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OPERATING SEGMENTS | 12 Months Ended
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Oct. 31, 2018
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace and HEICO Flight Support Corp. and their collective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic and its subsidiaries. The Company's operating segment reporting structure is consistent with how management reviews the business, makes investing and resource decisions and assesses operating performance. Additionally, characteristics such as similarity of products, customers, economic characteristics and various other factors are considered when identifying the Company's operating segments. The FSG designs, manufactures, repairs, overhauls and distributes jet engine and aircraft component replacement parts. The parts and services are approved by the FAA. The FSG also manufactures and sells specialty parts as a subcontractor for aerospace and industrial original equipment manufacturers and the U.S. government. Additionally, the FSG is a leading supplier, distributor, and integrator of military aircraft parts and support services primarily to foreign military organizations allied with the U.S. and is a leading manufacturer of advanced niche components and complex composite assemblies for commercial aviation, defense and space applications. Further, the FSG engineers, designs and manufactures thermal insulation blankets and parts and is a leading distributor of aviation electrical interconnect products and electromechanical parts. The ETG collectively designs and manufactures electronic, microwave, and electro-optical equipment and components, three-dimensional microelectronic and stacked memory products, high-speed interface products, high voltage interconnection devices, high voltage advanced power electronics products, power conversion products, underwater locator beacons, emergency locator transmission beacons, electromagnetic interference shielding, traveling wave tube amplifiers, harsh environment electronic connectors and other interconnect products, communications and electronic intercept receivers and tuners, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft, radio frequency (RF) and microwave amplifiers, transmitters and receivers, satellite microwave modules and integrated subsystems and high performance active antenna systems primarily for the aviation, defense, space, medical, telecommunications and electronics industries. The Company’s reportable operating segments offer distinctive products and services that are marketed through different channels. They are managed separately because of their unique technology and service requirements. Segment Profit or Loss The accounting policies of the Company’s operating segments are the same as those described in Note 1, Summary of Significant Accounting Policies. Management evaluates segment performance based on segment operating income. Information on the Company’s two operating segments, the FSG and the ETG, for each of the last three fiscal years ended October 31 is as follows (in thousands):
|  | Segment |  | Other, Primarily Corporate and Intersegment (1) |  | Consolidated Totals
|  | FSG |  | ETG |  |
Year ended October 31, 2018: |  |  |  |  |  |  |  |
Net sales |  |  | $1,097,937 |  |  |  | $701,827 |  |  |  | ($22,043 | ) |  |  | $1,777,721 |
Depreciation |  | 13,322 |  |  | 9,225 |  |  | 692 |  |  | 23,239 |
Amortization |  | 19,530 |  |  | 33,339 |  |  | 1,083 |  |  | 53,952 |
Operating income |  | 206,623 |  |  | 204,508 |  |  | (34,886 | ) |  | 376,245 |
Capital expenditures |  | 13,074 |  |  | 9,531 |  |  | 19,266 |  |  | 41,871 |
Total assets |  | 1,093,858 |  |  | 1,391,997 |  |  | 167,541 |  |  | 2,653,396 |
Year ended October 31, 2017: |  |  |  |  |  |  |  |
Net sales |  |  | $967,540 |  |  |  | $574,261 |  |  |  | ($16,988 | ) |  |  | $1,524,813 |
Depreciation |  | 13,042 |  |  | 8,609 |  |  | 227 |  |  | 21,878 |
Amortization |  | 18,026 |  |  | 24,167 |  |  | 752 |  |  | 42,945 |
Operating income |  | 179,278 |  |  | 157,451 |  |  | (30,071 | ) |  | 306,658 |
Capital expenditures |  | 15,665 |  |  | 10,100 |  |  | 233 |  |  | 25,998 |
Total assets |  | 1,042,925 |  |  | 1,339,363 |  |  | 130,143 |  |  | 2,512,431 |
Year ended October 31, 2016: |  |  |  |  |  |  |  |
Net sales |  |  | $875,870 |  |  |  | $511,272 |  |  |  | ($10,884 | ) |  |  | $1,376,258 |
