10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended July 31, 2016
	OR
¨	TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ______ to _______

Commission File Number: 1-4604

HEICO CORPORATION

(Exact name of registrant as specified in its charter)

Florida	65-0341002
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3000 Taft Street, Hollywood, Florida	33021
(Address of principal executive offices)	(Zip Code)

(954) 987-4000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The number of shares outstanding of each of the registrant’s classes of common stock as of August 24, 2016 is as follows:

Common Stock, $.01 par value	26,964,256	shares
Class A Common Stock, $.01 par value	40,288,525	shares

HEICO CORPORATION

INDEX TO QUARTERLY REPORT ON FORM 10-Q

			Page
Part I.	Financial Information
	Item 1.	Financial Statements:
		Condensed Consolidated Balance Sheets (unaudited) as of July 31, 2016 and October 31, 2015	2
		Condensed Consolidated Statements of Operations (unaudited) for the nine and three months ended July 31, 2016 and 2015	3
		Condensed Consolidated Statements of Comprehensive Income (unaudited) for the nine and three months ended July 31, 2016 and 2015	4
		Condensed Consolidated Statements of Shareholders’ Equity (unaudited) for the nine months ended July 31, 2016 and 2015	5
		Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended July 31, 2016 and 2015	6
		Notes to Condensed Consolidated Financial Statements (unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
	Item 4.	Controls and Procedures	34
Part II.	Other Information
	Item 6.	Exhibits	35
Signatures			36

1

PART I. FINANCIAL INFORMATION; Item 1. FINANCIAL STATEMENTS

HEICO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(in thousands, except per share data)

	July 31, 2016			October 31, 2015
ASSETS
Current assets:
Cash and cash equivalents		$27,191			$33,603
Accounts receivable, net	189,617			181,593
Inventories, net	286,679			243,517
Prepaid expenses and other current assets	11,308			9,369
Deferred income taxes	38,873			35,530
Total current assets	553,668			503,612
Property, plant and equipment, net	118,935			105,670
Goodwill	865,533			766,639
Intangible assets, net	376,828			272,593
Deferred income taxes	590			847
Other assets	101,766			87,026
Total assets		$2,017,320			$1,736,387
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$335			$357
Trade accounts payable	65,312			64,682
Accrued expenses and other current liabilities	115,938			100,155
Income taxes payable	4,672			3,193
Total current liabilities	186,257			168,387
Long-term debt, net of current maturities	509,570			367,241
Deferred income taxes	107,687			110,588
Other long-term liabilities	113,630			105,618
Total liabilities	917,144			751,834
Commitments and contingencies (Note 10)
Redeemable noncontrolling interests (Note 3)	87,906			91,282
Shareholders’ equity:
Common Stock, $.01 par value per share; 75,000 shares authorized; 26,964 and 26,906 shares issued and outstanding	270			269
Class A Common Stock, $.01 par value per share; 75,000 shares authorized; 40,274 and 39,967 shares issued and outstanding	403			400
Capital in excess of par value	302,730			286,220
Deferred compensation obligation	1,635			1,783
HEICO stock held by irrevocable trust	(1,635		)	(1,783		)
Accumulated other comprehensive loss	(22,372		)	(25,080		)
Retained earnings	649,131			548,054
Total HEICO shareholders’ equity	930,162			809,863
Noncontrolling interests	82,108			83,408
Total shareholders’ equity	1,012,270			893,271
Total liabilities and equity		$2,017,320			$1,736,387

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

HEICO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED

(in thousands, except per share data)

	Nine months ended July 31,						Three months ended July 31,
	2016			2015			2016			2015
Net sales		$1,012,959			$859,976			$356,084			$300,370
Operating costs and expenses:
Cost of sales	633,151			552,593			222,501			192,278
Selling, general and administrative expenses	190,539			146,679			63,729			49,582
Total operating costs and expenses	823,690			699,272			286,230			241,860
Operating income	189,269			160,704			69,854			58,510
Interest expense	(6,194		)	(3,346		)	(2,294		)	(1,088		)
Other income (expense)	154			375			16			(184		)
Income before income taxes and noncontrolling interests	183,229			157,733			67,576			57,238
Income tax expense	56,600			48,200			20,600			18,300
Net income from consolidated operations	126,629			109,533			46,976			38,938
Less: Net income attributable to noncontrolling interests	14,699			14,419			4,974			4,569
Net income attributable to HEICO		$111,930			$95,114			$42,002			$34,369
Net income per share attributable to HEICO shareholders:
Basic		$1.67			$1.43			$.63			$.51
Diluted		$1.64			$1.40			$.62			$.51
Weighted average number of common shares outstanding:
Basic	66,975			66,706			67,126			66,813
Diluted	68,082			67,790			68,278			67,901
Cash dividends per share		$.16			$.14			$.08			$.07

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HEICO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME – UNAUDITED

(in thousands)

	Nine months ended July 31,					Three months ended July 31,
	2016		2015			2016			2015
Net income from consolidated operations		$126,629		$109,533			$46,976			$38,938
Other comprehensive income (loss):
Foreign currency translation adjustments	2,909		(17,177		)	(3,639		)	(5,442		)
Total other comprehensive income (loss)	2,909		(17,177		)	(3,639		)	(5,442		)
Comprehensive income from consolidated operations	129,538		92,356			43,337			33,496
Less: Net income attributable to noncontrolling interests	14,699		14,419			4,974			4,569
Less: Foreign currency translation adjustments attributable to noncontrolling interests	201		(904		)	(353		)	(94		)
Comprehensive income attributable to noncontrolling interests	14,900		13,515			4,621			4,475
Comprehensive income attributable to HEICO		$114,638		$78,841			$38,716			$29,021

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HEICO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - UNAUDITED

(in thousands, except per share data)

				HEICO Shareholders' Equity
	Redeemable Noncontrolling Interests			Common Stock		Class A Common Stock		Capital in Excess of Par Value			Deferred Compensation Obligation			HEICO Stock Held by Irrevocable Trust			Accumulated Other Comprehensive Loss			Retained Earnings			Noncontrolling Interests			Total Shareholders' Equity
Balances as of October 31, 2015		$91,282			$269		$400		$286,220			$1,783			($1,783	)		($25,080	)		$548,054			$83,408			$893,271
Comprehensive income	7,431			—		—		—			—			—			2,708			111,930			7,469			122,107
Cash dividends ($.16 per share)	—			—		—		—			—			—			—			(10,724		)	—			(10,724		)
Issuance of common stock to HEICO Savings and Investment Plan	—			1		1		5,913			—			—			—			—			—			5,915
Share-based compensation expense	—			—		—		4,905			—			—			—			—			—			4,905
Proceeds from stock option exercises	—			—		2		4,829			—			—			—			—			—			4,831
Tax benefit from stock option exercises	—			—		—		867			—			—			—			—			—			867
Distributions to noncontrolling interests	(7,337		)	—		—		—			—			—			—			—			(8,819		)	(8,819		)
Acquisitions of noncontrolling interests	(3,599		)	—		—		—			—			—			—			—			—			—
Adjustments to redemption amount of redeemable noncontrolling interests	129			—		—		—			—			—			—			(129		)	—			(129		)
Deferred compensation obligation	—			—		—		—			(148		)	148			—			—			—			—
Other	—			—		—		(4		)	—			—			—			—			50			46
Balances as of July 31, 2016		$87,906			$270		$403		$302,730			$1,635			($1,635	)		($22,372	)		$649,131			$82,108			$1,012,270

				HEICO Shareholders' Equity
	Redeemable Noncontrolling Interests			Common Stock		Class A Common Stock		Capital in Excess of Par Value			Deferred Compensation Obligation		HEICO Stock Held by Irrevocable Trust			Accumulated Other Comprehensive Loss			Retained Earnings			Noncontrolling Interests			Total Shareholders' Equity
Balances as of October 31, 2014		$39,966			$268		$397		$269,351			$1,138		($1,138	)		($8,289	)		$437,757			$75,135			$774,619
Comprehensive income (loss)	3,880			—		—		—			—		—			(16,273		)	95,114			9,635			88,476
Cash dividends ($.14 per share)	—			—		—		—			—		—			—			(9,343		)	—			(9,343		)
Issuance of common stock to HEICO Savings and Investment Plan	—			1		—		5,090			—		—			—			—			—			5,091
Share-based compensation expense	—			—		—		4,394			—		—			—			—			—			4,394
Proceeds from stock option exercises	—			—		2		3,256			—		—			—			—			—			3,258
Tax benefit from stock option exercises	—			—		—		1,404			—		—			—			—			—			1,404
Noncontrolling interests assumed related to acquisitions	17,076			—		—		—			—		—			—			—			—			—
Distributions to noncontrolling interests	(3,623		)	—		—		—			—		—			—			—			(3,791		)	(3,791		)
Adjustments to redemption amount of redeemable noncontrolling interests	7,522			—		—		—			—		—			—			(7,522		)	—			(7,522		)
Deferred compensation obligation	—			—		—		—			158		(158		)	—			—			—			—
Other	—			—		—		(5		)	—		—			—			1			—			(4		)
Balances as of July 31, 2015		$64,821			$269		$399		$283,490			$1,296		($1,296	)		($24,562	)		$516,007			$80,979			$856,582

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

HEICO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(in thousands)

	Nine months ended July 31,
	2016			2015
Operating Activities:
Net income from consolidated operations		$126,629			$109,533
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:
Depreciation and amortization	44,603			35,066
Employer contributions to HEICO Savings and Investment Plan	5,219			4,482
Share-based compensation expense	4,905			4,394
Increase (decrease) in accrued contingent consideration	2,635			(412		)
Foreign currency transaction adjustments, net	876			(3,981		)
Deferred income tax benefit	(6,053		)	(4,909		)
Tax benefit from stock option exercises	867			1,404
Excess tax benefit from stock option exercises	(880		)	(1,404		)
Changes in operating assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	(2,974		)	4,482
Increase in inventories	(13,914		)	(10,653		)
Increase in prepaid expenses and other current assets	(1,943		)	(548		)
Decrease in trade accounts payable	(2,629		)	(6,570		)
Increase (decrease) in accrued expenses and other current liabilities	15,630			(7,977		)
Increase (decrease) in income taxes payable	1,775			(401		)
Other long-term assets and liabilities, net	(2,330		)	(1,217		)
Net cash provided by operating activities	172,416			121,289
Investing Activities:
Acquisitions, net of cash acquired	(263,811		)	(56,198		)
Capital expenditures	(23,113		)	(13,767		)
Other	(3,005		)	171
Net cash used in investing activities	(289,929		)	(69,794		)
Financing Activities:
Borrowings on revolving credit facility	260,000			68,696
Payments on revolving credit facility	(118,000		)	(95,000		)
Distributions to noncontrolling interests	(16,156		)	(7,414		)
Cash dividends paid	(10,724		)	(9,343		)
Payment of contingent consideration	(6,960		)	—
Acquisitions of noncontrolling interests	(3,599		)	—
Proceeds from stock option exercises	4,831			3,258
Excess tax benefit from stock option exercises	880			1,404
Other	(272		)	(295		)
Net cash provided by (used in) financing activities	110,000			(38,694		)
Effect of exchange rate changes on cash	1,101			(1,333		)
Net (decrease) increase in cash and cash equivalents	(6,412		)	11,468
Cash and cash equivalents at beginning of year	33,603			20,229
Cash and cash equivalents at end of period		$27,191			$31,697

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HEICO CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

1.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2015. The October 31, 2015 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the nine months ended July 31, 2016 are not necessarily indicative of the results which may be expected for the entire fiscal year.

The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09, as amended, is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2017, or in fiscal 2019 for HEICO. Early adoption in the year preceding the effective date is permitted. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating which transition method it will elect and the

7

effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory," which requires entities to measure inventories at the lower of cost or net realizable value. Under current guidance, inventories are measured at the lower of cost or market. ASU 2015-11 must be applied prospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect, if any, the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 may be applied either prospectively or retrospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The Company is currently evaluating which transition method it will elect. The adoption of this guidance will only effect the presentation of deferred taxes in the Company's consolidated statement of financial position.

In February 2016, the FASB issued ASU 2016-02, "Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects related to accounting for share-based payment transactions. Under ASU 2016-09, all excess tax benefits and tax deficiencies are to be recognized in the statement of operations as a component of income tax expense rather than as capital in excess of par value, and the tax effects will be presented within the statement of cash flows as an operating cash flow rather than as a financing activity. ASU 2016-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The recognition of the tax effects in the statement of operations, as well as related changes to the computation of diluted earnings per share are to be applied prospectively and entities may elect to apply the change in the presentation of the statement of cash flows either prospectively or retrospectively. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

8

2.     ACQUISITIONS

In December 2015, the Company, through a subsidiary of HEICO Electronic, acquired certain assets of a company that designs and manufactures underwater locator beacons used to locate aircraft cockpit voice recorders, flight data recorders, marine ship voyage recorders and other devices which have been submerged under water. The total consideration includes an accrual of $1.2 million representing the estimated fair value of contingent consideration the Company may be obligated to pay in aggregate during the first five years following the acquisition. The maximum amount of contingent consideration that the Company could be required to pay is $2.0 million. See Note 7, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligation. The purchase price of this acquisition was paid using cash provided by operating activities and the total consideration for the acquisition is not material or significant to the Company’s condensed consolidated financial statements.

On January 11, 2016, the Company, through HEICO Electronic, acquired all of the limited liability company interests of Robertson Fuel Systems, LLC ("Robertson"). The purchase price of this acquisition was paid in cash using proceeds from the Company’s revolving credit facility. Robertson is a world leader in the design and production of mission-extending, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft. The Company believes that this acquisition is consistent with HEICO’s practice of acquiring outstanding niche designers and manufacturers of critical components in the defense industry and will further enable the Company to broaden its product offerings, technologies and customer base.

The following table summarizes the total consideration for the acquisition of Robertson (in thousands):

Cash paid		$256,293
Less: cash acquired	(3,271		)
Total consideration		$253,022

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The following table summarizes the allocation of the total consideration for the acquisition of Robertson to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

Assets acquired:
Goodwill		$91,705
Customer relationships	55,100
Intellectual property	39,600
Trade name	28,400
Inventories	27,955
Property, plant and equipment	7,200
Accounts receivable	5,000
Other assets	1,883
Total assets acquired, excluding cash	256,843
Liabilities assumed:
Accounts payable	3,174
Accrued expenses	647
Total liabilities assumed	3,821
Net assets acquired, excluding cash		$253,022

The allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities assumed is preliminary until the Company obtains final information regarding their fair values. The amortization period of the customer relationships, intellectual property and trade name acquired is 15 years, 22 years and indefinite, respectively.

The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Robertson and the value of its assembled workforce that do not qualify for separate recognition. Acquisition costs associated with the purchase of Robertson totaled $3.1 million for the nine months ended July 31, 2016 and were recorded as a component of selling, general and administrative ("SG&A") expenses in the Company's Condensed Consolidated Statements of Operations. The operating results of Robertson were included in the Company’s results of operations from the effective acquisition date. The Company's consolidated net sales and net income attributable to HEICO for the nine months ended July 31, 2016, includes approximately $60.1 million and $8.8 million, respectively, from the acquisition of Robertson, exclusive of the aforementioned acquisition costs. The Company's consolidated net sales and net income attributable to HEICO for the three months ended July 31, 2016, includes approximately $30.6 million and $5.0 million, respectively, from the acquisition of Robertson.

10

The following table presents unaudited pro forma financial information for the nine and three months ended July 31, 2016 and July 31, 2015 as if the acquisition of Robertson had occurred as of November 1, 2014 (in thousands):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
Net sales		$1,034,293		$921,563		$356,084		$325,527
Net income from consolidated operations		$133,078		$113,946		$47,435		$42,726
Net income attributable to HEICO		$118,379		$99,527		$42,461		$38,157
Net income per share attributable to HEICO shareholders:
Basic		$1.77		$1.49		$.63		$.57
Diluted		$1.74		$1.47		$.62		$.56

The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place as of November 1, 2014. The unaudited pro forma financial information includes adjustments to historical amounts such as additional amortization expense related to intangible assets acquired, increased interest expense associated with borrowings to finance the acquisition, the reclassification of acquisition costs associated with the purchase of Robertson from fiscal 2016 to fiscal 2015, and inventory purchase accounting adjustments charged to cost of sales as the inventory is sold.

3.     SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

(in thousands)	July 31, 2016			October 31, 2015
Accounts receivable		$192,875			$183,631
Less: Allowance for doubtful accounts	(3,258		)	(2,038		)
Accounts receivable, net		$189,617			$181,593

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Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts

(in thousands)	July 31, 2016			October 31, 2015
Costs incurred on uncompleted contracts		$31,831			$22,645
Estimated earnings	25,608			16,116
	57,439			38,761
Less: Billings to date	(48,652		)	(36,442		)
		$8,787			$2,319
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)		$10,628			$6,263
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)	(1,841		)	(3,944		)
		$8,787			$2,319

Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the nine and three months ended July 31, 2016 and 2015.

Inventories

(in thousands)	July 31, 2016			October 31, 2015
Finished products		$130,523			$119,262
Work in process	36,333			32,201
Materials, parts, assemblies and supplies	116,910			89,739
Contracts in process	4,111			4,521
Less: Billings to date	(1,198		)	(2,206		)
Inventories, net of valuation reserves		$286,679			$243,517

Contracts in process represents accumulated capitalized costs associated with fixed price contracts. Related progress billings and customer advances (“billings to date”) are classified as a reduction to contracts in process, if any, and any excess is included in accrued expenses and other liabilities.

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Property, Plant and Equipment

(in thousands)	July 31, 2016			October 31, 2015
Land		$5,092			$5,060
Buildings and improvements	75,732			70,626
Machinery, equipment and tooling	168,735			152,022
Construction in progress	10,189			4,668
	259,748			232,376
Less: Accumulated depreciation and amortization	(140,813		)	(126,706		)
Property, plant and equipment, net		$118,935			$105,670

Accrued Customer Rebates and Credits

The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $10.9 million and $8.1 million as of July 31, 2016 and October 31, 2015, respectively. The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2016 and 2015 was $8.3 million and $4.3 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended July 31, 2016 and 2015 was $3.1 million and $1.4 million, respectively.

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales for the nine and three months ended July 31, 2016 and 2015 is as follows (in thousands):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
R&D expenses		$32,666		$28,860		$12,674		$9,421

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Redeemable Noncontrolling Interests

The holders of equity interests in certain of the Company's subsidiaries have rights ("Put Rights") that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2025. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands):

	July 31, 2016		October 31, 2015
Redeemable at fair value		$73,553		$76,929
Redeemable based on a multiple of future earnings	14,353		14,353
Redeemable noncontrolling interests		$87,906		$91,282

During the second quarter of fiscal 2016, the holders of a 19.9% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2011 exercised their option to cause the Company to purchase their interest over a two-year period ending in fiscal 2017.  Accordingly, the Company’s ownership interest in the subsidiary increased to 90.05% effective March 2016. The purchase price of the redeemable noncontrolling interest acquired was paid using cash provided by operating activities.

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss for the nine months ended July 31, 2016 are as follows (in thousands):

	Foreign Currency Translation			Pension Benefit Obligation			Accumulated Other Comprehensive Loss
Balances as of October 31, 2015		($24,368	)		($712	)		($25,080	)
Unrealized gain	2,708			—			2,708
Balances as of July 31, 2016		($21,660	)		($712	)		($22,372	)

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4.     GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by operating segment for the nine months ended July 31, 2016 are as follows (in thousands):

	Segment					Consolidated Totals
	FSG			ETG
Balances as of October 31, 2015		$337,507			$429,132		$766,639
Goodwill acquired	—			98,580		98,580
Foreign currency translation adjustments	262			593		855
Adjustments to goodwill	(569		)	28		(541		)
Balances as of July 31, 2016		$337,200			$528,333		$865,533

The goodwill acquired pertains to the fiscal 2016 acquisitions described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities assumed. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Condensed Consolidated Statements of Comprehensive Income. The adjustments to goodwill represent immaterial measurement period adjustments to the purchase price allocation of certain fiscal 2015 acquisitions. The Company estimates that all of the goodwill acquired in fiscal 2016 will be deductible for income tax purposes.

Identifiable intangible assets consist of the following (in thousands):

	As of July 31, 2016							As of October 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing Assets:
Customer relationships		$248,704		($82,501	)		$166,203		$190,450		($63,461	)		$126,989
Intellectual property	140,091		(30,704		)	109,387		98,143		(22,912		)	75,231
Licenses	6,559		(2,174		)	4,385		4,200		(1,882		)	2,318
Non-compete agreements	814		(814		)	—		914		(914		)	—
Patents	774		(474		)	300		746		(447		)	299
Trade names	466		(67		)	399		166		(38		)	128
	397,408		(116,734		)	280,674		294,619		(89,654		)	204,965
Non-Amortizing Assets:
Trade names	96,154		—			96,154		67,628		—			67,628
		$493,562		($116,734	)		$376,828		$362,247		($89,654	)		$272,593

The increase in the gross carrying amount of customer relationships, intellectual property and amortizing and non-amortizing trade names as of July 31, 2016 compared to October 31, 2015 principally relates to such intangible assets recognized in connection with the fiscal 2016 acquisitions (see Note 2, Acquisitions).

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Amortization expense related to intangible assets for the nine months ended July 31, 2016 and 2015 was $27.0 million and $19.7 million, respectively. Amortization expense related to intangible assets for the three months ended July 31, 2016 and 2015 was $9.4 million and $6.6 million, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2016 is estimated to be $9.4 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $36.6 million in fiscal 2017, $34.6 million in fiscal 2018, $32.5 million in fiscal 2019, $29.8 million in fiscal 2020, $27.3 million in fiscal 2021, and $110.5 million thereafter.

5.     LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

	July 31, 2016			October 31, 2015
Borrowings under revolving credit facility		$507,743			$365,203
Capital leases	2,162			2,395
	509,905			367,598
Less: Current maturities of long-term debt	(335		)	(357		)
		$509,570			$367,241

As of July 31, 2016 and October 31, 2015, the weighted average interest rate on borrowings under the Company’s revolving credit facility was 1.7% and 1.3%, respectively. The revolving credit facility contains both financial and non-financial covenants. As of July 31, 2016, the Company was in compliance with all such covenants.

6.     INCOME TAXES

The Company's effective tax rate in the first nine months of fiscal 2016 increased to 30.9% from 30.6% in the first nine months of fiscal 2015. The increase principally reflects the benefits recognized in the first nine months of fiscal 2015 from a prior year tax return amendment for additional foreign tax credits related to R&D activities at one of the Company's foreign subsidiaries and higher net income attributable to noncontrolling interests in subsidiaries structured as partnerships. These increases were partially offset by the benefits recognized in the first nine months of fiscal 2016 of a larger income tax credit for qualified R&D activities resulting from the permanent extension of the U.S. federal R&D tax credit in December 2015 and a higher deduction for manufacturing activities mainly resulting from a fiscal 2016 acquisition.

The Company's effective tax rate in the third quarter of fiscal 2016 decreased to 30.5% from 32.0% in the third quarter of fiscal 2015. The decrease principally reflects the previously mentioned higher deduction for manufacturing activities and larger income tax credit for qualified R&D activities as well as the favorable impact of higher tax-exempt unrealized gains in the cash surrender value of life insurance policies related to the HEICO Leadership

16

Compensation Plan. These decreases were partially offset by the aforementioned benefit of additional foreign tax credits related to a prior year tax return amendment and higher net income attributable to noncontrolling interests in subsidiaries structured as partnerships recognized in the first nine months of fiscal 2015.

7.     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, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance		$—		$87,458		$—		$87,458
Equity securities	1,975		—		—		1,975
Mutual funds	1,737		—		—		1,737
Money market funds	1,514		—		—		1,514
Other	1,017		50		—		1,067
Total assets		$6,243		$87,508		$—		$93,751
Liabilities:
Contingent consideration		$—		$—		$18,777		$18,777

	As of October 31, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance		$—		$73,238		$—		$73,238
Equity securities	1,845		—		—		1,845
Mutual funds	1,665		—		—		1,665
Money market funds	3,832		—		—		3,832
Other	946		50		—		996
Total assets		$8,288		$73,288		$—		$81,576
Liabilities:
Contingent consideration		$—		$—		$21,405		$21,405

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The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan (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 Level 2 and valued using a market approach. Certain other assets of the LCP represent investments in money market funds that are classified within Level 1. The assets of the Company’s other deferred compensation plan are principally invested in equity securities and mutual funds that are classified within Level 1. The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $93.8 million as of July 31, 2016 and $81.6 million as of October 31, 2015, of which the LCP related assets were $89.0 million and $77.1 million as of July 31, 2016 and October 31, 2015, respectively. The related liabilities of the two deferred compensation plans are included within other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $92.7 million as of July 31, 2016 and $80.7 million as of October 31, 2015, of which the LCP related liability was $87.9 million and $76.2 million as of July 31, 2016 and October 31, 2015, respectively.

As part of the agreement to acquire certain assets of a company by the ETG in fiscal 2016, the Company may be obligated to pay contingent consideration of up to $2.0 million in aggregate during the five year period following the acquisition. As of July 31, 2016, the estimated fair value of the contingent consideration was $1.3 million.    

As part of the agreement to acquire a subsidiary by the FSG in fiscal 2015, the Company may be obligated to pay contingent consideration of up to €6.1 million per year, or €24.4 million in aggregate should the acquired entity meet certain earnings objectives during the first four years following the acquisition. During the third quarter of fiscal 2016, the Company paid €6.1 million, or $7.0 million, of contingent consideration based on the actual earnings of the acquired entity during the first year following the acquisition. As of July 31, 2016, the estimated fair value of the remaining contingent consideration was €15.7 million, or $17.5 million.

The estimated fair value of the contingent consideration arrangements described above are classified within Level 3 and were determined using a probability-based scenario analysis approach. Under this method, a set of discrete potential future subsidiary earnings was determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood was assigned to each discrete potential future earnings estimate and the resultant contingent consideration was calculated. The resulting probability-weighted contingent consideration amounts were discounted using a weighted average discount rate reflecting the credit risk of a market participant. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's condensed consolidated statements of operations.

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The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of July 31, 2016 were as follows:

	Fiscal 2016 Acquisition				Fiscal 2015 Acquisition
Compound annual revenue growth rate range	(3	%)	-	11%	4	%	-	17%
Weighted average discount rate	3.7%				1.7%

Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the nine months ended July 31, 2016 are as follows (in thousands):

Balance as of October 31, 2015		$21,405
Increase in accrued contingent consideration	2,635
Contingent consideration related to acquisition	1,225
Payment of contingent consideration	(6,960		)
Foreign currency transaction adjustments	472
Balance as of July 31, 2016		$18,777
Included in the accompanying Condensed Consolidated Balance Sheet under the following captions:
Accrued expenses and other current liabilities		$6,963
Other long-term liabilities	11,814
		$18,777

The Company recorded the increase in accrued contingent consideration and foreign currency transaction adjustments set forth in the table above within SG&A expenses in the Company's Condensed Consolidated Statement of Operations.

The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the nine months ended July 31, 2016.

The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of July 31, 2016 due to the relatively short maturity of the respective instruments. The carrying amount of long-term debt approximates fair value due to its variable interest rates.

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8.     NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS

The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
Numerator:
Net income attributable to HEICO		$111,930		$95,114		$42,002		$34,369
Denominator:
Weighted average common shares outstanding - basic	66,975		66,706		67,126		66,813
Effect of dilutive stock options	1,107		1,084		1,152		1,088
Weighted average common shares outstanding - diluted	68,082		67,790		68,278		67,901
Net income per share attributable to HEICO shareholders:
Basic		$1.67		$1.43		$.63		$.51
Diluted		$1.64		$1.40		$.62		$.51
Anti-dilutive stock options excluded	675		352		574		445

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9.    OPERATING SEGMENTS

Information on the Company’s two operating segments, the FSG and the ETG, for the nine and three months ended July 31, 2016 and 2015, respectively, is as follows (in thousands):

					Other, Primarily Corporate and Intersegment (1)			Consolidated Totals
	Segment
	FSG		ETG
Nine months ended July 31, 2016:
Net sales		$647,419		$372,933		($7,393	)		$1,012,959
Depreciation	8,973		5,854		166			14,993
Amortization	12,414		16,700		496			29,610
Operating income	118,757		89,280		(18,768		)	189,269
Capital expenditures	13,449		9,257		407			23,113
Nine months ended July 31, 2015:
Net sales		$591,431		$277,439		($8,894	)		$859,976
Depreciation	7,927		5,036		112			13,075
Amortization	9,636		11,859		496			21,991
Operating income	107,498		65,996		(12,790		)	160,704
Capital expenditures	9,000		4,457		310			13,767
Three months ended July 31, 2016:
Net sales		$222,553		$136,215		($2,684	)		$356,084
Depreciation	3,049		1,878		54			4,981
Amortization	4,169		6,105		165			10,439
Operating income	41,969		33,609		(5,724		)	69,854
Capital expenditures	5,034		2,516		17			7,567
Three months ended July 31, 2015:
Net sales		$206,599		$97,223		($3,452	)		$300,370
Depreciation	2,834		1,688		41			4,563
Amortization	3,568		3,629		165			7,362
Operating income	39,250		24,372		(5,112		)	58,510
Capital expenditures	2,523		1,600		184			4,307
(1) Intersegment activity principally consists of net sales from the ETG to the FSG.

