DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - $ / shares | 6 Months Ended | |
Apr. 30, 2019 | May 28, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | HEICO CORPORATION | |
Address | 3000 Taft Street, Hollywood, Florida | |
State | Florida | |
Zip Code | 33021 | |
Entity Central Index Key | 0000046619 | |
Entity Tax Identification Number | 650341002 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Heico Common Stock [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | HEI | |
Entity Common Stock, Shares Outstanding | 53,806,849 | |
Entity Common Stock Par Value | $ 0.01 | |
Common Class A [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | HEI.A | |
Entity Common Stock, Shares Outstanding | 80,033,627 | |
Entity Common Stock Par Value | $ 0.01 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 64,091 | $ 59,599 |
Accounts receivable, net | 259,470 | 237,286 |
Contract assets | 48,968 | 14,183 |
Inventories, net | 410,328 | 401,553 |
Prepaid expenses and other current assets | 19,710 | 21,187 |
Total current assets | 802,567 | 733,808 |
Property, plant and equipment, net | 169,792 | 154,739 |
Goodwill | 1,187,281 | 1,114,832 |
Intangible assets, net | 533,370 | 506,360 |
Other assets | 160,630 | 143,657 |
Total assets | 2,853,640 | 2,653,396 |
Current liabilities: | ||
Current maturities of long-term debt | 858 | 859 |
Trade accounts payable | 101,777 | 107,219 |
Accrued expenses and other current liabilities | 148,235 | 171,514 |
Income taxes payable | 0 | 2,837 |
Total current liabilities | 250,870 | 282,429 |
Long-term debt, net of current maturities | 555,525 | 531,611 |
Deferred income taxes | 55,511 | 46,644 |
Other long-term liabilities | 178,120 | 157,658 |
Total liabilities | 1,040,026 | 1,018,342 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 151,450 | 132,046 |
Shareholders' equity: | ||
Preferred Stock | 0 | 0 |
Common Stock | 538 | 534 |
Capital in excess of par value | 310,201 | 320,994 |
Deferred compensation obligation | 4,043 | 3,928 |
HEICO stock held by irrevocable trust | (4,043) | (3,928) |
Accumulated other comprehensive loss | (16,352) | (15,256) |
Retained earnings | 1,251,699 | 1,091,183 |
Total HEICO shareholders' equity | 1,546,886 | 1,398,251 |
Noncontrolling interests | 115,278 | 104,757 |
Total shareholders' equity | 1,662,164 | 1,503,008 |
Total liabilities and equity | 2,853,640 | 2,653,396 |
Class A Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 800 | $ 796 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] - $ / shares shares in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 53,807 | 53,355 |
Common stock, shares outstanding | 53,807 | 53,355 |
Class A Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 80,024 | 79,576 |
Common stock, shares outstanding | 80,024 | 79,576 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Net sales | $ 515,648 | $ 430,602 | $ 981,794 | $ 835,012 |
Operating costs and expenses: | ||||
Cost of sales | 306,261 | 262,745 | 590,170 | 512,364 |
Selling, general and administrative expenses | 90,204 | 76,292 | 174,494 | 151,523 |
Total operating costs and expenses | 396,465 | 339,037 | 764,664 | 663,887 |
Operating income | 119,183 | 91,565 | 217,130 | 171,125 |
Interest expense | (5,484) | (4,904) | (10,973) | (9,629) |
Other income | 2,484 | (250) | 2,152 | 110 |
Income before income taxes and noncontrolling interests | 116,183 | 86,411 | 208,309 | 161,606 |
Income tax expense | 26,100 | 20,400 | 30,200 | 23,900 |
Net income from consolidated operations | 90,083 | 66,011 | 178,109 | 137,706 |
Less: Net income attributable to noncontrolling interests | 8,301 | 6,393 | 16,995 | 12,936 |
Net income attributable to HEICO | $ 81,782 | $ 59,618 | $ 161,114 | $ 124,770 |
Net income per share attributable to HEICO shareholders: | ||||
Basic (in dollars per share) | $ 0.61 | $ 0.45 | $ 1.21 | $ 0.94 |
Diluted (in dollars per share) | $ 0.60 | $ 0.44 | $ 1.18 | $ 0.91 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 133,313 | 132,425 | 133,123 | 132,237 |
Diluted (in shares) | 137,206 | 136,588 | 137,092 | 136,489 |
Cash dividends per share (in dollars per share) | $ 0.07 | $ 0.06 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Net income from consolidated operations | $ 90,083 | $ 66,011 | $ 178,109 | $ 137,706 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (5,636) | (6,573) | (1,262) | 9,390 |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 6 | 2 | 12 | 6 |
Total other comprehensive income (loss) | (5,630) | (6,571) | (1,250) | 9,396 |
Comprehensive income from consolidated operations | 84,453 | 59,440 | 176,859 | 147,102 |
Less: Comprehensive income attributable to noncontrolling interests | 8,301 | 6,393 | 16,995 | 12,936 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (347) | (417) | (154) | 577 |
Comprehensive income attributable to noncontrolling interests | 7,954 | 5,976 | 16,841 | 13,513 |
Comprehensive income attributable to HEICO | $ 76,499 | $ 53,464 | $ 160,018 | $ 133,589 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member] | Capital In Excess Of Par Value [Member] | Deferred Compensation Obligation [Member] | HEICO Stock Held By Irrevocable Trust [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total Shareholders Equity [Member] |
Starting Balance at Oct. 31, 2017 | $ 1,248,292 | $ 338 | $ 507 | $ 326,544 | $ 3,118 | $ (3,118) | $ (10,556) | $ 844,247 | $ 87,212 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 133,589 | 8,819 | 124,770 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 13,513 | $ 6,636 | 6,877 | ||||||||
Comprehensive income | 147,102 | $ 140,466 | |||||||||
Cash dividends | (7,395) | (7,395) | |||||||||
Common Stock Split/Dividend | 84 | 127 | |||||||||
Adjustments to Additional Paid in Capital, Stock Split | (211) | ||||||||||
Issuance of common stock to Savings and Investment Plan | 4,548 | 1 | 4,547 | ||||||||
Share-based compensation expense | 4,459 | 4,459 | |||||||||
Proceeds from stock option exercises | 1,993 | 7 | 1 | 1,985 | |||||||
Redemption of common stock related to share-based compensation | (3) | (24,620) | (24,623) | ||||||||
Noncontrolling interests assumed related to acquisition | 2,491 | ||||||||||
Distributions to noncontrolling interests | (4,040) | (409) | (409) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (3,170) | 3,170 | 3,170 | ||||||||
Adjustments to Additional Paid in Capital, Other | (994) | ||||||||||
Other | (221) | 221 | 994 | ||||||||
Ending Balance at Apr. 30, 2018 | 1,369,507 | 427 | 635 | 311,710 | 3,118 | (3,118) | (1,516) | 964,571 | 93,680 | ||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2017 | 131,123 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 13,513 | 6,636 | 6,877 | ||||||||
Noncontrolling interests assumed related to acquisition | 2,491 | ||||||||||
Distributions to noncontrolling interests | (4,040) | (409) | (409) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (3,170) | 3,170 | 3,170 | ||||||||
Other | 994 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Apr. 30, 2018 | 134,034 | ||||||||||
Starting Balance at Jan. 31, 2018 | 1,330,014 | 422 | 635 | 329,908 | 3,118 | (3,118) | 4,417 | 904,030 | 90,602 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 53,464 | (6,154) | 59,618 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 5,976 | 2,684 | 3,292 | ||||||||
Comprehensive income | 59,440 | 56,756 | |||||||||
Issuance of common stock to Savings and Investment Plan | 3,568 | 1 | 3,567 | ||||||||
Share-based compensation expense | 2,294 | 2,294 | |||||||||
Proceeds from stock option exercises | 568 | 7 | 561 | ||||||||
Redemption of common stock related to share-based compensation | (3) | (24,620) | (24,623) | ||||||||
Noncontrolling interests assumed related to acquisition | 2,491 | ||||||||||
Distributions to noncontrolling interests | (2,352) | (215) | (215) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (1,144) | 1,144 | 1,144 | ||||||||
Other | (221) | 221 | (1) | (1) | |||||||
Ending Balance at Apr. 30, 2018 | 1,369,507 | 427 | 635 | 311,710 | 3,118 | (3,118) | (1,516) | 964,571 | 93,680 | ||
Starting Balance, Redeemable Noncontrolling Interests at Jan. 31, 2018 | 132,355 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 5,976 | 2,684 | 3,292 | ||||||||
Noncontrolling interests assumed related to acquisition | 2,491 | ||||||||||
Distributions to noncontrolling interests | (2,352) | (215) | (215) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (1,144) | 1,144 | 1,144 | ||||||||
Ending Balance, Redeemable Noncontrolling Interests at Apr. 30, 2018 | 134,034 | ||||||||||
Starting Balance at Oct. 31, 2018 | 1,503,008 | 534 | 796 | 320,994 | 3,928 | (3,928) | (15,256) | 1,091,183 | 104,757 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 160,018 | (1,096) | 161,114 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 16,841 | 8,224 | 8,617 | ||||||||
Comprehensive income | 176,859 | 168,635 | |||||||||
Cash dividends | (9,305) | (9,305) | |||||||||
Issuance of common stock to Savings and Investment Plan | 6,390 | 6,390 | |||||||||
Share-based compensation expense | 4,987 | 4,987 | |||||||||
Proceeds from stock option exercises | 5,528 | 7 | 4 | 5,517 | |||||||
Redemption of common stock related to share-based compensation | (27,744) | (3) | (27,741) | ||||||||
Noncontrolling interests assumed related to acquisition | 13,079 | 2,382 | 2,382 | ||||||||
Distributions to noncontrolling interests | (7,384) | (806) | (806) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,666 | (4,666) | (4,666) | ||||||||
Stock Issued During Period Value Deferred Compensation Obligation | 115 | ||||||||||
Deferred compensation obligation | (115) | ||||||||||
Adjustments to Additional Paid in Capital, Other | 54 | ||||||||||
Other | (2) | (56) | |||||||||
Ending Balance at Apr. 30, 2019 | 1,662,164 | 538 | 800 | 310,201 | 4,043 | (4,043) | (16,352) | 1,251,699 | 115,278 | ||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2018 | 132,046 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 16,841 | 8,224 | 8,617 | ||||||||
Noncontrolling interests assumed related to acquisition | 13,079 | 2,382 | 2,382 | ||||||||
Distributions to noncontrolling interests | (7,384) | (806) | (806) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,666 | (4,666) | (4,666) | ||||||||
Ending Balance, Redeemable Noncontrolling Interests at Apr. 30, 2019 | 151,450 | ||||||||||
Starting Balance at Jan. 31, 2019 | 1,601,755 | 534 | 796 | 324,395 | 4,043 | (4,043) | (11,069) | 1,174,811 | 112,288 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 76,499 | (5,283) | 81,782 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 7,954 | 4,585 | 3,369 | ||||||||
Comprehensive income | 84,453 | 79,868 | |||||||||
Issuance of common stock to Savings and Investment Plan | 5,344 | 5,344 | |||||||||
Share-based compensation expense | 2,548 | 2,548 | |||||||||
Proceeds from stock option exercises | 5,462 | 7 | 4 | 5,451 | |||||||
Redemption of common stock related to share-based compensation | (27,594) | (3) | (27,591) | ||||||||
Noncontrolling interests assumed related to acquisition | 7,963 | 27 | 27 | ||||||||
Distributions to noncontrolling interests | (4,987) | (408) | (408) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,894 | (4,894) | (4,894) | ||||||||
Adjustments to Additional Paid in Capital, Other | 54 | ||||||||||
Other | (2) | (56) | |||||||||
Ending Balance at Apr. 30, 2019 | 1,662,164 | $ 538 | $ 800 | $ 310,201 | $ 4,043 | $ (4,043) | $ (16,352) | 1,251,699 | 115,278 | ||
Starting Balance, Redeemable Noncontrolling Interests at Jan. 31, 2019 | 138,995 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 7,954 | 4,585 | 3,369 | ||||||||
Noncontrolling interests assumed related to acquisition | 7,963 | 27 | 27 | ||||||||
