DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - $ / shares | 9 Months Ended | |
Jul. 31, 2023 | Aug. 28, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false | |
Local Phone Number | 987-4000 | |
Entity File Number | 001-04604 | |
City Area Code | 954 | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Current Reporting Status | Yes | |
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | FL | |
Entity Registrant Name | HEICO CORPORATION | |
Zip Code | 33021 | |
Entity Central Index Key | 0000046619 | |
Entity Tax Identification Number | 65-0341002 | |
Address | 3000 Taft Street | |
Entity City | Hollywood | |
State | FL | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Heico Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Security Exchange Name | NYSE | |
Trading Symbol | HEI | |
Entity Common Stock, Shares Outstanding | 54,712,699 | |
Entity Common Stock Par Value | $ 0.01 | |
Common Class A [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $.01 par value per share | |
Security Exchange Name | NYSE | |
Trading Symbol | HEI.A | |
Entity Common Stock, Shares Outstanding | 83,474,773 | |
Entity Common Stock Par Value | $ 0.01 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 694,263 | $ 139,504 |
Accounts receivable, net | 355,491 | 294,848 |
Contract assets | 102,832 | 93,978 |
Inventories, net | 731,966 | 582,471 |
Prepaid expenses and other current assets | 47,372 | 41,929 |
Total current assets | 1,931,924 | 1,152,730 |
Property, plant and equipment, net | 285,033 | 225,879 |
Goodwill | 2,026,279 | 1,672,425 |
Intangible assets, net | 822,545 | 733,327 |
Other assets | 387,521 | 311,135 |
Total assets | 5,453,302 | 4,095,496 |
Current liabilities: | ||
Current maturities of long-term debt | 16,777 | 1,654 |
Trade accounts payable | 139,515 | 116,551 |
Accrued expenses and other current liabilities | 315,606 | 290,199 |
Income taxes payable | 7,149 | 12,455 |
Total current liabilities | 479,047 | 420,859 |
Long-term debt, net of current maturities | 1,198,484 | 288,620 |
Deferred income taxes | 83,357 | 71,162 |
Other long-term liabilities | 389,335 | 338,948 |
Total liabilities | 2,150,223 | 1,119,589 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 343,883 | 327,601 |
Shareholders' equity: | ||
Preferred Stock, $.01 par value per share; 10,000 shares authorized; none issued | 0 | 0 |
Capital in excess of par value | 406,442 | 397,337 |
Deferred compensation obligation | 6,318 | 5,297 |
HEICO stock held by irrevocable trust | (6,318) | (5,297) |
Accumulated other comprehensive loss | (16,657) | (46,499) |
Retained earnings | 2,523,212 | 2,253,932 |
Total HEICO shareholders' equity | 2,914,367 | 2,606,136 |
Noncontrolling interests | 44,829 | 42,170 |
Total shareholders' equity | 2,959,196 | 2,648,306 |
Total liabilities and equity | 5,453,302 | 4,095,496 |
Class A Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | 823 | 821 |
Heico Common Stock [Member] | ||
Shareholders' equity: | ||
Common Stock | $ 547 | $ 545 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] - $ / shares shares in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000 | 10,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 54,706 | 54,519 |
Common stock, shares outstanding | 54,706 | 54,519 |
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 | 82,316 | 82,093 |
Common stock, shares outstanding | 82,316 | 82,093 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Net sales | $ 722,902 | $ 569,528 | $ 2,031,658 | $ 1,598,684 |
Operating costs and expenses: | ||||
Cost of sales | 444,168 | 348,591 | 1,242,613 | 976,308 |
Selling, general and administrative expenses | 129,367 | 92,190 | 353,154 | 272,030 |
Total operating costs and expenses | 573,535 | 440,781 | 1,595,767 | 1,248,338 |
Operating income | 149,367 | 128,747 | 435,891 | 350,346 |
Interest expense | (12,120) | (1,406) | (29,561) | (3,181) |
Other (expense) income | 906 | 145 | 1,888 | 685 |
Income before income taxes and noncontrolling interests | 138,153 | 127,486 | 408,218 | 347,850 |
Income tax expense | 25,400 | 34,400 | 77,400 | 67,400 |
Net income from consolidated operations | 112,753 | 93,086 | 330,818 | 280,450 |
Less: Net income attributable to noncontrolling interests | 10,730 | 10,546 | 30,648 | 25,979 |
Net income attributable to HEICO | $ 102,023 | $ 82,540 | $ 300,170 | $ 254,471 |
Net income per share attributable to HEICO shareholders: | ||||
Basic (in dollars per share) | $ 0.74 | $ 0.61 | $ 2.19 | $ 1.87 |
Diluted (in dollars per share) | $ 0.74 | $ 0.60 | $ 2.17 | $ 1.85 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 137,006 | 135,978 | 136,859 | 135,835 |
Diluted (in shares) | 138,668 | 137,837 | 138,616 | 137,890 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Net income from consolidated operations | $ 112,753 | $ 93,086 | $ 330,818 | $ 280,450 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 885 | (7,744) | 31,264 | (30,772) |
Amortization of unrealized loss on defined benefit pension plan, net of tax | 15 | 16 | 43 | 49 |
Total other comprehensive income (loss) | 900 | (7,728) | 31,307 | (30,723) |
Comprehensive income from consolidated operations | 113,653 | 85,358 | 362,125 | 249,727 |
Less: Comprehensive income attributable to noncontrolling interests | 10,730 | 10,546 | 30,648 | 25,979 |
Less: Foreign currency translation adjustments attributable to noncontrolling interests | (69) | (355) | 1,465 | (1,348) |
Comprehensive income attributable to noncontrolling interests | 10,661 | 10,191 | 32,113 | 24,631 |
Comprehensive income attributable to HEICO | $ 102,992 | $ 75,167 | $ 330,012 | $ 225,096 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interests [Member] | Common Stock [Member] | Common Stock [Member] Class A Common Stock [Member] | Capital In Excess Of Par Value [Member] | Deferred Compensation Obligation [Member] | HEICO Stock Held By Irrevocable Trust [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total Shareholders Equity [Member] |
Beginning Balance at Oct. 31, 2021 | $ 543 | $ 812 | $ 320,747 | $ 5,297 | $ (5,297) | $ (8,552) | $ 1,949,521 | $ 33,868 | $ 2,296,939 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 225,096 | (29,375) | 254,471 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 24,631 | $ 17,639 | 6,992 | ||||||||
Comprehensive income | 249,727 | 232,088 | |||||||||
Cash dividends | (24,466) | (24,466) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1 | 9,497 | 9,498 | ||||||||
Share-based compensation expense | 9,815 | 9,815 | |||||||||
Proceeds from stock option exercises | 3 | 3 | 1,870 | ||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 1,864 | ||||||||||
Stock Redeemed or Called During Period, Value | (1) | (1) | (25,824) | (25,826) | |||||||
Distributions to noncontrolling interests | (15,759) | (1,007) | (1,007) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (12,150) | ||||||||||
Increase to APIC from Purchase of Noncontrolling Interests and Net Assets | 3,415 | 3,415 | |||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 8,194 | (8,194) | (8,194) | ||||||||
Adjustments to Additional Paid in Capital, Other | (2,149) | ||||||||||
Stockholders' Equity, Other | 1 | (2,148) | |||||||||
Ending Balance at Jul. 31, 2022 | 545 | 815 | 317,365 | 5,297 | (5,297) | (37,927) | 2,171,333 | 39,853 | 2,491,984 | ||
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2021 | 252,587 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 24,631 | 17,639 | 6,992 | ||||||||
Noncontrolling Interest, Increase from Business Combination | 42,719 | ||||||||||
Distributions to noncontrolling interests | (15,759) | (1,007) | (1,007) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (12,150) | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 8,194 | (8,194) | (8,194) | ||||||||
Temporary Equity, Other Changes | 3,764 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2022 | 296,994 | ||||||||||
Beginning Balance at Apr. 30, 2022 | 545 | 814 | 311,053 | 5,297 | (5,297) | (30,554) | 2,100,178 | 38,438 | 2,420,474 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 75,167 | (7,373) | 82,540 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 10,191 | 8,377 | 1,814 | ||||||||
Comprehensive income | 85,358 | 76,981 | |||||||||
Cash dividends | (12,239) | (12,239) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1 | 1,758 | 1,759 | ||||||||
Share-based compensation expense | 2,960 | 2,960 | |||||||||
Proceeds from stock option exercises | 260 | ||||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 260 | ||||||||||
Stock Redeemed or Called During Period, Value | (2,134) | (2,134) | |||||||||
Distributions to noncontrolling interests | (5,791) | (399) | (399) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (12,150) | ||||||||||
Increase to APIC from Purchase of Noncontrolling Interests and Net Assets | 3,415 | 3,415 | |||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (853) | 853 | 853 | ||||||||
Adjustments to Additional Paid in Capital, Other | 53 | ||||||||||
Stockholders' Equity, Other | 1 | 54 | |||||||||
Ending Balance at Jul. 31, 2022 | 545 | 815 | 317,365 | 5,297 | (5,297) | (37,927) | 2,171,333 | 39,853 | 2,491,984 | ||
Starting Balance, Redeemable Noncontrolling Interests at Apr. 30, 2022 | 303,927 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 10,191 | 8,377 | 1,814 | ||||||||
Noncontrolling Interest, Increase from Business Combination | 3,484 | ||||||||||
Distributions to noncontrolling interests | (5,791) | (399) | (399) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (12,150) | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | (853) | 853 | 853 | ||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2022 | 296,994 | ||||||||||
Beginning Balance at Oct. 31, 2022 | 2,648,306 | 545 | 821 | 397,337 | 5,297 | (5,297) | (46,499) | 2,253,932 | 42,170 | 2,648,306 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 330,012 | 29,842 | 300,170 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 32,113 | 22,745 | 9,368 | ||||||||
Comprehensive income | 362,125 | 339,380 | |||||||||
Cash dividends | (27,370) | (27,370) | |||||||||
Issuance of common stock to Savings and Investment Plan | 9,222 | 9,222 | |||||||||
Share-based compensation expense | 10,412 | 10,412 | |||||||||
Proceeds from stock option exercises | 2 | 2 | 5,484 | ||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 5,480 | ||||||||||
Stock Redeemed or Called During Period, Value | (14,847) | (14,847) | |||||||||
Distributions to noncontrolling interests | (23,226) | (6,708) | (6,708) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (1,059) | (1,674) | (1,674) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 3,334 | (3,334) | (3,334) | ||||||||
Value of Stock Issued During Period for Deferred Compensation Obligation | 1,021 | ||||||||||
Value of Stock Held During Period in Irrevocable Trust for Deferred Compensation Obligation | (1,021) | ||||||||||
Adjustments to Additional Paid in Capital, Other | 512 | ||||||||||
Stockholders' Equity, Other | (186) | (1) | 325 | ||||||||
Ending Balance at Jul. 31, 2023 | 2,959,196 | 547 | 823 | 406,442 | 6,318 | (6,318) | (16,657) | 2,523,212 | 44,829 | 2,959,196 | |
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2022 | 327,601 | 327,601 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 32,113 | 22,745 | 9,368 | ||||||||
Noncontrolling Interest, Increase from Business Combination | 12,137 | ||||||||||
Distributions to noncontrolling interests | (23,226) | (6,708) | (6,708) | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (1,059) | (1,674) | (1,674) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 3,334 | (3,334) | (3,334) | ||||||||
Temporary Equity, Other Changes | 2,351 | ||||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2023 | 343,883 | 343,883 | |||||||||
Beginning Balance at Apr. 30, 2023 | 547 | 823 | 398,991 | 6,171 | (6,171) | (17,626) | 2,435,155 | 41,777 | 2,859,667 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 102,992 | 969 | 102,023 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 10,661 | 7,389 | 3,272 | ||||||||
Comprehensive income | 113,653 | 106,264 | |||||||||
Cash dividends | (13,702) | (13,702) | |||||||||
Issuance of common stock to Savings and Investment Plan | 1,462 | 1,462 | |||||||||
Share-based compensation expense | 4,357 | 4,357 | |||||||||
Proceeds from stock option exercises | 1,410 | ||||||||||
Proceeds from stock option exercises, Adjustment to Additional Paid in Capital | 1,410 | ||||||||||
Stock Redeemed or Called During Period, Value | (36) | (36) | |||||||||
Distributions to noncontrolling interests | (7,065) | (219) | (219) | ||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 231 | (231) | (231) | ||||||||
Value of Stock Issued During Period for Deferred Compensation Obligation | 147 | ||||||||||
Value of Stock Held During Period in Irrevocable Trust for Deferred Compensation Obligation | (147) | ||||||||||
Adjustments to Additional Paid in Capital, Other | 258 | ||||||||||
Stockholders' Equity, Other | (33) | (1) | 224 | ||||||||
Ending Balance at Jul. 31, 2023 | 2,959,196 | $ 547 | $ 823 | $ 406,442 | $ 6,318 | $ (6,318) | $ (16,657) | 2,523,212 | 44,829 | 2,959,196 | |
Starting Balance, Redeemable Noncontrolling Interests at Apr. 30, 2023 | 345,833 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 10,661 | 7,389 | 3,272 | ||||||||
Distributions to noncontrolling interests | (7,065) | $ (219) | (219) | ||||||||
NoncontrollingInterestDecreaseFromBusinessAcquisition | (2,505) | ||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 231 | $ (231) | $ (231) | ||||||||
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2023 | $ 343,883 | $ 343,883 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED [PARENTHETICAL] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Cash dividends per share (in dollars per share) | $ 0.10 | $ 0.09 | $ 0.20 | $ 0.18 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net income from consolidated operations | $ 330,818 | $ 280,450 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation, Depletion and Amortization | 86,315 | 70,526 |
Employer contributions to HEICO Savings and Investment Plan | 10,647 | 8,884 |
Stock or Unit Option Plan Expense | 10,412 | 9,815 |
Change in value of contingent consideration | 1,218 | (4,253) |
Business Combination, Reversal of Remaining Contingent Consideration, Liability | (9,057) | 0 |
Payment for Contingent Consideration Liability, Operating Activities | (6,299) | 0 |
Deferred income tax provision (benefit) | (22,974) | 7,858 |
Increase (Decrease) in Operating Capital [Abstract] | ||
Increase (Decrease) in Receivables | (15,615) | (18,445) |
Change in contract assets | (7,863) | (4,022) |
Increase (Decrease) in Inventories | (86,681) | (61,190) |
Increase (Decrease) in Prepaid Expense and Other Assets | 1,302 | (11,701) |
Change in trade accounts payable | (1,685) | 18,959 |
Change in accrued expenses and other current liabilities | 12,164 | 12,963 |
Increase (Decrease) in Income Taxes Payable | (4,967) | (2,405) |
Change in other long-term liabilities and assets related to HEICO Leadership Compensation Plan | 11,734 | 13,735 |
Other Noncash Income (Expense) | (9,112) | 2,736 |
Net cash provided by operating activities | 300,357 | 323,910 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Payments to Acquire Businesses, Net of Cash Acquired | (526,702) | (175,298) |
Payments to Acquire Property, Plant, and Equipment | (34,176) | (24,357) |
Net Investment Related to Deferred Compensation Plan | (14,000) | (13,400) |
Payments for (Proceeds from) Other Investing Activities | 689 | (10,296) |
Net cash used in investing activities | (574,189) | (223,351) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Proceeds from Issuance of Senior Long-Term Debt | 1,189,452 | 0 |
Proceeds from Long-term Lines of Credit | 564,000 | 162,000 |
Repayments of Long-Term Lines of Credit | (839,000) | (157,000) |
Payments of Ordinary Dividends, Noncontrolling Interest | (29,934) | (16,766) |
Payments of Ordinary Dividends, Common Stock | (27,370) | (24,466) |
Common Stock Issued Repurchased and Retired Related To Stock Option Exercises | (14,847) | (25,826) |
Payment for Contingent Consideration Liability, Financing Activities | (12,610) | 0 |
Payments of Debt Issuance Costs | (9,055) | (1,010) |
Payments to Noncontrolling Interests | (2,733) | (8,735) |
Proceeds from Stock Options Exercised | 5,484 | 1,870 |
Proceeds from (Payments for) Other Financing Activities | 694 | (157) |
Net cash (used in) provided by financing activities | 824,081 | (70,090) |
Effect of exchange rate changes on cash | 4,510 | (5,162) |
Net (decrease) increase in cash and cash equivalents | 554,759 | 25,307 |
Cash and cash equivalents at beginning of year | 139,504 | 108,298 |
Cash and cash equivalents at end of period | $ 694,263 | $ 133,605 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2023 | |
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, 2022. The October 31, 2022 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the nine months ended July 31, 2023 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. ("HFSC") and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. ("HEICO Electronic") and its subsidiaries. Although the Company has largely emerged from the COVID-19 pandemic, HEICO’s results of operations in fiscal 2023 continue to reflect some of the pandemic’s lingering effects, including its impact on the Company's supply chain. Despite the aforementioned, the Company experienced continued improvement in operating results in the first nine months and third quarter of fiscal 2023 as compared to the first nine months and third quarter of fiscal 2022 principally reflecting improved demand for its commercial aerospace products and services. The FSG has reported twelve consecutive quarters of sequential growth in net sales resulting from commercial air travel recovery in certain domestic travel markets, moderated by a slower recovery in international travel markets. New Accounting Pronouncement In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. The Company adopted ASU 2021-08 in the first quarter of fiscal 2023, resulting in no material effect on the Company's consolidated results of operations, financial position or cash flows. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Jul. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS In March 2023, the Company, through a subsidiary of HEICO Electronic, entered into an exclusive license and acquired certain assets for the Aircraft Emergency Locator Transmitter (“ELT”) product line from Honeywell International. ELTs provide critical emergency transmission signals in the event of aircraft impact on land or water to enable first responders to locate the aircraft. The transaction provides the HEICO Electronic subsidiary with all rights to produce, sell and repair both fixed and portable Honeywell ELTs, as well as various support equipment. The purchase price of this acquisition was paid in cash using cash provided by operating activities and is not material or significant to the Company's condensed consolidated financial statements. On January 5, 2023, the Company, through HEICO Electronic, acquired 93.69% of the outstanding common stock and all of the preferred stock of Exxelia International SAS (“Exxelia”). Exxelia designs, manufactures and sells high reliability (“Hi-Rel”), complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging “clean energy” and electrification applications. The Company believes that this acquisition will further HEICO's strategy of expanding its already wide range of mission-critical and Hi-Rel components for the most demanding applications, as well as provide HEICO with added broad geographic and product diversity, including in the important European market. The majority of the remaining 6.31% interest is owned by certain members of Exxelia's management team. See Note 3, Selected Financial Statement Information - Redeemable Noncontrolling Interests, for additional information. Additionally, as a result of this acquisition, the Company also obtained a 90% ownership interest in Alcon Electronics Pvt. Ltd. (“Alcon”), which is an existing subsidiary of Exxelia. The remaining 10% interest continues to be owned by a certain member of Alcon’s management team. See Note 3, Selected Financial Statement Information – Redeemable Noncontrolling Interests, for additional information. The purchase price of this acquisition was paid in cash, using proceeds from the Company's revolving credit facility. The following table summarizes the total consideration for the acquisition of Exxelia (in thousands): Cash paid $515,785 Less: cash acquired (11,763) Total consideration paid, net $504,022 As noted above, the Company acquired all of the preferred stock of Exxelia. Pursuant to the terms of the acquisition, Exxelia’s preferred stock accrues dividends at 5.18% per annum. Additionally, in connection with the acquisition, HEICO issued Exxelia a ten-year, €150 million note, which accrues interest at 4.7% per annum on the principal outstanding. The Company records foreign currency transaction adjustments on the note receivable within selling, general and administrative ("SG&A") expenses in its Condensed Consolidated Statements of Operations. The following table summarizes the allocation of the total consideration for the acquisition of Exxelia to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands): Assets acquired: Goodwill $327,178 Customer relationships 61,943 Intellectual property 44,044 Trade name 21,703 Inventories 54,688 Property, plant and equipment 50,896 Accounts receivable 41,670 Other assets 13,509 Total assets acquired, excluding cash 615,631 Liabilities assumed: Deferred income taxes 34,691 Accounts payable 22,585 Accrued expenses 18,366 Short-term debt 15,082 Other liabilities 8,730 Total liabilities assumed 99,454 Noncontrolling interests in consolidated subsidiaries 12,155 Net assets acquired, excluding cash $504,022 The allocation of the total consideration 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. The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Exxelia and the value of its assembled workforce that do not qualify for separate recognition, however, benefit both the Company and the noncontrolling interest holders. The fair value of the noncontrolling interests were 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 weighted-average amortization periods of the customer relationships, intellectual property and trade names acquired are 15 years, 15 years and indefinite, respectively. Acquisition costs associated with the purchase of Exxelia totaled $5.1 million for the nine months ended July 31, 2023 and were recorded as a component of SG&A expenses in the Company's Condensed Consolidated Statement of Operations. The operating results of Exxelia were included in the Company’s results of operations from the effective acquisition date. The Company's consolidated net sales for the nine and three months ended July 31, 2023 includes approximately $128.0 million and $58.4 million, respectively, from the acquisition of Exxelia. Net income attributable to HEICO for the nine and three months ended July 31, 2023 was not materially impacted by the acquisition of Exxelia. The following table presents unaudited pro forma financial information for the nine and three months ended July 31, 2023 and July 31, 2022 as if the acquisition of Exxelia had occurred as of November 1, 2021 (in thousands, except per share data): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Net sales $2,071,061 $1,747,124 $722,902 $622,071 Net income from consolidated operations $347,466 $264,754 $113,185 $91,016 Net income attributable to HEICO $316,424 $239,022 $102,367 $80,461 Net income per share attributable to HEICO shareholders: Basic $2.31 $1.76 $.75 $.59 Diluted $2.28 $1.73 $.74 $.58 The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place as of November 1, 2021. The unaudited pro forma financial information includes adjustments to historical amounts such as increased interest expense associated with borrowings to finance the acquisition, foreign currency transaction adjustments on the note receivable from Exxelia, the reclassification of acquisition costs associated with the purchase of Exxelia from fiscal 2023 to fiscal 2022, additional amortization expense related to the intangible assets acquired, and inventory purchase accounting adjustments charged to cost of sales as the inventory is sold. Additionally, the pro forma information presented above reflects HEICO's initial ownership interest of 93.69% of Exxelia's common stock as of the date of |
SELECTED FINANCIAL STATEMENT IN
SELECTED FINANCIAL STATEMENT INFORMATION | 9 Months Ended |
Jul. 31, 2023 | |
Selected Financial Statement Information [Abstract] | |
