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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File Number: 001-04604
HEICO CORPORATION
(Exact name of registrant as specified in its charter)
Florida65-0341002
(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)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 par value per share HEINew York Stock Exchange
Class A Common Stock, $.01 par value per share HEI.ANew York Stock Exchange
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 No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer Non-accelerated filer
Smaller reporting company Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
The number of shares outstanding of each of the registrant’s classes of common stock as of May 23, 2022 is as follows:
Common Stock, $.01 par value
54,503,703 shares
Class A Common Stock, $.01 par value
81,453,412 shares


HEICO CORPORATION

INDEX TO QUARTERLY REPORT ON FORM 10-Q

Page
Part I.Financial Information
Item 1.
Item 2.
Item 3.
Item 4.
Part II.Other Information
Item 6.

1


PART I. FINANCIAL INFORMATION; Item 1. FINANCIAL STATEMENTS

HEICO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED
(in thousands, except per share data)
April 30, 2022October 31, 2021
ASSETS
Current assets:
Cash and cash equivalents$117,318 $108,298 
Accounts receivable, net269,850 244,919 
Contract assets79,598 80,073 
Inventories, net519,498 478,050 
Prepaid expenses and other current assets46,461 26,045 
Total current assets1,032,725 937,385 
Property, plant and equipment, net193,558 193,638 
Goodwill1,511,466 1,450,395 
Intangible assets, net624,917 582,307 
Other assets322,667 334,682 
Total assets$3,685,333 $3,498,407 
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt$1,781 $1,515 
Trade accounts payable97,089 85,544 
Accrued expenses and other current liabilities203,289 206,857 
Income taxes payable2,033 964 
Total current liabilities304,192 294,880 
Long-term debt, net of current maturities264,095 234,983 
Deferred income taxes42,629 40,761 
Other long-term liabilities350,016 378,257 
Total liabilities960,932 948,881 
Commitments and contingencies (Note 11)
Redeemable noncontrolling interests (Note 3)303,927 252,587 
Shareholders’ equity:
Preferred Stock, $.01 par value per share; 10,000 shares authorized; none issued
  
Common Stock, $.01 par value per share; 150,000 shares authorized; 54,504 and 54,264 shares issued and outstanding
545 543 
Class A Common Stock, $.01 par value per share; 150,000 shares authorized; 81,449 and 81,224 shares issued and outstanding
814 812 
Capital in excess of par value311,053 320,747 
Deferred compensation obligation5,297 5,297 
HEICO stock held by irrevocable trust(5,297)(5,297)
Accumulated other comprehensive loss(30,554)(8,552)
Retained earnings2,100,178 1,949,521 
Total HEICO shareholders’ equity2,382,036 2,263,071 
Noncontrolling interests38,438 33,868 
Total shareholders’ equity2,420,474 2,296,939 
Total liabilities and equity$3,685,333 $3,498,407 
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)
Six months ended April 30,Three months ended April 30,
2022202120222021
Net sales$1,029,156 $884,553 $538,813 $466,651 
Operating costs and expenses:
Cost of sales627,717 546,346 327,584 286,878 
Selling, general and administrative expenses179,840 161,174 88,452 83,025 
Total operating costs and expenses807,557 707,520 416,036 369,903 
Operating income
221,599 177,033 122,777 96,748 
Interest expense(1,775)(4,531)(979)(2,083)
Other income 540 1,017 314 306 
Income before income taxes and noncontrolling interests
220,364 173,519 122,112 94,971 
Income tax expense33,000 20,800 29,000 18,500 
Net income from consolidated operations187,364 152,719 93,112 76,471 
Less: Net income attributable to noncontrolling interests
15,433 11,450 8,102 5,798 
Net income attributable to HEICO$171,931 $141,269 $85,010 $70,673 
Net income per share attributable to HEICO shareholders:
Basic$1.27 $1.04 $.63 $.52 
Diluted$1.25 $1.03 $.62 $.51 
Weighted average number of common shares outstanding:
Basic135,763 135,252 135,891 135,294 
Diluted137,916 137,778 137,867 137,814 

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


3



HEICO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME – UNAUDITED
(in thousands)
Six months ended April 30,Three months ended April 30,
2022202120222021
Net income from consolidated operations$187,364 $152,719 $93,112 $76,471 
Other comprehensive (loss) income:
Foreign currency translation adjustments(23,028)11,109 (14,277)(539)
Amortization of unrealized loss on defined benefit pension plan, net of tax
33 68 22 34 
Total other comprehensive (loss) income (22,995)11,177 (14,255)(505)
Comprehensive income from consolidated operations
164,369 163,896 78,857 75,966 
Net income attributable to noncontrolling interests
15,433 11,450 8,102 5,798 
Foreign currency translation adjustments attributable to noncontrolling interests
(993)354 (663)(50)
Comprehensive income attributable to noncontrolling interests
14,440 11,804 7,439 5,748 
Comprehensive income attributable to HEICO$149,929 $152,092 $71,418 $70,218 

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


4



HEICO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - UNAUDITED
For the Six Months Ended April 30, 2022 and 2021
(in thousands, except per share data)
HEICO Shareholders' Equity
Redeemable Noncontrolling InterestsCommon StockClass A Common StockCapital in Excess of Par ValueDeferred Compensation ObligationHEICO Stock Held by Irrevocable TrustAccumulated Other Comprehensive LossRetained EarningsNoncontrolling InterestsTotal Shareholders' Equity
Balances as of October 31, 2021$252,587 $543 $812 $320,747 $5,297 ($5,297)($8,552)$1,949,521 $33,868 $2,296,939 
Comprehensive income (loss)9,262 — — — — — (22,002)171,931 5,178 155,107 
Cash dividends ($.09 per share)
— — — — — — — (12,227)— (12,227)
Issuance of common stock to HEICO Savings and Investment Plan
— — — 7,739 — — — — — 7,739 
Share-based compensation expense
— — — 6,855 — — — — — 6,855 
Proceeds from stock option exercises
— 3 3 1,604 — — — — — 1,610 
Redemptions of common stock related to stock option exercises
— (1)(1)(23,690)— — — — — (23,692)
Noncontrolling interests assumed related to acquisitions39,235 — — — — — — — — — 
Distributions to noncontrolling interests
(9,968)— — — — — — — (608)(608)
Adjustments to redemption amount of redeemable noncontrolling interests
9,047 — — — — — — (9,047)— (9,047)
Other
3,764 — — (2,202)— — — — — (2,202)
Balances as of April 30, 2022$303,927 $545 $814 $311,053 $5,297 ($5,297)($30,554)$2,100,178 $38,438 $2,420,474 

HEICO Shareholders' Equity
Redeemable Noncontrolling InterestsCommon StockClass A Common StockCapital in Excess of Par ValueDeferred Compensation ObligationHEICO Stock Held by Irrevocable TrustAccumulated Other Comprehensive Income (Loss)Retained EarningsNoncontrolling InterestsTotal Shareholders' Equity
Balances as of October 31, 2020$221,208 $542 $809 $299,930 $4,886 ($4,886)($9,149)$1,688,045 $30,430 $2,010,607 
Comprehensive income
9,061 — — — — — 10,823 141,269 2,743 154,835 
Cash dividends ($.08 per share)
— — — — — — — (10,818)— (10,818)
Issuance of common stock to HEICO Savings and Investment Plan
— — — 7,440 — — — — — 7,440 
Share-based compensation expense
— — — 4,271 — — — — — 4,271 
Proceeds from stock option exercises
— — 2 3,836 — — — — — 3,838 
Redemptions of common stock related to stock option exercises
— — — (3,624)— — — — — (3,624)
Distributions to noncontrolling interests
(12,720)— — — — — — — (1,103)(1,103)
Adjustments to redemption amount of redeemable noncontrolling interests
5,698 — — — — — — (5,698)— (5,698)
Deferred compensation obligation— — — — (109)109 — — — — 
Other
19 — — 142 — — — — — 142 
Balances as of April 30, 2021$223,266 $542 $811 $311,995 $4,777 ($4,777)$1,674 $1,812,798 $32,070 $2,159,890 

