Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 85

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 85
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95%, and 96% owned, respectively, three subsidiaries that are each 90% owned and four subsidiaries that are each 80.1% owned.  In addition, HEICO Aerospace consolidates a joint venture, which is 84% owned.  HEICO Electronic consolidates four subsidiaries that are each 80.1% owned, two subsidiaries that are each 75% owned, two subsidiaries that are each 92.5% owned, and seven subsidiaries which are 80.4%, 82.5%, 90%, 90.7%, 92.4%, 92.7%, and 95.9% owned, respectively.  Certain subsidiaries of HEICO Electronic consolidate subsidiaries that are less than wholly owned.  See Note 13, Redeemable Noncontrolling Interests.  All intercompany balances and transactions are eliminated.Use of Estimates and Assumptions    The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

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Cash and Cash Equivalents    For purposes of the consolidated financial statements, the Company considers all highly liquid investments such as U.S. Treasury bills and money market funds with an original maturity of three months or less at the time of purchase to be cash equivalents.Accounts Receivable    Accounts receivable consist of amounts billed and currently due from customers.  The valuation of accounts receivable requires that the Company set up an allowance for estimated uncollectible accounts and record a corresponding charge to bad debt expense.  The Company estimates uncollectible receivables based on such factors as its prior experience, its appraisal of a customer’s ability to pay, age of receivables outstanding and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries.Contract Assets and Contract Liabilities     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 Consolidated Balance Sheets.  See Note 6, Revenue, for additional information regarding the Company's