SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable



(in thousands)	April 30, 2018			October 31, 2017
Accounts receivable		$241,665			$225,462
Less: Allowance for doubtful accounts	(3,432		)	(3,006		)
Accounts receivable, net		$238,233			$222,456

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



(in thousands)	April 30, 2018			October 31, 2017
Costs incurred on uncompleted contracts		$36,965			$29,491
Estimated earnings	20,980			19,902
	57,945			49,393
Less: Billings to date	(44,621		)	(41,262		)
		$13,324			$8,131
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)		$15,238			$9,377
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)	(1,914		)	(1,246		)
		$13,324			$8,131

Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the six and three months ended April 30, 2018 and 2017.

Inventories



(in thousands)	April 30, 2018			October 31, 2017
Finished products		$185,987			$173,559
Work in process	45,077			39,986
Materials, parts, assemblies and supplies	149,840			128,031
Contracts in process	2,037			2,415
Less: Billings to date	(272		)	(363		)
Inventories, net of valuation reserves		$382,669			$343,628

Contracts in process represents accumulated capitalized costs associated with fixed price contracts. 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



(in thousands)	April 30, 2018			October 31, 2017
Land		$5,887			$5,435
Buildings and improvements	94,262			91,916
Machinery, equipment and tooling	218,644			191,298
Construction in progress	4,775			5,553
	323,568			294,202
Less: Accumulated depreciation and amortization	(175,454		)	(164,319		)
Property, plant and equipment, net		$148,114			$129,883

Accrued Customer Rebates and Credits

The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $13.4 million as of April 30, 2018 and $12.9 million as of October 31, 2017. The total customer rebates and credits deducted within net sales for the six months ended April 30, 2018 and 2017 was $5.2 million and $5.4 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended April 30, 2018 and 2017 was $2.7 million and $3.0 million, respectively.

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales for the six and three months ended April 30, 2018 and 2017 is as follows (in thousands):



	Six months ended April 30,				Three months ended April 30,
	2018		2017		2018		2017
R&D expenses		$26,660		$22,469		$13,953		$11,223

Redeemable Noncontrolling Interests

The holders of equity interests in certain of the Company's subsidiaries have rights ("Put Rights") that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2025. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands):



	April 30, 2018		October 31, 2017
Redeemable at fair value		$85,039		$82,128
Redeemable based on a multiple of future earnings	48,995		48,995
Redeemable noncontrolling interests		$134,034		$131,123

As discussed in Note 2, Acquisitions, the Company, through a subsidiary of HEICO Electronic, acquired 85% of the assets and business of Sensor Technology in February 2018. As part of the Sensor Technology purchase agreement, the Company has the right to purchase the noncontrolling interest in fiscal 2021, or sooner under certain conditions, and the noncontrolling interest holders have the right to cause the Company to purchase the same equity interest at the same point in time.

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2018 are as follows (in thousands):



	Foreign Currency Translation			Pension Benefit Obligation			Accumulated Other Comprehensive Loss
Balances as of October 31, 2017		($9,533	)		($1,023	)		($10,556	)
Unrealized gain	8,813			221			9,034
Amortization of unrealized loss	—			6			6
Balances as of April 30, 2018		($720	)		($796	)		($1,516	)