Company: HEI-A
Filing Date: 2025-12-22
Form Type: 10-K
Source: 0000046619-25-000082
Chunk: 122

Company: HEICO CORP
Filing Date: 2025-12-22
Form: 10-K
Item: Item 8
Chunk 122
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 InputRange Discount rate 15.0% - 20.5%Royalty rate 1.0% - 2.5%

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9.     LEASES

    HEICO’s lease ROU assets represent its right to use an underlying asset during the lease term and its lease liabilities represent the Company’s obligation to make lease payments arising from the lease.  HEICO’s operating lease ROU assets are included within other assets and its operating lease liabilities are included within other long-term liabilities and accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets.  HEICO's finance lease ROU assets are included within property, plant and equipment, net and its finance lease liabilities are included within long-term debt, net of current maturities and current maturities of long-term debt within the Company's Consolidated Balance Sheets.  The following table presents the Company’s lease ROU assets and lease liabilities (in thousands):Operating Leases As of October 31, Finance Leases As of October 31,  2025202420252024Right-of-use assets $134,981 $131,836 $16,024 $24,024 Current lease liabilities $25,736 $23,422 $3,297 $4,060 Long-term lease liabilities 114,985 113,458 14,486 21,800 Total lease liabilities $140,721 $136,880 $17,783 $25,860 The Company’s operating lease expenses are recorded within cost of sales and/or SG&A expenses in the Company’s Consolidated Statements of Operations.  The Company's finance lease expenses consist of amortization of ROU assets and interest on lease liabilities, which are included within cost of sales and/or SG&A expenses, and interest expense, respectively, in the Company's Consolidated Statements of Operations.  Further, interest expense on finance leases is recognized using the effective interest method based on the discount rate determined at lease commencement.

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The following table presents the components of lease expense for fiscal 2025 and 2024 (in thousands):    Year ended October 31, 20252024Operating Leases:Operating lease expense $35,326 $32,655 Variable lease expense6,466 5,574 Total operating lease expense (1)$41,792 $38,229 Finance Leases: Amortization of finance lease ROU assets $3,897 $