Total liabilities assumed 43,181 7,520 14,144 Noncontrolling interests in consolidated subsidiaries 56,688 19,052 22,223 Net assets acquired, excluding cash $455,491 $155,005 $187,830 The following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in connection with the Company's fiscal 2022, 2021 and 2020 acquisitions (in years): Year ended October 31, 2022 2021 2020 Customer relationships 15 12 10 Intellectual property 13 13 11 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 allocation of the total consideration for the fiscal 2021 and 2020 acquisitions to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed is final and inclusive of any measurement period adjustments made during the respective subsequent fiscal year, which were immaterial. The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of the businesses acquired and the value of their assembled workforces that do not qualify for separate recognition, which, in the case of Ironwood, Accurate and Pioneer benefit both the Company and the noncontrolling interest holders. The fair value of the noncontrolling interests in Ironwood, Accurate and Pioneer was determined based on the consideration paid by the Company for its controlling ownership interest adjusted for a lack of control that a market participant would consider when estimating the fair value of the noncontrolling interest. The operating results of the fiscal 2022 acquisitions were included in the Company’s results of operations from each of the effective acquisition dates. The amount of net sales and earnings of the fiscal 2022 acquisitions included in the Consolidated Statement of Operations for the respectful fiscal year is not material. Had the fiscal 2022 acquisitions occurred as of November 1, 2020, net sales on a pro forma basis for fiscal 2022 would have been $2,325.2 million and net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for fiscal 2022 would not have been materially different than the reported amounts. The following table presents unaudited pro forma financial information for fiscal 2021 as if the fiscal 2022 acquisitions had occurred as of November 1, 2020 (in thousands, except per share data): Year ended October 31, 2021 Net sales $2,043,464 Net income from consolidated operations $349,208 Net income attributable to HEICO $319,660 Net income per share attributable to HEICO shareholders: Basic $2.35 Diluted $2.31 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. The operating results of the fiscal 2021 and 2020 acquisitions were included in the Company’s results of operations from each of the effective acquisition dates. The amount of net sales and earnings of the fiscal 2021 and 2020 acquisitions included in the Consolidated Statement of Operations for the respectful fiscal year is not material. Had the fiscal 2021 and 2020 acquisitions occurred as of the beginning of the respective prior fiscal year, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for fiscal 2021 and 2020, and fiscal 2020, respectively, would not have been materially different than the reported amounts. On July 26, 2022, the Company, through HEICO Electronic, entered into a Put Option Agreement with IK Partners and certain other parties thereto (collectively, the “Sellers”). Pursuant to the Put Option Agreement and a Stock Purchase Agreement attached to the Put Option Agreement (the “Purchase Agreement” and, together with the Put Option Agreement, the “Acquisition Agreements”), the Company has committed to acquire Exxelia International (“Exxelia”) from an affiliate of IK Partners and the Sellers for €453 million, or approximately $449 million as of October 31, 2022, in cash to be paid at closing plus the assumption of approximately €14 million, or approximately $14 million as of October 31, 2022, of liabilities pursuant to the terms, and subject to the conditions, set forth in the Acquisition Agreements. On August 5, 2022, pursuant to the exercise of the Put Option Agreement, the Company entered into the Purchase Agreement to purchase Exxelia. 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. Exxelia's management and team members are expected to continue to own a minority interest of around 5% of the business. The purchase price of this acquisition is expected to be paid in cash, principally using proceeds from the Company's revolving credit facility. The closing of the transaction, which is expected to occur in the first quarter of fiscal 2023, is subject to customary closing conditions, including, among others, obtaining a required foreign antitrust clearance and foreign investment authorizations. |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Oct. 31, 2022 | |
Selected Financial Statement Information [Abstract] | |
Additional Financial Information Disclosure [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable As of October 31, (in thousands) 2022 2021 Accounts receivable $303,181 $255,793 Less: Allowance for doubtful accounts (8,333) (10,874) Accounts receivable, net $294,848 $244,919 Inventories As of October 31, (in thousands) 2022 2021 Finished products $285,024 $238,867 Work in process 59,739 44,887 Materials, parts, assemblies and supplies 237,708 194,296 Inventories, net of valuation reserves $582,471 $478,050 Property, Plant and Equipment As of October 31, (in thousands) 2022 2021 Land $17,579 $11,363 Buildings and improvements 148,598 134,150 Machinery, equipment and tooling 322,252 297,297 Construction in progress 14,533 7,784 502,962 450,594 Less: Accumulated depreciation and amortization (277,083) (256,956) Property, plant and equipment, net $225,879 $193,638 The amounts set forth above include tooling costs having a net book value of $6.0 million and $6.8 million as of October 31, 2022 and 2021, respectively. Amortization expense on capitalized tooling was $2.5 million, $2.8 million and $3.2 million in fiscal 2022, 2021 and 2020, respectively. Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $30.3 million, $27.8 million and $27.1 million in fiscal 2022, 2021 and 2020, respectively. Accrued Expenses and Other Current Liabilities As of October 31, (in thousands) 2022 2021 Accrued employee compensation and related payroll taxes $130,837 $121,200 Contract liabilities 58,757 32,738 Contingent consideration 28,849 — Accrued customer rebates and credits 17,938 13,237 Current operating lease liabilities 14,656 13,874 Other 39,162 25,808 Accrued expenses and other current liabilities $290,199 $206,857 The increase in contingent consideration reflects the current portion of contingent consideration pertaining to subsidiaries acquired by the ETG in fiscal 2017 and fiscal 2020 (see Note 8, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligations). See Note 6, Revenue, for additional information pertaining to the increase in contract liabilities. The total customer rebates and credits deducted within net sales in fiscal 2022, 2021 and 2020 was $7.6 million, $3.3 million and $4.6 million, respectively. The increase in total customer rebates and credits deducted within net sales in fiscal 2022 principally reflects an increase in the net sales volume of certain commercial aerospace customers eligible for rebates mainly resulting from the fiscal 2022 net sales growth. Other Long-Term Assets and Liabilities The Company provides eligible employees, officers and directors of the Company the opportunity to voluntarily defer base salary, bonus payments, commissions, long-term incentive awards and directors fees, as applicable, on a pre-tax basis through the HEICO Corporation Leadership Compensation Plan (the “LCP”), a nonqualified deferred compensation plan that conforms to Section 409A of the Internal Revenue Code. The Company matches 50% of the first 6% of base salary deferred by each participant. Director fees that would otherwise be payable in Company common stock may be deferred into the LCP, and, when distributable, are distributed in actual shares of Company common stock. The deferred compensation obligation associated with Company common stock is recorded as a component of shareholders’ equity at cost and subsequent changes in fair value are not reflected in operations or shareholders’ equity of the Company. Further, while the Company has no obligation to do so, the LCP also provides the Company the opportunity to make discretionary contributions. The Company’s matching contributions and any discretionary contributions are subject to vesting and forfeiture provisions set forth in the LCP. Company contributions to the LCP charged to income in fiscal 2022, 2021 and 2020 totaled $7.2 million, $7.1 million and $4.7 million, respectively. The aggregate liabilities of the LCP were $203.0 million and $244.3 million as of October 31, 2022 and 2021, respectively, and are classified within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $204.7 million and $245.6 million as of October 31, 2022 and 2021, respectively, are classified within other assets in the Company's Consolidated Balance Sheets and principally represent cash surrender values of life insurance policies that are held within an irrevocable trust that may be used to satisfy the obligations of the LCP. Additional information regarding the assets of the LCP may be found in Note 8, Fair Value Measurements. Research and Development Expenses The amount of new product research and development ("R&D") expenses included in cost of sales is as follows (in thousands): Year ended October 31, 2022 2021 2020 R&D expenses $76,061 $68,877 $65,559 Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss during fiscal 2022 and 2021 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2020 ($6,460) ($2,689) ($9,149) Unrealized (loss) gain (529) 991 462 Amortization of unrealized loss — 135 135 Balances as of October 31, 2021 (6,989) (1,563) (8,552) Unrealized (loss) gain (38,380) 368 (38,012) Amortization of unrealized loss — 65 65 Balances as of October 31, 2022 ($45,369) ($1,130) ($46,499) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Oct. 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 during fiscal 2022 and 2021 are as follows (in thousands): Segment Consolidated FSG ETG Totals Balances as of October 31, 2020 $427,565 $955,602 $1,383,167 Goodwill acquired 40,308 26,142 66,450 Foreign currency translation adjustments 227 540 767 Adjustments to goodwill 188 (177) 11 Balances as of October 31, 2021 468,288 982,107 1,450,395 Goodwill acquired 106,919 137,123 244,042 Foreign currency translation adjustments (6,335) (8,672) (15,007) Adjustments to goodwill (6,911) (94) (7,005) Balances as of October 31, 2022 $561,961 $1,110,464 $1,672,425 The goodwill acquired during fiscal 2022 and 2021 pertains to the acquisitions consummated in those respective years as described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Consolidated Statements of Comprehensive Income. The adjustments to goodwill in fiscal 2022 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 $99 million and $55 million of the goodwill acquired in fiscal 2022 and 2021, respectively, will be deductible for income tax purposes. Based on the annual test for goodwill impairment as of October 31, 2022, the Company determined there is no impairment of its goodwill and the fair value of each of the Company’s reporting units significantly exceeded their carrying value. Identifiable intangible assets consist of the following (in thousands): As of October 31, 2022 As of October 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizing Assets: Customer relationships $539,529 ($208,127) $331,402 $464,506 ($221,098) $243,408 Intellectual property 284,171 (98,983) 185,188 255,011 (94,313) 160,698 Other 8,700 (7,017) 1,683 8,841 (6,844) 1,997 832,400 (314,127) 518,273 728,358 (322,255) 406,103 Non-Amortizing Assets: Trade names 215,054 — 215,054 176,204 — 176,204 $1,047,454 ($314,127) $733,327 $904,562 ($322,255) $582,307 The increase in the gross carrying amount of customer relationships, intellectual property and trade names as of October 31, 2022 compared to October 31, 2021 principally relates to such intangible assets recognized in connection with the fiscal 2022 acquisitions (see Note 2, Acquisitions). Amortization expense related to intangible assets was $62.5 million, $61.3 million and $57.4 million in fiscal 2022, 2021 and 2020, respectively. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $66.1 million in fiscal 2023, $61.0 million in fiscal 2024, $56.5 million in fiscal 2025, $51.9 million in fiscal 2026, $48.7 million in fiscal 2027 and $234.1 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): As of October 31, 2022 2021 Borrowings under revolving credit facility $275,000 $225,000 Finance leases and notes payable (1) 15,274 11,498 290,274 236,498 Less: Current maturities of long-term debt (1,654) (1,515) $288,620 $234,983 (1) See Note 9, Leases, for additional information regarding the Company's finance leases. The Company's borrowings under its revolving credit facility mature in fiscal 2025. As of October 31, 2022 and 2021, the weighted average interest rate on borrowings under the Company's revolving credit facility was 4.6% and 1.1%, respectively. The revolving credit facility contains both financial and non-financial covenants. As of October 31, 2022, the Company was in compliance with all such covenants. Revolving Credit Facility In November 2017, the Company entered into a $1.3 billion Revolving Credit Facility Agreement ("Credit Facility") with a bank syndicate. The Credit Facility may be used to finance acquisitions and for working capital and other general corporate purposes, including capital expenditures. In December 2020, the Company entered into an amendment to increase the capacity by $200 million to $1.5 billion. The Credit Facility includes a feature that will allow the Company to increase the capacity by $350 million to become a $1.85 billion facility through increased commitments from existing lenders. In April 2022, the Company entered into an amendment to extend the maturity date of its 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 (Notes)
REVENUE (Notes) | 12 Months Ended |
Oct. 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 Consolidated Balance Sheets. Changes in the Company’s contract assets and liabilities during fiscal 2022 and 2021 are as follows (in thousands): October 31, 2022 October 31, 2021 Change Contract assets $93,978 $80,073 $13,905 Contract liabilities 58,757 32,738 26,019 Net contract assets $35,221 $47,335 ($12,114) The increase in the Company's contract assets during fiscal 2022 principally reflects the contract assets of certain businesses acquired during fiscal 2022. The increase in the Company's contract liabilities during fiscal 2022 reflects the receipt of advance deposits on certain customer contracts at both the ETG and FSG as well as the contract liabilities of certain businesses acquired during fiscal 2022. The amount of revenue that the Company recognized during fiscal 2022 that was included in contract liabilities as of the beginning of fiscal 2022 was $24.9 million. Remaining Performance Obligations As of October 31, 2022, the Company had $582.3 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 and aftermarket replacement parts product lines. The Company will recognize net sales as these obligations are satisfied. The Company expects to recognize $321.5 million of this amount during fiscal 2023 and $260.8 million thereafter, of which about half is expected to occur in fiscal 2024. Disaggregation of Revenue The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Year Ended October 31, 2022 2021 2020 Flight Support Group: Aftermarket replacement parts (1) $694,900 $535,217 $525,636 Repair and overhaul parts and services (2) 264,986 208,215 193,164 Specialty products (3) 295,326 183,657 206,012 Total net sales 1,255,212 927,089 924,812 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 672,147 709,621 679,901 Electronic component parts for equipment in various other industries (5) 300,328 249,549 195,086 Total net sales 972,475 959,170 874,987 Intersegment sales (19,365) (20,577) (12,790) Total consolidated net sales $2,208,322 $1,865,682 $1,787,009 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh 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 airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, and radiation assurance services and products. (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, rugged small form-factor embedded computing solutions and high performance test sockets and adaptors. The following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Year ended October 31, 2022 2021 2020 Flight Support Group: Aerospace $876,254 $660,867 $669,194 Defense and Space 316,460 224,236 213,273 Other (1) 62,498 41,986 42,345 Total net sales 1,255,212 927,089 924,812 Electronic Technologies Group: Defense and Space 545,384 599,570 577,581 Other (2) 340,311 284,834 225,749 Aerospace 86,780 74,766 71,657 Total net sales 972,475 959,170 874,987 Intersegment sales (19,365) (20,577) (12,790) Total consolidated net sales $2,208,322 $1,865,682 $1,787,009 (1) Principally industrial products. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The components of income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2022 2021 2020 Domestic $429,329 $345,733 $327,754 Foreign 61,694 41,325 37,101 Income before taxes and noncontrolling interests $491,023 $387,058 $364,855 The components of the provision for income taxes on income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2022 2021 2020 Current: Federal $63,861 $47,839 $17,730 State 13,015 11,639 4,167 Foreign 14,648 13,457 13,101 91,524 72,935 34,998 Deferred: Federal 8,154 (10,097) (3,364) State 1,129 (3,251) (55) Foreign (407) (2,287) (2,579) 8,876 (15,635) (5,998) Total income tax expense $100,400 $57,300 $29,000 A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows: Year ended October 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal income tax benefit 2.6 % 2.9 % 3.7 % Tax benefit related to stock option exercises (3.6 %) (3.7 %) (13.3 %) Tax-exempt losses (gains) on corporate-owned life insurance policies 2.8 % (2.9 %) (0.7 %) Research and development tax credits (1.5 %) (2.5 %) (2.4 %) Foreign derived intangible income deduction (1.9 %) (1.9 %) (1.6 %) Nondeductible compensation 1.2 % 1.2 % .4 % Other, net (.2 %) .7 % .8 % Effective tax rate 20.4 % 14.8 % 7.9 % The Company's effective tax rate in fiscal 2022 was 20.4%, as compared to 14.8% in fiscal 2021. The increase in the Company's effective tax rate principally reflects a 5.7% 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 fiscal 2022 as compared to the tax-exempt unrealized gains recognized on such policies in fiscal 2021. The Company's effective tax rate in fiscal 2021 was 14.8%, as compared to 7.9% in fiscal 2020. The Company recognized a discrete tax benefit from stock option exercises in fiscal 2021 and 2020 of $14.2 million and $48.3 million, respectively. The tax benefit from stock option exercises in both years was the result of strong appreciation in HEICO's stock price during the optionees' holding periods and the $34.1 million larger benefit recognized in fiscal 2020 was the result of more stock options exercised. Additionally, the effective tax rate in fiscal 2021 reflects the favorable impact of higher tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the LCP. The Company files income tax returns in the U.S. federal jurisdiction and in multiple state jurisdictions. The Company is also subject to income taxes in certain jurisdictions outside the U.S., none of which are individually material to the accompanying consolidated financial statements. Generally, the Company is no longer subject to U.S. federal, state or foreign examinations by tax authorities for years prior to fiscal 2018. One of the Company's foreign subsidiaries files income tax returns in The Netherlands and Thailand where the statute of limitations is open for its fiscal 2016 returns. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company believes that it is more likely than not that it will generate sufficient future taxable income to utilize all of its deferred tax assets and has therefore not recorded a valuation allowance on any such asset. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of October 31, 2022 2021 Deferred tax assets: Inventories $51,505 $41,354 Deferred compensation plan liability 42,285 54,726 Operating lease liabilities 20,043 16,483 Share-based compensation 9,177 8,759 Performance-based compensation accrual 4,482 4,615 Customer rebates accrual 3,323 2,236 Vacation accrual 2,127 1,910 Allowance for doubtful accounts receivable 1,598 2,532 Deferred payroll taxes 1,262 2,372 Other 12,687 9,102 Total deferred tax assets 148,489 144,089 Deferred tax liabilities: Goodwill and other intangible assets (176,436) (145,024) Property, plant and equipment (21,746) (19,580) Operating lease right-of-use assets (19,344) (15,941) Adoption of ASC 606 (revenue recognition) (388) (2,677) Other (1,737) (1,628) Total deferred tax liabilities (219,651) (184,850) Net deferred tax liability ($71,162) ($40,761) As of October 31, 2022 and 2021, the Company’s liability for gross unrecognized tax benefits related to uncertain tax positions was $3.5 million and $4.1 million, respectively, of which $2.8 million and $3.2 million, respectively, would decrease the Company’s income tax expense and effective income tax rate if the tax benefits were recognized. A reconciliation of the activity related to the liability for gross unrecognized tax benefits during fiscal 2022 and 2021 is as follows (in thousands): Year ended October 31, 2022 2021 Balances as of beginning of year $4,072 $2,946 Increases related to current year tax positions 870 710 Increases related to prior year tax positions — 839 Decreases related to prior year tax positions (286) — Settlements (522) — Lapses of statutes of limitations (631) (423) Balances as of end of year $3,503 $4,072 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Oct. 