LEASES

12 Months Ended

Oct. 31, 2022

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,
	2022	2021	2022	2021
Right-of-use assets	$89,752	$74,609	$15,786	$12,250
Current lease liabilities	$14,656	$13,874	$1,620	$1,481
Long-term lease liabilities	76,965	61,829	13,376	9,764
Total lease liabilities	$91,621	$75,703	$14,996	$11,245

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 2022 and 2021 (in thousands):    

	Year ended October 31,
	2022	2021
Operating Leases:
Operating lease expense	$19,877	$18,103
Variable lease expense	3,552	3,165
Total operating lease expense (1)	$23,429	$21,268
Finance Leases:
Amortization on finance lease ROU assets	$1,540	$1,110
Interest on finance lease liabilities	578	453
Variable lease expense	319	750
Total finance lease expense	$2,437	$2,313

(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, 2022 for the next five fiscal years and thereafter (in thousands):

	Operating Leases	Finance Leases
Year ending October 31,
2023	$18,925	$2,389
2024	17,549	2,283
2025	16,240	2,197
2026	12,941	2,177
2027	9,859	2,043
Thereafter	37,305	7,959
Total minimum lease payments	112,819	19,048
Less: imputed interest	(21,198)	(4,052)
Present value of minimum lease payments	$91,621	$14,996

The Company does not have any material leases that have been signed but have yet to commence as of October 31, 2022.

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,
	2022		2021		2022		2021
Weighted average remaining lease term (years)	7.9		9.1		9.0		9.2
Weighted average discount rate	5.4	%	4.7	%	5.5	%	4.6	%

The following table presents supplemental disclosures of cash flow information associated with the Company's leases for fiscal 2022 and 2021 (in thousands):

	Operating Leases As of October 31,		Finance Leases As of October 31,
	2022	2021	2022	2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$19,323	$17,999	$578	$453
Financing cash flows	—	—	1,568	1,187
Right-of-use assets obtained in exchange for new lease liabilities, net of terminations	31,865	31,351	5,373	2,861