LEASES

12 Months Ended

Oct. 31, 2023

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 short-term debt 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,
	2023	2022	2023	2022
Right-of-use assets	$121,373	$89,752	$26,608	$15,786
Current lease liabilities	$20,503	$14,656	$4,254	$1,620
Long-term lease liabilities	104,759	76,965	23,564	13,376
Total lease liabilities	$125,262	$91,621	$27,818	$14,996

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 2023 and 2022 (in thousands):    

	Year ended October 31,
	2023	2022
Operating Leases:
Operating lease expense	$24,192	$19,877
Variable lease expense	4,047	3,552
Total operating lease expense (1)	$28,239	$23,429
Finance Leases:
Amortization of finance lease ROU assets	$3,026	$1,540
Interest on finance lease liabilities	1,211	578
Variable lease expense	617	319
Total finance lease expense	$4,854	$2,437

(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, 2023 for the next five fiscal years and thereafter (in thousands):

	Operating Leases	Finance Leases
Year ending October 31,
2024	$27,034	$5,625
2025	26,882	5,274
2026	22,976	4,632
2027	19,344	4,535
2028	13,744	4,113
Thereafter	44,337	9,994
Total minimum lease payments	154,317	34,173
Less: imputed interest	(29,055)	(6,355)
Present value of minimum lease payments	$125,262	$27,818

The Company does not have any material leases that have been signed but have yet to commence as of October 31, 2023.

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,
	2023		2022		2023		2022
Weighted average remaining lease term (years)	7.1		7.9		7.5		9.0
Weighted average discount rate	6.2	%	5.4	%	6.1	%	5.5	%

The following table presents supplemental disclosures of cash flow information associated with the Company's leases for fiscal 2023 and 2022 (in thousands):

	Operating Leases As of October 31,		Finance Leases As of October 31,
	2023	2022	2023	2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$22,058	$19,323	$1,211	$578
Financing cash flows	—	—	2,663	1,568
Right-of-use assets obtained in exchange for new lease liabilities, net of terminations	26,271	31,865	5	5,373