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 October 31, 2022 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $201,239 $— $201,239 Money market fund 3,477 — — 3,477 Total assets $3,477 $201,239 $— $204,716 Liabilities: Contingent consideration $— $— $82,803 $82,803 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 Consolidated Balance Sheets. As part of the agreement to acquire 80.36% of the stock of a subsidiary by the ETG in fiscal 2022, the Company may be obligated to pay contingent consideration of up to $12.1 million in fiscal 2027 based on the earnings of the acquired entity during fiscal years 2025 and 2026 provided the entity meets a certain earnings objective during each of fiscal years 2024 to 2026. As of October 31, 2022, the estimated fair value of the contingent consideration was $6.3 million. 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 October 31, 2022, the estimated fair value of the contingent consideration was $12.7 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 October 31, 2022, the estimated fair value of the contingent consideration was $9.1 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 October 31, 2022, the estimated fair value of the contingent consideration was $18.0 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 $19.8 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 would be payable in the following year. The subsidiary achieved the required earnings objective during fiscal years 2021 and 2022 and half of the contingent consideration obligation, or CAD $13.5 million ($9.9 million), is payable in fiscal 2023. As of October 31, 2022, the estimated fair value of the remaining half of the contingent consideration was CAD $10.7 million, or $7.8 million. As part of the agreement to acquire a subsidiary by the ETG in fiscal 2020, the Company may be obligated to pay contingent consideration of up to $35.0 million in fiscal 2025 based on the earnings of the acquired entity during calendar years 2023 and 2024 provided the entity meets certain earnings objectives during each of calendar years 2021 to 2024. The subsidiary is currently experiencing lower demand for its defense products and is not expected to meet its calendar year 2022 earnings objective. Accordingly, the $13.3 million estimated fair value of contingent consideration as of October 31, 2021 was reversed, principally in the second half of fiscal 2022. 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 October 31, 2022, the estimated fair value of the contingent consideration was $18.9 million. The estimated fair value of the contingent consideration arrangements described above are classified within Level 3 and were determined using probability-based scenario analyses. Under this method, a set of discrete potential future subsidiary earnings was determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood was assigned to each discrete potential future earnings estimate and the resultant contingent consideration was calculated. The resulting probability-weighted contingent consideration amounts were discounted using a weighted average discount rate reflecting the credit risk of HEICO. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's consolidated statements of operations. The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of October 31, 2022 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 9-1-2022 $6,308 Compound annual revenue growth rate 0% - 17% 14% Discount rate 8.5% - 8.5% 8.5% 7-18-2022 12,739 Compound annual revenue growth rate 0% - 5% 3% Discount rate 8.5% - 8.5% 8.5% 3-17-2022 9,127 Compound annual revenue growth rate (3%) - 8% 3% Discount rate 7.4% - 7.4% 7.4% 8-4-2021 17,957 Compound annual revenue growth rate 3% - 10% 8% Discount rate 8.5% - 9.0% 8.6% 8-18-2020 17,723 Compound annual revenue growth rate 15% - 24% 22% Discount rate 9.0% - 9.0% 9.0% 9-15-2017 18,949 Compound annual revenue growth rate 0% - 5% 3% Discount rate 5.9% - 5.9% 5.9% (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) during fiscal 2022 and 2021 are as follows (in thousands): Liabilities Balance as of October 31, 2020 $41,974 Contingent consideration related to acquisitions 18,334 Increase in accrued contingent consideration, net 1,246 Foreign currency transaction adjustments 732 Balance as of October 31, 2021 62,286 Contingent consideration related to acquisitions 29,732 Decrease in accrued contingent consideration, net (7,631) Foreign currency transaction adjustments (1,264) Payment of contingent consideration (320) Balance as of October 31, 2022 $82,803 Included in the accompanying Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $28,849 Other long-term liabilities 53,954 $82,803 The Company records changes in accrued contingent consideration and foreign currency transaction adjustments within SG&A expenses |
LEASES
LEASES | 12 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES HEICO’s lease ROU assets represent its right to use an underlying asset during the lease term and its lease liabilities represent the Company’s obligation to make lease payments arising from the lease. HEICO’s operating lease ROU assets are included within other assets other long-term liabilities accrued expenses and other current liabilities property, plant and equipment, net long-term debt, net of current maturities current maturities of long-term debt Operating Leases Finance Leases 2022 2021 2022 2021 Right-of-use assets $89,752 $74,609 $15,786 $12,250 Current lease liabilities $14,656 $13,874 $1,620 $1,481 Long-term lease liabilities 76,965 61,829 13,376 9,764 Total lease liabilities $91,621 $75,703 $14,996 $11,245 The Company’s operating lease expenses are recorded within cost of sales and/or SG&A expenses in the Company’s Consolidated Statements of Operations. The Company's finance lease expenses consist of amortization of ROU assets and interest on lease liabilities, which are included within cost of sales and/or SG&A expenses, and interest expense, respectively, in the Company's Consolidated Statements of Operations. Further, interest expense on finance leases is recognized using the effective interest method based on the discount rate determined at lease commencement. The following table presents the components of lease expense for fiscal 2022 and 2021 (in thousands): Year ended October 31, 2022 2021 Operating Leases: Operating lease expense $19,877 $18,103 Variable lease expense 3,552 3,165 Total operating lease expense (1) $23,429 $21,268 Finance Leases: Amortization on finance lease ROU assets $1,540 $1,110 Interest on finance lease liabilities 578 453 Variable lease expense 319 750 Total finance lease expense $2,437 $2,313 (1) Excludes short-term lease expense, which is not material. The following table presents a maturity analysis of the Company's lease liabilities as of October 31, 2022 for the next five fiscal years and thereafter (in thousands): Operating Leases Finance Leases Year ending October 31, 2023 $18,925 $2,389 2024 17,549 2,283 2025 16,240 2,197 2026 12,941 2,177 2027 9,859 2,043 Thereafter 37,305 7,959 Total minimum lease payments 112,819 19,048 Less: imputed interest (21,198) (4,052) Present value of minimum lease payments $91,621 $14,996 The Company does not have any material leases that have been signed but have yet to commence as of October 31, 2022. The following table presents the weighted average remaining lease term and discount rate of the Company’s leases: Operating Leases Finance Leases 2022 2021 2022 2021 Weighted average remaining lease term (years) 7.9 9.1 9.0 9.2 Weighted average discount rate 5.4 % 4.7 % 5.5 % 4.6 % The following table presents supplemental disclosures of cash flow information associated with the Company's leases for fiscal 2022 and 2021 (in thousands): Operating Leases Finance Leases 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows $19,323 $17,999 $578 $453 Financing cash flows — — 1,568 1,187 Right-of-use assets obtained in exchange for new lease liabilities, net of terminations 31,865 31,351 5,373 2,861 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Oct. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | SHAREHOLDERS’ EQUITY Common Stock and Class A Common Stock The Company has two classes of common stock that are virtually identical in all economic respects except voting rights. Each share of Common Stock is entitled to one vote per share. Each share of Class A Common Stock is entitled to a 1/10 vote per share. Holders of the Company’s common stock are entitled to receive dividends and other distributions payable in cash, property, stock or otherwise, when and if declared by the Board of Directors. In the event of liquidation, after payment of debts and other liabilities of the Company, the remaining assets of the Company will be distributable ratably among the holders of both classes of common stock. Share Repurchases In 1990, the Company's Board of Directors authorized a share repurchase program, which allows the Company to repurchase shares of Company common stock in the open market or in privately negotiated transactions at the Company's discretion, subject to certain restrictions included in the Company's revolving credit agreement. As of October 31, 2022, the maximum number of shares that may yet be purchased under this program was 4,886,353 of either or both of the Company's Class A Common Stock and the Company's Common Stock. The repurchase program does not have a fixed termination date. During fiscal 2022, 2021 and 2020, the Company did not repurchase any shares of Company common stock under this program. During fiscal 2022, the Company repurchased an aggregate 104,867 shares and 87,593 shares of Class A Common Stock and Common Stock, respectively, at a total cost of $13.3 million and $12.7 million, respectively. During fiscal 2021, the Company repurchased an aggregate 32,355 shares of Class A Common Stock at a total cost of $3.8 million. During fiscal 2020, the Company repurchased an aggregate 127,851 shares of Class A Common Stock at a total cost of $12.1 million. The shares repurchased represent shares tendered as payments to satisfy employee withholding taxes due upon exercises of stock option awards. The shares repurchased in fiscal 2022, 2021 and 2020 did not impact the number of shares authorized for future purchase under the Company’s share repurchase program and are reflected as redemptions of common stock related to stock option exercises in the Company's Consolidated Statements of Shareholders' Equity and Consolidated Statements of Cash Flows. Issuance of Common Stock for an Acquisition |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | SHARE-BASED COMPENSATION The Company currently has one stock option plan, the HEICO Corporation 2018 Incentive Compensation Plan ("2018 Plan"), which enables the Company to grant various forms of share-based compensation awards including stock options, restricted stock, restricted stock awards and stock appreciation rights. The 2018 Plan became effective in fiscal 2018 and replaced the Company's 2012 Incentive Compensation Plan (“2012 Plan”). Options outstanding under the Company's 2012 Plan and Non-Qualified Stock Option Plan may be exercised pursuant to their terms. The total number of shares approved by the shareholders of the Company for the 2018 Plan is 5.0 million plus any options outstanding under the 2012 Plan as of the 2018 Plan's effective date that are subsequently forfeited or expire. A total of approximately 6.9 million shares of the Company's common stock are reserved for issuance to employees, directors, officers and consultants as of October 31, 2022, including 3.6 million shares currently under option and 3.3 million shares available for future grants. Stock options granted pursuant to the 2018 Plan may be designated as Common Stock and/or Class A Common Stock in such proportions as shall be determined by the Board of Directors or the Stock Option Plan Committee at its sole discretion. The exercise price per share of a stock option granted under the 2018 Plan may not be less than the fair market value of the designated class of Company common stock as of the date of grant and stock option grants vest ratably over a period specified as of the date of grant (generally five years) and expire ten years after the date of grant. Options issued under the 2018 Plan may be designated as incentive stock options or non-qualified stock options, but only employees are eligible to receive incentive stock options and no incentive stock options were outstanding as of October 31, 2022. The 2018 Plan will terminate no later than the tenth anniversary of its effective date. Information concerning share-based activity for each of the last three fiscal years ended October 31 is as follows (in thousands, except per share data): Shares Under Option Shares Available For Grant Shares Weighted Average Exercise Price Outstanding as of October 31, 2019 4,085 4,692 $33.73 Granted (29) 29 $97.00 Exercised — (720) $19.32 Cancelled 8 (8) $55.61 Outstanding as of October 31, 2020 4,064 3,993 $36.75 Granted (699) 699 $125.57 Exercised — (342) $21.88 Cancelled 9 (9) $64.78 Outstanding as of October 31, 2021 3,374 4,341 $52.16 Granted (56) 56 $120.76 Exercised — (762) $22.40 Cancelled 6 (6) $67.98 Outstanding as of October 31, 2022 3,324 3,629 $59.44 Information concerning stock options outstanding (all of which are vested or expected to vest) and stock options exercisable by class of common stock as of October 31, 2022 is as follows (in thousands, except per share and contractual life data): Options Outstanding Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Common Stock 1,546 $55.51 4.5 $165,640 Class A Common Stock 2,083 $62.36 5.5 135,292 3,629 $59.44 5.1 $300,932 Options Exercisable Number Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Common Stock 1,252 $40.86 3.7 $152,481 Class A Common Stock 1,457 $44.95 4.4 119,999 2,709 $43.06 4.1 $272,480 Information concerning stock options exercised is as follows (in thousands): Year ended October 31, 2022 2021 2020 Cash proceeds from stock option exercises $2,352 $5,344 $6,955 Tax benefit realized from stock option exercises 17,752 14,186 48,326 Intrinsic value of stock option exercises 86,015 33,428 53,384 Net income from consolidated operations for the fiscal years ended October 31, 2022, 2021 and 2020 includes compensation expense of $12.6 million, $9.1 million and $10.1 million, respectively, and an income tax benefit of $1.7 million, $1.5 million and $1.9 million, respectively, related to the Company’s stock options. Substantially all of the stock option compensation expense was recorded as a component of SG&A expenses in the Company’s Consolidated Statements of Operations. As of October 31, 2022, there was $29.6 million of pre-tax unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted average period of approximately 3.5 years. The total fair value of stock options that vested in fiscal 2022, 2021 and 2020 was $14.3 million, $9.4 million and $10.5 million, respectively. If there were a change in control of the Company, all of the unvested options outstanding as of October 31, 2022 would become immediately exercisable. The fair value of each stock option grant in fiscal 2022, 2021 and 2020 was estimated on the date of grant using the Black-Scholes option-pricing model based on the following weighted average assumptions: 2022 2021 2020 Class A Common Stock Common Stock Class A Common Stock Class A Common Stock Expected stock price volatility 32.61 % 30.17 % 32.65 % 24.94 % Risk-free interest rate 1.72 % 1.40 % 1.09 % 1.72 % Dividend yield .18 % .17 % .19 % .21 % Forfeiture rate .00 % .00 % .00 % .00 % Expected option life (years) 6 9 6 6 Weighted average fair value $41.00 $51.16 $39.00 $26.86 |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended |
Oct. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | EMPLOYEE RETIREMENT PLANS The HEICO Savings and Investment Plan (the “401(k) Plan”) is a qualified defined contribution retirement plan under which eligible employees of the Company and its participating subsidiaries may make Elective Deferral Contributions up to the limitations set forth in Section 402(g) of the Internal Revenue Code. The Company generally makes a 50% Employer Matching Contribution, as determined by the Board of Directors, based on a participant’s Elective Deferral Contribution up to 6% of the participant’s Compensation for the Elective Deferral Contribution period. The 401(k) Plan also provides that the Company may make additional Employer Contributions. Employer Contributions may be contributed in the form of the Company’s common stock or cash, as determined by the Company. Employer Contributions awarded in the form of Company common stock are valued based on the fair value of the underlying shares as of the effective date of contribution. Employer Contributions may be diversified by a participant into any of the participant-directed investment options of the 401(k) Plan; however, Employee Contributions may not be invested in Company common stock. Unless specified otherwise, all capitalized terms herein are defined in the 401(k) Plan document. Participants receive 100% vesting in Employee Contributions and on cash dividends received on Company common stock. Vesting in Employer Contributions is based on a participant’s number of Years of Service. Employer Contributions to the 401(k) Plan charged to income in fiscal 2022, 2021 and 2020 totaled $12.2 million, $10.1 million and $9.6 million, respectively, and were made through the issuance of new shares of Company common stock and the use of forfeited shares within the 401(k) Plan. Information concerning share-based activity pertaining to the 401(k) Plan for each of the last three fiscal years ended October 31 is as follows (in thousands): Common Stock Class A Common Stock Shares available for issuance as of October 31, 2019 280 280 Issuance of common stock to the 401(k) Plan (52) (52) Shares available for issuance as of October 31, 2020 228 228 Issuance of common stock to the 401(k) Plan (40) (40) Shares available for issuance as of October 31, 2021 188 188 Issuance of common stock to the 401(k) Plan (43) (43) Shares available for issuance as of October 31, 2022 145 145 |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Oct. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Temporary Equity Redeemable Noncontrolling Interests [Text Block] | REDEEMABLE NONCONTROLLING INTERESTS The holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 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 at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. The Redemption Amounts were determined using probability-adjusted internal estimates of future subsidiary earnings while considering the earliest exercise date, the measurement period and any applicable fair value adjustments. 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): As of October 31, 2022 2021 Redeemable at fair value $300,693 $217,416 Redeemable based on a multiple of future earnings 26,908 35,171 Redeemable noncontrolling interests $327,601 $252,587 A summary of the Put Rights associated with the redeemable noncontrolling interests in certain of the Company’s subsidiaries as of October 31, 2022 is as follows: Subsidiary Operating Company Earliest Purchase 2005 ETG 95.9% 2023 (1) 1 (3) 2006 FSG 80.1% 2023 (1) 4 2008 FSG 90.0% 2024 4 2009 ETG 82.5% 2023 (1) 1 2012 FSG 84.0% 2023 (1) 4 2012 FSG 80.1% 2027 4 (4) 2015 FSG 82.0% 2023 (1) 3 (5) 2015 FSG 80.1% 2023 (1) 4 2015 FSG 80.1% 2023 (2) 4 2015 ETG 80.1% 2023 (1) 2 2017 FSG 90.1% 2024 (2) 1 2018 ETG 85.0% 2023 (1) 1 2018 FSG 90.0% 2027 4 2019 ETG 92.7% 2023 4 2019 ETG 85.0% 2024 4 2019 FSG 80.1% 2026 4 2019 ETG 75.0% 2024 4 (6) 2020 ETG 80.1% 2025 4 2020 FSG 70.0% 2027 4 2020 ETG 75.0% 2024 4 (4) 2020 ETG 90.0% 2025 4 2021 FSG 80.1% 2026 4 2021 FSG 89.0% 2028 4 2021 ETG 80.1% 2024 3 (7) 2022 FSG 74.0% 2029 4 2022 FSG 96.0% 2029 4 2022 ETG 80.4% 2027 4 (1) Currently puttable. (2) Put Right previously exercised. (3) The Put Right for a 2.6% noncontrolling interest is to be purchased in a lump sum and the Put Right for the remaining 1.5% interest is to be purchased over a four-year period. (4) The Put Rights for a 14.9% noncontrolling interest and the remaining 5.0% interest may be exercised beginning in fiscal 2027 and 2029, respectively, with each purchase over a four-year period. (5) The Put Right for a 15% noncontrolling interest may be exercised in 5% increments annually and the first increment is currently puttable. The Put Right for the remaining 3% noncontrolling interest may be exercised in one-fifth increments beginning in fiscal 2028. (6) The exercise of the Put Right for either entity will automatically trigger a Put Right exercise for the other entity. (7) The Put Rights for an aggregate 13.5% noncontrolling interest may be exercised beginning in fiscal 2024 with the purchase over a three-year period. The Put Right for the remaining 6.4% noncontrolling interest may be exercised beginning in fiscal 2028 with the purchase over a four-year period. The estimated aggregate Redemption Amount of the Put Rights that are currently puttable, previously put, or becoming puttable during fiscal 2023 is approximately $103.2 million, of which approximately $56.3 million would be payable in fiscal 2023 should all of the eligible associated noncontrolling interest holders elect to exercise their Put Rights during fiscal 2023. Additionally, the Company has call rights to purchase the equity interests of the noncontrolling holders over the same purchase period as the Put Rights. During fiscal 2022, the holder of a 19.9% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2015 exercised their option to cause the Company to purchase their interests over a four-year period ending in fiscal 2026. 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 their 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 2020, the holder of a then 20% noncontrolling interest in the subsidiary exercised their option to cause the Company to purchase one-fourth of their interest in May 2020. 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. During fiscal 2020, the holder of a 17.7% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2008 exercised their option to cause the Company to purchase a portion of their noncontrolling interest over a two-year period ending in fiscal 2021. In June 2020, the Company acquired half of such interest, which increased the Company's ownership in the subsidiary to 86.2%. In May 2021, the Company acquired the second half of such interest, which increased the Company's ownership interest in the subsidiary to 90%. In May 2020, the Company obtained control of the 22% noncontrolling equity interest in a subsidiary of the ETG that was acquired in fiscal 2012, which increased the Company's ownership interest in the subsidiary to 100%. The $8.7 million, $2.3 million and $7.5 million aggregate Redemption Amounts for the redeemable noncontrolling interests acquired in fiscal 2022, 2021 and 2020, respectively, were paid using cash provided by operating activities. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 12 Months Ended |
