Company: HEI-A
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0000046619-25-000015
Chunk: 18

Company: HEICO CORP
Filing Date: 2025-02-28
Form: 10-Q
Item: Item 1
Chunk 18
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$1,207,625 $1,188,241 $1,215,293 

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.        

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Changes in the Company’s contract assets and liabilities for the three months ended January 31, 2025 are as follows (in thousands):January 31, 2025October 31, 2024ChangeContract assets, current $118,213 $112,235 $5,978 Contract liabilities, current 77,42983,903 (6,474)Contract liabilities, long-term77,858 61,843 16,015 Total contract liabilities 155,287 145,746 9,541 Net contract (liabilities) assets ($37,074)($33,511)($3,563)    The increase in the Company's total contract liabilities during the first quarter 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 first quarter of fiscal 2025 that was included in contract liabilities as of the beginning of fiscal 2025 was $35.8 million.Remaining Performance ObligationsBacklog, which the Company believes to be the equivalent of its remaining performance obligations, represents contractually committed, or firm customer orders.  As of January 31, 2025, the Company had $1,945.3 million of remaining performance obligations associated with firm contracts pertaining to many of the products offered by the FSG and ETG.  The Company will recognize net sales as these obligations are satisfied.  The Company expects to recognize $1,076.1 million of this amount during the remainder of fiscal 2025 and $869.2 million thereafter, of which a little more than half is expected to occur in fiscal 2026.    

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Disaggregation of Revenue    The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Three months ended January 31,20252024Flight