Distributions to noncontrolling interests | (4,987) | (408) | (408) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 4,894 | (4,894) | (4,894) | ||||||||
Ending Balance, Redeemable Noncontrolling Interests at Apr. 30, 2019 | $ 151,450 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect from adoption of ASC 606 | Accounting Standards Update 2014-09 [Member] | 819 | 13,373 | 326 | 13,699 | |||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Cumulative effect from adoption of ASC 606 | Accounting Standards Update 2014-09 [Member] | $ 819 | $ 13,373 | $ 326 | $ 13,699 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED [PARENTHETICAL] - $ / shares | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash dividends per share (in dollars per share) | $ 0.07 | $ 0.06 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Operating Activities: | ||
Net income from consolidated operations | $ 178,109 | $ 137,706 |
Adjustments to reconcile net income from consolidated operations to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 40,548 | 38,089 |
Share-based compensation expense | 4,987 | 4,459 |
Employer contributions to HEICO Savings and Investment Plan | 4,601 | 4,083 |
Increase in accrued contingent consideration | 3,104 | |
Decrease in accrued contingent consideration | (3,412) | |
Deferred income tax provision (benefit) | 648 | (13,157) |
Payment of contingent consideration | (67) | |
Changes in operating assets and liabilities, net of acquisitions: | ||
Change in accounts receivable | (15,784) | (8,476) |
Decrease (increase) in contract assets | 5,699 | (5,861) |
Change in inventories | (26,724) | (29,814) |
Change in prepaid expenses and other current assets | 27 | (4,266) |
Change in trade accounts payable | (7,698) | 3,912 |
Change in accrued expenses and other current liabilities | (16,596) | (14,534) |
Change in income taxes payable | (1,141) | (14,714) |
Net changes in other long-term liabilities and assets related to HEICO Leadership Compensation Plan | 10,604 | 8,471 |
Other | (2,064) | 914 |
Net cash provided by operating activities | 178,253 | 103,400 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (134,940) | (39,364) |
Capital expenditures | (12,596) | (29,457) |
Investments related to HEICO Leadership Compensation Plan | (10,800) | (8,400) |
Other | 636 | (2,744) |
Net cash used in investing activities | (157,700) | (79,965) |
Financing Activities: | ||
Borrowings on revolving credit facility | 129,000 | 53,000 |
Payments on revolving credit facility | (105,000) | (43,000) |
Redemption of common stock related to stock option exercises | (27,744) | (24,623) |
Cash dividends paid | (9,305) | (7,395) |
Distributions to noncontrolling interests | (8,190) | (4,449) |
Revolving credit facility issuance costs | 0 | (4,067) |
Proceeds from stock option exercises | 5,528 | 1,993 |
Payment of Contingent Consideration | (283) | (300) |
Other | (176) | (232) |
Net cash (used in) provided by financing activities | (16,170) | (29,073) |
Effect of exchange rate changes on cash | 109 | 1,799 |
Net (decrease) increase in cash and cash equivalents | 4,492 | (3,839) |
Cash and cash equivalents at beginning of year | 59,599 | 52,066 |
Cash and cash equivalents at end of period | $ 64,091 | $ 48,227 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2018. The October 31, 2018 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the six months ended April 30, 2019 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. Certain prior year amounts have been reclassified to conform to the current year presentation principally to reflect the adoption of Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," in the first quarter of fiscal 2019 and the adoption of ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments," in the fourth quarter of fiscal 2018. Stock Split All applicable fiscal 2018 share and per share information has been adjusted retrospectively to reflect a 5-for-4 stock split effected in June 2018. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, which, as amended, was codified as Accounting Standards Codification (“ASC”) Topic 606, "Revenue from Contracts with Customers" (“ASC 606”). ASC 606 provides a comprehensive new revenue recognition model that supersedes nearly all existing revenue recognition guidance. Under ASC 606, an entity recognizes revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The Company adopted ASC 606 as of November 1, 2018 using the modified retrospective method and recognized the cumulative effect of initially applying ASC 606 to all uncompleted contracts on the date of adoption as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and remains as previously reported in accordance with ASC Topic 605, "Revenue Recognition." ASC 606 impacts the timing of revenue recognition 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. ASC 606 also impacts the timing of revenue recognition for certain other contracts under which the Company creates or enhances customer-owned assets while performing repair and overhaul services. For these two types of contracts, the Company now recognizes revenue using an over-time recognition model as opposed to generally recognizing revenue at the time of shipment under previous guidance. See Note 6, Revenue, for additional information regarding the Company's revenue recognition policies and disclosures required by ASC 606. The following table presents the cumulative effect of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of November 1, 2018 (in thousands): As Reported Impact of As Adjusted Under ASC 605 ASC 606 Under ASC 606 October 31, 2018 Adoption November 1, 2018 Assets Contract assets $14,183 $40,089 $54,272 Inventories, net 401,553 (29,412 ) 372,141 Prepaid expenses and other current assets 21,187 (489 ) 20,698 Liabilities Accrued expenses and other current liabilities $171,514 ($8,588 ) $162,926 Deferred income taxes 46,644 4,258 50,902 Redeemable noncontrolling interests $132,046 $819 $132,865 Shareholders' equity Retained earnings $1,091,183 $13,373 $1,104,556 Noncontrolling interests 104,757 326 105,083 The following table presents the impact of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of April 30, 2019 (in thousands): As of April 30, 2019 As Reported Effect of As Adjusted Under ASC 606 ASC 606 Under ASC 605 Assets Contract assets $48,968 ($43,293 ) $5,675 Inventories, net 410,328 31,157 441,485 Prepaid expenses and other current assets 19,710 1,347 21,057 Liabilities Accrued expenses and other current liabilities $148,235 $6,667 $154,902 Deferred income taxes 55,511 (3,293 ) 52,218 Redeemable noncontrolling interests $151,450 $32 $151,482 Shareholders' equity Retained earnings $1,251,699 ($13,801 ) $1,237,898 Noncontrolling interests 115,278 (394 ) 114,884 The impact of adopting ASC 606 on the Company's Condensed Consolidated Statement of Operations was not material for the six and three months ended April 30, 2019. In February 2016, the FASB issued ASU 2016-02, “Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02, as amended, provides certain optional transition relief and shall be applied either at the beginning of the earliest comparative period presented in the year of adoption using a modified retrospective transition approach or by recognizing a cumulative effect adjustment at the date of adoption. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment," which is intended to simplify the current test for goodwill impairment by eliminating the second step in which the implied value of a reporting unit is calculated when the carrying value of the reporting unit exceeds its fair value. Under ASU 2017-04, goodwill impairment should be recognized for the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 must be applied prospectively and is effective for any annual or interim goodwill impairment test in fiscal years beginning after December 15, 2019, or in fiscal 2021 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS In February 2019, the Company, through a subsidiary of HEICO Flight Support Corp., acquired 80.1% of the membership interests of Decavo, LLC ("Decavo") . Decavo designs and produces complex composite parts and assemblies incorporated into camera and related sensor assemblies and UAV airframes used in demanding defense and civilian applications. The remaining 19.9% interest continues to be owned by certain members of Decavo's management team (see Note 3, Selected Financial Statement Information, for additional information). The total consideration includes an accrual as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Decavo meet a certain earnings objective during the second and third years following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligation. The purchase price of this acquisition was paid in cash principally using cash provided by operating activities. In February 2019, the Company, through HEICO Electronic, acquired 85% of the stock of Solid Sealing Technology, Inc. ("SST") . SST designs and manufactures high-reliability ceramic-to-metal feedthroughs and connectors for demanding environments within the defense, industrial, life science, medical, research, semiconductor, and other markets. The remaining 15% interest continues to be owned by certain members of SST's management team (see Note 3, Selected Financial Statement Information, for additional information). In November 2018, the Company, through a subsidiary of HEICO Electronic, acquired an additional equity interest in Freebird Semiconductor Corporation ("Freebird") , which increased the Company's aggregate equity interest in Freebird to greater than 50% . Accordingly, the Company began consolidating the operating results of Freebird as of the acquisition date. Prior to this transaction, the Company accounted for its investment in Freebird under the equity method. Freebird is a fabless design and manufacturing company that offers advanced high-reliability wide-band gap power switching technology. The purchase price of this acquisition was paid in cash using cash provided by operating activities. In November 2018, the Company, through HEICO Electronic, acquired 92.7% of the stock of Apex Microtechnology, Inc. ("Apex") . Apex designs and manufactures precision power analog monolithic, hybrid and open frame components for a certain wide range of aerospace, defense, industrial, measurement, medical and test applications. The remaining 7.3% interest continues to be owned by certain members of Apex's management team (see Note 3, Selected Financial Statement Information, for additional information). In November 2018, the Company, through HEICO Electronic, acquired all of the stock of Specialty Silicone Products, Inc. ("SSP") . SSP designs and manufactures silicone material for a variety of demanding applications used in aerospace, defense, research, oil and gas, testing, pharmaceuticals and other markets. Unless otherwise noted, the purchase price of each of the fiscal 2019 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 fiscal 2019 acquisitions (in thousands): Cash paid $136,169 Less: cash acquired (1,229 ) Cash paid, net 134,940 Contingent consideration 2,107 Fair value of existing equity interest 1,416 Additional purchase consideration (323 ) Total consideration $138,140 The following table summarizes the allocation of the aggregate total consideration for the Company's fiscal 2019 acquisitions to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands): Assets acquired: Goodwill $74,161 Customer relationships 25,850 Intellectual property 17,593 Property, plant and equipment 16,709 Inventories 11,131 Trade names 9,780 Accounts receivable 6,855 Other assets 814 Total assets acquired, excluding cash 162,893 Liabilities assumed: Deferred income taxes 4,040 Accrued expenses 2,384 Accounts payable 2,368 Other liabilities 500 Total liabilities assumed 9,292 Noncontrolling interests in consolidated subsidiaries 15,461 Net assets acquired, excluding cash $138,140 The following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in connection with the Company's fiscal 2019 acquisitions (in years): Customer relationships 12 Intellectual property 17 The allocation of the total consideration for the Company's fiscal 2019 acquisitions to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed is preliminary until the Company obtains final information regarding their fair values. However, the Company does not expect any adjustments to such allocations to be material to the Company's consolidated financial statements. The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of the businesses acquired and the value of their assembled workforces that do not qualify for separate recognition, which, in the case of Decavo, SST, Freebird and Apex benefit both the Company and the noncontrolling interest holders. The fair value of the noncontrolling interests in Decavo, SST, Freebird and Apex 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 2019 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 2019 acquisitions included in the Condensed Consolidated Statements of Operations for the six and three months ended April 30, 2019 is not material. Had the fiscal 2019 acquisitions occurred as of November 1, 2017, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for the six and three months ended April 30, 2019 and 2018 would not have been materially different than the reported amounts. |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 6 Months Ended |