Oct. 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): Year ended October 31, 2022 2021 2020 Numerator: Net income attributable to HEICO $351,675 $304,220 $313,984 Denominator: Weighted average common shares outstanding - basic 136,010 135,326 134,754 Effect of dilutive stock options 2,027 2,528 2,548 Weighted average common shares outstanding - diluted 138,037 137,854 137,302 Net income per share attributable to HEICO shareholders: Basic $2.59 $2.25 $2.33 Diluted $2.55 $2.21 $2.29 Anti-dilutive stock options excluded 749 185 258 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HFSC and their collective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries. The Company's operating segment reporting structure is consistent with how management reviews the business, makes investing and resource decisions and assesses operating performance. Additionally, characteristics such as similarity of products, customers, economic characteristics and various other factors are considered when identifying the Company's operating segments. The FSG designs and manufactures jet engine and aircraft component replacement parts, which are approved by the FAA. In addition, the FSG repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments for domestic and foreign commercial air carriers and aircraft repair companies as well as military and business aircraft operators. The FSG also manufactures and sells specialty parts as a subcontractor for aerospace and industrial original equipment manufacturers and the U.S government. Additionally, the FSG is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to the U.S. Department of Defense, defense prime contractors, and foreign military organizations allied with the U.S. Further, the FSG is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. The FSG also engineers, designs and manufactures thermal insulation blankets and parts as well as removable/reusable insulation systems for aerospace, defense, commercial and industrial applications; manufactures expanded foil mesh for lightning strike protection in fixed and rotary wing aircraft; distributes aviation electrical interconnect products and electromechanical parts; overhauls industrial pumps, motors, and other hydraulic units with a focus on the support of legacy systems for the U.S. Navy; and performs tight-tolerance machining, brazing, fabricating and welding services for aerospace, defense and other industrial applications. The ETG collectively designs, manufactures and sells various types of electronic, data and microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, emergency locator transmission beacons, flight deck annunciators, panels and indicators, electromagnetic and radio frequency interference shielding and filters, high power capacitor charging power supplies, amplifiers, traveling wave tube amplifiers, photodetectors, amplifier modules, microwave power modules, flash lamp drivers, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage power supplies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems; memory products, including three-dimensional microelectronic and stacked memory, static random-access memory (SRAM) and electronically erasable programmable read-only memory (EEPROM); harsh environment electronic connectors and other interconnect products, RF and microwave amplifiers, transmitters, and receivers and integrated assemblies, sub-assemblies and components; RF sources, detectors and controllers, wireless cabin control systems, solid state power distribution and management systems, crashworthy and ballistically self-sealing auxiliary fuel systems, nuclear radiation detectors, communications and electronic intercept receivers and tuners, fuel level sensing systems, high-speed interface products that link devices, high performance active antenna systems and airborne antennas for commercial and military aircraft, precision guided munitions, other defense applications and commercial uses; silicone material for a variety of demanding applications; precision power analog monolithic, hybrid and open frame components; high-reliability ceramic-to-metal feedthroughs and connectors, technical surveillance countermeasures (TSCM) equipment to detect devices used for espionage and information theft; rugged small-form factor embedded computing solutions; custom high power filters and filter assemblies; test sockets and adapters for both engineering and production use of semiconductor devices; and radiation assurance services and products. The Company’s reportable operating segments offer distinctive products and services that are marketed through different channels. They are managed separately because of their unique technology and service requirements. Segment Profit or Loss The accounting policies of the Company’s operating segments are the same as those described in Note 1, Summary of Significant Accounting Policies. Management evaluates segment performance based on segment operating income. Information on the Company’s two operating segments, the FSG and the ETG, for each of the last three fiscal years ended October 31 is as follows (in thousands): Segment Other, Primarily Corporate and Intersegment (1) Consolidated Totals FSG ETG Year ended October 31, 2022: Net sales $1,255,212 $972,475 ($19,365) $2,208,322 Depreciation 15,656 13,602 999 30,257 Amortization 24,268 40,690 1,118 66,076 Operating income 267,167 269,473 (39,796) 496,844 Capital expenditures 15,588 15,530 864 31,982 Year ended October 31, 2021: Net sales $927,089 $959,170 ($20,577) $1,865,682 Depreciation 13,992 12,839 973 27,804 Amortization 20,648 43,431 1,136 65,215 Operating income 151,930 277,306 (36,336) 392,900 Capital expenditures 8,915 26,496 772 36,183 Year ended October 31, 2020: Net sales $924,812 $874,987 ($12,790) $1,787,009 Depreciation 14,339 11,722 1,006 27,067 Amortization 19,957 40,553 984 61,494 Operating income 143,051 258,814 (25,217) 376,648 Capital expenditures 10,843 12,025 72 22,940 (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 As of October 31, FSG ETG 2022 $1,635,229 $2,230,744 $229,523 4,095,496 2021 $1,274,462 $1,952,413 $271,532 3,498,407 Major Customer and Geographic Information The Company markets its products and services in approximately 125 countries. The following table summarizes the Company’s net sales to customers located in the United States and to those in other countries for each of the last three fiscal years ended October 31 (in thousands). Net sales are attributed to countries based on the location of the customer. Net sales to any one customer or originating from any one foreign country did not account for 10% or more of the Company’s consolidated net sales during any of the last three fiscal years. The following table also summarizes the Company’s long-lived assets held within and outside of the United States as of October 31 for each of the last three fiscal years (in thousands). Long-lived assets consist of net property, plant and equipment. 2022 2021 2020 Net sales: United States of America $1,443,581 $1,194,869 $1,193,497 Other countries 764,741 670,813 593,512 Total net sales $2,208,322 $1,865,682 $1,787,009 Long-lived assets: United States of America $190,148 $155,537 $139,197 Other countries 35,731 38,101 29,651 Total long-lived assets $225,879 $193,638 $168,848 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees As of October 31, 2022, the Company has arranged for standby letters of credit aggregating $23.5 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 in fiscal 2022 and 2021 are as follows (in thousands): Year ended October 31, 2022 2021 Balances as of beginning of year $3,379 $3,015 Accruals for warranties 2,026 1,979 Acquired warranty liabilities 242 62 Warranty claims settled (2,351) (1,677) Balances as of end of year $3,296 $3,379 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. With the exception of the matter noted above, the Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Oct. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Year ended October 31, 2022 2021 2020 Allowance for doubtful accounts (in thousands): Allowance as of beginning of year $10,874 $12,738 $3,666 (Deductions) additions charged to costs and expenses (a) (1,070) (1,720) 9,834 Additions charged (credited) to other accounts (b) 476 360 128 Deductions (c) (1,947) (504) (890) Allowance as of end of year $8,333 $10,874 $12,738 (a) Additions charged to costs and expenses were higher in fiscal 2020 as compared to fiscal 2021 and fiscal 2022 principally due to potential collection difficulties from certain commercial aviation customers that filed for bankruptcy protection in fiscal 2020 as a result of the financial impact from the COVID-19 global pandemic (the "Pandemic"). (b) Principally additions from acquisitions and foreign currency translation adjustments. (c) Principally write-offs of uncollectible accounts receivables. Year ended October 31, 2022 2021 2020 Inventory valuation reserves (in thousands): Reserves as of beginning of year $142,593 $126,933 $103,821 Additions charged to costs and expenses (a) 13,980 17,202 27,030 Additions (deductions) charged to other accounts (b) 275 1,261 (63) Deductions (c) (1,853) (2,803) (3,855) Reserves as of end of year $154,995 $142,593 $126,933 (a) Additions charged to costs and expenses were higher in fiscal 2020 as compared to fiscal 2021 and fiscal 2022 principally due to the significant decline in global commercial air travel due to the Pandemic resulting in lower demand for the Company's commercial aviation products and services and certain specific obsolescence reserves following the announced retirement of certain aircraft types and engine platforms by major U.S. carriers. (b) Principally additions from acquisitions and foreign currency translation adjustments. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature Of Business, Policy [Policy Text Block] | Nature of Business HEICO Corporation, through its principal subsidiaries consisting of HEICO Aerospace Holdings Corp. (“HEICO Aerospace”), HEICO Flight Support Corp. ("HFSC") and HEICO Electronic Technologies Corp. (“HEICO Electronic”) and their respective subsidiaries (collectively, the “Company”), is principally engaged in the design, manufacture and sale of aerospace, defense and electronic related products and services throughout the United States ("U.S.") and internationally. The Company’s customer base is primarily the aviation, defense, space, medical, telecommunications and electronics industries. |
Basis Of Presentation, Policy [Policy Text Block] | Basis of Presentation The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HFSC and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries. The consolidated financial statements include the financial accounts of HEICO Corporation and its direct subsidiaries, all of which are wholly owned except for HEICO Aerospace, which is 20% owned by Lufthansa Technik AG ("LHT"), the technical services subsidiary of Lufthansa German Airlines. HFSC consolidates six subsidiaries which are 70%, 74%, 82%, 84%, 89% and 96% owned, respectively, three subsidiaries that are approximately 90% owned and six subsidiaries that are each 80.1% owned. In addition, HEICO Aerospace consolidates a joint venture, which is 84% owned. HEICO Electronic consolidates four subsidiaries that are each 80.1% owned, two subsidiaries that are each 75% owned, and six subsidiaries which are 80.4%, 82.5%, 85%, 90%, 92.7% and 95.9% owned, respectively. Certain subsidiaries of HEICO Electronic consolidate subsidiaries that are less than wholly owned. See Note 13, Redeemable Noncontrolling Interests. All intercompany balances and transactions are eliminated. The Company's results of operations in fiscal 2022 continued 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 fiscal 2022 as compared to fiscal 2021 principally reflecting improved demand for its commercial aerospace products. The Flight Support Group has reported nine 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. |
Use of Estimates and Assumptions, Policy [Policy Text Block] | Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments such as U.S. Treasury bills and money market funds with an original maturity of three months or less at the time of purchase to be cash equivalents. |
Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable consist of amounts billed and currently due from customers. The valuation of accounts receivable requires that the Company set up an allowance for estimated uncollectible accounts and record a corresponding charge to bad debt expense. The Company estimates uncollectible receivables based on such factors as its prior experience, its appraisal of a customer’s ability to pay, age of receivables outstanding and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries. |
Revenue from Contract with Customer [Policy Text Block] | Contract Assets Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer. See Note 6, Revenue, for additional information regarding the Company's contract assets. |
Concentrations Of Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade accounts receivable. The Company places its temporary cash investments with high credit quality financial institutions and limits the amount of credit exposure to any one financial institution. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer base and their dispersion across many different geographical regions. The Company performs ongoing credit evaluations of its customers, but does not generally require collateral to support customer receivables. |
Inventory, Policy [Policy Text Block] | Inventory Inventory is stated at the lower of cost or net realizable value, with cost being determined on the first-in, first-out or the average cost basis. Losses, if any, are recognized fully in the period when identified. The Company periodically evaluates the carrying value of inventory, giving consideration to factors such as its physical condition, sales patterns and expected future demand in order to estimate the amount necessary to write down any slow moving, obsolete or damaged inventory. These estimates could vary significantly from actual amounts based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the estimated write-downs were made. In accordance with industry practice, all inventories are classified as a current asset including portions with long production cycles, some of which may not be realized within one year. |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization is generally provided on the straight-line method over the estimated useful lives of the various assets. The Company’s property, plant and equipment is generally depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements 2 to 20 years Tooling 2 to 5 years The costs of major additions and improvements are capitalized. Leasehold improvements are amortized over the shorter of the leasehold improvement’s useful life or the lease term. Repairs and maintenance costs are expensed as incurred. Upon an asset's disposition, its cost and related accumulated depreciation are removed from the financial accounts and any resulting gain or loss is reflected within earnings. |
Business Combinations, Policy [Policy Text Block] | Business Combinations The Company allocates the purchase price of acquired entities to the underlying tangible and identifiable intangible assets acquired and liabilities and any noncontrolling interests assumed based on their estimated fair values, with any excess recorded as goodwill. The operating results of acquired businesses are included in the Company’s results of operations beginning as of their effective acquisition dates. Acquisition costs were not material in fiscal 2022, 2021 and 2020. |
Goodwill and Other Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets The Company tests goodwill for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may not be fully recoverable. In evaluating the recoverability of goodwill, the Company compares the fair value of each of its reporting units to its carrying value to determine potential impairment and an impairment loss is recognized in the amount by which the carrying value of a reporting unit’s goodwill exceeds its fair value. The fair values of the Company's reporting units are determined by using a weighted average of a market approach and an income approach. Under the market approach, fair values are estimated using published market multiples for comparable companies. The Company calculates fair values under the income approach by taking estimated future cash flows that are based on internal projections and other assumptions deemed reasonable by management and discounting them using an estimated weighted average cost of capital. The Company’s intangible assets not subject to amortization consist principally of its trade names. The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for certain customer relationships amortized on an accelerated method) over the following estimated useful lives: Customer relationships 6 to 17 years Intellectual property 7 to 22 years Other 5 to 20 years Amortization expense of intellectual property is recorded as a component of cost of sales and amortization expense of customer relationships is recorded as a component of selling, general and administrative ("SG&A") expenses in the Company’s Consolidated Statements of Operations. The Company tests each non-amortizing intangible asset for impairment annually as of October 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. To derive the fair value of its trade names, the Company utilizes an income approach, which relies upon management's assumptions of royalty rates, projected revenues and discount rates. The Company also tests each amortizing intangible asset for impairment if events or circumstances indicate that the asset might be impaired. The test consists of determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The determination of fair value requires management to make a number of estimates, assumptions and judgments of such factors as projected revenues and earnings and discount rates. |
Customer Rebates and Credits, Policy [Policy Text Block] | Customer Rebates and Credits The Company records accrued customer rebates and credits as a component of accrued expenses and other current liabilities in its Consolidated Balance Sheets. These amounts generally relate to discounts negotiated with customers as part of certain sales contracts that are usually tied to sales volume thresholds. The Company accrues customer rebates and credits as a reduction within net sales as the revenue is recognized based on the estimated level of discount rate expected to be earned by each customer over the life of the contractual rebate period (generally one year). Accrued customer rebates and credits are monitored by management and discount levels are updated at least quarterly. |
Product Warranties, Policy [Policy Text Block] | Product Warranties Product warranty liabilities are estimated at the time of shipment and recorded as a component of accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The amount recognized is based on historical claims experience. |
Defined Benefit Pension Plan, Policy [Policy Text Block] | Defined Benefit Pension Plan In connection with a prior year acquisition, the Company assumed a frozen qualified defined benefit pension plan (the "Plan"). The Plan's benefits are based on employee compensation and years of service; however, the accrued benefit for Plan participants was fixed as of the date of acquisition. The Company uses an actuarial valuation to determine the projected benefit obligation of the Plan and records the difference between the fair value of the Plan's assets and the projected benefit obligation as of October 31 in other long-term liabilities in its Consolidated Balance Sheets, but reclassifies any excess funded amounts to other long-term assets. Additionally, any actuarial gain or loss that arises during a fiscal year that is not recognized as a component of net periodic pension income or expense is recorded as a component of other comprehensive income or (loss), net of tax. The following table presents the fair value of the Plan's assets and projected benefit obligation as of October 31, for each of the last two fiscal years (in thousands): As of October 31, 2022 2021 Fair value of plan assets $10,106 $13,116 Projected benefit obligation 9,924 13,979 Funded status $182 ($863) |
