Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 76

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 76
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 the Flight Support Group operating segment.

Given the magnitude of the inventory balances at these business units, coupled with the judgments necessary to project sales patterns and expected future demand within these business units, auditing such estimates required a high degree of auditor judgment and an increased extent of effort when performing audit procedures and evaluating the results of those procedures.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the expected future demand and sales patterns used by management to estimate the valuation reserve on inventory included the following, among others:

•We tested the effectiveness of controls, including those related to evaluating the reasonableness of expected future demand and sales patterns.

•We evaluated the reasonableness of management’s assumptions of future demand and sales patterns by performing the following: 

◦Utilized historical inventory usage data to analyze the relationship between the inventory valuation reserve calculated, the inventory on hand, and the sales trends over time.

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◦Compared management’s assumptions to available external market data for certain inventory items.

•We evaluated the accuracy and completeness of the valuation reserve by developing an expectation of the reserve balance at the business unit level and comparing it to the recorded balance.

•We tested changes in the inventory valuation reserve and evaluated whether such changes were the result of the sale or write-off of inventory parts or the result of changes in the significant assumptions used to develop the valuation reserve.

/s/ DELOITTE & TOUCHE LLP

Miami, Florida

December 22, 2025

We have served as the Company's auditor since 1990.

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HEICO CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

As of October 31,20252024ASSETSCurrent assets:Cash and cash equivalents$217,781 $162,103 Accounts receivable, net637,615 538,487 Contract assets119,257 112,235 Inventories, net1,295,336 1,170,949 Prepaid expenses and other current assets86,377 78,518 Total current assets2,356,366 2,062,292 Property, plant and equipment, net431,710 339,034 Goodwill3,661,624 3,380,295 Intangible assets, net1,471,440 1,334,774 Other assets579,294 476,427 Total assets$8,500,434 $7,592,