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Total assets by operating segment as of July 31, 2016 and October 31, 2015 are as follows (in thousands):

					Other, Primarily Corporate		Consolidated Totals
	Segment
	FSG		ETG
Total assets as of July 31, 2016		$867,968		$1,010,480		$138,872		$2,017,320
Total assets as of October 31, 2015	868,218		746,018		122,151		1,736,387

10. COMMITMENTS AND CONTINGENCIES

Guarantees

As of July 31, 2016, the Company has arranged for standby letters of credit aggregating $2.5 million, which are supported by its revolving credit facility. One letter of credit in the amount of $1.5 million is to satisfy the security requirement of the insurance company used by the Company for potential workers' compensation claims and the remainder pertain to performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries.

Product Warranty

Changes in the Company’s product warranty liability for the nine months ended July 31, 2016 and 2015, respectively, are as follows (in thousands):

	Nine months ended July 31,
	2016			2015
Balances as of beginning of fiscal year		$3,203			$4,079
Accruals for warranties	1,765			579
Acquired warranty liabilities	—			35
Warranty claims settled	(1,869		)	(1,634		)
Balances as of July 31		$3,099			$3,059

Litigation

The Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

This discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and notes thereto included herein. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates if different assumptions were used or different events ultimately transpire.

Our critical accounting policies, which require management to make judgments about matters that are inherently uncertain, are described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Critical Accounting Policies” in our Annual Report on Form 10-K for the year ended October 31, 2015. There have been no material changes to our critical accounting policies during the nine months ended July 31, 2016.

Our business is comprised of two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. and its subsidiaries.

Our results of operations for the nine and three months ended July 31, 2016 have been

affected by the fiscal 2015 acquisitions as further detailed in Note 2, Acquisitions, of the Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended October 31, 2015 and the fiscal 2016 acquisition as further detailed in Note 2, Acquisitions, of the Notes to Condensed Consolidated Financial Statements of this quarterly report.

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Results of Operations

The following table sets forth the results of our operations, net sales and operating income by segment and the percentage of net sales represented by the respective items in our Condensed Consolidated Statements of Operations (in thousands):

	Nine months ended July 31,						Three months ended July 31,
	2016			2015			2016			2015
Net sales		$1,012,959			$859,976			$356,084			$300,370
Cost of sales	633,151			552,593			222,501			192,278
Selling, general and administrative expenses	190,539			146,679			63,729			49,582
Total operating costs and expenses	823,690			699,272			286,230			241,860
Operating income		$189,269			$160,704			$69,854			$58,510
Net sales by segment:
Flight Support Group		$647,419			$591,431			$222,553			$206,599
Electronic Technologies Group	372,933			277,439			136,215			97,223
Intersegment sales	(7,393		)	(8,894		)	(2,684		)	(3,452		)
		$1,012,959			$859,976			$356,084			$300,370
Operating income by segment:
Flight Support Group		$118,757			$107,498			$41,969			$39,250
Electronic Technologies Group	89,280			65,996			33,609			24,372
Other, primarily corporate	(18,768		)	(12,790		)	(5,724		)	(5,112		)
		$189,269			$160,704			$69,854			$58,510
Net sales	100.0		%	100.0		%	100.0		%	100.0		%
Gross profit	37.5		%	35.7		%	37.5		%	36.0		%
Selling, general and administrative expenses	18.8		%	17.1		%	17.9		%	16.5		%
Operating income	18.7		%	18.7		%	19.6		%	19.5		%
Interest expense	.6		%	.4		%	.6		%	.4		%
Other income (expense)	—		%	—		%	—		%	(.1		%)
Income tax expense	5.6		%	5.6		%	5.8		%	6.1		%
Net income attributable to noncontrolling interests	1.5		%	1.7		%	1.4		%	1.5		%
Net income attributable to HEICO	11.0		%	11.1		%	11.8		%	11.4		%

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Comparison of First Nine Months of Fiscal 2016 to First Nine Months of Fiscal 2015

Net Sales

Our consolidated net sales in the first nine months of fiscal 2016 increased by 18% to a record $1,013.0 million, up from net sales of $860.0 million in the first nine months of fiscal 2015. The increase in consolidated net sales principally reflects an increase of $95.5 million (a 34% increase) to a record $373.0 million in net sales within the ETG as well as an increase of $56.0 million (a 9% increase) to a record $647.4 million in net sales within the FSG. The net sales increase in the ETG reflects net sales of $80.4 million contributed by our fiscal 2016 and 2015 acquisitions as well as organic growth of 6%. The ETG's organic growth resulted mainly from an aggregate net sales increase of $14.8 million from certain space and medical products. The net sales increase in the FSG reflects net sales of $38.3 million contributed by our fiscal 2015 acquisitions as well as organic growth of 3%. The FSG's organic growth is principally attributed to increased demand and new product offerings within our aftermarket replacement parts and specialty products lines, resulting in net sales increases of $14.1 million and $9.7 million, respectively. These increases were partially offset by $6.1 million of lower organic net sales from our repair and overhaul parts and services product line. Our repair and overhaul parts and services product line was adversely impacted by the mix of products repaired during the first nine months of fiscal 2016, which required less extensive repair and overhaul services, in addition to softer demand from our South American market. The FSG experienced organic revenue growth of 6% in the first nine months of fiscal 2016 excluding our repair and overhaul parts and services product line. Sales price changes were not a significant contributing factor to the FSG and ETG net sales growth in the first nine months of fiscal 2016.

Gross Profit and Operating Expenses

Our consolidated gross profit margin increased to 37.5% in the first nine months of fiscal 2016, up from 35.7% in the first nine months of fiscal 2015, principally reflecting an increase of 1.5% and .7% in the FSG's and ETG's gross profit margin, respectively. The increase in the FSG's gross profit margin is principally attributed to increased net sales and a more favorable product mix within our aftermarket replacement parts and specialty products product lines, partially offset by a less favorable product mix within our repair and overhaul parts and services product line. Total new product research and development expenses included within our consolidated cost of sales were $32.7 million in the first nine months of fiscal 2016 compared to $28.9 million in the first nine months of fiscal 2015.

Our consolidated selling, general and administrative (“SG&A”) expenses were $190.5 million and $146.7 million in the first nine months of fiscal 2016 and 2015, respectively. The increase in consolidated SG&A expenses principally reflects $18.9 million attributable to the fiscal 2016 and 2015 acquisitions, inclusive of $3.1 million of acquisition costs associated with a fiscal 2016 acquisition, $9.2 million of higher performance-based compensation expense, a $3.8 million impact from changes in the estimated fair value of contingent consideration associated with a prior year acquisition and a $3.2 million impact from foreign currency transaction adjustments on borrowings denominated in Euros under our revolving credit facility.

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Our consolidated SG&A expenses as a percentage of net sales were 18.8% and 17.1% in the first nine months of fiscal 2016 and 2015, respectively. The increase in consolidated SG&A expenses as a percentage of net sales principally reflects a .7% impact from higher performance-based compensation expense and a .4%, .4% and .3% impact from the aforementioned changes in the estimated fair value of contingent consideration, foreign currency transaction adjustments on borrowings denominated in Euros and acquisition costs, respectively.

Operating Income

Our consolidated operating income in the first nine months of fiscal 2016 increased by 18% to a record $189.3 million, up from $160.7 million in the first nine months of fiscal 2015. As a percentage of net sales, our consolidated operating income was 18.7% in both the first nine months of fiscal 2016 and 2015. The increase in consolidated operating income is primarily attributed to a $23.3 million increase (a 35% increase) to a record $89.3 million in operating income of the ETG as well as an $11.3 million increase (a 10% increase) to a record $118.8 million in operating income of the FSG, partially offset by a $6.0 million increase in corporate expenses principally reflecting higher performance-based compensation expense and the previously mentioned foreign currency transaction adjustments on borrowings denominated in Euros. The increase in operating income of the ETG is mainly attributed to the previously mentioned net sales growth, partially offset by an aggregate $8.0 million increase in amortization expense of intangible assets and higher performance-based compensation expense. The increase in operating income of the FSG is mainly attributed to the previously mentioned net sales growth and improved gross profit margin, partially offset by a $4.4 million increase in performance-based compensation expense, the previously mentioned changes in the estimated fair value of contingent consideration and a $2.7 million increase in amortization expense of intangible assets.

Interest Expense

Interest expense increased to $6.2 million in the first nine months of fiscal 2016 from $3.3 million in the first nine months of fiscal 2015. The increase was due to a higher weighted average balance outstanding under our revolving credit facility associated with our fiscal 2015 and 2016 acquisitions as well as higher interest rates.

Other Income

Other income in the first nine months of fiscal 2016 and 2015 was not material.

Income Tax Expense

Our effective tax rate in the first nine months of fiscal 2016 increased to 30.9% from 30.6% in the first nine months of fiscal 2015. The increase principally reflects the benefits recognized in the first nine months of fiscal 2015 from a prior year tax return amendment for additional foreign tax credits related to R&D activities at one of our foreign subsidiaries and higher net income attributable to noncontrolling interests in subsidiaries structured as partnerships. These increases were partially offset by the benefits recognized in the first nine

26

months of fiscal 2016 of a larger income tax credit for qualified R&D activities resulting from the permanent extension of the U.S. federal R&D tax credit in December 2015 and a higher deduction for manufacturing activities mainly resulting from a fiscal 2016 acquisition.

Net Income Attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests relates to the 20% noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace and the noncontrolling interests held by others in certain subsidiaries of the FSG and ETG. Net income attributable to noncontrolling interests was $14.7 million in the first nine months of fiscal 2016 compared to $14.4 million in the first nine months of fiscal 2015.

Net Income Attributable to HEICO

Net income attributable to HEICO increased to a record $111.9 million, or $1.64 per diluted share, in the first nine months of fiscal 2016, up from $95.1 million, or $1.40 per diluted share, in the first nine months of fiscal 2015 principally reflecting the previously mentioned increased net sales and operating income.

Comparison of Third Quarter of Fiscal 2016 to Third Quarter of Fiscal 2015

Net Sales

Our consolidated net sales in the third quarter of fiscal 2016 increased by 19% to a record $356.1 million, as compared to net sales of $300.4 million in the third quarter of fiscal 2015. The increase in consolidated net sales principally reflects an increase of $39.0 million (a 40% increase) to a record $136.2 million in net sales within the ETG as well as an increase of $16.0 million (an 8% increase) to a record $222.6 million in net sales within the FSG. The net sales increase in the ETG reflects net sales of $38.5 million contributed by our fiscal 2016 and 2015 acquisitions as well as organic growth of 1%. The ETG's organic growth resulted mainly from an aggregate net sales increase of $8.0 million from certain space and medical products, partially offset by a $7.8 million net sales decrease from lower demand for certain defense products. The net sales increase in the FSG reflects net sales of $8.1 million contributed by our fiscal 2015 acquisitions as well as organic growth of 4%. The FSG's organic growth is principally attributed to increased demand and new product offerings within our aftermarket replacement parts and specialty products lines, resulting in net sales increases of $4.9 million and $1.9 million, respectively. Additionally, the FSG’s organic growth reflects a $1.0 million increase from improved customer demand within the repair and overhaul parts and services product line. The FSG experienced organic revenue growth of 5% in the third quarter of fiscal 2016 excluding our repair and overhaul parts and services product line. Sales price changes were not a significant contributing factor to the ETG and FSG net sales growth in the third quarter of fiscal 2016.

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Gross Profit and Operating Expenses

Our consolidated gross profit margin increased to 37.5% in the third quarter of fiscal 2016 as compared to 36.0% in the third quarter of fiscal 2015, principally reflecting an increase of 2.0% in FSG's gross profit margin, partially offset by a 1.7% decrease in the ETG's gross profit margin. The increase in the FSG's gross profit margin is principally attributed to a more favorable product mix and increased net sales within our aftermarket replacement parts and specialty products product lines, partially offset by a less favorable product mix within our repair and overhaul parts and services product line. The decrease in the ETG's gross profit margin is principally attributed a less favorable product mix for certain of our space products, partially offset by increased net sales for certain of our defense products. Total new product research and development expenses included within our consolidated cost of sales were $12.7 million in the third quarter of fiscal 2016 compared to $9.5 million in the third quarter of fiscal 2015.

Our consolidated SG&A expenses were $63.7 million and $49.6 million in the third quarter of fiscal 2016 and 2015, respectively. The increase in consolidated SG&A expenses principally reflects $4.4 million attributable to the fiscal 2016 and 2015 acquisitions, $4.4 million of higher performance-based compensation expense and $1.4 million attributable to changes in the estimated fair value of accrued contingent consideration associated with a prior year acquisition.

Our consolidated SG&A expenses as a percentage of net sales were 17.9% and 16.5% in the third quarter of fiscal 2016 and 2015, respectively. The increase in consolidated SG&A expenses as a percentage of net sales principally reflects a 1.1% impact from higher performance-based compensation expense.