Revenue [Policy Text Block] | Revenue Recognition The Company recognizes revenue when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to receive in exchange for the good or service. The Company’s performance obligations are satisfied and control is transferred either at a point-in-time or over-time. The majority of the Company’s revenue is recognized at a point-in-time when control is transferred, which is generally evidenced by the shipment or delivery of the product to the customer, a transfer of title, a transfer of the significant risks and rewards of ownership, and customer acceptance. For certain contracts under which the Company produces products with no alternative use and for which it has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date and for certain other contracts under which the Company creates or enhances a customer-owned asset while performing repair and overhaul services, control is transferred to the customer over-time. The Company recognizes revenue using an over-time recognition model for these types of contracts. The Company accounts for a contract with a customer when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect the consideration to which it is entitled to receive. Customer payment terms related to the sale of products and the rendering of services vary by Company subsidiary and product line. The time between receipt of payment and recognition of revenue for satisfaction of the related performance obligation is not significant. A performance obligation is a promise within a contract to transfer a distinct good or service to the customer in exchange for payment and is the unit of account for recognizing revenue. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. The majority of the Company’s contracts have a single performance obligation to transfer goods or services. For contracts with more than one performance obligation, the Company allocates the transaction price to each performance obligation based on its estimated standalone selling price. When standalone selling prices are not available, the transaction price is allocated using an expected cost plus margin approach as pricing for such contracts is typically negotiated on the basis of cost. The Company accounts for contract modifications prospectively when the remaining goods or services are distinct and on a cumulative catch-up basis when the remaining goods or services are not distinct. The Company provides assurance type warranties on many of its products and services. Since customers cannot purchase such warranties independently of the products or services under contract and they are not priced separately, warranties are not separate performance obligations. The Company utilizes the cost-to-cost method as a measure of progress for performance obligations that are satisfied over-time as it believes this input method best represents the transfer of control to the customer. Under this method, revenue for the current period is recorded at an amount equal to the ratio of costs incurred to date divided by total estimated contract costs multiplied by (i) the transaction price, less (ii) cumulative revenue recognized in prior periods. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Under the cost-to-cost method, the extent of progress toward completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. These projections require the Company to make numerous assumptions and estimates relating to items such as the complexity of design and related development costs, performance of subcontractors, availability and cost of materials, labor productivity and cost, overhead, capital costs, and manufacturing efficiency. The Company reviews its cost estimates on a periodic basis, or when circumstances change and warrant a modification to a previous estimate. Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends and other economic projections. For certain contracts with similar characteristics and for which revenue is recognized using an over-time model, the Company uses a portfolio approach to estimate the amount of revenue to recognize. For each portfolio of contracts, the respective work in process and/or finished goods inventory balances are identified and the portfolio-specific margin is applied to estimate the pro rata portion of the transaction price to recognize in relation to the costs incurred. This approach is utilized only when the resulting revenue recognition is not expected to be materially different than if the accounting was applied to the individual contracts. Certain of the Company’s contracts give rise to variable consideration when they contain items such as customer rebates, credits, volume purchase discounts, penalties and other provisions that may impact the total consideration the Company will receive. The Company includes variable consideration in the transaction price generally by applying the most likely amount method of the consideration that it expects to be entitled to receive based on an assessment of all available information (i.e., historical experience, current and forecasted performance) and only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty is resolved. The Company estimates variable consideration by applying the most likely amount method when there are a limited number of outcomes related to the resolution of the variable consideration. See Note 6, Revenue, for additional information regarding the Company’s revenue recognition policy. Changes in estimates that result in adjustments to net sales and cost of sales are recognized as necessary in the period they become known on a cumulative catch-up basis. Changes in estimates did not have a material effect on net income from consolidated operations in fiscal 2022, 2021 and 2020. |
Stock-Based Compensation, Policy [Policy Text Block] | Stock-Based Compensation The Company records compensation expense associated with stock options in its Consolidated Statements of Operations based on the grant date fair value of those awards. The fair value of each stock option on the date of grant is estimated using the Black-Scholes pricing model based on certain valuation assumptions. Expected stock price volatility is based on the Company’s historical stock prices over the expected life of the option grant and other factors. The risk-free interest rate used is based on the published U.S. Treasury yield curve in effect at the time of the option grant for instruments with a similar life. The dividend yield reflects the Company’s expected dividend yield at the date of grant. The expected option life represents the period of time that the stock options are expected to be outstanding, taking into consideration the contractual term of the option grant and employee historical exercise behavior. The Company’s historical rate of forfeiture is nominal and therefore not included when estimating the grant date fair value of stock option awards. As such, the Company recognizes the impact of forfeitures when they occur. The Company generally recognizes stock option compensation expense ratably over the award’s vesting period. |
Income Taxes, Policy [Policy Text Block] | Income Taxes Income tax expense includes U.S. and foreign income taxes. Deferred income taxes are provided on elements of income that are recognized for financial reporting purposes in periods different from when recognized for income tax purposes. Deferred tax assets and liabilities are recognized for the tax effects of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax law and rate changes are reflected in income in the period such changes are enacted. The Company's policy is to recognize interest and penalties related to income tax matters as a component of income tax expense and to treat |
Redeemable Noncontrolling Interests, Policy [Policy Text Block] | Redeemable Noncontrolling Interests As further detailed in Note 13, Redeemable Noncontrolling Interests, the holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that require the Company to provide cash consideration for their equity interests (the “Redemption Amount”) at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. The Put Rights are embedded in the shares owned by the noncontrolling interest holders and are not freestanding. The Company tracks the carrying cost of such redeemable noncontrolling interests at historical cost plus an allocation of subsidiary earnings based on ownership interest, less dividends paid to the noncontrolling interest holders. Redeemable noncontrolling interests are recorded outside of permanent equity at the higher of their carrying cost or management’s estimate of the Redemption Amount. The initial adjustment to record redeemable noncontrolling interests at the Redemption Amount results in a corresponding decrease to retained earnings. Subsequent adjustments to the Redemption Amount of redeemable noncontrolling interests may result in corresponding decreases or increases to retained earnings, provided any increases to retained earnings may only be recorded to the extent of decreases previously recorded. Adjustments to Redemption Amounts based on fair value will have no effect on net income per share attributable to HEICO shareholders whereas the portion of periodic adjustments to the carrying amount of redeemable noncontrolling interests based solely on a multiple of future earnings that reflect a redemption amount in excess of fair value will affect net income per share attributable to HEICO shareholders. Acquisitions of redeemable noncontrolling interests are treated as equity transactions. |
Net Income per Share Attributable to HEICO Shareholders, Policy [Policy Text Block] | Net Income per Share Attributable to HEICO Shareholders Basic net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period. Diluted net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period plus potentially dilutive common shares arising from the assumed exercise of stock options, if dilutive. The dilutive impact of potentially dilutive common shares is determined by applying the treasury stock method. |
Foreign Currency Translation, Policy [Policy Text Block] | Foreign Currency All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end exchange rates, while revenue and expenses are translated using average exchange rates for the period. Unrealized translation gains or losses are reported as foreign currency translation adjustments through other comprehensive income or (loss) in shareholders’ equity. Transaction gains or losses related to monetary balances |
Contingencies, Policy [Policy Text Block] | Contingencies Losses for contingencies such as product warranties, litigation and environmental matters are recognized in income when they are probable and can be reasonably estimated. Gain contingencies are not recognized in income until they have been realized. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting PronouncementIn October 2021, the FASB issued 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. |
Assets Held under Capital Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Policy [Policy Text Block] | Leases The Company’s lease arrangements primarily pertain to manufacturing facilities, office buildings, equipment, land and vehicles. The Company evaluates whether a contractual arrangement that provides it with control over the use of an asset is, or contains, a lease at the inception date. The term of a lease is inclusive of any option to renew, extend, or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company classifies a lease as operating or finance using the classification criteria set forth in Accounting Standards Codification ("ASC") Topic 842. HEICO recognizes lease right-of-use (“ROU”) assets and corresponding lease liabilities as of the lease commencement date based on the present value of the lease payments over the lease term. The discount rate used to calculate the present value of the Company’s leases is based on HEICO’s incremental borrowing rate and considers credit risk, the lease term and other available information as of the commencement date since the |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The Company’s property, plant and equipment is generally depreciated over the following estimated useful lives: Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements 2 to 20 years Tooling 2 to 5 years |
Intangible Assets Useful Life [Table Text Block] | The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for certain customer relationships amortized on an accelerated method) over the following estimated useful lives: Customer relationships 6 to 17 years Intellectual property 7 to 22 years Other 5 to 20 years |
Defined Benefit Plans Disclosures [Table Text Block] | The following table presents the fair value of the Plan's assets and projected benefit obligation as of October 31, for each of the last two fiscal years (in thousands): As of October 31, 2022 2021 Fair value of plan assets $10,106 $13,116 Projected benefit obligation 9,924 13,979 Funded status $182 ($863) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Total Consideration [Table Text Block] | The following table summarizes the aggregate total consideration for the Company's acquisitions based on the year of acquisition (in thousands): Year ended October 31, 2022 2021 2020 Cash paid $348,606 $136,995 $165,290 Less: cash acquired (1,852) (616) (1,323) Cash paid, net 346,754 136,379 163,967 Issuance of common stock for an acquisition 75,005 — — Contingent consideration 29,732 18,334 23,719 Additional purchase consideration 4,000 292 144 Total consideration $455,491 $155,005 $187,830 |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the allocation of the aggregate total consideration for the Company's acquisitions to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands, and based on the year of acquisition): Year ended October 31, 2022 2021 2020 Assets acquired: Goodwill $244,042 $59,445 $114,391 Customer relationships 132,199 30,910 44,740 Intellectual property 45,265 23,920 27,120 Trade names 41,784 9,920 12,410 Property, plant and equipment 26,472 24,613 4,000 Inventories 23,673 6,391 10,902 Accounts receivable 24,954 6,866 7,124 Contract assets 10,054 18,386 2,530 Other assets 6,917 1,126 980 Total assets acquired, excluding cash 555,360 181,577 224,197 Liabilities assumed: Deferred income taxes 22,470 414 10,434 Accrued expenses 12,765 4,502 2,787 Accounts payable 7,529 2,338 726 Other liabilities 417 266 197 Total liabilities assumed 43,181 7,520 14,144 Noncontrolling interests in consolidated subsidiaries 56,688 19,052 22,223 Net assets acquired, excluding cash $455,491 $155,005 $187,830 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in connection with the Company's fiscal 2022, 2021 and 2020 acquisitions (in years): Year ended October 31, 2022 2021 2020 Customer relationships 15 12 10 Intellectual property 13 13 11 |
Schedule of Pro Forma Information [Table Text Block] | The following table presents unaudited pro forma financial information for fiscal 2021 as if the fiscal 2022 acquisitions had occurred as of November 1, 2020 (in thousands, except per share data): Year ended October 31, 2021 Net sales $2,043,464 Net income from consolidated operations $349,208 Net income attributable to HEICO $319,660 Net income per share attributable to HEICO shareholders: Basic $2.35 Diluted $2.31 |
SELECTED FINANCIAL STATEMENT _2
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable As of October 31, (in thousands) 2022 2021 Accounts receivable $303,181 $255,793 Less: Allowance for doubtful accounts (8,333) (10,874) Accounts receivable, net $294,848 $244,919 |
Schedule of Inventory [Table Text Block] | Inventories As of October 31, (in thousands) 2022 2021 Finished products $285,024 $238,867 Work in process 59,739 44,887 Materials, parts, assemblies and supplies 237,708 194,296 Inventories, net of valuation reserves $582,471 $478,050 |
Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment As of October 31, (in thousands) 2022 2021 Land $17,579 $11,363 Buildings and improvements 148,598 134,150 Machinery, equipment and tooling 322,252 297,297 Construction in progress 14,533 7,784 502,962 450,594 Less: Accumulated depreciation and amortization (277,083) (256,956) Property, plant and equipment, net $225,879 $193,638 |
Schedule Of Accrued Expenses and Other Current Liabilities [Table Text Block] | Accrued Expenses and Other Current Liabilities As of October 31, (in thousands) 2022 2021 Accrued employee compensation and related payroll taxes $130,837 $121,200 Contract liabilities 58,757 32,738 Contingent consideration 28,849 — Accrued customer rebates and credits 17,938 13,237 Current operating lease liabilities 14,656 13,874 Other 39,162 25,808 Accrued expenses and other current liabilities $290,199 $206,857 |
Schedule of Research and Development Expenses [Table Text Block] | The amount of new product research and development ("R&D") expenses included in cost of sales is as follows (in thousands): Year ended October 31, 2022 2021 2020 R&D expenses $76,061 $68,877 $65,559 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive loss during fiscal 2022 and 2021 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2020 ($6,460) ($2,689) ($9,149) Unrealized (loss) gain (529) 991 462 Amortization of unrealized loss — 135 135 Balances as of October 31, 2021 (6,989) (1,563) (8,552) Unrealized (loss) gain (38,380) 368 (38,012) Amortization of unrealized loss — 65 65 Balances as of October 31, 2022 ($45,369) ($1,130) ($46,499) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by operating segment during fiscal 2022 and 2021 are as follows (in thousands): Segment Consolidated FSG ETG Totals Balances as of October 31, 2020 $427,565 $955,602 $1,383,167 Goodwill acquired 40,308 26,142 66,450 Foreign currency translation adjustments 227 540 767 Adjustments to goodwill 188 (177) 11 Balances as of October 31, 2021 468,288 982,107 1,450,395 Goodwill acquired 106,919 137,123 244,042 Foreign currency translation adjustments (6,335) (8,672) (15,007) Adjustments to goodwill (6,911) (94) (7,005) Balances as of October 31, 2022 $561,961 $1,110,464 $1,672,425 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of October 31, 2022 As of October 31, 2021 Gross Accumulated Net Gross Accumulated Net Amortizing Assets: Customer relationships $539,529 ($208,127) $331,402 $464,506 ($221,098) $243,408 Intellectual property 284,171 (98,983) 185,188 255,011 (94,313) 160,698 Other 8,700 (7,017) 1,683 8,841 (6,844) 1,997 832,400 (314,127) 518,273 728,358 (322,255) 406,103 Non-Amortizing Assets: Trade names 215,054 — 215,054 176,204 — 176,204 $1,047,454 ($314,127) $733,327 $904,562 ($322,255) $582,307 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): As of October 31, 2022 2021 Borrowings under revolving credit facility $275,000 $225,000 Finance leases and notes payable (1) 15,274 11,498 290,274 236,498 Less: Current maturities of long-term debt (1,654) (1,515) $288,620 $234,983 (1) See Note 9, Leases, for additional information regarding the Company's finance leases. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Oct. 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 during fiscal 2022 and 2021 are as follows (in thousands): October 31, 2022 October 31, 2021 Change Contract assets $93,978 $80,073 $13,905 Contract liabilities 58,757 32,738 26,019 Net contract assets $35,221 $47,335 ($12,114) |
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): Year Ended October 31, 2022 2021 2020 Flight Support Group: Aftermarket replacement parts (1) $694,900 $535,217 $525,636 Repair and overhaul parts and services (2) 264,986 208,215 193,164 Specialty products (3) 295,326 183,657 206,012 Total net sales 1,255,212 927,089 924,812 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 672,147 709,621 679,901 Electronic component parts for equipment in various other industries (5) 300,328 249,549 195,086 Total net sales 972,475 959,170 874,987 Intersegment sales (19,365) (20,577) (12,790) Total consolidated net sales $2,208,322 $1,865,682 $1,787,009 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh 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 airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, and radiation assurance services and products. (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 |
