Company: HEI-A
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0000046619-25-000062
Chunk: 26

Company: HEICO CORP
Filing Date: 2025-08-27
Form: 10-Q
Item: Item 1
Chunk 26
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 enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (the “Act”), which introduced significant changes to U.S. tax law.  Key provisions include the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025, immediate expensing of domestic research and experimental expenditures, and changes to the methodology for Foreign-Derived Intangible Income (“FDII”) and Global Intangible Low-Taxed Income ("GILTI").  The Act includes multiple effective dates, with certain provisions effective in fiscal 2025 and others phased in through fiscal 2028.  The Company is currently evaluating the impact of the Act on its consolidated financial statements.

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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 July 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$— $354,823 $— $354,823 Money market fund7,370 — — 7,370 Total assets$7,370 $354,823 $— $362,193 Liabilities:Contingent consideration $— $— $42,252 $42,252 As of October 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)TotalAssets:Deferred compensation plan:Corporate-owned life insurance$— $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 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 company, and are classified within