Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 45

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 8
Chunk 45
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161,877 68,749 57,812 Total net sales1,028,345 927,393 355,863 322,129 Intersegment sales (35,617)(30,963)(10,933)(11,509)Total consolidated net sales$3,275,633 $2,844,004 $1,147,591 $992,246 (1)    Principally industrial products.(2)    Principally other electronics and medical products.

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7.     INCOME TAXES

The Company's effective tax rate decreased to 16.0% in the first nine months of fiscal 2025, down from 17.3% in the first nine months of fiscal 2024.  The decrease in the Company's effective tax rate principally reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2025.  The Company recognized a discrete tax benefit from stock option exercises in the first quarter of fiscal 2025 and 2024 of $27.2 million and $13.6 million, respectively.The Company's effective tax rate increased to 18.9% in the third quarter of fiscal 2025, up from 18.0% in the third quarter of fiscal 2024.  The increase in the Company’s effective tax rate principally reflects the prior year favorable impact from the reversal of accrued contingent consideration associated with a subsidiary acquired by the ETG in a stock acquisition and a larger income tax credit for qualified research and development activities recognized in the third quarter of fiscal 2024.On July 4, 2025, the United States enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (the “Act”), which introduced significant changes to U.S. tax law.  Key provisions include the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025, immediate expensing of domestic research and experimental expenditures, and changes to the methodology for Foreign-Derived Intangible Income (“FDII”) and Global Intangible Low-Taxed Income ("GILTI").  The Act includes multiple effective dates, with certain provisions effective in fiscal 2025 and others phased in through fiscal 2028.  The Company is currently evaluating the impact of the Act on its consolidated financial statements.

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8.    FAIR VALUE MEASUREMENTS

The Company's assets and liabilities that were measured