SELECTED FINANCIAL STATEMENT INFORMATION

12 Months Ended

Oct. 31, 2022

Selected Financial Statement Information [Abstract]

Additional Financial Information Disclosure [Text Block]

SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

	As of October 31,
(in thousands)	2022	2021
Accounts receivable	$303,181	$255,793
Less: Allowance for doubtful accounts	(8,333)	(10,874)
Accounts receivable, net	$294,848	$244,919

Inventories

	As of October 31,
(in thousands)	2022	2021
Finished products	$285,024	$238,867
Work in process	59,739	44,887
Materials, parts, assemblies and supplies	237,708	194,296
Inventories, net of valuation reserves	$582,471	$478,050

Property, Plant and Equipment

	As of October 31,
(in thousands)	2022	2021
Land	$17,579	$11,363
Buildings and improvements	148,598	134,150
Machinery, equipment and tooling	322,252	297,297
Construction in progress	14,533	7,784
	502,962	450,594
Less: Accumulated depreciation and amortization	(277,083)	(256,956)
Property, plant and equipment, net	$225,879	$193,638

The amounts set forth above include tooling costs having a net book value of $6.0 million and $6.8 million as of October 31, 2022 and 2021, respectively. Amortization expense on capitalized tooling was $2.5 million, $2.8 million and $3.2 million in fiscal 2022, 2021 and 2020, respectively.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $30.3 million, $27.8 million and $27.1 million in fiscal 2022, 2021 and 2020, respectively.

Accrued Expenses and Other Current Liabilities

	As of October 31,
(in thousands)	2022	2021
Accrued employee compensation and related payroll taxes	$130,837	$121,200
Contract liabilities	58,757	32,738
Contingent consideration	28,849	—
Accrued customer rebates and credits	17,938	13,237
Current operating lease liabilities	14,656	13,874
Other	39,162	25,808
Accrued expenses and other current liabilities	$290,199	$206,857

The increase in contingent consideration reflects the current portion of contingent consideration pertaining to subsidiaries acquired by the ETG in fiscal 2017 and fiscal 2020 (see Note 8, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligations). See Note 6, Revenue, for additional information pertaining to the increase in contract liabilities. The total customer rebates and credits deducted within net sales in fiscal 2022, 2021 and 2020 was $7.6 million, $3.3 million and $4.6 million, respectively. The increase in total customer rebates and credits deducted within net sales in fiscal 2022 principally reflects an increase in the net sales volume of certain commercial aerospace customers eligible for rebates mainly resulting from the fiscal 2022 net sales growth.

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 (the “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 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 2022, 2021 and 2020 totaled $7.2 million, $7.1 million and $4.7 million, respectively. The aggregate liabilities of the LCP were $203.0 million and $244.3 million as of October 31, 2022 and 2021, respectively, and are classified within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. The assets of the LCP, totaling $204.7 million and $245.6 million as of October 31, 2022 and 2021, 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 of 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,
	2022	2021	2020
R&D expenses	$76,061	$68,877	$65,559

Accumulated Other Comprehensive Loss

    Changes in the components of accumulated other comprehensive loss during fiscal 2022 and 2021 are as follows (in thousands):

	Foreign Currency Translation	Defined Benefit Pension Plan	Accumulated Other Comprehensive Loss
Balances as of October 31, 2020	($6,460)	($2,689)	($9,149)
Unrealized (loss) gain	(529)	991	462
Amortization of unrealized loss	—	135	135
Balances as of October 31, 2021	(6,989)	(1,563)	(8,552)
Unrealized (loss) gain	(38,380)	368	(38,012)
Amortization of unrealized loss	—	65	65
Balances as of October 31, 2022	($45,369)	($1,130)	($46,499)