XML 22 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
SELECTED FINANCIAL STATEMENT INFORMATION
 9 Months Ended
Jul. 31, 2018
Selected Financial Statement Information [Abstract]  
Selected Financial Statement Information [Text Block] SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable
(in thousands)
 
July 31, 2018
 
October 31, 2017
Accounts receivable
 

$252,885

 

$225,462

Less: Allowance for doubtful accounts
 
(3,559
)
 
(3,006
)
Accounts receivable, net
 

$249,326

 

$222,456



Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts
(in thousands)
 
July 31, 2018
 
October 31, 2017
Costs incurred on uncompleted contracts
 

$33,848

 

$29,491

Estimated earnings
 
16,565

 
19,902

 
 
50,413

 
49,393

Less: Billings to date
 
(37,334
)
 
(41,262
)


 

$13,079

 

$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)
 

$14,649

 

$9,377

Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)
 
(1,570
)
 
(1,246
)
 
 

$13,079

 

$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 nine and three months ended July 31, 2018 and 2017.


Inventories
(in thousands)
 
July 31, 2018
 
October 31, 2017
Finished products
 

$189,145

 

$173,559

Work in process
 
48,068

 
39,986

Materials, parts, assemblies and supplies
 
152,458

 
128,031

Contracts in process
 
2,171

 
2,415

Less: Billings to date
 
(54
)
 
(363
)
Inventories, net of valuation reserves
 

$391,788

 

$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)
 
July 31, 2018
 
October 31, 2017
Land
 

$5,875

 

$5,435

Buildings and improvements
 
101,128

 
91,916

Machinery, equipment and tooling
 
222,502

 
191,298

Construction in progress
 
5,569

 
5,553

 
 
335,074

 
294,202

Less: Accumulated depreciation and amortization
 
(180,460
)
 
(164,319
)
Property, plant and equipment, net
 

$154,614

 

$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 $15.1 million as of July 31, 2018 and $12.9 million as of October 31, 2017. The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2018 and 2017 was $7.7 million and $8.1 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended July 31, 2018 and 2017 was $2.5 million and $2.7 million, respectively.

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales for the nine and three months ended July 31, 2018 and 2017 is as follows (in thousands):
 
 
Nine months ended July 31,
 
Three months ended July 31,
 
 
2018
 
2017
 
2018
 
2017
R&D expenses
 

$40,680

 

$33,889

 

$14,020

 

$11,420



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):
 
 
July 31, 2018
 
October 31, 2017
Redeemable at fair value
 

$84,604

 

$82,128

Redeemable based on a multiple of future earnings
 
48,995

 
48,995

Redeemable noncontrolling interests
 

$133,599

 

$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 nine months ended July 31, 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
 
1,137

 
221

 
1,358

Amortization of unrealized loss
 
—

 
11

 
11

Balances as of July 31, 2018
 

($8,396
)
 

($791
)
 

($9,187
)