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): Year ended October 31, 2022 2021 2020 Flight Support Group: Aerospace $876,254 $660,867 $669,194 Defense and Space 316,460 224,236 213,273 Other (1) 62,498 41,986 42,345 Total net sales 1,255,212 927,089 924,812 Electronic Technologies Group: Defense and Space 545,384 599,570 577,581 Other (2) 340,311 284,834 225,749 Aerospace 86,780 74,766 71,657 Total net sales 972,475 959,170 874,987 Intersegment sales (19,365) (20,577) (12,790) Total consolidated net sales $2,208,322 $1,865,682 $1,787,009 (1) Principally industrial products. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The components of income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2022 2021 2020 Domestic $429,329 $345,733 $327,754 Foreign 61,694 41,325 37,101 Income before taxes and noncontrolling interests $491,023 $387,058 $364,855 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes on income before income taxes and noncontrolling interests are as follows (in thousands): Year ended October 31, 2022 2021 2020 Current: Federal $63,861 $47,839 $17,730 State 13,015 11,639 4,167 Foreign 14,648 13,457 13,101 91,524 72,935 34,998 Deferred: Federal 8,154 (10,097) (3,364) State 1,129 (3,251) (55) Foreign (407) (2,287) (2,579) 8,876 (15,635) (5,998) Total income tax expense $100,400 $57,300 $29,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows: Year ended October 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal income tax benefit 2.6 % 2.9 % 3.7 % Tax benefit related to stock option exercises (3.6 %) (3.7 %) (13.3 %) Tax-exempt losses (gains) on corporate-owned life insurance policies 2.8 % (2.9 %) (0.7 %) Research and development tax credits (1.5 %) (2.5 %) (2.4 %) Foreign derived intangible income deduction (1.9 %) (1.9 %) (1.6 %) Nondeductible compensation 1.2 % 1.2 % .4 % Other, net (.2 %) .7 % .8 % Effective tax rate 20.4 % 14.8 % 7.9 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): As of October 31, 2022 2021 Deferred tax assets: Inventories $51,505 $41,354 Deferred compensation plan liability 42,285 54,726 Operating lease liabilities 20,043 16,483 Share-based compensation 9,177 8,759 Performance-based compensation accrual 4,482 4,615 Customer rebates accrual 3,323 2,236 Vacation accrual 2,127 1,910 Allowance for doubtful accounts receivable 1,598 2,532 Deferred payroll taxes 1,262 2,372 Other 12,687 9,102 Total deferred tax assets 148,489 144,089 Deferred tax liabilities: Goodwill and other intangible assets (176,436) (145,024) Property, plant and equipment (21,746) (19,580) Operating lease right-of-use assets (19,344) (15,941) Adoption of ASC 606 (revenue recognition) (388) (2,677) Other (1,737) (1,628) Total deferred tax liabilities (219,651) (184,850) Net deferred tax liability ($71,162) ($40,761) |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the activity related to the liability for gross unrecognized tax benefits during fiscal 2022 and 2021 is as follows (in thousands): Year ended October 31, 2022 2021 Balances as of beginning of year $4,072 $2,946 Increases related to current year tax positions 870 710 Increases related to prior year tax positions — 839 Decreases related to prior year tax positions (286) — Settlements (522) — Lapses of statutes of limitations (631) (423) Balances as of end of year $3,503 $4,072 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Oct. 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 October 31, 2022 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $201,239 $— $201,239 Money market fund 3,477 — — 3,477 Total assets $3,477 $201,239 $— $204,716 Liabilities: Contingent consideration $— $— $82,803 $82,803 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 $62,286 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of October 31, 2022 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 9-1-2022 $6,308 Compound annual revenue growth rate 0% - 17% 14% Discount rate 8.5% - 8.5% 8.5% 7-18-2022 12,739 Compound annual revenue growth rate 0% - 5% 3% Discount rate 8.5% - 8.5% 8.5% 3-17-2022 9,127 Compound annual revenue growth rate (3%) - 8% 3% Discount rate 7.4% - 7.4% 7.4% 8-4-2021 17,957 Compound annual revenue growth rate 3% - 10% 8% Discount rate 8.5% - 9.0% 8.6% 8-18-2020 17,723 Compound annual revenue growth rate 15% - 24% 22% Discount rate 9.0% - 9.0% 9.0% 9-15-2017 18,949 Compound annual revenue growth rate 0% - 5% 3% Discount rate 5.9% - 5.9% 5.9% |
Fair Value, Assets 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) during fiscal 2022 and 2021 are as follows (in thousands): Liabilities Balance as of October 31, 2020 $41,974 Contingent consideration related to acquisitions 18,334 Increase in accrued contingent consideration, net 1,246 Foreign currency transaction adjustments 732 Balance as of October 31, 2021 62,286 Contingent consideration related to acquisitions 29,732 Decrease in accrued contingent consideration, net (7,631) Foreign currency transaction adjustments (1,264) Payment of contingent consideration (320) Balance as of October 31, 2022 $82,803 Included in the accompanying Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $28,849 Other long-term liabilities 53,954 $82,803 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Lease Asset and Liabilities [Table Text Block] | The following table presents the Company’s lease ROU assets and lease liabilities (in thousands): Operating Leases Finance Leases 2022 2021 2022 2021 Right-of-use assets $89,752 $74,609 $15,786 $12,250 Current lease liabilities $14,656 $13,874 $1,620 $1,481 Long-term lease liabilities 76,965 61,829 13,376 9,764 Total lease liabilities $91,621 $75,703 $14,996 $11,245 |
Lease, Cost [Table Text Block] | The following table presents the components of lease expense for fiscal 2022 and 2021 (in thousands): Year ended October 31, 2022 2021 Operating Leases: Operating lease expense $19,877 $18,103 Variable lease expense 3,552 3,165 Total operating lease expense (1) $23,429 $21,268 Finance Leases: Amortization on finance lease ROU assets $1,540 $1,110 Interest on finance lease liabilities 578 453 Variable lease expense 319 750 Total finance lease expense $2,437 $2,313 (1) Excludes short-term lease expense, which is not material. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents a maturity analysis of the Company's lease liabilities as of October 31, 2022 for the next five fiscal years and thereafter (in thousands): Operating Leases Finance Leases Year ending October 31, 2023 $18,925 $2,389 2024 17,549 2,283 2025 16,240 2,197 2026 12,941 2,177 2027 9,859 2,043 Thereafter 37,305 7,959 Total minimum lease payments 112,819 19,048 Less: imputed interest (21,198) (4,052) Present value of minimum lease payments $91,621 $14,996 |
Lessee, Operating Lease Term and Discount Rate [Table Text Block] | The following table presents the weighted average remaining lease term and discount rate of the Company’s leases: Operating Leases Finance Leases 2022 2021 2022 2021 Weighted average remaining lease term (years) 7.9 9.1 9.0 9.2 Weighted average discount rate 5.4 % 4.7 % 5.5 % 4.6 % |
Schedule of Cash Flow, Supplemental Disclosure, Leases | The following table presents supplemental disclosures of cash flow information associated with the Company's leases for fiscal 2022 and 2021 (in thousands): Operating Leases Finance Leases 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows $19,323 $17,999 $578 $453 Financing cash flows — — 1,568 1,187 Right-of-use assets obtained in exchange for new lease liabilities, net of terminations 31,865 31,351 5,373 2,861 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Information concerning share-based activity for each of the last three fiscal years ended October 31 is as follows (in thousands, except per share data): Shares Under Option Shares Available For Grant Shares Weighted Average Exercise Price Outstanding as of October 31, 2019 4,085 4,692 $33.73 Granted (29) 29 $97.00 Exercised — (720) $19.32 Cancelled 8 (8) $55.61 Outstanding as of October 31, 2020 4,064 3,993 $36.75 Granted (699) 699 $125.57 Exercised — (342) $21.88 Cancelled 9 (9) $64.78 Outstanding as of October 31, 2021 3,374 4,341 $52.16 Granted (56) 56 $120.76 Exercised — (762) $22.40 Cancelled 6 (6) $67.98 Outstanding as of October 31, 2022 3,324 3,629 $59.44 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block] | Information concerning stock options outstanding (all of which are vested or expected to vest) and stock options exercisable by class of common stock as of October 31, 2022 is as follows (in thousands, except per share and contractual life data): Options Outstanding Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Common Stock 1,546 $55.51 4.5 $165,640 Class A Common Stock 2,083 $62.36 5.5 135,292 3,629 $59.44 5.1 $300,932 Options Exercisable Number Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Common Stock 1,252 $40.86 3.7 $152,481 Class A Common Stock 1,457 $44.95 4.4 119,999 2,709 $43.06 4.1 $272,480 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value [Table Text Block] | Information concerning stock options exercised is as follows (in thousands): Year ended October 31, 2022 2021 2020 Cash proceeds from stock option exercises $2,352 $5,344 $6,955 Tax benefit realized from stock option exercises 17,752 14,186 48,326 Intrinsic value of stock option exercises 86,015 33,428 53,384 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each stock option grant in fiscal 2022, 2021 and 2020 was estimated on the date of grant using the Black-Scholes option-pricing model based on the following weighted average assumptions: 2022 2021 2020 Class A Common Stock Common Stock Class A Common Stock Class A Common Stock Expected stock price volatility 32.61 % 30.17 % 32.65 % 24.94 % Risk-free interest rate 1.72 % 1.40 % 1.09 % 1.72 % Dividend yield .18 % .17 % .19 % .21 % Forfeiture rate .00 % .00 % .00 % .00 % Expected option life (years) 6 9 6 6 Weighted average fair value $41.00 $51.16 $39.00 $26.86 |
EMPLOYEE RETIREMENT PLANS (Tabl
EMPLOYEE RETIREMENT PLANS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Other Share-based Compensation, Activity [Table Text Block] | Information concerning share-based activity pertaining to the 401(k) Plan for each of the last three fiscal years ended October 31 is as follows (in thousands): Common Stock Class A Common Stock Shares available for issuance as of October 31, 2019 280 280 Issuance of common stock to the 401(k) Plan (52) (52) Shares available for issuance as of October 31, 2020 228 228 Issuance of common stock to the 401(k) Plan (40) (40) Shares available for issuance as of October 31, 2021 188 188 Issuance of common stock to the 401(k) Plan (43) (43) Shares available for issuance as of October 31, 2022 145 145 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Noncontrolling Interest [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): As of October 31, 2022 2021 Redeemable at fair value $300,693 $217,416 Redeemable based on a multiple of future earnings 26,908 35,171 Redeemable noncontrolling interests $327,601 $252,587 |
Schedule of Put Rights [Table Text Block] | A summary of the Put Rights associated with the redeemable noncontrolling interests in certain of the Company’s subsidiaries as of October 31, 2022 is as follows: Subsidiary Operating Company Earliest Purchase 2005 ETG 95.9% 2023 (1) 1 (3) 2006 FSG 80.1% 2023 (1) 4 2008 FSG 90.0% 2024 4 2009 ETG 82.5% 2023 (1) 1 2012 FSG 84.0% 2023 (1) 4 2012 FSG 80.1% 2027 4 (4) 2015 FSG 82.0% 2023 (1) 3 (5) 2015 FSG 80.1% 2023 (1) 4 2015 FSG 80.1% 2023 (2) 4 2015 ETG 80.1% 2023 (1) 2 2017 FSG 90.1% 2024 (2) 1 2018 ETG 85.0% 2023 (1) 1 2018 FSG 90.0% 2027 4 2019 ETG 92.7% 2023 4 2019 ETG 85.0% 2024 4 2019 FSG 80.1% 2026 4 2019 ETG 75.0% 2024 4 (6) 2020 ETG 80.1% 2025 4 2020 FSG 70.0% 2027 4 2020 ETG 75.0% 2024 4 (4) 2020 ETG 90.0% 2025 4 2021 FSG 80.1% 2026 4 2021 FSG 89.0% 2028 4 2021 ETG 80.1% 2024 3 (7) 2022 FSG 74.0% 2029 4 2022 FSG 96.0% 2029 4 2022 ETG 80.4% 2027 4 (1) Currently puttable. (2) Put Right previously exercised. (3) The Put Right for a 2.6% noncontrolling interest is to be purchased in a lump sum and the Put Right for the remaining 1.5% interest is to be purchased over a four-year period. (4) The Put Rights for a 14.9% noncontrolling interest and the remaining 5.0% interest may be exercised beginning in fiscal 2027 and 2029, respectively, with each purchase over a four-year period. (5) The Put Right for a 15% noncontrolling interest may be exercised in 5% increments annually and the first increment is currently puttable. The Put Right for the remaining 3% noncontrolling interest may be exercised in one-fifth increments beginning in fiscal 2028. (6) The exercise of the Put Right for either entity will automatically trigger a Put Right exercise for the other entity. (7) The Put Rights for an aggregate 13.5% noncontrolling interest may be exercised beginning in fiscal 2024 with the purchase over a three-year period. The Put Right for the remaining 6.4% noncontrolling interest may be exercised beginning in fiscal 2028 with the purchase over a four-year period. |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): Year ended October 31, 2022 2021 2020 Numerator: Net income attributable to HEICO $351,675 $304,220 $313,984 Denominator: Weighted average common shares outstanding - basic 136,010 135,326 134,754 Effect of dilutive stock options 2,027 2,528 2,548 Weighted average common shares outstanding - diluted 138,037 137,854 137,302 Net income per share attributable to HEICO shareholders: Basic $2.59 $2.25 $2.33 Diluted $2.55 $2.21 $2.29 Anti-dilutive stock options excluded 749 185 258 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Oct. 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 each of the last three fiscal years ended October 31 is as follows (in thousands): Segment Other, Primarily Corporate and Intersegment (1) Consolidated Totals FSG ETG Year ended October 31, 2022: Net sales $1,255,212 $972,475 ($19,365) $2,208,322 Depreciation 15,656 13,602 999 30,257 Amortization 24,268 40,690 1,118 66,076 Operating income 267,167 269,473 (39,796) 496,844 Capital expenditures 15,588 15,530 864 31,982 Year ended October 31, 2021: Net sales $927,089 $959,170 ($20,577) $1,865,682 Depreciation 13,992 12,839 973 27,804 Amortization 20,648 43,431 1,136 65,215 Operating income 151,930 277,306 (36,336) 392,900 Capital expenditures 8,915 26,496 772 36,183 Year ended October 31, 2020: Net sales $924,812 $874,987 ($12,790) $1,787,009 Depreciation 14,339 11,722 1,006 27,067 Amortization 19,957 40,553 984 61,494 Operating income 143,051 258,814 (25,217) 376,648 Capital expenditures 10,843 12,025 72 22,940 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by operating segment are as follows (in thousands): Other, Consolidated Segment As of October 31, FSG ETG 2022 $1,635,229 $2,230,744 $229,523 4,095,496 2021 $1,274,462 $1,952,413 $271,532 3,498,407 |
Schedule of Revenue and Long-lived Assets by Geographic Area [Table Text Block] | The following table summarizes the Company’s net sales to customers located in the United States and to those in other countries for each of the last three fiscal years ended October 31 (in thousands). Net sales are attributed to countries based on the location of the customer. Net sales to any one customer or originating from any one foreign country did not account for 10% or more of the Company’s consolidated net sales during any of the last three fiscal years. The following table also summarizes the Company’s long-lived assets held within and outside of the United States as of October 31 for each of the last three fiscal years (in thousands). Long-lived assets consist of net property, plant and equipment. 2022 2021 2020 Net sales: United States of America $1,443,581 $1,194,869 $1,193,497 Other countries 764,741 670,813 593,512 Total net sales $2,208,322 $1,865,682 $1,787,009 Long-lived assets: United States of America $190,148 $155,537 $139,197 Other countries 35,731 38,101 29,651 Total long-lived assets $225,879 $193,638 $168,848 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability in fiscal 2022 and 2021 are as follows (in thousands): Year ended October 31, 2022 2021 Balances as of beginning of year $3,379 $3,015 Accruals for warranties 2,026 1,979 Acquired warranty liabilities 242 62 Warranty claims settled (2,351) (1,677) Balances as of end of year $3,296 $3,379 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment Useful Life) (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Other Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Other Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Tooling [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Tooling [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Finite-Lived Intangible Asset Useful Life) (Details) | 12 Months Ended |
Oct. 31, 2022 | |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 6 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Intellectual Property [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Intellectual Property [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 22 years |
Other | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Other | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Pension Plan Funded Status) (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | $ 10,106 | $ 13,116 |
Defined Benefit Plan, Benefit Obligation | 9,924 | 13,979 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 182 | $ (863) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) | 12 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Depreciation Methods | Depreciation and amortization is generally provided on the straight-line method over the estimated useful lives of the various assets. |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Method | The Company’s intangible assets subject to amortization are amortized on the straight-line method (except for certain customer relationships amortized on an accelerated method) over the following estimated useful lives |
Lufthansa Technik Ag [Member] | HFSC | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of interest owned by noncontrolling shareholders | 20% |
HFSC | Subsidiary Two [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HFSC | Subsidiary Three [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 90% |
HFSC | Subsidiary Five [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 84% |
HFSC | Subsidiary Six [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HFSC | Subsidiary Seven [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 82% |
HFSC | Subsidiary Eight [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HFSC | Subsidiary Nine [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HFSC | Subsidiary Eleven [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 90% |
HFSC | Subsidiary Thirteen [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 90% |
HFSC | Subsidiary Sixteen [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HFSC | Subsidiary Nineteen [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 70% |
HFSC | Subsidiary Twenty-Two [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HFSC | Subsidiary Twenty-Three [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 89% |
HFSC | Subsidiary Twenty-Five | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 74% |
HFSC | Subsidiary Twenty-Six | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 96% |
HEICO Aerospace [Member] | Joint Venture [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 84% |
HEICO Electronic [Member] | Subsidiary One [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 95.90% |
HEICO Electronic [Member] | Subsidiary Four [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 82.50% |
HEICO Electronic [Member] | Subsidiary Ten [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HEICO Electronic [Member] | Subsidiary Twelve [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 85% |
HEICO Electronic [Member] | Subsidiary Fourteen [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 92.70% |
HEICO Electronic [Member] | Subsidiary Fifteen [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HEICO Electronic [Member] | Subsidiary Seventeen [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 75% |
HEICO Electronic [Member] | Subsidiary Eighteen [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HEICO Electronic [Member] | Subsidiary Twenty [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 75% |
HEICO Electronic [Member] | Subsidiary Twenty-One [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 90% |
HEICO Electronic [Member] | Subsidiary Twenty-Four | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.10% |
HEICO Electronic [Member] | Subsidiary Twenty-Seven | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Parent | 80.40% |
ACQUISITIONS (Total Considerati
ACQUISITIONS (Total Consideration) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Business Acquisition [Line Items] | |||
Cash paid, net | $ 347,308 | $ 136,500 | $ 163,939 |
FY2022 Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash paid | 348,606 | ||
Less: cash acquired | (1,852) | ||
Cash paid, net | 346,754 | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 75,005 | ||
Contingent purchase consideration | 29,732 | ||
Additional purchase consideration | 4,000 | ||
Total purchase consideration | $ 455,491 | ||
FY2021 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid | 136,995 | ||
Less: cash acquired | (616) | ||
Cash paid, net | 136,379 | ||
Contingent purchase consideration | 18,334 | ||
Additional purchase consideration | 292 | ||
Total purchase consideration | $ 155,005 | ||
FY2020 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid | 165,290 | ||
Less: cash acquired | (1,323) | ||
Cash paid, net | 163,967 | ||
Contingent purchase consideration | 23,719 | ||
Additional purchase consideration | 144 | ||
Total purchase consideration | $ 187,830 |
ACQUISITIONS (Fair Value of Acq
ACQUISITIONS (Fair Value of Acquired Assets) (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Assets acquired: | |||
Goodwill | $ 1,672,425 | $ 1,450,395 | $ 1,383,167 |
FY2022 Acquisitions | |||
Assets acquired: | |||
Goodwill | 244,042 | ||
Property, plant and equipment | 26,472 | ||
Inventories | 23,673 | ||
Accounts receivable | 24,954 | ||
Contract assets | 10,054 | ||
Other assets | 6,917 | ||
Total assets acquired, excluding cash | 555,360 | ||
Liabilities assumed: | |||
Deferred income taxes | 22,470 | ||
Accrued expenses | 12,765 | ||
Accounts payable | 7,529 | ||
Other liabilities | 417 | ||
Total liabilities assumed | 43,181 | ||
Noncontrolling interests in consolidated subsidiaries | 56,688 | ||
Net assets acquired, excluding cash | 455,491 | ||
FY2021 Acquisitions [Member] | |||
Assets acquired: | |||
Goodwill | 59,445 | ||
Property, plant and equipment | 24,613 | ||
Inventories | 6,391 | ||
Accounts receivable | 6,866 | ||
Contract assets | 18,386 | ||
Other assets | 1,126 | ||
Total assets acquired, excluding cash | 181,577 | ||
Liabilities assumed: | |||
Deferred income taxes | 414 | ||
