Company: HEI-A
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0000046619-25-000046
Chunk: 21

Company: HEICO CORP
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 1
Chunk 21
---

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 that was actively traded on April 30, 2025 and October 31, 2024.April 30, 2025October 31, 2024Carrying ValueFair ValueCarrying ValueFair Value2028 Notes$595,844 $612,735 $595,267 $609,376 2033 Notes593,292 606,878 592,974 605,917 Total $1,189,136 $1,219,613 $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.    Changes in the Company’s contract assets and liabilities for the six months ended April 30, 2025 are as follows (in thousands):April 30, 2025October 31, 2024ChangeContract assets, current $124,683 $112,235 $12,448 Contract liabilities, current (79,764)(83,903)4,139 Contract liabilities, long-term(91,120)(61,843)(29,277)Total contract liabilities (170,884)(145,746)(25,138)Net contract liabilities($46,201)($33,511)($12,690)The increase in the Company's contract assets during the first six 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 six months of fiscal 2025 principally reflects the receipt of advance deposits on certain customer contracts, mainly at the FSG.

16

The amount of revenue that the Company recognized during the six and three months ended April 30