SELECTED FINANCIAL STATEMENT INFORMATION

12 Months Ended

Oct. 31, 2024

Selected Financial Statement Information [Abstract]

Additional Financial Information Disclosure [Text Block]

SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable


	As of October 31,
(in thousands)	2024	2023
Accounts receivable	$550,281	$521,696
Less: Allowance for doubtful accounts	(11,794)	(12,621)
Accounts receivable, net	$538,487	$509,075

Inventories


	As of October 31,
(in thousands)	2024	2023
Finished products	$684,578	$622,395
Work in process	99,107	79,789
Materials, parts, assemblies and supplies	387,264	311,496
Inventories, net of valuation reserves	$1,170,949	$1,013,680

Property, Plant and Equipment


	As of October 31,
(in thousands)	2024	2023
Land	$19,974	$19,706
Buildings and improvements	217,554	202,499
Machinery, equipment and tooling	422,500	386,602
Construction in progress	35,432	25,867
	695,460	634,674
Less: Accumulated depreciation and amortization	(356,426)	(312,826)
Property, plant and equipment, net	$339,034	$321,848

The amounts set forth above include tooling costs having a net book value of $7.0 million and $6.5 million as of October 31, 2024 and 2023, respectively. Amortization expense on capitalized tooling was $2.3 million, $2.3 million and $2.5 million in fiscal 2024, 2023 and 2022, respectively.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $49.1 million, $40.3 million and $30.3 million in fiscal 2024, 2023 and 2022, respectively.

Accrued Expenses and Other Current Liabilities


	As of October 31,
(in thousands)	2024	2023
Accrued employee compensation and related payroll taxes	$202,273	$181,906
Contract liabilities	83,903	87,556
Accrued customer rebates and credits	24,291	24,508
Current operating lease liabilities	23,422	20,503
Accrued interest	17,462	18,705
Contingent consideration	8,437	37,305
Other	67,993	62,618
Accrued expenses and other current liabilities	$427,781	$433,101

The increase in accrued employee compensation and related payroll taxes principally reflects a higher level of accrued performance-based compensation resulting from the improved consolidated operating results. See Note 8, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligations. The total customer rebates and credits deducted within net sales in fiscal 2024, 2023 and 2022 was $12.0 million, $9.4 million and $7.6 million, respectively.

Other Long-Term Assets and Liabilities

The Company provides eligible employees, officers and directors of the Company the opportunity to voluntarily defer base salary, bonus payments, commissions, long-term incentive awards and directors fees, as applicable, on a pre-tax basis through the HEICO Corporation Leadership Compensation Plan (the “LCP”), a nonqualified deferred compensation plan that conforms to Section 409A of the Internal Revenue Code. The Company matches 50% of the first 6% of base salary deferred by each participant. Director fees that would otherwise be payable in Company common stock may be deferred into the LCP, and, when distributable, are distributed in actual shares of Company common stock. The deferred compensation obligation associated with Company common stock is recorded as a component of shareholders’ equity at cost and subsequent changes in fair value are not reflected in operations or shareholders’ equity of the Company. Further, while the Company has no obligation to do so, the LCP also provides the Company the opportunity to make discretionary contributions. The Company’s matching contributions and any discretionary contributions are subject to vesting and forfeiture provisions set forth in the LCP. Company contributions to the LCP charged to income in fiscal 2024, 2023 and 2022 totaled $11.1 million, $9.2 million and $7.2 million, respectively. The aggregate liabilities of the LCP were $315.0 million and $226.2 million as of October 31, 2024 and 2023, respectively, and are classified within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $317.2 million and $233.5 million as of October 31, 2024 and 2023, respectively, are classified within other assets in the Company's Consolidated Balance Sheets and principally represent cash surrender values of life insurance policies that are held within an irrevocable trust

that may be used to satisfy the obligations of the LCP. Additional information regarding the assets of the LCP may be found in Note 8, Fair Value Measurements.

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales is as follows (in thousands):


	Year ended October 31,
	2024	2023	2022
R&D expenses	$111,265	$95,773	$76,061

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss during fiscal 2024 and 2023 are as follows (in thousands):


	Foreign Currency Translation	Defined Benefit Pension Plan	Accumulated Other Comprehensive Loss
Balances as of October 31, 2022	($45,369)	($1,130)	($46,499)
Unrealized gain	6,204	59	6,263
Amortization of unrealized loss	—	56	56
Balances as of October 31, 2023	(39,165)	(1,015)	(40,180)
Unrealized gain	13,498	554	14,052
Amortization of unrealized loss	—	52	52
Balances as of October 31, 2024	($25,667)	($409)	($26,076)