Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 90

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 90
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 obligation as of October 31, for each of the last two fiscal years (in thousands):As of October 31,20252024Fair value of plan assets$10,842 $11,165 Projected benefit obligation9,621 9,875 Funded status$1,221 $1,290 Revenue Recognition    The Company recognizes revenue when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to receive in exchange for the good or service.  The Company’s performance obligations are satisfied and control is transferred either at a point in time or over time.  The majority of the Company’s revenue is recognized at a point in time when control is transferred, which is generally evidenced by the shipment or delivery of the product to the customer, a transfer of title, a transfer of the significant risks and rewards of ownership, and customer acceptance.  For certain contracts under which the Company produces products with no alternative use and for which it has an enforceable right to recover costs incurred plus a reasonable profit margin for work completed to date and for certain other contracts under which the Company creates or enhances a customer-owned asset while performing repair and overhaul services, control is transferred to the customer over time.  The Company recognizes revenue using an over time recognition model for these types of contracts.The Company accounts for a contract with a customer when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance, and it is probable that the Company will collect the consideration to which it is entitled to receive.  Customer payment terms related to the sale of products and the rendering of services vary by Company subsidiary and product line.  The time between receipt of payment and recognition of revenue for satisfaction of the related performance obligation is not significant.A performance obligation is a promise within a contract to transfer a distinct good or service to the customer in exchange for payment and is the unit of account for recognizing revenue.  A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied.  The majority of the Company’s contracts have a single performance obligation to transfer goods or services.  For contracts with more than one performance obligation, the Company allocates the transaction price to each performance obligation based on its estimated standalone selling price.  When standalone selling prices are not available, the transaction price is allocated using an expected 

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cost-plus margin approach as pricing for such contracts is typically negotiated on