Company: HEI-A
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0000046619-25-000046
Chunk: 42

Company: HEICO CORP
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 42
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 tax rate decreased to 14.4% in the first six months of fiscal 2025, down from 16.9% in the first six months 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 the first quarter of fiscal 2025 and 2024 of $27.2 million and $13.6 million, respectively.The Company's effective tax rate decreased to 21.0% in the second quarter of fiscal 2025, down from 21.2% in the second quarter of fiscal 2024.

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 April 30, 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$— $318,547 $— $318,547 Money market fund11,236 — — 11,236 Total assets$11,236 $318,547 $— $329,783 Liabilities:Contingent consideration $— $— $40,044 $40,044 As of October 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)TotalAssets:Deferred compensation plan:Corporate-owned life insurance$— $313,794 $— $313,794 Money market fund3,365 — — 3,365 Total assets$3,365 $313,794 $— $317,159 Liabilities:Contingent consideration$— $— $30,207 $30,207 

19

The Company maintains the HEICO Corporation Leadership Compensation Plan (the "LCP"), which is a non-qualified deferred compensation plan.  The assets of the LCP principally represent cash surrender values of life insurance policies, which derive their fair values from investments in mutual funds that are managed by an insurance