Company: HEI-A
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0000046619-25-000015
Chunk: 20

Company: HEICO CORP
Filing Date: 2025-02-28
Form: 10-Q
Item: Item 1
Chunk 20
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 following table summarizes the Company’s net sales by industry for each operating segment (in thousands): Three months ended January 31,20252024Flight Support Group:Aerospace$533,621 $461,241 Defense and Space 165,889 138,772 Other (1)13,664 18,703 Total net sales713,174 618,716 Electronic Technologies Group:Defense and Space 170,741 135,776 Other (2)98,962 100,610 Aerospace 60,612 49,556 Total net sales330,315 285,942 Intersegment sales (13,267)(8,295)Total consolidated net sales$1,030,222 $896,363 (1)    Principally industrial products.(2)    Principally other electronics and medical products.

7.     INCOME TAXES

    The Company's effective tax rate decreased to 7.0% in the first quarter of fiscal 2025, down from 11.8% in the first quarter of fiscal 2024.  The decrease in the Company's effective tax rate principally reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2025.  The Company recognized a discrete tax benefit from stock option exercises in both the first quarter of fiscal 2025 and 2024 of $27.2 million and $13.6 million, respectively.

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8.    FAIR VALUE MEASUREMENTS

The Company's assets and liabilities that were measured at fair value on a recurring basis are set forth by level within the fair value hierarchy in the following tables (in thousands):As of January 31, 2025Quoted Prices in Active Markets for Identical Assets(Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)TotalAssets:Deferred compensation plan:Corporate-owned life insurance$— $326,491 $— $326,491 Money market fund18,027 — — 18,027 Total assets$18,027 $326,491 $— $344,518 Liabilities:Contingent consideration $— $— $36,514 $36,514 As of October 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs(Level