Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 118

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 118
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 Deferred compensation plan liability67,433 57,016 Capitalized research and development costs 65,424 48,820 Operating lease liabilities 28,384 28,270 Contract liabilities (deferred revenue)15,724 6,146 Share-based compensation14,797 11,387 Performance-based compensation accrual10,060 8,183 Other18,030 21,657 Total deferred tax assets327,247 273,977 Deferred tax liabilities:Goodwill and other intangible assets (358,691)(330,624)Property, plant and equipment (45,834)(27,701)Operating lease right-of-use assets (27,022)(26,766)Other(2,886)(3,042)Total deferred tax liabilities(434,433)(388,133)Net deferred tax liability($107,186)($114,156)As of October 31, 2025 and 2024, the Company’s liability for gross unrecognized tax benefits related to uncertain tax positions was $8.9 million and $6.5 million, respectively, of which $7.0 million and $5.1 million, respectively, would decrease the Company’s income tax expense and effective income tax rate if the tax benefits were recognized.  A reconciliation of the activity related to the liability for gross unrecognized tax benefits during fiscal 2025 and 2024 is as follows (in thousands):Year ended October 31,20252024Balance as of beginning of year$6,451 $4,363 Increases related to current year tax positions3,182 2,521 Increases related to prior year tax positions— 88 Decreases related to prior year tax positions(120)— Lapses of statutes of limitations(628)(521)Balance as of end of year$8,885 $6,451 

91

8.    FAIR VALUE MEASUREMENTS

    The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands):As of October 31, 2025Quoted Prices in Active Markets for Identical Assets(Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)TotalAssets:Deferred compensation plan:Corporate-owned life insurance$— $378,930 $— $378,930 Money market fund11,