Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 113

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 113
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Total $1,190,055 $1,242,224 $1,188,241 $1,215,293 

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6.     REVENUE

    Contract Balances    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.The following table presents the Company’s contract assets and liabilities (in thousands):As of October 31, 20252024Contract assets, current $119,257 $112,235 Contract liabilities, current (79,529)(83,903)Contract liabilities, long-term(84,714)(61,843)Total contract liabilities (164,243)(145,746)Net contract liabilities($44,986)($33,511)     The increase in the Company's total contract liabilities during fiscal 2025 principally reflects the receipt of advance deposits on certain customer contracts, mainly at the FSG.The amount of revenue that the Company recognized during fiscal 2025 that was included in contract liabilities as of the beginning of fiscal 2025 was $74.9 million.    Remaining Performance ObligationsBacklog, which the Company believes to be the equivalent of its remaining performance obligations, represents contractually committed, or firm customer orders.  As of October 31, 2025, the Company had $2,107.6 million of remaining performance obligations associated with firm contracts pertaining to many of the products offered by the FSG and ETG.  The Company will recognize net sales as these obligations are satisfied.  The Company expects to recognize $1,358.7 million of this amount during fiscal 2026 and $748.9 million thereafter, of which more than half is expected to occur in fiscal 2027.    

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Disaggregation of Revenue    The following table summarizes the Company’s net sales by product line for each operating segment (in thousands): Year Ended October 31, 202520242023Flight Support Group:Aftermarket replacement parts (1) $1,922,323 $1,658,431 $1,040,502 Repair and overhaul parts and services (2)748,849 593,237 366,