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SELECTED FINANCIAL STATEMENT INFORMATION
 6 Months Ended
Apr. 30, 2019
Selected Financial Statement Information [Abstract]  
Selected Financial Statement Information [Text Block] SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable
(in thousands)
 
April 30, 2019
 
October 31, 2018
Accounts receivable
 

$263,166

 

$240,544

Less: Allowance for doubtful accounts
 
(3,696
)
 
(3,258
)
Accounts receivable, net
 

$259,470

 

$237,286



Inventories
(in thousands)
 
April 30, 2019
 
October 31, 2018
Finished products
 

$200,182

 

$192,758

Work in process
 
37,260

 
49,315

Materials, parts, assemblies and supplies
 
172,886

 
158,039

Contracts in process
 
—

 
1,649

Less: Billings to date
 
—

 
(208
)
Inventories, net of valuation reserves
 

$410,328

 

$401,553


Prior to the adoption of ASC 606, contracts in process represented accumulated capitalized costs associated with fixed price contracts. Additionally, related progress billings and customer advances (“billings to date”) were classified as a reduction to contracts in process, if any, and any excess was included in accrued expenses and other liabilities. See Note 1, Summary of Significant Accounting Policies - New Accounting Pronouncements, and Note 6, Revenue, for additional information pertaining to the adoption of ASC 606.

Property, Plant and Equipment
(in thousands)
 
April 30, 2019
 
October 31, 2018
Land
 

$7,298

 

$5,864

Buildings and improvements
 
112,169

 
101,424

Machinery, equipment and tooling
 
241,107

 
230,108

Construction in progress
 
7,250

 
5,044

 
 
367,824

 
342,440

Less: Accumulated depreciation and amortization
 
(198,032
)
 
(187,701
)
Property, plant and equipment, net
 

$169,792

 

$154,739



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 $15.3 million as of April 30, 2019 and $16.9 million as of October 31, 2018. The total customer rebates and credits deducted within net sales for the six months ended April 30, 2019 and 2018 was $3.6 million and $5.2 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended April 30, 2019 and 2018 was $2.2 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 six and three months ended April 30, 2019 and 2018 is as follows (in thousands):
 
 
Six months ended April 30,
 
Three months ended April 30,
 
 
2019
 
2018
 
2019
 
2018
R&D expenses
 

$32,049

 

$26,660

 

$16,849

 

$13,953



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 2029. 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, 2019
 
October 31, 2018
Redeemable at fair value
 

$102,928

 

$83,524

Redeemable based on a multiple of future earnings
 
48,522

 
48,522

Redeemable noncontrolling interests
 

$151,450

 

$132,046



As discussed in Note 2, Acquisitions, the Company, through the FSG, acquired 80.1% of the membership interests of Decavo in February 2019. As part of the Decavo operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interests over a four-year period beginning in fiscal 2026, or sooner under certain conditions, and the Company has the right to purchase the same equity interests over the same period.

As discussed in Note 2, Acquisitions, the Company, through HEICO Electronic, acquired 85% of the stock of SST in February 2019. As part of the SST shareholders' agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interests over a four-year period beginning in fiscal 2024, or sooner under certain conditions, and the Company has the right to purchase the same equity interests over the same period.

As discussed in Note 2, Acquisitions, the Company, through the ETG, acquired 92.7% of the stock of Apex in November 2018. As part of the Apex shareholders' agreement, the noncontrolling interest holders have the right to cause the Company to purchase their equity interests over a four-year period beginning in fiscal 2023, or sooner under certain conditions, and the Company has the right to purchase the same equity interests over the same period.

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2019 are as follows (in thousands):
 
 
Foreign Currency Translation
 
Pension Benefit Obligation
 
Accumulated
Other
Comprehensive Loss
Balances as of October 31, 2018
 

($14,370
)
 

($886
)
 

($15,256
)
Unrealized loss
 
(1,108
)
 
—

 
(1,108
)
Amortization of unrealized loss
 
—

 
12

 
12

Balances as of April 30, 2019
 

($15,478
)
 

($874
)
 

($16,352
)