Operating Income

Our consolidated operating income in the third quarter of fiscal 2016 increased by 19% to a record $69.9 million, up from $58.5 million in the third quarter of fiscal 2015. As a percentage of net sales, our consolidated operating income was 19.6% and 19.5% in the third quarter of fiscal 2016 and 2015, respectively. The increase in consolidated operating income is primarily attributed to a $9.2 million increase (a 38% increase) to a record $33.6 million in operating income of the ETG as well as a $2.7 million increase (a 7% increase) to $42.0 million in operating income of the FSG. The increase in operating income of the ETG is mainly attributed to the previously mentioned net sales growth, partially offset by an aggregate $3.5 million increase in amortization expense of intangible assets and higher performance-based compensation expense. The increase in operating income of the FSG is mainly attributed to the previously mentioned improved gross profit margin and net sales growth, partially offset by an aggregate $3.9 million impact from higher performance-based compensation expense and the previously mentioned change in the estimated fair value of accrued contingent consideration.

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Interest Expense

Interest expense increased to $2.3 million in the third quarter of fiscal 2016 from $1.1 million in the third quarter of fiscal 2015. The increase was due to a higher weighted average balance outstanding under our revolving credit facility associated with our fiscal 2015 and 2016 acquisitions as well as higher interest rates.

Other Income (Expense)

Other income (expense) in the third quarter of fiscal 2016 and 2015 was not material.

Income Tax Expense

Our effective tax rate in the third quarter of fiscal 2016 decreased to 30.5% from 32.0% in the third quarter of fiscal 2015. The decrease principally reflects the benefits recognized in the third quarter of fiscal 2016 from a higher deduction for manufacturing activities mainly resulting from a fiscal 2016 acquisition and a larger income tax credit for qualified R&D activities resulting from the permanent extension of the U.S. federal R&D tax credit in December 2015 as well as higher tax-exempt unrealized gains in the cash surrender value of life insurance policies related to the HEICO Leadership Compensation Plan. These decreases were partially offset by the benefits recognized in the third quarter of fiscal 2015 from a prior year tax return amendment for additional foreign tax credits related to R&D activities at one of our foreign subsidiaries and higher net income attributable to noncontrolling interests in subsidiaries structured as partnerships.

Net Income Attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests relates to the 20% noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace and the noncontrolling interests held by others in certain subsidiaries of the FSG and ETG. Net income attributable to noncontrolling interests was $5.0 million in the third quarter of fiscal 2016 compared to $4.6 million in the third quarter of fiscal 2015.

Net Income Attributable to HEICO

Net income attributable to HEICO increased to a record $42.0 million, or $.62 per diluted share, in the third quarter of fiscal 2016, up from $34.4 million, or $.51 per diluted share, in the third quarter of fiscal 2015 principally reflecting the previously mentioned increased net sales and operating income.

29

Outlook

As we look ahead to the remainder of fiscal 2016, we anticipate organic growth within our commercial aviation aftermarket replacement parts and specialty products product lines moderated by softer demand for certain component repair and overhaul parts and services. Further, we foresee modest full year organic growth within the ETG based on current forecasted product demand. During the remainder of fiscal 2016, we plan to continue our focus on new product development, further market penetration, executing our acquisition strategies and maintaining our financial strength. Based on our current economic visibility, we are increasing our estimated consolidated fiscal 2016 year-over-year growth in net income to 13% - 15%, up from our prior growth estimate of 12% - 14%. In addition, we continue to estimate consolidated fiscal 2016 year-over-year growth in net sales to approximate 15% - 17%.

Liquidity and Capital Resources

Our principal uses of cash include acquisitions, capital expenditures, cash dividends, distributions to noncontrolling interests and working capital needs. Capital expenditures in fiscal 2016 are anticipated to approximate $32 million. We finance our activities primarily from our operating and financing activities, including borrowings under our revolving credit facility.    

The revolving credit facility contains both financial and non-financial covenants. As of July 31, 2016, we were in compliance with all such covenants. As of July 31, 2016, our net debt to shareholders’ equity ratio was 47.7%, with net debt (total debt less cash and cash equivalents) of $482.7 million.

Based on our current outlook, we believe that our net cash provided by operating activities and available borrowings under our revolving credit facility will be sufficient to fund cash requirements for at least the next twelve months.

Operating Activities

Net cash provided by operating activities was $172.4 million in the first nine months of fiscal 2016 and consisted primarily of net income from consolidated operations of $126.6 million and depreciation and amortization expense of $44.6 million (a non-cash item).

Net cash provided by operating activities increased by $51.1 million in the first nine months of fiscal 2016 from $121.3 million in the first nine months of fiscal 2015. The increase is principally attributed to a $17.1 million increase in net income from consolidated operations, a reduction in net working capital spend of $17.6 million principally related to the timing of payments of certain accrued expenses, as well as a $9.5 million increase in depreciation and amortization expense (a non-cash item), a $4.9 million increase in foreign currency transaction adjustments, and a $3.0 million increase in accrued contingent consideration (a non-cash item).

30

Investing Activities

Net cash used in investing activities totaled $289.9 million in the first nine months of fiscal 2016 and related primarily to acquisitions of $263.8 million as well as capital expenditures of $23.1 million. Further details regarding our fiscal 2016 acquisitions may be found in Note 2, Acquisitions, of the Notes to Condensed Consolidated Financial Statements.

Financing Activities

Net cash provided by financing activities in the first nine months of fiscal 2016 totaled $110.0 million. During the first nine months of fiscal 2016, we borrowed $260.0 million on our revolving credit facility principally to fund an acquisition. Additionally, we made payments on our revolving credit facility aggregating $118.0 million, made distributions to noncontrolling interests aggregating $16.2 million, paid $10.7 million in cash dividends on our common stock, paid $7.0 million of contingent consideration and paid $3.6 million to acquire certain noncontrolling interests, partially offset by $4.8 million in proceeds from stock option exercises in the first nine months of fiscal 2016.

Contractual Obligations

There have not been any material changes to the amounts presented in the table of contractual obligations that was included in our Annual Report on Form 10-K for the year ended October 31, 2015.

Off-Balance Sheet Arrangements

Guarantees

As of July, 2016, we have arranged for standby letters of credit aggregating $2.5 million, which are supported by our revolving credit facility. One letter of credit in the amount of $1.5 million is to satisfy the security requirement of the insurance company we use for potential workers' compensation claims and the remainder pertain to performance guarantees related to customer contracts entered into by certain of our subsidiaries.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers,” which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09, as amended, is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2017, or in fiscal 2019 for

31

HEICO. Early adoption in the year preceding the effective date is permitted. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. We are currently evaluating which transition method we will elect and the effect the adoption of this guidance will have on our consolidated results of operations, financial position and cash flows.

In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory," which requires entities to measure inventories at the lower of cost or net realizable value. Under current guidance, inventories are measured at the lower of cost or market. ASU 2015-11 must be applied prospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. We are currently evaluating the effect, if any, the adoption of this guidance will have on our consolidated results of operations, financial position and cash flows.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 may be applied either prospectively or retrospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. We are currently evaluating which transition method we will elect. The adoption of this guidance will only effect the presentation of deferred taxes in our consolidated statement of financial position.

In February 2016, the FASB issued ASU 2016-02, "Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. We are currently evaluating the effect the adoption of this guidance will have on our consolidated results of operations, financial position and cash flows.

In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects related to accounting for share-based payment transactions. Under ASU 2016-09, all excess tax benefits and tax deficiencies are to be recognized in the statement of operations as a component of income tax expense rather than as capital in excess of par value, and the tax effects will be presented within the statement of cash flows as an operating cash flow rather than as a financing activity. ASU 2016-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The recognition of the tax effects in the statement of operations, as well as related changes to the computation of diluted earnings per share are to be applied prospectively and entities may elect to apply the change in the presentation of the statement of cash flows either prospectively or retrospectively. We are currently evaluating the effect the adoption of this guidance will have on our consolidated results of operations, financial position and cash flows.

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Forward-Looking Statements

Certain statements in this report constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained herein that are not clearly historical in nature may be forward-looking and the words “anticipate,” “believe,” “expect,” “estimate” and similar expressions are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in press releases, written statements or other documents filed with the Securities and Exchange Commission or in communications and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, concerning our operations, economic performance and financial condition are subject to risks, uncertainties and contingencies. We have based these forward-looking statements on our current expectations and projections about future events. All forward-looking statements involve risks and uncertainties, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Also, forward-looking statements are based upon management’s estimates of fair values and of future costs, using currently available information. Therefore, actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include: lower demand for commercial air travel or airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase to our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development costs and delay sales; our ability to make acquisitions and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues; and defense budget cuts, which could reduce our defense-related revenue. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have not been any material changes in our assessment of HEICO’s sensitivity to market risk that was disclosed in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended October 31, 2015.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this quarterly report. Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that HEICO’s disclosure controls and procedures are effective as of the end of the period covered by this quarterly report.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the third quarter ended July 31, 2016 that have materially affected, or are reasonably likely to materially affect, HEICO's internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 6.    EXHIBITS

Exhibit	Description
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. *
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. *
32.1	Section 1350 Certification of Chief Executive Officer. **
32.2	Section 1350 Certification of Chief Financial Officer. **
101.INS	XBRL Instance Document. *
101.SCH	XBRL Taxonomy Extension Schema Document. *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document. *
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document. *
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document. *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document. *

* Filed herewith.

**    Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		HEICO CORPORATION
Date:	August 26, 2016	By:	/s/ CARLOS L. MACAU, JR.
			Carlos L. Macau, Jr. Executive Vice President - Chief Financial Officer and Treasurer (Principal Financial Officer)
		By:	/s/ STEVEN M. WALKER
			Steven M. Walker Chief Accounting Officer and Assistant Treasurer (Principal Accounting Officer)

36

EXHIBIT INDEX

Exhibit	Description
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.
32.1	Section 1350 Certification of Chief Executive Officer.
32.2	Section 1350 Certification of Chief Financial Officer.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Laurans A. Mendelson, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of HEICO Corporation;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 26, 2016	/s/ LAURANS A. MENDELSON
		Laurans A. Mendelson
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Carlos L. Macau, Jr., certify that:

(1) I have reviewed this quarterly report on Form 10-Q of HEICO Corporation;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 26, 2016	/s/ CARLOS L. MACAU, JR.
		Carlos L. Macau, Jr.
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

SECTION 1350 CERTIFICATION

In connection with the Quarterly Report of HEICO Corporation (the “Company”) on Form 10-Q for the period ended July 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Laurans A. Mendelson, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 26, 2016	/s/ LAURANS A. MENDELSON
		Laurans A. Mendelson
		Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

SECTION 1350 CERTIFICATION

In connection with the Quarterly Report of HEICO Corporation (the “Company”) on Form 10-Q for the period ended July 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Carlos L. Macau, Jr., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 26, 2016	/s/ CARLOS L. MACAU, JR.
		Carlos L. Macau, Jr.
		Chief Financial Officer
		(Principal Financial Officer)

XML

DOCUMENT AND ENTITY INFORMATION - $ / shares	9 Months Ended
	Jul. 31, 2016	Aug. 25, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2016
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2016
Entity Information [Line Items]
Entity Registrant Name	HEICO CORPORATION
Address	3000 Taft Street, Hollywood, Florida
State	Florida
Zip Code	33021
Entity Central Index Key	0000046619
Entity Tax Identification Number	650341002
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	hei
Heico Common Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		26,964,256
Entity Common Stock Par Value	$ 0.01
Common Class A [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		40,288,525
Entity Common Stock Par Value	$ 0.01

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Current assets:
Cash and cash equivalents	$ 27,191	$ 33,603
Accounts receivable, net	189,617	181,593
Inventories, net	286,679	243,517
Prepaid expenses and other current assets	11,308	9,369
Deferred income taxes	38,873	35,530
Total current assets	553,668	503,612
Property, plant and equipment, net	118,935	105,670
Goodwill	865,533	766,639
Intangible assets, net	376,828	272,593
Deferred income taxes	590	847
Other assets	101,766	87,026
Total assets	2,017,320	1,736,387
Current liabilities:
Current maturities of long-term debt	335	357
Trade accounts payable	65,312	64,682
Accrued expenses and other current liabilities	115,938	100,155
Income taxes payable	4,672	3,193
Total current liabilities	186,257	168,387
Long-term debt, net of current maturities	509,570	367,241
Deferred income taxes	107,687	110,588
Other long-term liabilities	113,630	105,618
Total liabilities	917,144	751,834
Commitments and contingencies
Redeemable noncontrolling interests	87,906	91,282
Shareholders' equity:
Common Stock	270	269
Capital in excess of par value	302,730	286,220
Deferred compensation obligation	1,635	1,783
HEICO stock held by irrevocable trust	(1,635)	(1,783)
Accumulated other comprehensive loss	(22,372)	(25,080)
Retained earnings	649,131	548,054
Total HEICO shareholders' equity	930,162	809,863
Noncontrolling interests	82,108	83,408
Total shareholders' equity	1,012,270	893,271
Total liabilities and equity	2,017,320	1,736,387
Class A Common Stock [Member]
Shareholders' equity:
Common Stock	$ 403	$ 400

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED [PARENTHETICAL] - $ / shares shares in Thousands	Jul. 31, 2016	Oct. 31, 2015
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	26,964	26,906
Common stock, shares outstanding	26,964	26,906
Class A Common Stock [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000	75,000
Common stock, shares issued	40,274	39,967
Common stock, shares outstanding	40,274	39,967

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Net sales	$ 356,084	$ 300,370	$ 1,012,959	$ 859,976
Operating costs and expenses:
Cost of sales	222,501	192,278	633,151	552,593
Selling, general and administrative expenses	63,729	49,582	190,539	146,679
Total operating costs and expenses	286,230	241,860	823,690	699,272
Operating income	69,854	58,510	189,269	160,704
Interest expense	(2,294)	(1,088)	(6,194)	(3,346)
Other income	16	(184)	154	375
Income before income taxes and noncontrolling interests	67,576	57,238	183,229	157,733
Income tax expense	20,600	18,300	56,600	48,200
Net income from consolidated operations	46,976	38,938	126,629	109,533
Less: Net income attributable to noncontrolling interests	4,974	4,569	14,699	14,419
Net income attributable to HEICO	$ 42,002	$ 34,369	$ 111,930	$ 95,114
Net income per share attributable to HEICO shareholders:
Basic (in dollars per share)	$ 0.63	$ 0.51	$ 1.67	$ 1.43
Diluted (in dollars per share)	$ 0.62	$ 0.51	$ 1.64	$ 1.40
Weighted average number of common shares outstanding:
Basic (in shares)	67,126	66,813	66,975	66,706
Diluted (in shares)	68,278	67,901	68,082	67,790
Cash dividends per share (in dollars per share)	$ 0.08	$ 0.07	$ 0.16	$ 0.14

