Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 22

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 1
Chunk 22
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 (the "2028 Notes") and $600 million principal amount of 5.35% Senior Notes due August 1, 2033 (the "2033 Notes" and, collectively with the 2028 Notes, the "Notes").  Interest on the Notes is payable semi-annually in arrears on February 1 and August 1 of each year.  The 2028 Notes and 2033 Notes each have an effective interest rate of 5.5%.  The Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of the Company's existing and future subsidiaries that guarantee the Company's obligations under the Credit Facility (the "Guarantor Group").  As of July 31, 2025, the Company was in compliance with all covenants related to the 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