Selected Financial Statement Information [Text Block] | SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable (in thousands) July 31, 2023 October 31, 2022 Accounts receivable $364,496 $303,181 Less: Allowance for doubtful accounts (9,005) (8,333) Accounts receivable, net $355,491 $294,848 Inventories (in thousands) July 31, 2023 October 31, 2022 Finished products $352,174 $285,024 Work in process 72,040 59,739 Materials, parts, assemblies and supplies 307,752 237,708 Inventories, net of valuation reserves $731,966 $582,471 Property, Plant and Equipment (in thousands) July 31, 2023 October 31, 2022 Land $19,928 $17,579 Buildings and improvements 182,613 148,598 Machinery, equipment and tooling 366,736 322,252 Construction in progress 23,788 14,533 593,065 502,962 Less: Accumulated depreciation and amortization (308,032) (277,083) Property, plant and equipment, net $285,033 $225,879 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 $19.6 million as of July 31, 2023 and $17.9 million as of October 31, 2022. The total customer rebates and credits deducted within net sales in the accompanying Condensed Consolidated Statements of Operations for the nine months ended July 31, 2023 and 2022 was $6.1 million and $5.9 million, respectively. The total customer rebates and credits deducted within net sales in the Company's Condensed Consolidated Statements of Operations for the three months ended July 31, 2023 and 2022 was $1.9 million and $2.2 million, respectively. Research and Development Expenses The amount of new product research and development ("R&D") expenses included in cost of sales in the Company's Condensed Consolidated Statements of Operations for the nine and three months ended July 31, 2023 and 2022 is as follows (in thousands): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 R&D expenses $68,499 $55,804 $25,365 $18,657 Redeemable Noncontrolling Interests The holders of equity interests in certain of the Company's subsidiaries have rights ("Put Rights") that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2032. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): July 31, 2023 October 31, 2022 Redeemable at fair value $300,966 $300,693 Redeemable based on a multiple of future earnings 42,917 26,908 Redeemable noncontrolling interests $343,883 $327,601 As discussed in Note 2, Acquisitions, the Company, through HEICO Electronic, acquired 93.69% of the common stock of Exxelia in January 2023. During the second quarter of fiscal 2023, the Company sold an additional 2.72% of the common stock of Exxelia to its existing noncontrolling interest holders and certain members of Exxelia's management team, which decreased the Company's ownership interest in the common stock of the subsidiary to 90.97%. As part of the liquidity agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interest beginning in fiscal 2028, or sooner under certain conditions, and the Company has the right to purchase the same equity interest beginning in the same period. As discussed in Note 2, Acquisitions, the Company, as a result of its acquisition of Exxelia, acquired 90% of the stock of Alcon in January 2023. As part of the shareholders' agreement, the noncontrolling interest holder has the right to cause the Company to purchase their equity interest beginning in fiscal 2025, or sooner under certain conditions, and the Company has the right to purchase the same equity interest beginning in the same period. During fiscal 2022, the holder of a 19.9% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2015 exercised their option to cause the Company to purchase their noncontrolling interest over a four-year period ending in fiscal 2026. Accordingly, the Company acquired one-fourth of such interest in December 2022, which increased the Company's ownership interest in the subsidiary to 85.1%. Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss for the nine months ended July 31, 2023 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2022 ($45,369) ($1,130) ($46,499) Unrealized gain 29,799 — 29,799 Amortization of unrealized loss — 43 43 Balances as of July 31, 2023 ($15,570) ($1,087) ($16,657) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill by operating segment for the nine months ended July 31, 2023 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2022 $561,961 $1,110,464 $1,672,425 Goodwill acquired — 335,318 335,318 Foreign currency translation adjustments 4,267 12,972 17,239 Adjustments to goodwill (956) 2,253 1,297 Balances as of July 31, 2023 $565,272 $1,461,007 $2,026,279 The goodwill acquired pertains to the fiscal 2023 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. The Company estimates that $21 million of the goodwill acquired in fiscal 2023 will be deductible for income tax purposes. 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 consideration allocation of certain fiscal 2022 acquisitions. Identifiable intangible assets consist of the following (in thousands): As of July 31, 2023 As of October 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $572,071 ($205,964) $366,107 $539,529 ($208,127) $331,402 Intellectual property 330,103 (114,218) 215,885 284,171 (98,983) 185,188 Other 8,703 (7,308) 1,395 8,700 (7,017) 1,683 910,877 (327,490) 583,387 832,400 (314,127) 518,273 Non-Amortizing Assets: Trade names 239,158 — 239,158 215,054 — 215,054 $1,150,035 ($327,490) $822,545 $1,047,454 ($314,127) $733,327 The increase in the gross carrying amount of customer relationships, intellectual property and trade names as of July 31, 2023 compared to October 31, 2022 principally relates to such intangible assets recognized in connection with the fiscal 2023 acquisitions (see Note 2, Acquisitions), net of the write-off of fully amortized customer relationship intangible assets previously recognized in connection with certain historical acquisitions. Amortization expense related to intangible assets for the nine months ended July 31, 2023 and 2022 was $55.5 million and $45.4 million, respectively. Amortization expense for the three months ended July 31, 2023 and 2022 was $18.6 million and $15.2 million, respectively. Amortization expense for the remainder of fiscal 2023 is estimated to be $18.7 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $71.2 million in fiscal 2024, $66.4 million in fiscal 2025, $61.7 million in fiscal 2026, $58.3 million in fiscal 2027, $53.8 million in fiscal 2028, and $253.3 million thereafter. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | SHORT-TERM AND LONG-TERM DEBT A subsidiary of the Company acquired in the first quarter of fiscal 2023 has a short-term borrowing arrangement with a balance of $15.1 million as of the acquisition date and $15.2 million as of July 31, 2023. Long-term debt consists of the following (in thousands): July 31, 2023 October 31, 2022 2028 senior unsecured notes $600,000 $— 2033 senior unsecured notes 600,000 — Borrowings under revolving credit facility — 275,000 Finance leases and note payable 14,004 15,274 Less: Debt discount and debt issuance costs (13,896) — 1,200,108 290,274 Less: Current maturities of long-term debt (1,624) (1,654) $1,198,484 $288,620 Revolving Credit Facility As of July 31, 2023, the Company had no borrowings outstanding under its revolving credit facility ("Credit Facility"). As of October 31 2022, the weighted average interest rate on borrowings under the Credit Facility was 4.6%. The Credit Facility contains both financial and non-financial covenants. As of July 31, 2023, the Company was in compliance with all such covenants. On July 14, 2023, the Company entered into a third amendment to its Credit Facility, to, among other things, (i) increase the capacity by $500 million to $2.0 billion, (ii) extend the maturity date to July 14, 2028, and (iii) increase the applicable rate with respect to certain total leverage ratio tiers in the pricing grid. The Credit Facility includes a feature that will allow the Company to increase the capacity by $750 million to become a $2.75 billion facility through increased commitments from existing lenders. Borrowings under the Credit Facility accrue interest at the Company’s election of the Base Rate or Adjusted Term SOFR, plus in each case, the Applicable Rate (based on the Company’s Total Leverage Ratio) (each as defined in the Credit Facility). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) Adjusted Term SOFR for an Interest Period of one month plus 100 basis points. Adjusted Term SOFR is the rate per annum equal to Term SOFR plus a Term SOFR Adjustment of .10%; provided that Adjusted Term SOFR as so determined shall never be less than 0%, as such capitalized terms are defined in the Credit Facility. The Applicable Rate for SOFR Loans ranges from 1.125% to 2.00%. The Applicable Rate for Base Rate Loans ranges from .125% to 1.00%. A fee is charged on the amount of the unused commitment ranging from .15% to .35% (depending on the Company’s Total Leverage Ratio). The Credit Facility also includes a $100 million sublimit for borrowings made in foreign currencies, a $200 million sublimit for swingline borrowings, and a $100 million sublimit for letters of credit. Outstanding principal, accrued and unpaid interest and other amounts payable under the Credit Facility may be accelerated upon an event of default, as such events are described in the Credit Facility. The Credit Facility is unsecured and contains covenants that require, among other things, the maintenance of a Total Leverage Ratio and an Interest Coverage Ratio (each as defined in the Credit Facility). The Company incurred $6.7 million of debt issuance costs related to the third amendment of the Credit Facility, which were classified as other assets in the Company's Condensed Consolidated Balance Sheet and are being amortized to SG&A expenses in the Company's Condensed Consolidated Statement of Operations over the remaining term of the Credit Facility. Senior Unsecured Notes On July 27, 2023, the Company completed the public offer and sale of senior unsecured notes, which consisted of $600 million principal amount of 5.25% Senior Notes due August 1, 2028 (the "2028 Notes") and $600 million principal amount of 5.35% Senior Notes due August 1, 2033 (the "2033 Notes" and, collectively with the 2028 Notes, the "Notes"). The Company used the net proceeds from the sale of the Notes to repay the outstanding borrowings under its Credit Facility and to fund a portion of the purchase price of the Wencor Group acquisition ("Wencor Acquisition"). See Note 12, Subsequent Events, for additional information. Interest on the Notes is payable semi-annually in arrears on February 1 and August 1 of each year, commencing February 1, 2024. The 2028 Notes and 2033 Notes each have an effective interest rate of 5.5%. The Notes were issued pursuant to an Indenture, dated as of July 27, 2023 (the “Base Indenture”), between the Company and certain of its subsidiaries (collectively, the "Subsidiary Guarantors") and Truist Bank, as trustee (the “Trustee”), as supplemented by a First Supplemental Indenture, dated as of July 27, 2023 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company, Subsidiary Guarantors and the Trustee. The Notes are direct, unsecured senior obligations of the Company and rank equally in right of payment with all of the Company's existing and future senior unsecured indebtedness. The Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of the Company's existing and future subsidiaries (including any member of Wencor Group following consummation of the Wencor Acquisition) that guarantee the Company's obligations under the Credit Facility (the "Guarantor Group"). The Company may redeem the Notes at any time in whole, or from time to time in part, prior to the applicable par call date at the applicable redemption price described in the Indenture. On or after the applicable par call date, the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. The Company may be required to make an offer to purchase the Notes upon the occurrence of a “change of control triggering event” as described in the Indenture. The Indenture includes certain customary covenants that, among other things, limit the Company’s and its restricted subsidiaries’ ability to grant liens to secure indebtedness or engage in sale and leaseback transactions and the Company’s ability to merge or consolidate with, or convey, transfer or lease all or substantially all of its assets to, a third party, as further described in the Indenture. Each of these limitations is subject to certain important qualifications and exceptions. The Indenture also includes certain customary events of default. The occurrence of an event of default will either automatically, in certain instances, or upon declaration by the Trustee or the holders of at least 25% in aggregate principal amount of the Notes at the time outstanding, in other instances, cause the acceleration of the amounts due under the Notes. As of July 31, 2023, the Company was in compliance with all such covenants. The Company received net proceeds of $1,189.5 million from the issuance of the Notes, which was net of a debt discount and underwriting fees. The Company also incurred an additional $3.4 million of debt issuance fees related to the Notes. The aggregate debt discount and debt issuance costs of $13.9 million are classified as a contra liability within long-term debt in the Company's Condensed Consolidated Balance Sheet and are being amortized to interest expense in the Company's Condensed Consolidated Statement of Operations over the respective term of each senior note using the effective interest method. The following table sets forth the carrying value and estimated fair value of the Company’s Notes, which are classified as Level 2 financial instruments in the fair value hierarchy (in thousands). The Company estimated the fair value of the Notes by taking the weighted average of market quotes for the exact security that was actively traded on July 31, 2023. July 31, 2023 Carrying Value Fair Value 2028 Notes $593,889 $598,296 2033 Notes 592,215 597,198 Total $1,186,104 $1,195,494 |
REVENUE
