Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 42

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 8
Chunk 42
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 Notes.The following table sets forth the carrying value and estimated fair value of the Company’s Notes, which are classified as Level 1 financial instruments in the fair value hierarchy (in thousands).  The Company estimated the fair value of the Notes by taking the weighted average of market quotes for the exact security from the most recent active trading day as of July 31, 2025 and October 31, 2024.July 31, 2025October 31, 2024Carrying ValueFair ValueCarrying ValueFair Value2028 Notes$596,137 $612,502 $595,267 $609,376 2033 Notes593,452 612,235 592,974 605,917 Total $1,189,589 $1,224,737 $1,188,241 $1,215,293 

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6.     REVENUE

    Contract Balances    Contract assets (unbilled receivables) represent revenue recognized on contracts using an over-time recognition model in excess of amounts invoiced to the customer.  Contract liabilities (deferred revenue) represent customer advances and billings in excess of revenue recognized and are included within accrued expenses and other current liabilities and other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets.    Changes in the Company’s contract assets and liabilities for the nine months ended July 31, 2025 are as follows (in thousands):July 31, 2025October 31, 2024ChangeContract assets, current $132,963 $112,235 $20,728 Contract liabilities, current (84,611)(83,903)(708)Contract liabilities, long-term(88,886)(61,843)(27,043)Total contract liabilities (173,497)(145,746)(27,751)Net contract liabilities($40,534)($33,511)($7,023)The increase in the Company's contract assets during the first nine months of fiscal 2025 mainly reflects additional unbilled receivables on certain customer contracts using an over-time recognition model in excess of billings on certain customer contracts, mainly at the FSG.  The increase in the Company's total contract liabilities during the first nine months of fiscal 2025 principally reflects the receipt of advance deposits on certain customer contracts, mainly at the FSG.The amount of revenue that the Company recognized during the nine and three months ended July 31