Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 37

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 8
Chunk 37
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,034 

12

Accrued Customer Rebates and CreditsThe aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $29.4 million as of July 31, 2025 and $24.3 million as of October 31, 2024.  The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2025 and 2024 was $12.8 million and $8.5 million, respectively.  The total customer rebates and credits deducted within net sales for the three months ended July 31, 2025 and 2024 was $4.9 million and $2.7 million, respectively.Research and Development ExpensesThe amount of new product research and development ("R&D") expenses included in cost of sales for the nine and three months ended July 31, 2025 and 2024 is as follows (in thousands):Nine months ended July 31,Three months ended July 31,2025202420252024R&D expenses$88,275 $82,810 $31,929 $29,779 Redeemable Noncontrolling InterestsThe holders of equity interests in certain of the Company's subsidiaries have rights ("Put Rights") that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2034.  The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period.  Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands):July 31, 2025October 31, 2024Redeemable at fair value $348,386 $306,143 Redeemable based on a multiple of future earnings89,201 60,013 Redeemable noncontrolling interests$437,587 $366,156 As discussed in Note 2, Acquisitions, the Company, through a subsidiary of HEICO Electronic, acquired 70% of the stock of SVM in November 2024.  As part of the shareholders' agreement, the non