REVENUE | 9 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Contract Balances Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer. Contract liabilities (deferred revenue) represent customer advances and billings in excess of revenue recognized and are included within accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets. Changes in the Company’s contract assets and liabilities for the nine months ended July 31, 2023 are as follows (in thousands): July 31, 2023 October 31, 2022 Change Contract assets $102,832 $93,978 $8,854 Contract liabilities 80,295 58,757 21,538 Net contract assets $22,537 $35,221 ($12,684) The increase in the Company's contract assets during the first nine months of fiscal 2023 mainly reflects additional unbilled receivables on certain customer contracts using an over-time recognition model in excess of billings on certain customer contracts at both the FSG and ETG. The increase in the Company's contract liabilities during the first nine months of fiscal 2023 principally reflects the receipt and billings of advance deposits on certain customer contracts mainly at the FSG. The amount of revenue that the Company recognized during the nine and three months ended July 31, 2023 that was included in contract liabilities as of the beginning of fiscal 2023 was $38.2 million and $8.1 million, respectively. Remaining Performance Obligations As of July 31, 2023, the Company had $609.3 million of remaining performance obligations associated with contracts with an original duration of greater than one year pertaining to the majority of the products offered by the ETG as well as certain products of the FSG's specialty products and aftermarket replacement parts product lines. The Company will recognize net sales as these obligations are satisfied. The Company expects to recognize $146.8 million of this amount during the remainder of fiscal 2023 and $462.5 million thereafter, of which more than half is expected to occur in fiscal 2024. Disaggregation of Revenue The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Flight Support Group: Aftermarket replacement parts (1) $665,936 $512,335 $238,950 $187,453 Specialty products (2) 272,659 202,945 85,166 76,366 Repair and overhaul parts and services (3) 229,925 193,973 80,924 66,440 Total net sales 1,168,520 909,253 405,040 330,259 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 644,239 485,780 248,919 165,871 Electronic component parts for equipment in various other industries (5) 238,446 218,152 76,948 78,332 Total net sales 882,685 703,932 325,867 244,203 Intersegment sales (19,547) (14,501) (8,005) (4,934) Total consolidated net sales $2,031,658 $1,598,684 $722,902 $569,528 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers. (3) 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. (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems and airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, radiation assurance services and products, and high-reliability, complex, passive electronic components and rotary joint assemblies. (5) Includes various component parts such as electromagnetic and radio frequency interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies, silicone material for a variety of demanding applications, and rugged small form-factor embedded computing solutions, and high performance test sockets and adaptors. The following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Flight Support Group: Aerospace $811,962 $637,282 $288,069 $219,558 Defense and Space 295,686 231,014 98,777 94,756 Other (1) 60,872 40,957 18,194 15,945 Total net sales 1,168,520 909,253 405,040 330,259 Electronic Technologies Group: Defense and Space 413,761 402,639 153,190 136,778 Other (2) 335,786 243,238 119,992 87,103 Aerospace 133,138 58,055 52,685 20,322 Total net sales 882,685 703,932 325,867 244,203 Intersegment sales (19,547) (14,501) (8,005) (4,934) Total consolidated net sales $2,031,658 $1,598,684 $722,902 $569,528 (1) Principally industrial products. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company's effective tax rate decreased to 19.0% in the first nine months of fiscal 2023, down from 19.4% in the first nine months of fiscal 2022. The decrease in the Company's effective tax rate principally reflects a favorable impact from tax-exempt unrealized gains in the cash surrender values of life insurance policies related to the HEICO Leadership Compensation Plan in the first nine months of fiscal 2023 as compared to tax-exempt unrealized losses recognized in the first nine months of fiscal 2022. This was partially offset by a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2022. The Company recognized a discrete tax benefit from stock option exercises in both the first quarter of fiscal 2023 and 2022 of $6.2 million and $17.8 million, respectively. The Company's effective tax rate decreased to 18.4% in the third quarter of fiscal 2023, down from 27.0% in the third quarter of fiscal 2022. The decrease in the Company's effective tax rate principally reflects a favorable impact from tax-exempt unrealized gains in the cash |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands): As of July 31, 2023 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $246,911 $— $246,911 Money market fund 7,778 — — 7,778 Total assets $7,778 $246,911 $— $254,689 Liabilities: Contingent consideration $— $— $56,426 $56,426 As of October 31, 2022 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $201,239 $— $201,239 Money market fund 3,477 — — 3,477 Total assets $3,477 $201,239 $— $204,716 Liabilities: Contingent consideration $— $— $82,803 $82,803 The Company maintains the HEICO Corporation Leadership Compensation Plan (the "LCP"), which is a non-qualified deferred compensation plan. The assets of the LCP principally represent cash surrender values of life insurance policies, which derive their fair values from investments in mutual funds that are managed by an insurance company, and are classified within Level 2 and valued using a market approach. Certain other assets of the LCP represent investments in money market funds that are classified within Level 1. The assets of the LCP are held within an irrevocable trust and classified within other assets in the Company’s Condensed Consolidated Balance Sheets. The related liabilities of the LCP are included within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $249.0 million as of July 31, 2023 and $203.0 million as of October 31, 2022. As part of the agreement to acquire 80.36% of the stock of a subsidiary by the ETG in fiscal 2022, the Company may be obligated to pay contingent consideration of up to $12.1 million in fiscal 2027 based on the earnings of the acquired entity during fiscal years 2025 and 2026 provided the entity meets a certain earnings objective during each of fiscal years 2024 to 2026. As of July 31, 2023, the estimated fair value of the contingent consideration was $5.1 million. As part of the agreement to acquire 96% of the stock of a subsidiary by the FSG in fiscal 2022, the Company may be obligated to pay contingent consideration of up to $27.4 million in fiscal 2027 based on the earnings of the acquired entity during fiscal years 2025 and 2026 provided the entity meets certain earnings objectives during each of fiscal years 2022 to 2024. As of July 31, 2023, the estimated fair value of the contingent consideration was $16.4 million. As part of the agreement to acquire 74% of the membership interests of a subsidiary by the FSG in fiscal 2022, the Company may be obligated to pay contingent consideration of $14.1 million in fiscal 2027 should the acquired entity meet a certain earnings objective during the five-year period following the acquisition. As of July 31, 2023, the estimated fair value of the contingent consideration was $6.4 million. As part of the agreement to acquire 89% of the membership interests of a subsidiary by the FSG in fiscal 2021, the Company may have been obligated to pay contingent consideration of up to $26.7 million should the acquired entity have met certain earnings objectives following the acquisition. In March 2023, at the request of the noncontrolling interest holders, the agreement was amended and the Company paid $8.9 million to the noncontrolling interest holders in consideration for the termination of the contingent consideration arrangement. Accordingly, of the $18.0 million estimated fair value of contingent consideration as of October 31, 2022, the remaining $9.1 million (after the $8.9 million payment) was reversed in the second quarter of fiscal 2023. As part of the agreement to acquire 89.99% of the equity interests of a subsidiary by the ETG in fiscal 2020, the Company may be obligated to pay contingent consideration of up to CAD $13.5 million, or $10.2 million, in fiscal 2025 should the acquired entity meet certain earnings objectives during fiscal 2023 and 2024. As of July 31, 2023, the estimated fair value of the contingent consideration was CAD $11.5 million, or $8.7 million. Additionally, the acquired entity achieved a required earnings objective during fiscal years 2021 and 2022 that obligated the Company to pay additional contingent consideration of CAD $13.5 million, or $10.0 million, which was paid in the first quarter of fiscal 2023. As part of the agreement to acquire a subsidiary by the ETG in fiscal 2017, the Company may be obligated to pay contingent consideration of $20.0 million in fiscal 2023 should the acquired entity meet a certain earnings objective during the first six years following the acquisition. As of July 31, 2023, the estimated fair value of the contingent consideration was $19.8 million. The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of July 31, 2023 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 9-1-2022 $5,120 Compound annual revenue growth rate 0% - 17% 11% Discount rate 8.7% - 8.7% 8.7% 7-18-2022 16,407 Compound annual revenue growth rate 2% - 9% 6% Discount rate 8.7% - 8.7% 8.7% 3-17-2022 6,407 Compound annual revenue growth rate (3%) - 5% 0% Discount rate 7.5% - 7.5% 7.5% 8-18-2020 8,715 Compound annual revenue growth rate 12% - 21% 18% Discount rate 9.7% - 9.7% 9.7% 9-15-2017 19,777 Compound annual revenue growth rate 4% - 5% 5% Discount rate 6.7% - 6.7% 6.7% (1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. Changes in the Company’s contingent consideration liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the nine months ended July 31, 2023 are as follows (in thousands): Liabilities Balance as of October 31, 2022 $82,803 Payment of contingent consideration (18,909) Amendment and termination of contingent consideration agreement (9,057) Increase in accrued contingent consideration, net 1,218 Foreign currency transaction adjustments 371 Balance as of July 31, 2023 $56,426 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $19,777 Other long-term liabilities 36,649 $56,426 The Company records changes in accrued contingent consideration and foreign currency transaction adjustments within SG&A expenses The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of July 31, 2023 due to the relatively short maturity of the respective instruments. The carrying amount of borrowings under the Company's credit facility approximates fair value due to its variable interest rate. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS | 9 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Numerator: Net income attributable to HEICO $300,170 $254,471 $102,023 $82,540 Denominator: Weighted average common shares outstanding - basic 136,859 135,835 137,006 135,978 Effect of dilutive stock options 1,757 2,055 1,662 1,859 Weighted average common shares outstanding - diluted 138,616 137,890 138,668 137,837 Net income per share attributable to HEICO shareholders: Basic $2.19 $1.87 $.74 $.61 Diluted $2.17 $1.85 $.74 $.60 Anti-dilutive stock options excluded 1,138 748 1,323 767 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 9 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS Information on the Company’s two operating segments, the FSG and the ETG, for the nine and three months ended July 31, 2023 and 2022, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Nine months ended July 31, 2023: Net sales $1,168,520 $882,685 ($19,547) $2,031,658 Depreciation 12,293 14,856 800 27,949 Amortization 19,360 37,886 1,120 58,366 Operating income 272,693 198,673 (35,475) 435,891 Capital expenditures 15,434 18,575 167 34,176 Nine months ended July 31, 2022: Net sales $909,253 $703,932 ($14,501) $1,598,684 Depreciation 11,493 10,153 743 22,389 Amortization 17,543 29,750 844 48,137 Operating income 189,329 189,605 (28,588) 350,346 Capital expenditures 12,084 11,874 399 24,357 Three months ended July 31, 2023: Net sales $405,040 $325,867 ($8,005) $722,902 Depreciation 4,141 5,395 265 9,801 Amortization 6,074 13,084 572 19,730 Operating income 89,172 74,157 (13,962) 149,367 Capital expenditures 4,791 7,517 (53) 12,255 Three months ended July 31, 2022: Net sales $330,259 $244,203 ($4,934) $569,528 Depreciation 4,082 3,361 250 7,693 Amortization 6,281 9,571 274 16,126 Operating income 70,756 68,029 (10,038) 128,747 Capital expenditures 3,971 3,879 296 8,146 (1) Intersegment activity principally consists of net sales from the ETG to the FSG. Total assets by operating segment are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of July 31, 2023 $1,690,971 $2,913,437 $848,894 $5,453,302 Total assets as of October 31, 2022 1,635,229 2,230,744 229,523 4,095,496 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees As of July 31, 2023, the Company has arranged for standby letters of credit aggregating $13.1 million, which are supported by its revolving credit facility and principally pertain to performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries as well as a payment guarantee related to potential workers' compensation claims. Product Warranty Changes in the Company’s product warranty liability for the nine months ended July 31, 2023 and 2022, respectively, are as follows (in thousands): Nine months ended July 31, 2023 2022 Balances as of beginning of fiscal year $3,296 $3,379 Accruals for warranties 1,812 1,352 Acquired warranty liabilities (85) — Warranty claims settled (1,699) (1,719) Balances as of July 31 $3,324 $3,012 Litigation On April 20, 2021, an indirect subsidiary of HFSC, which was acquired in June 2020, received a grand jury subpoena from the United States District Court for the Southern District of California requiring the production of documents for the time period December 1, 2017 through February 4, 2019 related to the subsidiary's employment of a certain individual and its performance of work on certain Navy vessels during that time period. The Company is cooperating with the investigation. The Company has completed its production of documents responsive to the subpoena, although the Company has a continuing obligation to produce such documents should any be located. The Company cannot predict the outcome of the investigation or when the investigation will ultimately be resolved; nor can the Company reasonably estimate the possible range of loss or impact to its business, if any, that may result from this matter. With the exception of the matter noted above, the Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jul. