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SELECTED FINANCIAL STATEMENT INFORMATION
12 Months Ended
Oct. 31, 2013
Selected Financial Statement Information [Abstract]  
Selected Financial Statement Information [Text Block]
SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable
 
 
As of October 31,
(in thousands)
 
2013
 
2012
Accounts receivable
 

$160,118

 

$124,548

Less: Allowance for doubtful accounts
 
(3,096
)
 
(2,334
)
Accounts receivable, net
 

$157,022

 

$122,214



Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts
 
 
As of October 31,
(in thousands)
 
2013
 
2012
Costs incurred on uncompleted contracts
 

$22,548

 

$6,673

Estimated earnings
 
25,391

 
6,235

 
 
47,939

 
12,908

Less: Billings to date
 
(40,676
)
 
(7,426
)
 
 

$7,263

 

$5,482

Included in the accompanying Consolidated Balance Sheets under
the following captions:
 
 
 
 
Accounts receivable, net (costs and estimated earnings
in excess of billings)
 

$9,540

 

$5,482

Accrued expenses and other current liabilities (billings
in excess of costs and estimated earnings)
 
(2,277
)
 

 
 

$7,263

 

$5,482



As discussed in Note 2, Acquisitions, the Company acquired Lucix Corporation in October 2013, which recognizes the majority of its revenue using the percentage-of-completion method. The acquired balances of costs incurred on uncompleted contracts, estimated earnings, billings to date, costs and estimated earnings in excess of billings, and billings in excess of costs and estimated earnings were $13.4 million, $15.3 million, $26.5 million, $4.7 million and $2.5 million, respectively,

Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations in fiscal 2013, 2012 or 2011.

Inventories
 
 
As of October 31,
(in thousands)
 
2013
 
2012
Finished products
 

$103,234

 

$93,873

Work in process
 
26,810

 
18,887

Materials, parts, assemblies and supplies
 
79,863

 
69,042

Contracts in process
 
9,941

 
8,299

Less: Billings to date
 
(955
)
 
(397
)
Inventories, net of valuation reserves
 

$218,893

 

$189,704



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)
 
2013
 
2012
Land
 

$4,515

 

$4,505

Buildings and improvements
 
60,105

 
54,322

Machinery, equipment and tooling
 
131,855

 
109,041

Construction in progress
 
4,932

 
5,599

 
 
201,407

 
173,467

Less:  Accumulated depreciation and amortization
 
(103,670
)
 
(92,949
)
Property, plant and equipment, net
 

$97,737

 

$80,518



The amounts set forth above include tooling costs having a net book value of $5.7 million and $6.0 million as of October 31, 2013 and 2012, respectively. Amortization expense on capitalized tooling was $2.2 million, $2.1 million and $2.1 million in fiscal 2013, 2012 and 2011, respectively.

The amounts set forth above also include $5.5 million and $5.2 million of assets under capital leases as of October 31, 2013 and October 31, 2012, respectively. Accumulated depreciation associated with the assets under capital leases was $1.1 million and $.6 million as of October 31, 2013 and October 31, 2012, 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 $13.4 million, $11.6 million and $8.6 million in fiscal 2013, 2012 and 2011, respectively.

Accrued Expenses and Other Current Liabilities
 
 
As of October 31,
(in thousands)
 
2013
 
2012
Accrued employee compensation and related payroll taxes
 

$52,435

 

$41,307

Accrued customer rebates and credits
 
14,787

 
10,833

Deferred revenue
 
11,529

 
6,442

Accrued additional purchase consideration
 
9,142

 
2,917

Other
 
17,841

 
14,742

Accrued expenses and other current liabilities
 

$105,734

 

$76,241



The increase in accrued employee compensation and related payroll taxes principally reflects a higher level of accrued performance awards based on the improved consolidated operating results. The total customer rebates and credits deducted within net sales in fiscal 2013, 2012 and 2011 was $8.3 million, $2.8 million and $8.7 million, respectively. The principal reason why the amount of customer rebates and credits deducted within net sales in fiscal 2012 is less than it was in fiscal 2013 and 2011 is fiscal 2012 reflected a reduction in the net sales volume of certain customers eligible for rebates as well as a reduction in the associated rebate percentages. The increase in accrued additional purchase consideration principally reflects the estimated amount of contingent consideration related to a fiscal 2013 acquisition. See Note 7, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligations.

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 LCP, and, when distributable, are distributed in actual shares of Company common stock.  The LCP 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 LCP charged to income in fiscal 2013, 2012 and 2011 totaled $4.3 million, $3.8 million and $3.6 million, respectively.  The aggregate liabilities of the LCP were $51.9 million and $36.5 million as of October 31, 2013 and 2012, respectively, and are classified within other long-term liabilities in the Company’s Consolidated Balance Sheets.  The assets of the LCP, totaling $52.7 million and $37.1 million as of October 31, 2013 and 2012, 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 $5.0 million and $4.2 million as of October 31, 2013 and 2012, 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, 2013 and 2012, 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.