Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 48

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 8
Chunk 48
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31, 2025 ($ in thousands):Unobservable Weighted Acquisition Date Fair Value Input Range Average (1) 1-31-2025$12,075Compound annual revenue growth rate5% - 22%17%Discount rate7.2% - 7.2%7.2%7-18-202221,534Compound annual revenue growth rate3% - 9%7%Discount rate7.7% - 7.7%7.7%3-17-20228,643Compound annual revenue growth rate(2%) - 6%3%Discount rate7.8% - 7.8%7.8%(1)    Unobservable inputs were weighted by the relative fair value of the contingent consideration liability.Changes in the Company’s contingent consideration liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the nine months ended July 31, 2025 are as follows (in thousands):LiabilitiesBalance as of October 31, 2024$30,207 Contingent consideration related to an acquisition11,509 Increase in accrued contingent consideration, net8,974 Payment of contingent consideration(8,144)Foreign currency transaction adjustments(294)Balance as of July 31, 2025$42,252 As of July 31, 2025, the Company's contingent consideration balance is included within other long-term liabilities in its Condensed Consolidated Balance Sheet.  The Company records changes in accrued contingent consideration and foreign currency transaction adjustments within SG&A expenses in its Condensed Consolidated Statements of Operations.The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of July 31, 2025 due to the relatively short maturity of the respective instruments.  The carrying amount of borrowings under the Company's credit facility approximates fair value due to its variable interest rate.  See Note 5, Long-Term Debt, for the estimated fair value of the Company’s senior unsecured notes.

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9.    NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS

    The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data):Nine months ended July 31,Three months ended July 31,2025202420252024Numerator:Net income attributable to HEICO$502