Depreciation |  | 12,113 |  |  | 8,030 |  |  | 218 |  |  | 20,361 |
Amortization |  | 16,590 |  |  | 22,664 |  |  | 662 |  |  | 39,916 |
Operating income |  | 163,427 |  |  | 126,031 |  |  | (24,113 | ) |  | 265,345 |
Capital expenditures |  | 18,434 |  |  | 11,962 |  |  | 467 |  |  | 30,863 |
Total assets |  | 877,672 |  |  | 1,015,696 |  |  | 105,044 |  |  | 1,998,412 |
(1) Intersegment activity principally consists of net sales from the ETG to the FSG. |  |
The following table summarizes the Company’s net sales to external customers by product lines included in each operating segment (in thousands):
|  | Year ended October 31,
|  | 2018 |  | 2017 |  | 2016
Flight Support Group: |  |  |  |  |  |
Aftermarket replacement parts (1) |  |  | $582,562 |  |  |  | $489,644 |  |  |  | $405,108 |
Repair and overhaul parts and services (2) |  | 286,454 |  |  | 270,482 |  |  | 251,357 |
Specialty products (3) |  | 228,921 |  |  | 207,414 |  |  | 219,405 |
Total net sales |  | 1,097,937 |  |  | 967,540 |  |  | 875,870 |
Electronic Technologies Group: |  |  |  |  |  |
Electronic component parts for defense, space and aerospace equipment (4) |  | 547,088 |  |  | 420,991 |  |  | 371,297 |
Electronic component parts for equipment in various other industries (5) |  | 154,739 |  |  | 153,270 |  |  | 139,975 |
Total net sales |  | 701,827 |  |  | 574,261 |  |  | 511,272 |
Other, primarily corporate and intersegment |  | (22,043 | ) |  | (16,988 | ) |  | (10,884 | )
Total consolidated net sales |  |  | $1,777,721 |  |  |  | $1,524,813 |  |  |  | $1,376,258 |
(1) | Includes various jet engine and aircraft component replacement parts.
(2) | Includes primarily the sale of parts consumed in various repair and overhaul services on selected jet engine and aircraft components, avionics, instruments, composites and flight surfaces of commercial and military aircraft.
(3) | Includes primarily the sale of specialty components such as thermal insulation blankets, renewable/reusable insulation systems, advanced niche components, complex composite assemblies, and expanded foil mesh.
(4) | Includes various component parts such as electro-optical infrared simulation and test equipment, electro-optical laser products, electro-optical, microwave and other power equipment, high-speed interface products, power conversion products, underwater locator beacons, emergency locator transmission beacons, traveling wave tube amplifiers, microwave power modules, three-dimensional microelectronic and stacked memory products, crashworthy and ballistically self-sealing auxiliary fuel systems, radio frequency (RF) and microwave amplifiers, transmitters and receivers, high performance communications and electronic intercept receivers and tuners and high performance active antenna systems.
(5) | Includes various component parts such as electromagnetic and radio interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products and custom molded cable assemblies.
Major Customer and Geographic Information The Company markets its products and services in approximately 115 countries. The following table summarizes the Company’s net sales to customers located in the United States and to those in other countries for each of the last three fiscal years ended October 31 (in thousands). Net sales are attributed to countries based on the location of the customer. Net sales to any one customer or originating from any one foreign country did not account for 10% or more of the Company’s consolidated net sales during any of the last three fiscal years. The following table also summarizes the Company’s long-lived assets held within and outside of the United States as of October 31 of the last three fiscal years (in thousands). Long-lived assets consist of net property, plant and equipment.
| 2018 |  | 2017 |  | 2016
Net Sales: |  |  |  |  |
United States of America |  | $1,127,998 |  |  |  | $1,007,491 |  |  |  | $904,670 |
Other countries | 649,723 |  |  | 517,322 |  |  | 471,588 |
Total net sales |  | $1,777,721 |  |  |  | $1,524,813 |  |  |  | $1,376,258 |
Long-lived assets: |  |  |  |  |
United States of America |  | $124,225 |  |  |  | $97,367 |  |  |  | $94,889 |
Other countries | 30,514 |  |  | 32,516 |  |  | 26,722 |
Total long-lived assets |  | $154,739 |  |  |  | $129,883 |  |  |  | $121,611 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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