XML 42 R25.htm IDEA: XBRL DOCUMENT
v3.24.4

SHARE-BASED COMPENSATION | 12 Months Ended
--- | ---
Oct. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Share-based Payment Arrangement [Text Block] | SHARE-BASED COMPENSATION The Company currently has one stock option plan, the HEICO Corporation 2018 Incentive Compensation Plan ("2018 Plan"), which enables the Company to grant various forms of share-based compensation awards including stock options, restricted stock, restricted stock awards and stock appreciation rights. The 2018 Plan became effective in fiscal 2018 and replaced the Company's 2012 Incentive Compensation Plan (“2012 Plan”). Options outstanding under the Company's 2012 Plan and Non-Qualified Stock Option Plan may be exercised pursuant to their terms. The total number of shares approved by the shareholders of the Company for the 2018 Plan is 5.0 million plus any options outstanding under the 2012 Plan as of the 2018 Plan's effective date that are subsequently forfeited or expire. A total of 5.7 million shares of the Company's common stock are reserved for issuance to employees, directors, officers and consultants as of October 31, 2024, including 3.4 million shares currently under option and approximately 2.3 million shares available for future grants. Stock options granted pursuant to the 2018 Plan may be designated as Common Stock and/or Class A Common Stock in such proportions as shall be determined by the Board of Directors or the Stock Option Plan Committee at its sole discretion. The exercise price per share of a stock option granted under the 2018 Plan may not be less than the fair market value of the designated class of Company common stock as of the date of grant and stock option grants vest ratably over a period specified as of the date of grant (generally five years) and expire ten years after the date of grant. Options issued under the 2018 Plan may be designated as incentive stock options or non-qualified stock options, but only employees are eligible to receive incentive stock options and no incentive stock options were outstanding as of October 31, 2024. The 2018 Plan will terminate no later than the tenth anniversary of its effective date. Information concerning share-based activity for each of the last three fiscal years ended October 31 is as follows (in thousands, except per share data):
|  |  | Shares Under Option
| Shares Available For Grant |  | Shares |  | Weighted Average Exercise Price
Outstanding as of October 31, 2021 | 3,374 |  |  | 4,341 |  |  | $52.16 |
Granted | (56) |  |  | 56 |  |  | $120.76 |
Exercised | — |  |  | (762) |  |  | $22.40 |
Cancelled | 6 |  |  | (6) |  |  | $67.98 |
Outstanding as of October 31, 2022 | 3,324 |  |  | 3,629 |  |  | $59.44 |
Granted | (969) |  |  | 969 |  |  | $144.72 |
Exercised | — |  |  | (537) |  |  | $29.23 |
Cancelled | 7 |  |  | (7) |  |  | $111.41 |
Outstanding as of October 31, 2023 | 2,362 |  |  | 4,054 |  |  | $83.74 |
Granted | (65) |  |  | 65 |  |  | $158.68 |
Exercised | — |  |  | (672) |  |  | $27.16 |
Cancelled | 12 |  |  | (12) |  |  | $114.70 |
Outstanding as of October 31, 2024 | 2,309 |  |  | 3,435 |  |  | $96.14 |
Information concerning stock options outstanding (all of which are vested or expected to vest) and stock options exercisable by class of common stock as of October 31, 2024 is as follows (in thousands, except per share and contractual life data):
| Options Outstanding
| Number Outstanding |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (Years) |  | Aggregate Intrinsic Value
Common Stock | 1,369 |  |  | $100.21 |  |  | 5.2 |  | $198,153 |
Class A Common Stock | 2,066 |  |  | $93.44 |  |  | 5.7 |  | 203,663 |
| 3,435 |  |  | $96.14 |  |  | 5.5 |  | $401,816 |
| Options Exercisable
| Number Exercisable |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (Years) |  | Aggregate Intrinsic Value
Common Stock | 963 |  |  | $76.58 |  |  | 3.9 |  | $162,143 |
Class A Common Stock | 1,323 |  |  | $72.21 |  |  | 4.3 |  | 158,441 |
| 2,286 |  |  | $74.05 |  |  | 4.2 |  | $320,584 |
Information concerning stock options exercised is as follows (in thousands):
| Year ended October 31,
| 2024 |  | 2023 |  | 2022
Cash proceeds from stock option exercises | $7,951 |  |  | $6,713 |  |  | $2,352 |
Tax benefit realized from stock option exercises | 13,558 |  |  | 6,101 |  |  | 17,752 |
Intrinsic value of stock option exercises | 121,532 |  |  | 63,710 |  |  | 86,015 |
Net income from consolidated operations for the fiscal years ended October 31, 2024, 2023 and 2022 includes compensation expense of $18.8 million, $15.5 million and $12.6 million, respectively, and an income tax benefit of $2.4 million, $2.0 million and $1.7 million, respectively, related to the Company’s stock options. Substantially all of the stock option compensation expense was recorded as a component of SG&A expenses in the Company’s Consolidated Statements of Operations. As of October 31, 2024, there was $55.2 million of pre-tax unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted average period of approximately 3.2 years. The total fair value of stock options that vested in fiscal 2024, 2023 and 2022 was $20.1 million, $11.1 million and $14.3 million, respectively. If there were a change in control of the Company, all of the unvested options outstanding as of October 31, 2024 would become immediately exercisable. The fair value of each stock option grant in fiscal 2024, 2023 and 2022 was estimated on the date of grant using the Black-Scholes option-pricing model based on the following weighted average assumptions:
|  | 2024 |  | 2023 |  | 2022
|  | Class A Common Stock |  | Common Stock |  | Class A Common Stock |  | Class A Common Stock
Expected stock price volatility |  | 32.65 | % |  | 31.48 | % |  | 33.59 | % |  | 32.61 | %
Risk-free interest rate |  | 4.20 | % |  | 3.63 | % |  | 3.64 | % |  | 1.72 | %
Dividend yield |  | .16 | % |  | .15 | % |  | .17 | % |  | .18 | %
Forfeiture rate |  | .00 | % |  | .00 | % |  | .00 | % |  | .00 | %
Expected option life (years) |  | 6 |  | 8 |  | 6 |  | 6
Weighted average fair value |  | $63.15 |  | $69.57 |  | $50.90 |  | $41.00

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration