XML 30 R19.htm IDEA: XBRL DOCUMENT v3.21.1
COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Apr. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block] COMMITMENTS AND CONTINGENCIES
Guarantees

As of April 30, 2021, the Company has arranged for standby letters of credit aggregating $17.0 million, which are supported by its revolving credit facility and principally pertain to performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries as well as payment guarantees related to potential workers' compensation claims and a facility lease.

Product Warranty

Changes in the Company’s product warranty liability for the six months ended April 30, 2021 and 2020, respectively, are as follows (in thousands):
Six months ended April 30,
20212020
Balances as of beginning of fiscal year$3,015 $2,810 
Accruals for warranties1,027 1,194 
Acquired warranty liabilities— 50 
Warranty claims settled(781)(952)
Balances as of April 30$3,261 $3,102 

Litigation

On April 20, 2021, Rocky Mountain Hydrostatics, LLC (“RMH”), an indirect subsidiary of HEICO Flight Support Corp. which was acquired in June 2020, received a grand jury subpoena from the United States District Court for the Southern District of California requiring the production of documents for the time period December 1, 2017 through February 4, 2019 related to RMH’s employment of a certain individual and its performance of work on certain Navy vessels during that time period. RMH is cooperating with the investigation and is currently gathering documents for production pursuant to the subpoena. At this early stage in the investigation, the Company cannot predict the outcome of the investigation or when the investigation will ultimately be resolved; nor can the Company reasonably estimate the possible range of loss or impact to the RMH business, if any, that may result from this matter.
With the exception of the matter noted above, the Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows.