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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended
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Jan. 31, 2019
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2018. The October 31, 2018 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the three months ended January 31, 2019 are not necessarily indicative of the results which may be expected for the entire fiscal year. The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries. Certain prior year amounts have been reclassified to conform to the current year presentation principally to reflect the adoption of Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," in the first quarter of fiscal 2019 and the adoption of ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments," in the fourth quarter of fiscal 2018. Stock Split All applicable fiscal 2018 share and per share information has been adjusted retrospectively to reflect a 5-for-4 stock split effected in June 2018. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, which, as amended, was codified as Accounting Standards Codification (“ASC”) Topic 606, "Revenue from Contracts with Customers" (“ASC 606”). ASC 606 provides a comprehensive new revenue recognition model that supersedes nearly all existing revenue recognition guidance. Under ASC 606, an entity recognizes revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The Company adopted ASC 606 as of November 1, 2018 using the modified retrospective method and recognized the cumulative effect of initially applying ASC 606 to all uncompleted contracts on the date of adoption as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and remains as previously reported in accordance with ASC Topic 605, "Revenue Recognition." ASC 606 impacts the timing of revenue recognition for certain contracts under which the Company produces products with no alternative use and for which it has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date. ASC 606 also impacts the timing of revenue recognition for certain other contracts under which the Company creates or enhances customer-owned assets while performing repair and overhaul services. For these two types of contracts, the Company now recognizes revenue using an over-time recognition model as opposed to generally recognizing revenue at the time of shipment under previous guidance. See Note 6, Revenue, for additional information regarding the Company's revenue recognition policies and disclosures required by ASC 606. The following table presents the cumulative effect of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of November 1, 2018 (in thousands):
| As Reported |  | Impact of |  | As Adjusted
| Under ASC 605 |  | ASC 606 |  | Under ASC 606
| October 31, 2018 |  | Adoption |  | November 1, 2018
Assets |  |  |  |  |
Contract assets |  | $14,183 |  |  |  | $40,089 |  |  |  | $54,272 |
Inventories, net | 401,553 |  |  | (29,412 | ) |  | 372,141 |
Prepaid expenses and other current assets | 21,187 |  |  | (489 | ) |  | 20,698 |
Liabilities |  |  |  |  |
Accrued expenses and other current liabilities |  | $171,514 |  |  |  | ($8,588 | ) |  |  | $162,926 |
Deferred income taxes | 46,644 |  |  | 4,258 |  |  | 50,902 |
Redeemable noncontrolling interests |  | $132,046 |  |  |  | $819 |  |  |  | $132,865 |
Shareholders' equity |  |  |  |  |
Retained earnings |  | $1,091,183 |  |  |  | $13,373 |  |  |  | $1,104,556 |
Noncontrolling interests | 104,757 |  |  | 326 |  |  | 105,083 |
The following table presents the impact of adopting ASC 606 on the Company's Condensed Consolidated Balance Sheet as of January 31, 2019 (in thousands):
| As of January 31, 2019
| As Reported |  | Effect of |  | As Adjusted
| Under ASC 606 |  | ASC 606 |  | Under ASC 605
Assets |  |  |  |  |
Contract assets |  | $47,093 |  |  |  | ($39,757 | ) |  |  | $7,336 |
Inventories, net | 406,348 |  |  | 30,292 |  |  | 436,640 |
Prepaid expenses and other current assets | 30,328 |  |  | 323 |  |  | 30,651 |
Liabilities |  |  |  |  |
Accrued expenses and other current liabilities |  | $133,705 |  |  |  | $8,263 |  |  |  | $141,968 |
Deferred income taxes | 59,133 |  |  | (3,988 | ) |  | 55,145 |
Redeemable noncontrolling interests |  | $138,995 |  |  |  | ($797 | ) |  |  | $138,198 |
Shareholders' equity |  |  |  |  |
Retained earnings |  | $1,174,811 |  |  |  | ($12,203 | ) |  |  | $1,162,608 |
Noncontrolling interests | 112,288 |  |  | (417 | ) |  | 111,871 |
The impact of adopting ASC 606 on the Company's Condensed Consolidated Statement of Operations was not material for the three months ended January 31, 2019. In February 2016, the FASB issued ASU 2016-02, “Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02, as amended, provides certain optional transition relief and shall be applied either at the beginning of the earliest comparative period presented in the year of adoption using a modified retrospective transition approach or by recognizing a cumulative effect adjustment at the date of adoption. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment," which is intended to simplify the current test for goodwill impairment by eliminating the second step in which the implied value of a reporting unit is calculated when the carrying value of the reporting unit exceeds its fair value. Under ASU 2017-04, goodwill impairment should be recognized for the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 must be applied prospectively and is effective for any annual or interim goodwill impairment test in fiscal years beginning after December 15, 2019, or in fiscal 2021 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

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