Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 94

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 94
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 HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period.  Diluted net income per share attributable to HEICO shareholders is computed by dividing net income attributable to HEICO by the weighted average number of common shares outstanding during the period plus potentially dilutive common shares arising from the assumed exercise of stock options, if dilutive.  The dilutive impact of potentially dilutive common shares is determined by applying the treasury stock method.Foreign Currency     All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end exchange rates, while revenue and expenses are translated using average exchange rates for the period.  Unrealized translation gains or losses are reported as foreign currency translation adjustments through other comprehensive income or (loss) in shareholders’ equity.  Transaction gains or losses related to monetary balances denominated in a currency other than the functional currency are recorded in the Company's Consolidated Statements of Operations.

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Contingencies    Losses for contingencies such as product warranties, litigation and environmental matters are recognized in income when they are probable and can be reasonably estimated.  Gain contingencies are not recognized in income until they have been realized.New Accounting PronouncementsIn November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which expands reportable segment disclosure requirements by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss.  The ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and allocating resources.  Additionally, ASU 2023-07 requires all segment profit or loss and asset disclosures to be provided on both an annual and interim basis.  The Company adopted ASU 2023-07 in the fourth quarter of fiscal 2025.  The adoption of ASU 2023-07 did not affect the Company’s consolidated financial position, results of operations, or cash flows.  See Note 15, Operating Segments, for the Company's enhanced segment disclosures.In December 2023, the FASB issued ASU 2023-09, “Income