FAIR VALUE MEASUREMENTS

12 Months Ended

Oct. 31, 2011

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

7.      FAIR VALUE MEASUREMENTS

The following tables set forth by level within the fair value hierarchy, the Company’s assets and liabilities that were measured at fair value on a recurring basis:

	As of October 31, 2011
	Quoted Prices		Significant		Significant
	in Active Markets		Other Observable		Unobservable
	for Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance	$	—	$	26,989,000	$	—	$	26,989,000
Equity securities		1,150,000		—		—		1,150,000
Money market funds and cash		920,000		—		—		920,000
Mutual funds		1,004,000		—		—		1,004,000
Other		—		451,000		573,000		1,024,000
Total assets	$	3,074,000	$	27,440,000	$	573,000	$	31,087,000
Liabilities	$	—	$	—	$	—	$	—

	As of October 31, 2010
	Quoted Prices		Significant		Significant
	in Active Markets		Other Observable		Unobservable
	for Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Deferred compensation plans:
Corporate owned life insurance	$	—	$	22,908,000	$	—	$	22,908,000
Equity securities		1,267,000		—		—		1,267,000
Money market funds and cash		1,165,000		—		—		1,165,000
Mutual funds		1,002,000		—		—		1,002,000
Other		—		545,000		—		545,000
Total assets	$	3,434,000	$	23,453,000	$	—	$	26,887,000
Liabilities:
Contingent consideration	$	—	$	—	$	1,150,000	$	1,150,000

           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 are valued using a market approach.  Certain other assets of the LCP represent investments in money market funds that are classified within Level 1.  The majority of the assets of the Company’s other deferred compensation plan are principally invested in equity securities, mutual funds and money market funds that are classified within Level 1.  A portion of the assets within the other deferred compensation plan is currently invested in a fund that invests in future and forward contracts; most of which are privately negotiated with counterparties without going through a public exchange, and that use trading methods that are proprietary and confidential.  These assets are therefore classified within Level 3 and are valued using a market approach with corresponding gains and losses reported within other income in the Company’s Consolidated Statement of Operations.  The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Consolidated Balance Sheets.  The related liabilities of the two deferred compensation plans are included within other long-term liabilities in the Company’s Consolidated Balance Sheets and have an aggregate value of $30,773,000 as of October 31, 2011 and $26,506,000 as of October 31, 2010.

Changes in the Company’s assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the fiscal years ended October 31, 2011 and 2010 are as follows:

	Assets		Liabilities
Balances as of October 31, 2009	$	—	$	—
Contingent consideration related to acquisition		—		1,150,000
Balances as of October 31, 2010		—		1,150,000
Reduction in value of contingent consideration		—		(1,150,000	)
Purchases		550,000		—
Total unrealized gains		23,000		—
Balances as of October 31, 2011	$	573,000	$	—

The Company did not have any transfers between Level 1 and Level 2 fair value measurements during fiscal 2011.

As part of the agreement to acquire a subsidiary by the ETG in fiscal 2010, the Company may have been obligated to pay contingent consideration of up to $2,000,000 in fiscal 2013 should the acquired entity meet certain earnings objectives during the second and third years following the acquisition.  As of the acquisition date, the Company recorded $1,150,000 as the fair value of the contingent consideration, which was determined using a discounted cash flow model and probability adjusted internal estimates of the subsidiary’s future earnings and is classified in Level 3.  Based on the Company’s estimate that this contingent consideration had a fair value of $0 as of October 31, 2011, the $1,150,000 accrued additional purchase consideration was reversed with a corresponding reduction recorded to selling general and administrative expenses within the Company’s Consolidated Statements of Operations.  The fair value reduction was primarily attributed to a lower forecast of the subsidiary’s future earnings relative to such projections as of the time of acquisition.

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 October 31, 2011 due to the relatively short maturity of the respective instruments.  The carrying value of long-term debt approximates fair value due to its variable interest rates.

During fiscal 2011 and 2010, certain intangible assets within the ETG were measured at fair value on a nonrecurring basis, resulting in the recognition of impairment losses aggregating $5.0 million and $1.4 million, respectively (see Note 4, Goodwill and Other Intangible Assets).  The fair value of each asset was determined using a discounted cash flow model and internal estimates of each asset’s future cash flows.

The following table sets forth as of October 31, 2011 and 2010 the fair values of the Company’s nonfinancial assets and liabilities that were measured at fair value on a nonrecurring basis, all of which are classified in Level 3, and related impairment losses recognized during fiscal 2011 and 2010:

	2011							2010
	Carrying		Impairment			Fair Value		Carrying		Impairment			Fair Value
	Amount		Loss			(Level 3)		Amount		Loss			(Level 3)
Assets:
Customer relationships	$	7,848,000	$	(4,351,000	)	$	3,497,000	$	1,871,000	$	(1,080,000	)	$	791,000
Intellectual property		2,369,000		(459,000	)		1,910,000		20,000		(20,000	)		—
Trade names		3,400,000		(177,000	)		3,223,000		1,937,000		(330,000	)		1,607,000
Other intangible assets		—		—			—		8,000		(8,000	)		—
Impairment of intangible assets			$	(4,987,000	)					$	(1,438,000	)