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On August 4, 2023, the Company completed the acquisition of Wencor Group ("Wencor"), which it intends to integrate into the FSG. The aggregate purchase price consisted of $1.9 billion in cash, subject to certain working capital, debt and other customary adjustments, and 1,137,628 shares of HEICO Class A Common Stock. The cash consideration was paid using proceeds from the sale of the Notes and from the Company's Credit Facility. See Note 5, Short-Term and Long-Term Debt, for additional information. Also, on August 8, 2023, the Company terminated the commitment letter, dated May 14, 2023, with Truist Bank and Truist Securities, Inc., as amended, relating to a bridge financing to finance a portion of the Wencor Acquisition, as such financing was no longer necessary. In connection with the Wencor Acquisition, the Company entered into a registration rights agreement, dated August 4, 2023 (the “Registration Rights Agreement”), by and among the Company and Holders (as defined in the Registration Rights Agreement). Pursuant to the Registration Rights Agreement (i) the Company agreed to file a resale registration statement for the Registrable Securities (as defined in the Registration Rights Agreement) immediately following the closing of the Wencor Acquisition and (ii) the Holders were granted certain registration rights with respect to registration statements filed subsequent to the closing of the Wencor Acquisition. On August 4, 2023, the Company filed a Registration Statement on Form S-3ASR to register the resale of 1,054,606 shares of HEICO Class A Common Stock issued in connection with the Wencor Acquisition (the “Registration Statement”). The Registration Statement was effective as of August 4, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 31, 2023 | |
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, 2022. The October 31, 2022 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the nine months ended July 31, 2023 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. ("HFSC") and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. ("HEICO Electronic") and its subsidiaries. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncement In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. The Company adopted ASU 2021-08 in the first quarter of fiscal 2023, resulting in no material effect on the Company's consolidated results of operations, financial position or cash flows. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) - Exxelia | 9 Months Ended |
Jul. 31, 2023 | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Total Consideration | The following table summarizes the total consideration for the acquisition of Exxelia (in thousands): Cash paid $515,785 Less: cash acquired (11,763) Total consideration paid, net $504,022 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the total consideration for the acquisition of Exxelia to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed (in thousands): Assets acquired: Goodwill $327,178 Customer relationships 61,943 Intellectual property 44,044 Trade name 21,703 Inventories 54,688 Property, plant and equipment 50,896 Accounts receivable 41,670 Other assets 13,509 Total assets acquired, excluding cash 615,631 Liabilities assumed: Deferred income taxes 34,691 Accounts payable 22,585 Accrued expenses 18,366 Short-term debt 15,082 Other liabilities 8,730 Total liabilities assumed 99,454 Noncontrolling interests in consolidated subsidiaries 12,155 Net assets acquired, excluding cash $504,022 |
Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma financial information for the nine and three months ended July 31, 2023 and July 31, 2022 as if the acquisition of Exxelia had occurred as of November 1, 2021 (in thousands, except per share data): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Net sales $2,071,061 $1,747,124 $722,902 $622,071 Net income from consolidated operations $347,466 $264,754 $113,185 $91,016 Net income attributable to HEICO $316,424 $239,022 $102,367 $80,461 Net income per share attributable to HEICO shareholders: Basic $2.31 $1.76 $.75 $.59 Diluted $2.28 $1.73 $.74 $.58 |
SELECTED FINANCIAL STATEMENT _2
SELECTED FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Selected Financial Statement Information [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands) July 31, 2023 October 31, 2022 Accounts receivable $364,496 $303,181 Less: Allowance for doubtful accounts (9,005) (8,333) Accounts receivable, net $355,491 $294,848 |
Schedule of Inventories [Table Text Block] | Inventories (in thousands) July 31, 2023 October 31, 2022 Finished products $352,174 $285,024 Work in process 72,040 59,739 Materials, parts, assemblies and supplies 307,752 237,708 Inventories, net of valuation reserves $731,966 $582,471 |
Schedule of Property, Plant and Equipment [Table Text Block] | Property, Plant and Equipment (in thousands) July 31, 2023 October 31, 2022 Land $19,928 $17,579 Buildings and improvements 182,613 148,598 Machinery, equipment and tooling 366,736 322,252 Construction in progress 23,788 14,533 593,065 502,962 Less: Accumulated depreciation and amortization (308,032) (277,083) Property, plant and equipment, net $285,033 $225,879 |
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 in the Company's Condensed Consolidated Statements of Operations for the nine and three months ended July 31, 2023 and 2022 is as follows (in thousands): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 R&D expenses $68,499 $55,804 $25,365 $18,657 |
Schedule of Redeemable Noncontrolling Interests [Table Text Block] | Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands): July 31, 2023 October 31, 2022 Redeemable at fair value $300,966 $300,693 Redeemable based on a multiple of future earnings 42,917 26,908 Redeemable noncontrolling interests $343,883 $327,601 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in the components of accumulated other comprehensive loss for the nine months ended July 31, 2023 are as follows (in thousands): Foreign Currency Translation Defined Benefit Pension Plan Accumulated Balances as of October 31, 2022 ($45,369) ($1,130) ($46,499) Unrealized gain 29,799 — 29,799 Amortization of unrealized loss — 43 43 Balances as of July 31, 2023 ($15,570) ($1,087) ($16,657) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by operating segment for the nine months ended July 31, 2023 are as follows (in thousands): Segment Consolidated Totals FSG ETG Balances as of October 31, 2022 $561,961 $1,110,464 $1,672,425 Goodwill acquired — 335,318 335,318 Foreign currency translation adjustments 4,267 12,972 17,239 Adjustments to goodwill (956) 2,253 1,297 Balances as of July 31, 2023 $565,272 $1,461,007 $2,026,279 |
Schedule Of Identifiable Intangible Assets [Table Text Block] | Identifiable intangible assets consist of the following (in thousands): As of July 31, 2023 As of October 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Assets: Customer relationships $572,071 ($205,964) $366,107 $539,529 ($208,127) $331,402 Intellectual property 330,103 (114,218) 215,885 284,171 (98,983) 185,188 Other 8,703 (7,308) 1,395 8,700 (7,017) 1,683 910,877 (327,490) 583,387 832,400 (314,127) 518,273 Non-Amortizing Assets: Trade names 239,158 — 239,158 215,054 — 215,054 $1,150,035 ($327,490) $822,545 $1,047,454 ($314,127) $733,327 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following (in thousands): July 31, 2023 October 31, 2022 2028 senior unsecured notes $600,000 $— 2033 senior unsecured notes 600,000 — Borrowings under revolving credit facility — 275,000 Finance leases and note payable 14,004 15,274 Less: Debt discount and debt issuance costs (13,896) — 1,200,108 290,274 Less: Current maturities of long-term debt (1,624) (1,654) $1,198,484 $288,620 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table sets forth the carrying value and estimated fair value of the Company’s Notes, which are classified as Level 2 financial instruments in the fair value hierarchy (in thousands). The Company estimated the fair value of the Notes by taking the weighted average of market quotes for the exact security that was actively traded on July 31, 2023. July 31, 2023 Carrying Value Fair Value 2028 Notes $593,889 $598,296 2033 Notes 592,215 597,198 Total $1,186,104 $1,195,494 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Changes in the Company’s contract assets and liabilities for the nine months ended July 31, 2023 are as follows (in thousands): July 31, 2023 October 31, 2022 Change Contract assets $102,832 $93,978 $8,854 Contract liabilities 80,295 58,757 21,538 Net contract assets $22,537 $35,221 ($12,684) |
Product Line [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Flight Support Group: Aftermarket replacement parts (1) $665,936 $512,335 $238,950 $187,453 Specialty products (2) 272,659 202,945 85,166 76,366 Repair and overhaul parts and services (3) 229,925 193,973 80,924 66,440 Total net sales 1,168,520 909,253 405,040 330,259 Electronic Technologies Group: Electronic component parts primarily for defense, space and aerospace equipment (4) 644,239 485,780 248,919 165,871 Electronic component parts for equipment in various other industries (5) 238,446 218,152 76,948 78,332 Total net sales 882,685 703,932 325,867 244,203 Intersegment sales (19,547) (14,501) (8,005) (4,934) Total consolidated net sales $2,031,658 $1,598,684 $722,902 $569,528 (1) Includes various jet engine and aircraft component replacement parts. (2) Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers. (3) 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. (4) Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems and airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, radiation assurance services and products, and high-reliability, complex, passive electronic components and rotary joint assemblies. (5) Includes various component parts such as electromagnetic and radio frequency interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment |
Sales by Industry [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Flight Support Group: Aerospace $811,962 $637,282 $288,069 $219,558 Defense and Space 295,686 231,014 98,777 94,756 Other (1) 60,872 40,957 18,194 15,945 Total net sales 1,168,520 909,253 405,040 330,259 Electronic Technologies Group: Defense and Space 413,761 402,639 153,190 136,778 Other (2) 335,786 243,238 119,992 87,103 Aerospace 133,138 58,055 52,685 20,322 Total net sales 882,685 703,932 325,867 244,203 Intersegment sales (19,547) (14,501) (8,005) (4,934) Total consolidated net sales $2,031,658 $1,598,684 $722,902 $569,528 (1) Principally industrial products. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands): As of July 31, 2023 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $246,911 $— $246,911 Money market fund 7,778 — — 7,778 Total assets $7,778 $246,911 $— $254,689 Liabilities: Contingent consideration $— $— $56,426 $56,426 As of October 31, 2022 Quoted Prices Significant Significant Unobservable Inputs Total Assets: Deferred compensation plan: Corporate-owned life insurance $— $201,239 $— $201,239 Money market fund 3,477 — — 3,477 Total assets $3,477 $201,239 $— $204,716 Liabilities: Contingent consideration $— $— $82,803 $82,803 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following unobservable inputs were used to derive the estimated fair value of the Company's Level 3 contingent consideration liabilities as of July 31, 2023 ($ in thousands): Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 9-1-2022 $5,120 Compound annual revenue growth rate 0% - 17% 11% Discount rate 8.7% - 8.7% 8.7% 7-18-2022 16,407 Compound annual revenue growth rate 2% - 9% 6% Discount rate 8.7% - 8.7% 8.7% 3-17-2022 6,407 Compound annual revenue growth rate (3%) - 5% 0% Discount rate 7.5% - 7.5% 7.5% 8-18-2020 8,715 Compound annual revenue growth rate 12% - 21% 18% Discount rate 9.7% - 9.7% 9.7% 9-15-2017 19,777 Compound annual revenue growth rate 4% - 5% 5% Discount rate 6.7% - 6.7% 6.7% |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Changes in the Company’s contingent consideration liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the nine months ended July 31, 2023 are as follows (in thousands): Liabilities Balance as of October 31, 2022 $82,803 Payment of contingent consideration (18,909) Amendment and termination of contingent consideration agreement (9,057) Increase in accrued contingent consideration, net 1,218 Foreign currency transaction adjustments 371 Balance as of July 31, 2023 $56,426 Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: Accrued expenses and other current liabilities $19,777 Other long-term liabilities 36,649 $56,426 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data): Nine months ended July 31, Three months ended July 31, 2023 2022 2023 2022 Numerator: Net income attributable to HEICO $300,170 $254,471 $102,023 $82,540 Denominator: Weighted average common shares outstanding - basic 136,859 135,835 137,006 135,978 Effect of dilutive stock options 1,757 2,055 1,662 1,859 Weighted average common shares outstanding - diluted 138,616 137,890 138,668 137,837 Net income per share attributable to HEICO shareholders: Basic $2.19 $1.87 $.74 $.61 Diluted $2.17 $1.85 $.74 $.60 Anti-dilutive stock options excluded 1,138 748 1,323 767 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Information on the Company’s two operating segments, the FSG and the ETG, for the nine and three months ended July 31, 2023 and 2022, respectively, is as follows (in thousands): Other, (1) Consolidated Segment FSG ETG Nine months ended July 31, 2023: Net sales $1,168,520 $882,685 ($19,547) $2,031,658 Depreciation 12,293 14,856 800 27,949 Amortization 19,360 37,886 1,120 58,366 Operating income 272,693 198,673 (35,475) 435,891 Capital expenditures 15,434 18,575 167 34,176 Nine months ended July 31, 2022: Net sales $909,253 $703,932 ($14,501) $1,598,684 Depreciation 11,493 10,153 743 22,389 Amortization 17,543 29,750 844 48,137 Operating income 189,329 189,605 (28,588) 350,346 Capital expenditures 12,084 11,874 399 24,357 Three months ended July 31, 2023: Net sales $405,040 $325,867 ($8,005) $722,902 Depreciation 4,141 5,395 265 9,801 Amortization 6,074 13,084 572 19,730 Operating income 89,172 74,157 (13,962) 149,367 Capital expenditures 4,791 7,517 (53) 12,255 Three months ended July 31, 2022: Net sales $330,259 $244,203 ($4,934) $569,528 Depreciation 4,082 3,361 250 7,693 Amortization 6,281 9,571 274 16,126 Operating income 70,756 68,029 (10,038) 128,747 Capital expenditures 3,971 3,879 296 8,146 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by operating segment are as follows (in thousands): Other, Consolidated Segment FSG ETG Total assets as of July 31, 2023 $1,690,971 $2,913,437 $848,894 $5,453,302 Total assets as of October 31, 2022 1,635,229 2,230,744 229,523 4,095,496 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the Company’s product warranty liability for the nine months ended July 31, 2023 and 2022, respectively, are as follows (in thousands): Nine months ended July 31, 2023 2022 Balances as of beginning of fiscal year $3,296 $3,379 Accruals for warranties 1,812 1,352 Acquired warranty liabilities (85) — Warranty claims settled (1,699) (1,719) Balances as of July 31 $3,324 $3,012 |
ACQUISITIONS (Total Considerati
ACQUISITIONS (Total Consideration) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 526,702 | $ 175,298 |
Exxelia | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | 515,785 | |
Cash Acquired from Acquisition | (11,763) | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 504,022 |
ACQUISITIONS (Fair Value of Acq
ACQUISITIONS (Fair Value of Acquired Assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Goodwill | $ 2,026,279 | $ 1,672,425 |
Exxelia | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Goodwill | 327,178 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 54,688 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 50,896 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 41,670 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 13,509 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 615,631 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 34,691 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 22,585 | |
Accrued Expenses Assumed | 18,366 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-Term Debt | 15,082 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 8,730 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 99,454 | |
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 12,155 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | 504,022 | |
Exxelia | Trade Names [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 21,703 | |
Exxelia | Customer Relationships [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 61,943 | |
Exxelia | Intellectual Property [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 44,044 |
ACQUISITIONS (Pro Forma) (Detai
ACQUISITIONS (Pro Forma) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | ||||
Business Acquisition, Pro Forma Revenue | $ 722,902 | $ 622,071 | $ 2,071,061 | $ 1,747,124 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 113,185 | 91,016 | 347,466 | 264,754 |
Pro Forma Net income attributable to Parent | $ 102,367 | $ 80,461 | $ 316,424 | $ 239,022 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.75 | $ 0.59 | $ 2.31 | $ 1.76 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.74 | $ 0.58 | $ 2.28 | $ 1.73 |
ACQUISITIONS (Details Textuals)
ACQUISITIONS (Details Textuals) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2023 USD ($) | Apr. 30, 2023 | Jul. 31, 2022 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2023 EUR (€) | |
Business Acquisition [Line Items] | ||||||
Revenues | $ 722,902 | $ 569,528 | $ 2,031,658 | $ 1,598,684 | ||
ELT | ||||||
Business Acquisition [Line Items] | ||||||
Name Of Acquired Product Line | Aircraft Emergency Locator Transmitter | |||||
Description of Acquired Product Line | ELTs provide critical emergency transmission signals in the event of aircraft impact on land or water to enable first responders to locate the aircraft. | |||||
ELT | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Reason for Business Combination | The transaction provides the HEICO Electronic subsidiary with all rights to produce, sell and repair both fixed and portable Honeywell ELTs, as well as various support equipment. | |||||
Exxelia | ||||||
Business Acquisition [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.18% | |||||
Revenues | $ 58,400 | $ 128,000 | ||||
Exxelia | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | 15 years | |||
Exxelia | Intellectual Property [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | 15 years | |||
Exxelia | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Terms and Manner of Settlement | HEICO issued Exxelia a ten-year, €150 million note, which accrues interest at 4.7% per annum on the principal outstanding. | |||||
Loans and Leases Receivable, Related Parties | € | € 150 | |||||
Related Party Transaction, Rate | 4.70% | |||||
Heico Electronic Technologies Corp | Exxelia | ||||||
Business Acquisition [Line Items] | ||||||
Name of Acquired Entity | Exxelia International SAS | |||||
Description of Acquired Entity | Exxelia designs, manufactures and sells high reliability (“Hi-Rel”), complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging “clean energy” and electrification applications. | |||||
Business Combination, Reason for Business Combination | The Company believes that this acquisition will further HEICO's strategy of expanding its already wide range of mission-critical and Hi-Rel components for the most demanding applications, as well as provide HEICO with added broad geographic and product diversity, including in the important European market. | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 93.69% | 93.69% | 93.69% | |||
Business Acquisition, Transaction Costs | $ 5,100 | $ 5,100 | ||||
Heico Electronic Technologies Corp | Exxelia | Existing Management | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.31% | 6.31% | 6.31% | |||
Percent of ownership sold during the period | 2.72% | |||||
Heico Electronic Technologies Corp | Exxelia | Exxelia | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 90.97% | 90.97% | 90.97% | |||
Heico Electronic Technologies Corp | Alcon | ||||||
Business Acquisition [Line Items] | ||||||
Name of Acquired Entity | Alcon Electronics Pvt. Ltd. | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 90% | 90% | 90% | |||
Heico Electronic Technologies Corp | Alcon | Existing Management | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10% | 10% | 10% |
SELECTED FINANCIAL STATEMENT _3
SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 364,496 | $ 303,181 |
Less: Allowance for doubtful accounts | (9,005) | (8,333) |
Accounts receivable, net | $ 355,491 | $ 294,848 |
SELECTED FINANCIAL STATEMENT _4
SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Inventory [Line Items] | ||
Finished products | $ 352,174 | $ 285,024 |
Work in process | 72,040 | 59,739 |
Materials, parts, assemblies and supplies | 307,752 | 237,708 |
Inventories, net of valuation reserves | $ 731,966 | $ 582,471 |
SELECTED FINANCIAL STATEMENT _5
SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 19,928 | $ 17,579 |
Buildings and improvements | 182,613 | 148,598 |
Machinery, equipment and tooling | 366,736 | 322,252 |
Construction in progress | 23,788 | 14,533 |
Property, plant and equipment, gross | 593,065 | 502,962 |
Less: Accumulated depreciation and amortization | (308,032) | (277,083) |
Property, plant and equipment, net | $ 285,033 | $ 225,879 |
SELECTED FINANCIAL STATEMENT _6
SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Selected Financial Statement Information (Details) [Abstract] | ||||
R&D expenses | $ 25,365 | $ 18,657 | $ 68,499 | $ 55,804 |
SELECTED FINANCIAL STATEMENT _7
SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable at fair value | $ 300,966 | $ 300,693 |
Redeemable based on a multiple of future earnings | 42,917 | 26,908 |
Redeemable noncontrolling interests | $ 343,883 | $ 327,601 |
SELECTED FINANCIAL STATEMENT _8
SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | $ (46,499) | |||
Unrealized gain (loss) | 29,799 | |||
Amortization of unrealized loss on defined benefit pension plan, net of tax | $ 15 | $ 16 | 43 | $ 49 |
Ending accumulated other comprehensive loss | (16,657) | (16,657) | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | (45,369) | |||
Unrealized gain (loss) | 29,799 | |||
Ending accumulated other comprehensive loss | (15,570) | (15,570) | ||
Pension Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Starting accumulated other comprehensive loss | (1,130) | |||
Amortization of unrealized loss on defined benefit pension plan, net of tax | 43 | |||
Ending accumulated other comprehensive loss | $ (1,087) | $ (1,087) |
SELECTED FINANCIAL STATEMENT _9
SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Oct. 31, 2022 | |
Selected Financial Statement Information (Details) [Abstract] | ||||||
Accrued customer rebates and credits | $ 19.6 | $ 19.6 | $ 17.9 | |||
Total customer rebates and credits deducted within net sales | $ 1.9 | $ 2.2 | $ 6.1 | $ 5.9 | ||
FY 2015 Acquisition | Flight Support Group [Member] | Flight Support Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.90% | 19.90% | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 85.10% | 85.10% | ||||
Exxelia | Heico Electronic Technologies Corp | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 93.69% | 93.69% | ||||
Exxelia | Heico Electronic Technologies Corp | Existing Management | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.31% | 6.31% | ||||
Percent of ownership sold during the period | 2.72% | |||||
Exxelia | Heico Electronic Technologies Corp | Exxelia | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 90.97% | 90.97% | ||||
Alcon | Heico Electronic Technologies Corp | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 90% | 90% | ||||
Alcon | Heico Electronic Technologies Corp | Existing Management | ||||||
Business Acquisition [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10% | 10% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands | 9 Months Ended |
Jul. 31, 2023 USD ($) | |
Goodwill [Line Items] | |
Opening Balance | $ 1,672,425 |
Goodwill acquired | 335,318 |
Foreign currency translation adjustments | 17,239 |
Adjustments to goodwill | 1,297 |
Ending Balance | 2,026,279 |
Flight Support Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 561,961 |
Goodwill acquired | 0 |
Foreign currency translation adjustments | 4,267 |
Adjustments to goodwill | (956) |
Ending Balance | 565,272 |
Electronic Technologies Group [Member] | |
Goodwill [Line Items] | |
Opening Balance | 1,110,464 |
Goodwill acquired | 335,318 |
Foreign currency translation adjustments | 12,972 |
Adjustments to goodwill | 2,253 |
Ending Balance | $ 1,461,007 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Acquired Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Customer Relationships, Gross | $ 572,071 | $ 539,529 |
Finite-Lived Intellectual Property, Gross | 330,103 | 284,171 |
Other Finite-Lived Intangible Assets, Gross | 8,703 | 8,700 |
Gross Carrying Amount | 910,877 | 832,400 |
Indefinite-Lived Trade Names | 239,158 | 215,054 |
