LEASES

12 Months Ended

Oct. 31, 2021

Leases [Abstract]

Lessee, Operating Leases

LEASES

    HEICO’s lease ROU assets represent its right to use an underlying asset during the lease term and its lease liabilities represent the Company’s obligation to make lease payments arising from the lease. HEICO’s operating lease ROU assets are included within other assets and its operating lease liabilities are included within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheet. HEICO's finance lease ROU assets are included within property, plant and equipment, net and its finance lease liabilities are included within long-term debt, net of current maturities and current maturities of long-term debt within the Company's Consolidated Balance Sheet. The following table presents the Company’s lease ROU assets and lease liabilities (in thousands):

	Operating Leases As of October 31,		Finance Leases As of October 31,
	2021	2020	2021	2020
Right-of-use assets	$74,609	$57,103	$12,250	$10,512
Current lease liabilities	$13,874	$14,180	$1,481	$1,034
Long-term lease liabilities	61,829	44,114	9,764	8,533
Total lease liabilities	$75,703	$58,294	$11,245	$9,567

The Company’s operating lease expenses are recorded within cost of sales and/or SG&A expenses in the Company’s Consolidated Statements of Operations. The Company's finance lease expenses consist of amortization of ROU assets and interest on lease liabilities, which are included within cost of sales and/or SG&A expenses, and interest expense, respectively, in the Company's Consolidated Statements of Operations. Further, interest expense on finance leases is recognized using the effective interest method based on the discount rate determined at lease commencement. The following table presents the components of lease expense for fiscal 2021 and 2020 (in thousands):    

	Year ended October 31,
	2021	2020
Operating Leases:
Operating lease expense	$18,103	$17,317
Variable lease expense	3,165	3,225
Total operating lease expense (1)	$21,268	$20,542
Finance Leases:
Amortization on finance lease ROU assets	$1,110	$874
Interest on finance lease liabilities	453	416
Variable lease expense	750	—
Total finance lease expense	$2,313	$1,290

(1)    Excludes short-term lease expense, which is not material.

The following table presents a maturity analysis of the Company's lease liabilities as of October 31, 2021 for the next five fiscal years and thereafter (in thousands):

	Operating Leases	Finance Leases
Year ending October 31,
2022	$16,853	$1,956
2023	12,729	1,629
2024	9,785	1,521
2025	8,662	1,458
2026	7,153	1,440
Thereafter	39,113	5,806
Total minimum lease payments	94,295	13,810
Less: imputed interest	(18,592)	(2,565)
Present value of minimum lease payments	$75,703	$11,245

The Company does not have any material leases that have been signed but have yet to commence as of October 31, 2021.

The following table presents the weighted average remaining lease term and discount rate of the Company’s leases:

	Operating Leases As of October 31,				Finance Leases As of October 31,
	2021		2020		2021		2020
Weighted average remaining lease term (years)	9.1		7.0		9.2		10.8
Weighted average discount rate	4.7	%	5.1	%	4.6	%	4.5	%

The following table presents supplemental disclosures of cash flow information associated with the Company's leases for fiscal 2021 and 2020 (in thousands):

	Operating Leases As of October 31,		Finance Leases As of October 31,
	2021	2020	2021	2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$17,999	$16,965	$453	$416
Financing cash flows	—	—	1,187	921
Right-of-use assets obtained in exchange for new lease liabilities, net of terminations	31,351	8,648	2,861	1,808

Prior to the adoption of ASC 842, total rent expense charged to operations for operating leases in fiscal 2019 amounted to $20.0 million.