Apr. 30, 2019 | |
Selected Financial Statement Information [Abstract] | |
Selected Financial Statement Information [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable (in thousands) April 30, 2019 October 31, 2018 Accounts receivable $263,166 $240,544 Less: Allowance for doubtful accounts (3,696 ) (3,258 ) Accounts receivable, net $259,470 $237,286 Inventories (in thousands) April 30, 2019 October 31, 2018 Finished products $200,182 $192,758 Work in process 37,260 49,315 Materials, parts, assemblies and supplies 172,886 158,039 Contracts in process — 1,649 Less: Billings to date — (208 ) Inventories, net of valuation reserves $410,328 $401,553 Prior to the adoption of ASC 606, contracts in process represented accumulated capitalized costs associated with fixed price contracts. Additionally, related progress billings and customer advances (“billings to date”) were classified as a reduction to contracts in process, if any, and any excess was included in accrued expenses and other liabilities. See Note 1, Summary of Significant Accounting Policies - New Accounting Pronouncements, and Note 6, Revenue, for additional information pertaining to the adoption of ASC 606. Property, Plant and Equipment (in thousands) April 30, 2019 October 31, 2018 Land $7,298 $5,864 Buildings and improvements 112,169 101,424 Machinery, equipment and tooling 241,107 230,108 Construction in progress 7,250 5,044 367,824 342,440 Less: Accumulated depreciation and amortization (198,032 ) (187,701 ) Property, plant and equipment, net $169,792 $154,739 Accrued Customer Rebates and Credits The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $15.3 million as of April 30, 2019 and $16.9 million as of October 31, 2018. The total customer rebates and credits deducted within net sales for the six months ended April 30, 2019 and 2018 was $3.6 million and $5.2 million , respectively. The total customer rebates and credits deducted within net sales for the three months ended April 30, 2019 and 2018 was $2.2 million and $2.7 million , respectively. Research and Development Expenses The amount of new product research and development ("R&D") expenses included in cost of sales for the six and three months ended April 30, 2019 and 2018 is as follows (in thousands): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 R&D expenses $32,049 $26,660 $16,849 $13,953 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 2029. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): April 30, 2019 October 31, 2018 Redeemable at fair value $102,928 $83,524 Redeemable based on a multiple of future earnings 48,522 48,522 Redeemable noncontrolling interests $151,450 $132,046 As discussed in Note 2, Acquisitions, the Company, through the FSG, acquired 80.1% of the membership interests of Decavo in February 2019. As part of the Decavo operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interests over a four-year period beginning in fiscal 2026, or sooner under certain conditions, and the Company has the right to purchase the same equity interests over the same period. As discussed in Note 2, Acquisitions, the Company, through HEICO Electronic, acquired 85% of the stock of SST in February 2019. As part of the SST shareholders' agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interests over a four-year period beginning in fiscal 2024, or sooner under certain conditions, and the Company has the right to purchase the same equity interests over the same period. As discussed in Note 2, Acquisitions, the Company, through the ETG, acquired 92.7% of the stock of Apex in November 2018. As part of the Apex shareholders' agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interests over a four-year period beginning in fiscal 2023, or sooner under certain conditions, and the Company has the right to purchase the same equity interests over the same period. Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2019 are as follows (in thousands): Foreign Currency Translation Pension Benefit Obligation Accumulated Other Comprehensive Loss Balances as of October 31, 2018 ($14,370 ) ($886 ) ($15,256 ) Unrealized loss (1,108 ) — (1,108 ) Amortization of unrealized loss — 12 12 Balances as of April 30, 2019 ($15,478 ) ($874 ) ($16,352 ) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Apr. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill by operating segment for the six months ended April 30, 2019 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2018 $398,694 $716,138 $1,114,832 Goodwill acquired 12,476 61,685 74,161 Foreign currency translation adjustments (890 ) (697 ) (1,587 ) Adjustments to goodwill (125 ) — (125 ) Balances as of April 30, 2019 $410,155 $777,126 $1,187,281 The goodwill acquired pertains to the fiscal 2019 acquisitions described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Condensed Consolidated Statements of Comprehensive Income. The adjustments to goodwill represent immaterial measurement period adjustments to the purchase price allocation of certain fiscal 2018 acquisitions. The Company estimates that $31 million of the goodwill acquired in fiscal 2019 will be deductible for income tax purposes. Identifiable intangible assets consist of the following (in thousands): As of April 30, 2019 As of October 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $398,876 ($152,744 ) $246,132 $373,946 ($135,359 ) $238,587 Intellectual property 203,491 (63,328 ) 140,163 185,983 (56,055 ) 129,928 Licenses 6,559 (3,815 ) 2,744 6,559 (3,522 ) 3,037 Patents 943 (635 ) 308 927 (609 ) 318 Non-compete agreements 811 (811 ) — 814 (814 ) — Trade names 466 (177 ) 289 466 (157 ) 309 611,146 (221,510 ) 389,636 568,695 (196,516 ) 372,179 Non-Amortizing Assets: Trade names 143,734 — 143,734 134,181 — 134,181 $754,880 ($221,510 ) $533,370 $702,876 ($196,516 ) $506,360 The increase in the gross carrying amount of customer relationships, intellectual property and trade names as of April 30, 2019 compared to October 31, 2018 principally relates to such intangible assets recognized in connection with the fiscal 2019 acquisitions (see Note 2, Acquisitions). Amortization expense related to intangible assets for the six months ended April 30, 2019 and 2018 was $25.9 million and $24.8 million , respectively. Amortization expense related to intangible assets for the three months ended April 30, 2019 and 2018 was $13.1 million and $12.4 million , respectively. Amortization expense related to intangible assets for the remainder of fiscal 2019 is estimated to be $26.3 million . Amortization expense for each of the next five fiscal years and thereafter is estimated to be $49.8 million in fiscal 2020, $47.0 million in fiscal 2021, $40.7 million in fiscal 2022, $35.5 million in fiscal 2023, $31.3 million in fiscal 2024, and $159.0 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT Long-term debt consists of the following (in thousands): April 30, 2019 October 31, 2018 Borrowings under revolving credit facility $547,000 $523,000 Capital leases and note payable 9,383 9,470 556,383 532,470 Less: Current maturities of long-term debt (858 ) (859 ) $555,525 $531,611 The Company's borrowings under its revolving credit facility mature in fiscal 2023. As of April 30, 2019 and October 31, 2018, the weighted average interest rate on borrowings under the Company’s revolving credit facility was 3.6% and 3.4% , respectively. The revolving credit facility contains both financial and non-financial covenants. As of April 30, 2019, the Company was in compliance with all such covenants. |
REVENUE (Notes)
REVENUE (Notes) | 6 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE 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. Details of the products and services provided by the Company can be found within Disaggregation of Revenue which follows within this Note 6. Contracts with Customers and Performance Obligations 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. Contract Estimates 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. 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. 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 for the six and three months ended April 30, 2019. Practical Expedients and Optional Exemptions The Company has elected the following practical expedients and optional exemptions allowed under ASC 606: • The majority of the Company’s performance obligations related to customer contracts are satisfied within one year. As such, the Company has elected to disclose remaining performance obligations only for contracts with an original duration of greater than one year. • The Company has elected to record all shipping and handling activities as fulfillment activities. When revenue is recognized in advance of incurring shipping and handling costs, the costs related to the shipping and handling activities are accrued. • 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. • The Company does not adjust the amount of revenue to be recognized under a customer contract for the effects of the time value of money when the timing difference between receipt of payment and recognition of revenue for satisfaction of the related performance obligation is less than one year. • Sales commissions and any other costs of obtaining a customer contract with a duration of one year or less are expensed as incurred. Contract Balances Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer. Contract liabilities (deferred revenue) represent customer advances and billings in excess of revenue recognized and are included within accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheet. The Company’s contract assets and liabilities consists of the following (in thousands): April 30, 2019 November 1, 2018 Change Contract assets $48,968 $54,272 ($5,304 ) Contract liabilities 24,427 19,674 4,753 Net contract assets $24,541 $34,598 ($10,057 ) The decrease in the Company's contract assets during the first six months of fiscal 2019 mainly occurred within the ETG and principally reflects billings on certain customer contracts made during the period in excess of the amounts recorded as additional unbilled receivables for contracts using an over-time recognition model. The increase in the Company's contract liabilities during the first six months of fiscal 2019 mainly occurred within the ETG and principally reflects the receipts of new customer deposits on certain customer contracts in excess of reductions to contract liabilities from customer deposits recognized as revenue. The amount of revenue that the Company recognized during the six and three months ended April 30, 2019 that was included in contract liabilities as of the beginning of fiscal 2019 was $12.1 million and $3.1 million , respectively. Remaining Performance Obligations As of April 30, 2019, the Company had $344.4 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 and the FSG's aftermarket replacement parts and specialty products product line. The Company will recognize net sales as these obligations are satisfied. The Company expects to recognize $114.3 million of this amount during the remainder of fiscal 2019 and $230.1 million thereafter, of which the majority is expected to occur in fiscal 2020. Disaggregation of Revenue The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 Flight Support Group: Aftermarket replacement parts (1) $326,722 $273,855 $167,225 $139,567 Repair and overhaul parts and services (2) 140,617 140,080 73,454 71,756 Specialty products (3) 128,125 108,622 67,572 56,513 Total net sales 595,464 522,557 308,251 267,836 Electronic Technologies Group: Electronic component parts for defense, space and aerospace equipment (4) 299,414 248,232 161,664 130,891 Electronic component parts for equipment in various other industries (5) 99,466 76,148 52,787 37,831 Total net sales 398,880 324,380 214,451 168,722 Intersegment sales (12,550 ) (11,925 ) (7,054 ) (5,956 ) Total consolidated net sales $981,794 $835,012 $515,648 $430,602 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh. (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners and high performance active antenna systems. (5) Includes various component parts such as electromagnetic and radio interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies and silicone material for a variety of demanding applications. The following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 Flight Support Group: Aerospace $484,398 $429,674 $249,225 $220,083 Defense and Space 87,503 71,094 45,969 36,312 Other (1) 23,563 21,789 13,057 11,441 Total net sales 595,464 522,557 308,251 267,836 Electronic Technologies Group: Defense and Space 251,171 206,212 135,952 109,130 Other (2) 105,538 87,710 55,623 44,657 Aerospace 42,171 30,458 22,876 14,935 Total net sales 398,880 324,380 214,451 168,722 Other, primarily corporate and intersegment (12,550 ) (11,925 ) (7,054 ) (5,956 ) Total consolidated net sales $981,794 $835,012 $515,648 $430,602 (1) Principally industrial products. (2) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES In December 2017, the United States ("U.S.") government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act contains significant changes to previous tax law, some of which became immediately effective in fiscal 2018 including, among other things, a reduction in the U.S. federal statutory tax rate from 35% to 21% and the implementation of a territorial tax system resulting in a one-time transition tax on the unremitted earnings of the Company’s foreign subsidiaries. Certain other provisions of the Tax Act became effective for HEICO in fiscal 2019 including a new tax on Global Intangible Low-Taxed Income (“GILTI”), a new deduction for Foreign-Derived Intangible Income (“FDII”), the repeal of the domestic production activity deduction and increased limitations on the deductibility of certain executive compensation. The provisions of the Tax Act that became effective for HEICO in fiscal 2019 did not have a material effect on the Company's income tax expense for the six and three months ended April 30, 2019. The Company’s effective tax rate in the first six months of fiscal 2019 was 14.5% as compared to 14.8% in the first six months of fiscal 2018. Income tax expense in both the first six months of fiscal 2019 and fiscal 2018 was favorably impacted as a result of discrete tax benefits. The tax benefit from stock option exercises recognized in the first six months of fiscal 2019 increased by $14.5 million compared to the first six months of fiscal 2018. During the first six months of fiscal 2018, the Company recognized a discrete tax benefit from the remeasurement of its U.S. federal net deferred tax liabilities that was partially offset by a discrete tax expense related to a one-time transition tax on the unremitted earnings of its foreign subsidiaries that resulted in an $11.9 million net discrete tax benefit. The Company's effective tax rate in the second quarter of fiscal 2019 was 22.5% as compared to 23.6% |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Apr. 30, 2019 | |
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 April 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate-owned life insurance $— $139,917 $— $139,917 Money market funds 8,486 — — 8,486 Equity securities 941 — — 941 Other 393 — — 393 Total assets $9,820 $139,917 $— $149,737 Liabilities: Contingent consideration $— $— $25,644 $25,644 As of October 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate-owned life insurance $— $123,255 $— $123,255 Money market funds 3,560 — — 3,560 Equity securities 3,179 — — 3,179 Mutual funds 1,437 — — 1,437 Other 1,306 — — 1,306 Total assets $9,482 $123,255 $— $132,737 Liabilities: Contingent consideration $— $— $20,875 $20,875 The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan (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 Company’s other deferred compensation plan are principally invested in equity securities and are classified within Level 1. The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $149.7 million as of April 30, 2019 and $132.7 million as of October 31, 2018, of which the LCP related assets were $148.4 million and $126.8 million as of April 30, 2019 and October 31, 2018, respectively. The related liabilities of the two deferred compensation plans are included within other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $148.5 million as of April 30, 2019 and $131.7 million as of October 31, 2018, of which the LCP related liability was $147.2 million and $125.8 million as of April 30, 2019 and October 31, 2018, respectively. As part of the agreement to acquire a subsidiary by the FSG in fiscal 2019, the Company may be obligated to pay contingent consideration of $6.4 million in fiscal 2022 should the acquired entity meet a certain earnings objective during the second and third years following the acquisition. As of April 30, 2019, the estimated fair value of the contingent consideration was $2.1 million . 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 April 30, 2019, the estimated fair value of the contingent consideration was $15.8 million . The increase in the fair value of the contingent consideration as of April 30, 2019 as compared to the $13.9 million accrued as of October 31, 2018 is principally attributable to higher than originally estimated earnings of the acquired entity during the earnout period. As part of the agreement to acquire certain assets of a company by the ETG in fiscal 2016, the Company may be obligated to pay contingent consideration of up to $1.4 million in aggregate during the first three years following the second anniversary of the acquisition should the acquired entity meet certain earnings objectives during this same time period. During fiscal 2019, the Company paid $.3 million of contingent consideration based on the actual financial performance of the acquired entity during the third year following the acquisition. As of April 30, 2019, the estimated fair value of the remaining contingent consideration was $.9 million . As part of the agreement to acquire a subsidiary by the FSG in fiscal 2015, the Company is obligated to pay contingent consideration of €6.1 million , or $6.8 million , based on the actual operating results of the acquired entity during the fourth year following the acquisition, which was paid during the third quarter of fiscal 2019. The increase in the fair value of the contingent consideration as of April 30, 2019 as compared to the €5.1 million , or $5.8 million , accrued as of October 31, 2018 was based on the higher actual than anticipated earnings of the acquired entity. The estimated fair value of the contingent consideration arrangements described above are classified within Level 3 and were determined using a probability-based scenario analysis approach. Under this method, a set of discrete potential future subsidiary earnings was determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood was assigned to each discrete potential future earnings estimate and the resultant contingent consideration was calculated. The resulting probability-weighted contingent consideration amounts were discounted using a weighted average discount rate reflecting the credit risk of HEICO. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's condensed consolidated statements of operations. The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of April 30, 2019 were as follows: Fiscal 2019 Acquisition Fiscal 2017 Acquisition Fiscal 2016 Acquisition Compound annual revenue growth rate range (8 %) - 9% (5 %) - 12% 4 % - 13% Weighted average discount rate 6.4% 5.4% 4.7% Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the six months ended April 30, 2019 are as follows (in thousands): Balance as of October 31, 2018 $20,875 Increase in accrued contingent consideration 3,104 Contingent consideration related to acquisition 2,107 Payment of contingent consideration (350 ) Foreign currency transaction adjustments (92 ) Balance as of April 30, 2019 $25,644 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $7,328 Other long-term liabilities 18,316 $25,644 The Company recorded the increase in accrued contingent consideration and foreign currency transaction adjustments set forth in the table above within selling, general and administrative expenses in the Company's Condensed Consolidated Statement of Operations. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the six months ended April 30, 2019. The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of April 30, 2019 due to the relatively short maturity of the respective instruments. The carrying amount of long-term debt approximates fair value due to its variable interest rates. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 6 Months Ended |
Apr. 30, 2019 | |