Intangible Assets, Gross (Excluding Goodwill) | 1,150,035 | 1,047,454 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Accumulated Amortization | (327,490) | (314,127) |
Net Carrying Amount | 583,387 | 518,273 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Asset Net Carrying Amount | 822,545 | 733,327 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Accumulated Amortization | (205,964) | (208,127) |
Net Carrying Amount | 366,107 | 331,402 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Accumulated Amortization | (114,218) | (98,983) |
Net Carrying Amount | 215,885 | 185,188 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Accumulated Amortization | (7,308) | (7,017) |
Net Carrying Amount | $ 1,395 | $ 1,683 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 21,000 | $ 21,000 | ||
Amortization expense related to intangible assets | 18,600 | $ 15,200 | 55,500 | $ 45,400 |
Estimated Amortization Expense, remainder of fiscal year | 18,700 | 18,700 | ||
Estimated Amortization Expense, for fiscal 2024 | 71,200 | 71,200 | ||
Estimated Amortization Expense, for fiscal 2025 | 66,400 | 66,400 | ||
Estimated Amortization Expense, for fiscal 2026 | 61,700 | 61,700 | ||
Estimated Amortization Expense, for fiscal 2027 | 58,300 | 58,300 | ||
Estimated Amortization Expense, for fiscal 2028 | 53,800 | 53,800 | ||
Estimated Amortization Expense, thereafter | $ 253,300 | $ 253,300 |
LONG-TERM DEBT (Debt) (Details)
LONG-TERM DEBT (Debt) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Borrowings under revolving credit facility | $ 0 | $ 275,000 |
Finance leases and note payable, Total | 14,004 | 15,274 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (13,896) | 0 |
Total debt and capital leases | 1,200,108 | 290,274 |
Current maturities of long-term debt | (1,624) | (1,654) |
Long-term debt, net of current maturities | 1,198,484 | 288,620 |
2028 Senior Notes | ||
Senior Notes | 600,000 | 0 |
2033 Senior Notes | ||
Senior Notes | $ 600,000 | $ 0 |
LONG-TERM DEBT (Notes) (Details
LONG-TERM DEBT (Notes) (Details) $ in Thousands | Jul. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Senior Notes, Noncurrent | $ 1,186,104 |
Fair Value, Inputs, Level 2 [Member] | |
Debt Instrument [Line Items] | |
Long-Term Debt, Fair Value | 1,195,494 |
2028 Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, Noncurrent | 593,889 |
2028 Senior Notes | Fair Value, Inputs, Level 2 [Member] | |
Debt Instrument [Line Items] | |
Long-Term Debt, Fair Value | 598,296 |
2033 Senior Notes | |
Debt Instrument [Line Items] | |
Senior Notes, Noncurrent | 592,215 |
2033 Senior Notes | Fair Value, Inputs, Level 2 [Member] | |
Debt Instrument [Line Items] | |
Long-Term Debt, Fair Value | $ 597,198 |
LONG-TERM DEBT (Details Textual
LONG-TERM DEBT (Details Textuals) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 31, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | |
Debt Instrument [Line Items] | |||
Line of Credit Facility Change in Borrowing Capacity | $ 750,000 | ||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 13,896 | $ 0 | |
Short-Term Debt [Line Items] | |||
Long-term Line of Credit | 0 | $ 275,000 | |
2028 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||
Debt Instrument, Issuance Date | Jul. 27, 2023 | ||
Debt Instrument, Maturity Date | Aug. 01, 2028 | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.50% | ||
Debt Instrument, Payment Terms | Interest on the Notes is payable semi-annually in arrears on February 1 and August 1 of each year | ||
Debt Instrument, Date of First Required Payment | Feb. 01, 2024 | ||
Debt Instrument, Description | The Notes were issued pursuant to an Indenture, dated as of July 27, 2023 (the “Base Indenture”), between the Company and certain of its subsidiaries (collectively, the "Subsidiary Guarantors") and Truist Bank, as trustee (the “Trustee”), as supplemented by a First Supplemental Indenture, dated as of July 27, 2023 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company, Subsidiary Guarantors and the Trustee. The Notes are direct, unsecured senior obligations of the Company and rank equally in right of payment with all of the Company's existing and future senior unsecured indebtedness. | ||
Debt Instrument, Redemption, Description | The Company may redeem the Notes at any time in whole, or from time to time in part, prior to the applicable par call date at the applicable redemption price described in the Indenture. On or after the applicable par call date, the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. The Company may be required to make an offer to purchase the Notes upon the occurrence of a “change of control triggering event” as described in the Indenture. | ||
2033 Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.35% | ||
Debt Instrument, Issuance Date | Jul. 27, 2023 | ||
Debt Instrument, Maturity Date | Aug. 01, 2033 | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.50% | ||
Debt Instrument, Payment Terms | Interest on the Notes is payable semi-annually in arrears on February 1 and August 1 of each year | ||
Debt Instrument, Date of First Required Payment | Feb. 01, 2024 | ||
Debt Instrument, Description | The Notes were issued pursuant to an Indenture, dated as of July 27, 2023 (the “Base Indenture”), between the Company and certain of its subsidiaries (collectively, the "Subsidiary Guarantors") and Truist Bank, as trustee (the “Trustee”), as supplemented by a First Supplemental Indenture, dated as of July 27, 2023 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company, Subsidiary Guarantors and the Trustee. The Notes are direct, unsecured senior obligations of the Company and rank equally in right of payment with all of the Company's existing and future senior unsecured indebtedness. | ||
Debt Instrument, Redemption, Description | The Company may redeem the Notes at any time in whole, or from time to time in part, prior to the applicable par call date at the applicable redemption price described in the Indenture. On or after the applicable par call date, the Notes will be redeemable, at the Company’s option, at any time in whole, or from time to time in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the Notes to be redeemed to, but excluding, the date of redemption. The Company may be required to make an offer to purchase the Notes upon the occurrence of a “change of control triggering event” as described in the Indenture. | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Proceeds from Debt, Net of Issuance Costs | $ 1,189,500 | ||
Debt Issuance Costs, Gross | 3,400 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 4.60% | ||
Line of Credit Facility, Increase (Decrease), Net | 500,000 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 2,000,000 | ||
Line of Credit Facility, Expiration Date | Jul. 14, 2028 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,750,000 | ||
Line of Credit Facility, Interest Rate Description | Borrowings under the Credit Facility accrue interest at the Company’s election of the Base Rate or Adjusted Term SOFR, plus in each case, the Applicable Rate (based on the Company’s Total Leverage Ratio) (each as defined in the Credit Facility). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) Adjusted Term SOFR for an Interest Period of one month plus 100 basis points. Adjusted Term SOFR is the rate per annum equal to Term SOFR plus a Term SOFR Adjustment of .10%; provided that Adjusted Term SOFR as so determined shall never be less than 0%, as such capitalized terms are defined in the Credit Facility. | ||
Line of Credit Facility, Description | Outstanding principal, accrued and unpaid interest and other amounts payable under the Credit Facility may be accelerated upon an event of default, as such events are described in the Credit Facility. The Credit Facility is unsecured and contains covenants that require, among other things, the maintenance of a Total Leverage Ratio and an Interest Coverage Ratio (each as defined in the Credit Facility). | ||
Debt Issuance Costs, Gross | $ 6,700 | ||
Revolving Credit Facility [Member] | Base Rate | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate Description | The Base Rate for any day is a fluctuating rate per annum equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Rate plus .50%; and (iii) Adjusted Term SOFR for an Interest Period of one month plus 100 basis points. | ||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate Description | Adjusted Term SOFR is the rate per annum equal to Term SOFR plus a Term SOFR Adjustment of .10%; provided that Adjusted Term SOFR as so determined shall never be less than 0%, as such capitalized terms are defined in the Credit Facility. | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | ||
Revolving Credit Facility [Member] | Minimum [Member] | Base Rate | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 0.125% | ||
Revolving Credit Facility [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 1.125% | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | ||
Revolving Credit Facility [Member] | Maximum [Member] | Base Rate | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 1% | ||
Revolving Credit Facility [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 2% | ||
Foreign Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | ||
Swingline | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000 | ||
FY 2023 Acquisition | |||
Short-Term Debt [Line Items] | |||
Recognized Liabilities Assumed, Short-Term Debt | $ 15,200 | $ 15,100 |
REVENUE (Contract Assets and Li
REVENUE (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2023 | Oct. 31, 2022 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Contract assets | $ 102,832 | $ 93,978 |
Contract liabilities | 80,295 | 58,757 |
Net contract assets | 22,537 | $ 35,221 |
Increase in contract assets, net | 8,854 | |
Increase (Decrease) in Customer Deposits | 21,538 | |
Contract with Customer, Billings in Excess of Unbilled Receivable and New Deposits in Excess of Deposits Recognized as Revenue | $ (12,684) |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue, by Product Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 722,902 | $ 569,528 | $ 2,031,658 | $ 1,598,684 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 405,040 | 330,259 | 1,168,520 | 909,253 | |
Flight Support Group [Member] | Aftermarket Replacement Parts [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 238,950 | 187,453 | 665,936 | 512,335 |
Flight Support Group [Member] | Specialty Products [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 85,166 | 76,366 | 272,659 | 202,945 |
Flight Support Group [Member] | Repair and Overhaul Parts and Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [3] | 80,924 | 66,440 | 229,925 | 193,973 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 325,867 | 244,203 | 882,685 | 703,932 | |
Electronic Technologies Group [Member] | Electronic Components for Defense, Space and Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [4] | 248,919 | 165,871 | 644,239 | 485,780 |
Electronic Technologies Group [Member] | Other Electronic Components [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [5] | 76,948 | 78,332 | 238,446 | 218,152 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (8,005) | $ (4,934) | $ (19,547) | $ (14,501) | |
[1]Includes various jet engine and aircraft component replacement parts.[2]Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh as well as machining, brazing, fabricating and welding services generally to original equipment manufacturers.[3]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.[4]Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems and airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, radiation assurance services and products, and high-reliability, complex, passive electronic components and rotary joint assemblies.[5]Includes various component parts such as electromagnetic and radio frequency interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies, silicone material for a variety of demanding applications, and rugged small form-factor embedded computing solutions, and high performance test sockets and adaptors. |
REVENUE (Disaggregation of Re_2
REVENUE (Disaggregation of Revenue, by Industry) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 722,902 | $ 569,528 | $ 2,031,658 | $ 1,598,684 | |
Flight Support Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 405,040 | 330,259 | 1,168,520 | 909,253 | |
Flight Support Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 288,069 | 219,558 | 811,962 | 637,282 | |
Flight Support Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 98,777 | 94,756 | 295,686 | 231,014 | |
Flight Support Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [1] | 18,194 | 15,945 | 60,872 | 40,957 |
Electronic Technologies Group [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 325,867 | 244,203 | 882,685 | 703,932 | |
Electronic Technologies Group [Member] | Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 52,685 | 20,322 | 133,138 | 58,055 | |
Electronic Technologies Group [Member] | Defense and Space [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 153,190 | 136,778 | 413,761 | 402,639 | |
Electronic Technologies Group [Member] | Other Industries [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | [2] | 119,992 | 87,103 | 335,786 | 243,238 |
