SELECTED FINANCIAL STATEMENT INFORMATION

6 Months Ended

Apr. 30, 2020

Selected Financial Statement Information [Abstract]

Selected Financial Statement Information [Text Block]

SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

(in thousands)	April 30, 2020	October 31, 2019
Accounts receivable	$235,154	$277,992
Less: Allowance for doubtful accounts	(4,270)	(3,666)
Accounts receivable, net	$230,884	$274,326

Inventories

(in thousands)	April 30, 2020	October 31, 2019
Finished products	$221,338	$199,880
Work in process	40,629	32,548
Materials, parts, assemblies and supplies	195,852	187,891
Inventories, net of valuation reserves	$457,819	$420,319

Property, Plant and Equipment

(in thousands)	April 30, 2020	October 31, 2019
Land	$6,817	$6,820
Buildings and improvements	118,933	116,997
Machinery, equipment and tooling	260,153	253,127
Construction in progress	10,380	8,382
	396,283	385,326
Less: Accumulated depreciation and amortization	(224,884)	(211,981)
Property, plant and equipment, net	$171,399	$173,345

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 $18.0 million as of April 30, 2020 and October 31, 2019. The total customer rebates and credits deducted within net sales for the six months ended April 30, 2020 and 2019 was $3.8 million and $3.6 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended April 30, 2020 and 2019 was $1.7 million and $2.2 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, 2020 and 2019 is as follows (in thousands):

	Six months ended April 30,		Three months ended April 30,
	2020	2019	2020	2019
R&D expenses	$33,855	$32,049	$16,752	$16,849

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, 2020	October 31, 2019
Redeemable at fair value	$144,854	$136,611
Redeemable based on a multiple of future earnings	51,653	51,653
Redeemable noncontrolling interests	$196,507	$188,264

As discussed in Note 2, Acquisitions, the Company, through HEICO Electronic, acquired 80.1% of the stock of Quell in December 2019. As part of the 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 2025, 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, 2020 are as follows (in thousands):

	Foreign Currency Translation	Defined Benefit Pension Plan	Accumulated Other Comprehensive Loss
Balances as of October 31, 2019	($14,989)	($1,750)	($16,739)
Unrealized loss	(7,104)	—	(7,104)
Amortization of unrealized loss	—	39	39
Balances as of April 30, 2020	($22,093)	($1,711)	($23,804)