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): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 Numerator: Net income attributable to HEICO $161,114 $124,770 $81,782 $59,618 Denominator: Weighted average common shares outstanding - basic 133,123 132,237 133,313 132,425 Effect of dilutive stock options 3,969 4,252 3,893 4,163 Weighted average common shares outstanding - diluted 137,092 136,489 137,206 136,588 Net income per share attributable to HEICO shareholders: Basic $1.21 $.94 $.61 $.45 Diluted $1.18 $.91 $.60 $.44 Anti-dilutive stock options excluded 615 615 470 461 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS Information on the Company’s two operating segments, the FSG and the ETG, for the six and three months ended April 30, 2019 and 2018, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Six months ended April 30, 2019: Net sales $595,464 $398,880 ($12,550 ) $981,794 Depreciation 6,758 5,395 503 12,656 Amortization 9,723 17,677 492 27,892 Operating income 115,046 118,954 (16,870 ) 217,130 Capital expenditures 6,576 6,012 8 12,596 Six months ended April 30, 2018: Net sales $522,557 $324,380 ($11,925 ) $835,012 Depreciation 6,582 4,584 186 11,352 Amortization 9,879 16,267 591 26,737 Operating income 97,357 91,350 (17,582 ) 171,125 Capital expenditures 6,206 3,985 19,266 29,457 Three months ended April 30, 2019: Net sales $308,251 $214,451 ($7,054 ) $515,648 Depreciation 3,403 2,789 252 6,444 Amortization 4,920 8,901 246 14,067 Operating income 62,166 67,352 (10,335 ) 119,183 Capital expenditures 3,727 2,954 8 6,689 Three months ended April 30, 2018: Net sales $267,836 $168,722 ($5,956 ) $430,602 Depreciation 3,290 2,310 124 5,724 Amortization 4,932 8,163 246 13,341 Operating income 51,488 48,130 (8,053 ) 91,565 Capital expenditures 3,909 2,242 15,729 21,880 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. Total assets by operating segment as of April 30, 2019 and October 31, 2018 are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of April 30, 2019 $1,145,039 $1,529,048 $179,553 $2,853,640 Total assets as of October 31, 2018 1,093,858 1,391,997 167,541 2,653,396 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees As of April 30, 2019, the Company has arranged for standby letters of credit aggregating $4.3 million , which are supported by its revolving credit facility and pertain to payment guarantees related to potential workers' compensation claims and a facility lease as well as performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries. Product Warranty Changes in the Company’s product warranty liability for the six months ended April 30, 2019 and 2018, respectively, are as follows (in thousands): Six months ended April 30, 2019 2018 Balances as of beginning of fiscal year $3,306 $2,921 Accruals for warranties 1,264 1,466 Acquired warranty liabilities — 300 Warranty claims settled (1,543 ) (1,431 ) Balances as of April 30 $3,027 $3,256 Litigation The Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2018. The October 31, 2018 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the six months ended April 30, 2019 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. Certain prior year amounts have been reclassified to conform to the current year presentation principally to reflect the adoption of Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," in the first quarter of fiscal 2019 and the adoption of ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments," in the fourth quarter of fiscal 2018. |
Stockholders' Equity, Policy [Policy Text Block] | Stock Split All applicable fiscal 2018 share and per share information has been adjusted retrospectively to reflect a 5-for-4 stock split effected in June 2018. |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncements [Text Block] | In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, which, as amended, was codified as Accounting Standards Codification (“ASC”) Topic 606, "Revenue from Contracts with Customers" (“ASC 606”). ASC 606 provides a comprehensive new revenue recognition model that supersedes nearly all existing revenue recognition guidance. Under ASC 606, an entity recognizes revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The Company adopted ASC 606 as of November 1, 2018 using the modified retrospective method and recognized the cumulative effect of initially applying ASC 606 to all uncompleted contracts on the date of adoption as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and remains as previously reported in accordance with ASC Topic 605, "Revenue Recognition." ASC 606 impacts the timing of revenue recognition 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. ASC 606 also impacts the timing of revenue recognition for certain other contracts under which the Company creates or enhances customer-owned assets while performing repair and overhaul services. For these two types of contracts, the Company now recognizes revenue using an over-time recognition model as opposed to generally recognizing revenue at the time of shipment under previous guidance. See Note 6, Revenue, for additional information regarding the Company's revenue recognition policies and disclosures required by ASC 606. The following table presents the cumulative effect of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of November 1, 2018 (in thousands): As Reported Impact of As Adjusted Under ASC 605 ASC 606 Under ASC 606 October 31, 2018 Adoption November 1, 2018 Assets Contract assets $14,183 $40,089 $54,272 Inventories, net 401,553 (29,412 ) 372,141 Prepaid expenses and other current assets 21,187 (489 ) 20,698 Liabilities Accrued expenses and other current liabilities $171,514 ($8,588 ) $162,926 Deferred income taxes 46,644 4,258 50,902 Redeemable noncontrolling interests $132,046 $819 $132,865 Shareholders' equity Retained earnings $1,091,183 $13,373 $1,104,556 Noncontrolling interests 104,757 326 105,083 The following table presents the impact of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of April 30, 2019 (in thousands): As of April 30, 2019 As Reported Effect of As Adjusted Under ASC 606 ASC 606 Under ASC 605 Assets Contract assets $48,968 ($43,293 ) $5,675 Inventories, net 410,328 31,157 441,485 Prepaid expenses and other current assets 19,710 1,347 21,057 Liabilities Accrued expenses and other current liabilities $148,235 $6,667 $154,902 Deferred income taxes 55,511 (3,293 ) 52,218 Redeemable noncontrolling interests $151,450 $32 $151,482 Shareholders' equity Retained earnings $1,251,699 ($13,801 ) $1,237,898 Noncontrolling interests 115,278 (394 ) 114,884 The impact of adopting ASC 606 on the Company's Condensed Consolidated Statement of Operations was not material for the six and three months ended April 30, 2019. |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | In February 2016, the FASB issued ASU 2016-02, “Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02, as amended, provides certain optional transition relief and shall be applied either at the beginning of the earliest comparative period presented in the year of adoption using a modified retrospective transition approach or by recognizing a cumulative effect adjustment at the date of adoption. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. |
Accounting Standards Update 2017-04 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment," which is intended to simplify the current test for goodwill impairment by eliminating the second step in which the implied value of a reporting unit is calculated when the carrying value of the reporting unit exceeds its fair value. Under ASU 2017-04, goodwill impairment should be recognized for the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 must be applied prospectively and is effective for any annual or interim goodwill impairment test in fiscal years beginning after December 15, 2019, or in fiscal 2021 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table presents the cumulative effect of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of November 1, 2018 (in thousands): As Reported Impact of As Adjusted Under ASC 605 ASC 606 Under ASC 606 October 31, 2018 Adoption November 1, 2018 Assets Contract assets $14,183 $40,089 $54,272 Inventories, net 401,553 (29,412 ) 372,141 Prepaid expenses and other current assets 21,187 (489 ) 20,698 Liabilities Accrued expenses and other current liabilities $171,514 ($8,588 ) $162,926 Deferred income taxes 46,644 4,258 50,902 Redeemable noncontrolling interests $132,046 $819 $132,865 Shareholders' equity Retained earnings $1,091,183 $13,373 $1,104,556 Noncontrolling interests 104,757 326 105,083 |
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] | The following table presents the impact of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of April 30, 2019 (in thousands): As of April 30, 2019 As Reported Effect of As Adjusted Under ASC 606 ASC 606 Under ASC 605 Assets Contract assets $48,968 ($43,293 ) $5,675 Inventories, net 410,328 31,157 441,485 Prepaid expenses and other current assets 19,710 1,347 21,057 Liabilities Accrued expenses and other current liabilities $148,235 $6,667 $154,902 Deferred income taxes 55,511 (3,293 ) 52,218 Redeemable noncontrolling interests $151,450 $32 $151,482 Shareholders' equity Retained earnings $1,251,699 ($13,801 ) $1,237,898 Noncontrolling interests 115,278 (394 ) 114,884 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) - FY2019 Acquisition [Member] | 6 Months Ended |
Apr. 30, 2019 | |
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 fiscal 2019 acquisitions (in thousands): Cash paid $136,169 Less: cash acquired (1,229 ) Cash paid, net 134,940 Contingent consideration 2,107 Fair value of existing equity interest 1,416 Additional purchase consideration (323 ) Total consideration $138,140 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the allocation of the aggregate total consideration for the Company's fiscal 2019 acquisitions to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands): Assets acquired: Goodwill $74,161 Customer relationships 25,850 Intellectual property 17,593 Property, plant and equipment 16,709 Inventories 11,131 Trade names 9,780 Accounts receivable 6,855 Other assets 814 Total assets acquired, excluding cash 162,893 Liabilities assumed: Deferred income taxes 4,040 Accrued expenses 2,384 Accounts payable 2,368 Other liabilities 500 Total liabilities assumed 9,292 Noncontrolling interests in consolidated subsidiaries 15,461 Net assets acquired, excluding cash $138,140 |
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 2019 acquisitions (in years): Customer relationships 12 Intellectual property 17 |
SELECTED FINANCIAL STATEMENT _2
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands) April 30, 2019 October 31, 2018 Accounts receivable $263,166 $240,544 Less: Allowance for doubtful accounts (3,696 ) (3,258 ) Accounts receivable, net $259,470 $237,286 |
Schedule of Inventories [Table Text Block] | Inventories (in thousands) April 30, 2019 October 31, 2018 Finished products $200,182 $192,758 Work in process 37,260 49,315 Materials, parts, assemblies and supplies 172,886 158,039 Contracts in process — 1,649 Less: Billings to date — (208 ) Inventories, net of valuation reserves $410,328 $401,553 |
Schedule of Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment (in thousands) April 30, 2019 October 31, 2018 Land $7,298 $5,864 Buildings and improvements 112,169 101,424 Machinery, equipment and tooling 241,107 230,108 Construction in progress 7,250 5,044 367,824 342,440 Less: Accumulated depreciation and amortization (198,032 ) (187,701 ) Property, plant and equipment, net $169,792 $154,739 |
Schedule of Research and Development Expenses [Table Text Block] | The amount of new product research and development ("R&D") expenses included in cost of sales for the six and three months ended April 30, 2019 and 2018 is as follows (in thousands): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 R&D expenses $32,049 $26,660 $16,849 $13,953 |