Accrued expenses | 4,502 | ||
Accounts payable | 2,338 | ||
Other liabilities | 266 | ||
Total liabilities assumed | 7,520 | ||
Noncontrolling interests in consolidated subsidiaries | 19,052 | ||
Net assets acquired, excluding cash | 155,005 | ||
FY2020 Acquisitions [Member] | |||
Assets acquired: | |||
Goodwill | 114,391 | ||
Property, plant and equipment | 4,000 | ||
Inventories | 10,902 | ||
Accounts receivable | 7,124 | ||
Contract assets | 2,530 | ||
Other assets | 980 | ||
Total assets acquired, excluding cash | 224,197 | ||
Liabilities assumed: | |||
Deferred income taxes | 10,434 | ||
Accrued expenses | 2,787 | ||
Accounts payable | 726 | ||
Other liabilities | 197 | ||
Total liabilities assumed | 14,144 | ||
Noncontrolling interests in consolidated subsidiaries | 22,223 | ||
Net assets acquired, excluding cash | 187,830 | ||
Trade Names [Member] | FY2022 Acquisitions | |||
Assets acquired: | |||
Identifiable intangible assets | 41,784 | ||
Trade Names [Member] | FY2021 Acquisitions [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | 9,920 | ||
Trade Names [Member] | FY2020 Acquisitions [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | 12,410 | ||
Customer Relationships [Member] | FY2022 Acquisitions | |||
Assets acquired: | |||
Identifiable intangible assets | 132,199 | ||
Customer Relationships [Member] | FY2021 Acquisitions [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | 30,910 | ||
Customer Relationships [Member] | FY2020 Acquisitions [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | 44,740 | ||
Intellectual Property [Member] | FY2022 Acquisitions | |||
Assets acquired: | |||
Identifiable intangible assets | $ 45,265 | ||
Intellectual Property [Member] | FY2021 Acquisitions [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | $ 23,920 | ||
Intellectual Property [Member] | FY2020 Acquisitions [Member] | |||
Assets acquired: | |||
Identifiable intangible assets | $ 27,120 |
ACQUISITIONS (Weighted Average
ACQUISITIONS (Weighted Average Intangible Assets Useful Life) (Details) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Customer Relationships [Member] | FY2021 Acquisitions [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||
Customer Relationships [Member] | FY2020 Acquisitions [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Customer Relationships [Member] | FY2022 Acquisitions | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Intellectual Property [Member] | FY2021 Acquisitions [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | ||
Intellectual Property [Member] | FY2020 Acquisitions [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | ||
Intellectual Property [Member] | FY2022 Acquisitions | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years |
ACQUISITIONS (Proforma) (Detail
ACQUISITIONS (Proforma) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Pro Forma Revenue | $ 2,325,200 | $ 2,043,464 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 349,208 | |
Pro Forma Net income attributable to Parent | $ 319,660 | |
Pro Forma Earnings Per Share, Basic | $ 2.35 | |
Pro Forma Earnings Per Share, Diluted | $ 2.31 |
ACQUISITIONS (Details Textuals)
ACQUISITIONS (Details Textuals) € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2023 USD ($) | Jan. 31, 2023 EUR (€) | Oct. 31, 2022 USD ($) shares | Oct. 31, 2021 USD ($) | Jan. 31, 2023 EUR (€) | |
Business Acquisition [Line Items] | |||||
Pro Forma Revenue | $ 2,325,200 | $ 2,043,464 | |||
HEICO Electronic [Member] | TRAD | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||
Name of Acquired Entity | TRAD Tests & Radiations SAS | ||||
Description of Acquired Entity | TRAD specializes in radiation engineering, including test and simulation of radiation effects on electronic components and materials, developing and providing software for radiation testing and effects modeling, and sourcing/screening radiation tolerant and radiation hardened components. | ||||
HEICO Electronic [Member] | Ironwood | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.36% | ||||
Name of Acquired Entity | Ironwood Electronics, Inc. | ||||
Description of Acquired Entity | Ironwood designs and manufactures high performance test sockets and adapters for both engineering and production use of semiconductor devices. | ||||
Amount of contingent purchase consideration, the company could be required to pay | $ 6,400 | ||||
HEICO Electronic [Member] | Ironwood | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 19.64% | ||||
HEICO Electronic [Member] | Sensor | |||||
Business Acquisition [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 | shares | 576,338 | ||||
HEICO Electronic [Member] | Charter | |||||
Business Acquisition [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. | ||||
HEICO Electronic [Member] | Flight Microwave | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||
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. | ||||
HEICO Electronic [Member] | Paciwave [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Paciwave, Inc. | ||||
Description of Acquired Entity | Paciwave is a designer and manufacturer of Radio Frequency (RF) and microwave components and integrated assemblies specializing particularly in PIN Diode Switches, PIN Attenuators, PIN Limiters, Switching Assemblies and integrated subsystems found in defense and other complex electronic applications. | ||||
HEICO Electronic [Member] | RH Labs [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | ||||
Name of Acquired Entity | R.H. Laboratories, Inc. | ||||
Description of Acquired Entity | RH Labs designs and manufactures state-of-the-art RF and microwave integrated assemblies, sub-assemblies and components used in a broad range of demanding defense applications operating in harsh environments including Space. | ||||
HEICO Electronic [Member] | RH Labs [Member] | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 19.90% | ||||
HEICO Electronic [Member] | Pyramid [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Pyramid Semiconductor LLC | ||||
Description of Acquired Entity | Pyramid is a specialty semiconductor designer and manufacturer offering a well-developed line of processors, static random-access memory (SRAM), electronically erasable programmable read-only memory (EEPROM) and Logic products on a diverse array of military, space and medical platforms. | ||||
HEICO Electronic [Member] | Connect Tech [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 89.99% | ||||
Name of Acquired Entity | Connect Tech Inc. | ||||
Description of Acquired Entity | Connect Tech designs and manufacturers rugged, small-form-factor embedded computing solutions. Connect Tech's components are designed for very harsh environments and are primarily used in rugged commercial and industrial, aerospace and defense, transportation, and smart energy applications. | ||||
Amount of contingent purchase consideration, the company could be required to pay | $ 9,700 | ||||
HEICO Electronic [Member] | Connect Tech [Member] | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 10.01% | ||||
HEICO Electronic [Member] | TSID [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 75% | ||||
Name of Acquired Entity | Transformational Security, LLC and Intelligent Devices, Inc. (collectively, "TSID") | ||||
Description of Acquired Entity | TSID develops and manufactures state-of-the-art Technical Surveillance Countermeasures ("TSCM") equipment used to protect critical spaces from exploitation via wireless transmissions, technical surveillance and listening devices. | ||||
Amount of contingent purchase consideration, the company could be required to pay | $ 14,000 | ||||
HEICO Electronic [Member] | TSID [Member] | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 25% | ||||
HEICO Electronic [Member] | Transformational Security [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Transformational Security, LLC | ||||
HEICO Electronic [Member] | Intelligent Devices [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Intelligent Devices, Inc. | ||||
HEICO Electronic [Member] | Freebird [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||
Name of Acquired Entity | Freebird Semiconductor Corporation | ||||
HEICO Electronic [Member] | EPC [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 49% | ||||
Name of Acquired Entity | EPC Space LLC | ||||
Description of Acquired Entity | EPC designs, develops, promotes, markets and sells radiation-hardened gallium nitride power solutions packaged for use in outer space and other high reliability applications. | ||||
HEICO Electronic [Member] | HMI [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||
Name of Acquired Entity | Human-Machine Interface | ||||
Description of Acquired Entity | HMI designs, manufactures, and repairs flight deck annunciators, panels, indicators, and illuminated keyboards, as well as lighting controls, and flight deck lighting. | ||||
HEICO Electronic [Member] | Quell [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | ||||
Name of Acquired Entity | Quell Corporation | ||||
Description of Acquired Entity | Quell designs and manufactures electromagnetic interference (EMI)/radio-frequency interference (RFI) and transient protection solutions for a wide variety of connectors that principally serve customers within the aerospace and defense markets. | ||||
HEICO Electronic [Member] | Quell [Member] | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 19.90% | ||||
HEICO Electronic [Member] | 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 [Member] | Exxelia | Forecast | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Price of Acquisition, Expected | $ 449,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 14,000 | ||||
HEICO Electronic [Member] | Exxelia | Forecast | Subsequent Event [Member] | Euro Member Countries, Euro | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Price of Acquisition, Expected | € | € 453,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | € | € 14,000 | ||||
HEICO Electronic [Member] | Exxelia | Existing Management [Member] | Forecast | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 5% | 5% | |||
HFSC | Subsidiary Five [Member] | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 84% | ||||
HFSC | Accurate | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 96% | ||||
Name of Acquired Entity | Accurate Metal Machining, Inc. | ||||
Description of Acquired Entity | Accurate is a manufacturer of high-reliability components and assemblies. | ||||
Amount of contingent purchase consideration, the company could be required to pay | $ 13,100 | ||||
HFSC | Accurate | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 4% | ||||
HFSC | Pioneer | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 74% | ||||
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. | ||||
Amount of contingent purchase consideration, the company could be required to pay | $ 9,800 | ||||
HFSC | Pioneer | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 26% | ||||
HFSC | Ridge Holdco [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 89% | ||||
Name of Acquired Entity | Ridge HoldCo, LLC | ||||
Amount of contingent purchase consideration, the company could be required to pay | $ 18,300 | ||||
HFSC | Ridge Holdco [Member] | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 11% | ||||
HFSC | Ridge Engineering [Member] | Ridge Holdco [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | Ridge Engineering, Inc. | ||||
Description of Acquired Entity | Ridge performs tight-tolerance machining and brazing of large-sized parts in mission-critical defense and aerospace applications. | ||||
HFSC | Bechdon [Member] | Ridge Holdco [Member] | |||||
Business Acquisition [Line Items] | |||||
Name of Acquired Entity | The Bechdon Company, Inc. | ||||
Description of Acquired Entity | Bechdon provides machining, fabrication and welding services for aerospace, defense and other industrial applications. | ||||
HFSC | Camtronics [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | ||||
Name of Acquired Entity | Camtronics, LLC | ||||
Description of Acquired Entity | Camtronics is a Federal Aviation Administration ("FAA")-certified Part 145 repair station with extensive proprietary FAA-designated engineering representative repairs for a variety of domestic and international commercial and cargo airlines. | ||||
HFSC | Camtronics [Member] | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 10% | ||||
HFSC | Camtronics [Member] | Subsidiary Five [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 9.90% | ||||
HFSC | Rocky Mountain [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 70% | ||||
Name of Acquired Entity | Rocky Mountain Hydrostatics, LLC | ||||
Description of Acquired Entity | Rocky Mountain overhauls industrial pumps, motors, and other hydraulic units with a focus on the support of legacy systems for the U.S. Navy. | ||||
HFSC | Rocky Mountain [Member] | Existing Management [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of interest owned by noncontrolling shareholders | 30% |
SELECTED FINANCIAL STATEMENT _3
SELECTED FINANCIAL STATEMENT INFORMATION, Accounts Receivable (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Accounts receivable | $ 303,181 | $ 255,793 |
Less: Allowance for doubtful accounts | (8,333) | (10,874) |
Accounts receivable, net | $ 294,848 | $ 244,919 |
SELECTED FINANCIAL STATEMENT _4
SELECTED FINANCIAL STATEMENT INFORMATION, Inventories (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Finished products | $ 285,024 | $ 238,867 |
Work in process | 59,739 | 44,887 |
Materials, parts, assemblies and supplies | 237,708 | 194,296 |
Inventories, net of valuation reserves | $ 582,471 | $ 478,050 |
SELECTED FINANCIAL STATEMENT _5
SELECTED FINANCIAL STATEMENT INFORMATION, Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Land | $ 17,579 | $ 11,363 | |
Buildings and improvements | 148,598 | 134,150 | |
Machinery, equipment and tooling | 322,252 | 297,297 | |
Construction in progress | 14,533 | 7,784 | |
Property, Plant and Equipment, Gross | 502,962 | 450,594 | |
Less: Accumulated depreciation and amortization | (277,083) | (256,956) | |
Property, plant and equipment, net | $ 225,879 | $ 193,638 | $ 168,848 |
SELECTED FINANCIAL STATEMENT _6
SELECTED FINANCIAL STATEMENT INFORMATION, Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Accrued employee compensation and related payroll taxes | $ 130,837 | $ 121,200 |
Deferred Revenue, Current | 58,757 | 32,738 |
Accrued Liabilities, Current | 28,849 | |
Accrued customer rebates and credits | 17,938 | 13,237 |
Current operating lease liabilities | 14,656 | 13,874 |
Other Accrued Liabilities, Current | 39,162 | 25,808 |
Accrued expenses and other current liabilities | $ 290,199 | $ 206,857 |
SELECTED FINANCIAL STATEMENT _7
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION, Research and Development Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
R&D expenses | $ 76,061 | $ 68,877 | $ 65,559 |
SELECTED FINANCIAL STATEMENT _8
SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION, Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | $ (8,552) | $ (9,149) | |
Unrealized gain/(loss) | (39,645) | 535 | $ 7,937 |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 65 | 135 | 73 |
Accumulated Other Comprehensive Income (Loss), Balance End | (46,499) | (8,552) | (9,149) |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | (6,989) | (6,460) | |
Foreign Currency Translation Unrealized (loss) gain | (38,380) | (529) | |
Accumulated Other Comprehensive Income (Loss), Balance End | (45,369) | (6,989) | (6,460) |
Pension Benefit Obligation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Balance Start | (1,563) | (2,689) | |
Unrealized gain/(loss) | 368 | 991 | |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 65 | 135 | |
Accumulated Other Comprehensive Income (Loss), Balance End | (1,130) | (1,563) | $ (2,689) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gain/(loss) | $ (38,012) | $ 462 |
SELECTED FINANCIAL STATEMENT _9
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Selected Financial Statement Information (Details) [Abstract] | |||
Total customer rebates and credits deducted within net sales | $ 7,600 | $ 3,300 | $ 4,600 |
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, net | 225,879 | 193,638 | 168,848 |
Amortization | 66,076 | 65,215 | 61,494 |
Depreciation and amortization | $ 96,333 | 93,019 | 88,561 |
Other Assets and Liabilities, Noncurrent [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6% | ||
Contributions to the plan charged | $ 7,200 | 7,100 | 4,700 |
Deferred compensation plans | 204,716 | 245,584 | |
Leadership Compensation Plan [Member] | |||
Other Assets and Liabilities, Noncurrent [Abstract] | |||
Employee related deferred compensation plans, specified as other long-term liabilities | 203,000 | 244,300 | |
Tooling [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, net | 6,000 | 6,800 | |
Amortization | 2,500 | 2,800 | 3,200 |
Property, Plant and Equipment, Exclusive of Tooling [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | 30,300 | 27,800 | $ 27,100 |
Leadership Compensation Plan [Member] | |||
Other Assets and Liabilities, Noncurrent [Abstract] | |||
Deferred compensation plans | $ 204,700 | $ 245,600 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Goodwill [Roll Forward] | ||
Opening Balances | $ 1,450,395 | $ 1,383,167 |
Goodwill acquired | 244,042 | 66,450 |
Foreign currency translation adjustments | 15,007 | (767) |
Adjustments to goodwill | (7,005) | 11 |
Ending Balances | 1,672,425 | 1,450,395 |
Flight Support Group [Member] | ||
Goodwill [Roll Forward] | ||
Opening Balances | 468,288 | 427,565 |
Goodwill acquired | 106,919 | 40,308 |
Foreign currency translation adjustments | 6,335 | (227) |
Adjustments to goodwill | (6,911) | 188 |
Ending Balances | 561,961 | 468,288 |
Electronic Technologies Group [Member] | ||
Goodwill [Roll Forward] | ||
Opening Balances | 982,107 | 955,602 |
Goodwill acquired | 137,123 | 26,142 |
Foreign currency translation adjustments | 8,672 | (540) |
Adjustments to goodwill | (94) | (177) |
Ending Balances | $ 1,110,464 | $ 982,107 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Amortizing Assets: | ||
Customer Relationships, Gross | $ 539,529 | $ 464,506 |
Intellectual Property, Gross | 284,171 | 255,011 |
Other Finite-Lived Intangible Assets, Gross | 8,700 | 8,841 |
Gross Carrying Amount | 832,400 | 728,358 |
Accumulated Amortization | (314,127) | (322,255) |
Amortizing Net Carrying Amount | 518,273 | 406,103 |
Non-Amortizing Assets: | ||
Indefinite-Lived Trade Names | 215,054 | 176,204 |
Total Gross Carrying Amount | 1,047,454 | 904,562 |
Total Net Carrying Amount | 733,327 | 582,307 |
Customer Relationships [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (208,127) | (221,098) |
Amortizing Net Carrying Amount | 331,402 | 243,408 |
Intellectual Property [Member] | ||
Amortizing Assets: | ||
Accumulated Amortization | (98,983) | (94,313) |
Amortizing Net Carrying Amount | 185,188 | 160,698 |
Other | ||
Amortizing Assets: | ||
Accumulated Amortization | (7,017) | (6,844) |
Amortizing Net Carrying Amount | $ 1,683 | $ 1,997 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Expected Tax Deductible Amount | $ 99 | $ 55 | |
Amortization expense related to intangible assets | 62.5 | $ 61.3 | $ 57.4 |
Estimated Amortization expense related to intangible assets, year one | 66.1 | ||
Estimated Amortization expense related to intangible assets, year two | 61 | ||
Estimated Amortization expense related to intangible assets, year three | 56.5 | ||
Estimated Amortization expense related to intangible assets, year four | 51.9 | ||
Estimated Amortization expense related to intangible assets, year five | 48.7 | ||
Estimated Amortization expense related to intangible assets, year, there after | $ 234.1 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | |
Borrowings under revolving credit facility | $ 275,000 | $ 225,000 | |
Finance leases and notes payable | [1] | 15,274 | 11,498 |
Long-term Debt and Lease Obligation, Including Current Maturities | 290,274 | 236,498 | |
Less: Current maturities of long-term debt | (1,654) | (1,515) | |
Long-term debt, net of current maturities | $ 288,620 | $ 234,983 | |
[1]See Note 9, Leases, for additional information regarding the Company's finance leases. |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 4.60% | 1.10% | ||
Credit Facility [Abstract] | ||||
Line of Credit Facility, Increase (Decrease), Net | $ 200,000 | |||
Credit Facility, Current Borrowing Capacity | $ 1,500,000 | $ 1,300,000 | ||
Line of Credit Facility Change in Borrowing Capacity | 350,000 | |||
Credit Facility, Maximum Borrowing Capacity | $ 1,850,000 | |||
Credit facility, interest rate description | Borrowings under the Credit Facility accrue interest at the Company's election of the Base Rate or Adjusted Term SOFR, plus in each case, the Applicable Rate (based on the Company’s Total Leverage Ratio). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) Adjusted Term SOFR for an Interest Period of one month plus 100 basis points. Adjusted Term SOFR is the rate per annum equal to Term SOFR plus a Term SOFR Adjustment of .10%; provided that Adjusted Term SOFR as so determined shall never be less than 0%, as such capitalized terms are defined in the Credit Facility. | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Credit Facility [Abstract] | ||||
Credit facility unused capacity, commitment fee percentage | 0.125% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Credit Facility [Abstract] | ||||
Credit facility unused capacity, commitment fee percentage | 0.30% | |||
Revolving Credit Facility [Member] | Eurodollar [Member] | Minimum [Member] | ||||
Credit Facility [Abstract] | ||||
