SELECTED FINANCIAL STATEMENT INFORMATION

12 Months Ended

Oct. 31, 2011

Selected Financial Statement Information [Abstract]

Selected Financial Statement Information [Text Block]

3.  SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

	As of October 31,
	2011			2010
Accounts receivable	$	109,081,000		$	94,283,000
Less:  Allowance for doubtful accounts		(2,667,000	)		(2,468,000	)
Accounts receivable, net	$	106,414,000		$	91,815,000

Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts

	As of October 31,
	2011			2010
Costs incurred on uncompleted contracts	$	4,443,000		$	6,323,000
Estimated earnings		4,206,000			7,603,000
		8,649,000			13,926,000
Less:  Billings to date		(4,876,000	)		(8,967,000	)
	$	3,773,000		$	4,959,000
Included in the accompanying Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)	$	3,773,000		$	5,135,000
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)		—			(176,000	)
	$	3,773,000		$	4,959,000

The percentage of the Company’s net sales recognized under the percentage-of-completion method was not material in fiscal years 2011, 2010 and 2009.  Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations in fiscal 2011, 2010 or 2009.

Inventories

	As of October 31,
	2011			2010
Finished products	$	86,487,000		$	72,263,000
Work in process		19,708,000			13,739,000
Materials, parts, assemblies and supplies		52,173,000			46,918,000
Contracts in process		8,291,000			5,295,000
Less: Billings to date		(1,692,000	)		—
Inventories, net of valuation reserves	$	164,967,000		$	138,215,000

Contracts in process represents accumulated capitalized costs associated with fixed price contracts for which revenue is recognized on the completed-contract method.  Related progress billings and customer advances (“billings to date”) are classified as a reduction to contracts in process, if any, and any excess is included in accrued expenses and other liabilities.

Property, Plant and Equipment

	As of October 31,
	2011			2010
Land	$	3,825,000		$	3,656,000
Buildings and improvements		46,892,000			38,772,000
Machinery, equipment and tooling		94,297,000			85,095,000
Construction in progress		3,671,000			6,319,000
		148,685,000			133,842,000
Less:  Accumulated depreciation and amortization		(81,611,000	)		(74,839,000	)
Property, plant and equipment, net	$	67,074,000		$	59,003,000

The amounts set forth above also include tooling costs having a net book value of $3,875,000 and $4,479,000 as of October 31, 2011 and 2010, respectively.  Amortization expense on capitalized tooling was $2,066,000, $1,857,000 and $1,825,000 for the fiscal years ended October 31, 2011, 2010 and 2009, respectively.  Expenditures for capitalized tooling costs were $1,948,000, $1,750,000 and $2,193,000 in fiscal 2011, 2010 and 2009, respectively.  Additionally, the amounts set forth above include $4,092,000 in buildings and improvements and $170,000 in land as of October 31, 2011 that are under a capital lease.  Accumulated depreciation associated with the assets under the capital lease was $13,000 as of October 31, 2011.  See Note 5, Long-Term Debt, for additional information pertaining to this capital lease obligation.

Depreciation and amortization expense, exclusive of tooling, on property, plant and equipment was $8,640,000, $8,668,000 and $8,365,000 for the fiscal years ended October 31, 2011, 2010 and 2009, respectively.

Accrued Expenses and Other Current Liabilities

	As of October 31,
	2011		2010
Accrued employee compensation and related payroll taxes	$	39,330,000	$	26,556,000
Accrued customer rebates and credits		9,595,000		9,230,000
Accrued additional purchase consideration		11,016,000		4,104,000
Other		16,435,000		12,211,000
Accrued expenses and other current liabilities	$	76,376,000	$	52,101,000

The increase in accrued employee compensation and related payroll taxes as of October 31, 2011 compared to October 31, 2010 reflects a higher level of accrued performance awards based on the improved consolidated operating results and such accrued expenses related to the fiscal 2011 acquisitions.

The total customer rebates and credits deducted within net sales for the fiscal years ended October 31, 2011, 2010 and 2009 was $8,696,000, $8,866,000 and $8,315,000, 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 (“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 Plan, and, when distributable, are distributed in actual shares of Company common stock.  The Plan does not provide for diversification of a director’s assets allocated to 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 Plan charged to income in fiscal 2011, 2010 and 2009 totaled $3,612,000, $2,862,000 and $2,195,000, respectively.  The aggregate liabilities of the LCP were $26,678,000 and $22,223,000 as of October 31, 2011 and 2010, respectively, and are classified within other long-term liabilities in the Company’s Consolidated Balance Sheets.  The assets of the LCP, totaling $26,992,000 and $22,604,000 as of October 31, 2011 and 2010, respectively, are classified within other assets 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 under the LCP.

Other long-term liabilities also includes deferred compensation of $4,095,000 and $4,283,000 as of October 31, 2011 and 2010, respectively, principally related to elective deferrals of salary and bonuses under a Company sponsored non-qualified deferred compensation plan available to selected employees.  The Company makes no contributions to this plan.  The assets of this plan, which equaled the deferred compensation liability as of October 31, 2011 and 2010, respectively, are held within an irrevocable trust and classified within other assets in the Company’s Consolidated Balance Sheets.  Additional information regarding the assets of this deferred compensation plan and the LCP may be found in Note 7, Fair Value Measurements.