Schedule of Redeemable Noncontrolling Interests [Table Text Block] | Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): April 30, 2019 October 31, 2018 Redeemable at fair value $102,928 $83,524 Redeemable based on a multiple of future earnings 48,522 48,522 Redeemable noncontrolling interests $151,450 $132,046 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2019 are as follows (in thousands): Foreign Currency Translation Pension Benefit Obligation Accumulated Other Comprehensive Loss Balances as of October 31, 2018 ($14,370 ) ($886 ) ($15,256 ) Unrealized loss (1,108 ) — (1,108 ) Amortization of unrealized loss — 12 12 Balances as of April 30, 2019 ($15,478 ) ($874 ) ($16,352 ) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by operating segment for the six months ended April 30, 2019 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2018 $398,694 $716,138 $1,114,832 Goodwill acquired 12,476 61,685 74,161 Foreign currency translation adjustments (890 ) (697 ) (1,587 ) Adjustments to goodwill (125 ) — (125 ) Balances as of April 30, 2019 $410,155 $777,126 $1,187,281 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of April 30, 2019 As of October 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $398,876 ($152,744 ) $246,132 $373,946 ($135,359 ) $238,587 Intellectual property 203,491 (63,328 ) 140,163 185,983 (56,055 ) 129,928 Licenses 6,559 (3,815 ) 2,744 6,559 (3,522 ) 3,037 Patents 943 (635 ) 308 927 (609 ) 318 Non-compete agreements 811 (811 ) — 814 (814 ) — Trade names 466 (177 ) 289 466 (157 ) 309 611,146 (221,510 ) 389,636 568,695 (196,516 ) 372,179 Non-Amortizing Assets: Trade names 143,734 — 143,734 134,181 — 134,181 $754,880 ($221,510 ) $533,370 $702,876 ($196,516 ) $506,360 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): April 30, 2019 October 31, 2018 Borrowings under revolving credit facility $547,000 $523,000 Capital leases and note payable 9,383 9,470 556,383 532,470 Less: Current maturities of long-term debt (858 ) (859 ) $555,525 $531,611 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The Company’s contract assets and liabilities consists of the following (in thousands): April 30, 2019 November 1, 2018 Change Contract assets $48,968 $54,272 ($5,304 ) Contract liabilities 24,427 19,674 4,753 Net contract assets $24,541 $34,598 ($10,057 ) |
Product Line [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 Flight Support Group: Aftermarket replacement parts (1) $326,722 $273,855 $167,225 $139,567 Repair and overhaul parts and services (2) 140,617 140,080 73,454 71,756 Specialty products (3) 128,125 108,622 67,572 56,513 Total net sales 595,464 522,557 308,251 267,836 Electronic Technologies Group: Electronic component parts for defense, space and aerospace equipment (4) 299,414 248,232 161,664 130,891 Electronic component parts for equipment in various other industries (5) 99,466 76,148 52,787 37,831 Total net sales 398,880 324,380 214,451 168,722 Intersegment sales (12,550 ) (11,925 ) (7,054 ) (5,956 ) Total consolidated net sales $981,794 $835,012 $515,648 $430,602 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh. (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners and high performance active antenna systems. (5) Includes various component parts such as electromagnetic and radio interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies and silicone material for a variety of demanding applications. |
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): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 Flight Support Group: Aerospace $484,398 $429,674 $249,225 $220,083 Defense and Space 87,503 71,094 45,969 36,312 Other (1) 23,563 21,789 13,057 11,441 Total net sales 595,464 522,557 308,251 267,836 Electronic Technologies Group: Defense and Space 251,171 206,212 135,952 109,130 Other (2) 105,538 87,710 55,623 44,657 Aerospace 42,171 30,458 22,876 14,935 Total net sales 398,880 324,380 214,451 168,722 Other, primarily corporate and intersegment (12,550 ) (11,925 ) (7,054 ) (5,956 ) Total consolidated net sales $981,794 $835,012 $515,648 $430,602 (1) Principally industrial products. (2) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
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 April 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate-owned life insurance $— $139,917 $— $139,917 Money market funds 8,486 — — 8,486 Equity securities 941 — — 941 Other 393 — — 393 Total assets $9,820 $139,917 $— $149,737 Liabilities: Contingent consideration $— $— $25,644 $25,644 As of October 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Deferred compensation plans: Corporate-owned life insurance $— $123,255 $— $123,255 Money market funds 3,560 — — 3,560 Equity securities 3,179 — — 3,179 Mutual funds 1,437 — — 1,437 Other 1,306 — — 1,306 Total assets $9,482 $123,255 $— $132,737 Liabilities: Contingent consideration $— $— $20,875 $20,875 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of April 30, 2019 were as follows: Fiscal 2019 Acquisition Fiscal 2017 Acquisition Fiscal 2016 Acquisition Compound annual revenue growth rate range (8 %) - 9% (5 %) - 12% 4 % - 13% Weighted average discount rate 6.4% 5.4% 4.7% |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the six months ended April 30, 2019 are as follows (in thousands): Balance as of October 31, 2018 $20,875 Increase in accrued contingent consideration 3,104 Contingent consideration related to acquisition 2,107 Payment of contingent consideration (350 ) Foreign currency transaction adjustments (92 ) Balance as of April 30, 2019 $25,644 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $7,328 Other long-term liabilities 18,316 $25,644 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): Six months ended April 30, Three months ended April 30, 2019 2018 2019 2018 Numerator: Net income attributable to HEICO $161,114 $124,770 $81,782 $59,618 Denominator: Weighted average common shares outstanding - basic 133,123 132,237 133,313 132,425 Effect of dilutive stock options 3,969 4,252 3,893 4,163 Weighted average common shares outstanding - diluted 137,092 136,489 137,206 136,588 Net income per share attributable to HEICO shareholders: Basic $1.21 $.94 $.61 $.45 Diluted $1.18 $.91 $.60 $.44 Anti-dilutive stock options excluded 615 615 470 461 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Information on the Company’s two operating segments, the FSG and the ETG, for the six and three months ended April 30, 2019 and 2018, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Six months ended April 30, 2019: Net sales $595,464 $398,880 ($12,550 ) $981,794 Depreciation 6,758 5,395 503 12,656 Amortization 9,723 17,677 492 27,892 Operating income 115,046 118,954 (16,870 ) 217,130 Capital expenditures 6,576 6,012 8 12,596 Six months ended April 30, 2018: Net sales $522,557 $324,380 ($11,925 ) $835,012 Depreciation 6,582 4,584 186 11,352 Amortization 9,879 16,267 591 26,737 Operating income 97,357 91,350 (17,582 ) 171,125 Capital expenditures 6,206 3,985 19,266 29,457 Three months ended April 30, 2019: Net sales $308,251 $214,451 ($7,054 ) $515,648 Depreciation 3,403 2,789 252 6,444 Amortization 4,920 8,901 246 14,067 Operating income 62,166 67,352 (10,335 ) 119,183 Capital expenditures 3,727 2,954 8 6,689 Three months ended April 30, 2018: Net sales $267,836 $168,722 ($5,956 ) $430,602 Depreciation 3,290 2,310 124 5,724 Amortization 4,932 8,163 246 13,341 Operating income 51,488 48,130 (8,053 ) 91,565 Capital expenditures 3,909 2,242 15,729 21,880 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by operating segment as of April 30, 2019 and October 31, 2018 are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of April 30, 2019 $1,145,039 $1,529,048 $179,553 $2,853,640 Total assets as of October 31, 2018 1,093,858 1,391,997 167,541 2,653,396 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability for the six months ended April 30, 2019 and 2018, respectively, are as follows (in thousands): Six months ended April 30, 2019 2018 Balances as of beginning of fiscal year $3,306 $2,921 Accruals for warranties 1,264 1,466 Acquired warranty liabilities — 300 Warranty claims settled (1,543 ) (1,431 ) Balances as of April 30 $3,027 $3,256 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cumulative effect of adopting) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 | Nov. 01, 2018 | Oct. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Contract assets | $ 48,968 | $ 54,272 | $ 14,183 | ||||
Inventories, net | 410,328 | 372,141 | 401,553 | ||||
Prepaid expenses and other current assets | 19,710 | 20,698 | 21,187 | ||||
Accrued expenses and other current liabilities | 148,235 | 162,926 | 171,514 | ||||
Deferred income taxes | 55,511 | 50,902 | 46,644 | ||||
Redeemable noncontrolling interests | 151,450 | $ 138,995 | 132,865 | 132,046 | $ 134,034 | $ 132,355 | $ 131,123 |
Retained earnings | 1,251,699 | 1,104,556 | 1,091,183 | ||||
Noncontrolling interests | $ 115,278 | 105,083 | $ 104,757 | ||||
Accounting Standards Update 2014-09 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Contract assets | 40,089 | ||||||
Inventories, net | (29,412) | ||||||
Prepaid expenses and other current assets | (489) | ||||||
Accrued expenses and other current liabilities | (8,588) | ||||||
Deferred income taxes | 4,258 | ||||||
Redeemable noncontrolling interests | 819 | ||||||
Retained earnings | 13,373 | ||||||
Noncontrolling interests | $ 326 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Impact of adopting ASC 606) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 | Nov. 01, 2018 | Oct. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 |
Item Effected [Line Items] | |||||||
Contract assets | $ 48,968 | $ 54,272 | $ 14,183 | ||||
Inventories, net | 410,328 | 372,141 | 401,553 | ||||
Prepaid expenses and other current assets | 19,710 | 20,698 | 21,187 | ||||
Accrued expenses and other current liabilities | 148,235 | 162,926 | 171,514 | ||||
Deferred income taxes | 55,511 | 50,902 | 46,644 | ||||
Redeemable noncontrolling interests | 151,450 | $ 138,995 | 132,865 | 132,046 | $ 134,034 | $ 132,355 | $ 131,123 |
Retained earnings | 1,251,699 | 1,104,556 | 1,091,183 | ||||
Noncontrolling interests | 115,278 | $ 105,083 | $ 104,757 | ||||
Accounting Standards Update 2014-09 [Member] | |||||||
Item Effected [Line Items] | |||||||
Contract assets | (43,293) | ||||||
Inventories, net | 31,157 | ||||||
Prepaid expenses and other current assets | 1,347 | ||||||
Accrued expenses and other current liabilities | 6,667 | ||||||
Deferred income taxes | (3,293) | ||||||
Redeemable noncontrolling interests | 32 | ||||||
Retained earnings | (13,801) | ||||||
Noncontrolling interests | (394) | ||||||
Previous Accounting Guidance [Member] | |||||||
Item Effected [Line Items] | |||||||
Contract assets | 5,675 | ||||||
Inventories, net | 441,485 | ||||||
Prepaid expenses and other current assets | 21,057 | ||||||
Accrued expenses and other current liabilities | 154,902 | ||||||
Deferred income taxes | 52,218 | ||||||
Redeemable noncontrolling interests | 151,482 | ||||||
Retained earnings | 1,237,898 | ||||||
Noncontrolling interests | $ 114,884 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) | 6 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Stockholders' Equity Note, Stock Split | All applicable fiscal 2018 share and per share information has been adjusted retrospectively to reflect a 5-for-4 stock split effected in June 2018. |
ACQUISITIONS (Total Considerati
ACQUISITIONS (Total Consideration) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Business Acquisition [Line Items] | ||
Cash paid, net | $ 134,940 | $ 39,364 |
FY2019 Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid | 136,169 | |
Less: cash acquired | (1,229) | |
Cash paid, net | 134,940 | |
Contingent consideration | 2,107 | |
Fair value of existing equity interest | 1,416 | |
Additional purchase consideration | (323) | |
Total consideration | $ 138,140 |
ACQUISITIONS (Fair Value of Ass
ACQUISITIONS (Fair Value of Assets Acquired) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Assets [Abstract] | ||
Goodwill | $ 1,187,281 | $ 1,114,832 |
FY2019 Acquisition [Member] | ||
Assets [Abstract] | ||
Goodwill | 74,161 | |
Property, Plant, and Equipment | 16,709 | |
Inventory | 11,131 | |
Receivables | 6,855 | |
Other Noncurrent Assets | 814 | |
Assets | 162,893 | |
Liabilities [Abstract] | ||
Deferred Tax Liabilities, Current | 4,040 | |
Accrued Expenses Assumed | 2,384 | |
Accounts Payable | 2,368 | |
Other | 500 | |
Liabilities | 9,292 | |
Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 15,461 | |
Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | 138,140 | |
FY2019 Acquisition [Member] | Trade Names [Member] | ||
Assets [Abstract] | ||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 9,780 | |
FY2019 Acquisition [Member] | Customer Relationships [Member] | ||
Assets [Abstract] | ||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 25,850 | |
FY2019 Acquisition [Member] | Intellectual Property [Member] | ||
Assets [Abstract] | ||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 17,593 |
ACQUISITIONS (Weighted Average
ACQUISITIONS (Weighted Average Amortization Period) (Details) - FY2019 Acquisition [Member] | 6 Months Ended |
Apr. 30, 2019 | |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years |
Intellectual Property [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 17 years |
ACQUISITIONS (Details Textuals)
ACQUISITIONS (Details Textuals) | 6 Months Ended |
Apr. 30, 2019 | |
Flight Support Group [Member] | Decavo [Member] | |
Business Acquisition [Line Items] | |
Name of Acquired Entity | Decavo, LLC ("Decavo") |
Percentage of Voting Interests Acquired | 80.10% |
Description of Acquired Business | Decavo designs and produces complex composite parts and assemblies incorporated into camera and related sensor assemblies and UAV airframes used in demanding defense and civilian applications. |
Flight Support Group [Member] | Decavo [Member] | Existing Management [Member] | |
Business Acquisition [Line Items] | |
Ownership Percentage by Noncontrolling Owners | 19.90% |
Electronic Technologies Group [Member] | Solid Sealing Technology [Member] | |
Business Acquisition [Line Items] | |
Name of Acquired Entity | Solid Sealing Technology, Inc. ("SST") |
Percentage of Voting Interests Acquired | 85.00% |
Description of Acquired Business | SST designs and manufactures high-reliability ceramic-to-metal feedthroughs and connectors for demanding environments within the defense, industrial, life science, medical, research, semiconductor, and other markets. |
Electronic Technologies Group [Member] | Solid Sealing Technology [Member] | Existing Management [Member] | |
Business Acquisition [Line Items] | |
Ownership Percentage by Noncontrolling Owners | 15.00% |
Electronic Technologies Group [Member] | Freebird [Member] | |
Business Acquisition [Line Items] | |
Name of Acquired Entity | Freebird Semiconductor Corporation ("Freebird") |
Percentage of Voting Interests Acquired | 50.00% |
Description of Acquired Business | Freebird is a fabless design and manufacturing company that offers advanced high-reliability wide-band gap power switching technology. |
Electronic Technologies Group [Member] | Apex [Member] | |
Business Acquisition [Line Items] | |
Name of Acquired Entity | Apex Microtechnology, Inc. ("Apex") |
Percentage of Voting Interests Acquired | 92.70% |
Description of Acquired Business | Apex designs and manufactures precision power analog monolithic, hybrid and open frame components for a certain wide range of aerospace, defense, industrial, measurement, medical and test applications. |
Electronic Technologies Group [Member] | Apex [Member] | Existing Management [Member] | |
Business Acquisition [Line Items] | |
Ownership Percentage by Noncontrolling Owners | 7.30% |
Electronic Technologies Group [Member] | Specialty Silicone Products [Member] | |
Business Acquisition [Line Items] | |
Name of Acquired Entity | Specialty Silicone Products, Inc. ("SSP") |
Description of Acquired Business | SSP designs and manufactures silicone material for a variety of demanding applications used in aerospace, defense, research, oil and gas, testing, pharmaceuticals and other markets. |
SELECTED FINANCIAL STATEMENT _3
SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 263,166 | $ 240,544 |
Less: Allowance for doubtful accounts | (3,696) | (3,258) |
Accounts receivable, net | $ 259,470 | $ 237,286 |
SELECTED FINANCIAL STATEMENT _4
SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Inventory [Line Items] | ||
Finished products | $ 200,182 | $ 192,758 |
Work in process | 37,260 | 49,315 |
Materials, parts, assemblies and supplies | 172,886 | 158,039 |
Contracts in process | 0 | 1,649 |
Less: Billings to date | 0 | (208) |
Inventories, net of valuation reserves | $ 410,328 | $ 401,553 |
SELECTED FINANCIAL STATEMENT _5
SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 7,298 | $ 5,864 |
Buildings and improvements | 112,169 | 101,424 |
Machinery, equipment and tooling | 241,107 | 230,108 |
Construction in progress | 7,250 | 5,044 |
Property, plant and equipment, gross | 367,824 | 342,440 |
Less: Accumulated depreciation and amortization | (198,032) | (187,701) |
Property, plant and equipment, net | $ 169,792 | $ 154,739 |
SELECTED FINANCIAL STATEMENT _6
SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Selected Financial Statement Information (Details) [Abstract] | ||||
R&D expenses | $ 16,849 | $ 13,953 | $ 32,049 | $ 26,660 |
SELECTED FINANCIAL STATEMENT _7
SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 | Nov. 01, 2018 | Oct. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 |
Redeemable Noncontrolling Interest [Line Items] | |||||||
Redeemable at fair value | $ 102,928 | $ 83,524 | |||||
Redeemable based on a multiple of future earnings | 48,522 | 48,522 | |||||
Redeemable noncontrolling interests | $ 151,450 | $ 138,995 | $ 132,865 | $ 132,046 | $ 134,034 | $ 132,355 | $ 131,123 |
SELECTED FINANCIAL STATEMENT _8
SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | $ (15,256) | |||
Unrealized loss | (1,108) | |||
Amortization of unrealized loss | $ 6 | $ 2 | 12 | $ 6 |
Ending accumulated other comprehensive loss | (16,352) | (16,352) | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | (14,370) | |||
Unrealized loss | (1,108) | |||
Ending accumulated other comprehensive loss | (15,478) | (15,478) | ||
Pension Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | (886) | |||
Unrealized loss | 0 | |||
Amortization of unrealized loss | 12 | |||
Ending accumulated other comprehensive loss | $ (874) | $ (874) |
SELECTED FINANCIAL STATEMENT _9
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Oct. 31, 2018 | |
Selected Financial Statement Information (Details) [Abstract] | |||||
Accrued customer rebates and credits | $ 15.3 | $ 15.3 | $ 16.9 | ||
Total customer rebates and credits deducted within net sales | $ 2.2 | $ 2.7 | $ 3.6 | $ 5.2 | |
Flight Support Group [Member] | Decavo [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of Voting Interests Acquired | 80.10% | 80.10% | |||
Electronic Technologies Group [Member] | Solid Sealing Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of Voting Interests Acquired | 85.00% | 85.00% | |||
Electronic Technologies Group [Member] | Apex [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of Voting Interests Acquired | 92.70% | 92.70% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands | 6 Months Ended |
Apr. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Opening Balance | $ 1,114,832 |
Goodwill acquired | 74,161 |
Foreign currency translation adjustments | (1,587) |
Adjustments to goodwill | (125) |
Ending Balance | 1,187,281 |
Flight Support Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 398,694 |
Goodwill acquired | 12,476 |
Foreign currency translation adjustments | (890) |
Adjustments to goodwill | (125) |
Ending Balance | 410,155 |
Electronic Technologies Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 716,138 |
Goodwill acquired | 61,685 |
Foreign currency translation adjustments | (697) |
Adjustments to goodwill | 0 |
Ending Balance | $ 777,126 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 611,146 | $ 568,695 |
Accumulated Amortization | (221,510) | (196,516) |
Net Carrying Amount | 389,636 | 372,179 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Asset Gross Carrying Amount | 754,880 | 702,876 |
Intangible Asset Net Carrying Amount | 533,370 | 506,360 |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 143,734 | 134,181 |
Net Carrying Amount | 143,734 | 134,181 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 398,876 | 373,946 |
Accumulated Amortization | (152,744) | (135,359) |
Net Carrying Amount | 246,132 | 238,587 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 203,491 | 185,983 |
Accumulated Amortization | (63,328) | (56,055) |
Net Carrying Amount | 140,163 | 129,928 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 6,559 | 6,559 |
Accumulated Amortization | (3,815) | (3,522) |
Net Carrying Amount | 2,744 | 3,037 |
Patents [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 943 | 927 |
Accumulated Amortization | (635) | (609) |
Net Carrying Amount | 308 | 318 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 811 | 814 |
Accumulated Amortization | (811) | (814) |
Net Carrying Amount | 0 | 0 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 466 | 466 |
Accumulated Amortization | (177) | (157) |
Net Carrying Amount | $ 289 | $ 309 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Expected Tax Deductible Amount | $ 31 | $ 31 | ||
Amortization expense related to intangible assets | 13.1 | $ 12.4 | 25.9 | $ 24.8 |
Estimated Amortization Expense, remainder of fiscal year | 26.3 | 26.3 | ||
Estimated Amortization Expense, for fiscal 2020 | 49.8 | 49.8 | ||
Estimated Amortization Expense, for fiscal 2021 | 47 | 47 | ||
Estimated Amortization Expense, for fiscal 2022 | 40.7 | 40.7 | ||
Estimated Amortization Expense, for fiscal 2023 | 35.5 | 35.5 | ||
Estimated Amortization Expense, for fiscal 2024 | 31.3 | 31.3 | ||
Estimated Amortization Expense, thereafter | $ 159 | $ 159 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Borrowings under revolving credit facility | $ 547,000 | $ 523,000 |
Capital leases | 9,383 | 9,470 |
Total debt and capital leases | 556,383 | 532,470 |
Less: Current maturities of long-term debt | (858) | (859) |
Long-term debt, net of current maturities | $ 555,525 | $ 531,611 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) | Apr. 30, 2019 | Oct. 31, 2018 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.60% | 3.40% |
REVENUE (Contract Assets and Li
REVENUE (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 30, 2019 | Nov. 01, 2018 | Oct. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 48,968 | $ 54,272 | $ 14,183 |
Contract liabilities | 24,427 | 19,674 | |
Net contract assets | 24,541 | $ 34,598 | |
Billings in Excess of Additional Unbilled Receivables using Over-time recognition model | (5,304) | ||
Receipts During the Period in Excess of Customer Deposits Recognized as Revenue | 4,753 | ||
Billings in Excess of Unbilled Receivable and New Deposits in Excess of Deposits Recognized as Revenue | $ (10,057) |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue, by Product Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | $ 515,648 | $ 430,602 | $ 981,794 | $ 835,012 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 308,251 | 267,836 | 595,464 | 522,557 | |
Flight Support Group [Member] | Aftermarket Replacement Parts [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | [1] | 167,225 | 139,567 | 326,722 | 273,855 |
Flight Support Group [Member] | Repair and Overhaul Parts and Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | [2] | 73,454 | 71,756 | 140,617 | 140,080 |
Flight Support Group [Member] | Specialty Products [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | [3] | 67,572 | 56,513 | 128,125 | 108,622 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 214,451 | 168,722 | 398,880 | 324,380 | |