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Net income from consolidated operations	$ 46,976	$ 38,938	$ 126,629	$ 109,533
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,639)	(5,442)	2,909	(17,177)
Total other comprehensive income (loss)	(3,639)	(5,442)	2,909	(17,177)
Comprehensive income from consolidated operations	43,337	33,496	129,538	92,356
Less: Comprehensive income attributable to noncontrolling interests	4,974	4,569	14,699	14,419
Less: Foreign currency translation adjustments attributable to noncontrolling interests	(353)	(94)	201	(904)
Comprehensive income attributable to noncontrolling interests	4,621	4,475	14,900	13,515
Comprehensive income attributable to HEICO	$ 38,716	$ 29,021	$ 114,638	$ 78,841

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CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands	Total	Redeemable Noncontrolling Interests [Member]	Common Stock [Member]	Common Stock [Member] Class A Common Stock [Member]	Capital In Excess Of Par Value [Member]	Deferred Compensation Obligation [Member]	HEICO Stock Held By Irrevocable Trust [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total Shareholders Equity [Member]
Starting Balance at Oct. 31, 2014			$ 268	$ 397	$ 269,351	$ 1,138	$ (1,138)	$ (8,289)	$ 437,757	$ 75,135	$ 774,619
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	$ 92,356	$ 3,880						(16,273)	95,114		88,476
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	13,515									9,635
Cash dividends									(9,343)		(9,343)
Issuance of common stock to Savings and Investment Plan			1		5,090						5,091
Share-based compensation expense					4,394						4,394
Proceeds from stock option exercises				2	3,256						3,258
Tax benefit from stock option exercises					1,404						1,404
Distributions to noncontrolling interests		(3,623)								(3,791)	(3,791)
Adjustments to redemption amount of redeemable noncontrolling interests		7,522							(7,522)		(7,522)
Deferred compensation obligation						158
Deferred compensation obligation							(158)
Other									1		(4)
Adjustments to Additional Paid in Capital, Other					(5)
Ending Balance at Jul. 31, 2015			269	399	283,490	1,296	(1,296)	(24,562)	516,007	80,979	856,582
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2014		39,966
Increase (Decrease) in Temporary Equity [Roll Forward]
Noncontrolling Interest, Increase from Business Combination		17,076
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2015		64,821
Starting Balance at Oct. 31, 2015	893,271		269	400	286,220	1,783	(1,783)	(25,080)	548,054	83,408	893,271
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	129,538	7,431						2,708	111,930		122,107
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	14,900									7,469
Cash dividends									(10,724)		(10,724)
Issuance of common stock to Savings and Investment Plan			1	1	5,913						5,915
Share-based compensation expense					4,905						4,905
Proceeds from stock option exercises				2	4,829						4,831
Tax benefit from stock option exercises					867						867
Distributions to noncontrolling interests		(7,337)								(8,819)	(8,819)
Adjustments to redemption amount of redeemable noncontrolling interests		129							(129)		(129)
Deferred compensation obligation							148
Deferred compensation obligation						(148)
Other										50	46
Adjustments to Additional Paid in Capital, Other					(4)
Ending Balance at Jul. 31, 2016	1,012,270		$ 270	$ 403	$ 302,730	$ 1,635	$ (1,635)	$ (22,372)	$ 649,131	$ 82,108	$ 1,012,270
Starting Balance, Redeemable Noncontrolling Interests at Oct. 31, 2015	91,282	91,282
Increase (Decrease) in Temporary Equity [Roll Forward]
Acquisition of noncontrolling interests		(3,599)
Ending Balance, Redeemable Noncontrolling Interests at Jul. 31, 2016	$ 87,906	$ 87,906

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CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME - UNAUDITED [PARENTHETICAL] - $ / shares	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Cash dividends per share (in dollars per share)	$ 0.08	$ 0.07	$ 0.16	$ 0.14

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Operating Activities:
Net income from consolidated operations	$ 126,629	$ 109,533
Adjustments to reconcile net income from consolidated operations to net cash provided by (used in) operating activities:
Depreciation and amortization	44,603	35,066
Employer contributions to HEICO Savings and Investment Plan	5,219	4,482
Share-based compensation expense	4,905	4,394
Change in value of contingent consideration	2,635	(412)
Foreign currency transaction adjustments, net	876	(3,981)
Deferred income tax provision (benefit)	(6,053)	(4,909)
Tax benefit from stock option exercises	867	1,404
Excess tax benefit from stock option exercises	(880)	(1,404)
Changes in operating assets and liabilities, net of acquisitions:
Change in accounts receivable	(2,974)	4,482
Change in inventories	(13,914)	(10,653)
Change in prepaid expenses and other current assets	(1,943)	(548)
Change in trade accounts payable	(2,629)	(6,570)
Change in accrued expenses and other current liabilities	15,630	(7,977)
Change in income taxes payable	1,775	(401)
Other	(2,330)	(1,217)
Net cash provided by operating activities	172,416	121,289
Investing Activities:
Acquisitions, net of cash acquired	(263,811)	(56,198)
Capital expenditures	(23,113)	(13,767)
Other	(3,005)	171
Net cash used in investing activities	(289,929)	(69,794)
Financing Activities:
Borrowings on revolving credit facility	260,000	68,696
Payments on revolving credit facility	(118,000)	(95,000)
Distributions to noncontrolling interests	(16,156)	(7,414)
Cash dividends paid	(10,724)	(9,343)
Business Combination, Consideration Transferred	(6,960)
Acquisitions of noncontrolling interests	(3,599)	0
Proceeds from stock option exercises	4,831	3,258
Excess tax benefit from stock option exercises	880	1,404
Other	(272)	(295)
Net cash (used in) provided by financing activities	110,000	(38,694)
Effect of exchange rate changes on cash	1,101	(1,333)
Net (decrease) increase in cash and cash equivalents	(6,412)	11,468
Cash and cash equivalents at beginning of year	33,603	$ 20,229
Cash and cash equivalents at end of period	$ 27,191

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jul. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies [Text Block]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2015. The October 31, 2015 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the nine months ended July 31, 2016 are not necessarily indicative of the results which may be expected for the entire fiscal year.

The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries.

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09, as amended, is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2017, or in fiscal 2019 for HEICO. Early adoption in the year preceding the effective date is permitted. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating which transition method it will elect and the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory," which requires entities to measure inventories at the lower of cost or net realizable value. Under current guidance, inventories are measured at the lower of cost or market. ASU 2015-11 must be applied prospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect, if any, the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 may be applied either prospectively or retrospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The Company is currently evaluating which transition method it will elect. The adoption of this guidance will only effect the presentation of deferred taxes in the Company's consolidated statement of financial position.

In February 2016, the FASB issued ASU 2016-02, "Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects related to accounting for share-based payment transactions. Under ASU 2016-09, all excess tax benefits and tax deficiencies are to be recognized in the statement of operations as a component of income tax expense rather than as capital in excess of par value, and the tax effects will be presented within the statement of cash flows as an operating cash flow rather than as a financing activity. ASU 2016-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The recognition of the tax effects in the statement of operations, as well as related changes to the computation of diluted earnings per share are to be applied prospectively and entities may elect to apply the change in the presentation of the statement of cash flows either prospectively or retrospectively. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

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ACQUISITIONS

9 Months Ended

Jul. 31, 2016

Business Combinations [Abstract]

Acquisitions [Text Block]

ACQUISITIONS

In December 2015, the Company, through a subsidiary of HEICO Electronic, acquired certain assets of a company that designs and manufactures underwater locator beacons used to locate aircraft cockpit voice recorders, flight data recorders, marine ship voyage recorders and other devices which have been submerged under water. The total consideration includes an accrual of $1.2 million representing the estimated fair value of contingent consideration the Company may be obligated to pay in aggregate during the first five years following the acquisition. The maximum amount of contingent consideration that the Company could be required to pay is $2.0 million. See Note 7, Fair Value Measurements, for additional information regarding the Company's contingent consideration obligation. The purchase price of this acquisition was paid using cash provided by operating activities and the total consideration for the acquisition is not material or significant to the Company’s condensed consolidated financial statements.

On January 11, 2016, the Company, through HEICO Electronic, acquired all of the limited liability company interests of Robertson Fuel Systems, LLC ("Robertson"). The purchase price of this acquisition was paid in cash using proceeds from the Company’s revolving credit facility. Robertson is a world leader in the design and production of mission-extending, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft. The Company believes that this acquisition is consistent with HEICO’s practice of acquiring outstanding niche designers and manufacturers of critical components in the defense industry and will further enable the Company to broaden its product offerings, technologies and customer base.

The following table summarizes the total consideration for the acquisition of Robertson (in thousands):

Cash paid		$256,293
Less: cash acquired	(3,271		)
Total consideration		$253,022

The following table summarizes the allocation of the total consideration for the acquisition of Robertson to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

Assets acquired:
Goodwill		$91,705
Customer relationships	55,100
Intellectual property	39,600
Trade name	28,400
Inventories	27,955
Property, plant and equipment	7,200
Accounts receivable	5,000
Other assets	1,883
Total assets acquired, excluding cash	256,843
Liabilities assumed:
Accounts payable	3,174
Accrued expenses	647
Total liabilities assumed	3,821
Net assets acquired, excluding cash		$253,022

The allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities assumed is preliminary until the Company obtains final information regarding their fair values. The amortization period of the customer relationships, intellectual property and trade name acquired is 15 years, 22 years and indefinite, respectively.

The primary items that generated the goodwill recognized were the premiums paid by the Company for the future earnings potential of Robertson and the value of its assembled workforce that do not qualify for separate recognition. Acquisition costs associated with the purchase of Robertson totaled $3.1 million for the nine months ended July 31, 2016 and were recorded as a component of selling, general and administrative ("SG&A") expenses in the Company's Condensed Consolidated Statements of Operations. The operating results of Robertson were included in the Company’s results of operations from the effective acquisition date. The Company's consolidated net sales and net income attributable to HEICO for the nine months ended July 31, 2016, includes approximately $60.1 million and $8.8 million, respectively, from the acquisition of Robertson, exclusive of the aforementioned acquisition costs. The Company's consolidated net sales and net income attributable to HEICO for the three months ended July 31, 2016, includes approximately $30.6 million and $5.0 million, respectively, from the acquisition of Robertson.

The following table presents unaudited pro forma financial information for the nine and three months ended July 31, 2016 and July 31, 2015 as if the acquisition of Robertson had occurred as of November 1, 2014 (in thousands):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
Net sales		$1,034,293		$921,563		$356,084		$325,527
Net income from consolidated operations		$133,078		$113,946		$47,435		$42,726
Net income attributable to HEICO		$118,379		$99,527		$42,461		$38,157
Net income per share attributable to HEICO shareholders:
Basic		$1.77		$1.49		$.63		$.57
Diluted		$1.74		$1.47		$.62		$.56

The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisition had taken place as of November 1, 2014. The unaudited pro forma financial information includes adjustments to historical amounts such as additional amortization expense related to intangible assets acquired, increased interest expense associated with borrowings to finance the acquisition, the reclassification of acquisition costs associated with the purchase of Robertson from fiscal 2016 to fiscal 2015, and inventory purchase accounting adjustments charged to cost of sales as the inventory is sold.

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SELECTED FINANCIAL STATEMENT INFORMATION

9 Months Ended

Jul. 31, 2016

Selected Financial Statement Information [Abstract]

Selected Financial Statement Information [Text Block]

SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable

(in thousands)	July 31, 2016			October 31, 2015
Accounts receivable		$192,875			$183,631
Less: Allowance for doubtful accounts	(3,258		)	(2,038		)
Accounts receivable, net		$189,617			$181,593

Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts

(in thousands)	July 31, 2016			October 31, 2015
Costs incurred on uncompleted contracts		$31,831			$22,645
Estimated earnings	25,608			16,116
	57,439			38,761
Less: Billings to date	(48,652		)	(36,442		)
		$8,787			$2,319
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)		$10,628			$6,263
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)	(1,841		)	(3,944		)
		$8,787			$2,319

Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the nine and three months ended July 31, 2016 and 2015.

Inventories

(in thousands)	July 31, 2016			October 31, 2015
Finished products		$130,523			$119,262
Work in process	36,333			32,201
Materials, parts, assemblies and supplies	116,910			89,739
Contracts in process	4,111			4,521
Less: Billings to date	(1,198		)	(2,206		)
Inventories, net of valuation reserves		$286,679			$243,517

Contracts in process represents accumulated capitalized costs associated with fixed price contracts. Related progress billings and customer advances (“billings to date”) are classified as a reduction to contracts in process, if any, and any excess is included in accrued expenses and other liabilities.

Property, Plant and Equipment

(in thousands)	July 31, 2016			October 31, 2015
Land		$5,092			$5,060
Buildings and improvements	75,732			70,626
Machinery, equipment and tooling	168,735			152,022
Construction in progress	10,189			4,668
	259,748			232,376
Less: Accumulated depreciation and amortization	(140,813		)	(126,706		)
Property, plant and equipment, net		$118,935			$105,670

Accrued Customer Rebates and Credits

The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $10.9 million and $8.1 million as of July 31, 2016 and October 31, 2015, respectively. The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2016 and 2015 was $8.3 million and $4.3 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended July 31, 2016 and 2015 was $3.1 million and $1.4 million, respectively.

Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales for the nine and three months ended July 31, 2016 and 2015 is as follows (in thousands):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
R&D expenses		$32,666		$28,860		$12,674		$9,421

Redeemable Noncontrolling Interests

The holders of equity interests in certain of the Company's subsidiaries have rights ("Put Rights") that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2025. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the "Redemption Amount") be at fair value or a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands):

	July 31, 2016		October 31, 2015
Redeemable at fair value		$73,553		$76,929
Redeemable based on a multiple of future earnings	14,353		14,353
Redeemable noncontrolling interests		$87,906		$91,282

During the second quarter of fiscal 2016, the holders of a 19.9% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2011 exercised their option to cause the Company to purchase their interest over a two-year period ending in fiscal 2017.  Accordingly, the Company’s ownership interest in the subsidiary increased to 90.05% effective March 2016. The purchase price of the redeemable noncontrolling interest acquired was paid using cash provided by operating activities.

Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss for the nine months ended July 31, 2016 are as follows (in thousands):

	Foreign Currency Translation			Pension Benefit Obligation			Accumulated Other Comprehensive Loss
Balances as of October 31, 2015		($24,368	)		($712	)		($25,080	)
Unrealized gain	2,708			—			2,708
Balances as of July 31, 2016		($21,660	)		($712	)		($22,372	)

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GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jul. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill by operating segment for the nine months ended July 31, 2016 are as follows (in thousands):

	Segment					Consolidated Totals
	FSG			ETG
Balances as of October 31, 2015		$337,507			$429,132		$766,639
Goodwill acquired	—			98,580		98,580
Foreign currency translation adjustments	262			593		855
Adjustments to goodwill	(569		)	28		(541		)
Balances as of July 31, 2016		$337,200			$528,333		$865,533

The goodwill acquired pertains to the fiscal 2016 acquisitions described in Note 2, Acquisitions, and represents the residual value after the allocation of the total consideration to the tangible and identifiable intangible assets acquired and liabilities assumed. Foreign currency translation adjustments are included in other comprehensive income (loss) in the Company's Condensed Consolidated Statements of Comprehensive Income. The adjustments to goodwill represent immaterial measurement period adjustments to the purchase price allocation of certain fiscal 2015 acquisitions. The Company estimates that all of the goodwill acquired in fiscal 2016 will be deductible for income tax purposes.

Identifiable intangible assets consist of the following (in thousands):

	As of July 31, 2016							As of October 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing Assets:
Customer relationships		$248,704		($82,501	)		$166,203		$190,450		($63,461	)		$126,989
Intellectual property	140,091		(30,704		)	109,387		98,143		(22,912		)	75,231
Licenses	6,559		(2,174		)	4,385		4,200		(1,882		)	2,318
Non-compete agreements	814		(814		)	—		914		(914		)	—
Patents	774		(474		)	300		746		(447		)	299
Trade names	466		(67		)	399		166		(38		)	128
	397,408		(116,734		)	280,674		294,619		(89,654		)	204,965
Non-Amortizing Assets:
Trade names	96,154		—			96,154		67,628		—			67,628
		$493,562		($116,734	)		$376,828		$362,247		($89,654	)		$272,593

The increase in the gross carrying amount of customer relationships, intellectual property and amortizing and non-amortizing trade names as of July 31, 2016 compared to October 31, 2015 principally relates to such intangible assets recognized in connection with the fiscal 2016 acquisitions (see Note 2, Acquisitions).

Amortization expense related to intangible assets for the nine months ended July 31, 2016 and 2015 was $27.0 million and $19.7 million, respectively. Amortization expense related to intangible assets for the three months ended July 31, 2016 and 2015 was $9.4 million and $6.6 million, respectively. Amortization expense related to intangible assets for the remainder of fiscal 2016 is estimated to be $9.4 million. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $36.6 million in fiscal 2017, $34.6 million in fiscal 2018, $32.5 million in fiscal 2019, $29.8 million in fiscal 2020, $27.3 million in fiscal 2021, and $110.5 million thereafter.

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LONG-TERM DEBT

9 Months Ended

Jul. 31, 2016

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

	July 31, 2016			October 31, 2015
Borrowings under revolving credit facility		$507,743			$365,203
Capital leases	2,162			2,395
	509,905			367,598
Less: Current maturities of long-term debt	(335		)	(357		)
		$509,570			$367,241

As of July 31, 2016 and October 31, 2015, the weighted average interest rate on borrowings under the Company’s revolving credit facility was 1.7% and 1.3%, respectively. The revolving credit facility contains both financial and non-financial covenants. As of July 31, 2016, the Company was in compliance with all such covenants.

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INCOME TAXES

9 Months Ended

Jul. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The Company's effective tax rate in the first nine months of fiscal 2016 increased to 30.9% from 30.6% in the first nine months of fiscal 2015. The increase principally reflects the benefits recognized in the first nine months of fiscal 2015 from a prior year tax return amendment for additional foreign tax credits related to R&D activities at one of the Company's foreign subsidiaries and higher net income attributable to noncontrolling interests in subsidiaries structured as partnerships. These increases were partially offset by the benefits recognized in the first nine months of fiscal 2016 of a larger income tax credit for qualified R&D activities resulting from the permanent extension of the U.S. federal R&D tax credit in December 2015 and a higher deduction for manufacturing activities mainly resulting from a fiscal 2016 acquisition.

The Company's effective tax rate in the third quarter of fiscal 2016 decreased to 30.5% from 32.0% in the third quarter of fiscal 2015. The decrease principally reflects the previously mentioned higher deduction for manufacturing activities and larger income tax credit for qualified R&D activities as well as the favorable impact of higher tax-exempt unrealized gains in the cash surrender value of life insurance policies related to the HEICO Leadership Compensation Plan. These decreases were partially offset by the aforementioned benefit of additional foreign tax credits related to a prior year tax return amendment and higher net income attributable to noncontrolling interests in subsidiaries structured as partnerships recognized in the first nine months of fiscal 2015.

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FAIR VALUE MEASUREMENTS

9 Months Ended

Jul. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

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, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance		$—		$87,458		$—		$87,458
Equity securities	1,975		—		—		1,975
Mutual funds	1,737		—		—		1,737
Money market funds	1,514		—		—		1,514
Other	1,017		50		—		1,067
Total assets		$6,243		$87,508		$—		$93,751
Liabilities:
Contingent consideration		$—		$—		$18,777		$18,777

	As of October 31, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance		$—		$73,238		$—		$73,238
Equity securities	1,845		—		—		1,845
Mutual funds	1,665		—		—		1,665
Money market funds	3,832		—		—		3,832
Other	946		50		—		996
Total assets		$8,288		$73,288		$—		$81,576
Liabilities:
Contingent consideration		$—		$—		$21,405		$21,405

The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan (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 Level 2 and valued using a market approach. Certain other assets of the LCP represent investments in money market funds that are classified within Level 1. The assets of the Company’s other deferred compensation plan are principally invested in equity securities and mutual funds that are classified within Level 1. The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $93.8 million as of July 31, 2016 and $81.6 million as of October 31, 2015, of which the LCP related assets were $89.0 million and $77.1 million as of July 31, 2016 and October 31, 2015, respectively. The related liabilities of the two deferred compensation plans are included within other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $92.7 million as of July 31, 2016 and $80.7 million as of October 31, 2015, of which the LCP related liability was $87.9 million and $76.2 million as of July 31, 2016 and October 31, 2015, respectively.

As part of the agreement to acquire certain assets of a company by the ETG in fiscal 2016, the Company may be obligated to pay contingent consideration of up to $2.0 million in aggregate during the five year period following the acquisition. As of July 31, 2016, the estimated fair value of the contingent consideration was $1.3 million.    

As part of the agreement to acquire a subsidiary by the FSG in fiscal 2015, the Company may be obligated to pay contingent consideration of up to €6.1 million per year, or €24.4 million in aggregate should the acquired entity meet certain earnings objectives during the first four years following the acquisition. During the third quarter of fiscal 2016, the Company paid €6.1 million, or $7.0 million, of contingent consideration based on the actual earnings of the acquired entity during the first year following the acquisition. As of July 31, 2016, the estimated fair value of the remaining contingent consideration was €15.7 million, or $17.5 million.

The estimated fair value of the contingent consideration arrangements described above are classified within Level 3 and were determined using a probability-based scenario analysis approach. Under this method, a set of discrete potential future subsidiary earnings was determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability of likelihood was assigned to each discrete potential future earnings estimate and the resultant contingent consideration was calculated. The resulting probability-weighted contingent consideration amounts were discounted using a weighted average discount rate reflecting the credit risk of a market participant. Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's condensed consolidated statements of operations.

The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of July 31, 2016 were as follows:

	Fiscal 2016 Acquisition				Fiscal 2015 Acquisition
Compound annual revenue growth rate range	(3	%)	-	11%	4	%	-	17%
Weighted average discount rate	3.7%				1.7%

Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the nine months ended July 31, 2016 are as follows (in thousands):

Balance as of October 31, 2015		$21,405
Increase in accrued contingent consideration	2,635
Contingent consideration related to acquisition	1,225
Payment of contingent consideration	(6,960		)
Foreign currency transaction adjustments	472
Balance as of July 31, 2016		$18,777
Included in the accompanying Condensed Consolidated Balance Sheet under the following captions:
Accrued expenses and other current liabilities		$6,963
Other long-term liabilities	11,814
		$18,777

The Company recorded the increase in accrued contingent consideration and foreign currency transaction adjustments set forth in the table above within SG&A expenses in the Company's Condensed Consolidated Statement of Operations.

The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the nine months ended July 31, 2016.

The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of July 31, 2016 due to the relatively short maturity of the respective instruments. The carrying amount of long-term debt approximates fair value due to its variable interest rates.

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NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS

9 Months Ended

Jul. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS

The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
Numerator:
Net income attributable to HEICO		$111,930		$95,114		$42,002		$34,369
Denominator:
Weighted average common shares outstanding - basic	66,975		66,706		67,126		66,813
Effect of dilutive stock options	1,107		1,084		1,152		1,088
Weighted average common shares outstanding - diluted	68,082		67,790		68,278		67,901
Net income per share attributable to HEICO shareholders:
Basic		$1.67		$1.43		$.63		$.51
Diluted		$1.64		$1.40		$.62		$.51
Anti-dilutive stock options excluded	675		352		574		445

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OPERATING SEGMENTS

9 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

OPERATING SEGMENTS

Information on the Company’s two operating segments, the FSG and the ETG, for the nine and three months ended July 31, 2016 and 2015, respectively, is as follows (in thousands):

					Other, Primarily Corporate and Intersegment (1)			Consolidated Totals
	Segment
	FSG		ETG
Nine months ended July 31, 2016:
Net sales		$647,419		$372,933		($7,393	)		$1,012,959
Depreciation	8,973		5,854		166			14,993
Amortization	12,414		16,700		496			29,610
Operating income	118,757		89,280		(18,768		)	189,269
Capital expenditures	13,449		9,257		407			23,113
Nine months ended July 31, 2015:
Net sales		$591,431		$277,439		($8,894	)		$859,976
Depreciation	7,927		5,036		112			13,075
Amortization	9,636		11,859		496			21,991
Operating income	107,498		65,996		(12,790		)	160,704
Capital expenditures	9,000		4,457		310			13,767
Three months ended July 31, 2016:
Net sales		$222,553		$136,215		($2,684	)		$356,084
Depreciation	3,049		1,878		54			4,981
Amortization	4,169		6,105		165			10,439
Operating income	41,969		33,609		(5,724		)	69,854
Capital expenditures	5,034		2,516		17			7,567
Three months ended July 31, 2015:
Net sales		$206,599		$97,223		($3,452	)		$300,370
Depreciation	2,834		1,688		41			4,563
Amortization	3,568		3,629		165			7,362
Operating income	39,250		24,372		(5,112		)	58,510
Capital expenditures	2,523		1,600		184			4,307
(1) Intersegment activity principally consists of net sales from the ETG to the FSG.

Total assets by operating segment as of July 31, 2016 and October 31, 2015 are as follows (in thousands):

					Other, Primarily Corporate		Consolidated Totals
	Segment
	FSG		ETG
Total assets as of July 31, 2016		$867,968		$1,010,480		$138,872		$2,017,320
Total assets as of October 31, 2015	868,218		746,018		122,151		1,736,387

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jul. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

Guarantees

As of July 31, 2016, the Company has arranged for standby letters of credit aggregating $2.5 million, which are supported by its revolving credit facility. One letter of credit in the amount of $1.5 million is to satisfy the security requirement of the insurance company used by the Company for potential workers' compensation claims and the remainder pertain to performance guarantees related to customer contracts entered into by certain of the Company's subsidiaries.

Product Warranty

Changes in the Company’s product warranty liability for the nine months ended July 31, 2016 and 2015, respectively, are as follows (in thousands):

	Nine months ended July 31,
	2016			2015
Balances as of beginning of fiscal year		$3,203			$4,079
Accruals for warranties	1,765			579
Acquired warranty liabilities	—			35
Warranty claims settled	(1,869		)	(1,634		)
Balances as of July 31		$3,099			$3,059

Litigation

The Company is involved in various legal actions arising in the normal course of business. Based upon the Company’s and its legal counsel’s evaluations of any claims or assessments, management is of the opinion that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, financial position or cash flows.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Jul. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation [Text Block]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2015. The October 31, 2015 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statements of shareholders' equity and statements of cash flows for such interim periods presented. The results of operations for the nine months ended July 31, 2016 are not necessarily indicative of the results which may be expected for the entire fiscal year.

The Company has two operating segments: the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries.

New Accounting Pronouncements [Text Block]

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," which provides a comprehensive new revenue recognition model that will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity will recognize revenue when it transfers promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU 2014-09, as amended, is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2017, or in fiscal 2019 for HEICO. Early adoption in the year preceding the effective date is permitted. ASU 2014-09 shall be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating which transition method it will elect and the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory," which requires entities to measure inventories at the lower of cost or net realizable value. Under current guidance, inventories are measured at the lower of cost or market. ASU 2015-11 must be applied prospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The Company is currently evaluating the effect, if any, the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 may be applied either prospectively or retrospectively and is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The Company is currently evaluating which transition method it will elect. The adoption of this guidance will only effect the presentation of deferred taxes in the Company's consolidated statement of financial position.

In February 2016, the FASB issued ASU 2016-02, "Leases," which requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018, or in fiscal 2020 for HEICO. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects related to accounting for share-based payment transactions. Under ASU 2016-09, all excess tax benefits and tax deficiencies are to be recognized in the statement of operations as a component of income tax expense rather than as capital in excess of par value, and the tax effects will be presented within the statement of cash flows as an operating cash flow rather than as a financing activity. ASU 2016-09 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, or in fiscal 2018 for HEICO. Early adoption is permitted. The recognition of the tax effects in the statement of operations, as well as related changes to the computation of diluted earnings per share are to be applied prospectively and entities may elect to apply the change in the presentation of the statement of cash flows either prospectively or retrospectively. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated results of operations, financial position and cash flows.

