SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable



	As of October 31,
(in thousands)	2012			2011
Accounts receivable		$124,548			$109,081
Less: Allowance for doubtful accounts	(2,334		)	(2,667		)
Accounts receivable, net		$122,214			$106,414

Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts



	As of October 31,
(in thousands)	2012			2011
Costs incurred on uncompleted contracts		$6,673			$4,443
Estimated earnings	6,235			4,206
	12,908			8,649
Less: Billings to date	(7,426		)	(4,876		)
Included in the accompanying Consolidated Balance Sheets under the caption "Accounts receivable, net" (costs and estimated earnings in excess of billings)		$5,482			$3,773

The percentage of the Company’s net sales recognized under the percentage-of-completion method was not material in fiscal 2012, 2011 or 2010. Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations in fiscal 2012, 2011 or 2010.

Inventories



	As of October 31,
(in thousands)	2012			2011
Finished products		$93,873			$86,487
Work in process	18,887			19,708
Materials, parts, assemblies and supplies	69,042			52,173
Contracts in process	8,299			8,291
Less: Billings to date	(397		)	(1,692		)
Inventories, net of valuation reserves		$189,704			$164,967

Contracts in process represents accumulated capitalized costs associated with fixed price contracts for which revenue is recognized on the completed-contract method. Related progress billings and customer advances (“billings to date”) are classified as a reduction to contracts in process, if any, and any excess is included in accrued expenses and other liabilities.

Property, Plant and Equipment



	As of October 31,
(in thousands)	2012			2011
Land		$4,505			$3,825
Buildings and improvements	54,322			46,892
Machinery, equipment and tooling	109,041			94,297
Construction in progress	5,599			3,671
	173,467			148,685
Less: Accumulated depreciation and amortization	(92,949		)	(81,611		)
Property, plant and equipment, net		$80,518			$67,074

The amounts set forth above include tooling costs having a net book value of $6.0 million and $3.9 million as of October 31, 2012 and 2011, respectively. Amortization expense on capitalized tooling was $2.1 million, $2.1 million and $1.9 million for fiscal 2012, 2011 and 2010, respectively.

The amounts set forth above also include $5.2 million and $4.3 million of assets under capital leases as of October 31, 2012 and October 31, 2011, respectively. Accumulated depreciation associated with the assets under capital leases was $.6 million and less than $.1 million as of October 31, 2012 and October 31, 2011, respectively. See Note 5, Long-Term Debt, for additional information pertaining to these capital lease obligations.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $11.6 million, $8.6 million and $8.7 million for fiscal 2012, 2011 and 2010, respectively.

Accrued Expenses and Other Current Liabilities



	As of October 31,
(in thousands)	2012		2011
Accrued employee compensation and related payroll taxes		$41,307		$39,330
Accrued customer rebates and credits	10,833		9,595
Accrued additional purchase consideration	2,917		11,016
Deferred revenue	6,442		3,195
Other	14,742		13,240
Accrued expenses and other current liabilities		$76,241		$76,376

The total customer rebates and credits deducted within net sales for the fiscal years ended October 31, 2012, 2011 and 2010 was $2.8 million, $8.7 million and $8.9 million, respectively.

The decrease in customer rebates and credits principally reflects a reduction in the net sales volume of certain customers eligible for rebates as well as a reduction in associated rebate percentages.

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 (“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 Plan, and, when distributable, are distributed in actual shares of Company common stock. The Plan does not provide for diversification of a director’s assets allocated to 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 Plan charged to income in fiscal 2012, 2011 and 2010 totaled $3.8 million, $3.6 million and $2.9 million, respectively. The aggregate liabilities of the LCP were $36.5 million and $26.7 million as of October 31, 2012 and 2011, respectively, and are classified within other long-term liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $37.1 million and $27.0 million as of October 31, 2012 and 2011, respectively, are classified within other assets 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 under the LCP.

Other long-term liabilities also includes deferred compensation of $4.2 million and $4.1 million as of October 31, 2012 and 2011, respectively, principally related to elective deferrals of salary and bonuses under a Company sponsored non-qualified deferred compensation plan available to selected employees. The Company makes no contributions to this plan. The assets of this plan, which equaled the deferred compensation liability as of October 31, 2012 and 2011, respectively, are held within an irrevocable trust and classified within other assets in the Company’s Consolidated Balance Sheets. Additional information regarding the assets of this deferred compensation plan and the LCP may be found in Note 7, Fair Value Measurements.