Corporate And Eliminations [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (8,005) | $ (4,934) | $ (19,547) | $ (14,501) | |
[1]Principally industrial products.[2]Principally other electronics and medical products. |
REVENUE (Details Textuals)
REVENUE (Details Textuals) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2023 USD ($) | Jul. 31, 2023 USD ($) | |
REVENUE [Abstract] | ||
Contract with Customer, Liability, Revenue Recognized | $ 8.1 | $ 38.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 609.3 | $ 609.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-02 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 146.8 | $ 146.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 462.5 | $ 462.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months 1 day | 3 months 1 day |
INCOME TAXES (Details Textuals)
INCOME TAXES (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2023 | Jan. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, Percent | 18.40% | 27% | 19% | 19.40% | ||
Tax benefit from stock option exercises recognized in the period | $ 6,200 | $ 17,800 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Hierarchy, by Category) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 254,689 | $ 204,716 |
Liabilities: | ||
Contingent consideration | 56,426 | 82,803 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 7,778 | 3,477 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 246,911 | 201,239 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Liabilities: | ||
Contingent consideration | 56,426 | 82,803 |
Corporate Owned Life Insurance [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 246,911 | 201,239 |
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 | 246,911 | 201,239 |
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 | 7,778 | 3,477 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 7,778 | 3,477 |
Money Market Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | 0 | 0 |
Money Market Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Deferred Compensation Plans [Abstract] | ||
Deferred compensation plans | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | Jul. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 56,426 | $ 82,803 | |
FY2022 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 5,120 | ||
FY2022 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 16,407 | ||
FY2022 Acquisition Subsidiary 3 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 6,407 | ||
FY2020 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 8,715 | ||
FY 2017 Acquisition [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 19,777 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.11 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.17 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.06 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 2 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.02 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 2 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.09 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 3 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 3 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | (0.03) | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2022 Acquisition Subsidiary 3 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.05 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.18 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.12 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY2020 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.21 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.05 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.04 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | FY 2017 Acquisition [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.05 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.087 | |
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.087 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.087 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.087 | |
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.087 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 2 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.087 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 3 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.075 | |
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 3 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.075 | ||
Measurement Input, Discount Rate [Member] | FY2022 Acquisition Subsidiary 3 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.075 | ||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.097 | |
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.097 | ||
Measurement Input, Discount Rate [Member] | FY2020 Acquisition Subsidiary 1 | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.097 | ||
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | [1] | 0.067 | |
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.067 | ||
Measurement Input, Discount Rate [Member] | FY 2017 Acquisition [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.067 | ||
[1]Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. |
FAIR VALUE MEASUREMENTS (Contin
FAIR VALUE MEASUREMENTS (Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Oct. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (1,218) | $ 4,253 | |
Business Combination, Reversal of Remaining Contingent Consideration, Liability | (9,057) | $ 0 | |
Accrued Liabilities, Current | 315,606 | $ 290,199 | |
Other Liabilities, Noncurrent | 389,335 | 338,948 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Opening balance, Liabilities | 82,803 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (18,909) | ||
Business Combination, Reversal of Remaining Contingent Consideration, Liability | (9,057) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 1,218 | ||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 371 | ||
Ending balance, Liabilities | 56,426 | ||
Accrued Liabilities, Current | 19,777 | ||
Other Liabilities, Noncurrent | 36,649 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 56,426 | $ 82,803 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Textuals) $ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 CAD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2023 CAD ($) | Oct. 31, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total liabilities | $ 56,426 | $ 82,803 | ||||
Accrued Liabilities, Current | 315,606 | 290,199 | ||||
Change in value of contingent consideration | 1,218 | $ (4,253) | ||||
Business Combination, Reversal of Remaining Contingent Consideration, Liability | $ 9,057 | $ 0 | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense | ||||
FY2022 Acquisition Subsidiary 1 | Electronic Technologies Group [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.36% | 80.36% | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 12,100 | |||||
Total liabilities | $ 5,100 | |||||
FY2021 Acquisition Subsidiary 1 | Flight Support Group [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 89% | 89% | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 26,700 | |||||
Total liabilities | 18,000 | |||||
Change in value of contingent consideration | $ 8,900 | |||||
Business Combination, Reversal of Remaining Contingent Consideration, Liability | $ 9,100 | |||||
FY2020 Acquisition Subsidiary 1 | Electronic Technologies Group [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 89.99% | 89.99% | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 10,200 | |||||
Total liabilities | 8,700 | |||||
Change in value of contingent consideration | 10,000 | |||||
FY2020 Acquisition Subsidiary 1 | Canada, Dollars | Electronic Technologies Group [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 13,500 | |||||
Total liabilities | $ 11,500 | |||||
Change in value of contingent consideration | $ 13,500 | |||||
FY 2017 Acquisition [Member] | Electronic Technologies Group [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 20,000 | |||||
Total liabilities | $ 19,800 | |||||
FY2022 Acquisition Subsidiary 2 | Flight Support Group [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 96% | 96% | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 27,400 | |||||
Total liabilities | $ 16,400 | |||||
FY2022 Acquisition Subsidiary 3 | Flight Support Group [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 74% | 74% | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 14,100 | |||||
Total liabilities | 6,400 | |||||
Aggregate LCP Liability [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Related liabilities of deferred compensation plans, specified as other long-term liabilities | $ 249,000 | $ 203,000 |
NET INCOME PER SHARE ATTRIBUT_3
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Numerator: | ||||
Net income attributable to HEICO | $ 102,023 | $ 82,540 | $ 300,170 | $ 254,471 |
Denominator: | ||||
Weighted Average Number of Shares Outstanding, Basic | 137,006 | 135,978 | 136,859 | 135,835 |
Effect of dilutive stock options | 1,662 | 1,859 | 1,757 | 2,055 |
Weighted Average Number of Shares Outstanding, Diluted | 138,668 | 137,837 | 138,616 | 137,890 |
Earnings Per Share, Basic | $ 0.74 | $ 0.61 | $ 2.19 | $ 1.87 |
Earnings Per Share, Diluted | $ 0.74 | $ 0.60 | $ 2.17 | $ 1.85 |
Anti-dilutive stock options excluded | 1,323 | 767 | 1,138 | 748 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 722,902 | $ 569,528 | $ 2,031,658 | $ 1,598,684 | |
Depreciation | 9,801 | 7,693 | 27,949 | 22,389 | |
Amortization | 19,730 | 16,126 | 58,366 | 48,137 | |
Operating Income (Loss) | 149,367 | 128,747 | 435,891 | 350,346 | |
Capital expenditures | 12,255 | 8,146 | 34,176 | 24,357 | |
Corporate And Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | (8,005) | (4,934) | (19,547) | (14,501) |
Depreciation | [1] | 265 | 250 | 800 | 743 |
Amortization | [1] | 572 | 274 | 1,120 | 844 |
Operating Income (Loss) | [1] | (13,962) | (10,038) | (35,475) | (28,588) |
Capital expenditures | [1] | (53) | 296 | 167 | 399 |
Flight Support Group [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 405,040 | 330,259 | 1,168,520 | 909,253 | |
Depreciation | 4,141 | 4,082 | 12,293 | 11,493 | |
Amortization | 6,074 | 6,281 | 19,360 | 17,543 | |
Operating Income (Loss) | 89,172 | 70,756 | 272,693 | 189,329 | |
Capital expenditures | 4,791 | 3,971 | 15,434 | 12,084 | |
Electronic Technologies Group [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 325,867 | 244,203 | 882,685 | 703,932 | |
Depreciation | 5,395 | 3,361 | 14,856 | 10,153 | |
Amortization | 13,084 | 9,571 | 37,886 | 29,750 | |
Operating Income (Loss) | 74,157 | 68,029 | 198,673 | 189,605 | |
Capital expenditures | $ 7,517 | $ 3,879 | $ 18,575 | $ 11,874 | |
[1]Intersegment activity principally consists of net sales from the ETG to the FSG |
OPERATING SEGMENTS (Assets) (De
OPERATING SEGMENTS (Assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Oct. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 5,453,302 | $ 4,095,496 |
Other Primarily Corporate and Intersegment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 848,894 | 229,523 |
Flight Support Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,690,971 | 1,635,229 |
Electronic Technologies Group [Member] | Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,913,437 | $ 2,230,744 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Schedule of Product Warranties [Line Items] | ||
Balances as of beginning of fiscal year | $ 3,296 | $ 3,379 |
Accruals for warranties | 1,812 | 1,352 |
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | (85) | 0 |
Warranty claims settled | (1,699) | (1,719) |
Balances as of end of period | $ 3,324 | $ 3,012 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textuals) $ in Millions | Jul. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 13.1 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textuals) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 04, 2023 | Jul. 31, 2023 | |
Exxelia | ||
Subsequent Event [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 515,785 | |
Exxelia | Heico Electronic Technologies Corp | ||
Subsequent Event [Line Items] | ||
Name of Acquired Entity | Exxelia International SAS | |
Description of Acquired Entity | Exxelia designs, manufactures and sells high reliability (“Hi-Rel”), complex, passive electronic components and rotary joint assemblies for mostly aerospace and defense applications, in addition to other high-end applications, such as medical and energy uses, including emerging “clean energy” and electrification applications. | |
Wencor | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Name of Acquired Entity | Wencor Group | |
Payments to Acquire Businesses, Gross | $ 1,900,000 | |
Description of Acquired Entity | Wencor is a large commercial and military aircraft aftermarket company offering factory-new FAA-approved aircraft replacement parts, value-added distribution of high-use commercial & military aftermarket parts and aircraft & engine accessory component repair and overhaul services. | |
Wencor | Subsequent Event | Common Class A [Member] | ||
Subsequent Event [Line Items] | ||
Stock Issued During Period, Shares, Acquisitions | 1,137,628 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,054,606 |