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ACQUISITIONS ACQUISITIONS (Tables) - Robertson [Member] - Electronic Technologies Group [Member]

9 Months Ended

Jul. 31, 2016

Business Acquisition [Line Items]

Schedule of Fair Value of Total Consideration [Table Text Block]

The following table summarizes the total consideration for the acquisition of Robertson (in thousands):

Cash paid		$256,293
Less: cash acquired	(3,271		)
Total consideration		$253,022

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the allocation of the total consideration for the acquisition of Robertson to the estimated fair values of the tangible and identifiable intangible assets acquired and liabilities assumed (in thousands):

Assets acquired:
Goodwill		$91,705
Customer relationships	55,100
Intellectual property	39,600
Trade name	28,400
Inventories	27,955
Property, plant and equipment	7,200
Accounts receivable	5,000
Other assets	1,883
Total assets acquired, excluding cash	256,843
Liabilities assumed:
Accounts payable	3,174
Accrued expenses	647
Total liabilities assumed	3,821
Net assets acquired, excluding cash		$253,022

Business Acquisition, Pro Forma Information [Table Text Block]

The following table presents unaudited pro forma financial information for the nine and three months ended July 31, 2016 and July 31, 2015 as if the acquisition of Robertson had occurred as of November 1, 2014 (in thousands):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
Net sales		$1,034,293		$921,563		$356,084		$325,527
Net income from consolidated operations		$133,078		$113,946		$47,435		$42,726
Net income attributable to HEICO		$118,379		$99,527		$42,461		$38,157
Net income per share attributable to HEICO shareholders:
Basic		$1.77		$1.49		$.63		$.57
Diluted		$1.74		$1.47		$.62		$.56

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SELECTED FINANCIAL STATEMENT INFORMATION (Tables)

9 Months Ended

Jul. 31, 2016

Selected Financial Statement Information [Abstract]

Schedule of Accounts Receivable [Table Text Block]

Accounts Receivable

(in thousands)	July 31, 2016			October 31, 2015
Accounts receivable		$192,875			$183,631
Less: Allowance for doubtful accounts	(3,258		)	(2,038		)
Accounts receivable, net		$189,617			$181,593

Schedule of Costs in Excess of Billings and Billings in Excess of Costs [Table Text Block]

Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts

(in thousands)	July 31, 2016			October 31, 2015
Costs incurred on uncompleted contracts		$31,831			$22,645
Estimated earnings	25,608			16,116
	57,439			38,761
Less: Billings to date	(48,652		)	(36,442		)
		$8,787			$2,319
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)		$10,628			$6,263
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)	(1,841		)	(3,944		)
		$8,787			$2,319

Schedule of Inventories [Table Text Block]

Inventories

(in thousands)	July 31, 2016			October 31, 2015
Finished products		$130,523			$119,262
Work in process	36,333			32,201
Materials, parts, assemblies and supplies	116,910			89,739
Contracts in process	4,111			4,521
Less: Billings to date	(1,198		)	(2,206		)
Inventories, net of valuation reserves		$286,679			$243,517

Schedule of Property, Plant and Equipment [Table Text Block]

Property, Plant and Equipment

(in thousands)	July 31, 2016			October 31, 2015
Land		$5,092			$5,060
Buildings and improvements	75,732			70,626
Machinery, equipment and tooling	168,735			152,022
Construction in progress	10,189			4,668
	259,748			232,376
Less: Accumulated depreciation and amortization	(140,813		)	(126,706		)
Property, plant and equipment, net		$118,935			$105,670

Schedule of Research and Development Expenses [Table Text Block]

The amount of new product research and development ("R&D") expenses included in cost of sales for the nine and three months ended July 31, 2016 and 2015 is as follows (in thousands):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
R&D expenses		$32,666		$28,860		$12,674		$9,421

Schedule of Redeemable Noncontrolling Interests [Table Text Block]

Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands):

	July 31, 2016		October 31, 2015
Redeemable at fair value		$73,553		$76,929
Redeemable based on a multiple of future earnings	14,353		14,353
Redeemable noncontrolling interests		$87,906		$91,282

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Changes in the components of accumulated other comprehensive loss for the nine months ended July 31, 2016 are as follows (in thousands):

	Foreign Currency Translation			Pension Benefit Obligation			Accumulated Other Comprehensive Loss
Balances as of October 31, 2015		($24,368	)		($712	)		($25,080	)
Unrealized gain	2,708			—			2,708
Balances as of July 31, 2016		($21,660	)		($712	)		($22,372	)

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

9 Months Ended

Jul. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

Changes in the carrying amount of goodwill by operating segment for the nine months ended July 31, 2016 are as follows (in thousands):

	Segment					Consolidated Totals
	FSG			ETG
Balances as of October 31, 2015		$337,507			$429,132		$766,639
Goodwill acquired	—			98,580		98,580
Foreign currency translation adjustments	262			593		855
Adjustments to goodwill	(569		)	28		(541		)
Balances as of July 31, 2016		$337,200			$528,333		$865,533

Schedule Of Identifiable Intangible Assets [Table Text Block]

Identifiable intangible assets consist of the following (in thousands):

	As of July 31, 2016							As of October 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing Assets:
Customer relationships		$248,704		($82,501	)		$166,203		$190,450		($63,461	)		$126,989
Intellectual property	140,091		(30,704		)	109,387		98,143		(22,912		)	75,231
Licenses	6,559		(2,174		)	4,385		4,200		(1,882		)	2,318
Non-compete agreements	814		(814		)	—		914		(914		)	—
Patents	774		(474		)	300		746		(447		)	299
Trade names	466		(67		)	399		166		(38		)	128
	397,408		(116,734		)	280,674		294,619		(89,654		)	204,965
Non-Amortizing Assets:
Trade names	96,154		—			96,154		67,628		—			67,628
		$493,562		($116,734	)		$376,828		$362,247		($89,654	)		$272,593

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LONG-TERM DEBT (Tables)

9 Months Ended

Jul. 31, 2016

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Long-term debt consists of the following (in thousands):

	July 31, 2016			October 31, 2015
Borrowings under revolving credit facility		$507,743			$365,203
Capital leases	2,162			2,395
	509,905			367,598
Less: Current maturities of long-term debt	(335		)	(357		)
		$509,570			$367,241

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Jul. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

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, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance		$—		$87,458		$—		$87,458
Equity securities	1,975		—		—		1,975
Mutual funds	1,737		—		—		1,737
Money market funds	1,514		—		—		1,514
Other	1,017		50		—		1,067
Total assets		$6,243		$87,508		$—		$93,751
Liabilities:
Contingent consideration		$—		$—		$18,777		$18,777

	As of October 31, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance		$—		$73,238		$—		$73,238
Equity securities	1,845		—		—		1,845
Mutual funds	1,665		—		—		1,665
Money market funds	3,832		—		—		3,832
Other	946		50		—		996
Total assets		$8,288		$73,288		$—		$81,576
Liabilities:
Contingent consideration		$—		$—		$21,405		$21,405

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The Level 3 inputs used to derive the estimated fair value of the Company's contingent consideration liability as of July 31, 2016 were as follows:

	Fiscal 2016 Acquisition				Fiscal 2015 Acquisition
Compound annual revenue growth rate range	(3	%)	-	11%	4	%	-	17%
Weighted average discount rate	3.7%				1.7%

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Changes in the Company’s contingent consideration liability measured at fair value on a recurring basis using unobservable inputs (Level 3) for the nine months ended July 31, 2016 are as follows (in thousands):

Balance as of October 31, 2015		$21,405
Increase in accrued contingent consideration	2,635
Contingent consideration related to acquisition	1,225
Payment of contingent consideration	(6,960		)
Foreign currency transaction adjustments	472
Balance as of July 31, 2016		$18,777
Included in the accompanying Condensed Consolidated Balance Sheet under the following captions:
Accrued expenses and other current liabilities		$6,963
Other long-term liabilities	11,814
		$18,777

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NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables)

9 Months Ended

Jul. 31, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows (in thousands, except per share data):

	Nine months ended July 31,				Three months ended July 31,
	2016		2015		2016		2015
Numerator:
Net income attributable to HEICO		$111,930		$95,114		$42,002		$34,369
Denominator:
Weighted average common shares outstanding - basic	66,975		66,706		67,126		66,813
Effect of dilutive stock options	1,107		1,084		1,152		1,088
Weighted average common shares outstanding - diluted	68,082		67,790		68,278		67,901
Net income per share attributable to HEICO shareholders:
Basic		$1.67		$1.43		$.63		$.51
Diluted		$1.64		$1.40		$.62		$.51
Anti-dilutive stock options excluded	675		352		574		445

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OPERATING SEGMENTS (Tables)

9 Months Ended

Jul. 31, 2016

Segment Reporting [Abstract]

Schedule Of Segment Reporting Information By Segment [Table Text Block]

Information on the Company’s two operating segments, the FSG and the ETG, for the nine and three months ended July 31, 2016 and 2015, respectively, is as follows (in thousands):

					Other, Primarily Corporate and Intersegment (1)			Consolidated Totals
	Segment
	FSG		ETG
Nine months ended July 31, 2016:
Net sales		$647,419		$372,933		($7,393	)		$1,012,959
Depreciation	8,973		5,854		166			14,993
Amortization	12,414		16,700		496			29,610
Operating income	118,757		89,280		(18,768		)	189,269
Capital expenditures	13,449		9,257		407			23,113
Nine months ended July 31, 2015:
Net sales		$591,431		$277,439		($8,894	)		$859,976
Depreciation	7,927		5,036		112			13,075
Amortization	9,636		11,859		496			21,991
Operating income	107,498		65,996		(12,790		)	160,704
Capital expenditures	9,000		4,457		310			13,767
Three months ended July 31, 2016:
Net sales		$222,553		$136,215		($2,684	)		$356,084
Depreciation	3,049		1,878		54			4,981
Amortization	4,169		6,105		165			10,439
Operating income	41,969		33,609		(5,724		)	69,854
Capital expenditures	5,034		2,516		17			7,567
Three months ended July 31, 2015:
Net sales		$206,599		$97,223		($3,452	)		$300,370
Depreciation	2,834		1,688		41			4,563
Amortization	3,568		3,629		165			7,362
Operating income	39,250		24,372		(5,112		)	58,510
Capital expenditures	2,523		1,600		184			4,307
(1) Intersegment activity principally consists of net sales from the ETG to the FSG.

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

Total assets by operating segment as of July 31, 2016 and October 31, 2015 are as follows (in thousands):

					Other, Primarily Corporate		Consolidated Totals
	Segment
	FSG		ETG
Total assets as of July 31, 2016		$867,968		$1,010,480		$138,872		$2,017,320
Total assets as of October 31, 2015	868,218		746,018		122,151		1,736,387

XML

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Jul. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

Changes in the Company’s product warranty liability for the nine months ended July 31, 2016 and 2015, respectively, are as follows (in thousands):

	Nine months ended July 31,
	2016			2015
Balances as of beginning of fiscal year		$3,203			$4,079
Accruals for warranties	1,765			579
Acquired warranty liabilities	—			35
Warranty claims settled	(1,869		)	(1,634		)
Balances as of July 31		$3,099			$3,059

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ACQUISITIONS ACQUISITIONS (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Business Acquisition [Line Items]
Cash paid, net	$ 263,811	$ 56,198
Electronic Technologies Group [Member] | Robertson [Member]
Business Acquisition [Line Items]
Cash paid	256,293
Cash acquired	(3,271)
Cash paid, net	$ 253,022

XML

ACQUISITIONS ACQUISITIONS (Details 2) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Assets acquired [Abstract]
Goodwill	$ 865,533	$ 766,639
Electronic Technologies Group [Member]
Assets acquired [Abstract]
Goodwill	528,333	$ 429,132
Electronic Technologies Group [Member] | Robertson [Member]
Assets acquired [Abstract]
Goodwill	91,705
Inventories	27,955
Property, plant and equipment	7,200
Accounts receivable	5,000
Other assets	1,883
Total assets acquired, excluding cash	256,843
Liabilities assumed [Abstract]
Accounts payable	3,174
Accrued expenses	647
Total liabilities assumed	3,821
Net assets acquired, excluding cash	253,022
Customer Relationships [Member] | Electronic Technologies Group [Member] | Robertson [Member]
Assets acquired [Abstract]
Finite-Lived Intangibles	55,100
Intellectual Property [Member] | Electronic Technologies Group [Member] | Robertson [Member]
Assets acquired [Abstract]
Finite-Lived Intangibles	39,600
Trade Names [Member] | Electronic Technologies Group [Member] | Robertson [Member]
Assets acquired [Abstract]
Identifiable intangible assets	$ 28,400

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ACQUISITIONS ACQUISITIONS (Details 3) - Electronic Technologies Group [Member] - Robertson [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Business Acquisition [Line Items]
Net sales	$ 356,084	$ 325,527	$ 1,034,293	$ 921,563
Net income from consolidated operations	47,435	42,726	133,078	113,946
Net income attributable to parent	$ 42,461	$ 38,157	$ 118,379	$ 99,527
Net income per share attributable to parent shareholders
Basic	$ 0.63	$ 0.57	$ 1.77	$ 1.49
Diluted	$ 0.62	$ 0.56	$ 1.74	$ 1.47

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ACQUISITIONS (Details Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Business Acquisition [Line Items]
Contingent consideration	$ 18,777		$ 18,777		$ 21,405
Revenue, Net	356,084	$ 300,370	1,012,959	$ 859,976
Net income attributable to HEICO	42,002	$ 34,369	$ 111,930	$ 95,114
Electronic Technologies Group [Member] | Certain Assets [Member]
Business Acquisition [Line Items]
Effective Date of Acquisition			Dec. 31, 2015
Contingent consideration	1,200		$ 1,200
Description of Acquired Entity			designs and manufactures underwater locator beacons used to locate aircraft cockpit voice recorders, flight data recorders, marine ship voyage recorders and other devices which have been submerged under water
Maximum amount of contingent consideration	2,000		$ 2,000
Electronic Technologies Group [Member] | Robertson [Member]
Business Acquisition [Line Items]
Name of Acquired Entity			Robertson Fuel Systems, LLC
Effective Date of Acquisition			Jan. 11, 2016
Description of Acquired Entity			Robertson is a world leader in the design and production of mission-extending, crashworthy and ballistically self-sealing auxiliary fuel systems for military rotorcraft.
Acquisition costs	3,100		$ 3,100
Revenue, Net	30,600		60,100
Net income attributable to HEICO	$ 5,000		$ 8,800
Customer Relationships [Member] | Electronic Technologies Group [Member] | Robertson [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			15 years
Intellectual Property [Member] | Electronic Technologies Group [Member] | Robertson [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			22 years

