HEICO CORPHEI
HEICO CORP Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amount of goodwill by operating segment during fiscal 2025 and 2024 are as follows (in thousands):
| Segment | Consolidated | ||||||||||||||||
| FSG | ETG | Totals | |||||||||||||||
| Balances as of October 31, 2023 | $1,824,305 | $1,450,022 | $3,274,327 | ||||||||||||||
| Goodwill acquired | 57,978 | 41,259 | 99,237 | ||||||||||||||
Foreign currency translation adjustments | 696 | 5,643 | 6,339 | ||||||||||||||
Adjustments to goodwill | (421) | 813 | 392 | ||||||||||||||
| Balances as of October 31, 2024 | 1,882,558 | 1,497,737 | 3,380,295 | ||||||||||||||
| Goodwill acquired | 111,764 | 153,403 | 265,167 | ||||||||||||||
Foreign currency translation adjustments | 2,832 | 13,264 | 16,096 | ||||||||||||||
Adjustments to goodwill | 24 | 42 | 66 | ||||||||||||||
| Balances as of October 31, 2025 | $1,997,178 | $1,664,446 | $3,661,624 | ||||||||||||||
The goodwill acquired during fiscal 2025 and 2024 pertains to the acquisitions consummated in those respective years as 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 and noncontrolling interests assumed. Foreign currency translation adjustments are included in other comprehensive income in the Company's Consolidated Statements of Comprehensive Income. The adjustments to goodwill in fiscal 2025 and 2024 represent immaterial measurement period adjustments to the allocation of the purchase consideration of the respective prior year acquisitions. The Company estimates that approximately $113 million and $82 million of the goodwill acquired in fiscal 2025 and 2024, respectively, will be deductible for income tax purposes. Based on the annual test for goodwill
impairment as of October 31, 2025, the Company determined there was no impairment of its goodwill.
Identifiable intangible assets consist of the following (in thousands):
| As of October 31, 2025 | As of October 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Amortizing Assets: | |||||||||||||||||||||||||||||||||||
Customer relationships | $1,131,443 | ($373,100) | $758,343 | $1,013,847 | ($307,531) | $706,316 | |||||||||||||||||||||||||||||
Intellectual property | 540,836 | (153,783) | 387,053 | 471,516 | (137,188) | 334,328 | |||||||||||||||||||||||||||||
| Other | 8,651 | (8,127) | 524 | 8,575 | (7,708) | 867 | |||||||||||||||||||||||||||||
| 1,680,930 | (535,010) | 1,145,920 | 1,493,938 | (452,427) | 1,041,511 | ||||||||||||||||||||||||||||||
Non-Amortizing Assets: | |||||||||||||||||||||||||||||||||||
Trade names | 325,520 | — | 325,520 | 293,263 | — | 293,263 | |||||||||||||||||||||||||||||
| $2,006,450 | ($535,010) | $1,471,440 | $1,787,201 | ($452,427) | $1,334,774 | ||||||||||||||||||||||||||||||
The increase in the gross carrying amount of customer relationships, intellectual property, and trade names as of October 31, 2025 compared to October 31, 2024 principally relates to such intangible assets recognized in connection with the fiscal 2025 acquisitions (see Note 2, Acquisitions, for additional information).
During fiscal 2024, the Company recognized impairment losses aggregating $7.5 million from the write-down of trade names at two subsidiaries due to a reduction in the expected future cash flows associated with each such intangible asset. The impairment losses were recorded as a component of in the Company's Consolidated Statement of Operations. See Note 8, Fair Value Measurements, for additional information regarding the Company’s impairment losses.
As further disclosed in Note 2, Acquisitions, the following table summarizes the weighted average amortization period of the definite-lived intangible assets acquired in total and by major asset class in connection with the Company's fiscal 2025, 2024 and 2023 acquisitions (in years):
| Year ended October 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Customer relationships | 11 | 11 | 13 | ||||||||||||||
| Intellectual property | 12 | 11 | 14 | ||||||||||||||
| Total | 11 | 11 | 13 | ||||||||||||||
Amortization expense related to intangible assets was $137.9 million, $122.3 million and $85.9 million in fiscal 2025, 2024 and 2023, respectively. Amortization expense for each of the next five fiscal years and thereafter is estimated to be $141.8 million in fiscal 2026, $136.7 million in fiscal 2027, $130.1 million in fiscal 2028, $124.0 million in fiscal 2029, $116.8 million in fiscal 2030 and $496.5 million thereafter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 22, 2025 | Showing above |
| 2024 | Dec 19, 2024 | |
| 2023 | Dec 20, 2023 | |
| 2022 | Dec 21, 2022 | |
| 2021 | Dec 21, 2021 | |
| 2020 | Dec 23, 2020 | |
| 2019 | Dec 19, 2019 | |
| 2018 | Dec 20, 2018 | |
| 2017 | Dec 21, 2017 | |
| 2016 | Dec 15, 2016 | |
| 2015 | Dec 17, 2015 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.