Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 131

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 131
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 is to be purchased in a lump sum and the Put Right for the remaining 1.5% interest is to be purchased over a four-year period.(5)    The Put Rights for a 10% noncontrolling interest and the remaining 9.9% interest may be exercised beginning in fiscal 2027 and 2029, respectively, with each purchase over a four-year period.(6)    The Put Right for a 15% noncontrolling interest may be exercised in 5% increments annually and the first increment is currently puttable.  The Put Right for the remaining 3% noncontrolling interest may be exercised in one-fifth increments beginning in fiscal 2028.(7)     The exercise of a Put Right for either entity will automatically trigger a Put Right exercise for the other entity.  (8)    The Put Rights for an aggregate 13.5% noncontrolling interest is currently puttable with the purchase over a three-year period.  The Put Right for the remaining 6.4% noncontrolling interest may be exercised beginning in fiscal 2028 with the purchase over a four-year period.(9)   The Put Right for a 4.5% noncontrolling interest is to be purchased in a lump sum and the Put Right for the remaining 3.1% interest is to be purchased over a two-year period.The estimated aggregate Redemption Amount of the Put Rights that are currently puttable, previously put, or becoming puttable during fiscal 2026 is approximately $191.4 million, of which approximately $94.6 million would be payable in fiscal 2026 should all of the eligible associated noncontrolling interest holders elect to exercise their Put Rights during fiscal 2026.  Additionally, the Company has call rights to purchase the equity interests of the noncontrolling holders over the same purchase period as the Put Rights.During the third quarter of fiscal 2025, the Company sold a 10% noncontrolling equity interest in a subsidiary of HFSC that was acquired in fiscal 2020, which decreased the Company's ownership interest in the subsidiary to 90%.  As part of the operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their noncontrolling interests over a four-year period beginning in fiscal 2031, or sooner under certain conditions, and the Company has the right to purchase the same noncontrolling interests over the same period.During the second quarter of fiscal