SELECTED FINANCIAL STATEMENT INFORMATION

12 Months Ended

Oct. 31, 2023

Selected Financial Statement Information [Abstract]

Additional Financial Information Disclosure [Text Block]

SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

	As of October 31,
(in thousands)	2023	2022
Accounts receivable	$521,696	$303,181
Less: Allowance for doubtful accounts	(12,621)	(8,333)
Accounts receivable, net	$509,075	$294,848

Inventories

	As of October 31,
(in thousands)	2023	2022
Finished products	$622,395	$285,024
Work in process	79,789	59,739
Materials, parts, assemblies and supplies	311,496	237,708
Inventories, net of valuation reserves	$1,013,680	$582,471

Property, Plant and Equipment

	As of October 31,
(in thousands)	2023	2022
Land	$19,706	$17,579
Buildings and improvements	202,499	148,598
Machinery, equipment and tooling	386,602	322,252
Construction in progress	25,867	14,533
	634,674	502,962
Less: Accumulated depreciation and amortization	(312,826)	(277,083)
Property, plant and equipment, net	$321,848	$225,879

The amounts set forth above include tooling costs having a net book value of $6.5 million and $6.0 million as of October 31, 2023 and 2022, respectively. Amortization expense on capitalized tooling was $2.3 million, $2.5 million and $2.8 million in fiscal 2023, 2022 and 2021, respectively.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $40.3 million, $30.3 million and $27.8 million in fiscal 2023, 2022 and 2021, respectively.

Accrued Expenses and Other Current Liabilities

	As of October 31,
(in thousands)	2023	2022
Accrued employee compensation and related payroll taxes	$181,906	$130,837
Contract liabilities	87,556	58,757
Contingent consideration	37,305	28,849
Accrued customer rebates and credits	24,508	17,938
Current operating lease liabilities	20,503	14,656
Accrued interest	18,705	329
Other	62,618	38,833
Accrued expenses and other current liabilities	$433,101	$290,199

The increase in accrued employee compensation and related payroll taxes principally reflects a higher level of accrued performance-based compensation resulting from the improved consolidated operating results and the impact of our fiscal 2023 acquisitions. See Note 6, Revenue, for additional information pertaining to the increase in contract liabilities. See Note 8, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligations. The increase in accrued interest principally reflects the issuance of senior unsecured notes (see Note 5, Short-Term and Long-Term Debt, for additional information). The total customer rebates and credits deducted within net sales in fiscal 2023, 2022 and 2021 was $9.4 million, $7.6 million and $3.3 million, respectively.

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 2023, 2022 and 2021 totaled $9.2 million, $7.2 million and $7.1 million, respectively. The aggregate liabilities of the LCP were $226.2 million and $203.0 million as of October 31, 2023 and 2022, 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 $233.5 million and $204.7 million as of October 31, 2023 and 2022, 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,
	2023	2022	2021
R&D expenses	$95,773	$76,061	$68,877

Accumulated Other Comprehensive Loss

    Changes in the components of accumulated other comprehensive loss during fiscal 2023 and 2022 are as follows (in thousands):

	Foreign Currency Translation	Defined Benefit Pension Plan	Accumulated Other Comprehensive Loss
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)
Unrealized gain	6,204	59	6,263
Amortization of unrealized loss	—	56	56
Balances as of October 31, 2023	($39,165)	($1,015)	($40,180)