Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 44

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 1A
Chunk 44
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 may not be able to ascertain the origin of these minerals used in our products in a timely manner, which could cause some of our customers to disqualify us as a supplier to the extent we are unable to certify our products are conflict mineral free.  Additionally, the rule could affect sourcing at competitive prices and availability in sufficient quantities of such minerals used in our manufacturing processes for certain products.

Also, in foreign countries in which we have operations or business, a risk exists that our associates, contractors or agents could, in contravention of our policies and compliance programs, engage in business practices prohibited by U.S. laws and regulations applicable to us, such as the Foreign Corrupt Practices Act ("FCPA"), or the laws and regulations of other countries, such as the United Kingdom Bribery Act.  Additionally, we are subject to regulations such as the Canadian Forced and Child Labour Act, which prohibits the importation of goods produced wholly or in part by forced or child labor.  Any such violations could have a material adverse effect on our business.

Tax changes could affect our effective tax rate and future profitability.

    We file income tax returns in the U.S. federal jurisdiction, multiple state jurisdictions and certain jurisdictions outside the U.S.  In fiscal 2025, our effective tax rate was 16.6%.  Our future effective tax rate may be adversely affected by a number of factors, including the following:

•Changes in statutory tax rates in any of the various jurisdictions where we file tax returns;

•Changes in available tax credits or deductions;

•Changes in tax laws or their interpretation, including amendments, technical corrections, and guidance related to the Tax Cuts and Jobs Act as well as to H.R.1, commonly referred to as the One Big Beautiful Bill Act (the “Act”).  The Act became law on July 4, 2025 and introduced significant changes to U.S. tax law.  See Note 7, Income Taxes, of the Notes to Consolidated Financial Statements for further information regarding certain provisions of the Act.  The Act has multiple effective dates and certain provisions became effective in fiscal 2025 while others will be phased in through fiscal 2028.  The Act did not have a significant impact on our fiscal 2025 consolidated financial statements and we 

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will continue to evaluate its potential impact on our future consolidated financial statements;

•Changes to the accounting for income taxes in accordance with generally accepted accounting principles;

•The amount of net income attributable to noncontrolling interests in our subsidiaries structured as