XML

SELECTED FINANCIAL STATEMENT INFORMATION (Accounts Receivable) (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 192,875	$ 183,631
Less: Allowance for doubtful accounts	(3,258)	(2,038)
Accounts receivable, net	$ 189,617	$ 181,593

XML

SELECTED FINANCIAL STATEMENT INFORMATION (Costs and Estimated Earnings on Uncompleted POC Contracts) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jul. 31, 2016	Oct. 31, 2015
Costs incurred on uncompleted contracts	$ 31,831	$ 22,645
Estimated Earnings	25,608	16,116
Estimated Revenue on Completed Percentage-of-Completion Contracts	57,439	38,761
Billed Contracts Receivable	(48,652)	(36,442)
Unbilled Contracts Receivable	8,787	2,319
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions:
Accounts receivable, net (costs and estimated earnings in excess of billings)	10,628	6,263
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)	(1,841)	(3,944)
Unbilled Contracts Receivable	$ 8,787	$ 2,319

XML

SELECTED FINANCIAL STATEMENT INFORMATION (Inventories) (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Inventory [Line Items]
Finished products	$ 130,523	$ 119,262
Work in process	36,333	32,201
Materials, parts, assemblies and supplies	116,910	89,739
Contracts in process	4,111	4,521
Less: Billings to date	(1,198)	(2,206)
Inventories, net of valuation reserves	$ 286,679	$ 243,517

XML

SELECTED FINANCIAL STATEMENT INFORMATION (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Property, Plant and Equipment [Line Items]
Land	$ 5,092	$ 5,060
Buildings and improvements	75,732	70,626
Machinery, equipment and tooling	168,735	152,022
Construction in progress	10,189	4,668
Property, plant and equipment, gross	259,748	232,376
Less: Accumulated depreciation and amortization	(140,813)	(126,706)
Property, plant and equipment, net	$ 118,935	$ 105,670

XML

SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Research and Development Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Selected Financial Statement Information (Details) [Abstract]
R&D expenses	$ 12,674	$ 9,421	$ 32,666	$ 28,860

XML

SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Redeemable Noncontrolling Interest [Line Items]
Redeemable at fair value	$ 73,553	$ 76,929
Redeemable noncontrolling interests	87,906	91,282
Maximum [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Fair Value	$ 14,353	$ 14,353

XML

SELECTED FINANCIAL STATEMENT INFORMATION SELECTED FINANCIAL STATEMENT INFORMATION (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Starting accumulated other comprehensive loss			$ (25,080)
Other Comprehensive Income (Loss), Net of Tax	$ (3,639)	$ (5,442)	2,909	$ (17,177)
Ending accumulated other comprehensive loss	(22,372)		(22,372)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Starting accumulated other comprehensive loss			(24,368)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax			2,708
Ending accumulated other comprehensive loss	(21,660)		(21,660)
Pension Benefit Obligation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Starting accumulated other comprehensive loss			(712)
Other Comprehensive Income (Loss), Net of Tax			0
Ending accumulated other comprehensive loss	(712)		(712)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Starting accumulated other comprehensive loss			(25,080)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax			2,708
Ending accumulated other comprehensive loss	$ (22,372)		$ (22,372)

XML

SELECTED FINANCIAL STATEMENT INFORMATION (Details Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Business Acquisition [Line Items]
Accrued customer rebates and credits	$ 10.9		$ 10.9		$ 8.1
Total customer rebates and credits deducted within net sales	$ 3.1	$ 1.4	$ 8.3	$ 4.3
Flight Support Group [Member] | FY 2011 Acquisition [Member]
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	19.90%		19.90%
Noncontrolling Interest, Ownership Percentage by Parent	90.05%		90.05%

XML

GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands	9 Months Ended
	Jul. 31, 2016 USD ($)
Goodwill [Line Items]
Balances as of October 31, 2015	$ 766,639
Goodwill acquired	98,580
Foreign currency translation adjustments	855
Adjustments to goodwill	(541)
Balances as of April 30, 2016	865,533
Flight Support Group [Member]
Goodwill [Line Items]
Balances as of October 31, 2015	337,507
Goodwill acquired	0
Foreign currency translation adjustments	262
Adjustments to goodwill	(569)
Balances as of April 30, 2016	337,200
Electronic Technologies Group [Member]
Goodwill [Line Items]
Balances as of October 31, 2015	429,132
Goodwill acquired	98,580
Foreign currency translation adjustments	593
Adjustments to goodwill	28
Balances as of April 30, 2016	$ 528,333

XML

GOODWILL AND OTHER INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	$ 397,408	$ 294,619
Accumulated Amortization	(116,734)	(89,654)
Net Carrying Amount	280,674	204,965
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Asset Gross Carrying Amount	493,562	362,247
Intangible Asset Net Carrying Amount	376,828	272,593
Trade Names [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Gross Carrying Amount	96,154	67,628
Net Carrying Amount	96,154	67,628
Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	248,704	190,450
Accumulated Amortization	(82,501)	(63,461)
Net Carrying Amount	166,203	126,989
Intellectual Property [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	140,091	98,143
Accumulated Amortization	(30,704)	(22,912)
Net Carrying Amount	109,387	75,231
Licensing Agreements [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	6,559	4,200
Accumulated Amortization	(2,174)	(1,882)
Net Carrying Amount	4,385	2,318
Noncompete Agreements [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	814	914
Accumulated Amortization	(814)	(914)
Net Carrying Amount	0	0
Patents [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	774	746
Accumulated Amortization	(474)	(447)
Net Carrying Amount	300	299
Trade Names [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	466	166
Accumulated Amortization	(67)	(38)
Net Carrying Amount	$ 399	$ 128

XML

GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization expense related to intangible assets	$ 9.4	$ 6.6	$ 27.0	$ 19.7
Estimated Amortization Expense, remainder of fiscal 2015	9.4		9.4
Estimated Amortization Expense, for fiscal 2016	36.6		36.6
Estimated Amortization Expense, for fiscal 2017	34.6		34.6
Estimated Amortization Expense, for fiscal 2018	32.5		32.5
Estimated Amortization Expense, for fiscal 2019	29.8		29.8
Estimated Amortization Expense, for fiscal 2020	27.3		27.3
Estimated Amortization Expense, thereafter	$ 110.5		$ 110.5

XML

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Borrowings under revolving credit facility	$ 507,743	$ 365,203
Capital leases	2,162	2,395
Total debt and capital leases	509,905	367,598
Less: Current maturities of long-term debt	(335)	(357)
Long-term debt, net of current maturities	$ 509,570	$ 367,241

XML

LONG-TERM DEBT (Details Textuals)	Jul. 31, 2016	Oct. 31, 2015
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Weighted average interest rate	1.70%	1.30%

XML

INCOME TAXES (Details Textuals)	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Income Tax Disclosure [Abstract]
Effective Income Tax Rate, Continuing Operations	30.50%	32.00%	30.90%	30.60%

XML

FAIR VALUE MEASUREMENTS (Fair Value Hierarchy, by Category) (Details) - USD ($)	Jul. 31, 2016	Oct. 31, 2015
Deferred Compensation Plans [Abstract]
Deferred compensation plans	$ 93,751,000	$ 81,576,000
Liabilities:
Contingent consideration	18,777,000	21,405,000
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	6,243,000	8,288,000
Liabilities:
Contingent consideration	0	0
Significant Other Observable Inputs (Level 2) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	87,508,000	73,288,000
Liabilities:
Contingent consideration	0	0
Significant Unobservable Inputs (Level 3) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Liabilities:
Contingent consideration	18,777,000	21,405,000
Corporate Owned Life Insurance [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	87,458,000	73,238,000
Corporate Owned Life Insurance [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Corporate Owned Life Insurance [Member] | Significant Other Observable Inputs (Level 2) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	87,458,000	73,238,000
Corporate Owned Life Insurance [Member] | Significant Unobservable Inputs (Level 3) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Equity Securities [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,975,000	1,845,000
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,975,000	1,845,000
Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Equity Funds [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,737,000	1,665,000
Equity Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,737,000	1,665,000
Equity Funds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Equity Funds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Money Market Funds [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,514,000	3,832,000
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,514,000	3,832,000
Money Market Funds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Money Market Funds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	0	0
Other Defined Deferred Compensation Plan [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,067,000	996,000
Other Defined Deferred Compensation Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	1,017,000	946,000
Other Defined Deferred Compensation Plan [Member] | Significant Other Observable Inputs (Level 2) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	50,000	50,000
Other Defined Deferred Compensation Plan [Member] | Significant Unobservable Inputs (Level 3) [Member]
Deferred Compensation Plans [Abstract]
Deferred compensation plans	$ 0	$ 0

XML

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Level 3 Valuation Inputs) (Details) - Fair Value, Inputs, Level 3 [Member]	9 Months Ended
	Jul. 31, 2016
FY 2016 Acquisition [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	3.70%
FY 2016 Acquisition [Member] | Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Negative Long-term Revenue Growth Rate	(3.00%)
FY 2016 Acquisition [Member] | Maximum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Long-term Revenue Growth Rate	11.00%
FY 2015 Acquisition [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	1.70%
FY 2015 Acquisition [Member] | Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Long-term Revenue Growth Rate	4.00%
FY 2015 Acquisition [Member] | Maximum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Long-term Revenue Growth Rate	17.00%

XML

FAIR VALUE MEASUREMENTS (Contingent Consideration Liability) (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Oct. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Business Combination, Consideration Transferred	$ (2,635)	$ 412
Liabilities [Abstract]
Total liabilities	18,777		$ 21,405
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balances as of October 31, 2015, Liabilities	21,405
Business Combination, Consideration Transferred, Liabilities Incurred	1,225
Increase in accrued contingent consideration	2,635
Business Combination, Consideration Transferred	(6,960)
Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)	472
Balances as of April 30, 2016, Liabilities	18,777
Liabilities [Abstract]
Accrued Liabilities, Current	6,963
Other Liabilities, Noncurrent	11,814
Total liabilities	$ 18,777		$ 21,405

XML

FAIR VALUE MEASUREMENTS (Details Textuals) € in Millions	Jul. 31, 2016 EUR (€)	Jul. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities		$ 18,777,000	$ 21,405,000
Assets held within irrevocable trusts and classified within other assets		93,751,000	81,576,000
Related liabilities of deferred compensation plans, specified as other long-term liabilities		92,700,000	80,700,000
Aggregate LCP Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held within irrevocable trusts and classified within other assets		89,000,000	77,100,000
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities		0	0
Assets held within irrevocable trusts and classified within other assets		87,508,000	73,288,000
Significant Other Observable Inputs (Level 2) [Member] | Corporate Owned Life Insurance [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Related liabilities of deferred compensation plans, specified as other long-term liabilities		87,900,000	76,200,000
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities		18,777,000	21,405,000
Assets held within irrevocable trusts and classified within other assets		0	$ 0
Business Combinations [Abstract]
Accrued Liabilities, Current		6,963,000
Flight Support Group [Member] | Euro Member Countries, Euro | FY 2015 Acquisition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	€ 15.7	17,500,000
Contingent Consideration Arrangements, Per Year Amount | €	6.1
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | €	€ 24.4
Business Combinations [Abstract]
Accrued Liabilities, Current		7,000,000
Electronic Technologies Group [Member] | FY 2016 Acquisition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities		1,300,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		$ 2,000,000

XML

NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Numerator:
Net income attributable to HEICO	$ 42,002	$ 34,369	$ 111,930	$ 95,114
Denominator:
Weighted Average Number of Shares Outstanding, Basic	67,126	66,813	66,975	66,706
Effect of dilutive stock options	1,152	1,088	1,107	1,084
Weighted Average Number of Shares Outstanding, Diluted	68,278	67,901	68,082	67,790
Earnings Per Share, Basic	$ 0.63	$ 0.51	$ 1.67	$ 1.43
Earnings Per Share, Diluted	$ 0.62	$ 0.51	$ 1.64	$ 1.40
Anti-dilutive stock options excluded	574	445	675	352

XML

OPERATING SEGMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Segment Reporting Information [Line Items]
Revenues	$ 356,084	$ 300,370	$ 1,012,959	$ 859,976
Depreciation	4,981	4,563	14,993	13,075
Amortization	10,439	7,362	29,610	21,991
Operating income	69,854	58,510	189,269	160,704
Capital expenditures	7,567	4,307	23,113	13,767
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Revenues	(2,684)	(3,452)	(7,393)	(8,894)
Depreciation	54	41	166	112
Amortization	165	165	496	496
Operating income	(5,724)	(5,112)	(18,768)	(12,790)
Capital expenditures	17	184	407	310
Flight Support Group [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	222,553	206,599	647,419	591,431
Depreciation	3,049	2,834	8,973	7,927
Amortization	4,169	3,568	12,414	9,636
Operating income	41,969	39,250	118,757	107,498
Capital expenditures	5,034	2,523	13,449	9,000
Electronic Technologies Group [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	136,215	97,223	372,933	277,439
Depreciation	1,878	1,688	5,854	5,036
Amortization	6,105	3,629	16,700	11,859
Operating income	33,609	24,372	89,280	65,996
Capital expenditures	$ 2,516	$ 1,600	$ 9,257	$ 4,457

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OPERATING SEGMENTS (Details 1) - USD ($) $ in Thousands	Jul. 31, 2016	Oct. 31, 2015
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 2,017,320	$ 1,736,387
Other Primarily Corporate and Intersegment [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	138,872	122,151
Flight Support Group [Member] | Operating Segments [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	867,968	868,218
Electronic Technologies Group [Member] | Operating Segments [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 1,010,480	$ 746,018

XML

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Schedule of Product Warranties [Line Items]
Balances as of beginning of fiscal year	$ 3,203	$ 4,079
Accruals for warranties	1,765	579
Acquired warranty liabilities	0	35
Warranty claims settled	(1,869)	(1,634)
Balances as of end of period	$ 3,099	$ 3,059

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COMMITMENTS AND CONTINGENCIES (Details Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2,500		$ 2,500
Standby letter of credit to meet the security requirement of its insurance company for potential workers'compensation claims			1,500
New product research and development expenses	$ 12,674	$ 9,421	$ 32,666	$ 28,860