Credit Facility, Interest Rate, Increase (Decrease) | 1% | |||
Revolving Credit Facility [Member] | Eurodollar [Member] | Maximum [Member] | ||||
Credit Facility [Abstract] | ||||
Credit Facility, Interest Rate, Increase (Decrease) | 2% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||
Credit Facility [Abstract] | ||||
Credit Facility, Interest Rate, Increase (Decrease) | 0% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||
Credit Facility [Abstract] | ||||
Credit Facility, Interest Rate, Increase (Decrease) | 1% | |||
Foreign Line of Credit [Member] | ||||
Credit Facility [Abstract] | ||||
Credit Facility, Current Borrowing Capacity | $ 100,000 | |||
Letter of Credit [Member] | ||||
Credit Facility [Abstract] | ||||
Credit Facility, Current Borrowing Capacity | $ 50,000 |
REVENUE (Contract Assets and Li
REVENUE (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 93,978 | $ 80,073 |
Contract liabilities | 58,757 | 32,738 |
Net contract assets | 35,221 | $ 47,335 |
Change in contract assets | 13,905 | |
Change in contract liabilities | 26,019 | |
Change in net contract assets | $ (12,114) |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue, by Product Line) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | $ 2,208,322 | $ 1,865,682 | $ 1,787,009 | |
Flight Support Group [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 1,255,212 | 927,089 | 924,812 | |
Flight Support Group [Member] | Aftermarket Replacement Parts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | [1] | 694,900 | 535,217 | 525,636 |
Flight Support Group [Member] | Repair and Overhaul Parts and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | [2] | 264,986 | 208,215 | 193,164 |
Flight Support Group [Member] | Specialty Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | [3] | 295,326 | 183,657 | 206,012 |
Electronic Technologies Group [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 972,475 | 959,170 | 874,987 | |
Electronic Technologies Group [Member] | Electronic Components for Defense, Space and Aerospace [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | [4] | 672,147 | 709,621 | 679,901 |
Electronic Technologies Group [Member] | Other Electronic Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | [5] | 300,328 | 249,549 | 195,086 |
Corporate And Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | $ (19,365) | $ (20,577) | $ (12,790) | |
[1]Includes various jet engine and aircraft component replacement parts.[2]Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft.[3]Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh 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 airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, and radiation assurance services and products.[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, rugged small form-factor embedded computing solutions and high performance test sockets and adaptors. |
REVENUE (Disaggregation of Re_2
REVENUE (Disaggregation of Revenue, by Industry) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | $ 2,208,322 | $ 1,865,682 | $ 1,787,009 | |
Flight Support Group [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 1,255,212 | 927,089 | 924,812 | |
Flight Support Group [Member] | Aerospace [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 876,254 | 660,867 | 669,194 | |
Flight Support Group [Member] | Defense and Space [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 316,460 | 224,236 | 213,273 | |
Flight Support Group [Member] | Other Industries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | [1] | 62,498 | 41,986 | 42,345 |
Electronic Technologies Group [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 972,475 | 959,170 | 874,987 | |
Electronic Technologies Group [Member] | Aerospace [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 86,780 | 74,766 | 71,657 | |
Electronic Technologies Group [Member] | Defense and Space [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | 545,384 | 599,570 | 577,581 | |
Electronic Technologies Group [Member] | Other Industries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | [2] | 340,311 | 284,834 | 225,749 |
Corporate And Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer | $ (19,365) | $ (20,577) | $ (12,790) | |
[1]Principally industrial products.[2]Principally other electronics and medical products. |
REVENUE (Details Textuals)
REVENUE (Details Textuals) $ in Millions | 12 Months Ended |
Oct. 31, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Liability, Revenue Recognized | $ 24.9 |
Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation, Amount | $ 582.3 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation, Amount | $ 321.5 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation, Amount | $ 260.8 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year 1 day |
INCOME TAXES, Domestic and Fore
INCOME TAXES, Domestic and Foreign Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 429,329 | $ 345,733 | $ 327,754 |
Foreign | 61,694 | 41,325 | 37,101 |
Income before taxes and noncontrolling interests | $ 491,023 | $ 387,058 | $ 364,855 |
INCOME TAXES, Current and Defer
INCOME TAXES, Current and Deferred Expense Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Current: | |||
Federal | $ 63,861 | $ 47,839 | $ 17,730 |
State | 13,015 | 11,639 | 4,167 |
Foreign | 14,648 | 13,457 | 13,101 |
Current income tax expense | 91,524 | 72,935 | 34,998 |
Deferred: | |||
Federal | 8,154 | (10,097) | (3,364) |
State | 1,129 | (3,251) | (55) |
Foreign | (407) | (2,287) | (2,579) |
Deferred Income Tax Expense (Benefit) | 8,876 | (15,635) | (5,998) |
Income tax expense | $ 100,400 | $ 57,300 | $ 29,000 |
INCOME TAXES, Rate Reconciliati
INCOME TAXES, Rate Reconciliation (Details) | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Federal statutory income tax rate | 21% | 21% | 21% |
State taxes, less applicable federal income tax reduction | 2.60% | 2.90% | 3.70% |
Tax-exempt losses on corporate-owned life insurance policies | 2.80% | ||
Tax Exempt Gains on Corporate-owned Life Insurance Policies | (2.90%) | (0.70%) | |
Tax benefit related to stock option exercises | (3.60%) | (3.70%) | (13.30%) |
Research and development tax credits | (1.50%) | (2.50%) | (2.40%) |
Foreign derived intangible income deduction | (1.90%) | (1.90%) | (1.60%) |
Nondeductible compensation | 1.20% | 1.20% | 0.40% |
Other, net | (0.20%) | 0.70% | 0.80% |
Effective tax rate | 20.40% | 14.80% | 7.90% |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Deferred tax assets: | ||
Inventories | $ 51,505 | $ 41,354 |
Deferred compensation liability | 42,285 | 54,726 |
Operating lease liabilities | 20,043 | 16,483 |
Share-based compensation | 9,177 | 8,759 |
Bonus accrual | 4,482 | 4,615 |
Customer rebates accrual | 3,323 | 2,236 |
Vacation accrual | 2,127 | 1,910 |
Allowance for doubtful accounts receivable | 1,598 | 2,532 |
Deferred Tax Assets, Deferred Payroll Taxes | 1,262 | 2,372 |
Other | 12,687 | 9,102 |
Deferred Tax Assets, Gross | 148,489 | 144,089 |
Deferred tax liabilities: | ||
Goodwill and other intangible assets | (176,436) | (145,024) |
Property, plant and equipment | (21,746) | (19,580) |
Operating lease right-of-use assets | (19,344) | (15,941) |
Adoption of ASC 606 (revenue recognition) | (388) | (2,677) |
Other | (1,737) | (1,628) |
Total deferred tax liabilities | (219,651) | (184,850) |
Net deferred tax liabilities | $ (71,162) | $ (40,761) |
INCOME TAXES, Unrecognized Tax
INCOME TAXES, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balances as of beginning of year | $ 4,072 | $ 2,946 |
Increases related to current year tax positions | 870 | 710 |
Increases related to prior year tax positions | 0 | 839 |
Decreases related to prior year tax positions | (286) | 0 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (522) | 0 |
Lapse of statutes of limitations | (631) | (423) |
Balances as of end of year | $ 3,503 | $ 4,072 |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate, Continuing Operations | 20.40% | 14.80% | 7.90% |
Deferred Tax Expense from Stock Options Exercised | $ 14,200 | $ 48,300 | |
Change in tax benefit for stock option exercises | 34,100 | ||
Gross unrecognized tax benefits related to uncertain tax positions | $ 3,503 | 4,072 | $ 2,946 |
Unrecognized tax benefits that would impact effective tax rate | $ 2,800 | $ 3,200 | |
Unfavorable change from tax-exempt unrealized losses on Corporate-owned Life Insurance Policies | 5.70% |
FAIR VALUE MEASUREMENTS, Assets
FAIR VALUE MEASUREMENTS, Assets and Liabilities, Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Assets [Abstract] | ||
Deferred Compensation Plan Assets | $ 204,716 | $ 245,584 |
Liabilities [Abstract] | ||
Contingent consideration, liability | 82,803 | 62,286 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 3,477 | 4 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 201,239 | 245,580 |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities [Abstract] | ||
Contingent consideration, liability | 82,803 | 62,286 |
Corporate Owned Life Insurance [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 201,239 | 245,580 |
Corporate Owned Life Insurance [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 201,239 | 245,580 |
Money Market Funds [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | 3,477 | 4 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets [Abstract] | ||
Deferred Compensation Plan Assets | $ 3,477 | $ 4 |
FAIR VALUE MEASUREMENTS, Contin
FAIR VALUE MEASUREMENTS, Contingent Consideration Level 3 Valuation Inputs (Details) $ in Thousands | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 82,803 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 82,803 | $ 62,286 | $ 41,974 | |
FY2022 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 6,308 | |||
FY2022 Acquisition Subsidiary 2 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 12,739 | |||
FY2022 Acquisition Subsidiary 3 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 9,127 | |||
FY2021 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 17,957 | |||
FY2020 Acquisition Subsidiary 1 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 17,723 | |||
FY 2017 Acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 18,949 | |||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.14 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | 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 | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.17 | |||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 2 | Fair Value, Inputs, Level 3 [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] | FY2022 Acquisition Subsidiary 2 | Fair Value, Inputs, Level 3 [Member] | 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 2 | Fair Value, Inputs, Level 3 [Member] | 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 3 | Fair Value, Inputs, Level 3 [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] | FY2022 Acquisition Subsidiary 3 | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | (0.03) | |||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 3 | Fair Value, Inputs, Level 3 [Member] | 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, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.08 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2021 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.03 | |||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2021 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.10 | |||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.22 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.15 | |||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.24 | |||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | Fair Value, Inputs, Level 3 [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] | Fair Value, Inputs, Level 3 [Member] | 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] | FY 2017 Acquisition [Member] | Fair Value, Inputs, Level 3 [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, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.085 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.085 | |||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.085 | |||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.085 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.085 | |||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.085 | |||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 3 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.074 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 3 | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.074 | |||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 3 | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.074 | |||
Measurement Input, Discount Rate [Member] | FY2021 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.086 | ||
Measurement Input, Discount Rate [Member] | FY2021 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.085 | |||
Measurement Input, Discount Rate [Member] | FY2021 Acquisition Subsidiary 1 | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.090 | |||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.090 | ||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.090 | |||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.090 | |||
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.059 | ||
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.059 | |||
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.059 | |||
[1]Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. |
FAIR VALUE MEASUREMENTS, Asse_2
FAIR VALUE MEASUREMENTS, Assets and Liabilities, Measured at Fair Value Using Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Payment of contingent consideration | $ 7,631 | $ (1,246) | $ (515) |
Liabilities, Ending Balance | 82,803 | ||
Accrued Liabilities, Current | 290,199 | 206,857 | |
Other Liabilities, Noncurrent | 338,948 | 378,257 | |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Liabilities, Opening Balance | 62,286 | 41,974 | |
Contingent consideration related to acquisition | 29,732 | 18,334 | |
Increase in accrued contingent consideration, net | (7,631) | 1,246 | |
Payment of contingent consideration | (320) | ||
Change in Unrealized Gain (Loss) | (1,264) | 732 | |
Liabilities, Ending Balance | 82,803 | $ 62,286 | $ 41,974 |
Accrued Liabilities, Current | 28,849 | ||
Other Liabilities, Noncurrent | $ 53,954 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2022 CAD ($) | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent consideration, liability | $ 82,803 | $ 62,286 | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense | |
Fair Value, Inputs, Level 3 [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Contingent consideration, liability | $ 82,803 | $ 62,286 | |
FY2022 Acquisition Subsidiary 1 | Electronic Technologies Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 80.36% | 80.36% | |
Amount of contingent purchase consideration, the company could be required to pay | $ 12,100 | ||
Contingent consideration, liability | $ 6,300 | ||
FY2022 Acquisition Subsidiary 2 | Flight Support Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 96% | 96% | |
Amount of contingent purchase consideration, the company could be required to pay | $ 27,400 | ||
Contingent consideration, liability | $ 12,700 | ||
FY2022 Acquisition Subsidiary 3 | Flight Support Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 74% | 74% | |
Amount of contingent purchase consideration, the company could be required to pay | $ 14,100 | ||
Contingent consideration, liability | $ 9,100 | ||
FY2021 Acquisition Subsidiary 1 | Flight Support Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 89% | 89% | |
Amount of contingent purchase consideration, the company could be required to pay | $ 17,800 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 8,900 | ||
Contingent consideration, liability | $ 18,000 | ||
FY2020 Acquisition Subsidiary 1 [Member] | Electronic Technologies Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 89.99% | 89.99% | |
Amount of contingent purchase consideration, the company could be required to pay | $ 19,800 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 9,900 | ||
Contingent consideration, liability | 7,800 | ||
FY2020 Acquisition Subsidiary 2 [Member] | Electronic Technologies Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Amount of contingent purchase consideration, the company could be required to pay | 35,000 | ||
Contingent consideration, liability | $ 13,300 | ||
FY 2017 Acquisition [Member] | Electronic Technologies Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Amount of contingent purchase consideration, the company could be required to pay | 20,000 | ||
Contingent consideration, liability | $ 18,900 | ||
Canada, Dollars | FY2020 Acquisition Subsidiary 1 [Member] | Electronic Technologies Group [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Amount of contingent purchase consideration, the company could be required to pay | $ 27,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 13,500 | ||
Contingent consideration, liability | $ 10,700 |
LEASES (ROU Assets and Lease Li
LEASES (ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Leases, Operating [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 89,752 | $ 74,609 |
Operating Lease, Liability, Current | 14,656 | 13,874 |
Operating Lease, Liability, Noncurrent | 76,965 | 61,829 |
Operating Lease, Liability | 91,621 | 75,703 |
Leases, Capital [Abstract] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 15,786 | 12,250 |
Finance Lease, Liability, Current | 1,620 | 1,481 |
Finance Lease, Liability, Noncurrent | 13,376 | 9,764 |
Finance leases and notes payable | $ 14,996 | $ 11,245 |
LEASES (Operating Lease Expense
LEASES (Operating Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | ||
Leases, Operating [Abstract] | |||
Operating Lease, Cost | $ 19,877 | $ 18,103 | |
Operating Lease, Variable Lease Expense | 3,552 | 3,165 | |
Operating Lease, Expense | [1] | 23,429 | 21,268 |
Leases, Capital [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | 1,540 | 1,110 | |
Finance Lease, Interest Expense | 578 | 453 | |
Finance Lease, Variable Lease Expense | 319 | 750 | |
Finance Lease Expense | $ 2,437 | $ 2,313 | |
[1]Excludes short-term lease expense, which is not material |
LEASES (Future minimum lease pa
LEASES (Future minimum lease payments) (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Leases, Operating [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 18,925 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 17,549 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 16,240 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 12,941 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 9,859 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 37,305 | |
Lessee, Operating Lease, Liability, to be Paid | 112,819 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (21,198) | |
Operating Lease, Liability | 91,621 | $ 75,703 |
Leases, Capital [Abstract] | ||
Finance Lease, Liability, to be Paid, Year One | 2,389 | |
Finance Lease, Liability, to be Paid, Year Two | 2,283 | |
Finance Lease, Liability, to be Paid, Year Three | 2,197 | |
Finance Lease, Liability, to be Paid, Year Four | 2,177 | |
Finance Lease, Liability, to be Paid, Year Five | 2,043 | |
Finance Lease, Liability, to be Paid, after Year Five | 7,959 | |
Finance Lease, Liability, Payment, Due | 19,048 | |
Finance Lease, Liability, Undiscounted Excess Amount | (4,052) | |
Finance leases and notes payable | $ 14,996 | $ 11,245 |
LEASES (Lease term and discount
LEASES (Lease term and discount rates) (Details) | Oct. 31, 2022 | Oct. 31, 2021 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 10 months 24 days | 9 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.40% | 4.70% |
Finance Lease, Weighted Average Remaining Lease Term | 9 years | 9 years 2 months 12 days |
Finance Lease, Weighted Average Discount Rate, Percent | 5.50% | 4.60% |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | ||
Operating Lease, Payments | $ 19,323 | $ 17,999 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 31,865 | 31,351 |
Finance Lease, Interest Payment on Liability | 578 | 453 |
Finance Lease, Principal Payments | 1,568 | 1,187 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 5,373 | $ 2,861 |
LEASES (Details Textuals)
LEASES (Details Textuals) | Oct. 31, 2022 | Oct. 31, 2021 |
Leases [Abstract] | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Lease Obligation | Long-Term Debt and Lease Obligation |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Lease Obligation, Current | Long-Term Debt and Lease Obligation, Current |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 4,886,353 | ||
Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 104,867 | 32,355 | 127,851 |
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 13,300 | $ 3,800 | $ 12,100 |
Heico Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 87,593 | ||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 12,700 | ||
Sensor | HEICO Electronic [Member] | |||
Noncontrolling Interest [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||
Stock Issued During Period, Shares, Acquisitions | 576,338 |
SHARE-BASED COMPENSATION, Share
SHARE-BASED COMPENSATION, Share-based Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Shares Available for Grant [Roll Forward] | |||
Opening Balance Outstanding Shares (Shares Available For Grant) | 3,374 | 4,064 | 4,085 |
Granted (Available for Grant) | (56) | (699) | (29) |
Cancelled (Available for Grant) | 6 | 9 | 8 |
Ending Balance Outstanding Shares (Shares Available For Grant) | 3,324 | 3,374 | 4,064 |
Shares Outstanding [Roll Forward] | |||
Outstanding (Shares Under Option) | 4,341 | 3,993 | 4,692 |
Granted (Shares Under Option) | 56 | 699 | 29 |