Electronic Technologies Group [Member] | Electronic Components for Defense, Space and Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | [4] | 161,664 | 130,891 | 299,414 | 248,232 |
Electronic Technologies Group [Member] | Other Electronic Components [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | [5] | 52,787 | 37,831 | 99,466 | 76,148 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | $ (7,054) | $ (5,956) | $ (12,550) | $ (11,925) | |
[1] | (1) Includes various jet engine and aircraft component replacement parts. | ||||
[2] | (2) Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft. | ||||
[3] | (3) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh. | ||||
[4] | (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners and high performance active antenna systems. | ||||
[5] | (5) Includes various component parts such as electromagnetic and radio interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies and silicone material for a variety of demanding applications. |
REVENUE (Disaggregation of Re_2
REVENUE (Disaggregation of Revenue, by Industry) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | $ 515,648 | $ 430,602 | $ 981,794 | $ 835,012 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 308,251 | 267,836 | 595,464 | 522,557 | |
Flight Support Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 249,225 | 220,083 | 484,398 | 429,674 | |
Flight Support Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 45,969 | 36,312 | 87,503 | 71,094 | |
Flight Support Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | [1] | 13,057 | 11,441 | 23,563 | 21,789 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 214,451 | 168,722 | 398,880 | 324,380 | |
Electronic Technologies Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 22,876 | 14,935 | 42,171 | 30,458 | |
Electronic Technologies Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 135,952 | 109,130 | 251,171 | 206,212 | |
Electronic Technologies Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | [2] | 55,623 | 44,657 | 105,538 | 87,710 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | $ (7,054) | $ (5,956) | $ (12,550) | $ (11,925) | |
[1] | (1) | ||||
[2] | (2) |
REVENUE (Details Textuals)
REVENUE (Details Textuals) $ in Millions | 3 Months Ended | 6 Months Ended |
Apr. 30, 2019USD ($) | Apr. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Liability, Revenue Recognized | $ 3.1 | $ 12.1 |
Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining Performance Obligation, Amount | $ 114.3 | $ 114.3 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months | 6 months |
Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-02 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining Performance Obligation, Amount | $ 344.4 | $ 344.4 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year 1 day | 1 year 1 day |
Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining Performance Obligation, Amount | $ 230.1 | $ 230.1 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year 6 months | 1 year 6 months |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Dec. 21, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | ||||
Effective Income Tax Rate, Continuing Operations | 22.50% | 23.60% | 14.50% | 14.80% | ||
Deferred Tax Expense from Stock Options Exercised | $ 14.5 | |||||
Transition Tax Expense from Unremitted Earnings from Foreign Subsidiaries | $ 11.9 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy, by Category) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 149,737 | $ 132,737 |
Liabilities: | ||
Contingent consideration | 25,644 | 20,875 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 9,820 | 9,482 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 139,917 | 123,255 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Liabilities: | ||
Contingent consideration | 25,644 | 20,875 |
Corporate Owned Life Insurance [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 139,917 | 123,255 |
Corporate Owned Life Insurance [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Corporate Owned Life Insurance [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 139,917 | 123,255 |
Corporate Owned Life Insurance [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 8,486 | 3,560 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 8,486 | 3,560 |
Money Market Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Equity Securities [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 941 | 3,179 |
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 941 | 3,179 |
Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Equity Funds [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,437 | |
Equity Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 1,437 | |
Equity Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | |
Equity Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | |
Other Defined Deferred Compensation Plan [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 393 | 1,306 |
Other Defined Deferred Compensation Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 393 | 1,306 |
Other Defined Deferred Compensation Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Other Defined Deferred Compensation Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Level
FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] | Apr. 30, 2019 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2019 Acquisition [Member] | Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | (0.08) |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2019 Acquisition [Member] | Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | 0.09 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | (0.05) |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | 0.12 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2016 Acquisition [Member] | Minimum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | 0.04 |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2016 Acquisition [Member] | Maximum [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | 0.13 |
Measurement Input, Discount Rate [Member] | FY2019 Acquisition [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | 0.064 |
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | 0.054 |
Measurement Input, Discount Rate [Member] | FY 2016 Acquisition [Member] | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Contingent Consideration, Liability, Measurement Input | 0.047 |
FAIR VALUE MEASUREMENTS (Contin
FAIR VALUE MEASUREMENTS (Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2019 | Oct. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in value of contingent consideration | $ 3,104 | |
Liabilities [Abstract] | ||
Total liabilities | 25,644 | $ 20,875 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Opening balance, Liabilities | 20,875 | |
Change in accrued contingent consideration | 3,104 | |
Contingent consideration related to acquisition | 2,107 | |
Change in value of contingent consideration | (350) | |
Ending balance, Liabilities | 25,644 | |
Liabilities [Abstract] | ||
Accrued Liabilities, Current | 7,328 | |
Other Liabilities, Noncurrent | 18,316 | |
Total liabilities | 25,644 | $ 20,875 |
Foreign Currency Gain (Loss) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Foreign currency transaction adjustments | $ (92) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, € in Millions | 6 Months Ended | |||
Apr. 30, 2019USD ($) | Apr. 30, 2019EUR (€) | Oct. 31, 2018USD ($) | Oct. 31, 2018EUR (€) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation plans, asset | $ 149,737 | $ 132,737 | ||
Deferred compensation plans, liability | 148,500 | 131,700 | ||
Contingent consideration | 25,644 | 20,875 | ||
Change in value of contingent consideration | 3,104 | |||
Flight Support Group [Member] | FY2019 Acquisition [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent Consideration Arrangements, Value, High | 6,400 | |||
Contingent consideration | 2,100 | |||
Flight Support Group [Member] | FY 2015 Acquisition [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | 6,800 | 5,800 | ||
Flight Support Group [Member] | FY 2015 Acquisition [Member] | Euro Member Countries, Euro | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | € | € 6.1 | € 5.1 | ||
Electronic Technologies Group [Member] | FY 2017 Acquisition [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent Consideration Arrangements, Value, High | 20,000 | |||
Contingent consideration | 15,800 | 13,900 | ||
Electronic Technologies Group [Member] | FY 2016 Acquisition [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent Consideration Arrangements, Value, High | 1,400 | |||
Contingent consideration | 900 | |||
Change in value of contingent consideration | 300 | |||
Aggregate LCP Liability [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation plans, liability | 147,200 | 125,800 | ||
Aggregate LCP Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred compensation plans, asset | $ 148,400 | $ 126,800 |
NET INCOME PER SHARE ATTRIBUT_3
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Numerator: | ||||
Net income attributable to HEICO | $ 81,782 | $ 59,618 | $ 161,114 | $ 124,770 |
Denominator: | ||||
Weighted Average Number of Shares Outstanding, Basic | 133,313 | 132,425 | 133,123 | 132,237 |
Effect of dilutive stock options | 3,893 | 4,163 | 3,969 | 4,252 |
Weighted Average Number of Shares Outstanding, Diluted | 137,206 | 136,588 | 137,092 | 136,489 |
Earnings Per Share, Basic | $ 0.61 | $ 0.45 | $ 1.21 | $ 0.94 |
Earnings Per Share, Diluted | $ 0.60 | $ 0.44 | $ 1.18 | $ 0.91 |
Anti-dilutive stock options excluded | 470 | 461 | 615 | 615 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 515,648 | $ 430,602 | $ 981,794 | $ 835,012 |
Depreciation | 6,444 | 5,724 | 12,656 | 11,352 |
Amortization | 14,067 | 13,341 | 27,892 | 26,737 |
Operating income | 119,183 | 91,565 | 217,130 | 171,125 |
Capital expenditures | 6,689 | 21,880 | 12,596 | 29,457 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (7,054) | (5,956) | (12,550) | (11,925) |
Depreciation | 252 | 124 | 503 | 186 |
Amortization | 246 | 246 | 492 | 591 |
Operating income | (10,335) | (8,053) | (16,870) | (17,582) |
Capital expenditures | 8 | 15,729 | 8 | 19,266 |
Flight Support Group [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 308,251 | 267,836 | 595,464 | 522,557 |
Depreciation | 3,403 | 3,290 | 6,758 | 6,582 |
Amortization | 4,920 | 4,932 | 9,723 | 9,879 |
Operating income | 62,166 | 51,488 | 115,046 | 97,357 |
Capital expenditures | 3,727 | 3,909 | 6,576 | 6,206 |
Electronic Technologies Group [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 214,451 | 168,722 | 398,880 | 324,380 |
Depreciation | 2,789 | 2,310 | 5,395 | 4,584 |
Amortization | 8,901 | 8,163 | 17,677 | 16,267 |
Operating income | 67,352 | 48,130 | 118,954 | 91,350 |
Capital expenditures | $ 2,954 | $ 2,242 | $ 6,012 | $ 3,985 |
OPERATING SEGMENTS (Total Asset
OPERATING SEGMENTS (Total Assets) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Oct. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,853,640 | $ 2,653,396 |
Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 179,553 | 167,541 |
Flight Support Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,145,039 | 1,093,858 |
Electronic Technologies Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,529,048 | $ 1,391,997 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Schedule of Product Warranties [Line Items] | ||
Balances as of beginning of fiscal year | $ 3,306 | $ 2,921 |
Accruals for warranties | 1,264 | 1,466 |
Acquired warranty liabilities | 0 | 300 |
Warranty claims settled | (1,543) | (1,431) |
Balances as of end of period | $ 3,027 | $ 3,256 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textuals) $ in Millions | Apr. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 4.3 |