Company: HEI-A
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0000046619-25-000015
Chunk: 35

Company: HEICO CORP
Filing Date: 2025-02-28
Form: 10-Q
Item: Item 8
Chunk 35
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, microwave power modules, a wide variety of memory products and radio frequency (RF) and microwave products, crashworthy and ballistically self-sealing auxiliary fuel systems, high performance communications and electronic intercept receivers and tuners, high performance active antenna systems and airborne antennas, technical surveillance countermeasures (TSCM) equipment, custom high power filters and filter assemblies, radiation assurance services and products, and high-reliability, complex, passive electronic components and rotary joint assemblies, and proprietary in-cabin power and entertainment components and subsystems.

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(5)    Includes various component parts such as electromagnetic and radio frequency interference shielding, high voltage interconnection devices, high voltage advanced power electronics, harsh environment connectivity products, custom molded cable assemblies, silicone material for a variety of demanding applications, and rugged small form-factor embedded computing solutions, and high performance test sockets and adaptors.    The following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Three months ended January 31,20252024Flight Support Group:Aerospace$533,621 $461,241 Defense and Space 165,889 138,772 Other (1)13,664 18,703 Total net sales713,174 618,716 Electronic Technologies Group:Defense and Space 170,741 135,776 Other (2)98,962 100,610 Aerospace 60,612 49,556 Total net sales330,315 285,942 Intersegment sales (13,267)(8,295)Total consolidated net sales$1,030,222 $896,363 (1)    Principally industrial products.(2)    Principally other electronics and medical products.

7.     INCOME TAXES

    The Company's effective tax rate decreased to 7.0% in the first quarter of fiscal 2025, down from 11.8% in the first quarter 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 both the first quarter of fiscal 2025 and 2024 of $27.2 million and $13.6 million, respectively.

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8.    FAIR VALUE MEASUREMENTS

The Company's assets and liabilities that were measured at