Exercised (Shares Under Option) | (762) | (342) | (720) |
Cancelled (Shares Under Option) | (6) | (9) | (8) |
Outstanding (Shares Under Option) | 3,629 | 4,341 | 3,993 |
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding (in dollars per share) | $ 52.16 | $ 36.75 | $ 33.73 |
Granted (in dollars per share) | 120.76 | 125.57 | 97 |
Exercised (in dollars per share) | 22.40 | 21.88 | 19.32 |
Cancelled (in dollars per share) | 67.98 | 64.78 | 55.61 |
Outstanding (in dollars per share) | $ 59.44 | $ 52.16 | $ 36.75 |
SHARE-BASED COMPENSATION, Optio
SHARE-BASED COMPENSATION, Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Stock Options Outstanding [Abstract] | ||||
Number Outstanding (in shares) | 3,629 | 4,341 | 3,993 | 4,692 |
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 59.44 | $ 52.16 | $ 36.75 | $ 33.73 |
Outstanding Weighted Average Contractual Life (in years) | 5 years 1 month 6 days | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 300,932 | |||
Stock Options Exercisable [Abstract] | ||||
Number Exercisable (in shares) | 2,709 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 43.06 | |||
Exercisable Weighted Average Contractual Life (in years) | 4 years 1 month 6 days | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 272,480 | |||
Heico Common Stock [Member] | ||||
Stock Options Outstanding [Abstract] | ||||
Number Outstanding (in shares) | 1,546 | |||
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 55.51 | |||
Outstanding Weighted Average Contractual Life (in years) | 4 years 6 months | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 165,640 | |||
Stock Options Exercisable [Abstract] | ||||
Number Exercisable (in shares) | 1,252 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 40.86 | |||
Exercisable Weighted Average Contractual Life (in years) | 3 years 8 months 12 days | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 152,481 | |||
Common Class A [Member] | ||||
Stock Options Outstanding [Abstract] | ||||
Number Outstanding (in shares) | 2,083 | |||
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 62.36 | |||
Outstanding Weighted Average Contractual Life (in years) | 5 years 6 months | |||
Outstanding Aggregated Intrinsic Value (in dollars) | $ 135,292 | |||
Stock Options Exercisable [Abstract] | ||||
Number Exercisable (in shares) | 1,457 | |||
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 44.95 | |||
Exercisable Weighted Average Contractual Life (in years) | 4 years 4 months 24 days | |||
Exercisable Aggregate Intrinsic Value (in dollars) | $ 119,999 |
SHARE-BASED COMPENSATION, Infor
SHARE-BASED COMPENSATION, Information on Options Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Proceeds from stock option exercises | $ 2,352 | $ 5,344 | $ 6,955 |
Tax benefit from stock option exercises | 17,752 | 14,186 | 48,326 |
Intrinsic value of stock option exercises | $ 86,015 | $ 33,428 | $ 53,384 |
SHARE-BASED COMPENSATION, Assum
SHARE-BASED COMPENSATION, Assumptions for Option Grants Fair Value Calculation (Details) - $ / shares | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Common Class A [Member] | |||
Expected stock price volatility | 32.61% | 32.65% | 24.94% |
Risk-free interest rate | 1.72% | 1.09% | 1.72% |
Dividend yield | 0.18% | 0.19% | 0.21% |
Forfeiture rate | 0% | 0% | 0% |
Expected option life (years) | 6 years | 6 years | 6 years |
Weighted average fair value | $ 41 | $ 39 | $ 26.86 |
Heico Common Stock [Member] | |||
Expected stock price volatility | 30.17% | ||
Risk-free interest rate | 1.40% | ||
Dividend yield | 0.17% | ||
Forfeiture rate | 0% | ||
Expected option life (years) | 9 years | ||
Weighted average fair value | $ 51.16 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Textuals) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Shares approved by Shareholders (Shares Available for Grant) | 5,000 | |||
Number Outstanding (in shares) | 3,629 | 4,341 | 3,993 | 4,692 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 3,324 | 3,374 | 4,064 | 4,085 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Pre-tax unrecognized compensation expense related to nonvested stock options | $ 29.6 | |||
Pre-tax unrecognized compensation expense related to nonvested stock options, expected to be recognized over a weighted average period (in years) | 3 years 6 months | |||
Fair value of stock options, Vested | $ 14.3 | $ 9.4 | $ 10.5 | |
Common Class A [Member] | ||||
Number Outstanding (in shares) | 2,083 | |||
Stock Option and Future Grants [Member] | ||||
Shares approved by Shareholders (Shares Available for Grant) | 6,900 | |||
Number Outstanding (in shares) | 3,600 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 3,300 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Payment Arrangement, Expense | $ 12.6 | 9.1 | 10.1 | |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 1.7 | $ 1.5 | $ 1.9 |
EMPLOYEE RETIREMENT PLANS, Defi
EMPLOYEE RETIREMENT PLANS, Defined Contribution Plan Share-based Activity (Details) - shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Shares available for issuance, Opening Balance | 188 | 228 | 280 |
Issuance of common stock to 401(k) Plan | (43) | (40) | (52) |
Shares available for issuance, Ending Balance | 145 | 188 | 228 |
Common Class A [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Shares available for issuance, Opening Balance | 188 | 228 | 280 |
Issuance of common stock to 401(k) Plan | (43) | (40) | (52) |
Shares available for issuance, Ending Balance | 145 | 188 | 228 |
EMPLOYEE RETIREMENT PLANS (Deta
EMPLOYEE RETIREMENT PLANS (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | ||
Defined contribution plan partcipants employees range maximum | 6% | ||
Defined contribution plan, vesting of employee contribution and cash dividends, percent | 100% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 12.2 | $ 10.1 | $ 9.6 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS (Aggregate Redemption Amount) (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Aggregate Redemption Amount Estimate [Line Items] | ||
Redeemable Noncontrolling Interest, Equity, Fair Value | $ 300,693 | $ 217,416 |
Noncontrolling Interest, Change in Redemption Value | 26,908 | 35,171 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 327,601 | $ 252,587 |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS (Put Rights) (Details) | 12 Months Ended | |
Oct. 31, 2022 | ||
Electronic Technologies Group [Member] | Subsidiary One [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2005 | |
Business Acquisition, Percentage of Voting Interests Acquired | 95.90% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 1 year | [2] |
Electronic Technologies Group [Member] | Subsidiary Four [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2009 | |
Business Acquisition, Percentage of Voting Interests Acquired | 82.50% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 1 year | |
Electronic Technologies Group [Member] | Subsidiary Ten [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2015 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 2 years | |
Electronic Technologies Group [Member] | Subsidiary Twelve [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2018 | |
Business Acquisition, Percentage of Voting Interests Acquired | 85% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 1 year | |
Electronic Technologies Group [Member] | Subsidiary Fourteen [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2019 | |
Business Acquisition, Percentage of Voting Interests Acquired | 92.70% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | |
Put Rights Purchase Period | 4 years | |
Electronic Technologies Group [Member] | Subsidiary Twenty-Eight | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2019 | |
Business Acquisition, Percentage of Voting Interests Acquired | 85% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2024 | |
Put Rights Purchase Period | 4 years | |
Electronic Technologies Group [Member] | Subsidiary Seventeen [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2019 | |
Business Acquisition, Percentage of Voting Interests Acquired | 75% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2024 | |
Put Rights Purchase Period | 4 years | [3] |
Electronic Technologies Group [Member] | Subsidiary Eighteen [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2020 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2025 | |
Put Rights Purchase Period | 4 years | |
Electronic Technologies Group [Member] | Subsidiary Twenty [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2020 | |
Business Acquisition, Percentage of Voting Interests Acquired | 75% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2024 | |
Put Rights Purchase Period | 4 years | [4] |
Electronic Technologies Group [Member] | Subsidiary Twenty-One [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2020 | |
Business Acquisition, Percentage of Voting Interests Acquired | 90% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2025 | |
Put Rights Purchase Period | 4 years | |
Electronic Technologies Group [Member] | Subsidiary Twenty-Four | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2021 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2024 | |
Put Rights Purchase Period | 3 years | [5] |
Electronic Technologies Group [Member] | Subsidiary Twenty-Seven | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2022 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.40% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2027 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Two [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2006 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Three [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2008 | |
Business Acquisition, Percentage of Voting Interests Acquired | 90% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2024 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Five [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2012 | |
Business Acquisition, Percentage of Voting Interests Acquired | 84% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Six [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2012 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2027 | |
Put Rights Purchase Period | 4 years | [4] |
Flight Support Group [Member] | Subsidiary Seven [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2015 | |
Business Acquisition, Percentage of Voting Interests Acquired | 82% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 3 years | [6] |
Flight Support Group [Member] | Subsidiary Eight [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2015 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [1] |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Nine [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2015 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2023 | [7] |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Eleven [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2017 | |
Business Acquisition, Percentage of Voting Interests Acquired | 90.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2024 | [7] |
Put Rights Purchase Period | 1 year | |
Flight Support Group [Member] | Subsidiary Thirteen [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2018 | |
Business Acquisition, Percentage of Voting Interests Acquired | 90% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2027 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Sixteen [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2019 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2026 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Nineteen [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2020 | |
Business Acquisition, Percentage of Voting Interests Acquired | 70% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2027 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Twenty-Two [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2021 | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.10% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2026 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Twenty-Three [Member] | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2021 | |
Business Acquisition, Percentage of Voting Interests Acquired | 89% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2028 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Twenty-Five | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2022 | |
Business Acquisition, Percentage of Voting Interests Acquired | 74% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2029 | |
Put Rights Purchase Period | 4 years | |
Flight Support Group [Member] | Subsidiary Twenty-Six | ||
Business Acquisition [Line Items] | ||
Effective Date of Acquisition | Oct. 31, 2022 | |
Business Acquisition, Percentage of Voting Interests Acquired | 96% | |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 31, 2029 | |
Put Rights Purchase Period | 4 years | |
[1]Currently puttable.[2]The Put Right for a 2.6% noncontrolling interest is to be purchased in a lump sum and the Put Right for the remaining 1.5% interest is to be purchased over a four-year period.[3]The exercise of the Put Right for either entity will automatically trigger a Put Right exercise for the other entity.[4]The Put Rights for a 14.9% noncontrolling interest and the remaining 5.0% interest may be exercised beginning in fiscal 2027 and 2029, respectively, with each purchase over a four-year period.[5]The Put Rights for an aggregate 13.5% noncontrolling interest may be exercised beginning in fiscal 2024 with the purchase over a three-year period. The Put Right for the remaining 6.4% noncontrolling interest may be exercised beginning in fiscal 2028 with the purchase over a four-year period.[6]The Put Right for a 15% noncontrolling interest may be exercised in 5% increments annually and the first increment is currently puttable. The Put Right for the remaining 3% noncontrolling interest may be exercised in one-fifth increments beginning in fiscal 2028.[7]Put Right previously exercised. |
REDEEMABLE NONCONTROLLING INT_5
REDEEMABLE NONCONTROLLING INTERESTS (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | May 31, 2022 | May 31, 2021 | Jun. 30, 2020 | May 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |||||||
Aggregate Redemption Amount Puttable | $ 103,200 | ||||||
Potential Redemption Amount Payable | 56,300 | ||||||
Business Acquisition [Line Items] | |||||||
Acquisitions of noncontrolling interests | $ (8,700) | $ (2,336) | $ (7,475) | ||||
FY 2015 Acquisition [Member] | Flight Support Group [Member] | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.90% | ||||||
FY 2017 Acquisition [Member] | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 9.95% | ||||||
FY 2017 Acquisition [Member] | Flight Support Group [Member] | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.90% | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 90.05% | ||||||
FY2015 Acquisition 2 | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of Voting Interests Sold | 3% | ||||||
FY2015 Acquisition 2 | Flight Support Group [Member] | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20% | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 82% | ||||||
FY2018 Acquisition 1 | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of Voting Interests Sold | 10% | ||||||
FY2018 Acquisition 1 | Flight Support Group [Member] | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 90% | ||||||
FY2008 Acquisition [Member] | Flight Support Group [Member] | Flight Support Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 17.70% | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 90% | 86.20% | |||||
FY2012 Acquisition [Member] | Electronic Technologies Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 22% | ||||||
FY2012 Acquisition [Member] | Electronic Technologies Group [Member] | Electronic Technologies Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% |
NET INCOME PER SHARE ATTRIBUT_3
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Numerator: | |||
Net income attributable to HEICO | $ 351,675 | $ 304,220 | $ 313,984 |
Denominator: | |||
Weighted average common shares outstanding - basic | 136,010 | 135,326 | 134,754 |
Effect of dilutive stock options | 2,027 | 2,528 | 2,548 |
Weighted Average Number of Shares Outstanding, Diluted | 138,037 | 137,854 | 137,302 |
Earnings Per Share, Basic | $ 2.59 | $ 2.25 | $ 2.33 |
Earnings Per Share, Diluted | $ 2.55 | $ 2.21 | $ 2.29 |
Anti-dilutive stock options excluded | 749 | 185 | 258 |
OPERATING SEGMENTS (Last three
OPERATING SEGMENTS (Last three years, segment information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | $ 2,208,322 | $ 1,865,682 | $ 1,787,009 | |
Depreciation | 30,257 | 27,804 | 27,067 | |
Amortization | 66,076 | 65,215 | 61,494 | |
Operating income | 496,844 | 392,900 | 376,648 | |
Capital expenditures | 31,982 | 36,183 | 22,940 | |
Flight Support Group [Member] | ||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | 1,255,212 | 927,089 | 924,812 | |
Depreciation | 15,656 | 13,992 | 14,339 | |
Amortization | 24,268 | 20,648 | 19,957 | |
Operating income | 267,167 | 151,930 | 143,051 | |
Capital expenditures | 15,588 | 8,915 | 10,843 | |
Electronic Technologies Group [Member] | ||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | 972,475 | 959,170 | 874,987 | |
Depreciation | 13,602 | 12,839 | 11,722 | |
Amortization | 40,690 | 43,431 | 40,553 | |
Operating income | 269,473 | 277,306 | 258,814 | |
Capital expenditures | 15,530 | 26,496 | 12,025 | |
Other Primarily Corporate and Inter Segment [Member] | ||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Depreciation | 999 | 973 | 1,006 | |
Amortization | 1,118 | 1,136 | 984 | |
Operating income | (39,796) | (36,336) | (25,217) | |
Capital expenditures | 864 | 772 | 72 | |
Consolidation, Eliminations [Member] | Other Primarily Corporate and Inter Segment [Member] | ||||
Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | [1] | $ (19,365) | $ (20,577) | $ (12,790) |
[1]Intersegment activity principally consists of net sales from the ETG to the FSG. |
OPERATING SEGMENTS (Total asset
OPERATING SEGMENTS (Total assets) (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 4,095,496 | $ 3,498,407 |
Operating Segments [Member] | Flight Support Group [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,635,229 | 1,274,462 |
Operating Segments [Member] | Electronic Technologies Group [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,230,744 | 1,952,413 |
Corporate And Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 229,523 | $ 271,532 |
OPERATING SEGMENTS (Geographica
OPERATING SEGMENTS (Geographical information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 2,208,322 | $ 1,865,682 | $ 1,787,009 |
Property, Plant and Equipment, Net | 225,879 | 193,638 | 168,848 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,443,581 | 1,194,869 | 1,193,497 |
Property, Plant and Equipment, Net | 190,148 | 155,537 | 139,197 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 764,741 | 670,813 | 593,512 |
Property, Plant and Equipment, Net | $ 35,731 | $ 38,101 | $ 29,651 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Product warranty) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balances as of beginning of year | $ 3,379 | $ 3,015 |
Accruals for warranties | 2,026 | 1,979 |
Acquired warranty liabilities | 242 | 62 |
Warranty claims settled | (2,351) | (1,677) |
Balances as of end of year | $ 3,296 | $ 3,379 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textuals) $ in Thousands | Oct. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 23,500 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Opening Balance | $ 10,874 | $ 12,738 | $ 3,666 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | [1] | (1,070) | (1,720) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | [1] | 9,834 | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | [2] | 476 | 360 | 128 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [3] | (1,947) | (504) | (890) |
Valuation Allowances and Reserves, Ending Balance | 8,333 | 10,874 | 12,738 | |
SEC Schedule, 12-09, Reserve, Inventory [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Opening Balance | 142,593 | 126,933 | 103,821 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | [4] | (63) | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | [5] | 13,980 | 17,202 | 27,030 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | [4] | 275 | 1,261 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | [6] | (1,853) | (2,803) | (3,855) |
Valuation Allowances and Reserves, Ending Balance | $ 154,995 | $ 142,593 | $ 126,933 | |
[1]Additions charged to costs and expenses were higher in fiscal 2020 as compared to fiscal 2021 and fiscal 2022 principally due to potential collection difficulties from certain commercial aviation customers that filed for bankruptcy protection in fiscal 2020 as a result of the financial impact from the COVID-19 global pandemic (the "Pandemic").[2]Principally additions from acquisitions and foreign currency translation adjustments.[3]Principally write-offs of uncollectible accounts receivables.[4]Principally additions from acquisitions and foreign currency translation adjustments.[5]Additions charged to costs and expenses were higher in fiscal 2020 as compared to fiscal 2021 and fiscal 2022 principally due to the significant decline in global commercial air travel due to the Pandemic resulting in lower demand for the Company's commercial aviation products and services and certain specific obsolescence reserves following the announced retirement of certain aircraft types and engine platforms by major U.S. carriers.[6]Principally write-offs of slow-moving, obsolete or damaged inventory. |