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SELECTED FINANCIAL STATEMENT INFORMATION
 12 Months Ended
Oct. 31, 2019
Selected Financial Statement Information [Abstract]  
Additional Financial Information Disclosure [Text Block] SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable
 
 
As of October 31,
(in thousands)
 
2019
 
2018
Accounts receivable
 

$277,992

 

$240,544

Less: Allowance for doubtful accounts
 
(3,666
)
 
(3,258
)
Accounts receivable, net
 

$274,326

 

$237,286


    
Inventories
 
 
As of October 31,
(in thousands)
 
2019
 
2018
Finished products
 

$199,880

 

$192,758

Work in process
 
32,548

 
49,315

Materials, parts, assemblies and supplies
 
187,891

 
158,039

Contracts in process
 
—

 
1,649

Less: Billings to date
 
—

 
(208
)
Inventories, net of valuation reserves
 

$420,319

 

$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
 
 
As of October 31,
(in thousands)
 
2019
 
2018
Land
 

$6,820

 

$5,864

Buildings and improvements
 
116,997

 
101,424

Machinery, equipment and tooling
 
253,127

 
230,108

Construction in progress
 
8,382

 
5,044

 
 
385,326

 
342,440

Less:  Accumulated depreciation and amortization
 
(211,981
)
 
(187,701
)
Property, plant and equipment, net
 

$173,345

 

$154,739



The amounts set forth above include tooling costs having a net book value of $8.8 million and $8.2 million as of October 31, 2019 and 2018, respectively. Amortization expense on capitalized tooling was $3.1 million, $2.8 million and $2.7 million in fiscal 2019, 2018 and 2017, respectively.
The amounts set forth above also include $11.7 million and $11.9 million of assets under capital leases as of October 31, 2019 and October 31, 2018, respectively. Accumulated depreciation associated with assets under capital leases was $2.1 million and $1.5 million as of October 31, 2019 and October 31, 2018, respectively. See Note 5, Long-Term Debt, for additional information pertaining to capital lease obligations.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $25.8 million, $23.2 million and $21.9 million in fiscal 2019, 2018 and 2017, respectively.

Accrued Expenses and Other Current Liabilities
 
 
As of October 31,
(in thousands)
 
2019
 
2018
Accrued employee compensation and related payroll taxes
 

$112,602

 

$97,048

Contract liabilities
 
23,809

 
28,262

Accrued customer rebates and credits
 
17,978

 
16,861

Contingent consideration and other accrued purchase consideration
 
497

 
6,138

Other
 
24,071

 
23,205

Accrued expenses and other current liabilities
 

$178,957

 

$171,514



The increase in accrued employee compensation and related payroll taxes principally reflects a higher level of accrued performance-based compensation expense resulting from the improved consolidated operating results and the impact of our fiscal 2019 acquisitions. The total customer rebates and credits deducted within net sales in fiscal 2019, 2018 and 2017 was $9.0 million, $9.9 million and $11.0 million, respectively.

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 2019, 2018
and 2017 totaled $6.1 million, $5.9 million and $4.6 million, respectively.  The aggregate liabilities of the LCP were $151.1 million and $125.8 million as of October 31, 2019 and 2018, respectively, and are classified within other long-term liabilities in the Company’s Consolidated Balance Sheets.  The assets of the LCP, totaling $151.9 million and $126.8 million as of October 31, 2019 and 2018, respectively, are classified within other assets in the Company's Consolidated Balance Sheets 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. Additional information regarding the assets of the LCP may be found in Note 8, Fair Value Measurements.    

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales is as follows (in thousands):
 
Year ended October 31,
 
2019
 
2018
 
2017
R&D expenses

$66,630

 

$57,450

 

$46,473



Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss during fiscal 2019 and 2018 are as follows (in thousands):
 
Foreign Currency Translation
 
Defined Benefit Pension Plan
 
Accumulated
Other Comprehensive
Loss
Balances as of October 31, 2017

($9,533
)
 

($1,023
)
 

($10,556
)
Unrealized (loss) gain
(4,837
)
 
124

 
(4,713
)
Amortization of unrealized loss
—

 
13

 
13

Balances as of October 31, 2018
(14,370
)
 
(886
)
 
(15,256
)
Unrealized loss
(619
)
 
(889
)
 
(1,508
)
Amortization of unrealized loss
—

 
25

 
25

Balances as of October 31, 2019

($14,989
)
 

($1,750
)
 

($16,739
)