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


5



HEICO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - UNAUDITED
For the Three Months Ended April 30, 2022 and 2021
(in thousands, except per share data)
HEICO Shareholders' Equity
Redeemable Noncontrolling InterestsCommon StockClass A Common StockCapital in Excess of Par ValueDeferred Compensation ObligationHEICO Stock Held by Irrevocable TrustAccumulated Other Comprehensive LossRetained EarningsNoncontrolling InterestsTotal Shareholders' Equity
Balances as of January 31, 2022$258,289 $545 $814 $302,104 $5,297 ($5,297)($16,962)$2,018,990 $36,565 $2,342,056 
Comprehensive income (loss)5,121 — — — — — (13,592)85,010 2,318 73,736 
Issuance of common stock to HEICO Savings and Investment Plan
— — — 6,069 — — — — — 6,069 
Share-based compensation expense
— — — 3,241 — — — — — 3,241 
Proceeds from stock option exercises
— — — 841 — — — — — 841 
Redemptions of common stock related to stock option exercises
— — — (69)— — — — — (69)
Noncontrolling interests assumed related to acquisitions39,063 — — — — — — — — — 
Distributions to noncontrolling interests
(4,085)— — — — — — — (445)(445)
Adjustments to redemption amount of redeemable noncontrolling interests
3,822 — — — — — — (3,822)— (3,822)
Other
1,717 — — (1,133)— — — — — (1,133)
Balances as of April 30, 2022$303,927 $545 $814 $311,053 $5,297 ($5,297)($30,554)$2,100,178 $38,438 $2,420,474 

HEICO Shareholders' Equity
Redeemable Noncontrolling InterestsCommon StockClass A Common StockCapital in Excess of Par ValueDeferred Compensation ObligationHEICO Stock Held by Irrevocable TrustAccumulated Other Comprehensive IncomeRetained EarningsNoncontrolling InterestsTotal Shareholders' Equity
Balances as of January 31, 2021$222,225 $542 $811 $301,107 $4,777 ($4,777)$2,129 $1,744,247 $31,323 $2,080,159 
Comprehensive income (loss)4,264 — — — — — (455)70,673 1,484 71,702 
Issuance of common stock to HEICO Savings and Investment Plan
— — — 7,440 — — — — — 7,440 
Share-based compensation expense
— — — 2,042 — — — — — 2,042 
Proceeds from stock option exercises
— — — 1,388 — — — — — 1,388 
Redemptions of common stock related to stock option exercises
— — — (53)— — — — — (53)
Distributions to noncontrolling interests
(5,342)— — — — — — — (737)(737)
Adjustments to redemption amount of redeemable noncontrolling interests
2,122 — — — — — — (2,122)— (2,122)
Other
(3)— — 71 — — — — — 71 
Balances as of April 30, 2021$223,266 $542 $811 $311,995 $4,777 ($4,777)$1,674 $1,812,798 $32,070 $2,159,890 

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



6




HEICO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(in thousands)
Six months ended April 30,
20222021
Operating Activities:
Net income from consolidated operations$187,364 $152,719 
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:
Depreciation and amortization46,707 45,919 
Share-based compensation expense6,855 4,271 
Employer contributions to HEICO Savings and Investment Plan5,364 5,046 
Deferred income tax provision (benefit)2,080 (8,487)
(Decrease) increase in accrued contingent consideration, net (1,773)659 
Changes in operating assets and liabilities, net of acquisitions:
Increase in accounts receivable(20,263)(3,795)
Decrease in contract assets 1,778 596 
(Increase) decrease in inventories(42,766)2,932 
Increase in prepaid expenses and other current assets(8,974)(12,032)
Increase in trade accounts payable8,137 10,843 
(Decrease) increase in accrued expenses and other current liabilities(15,946)1,981 
Decrease in income taxes payable(9,343)(4,076)
Net changes in other long-term liabilities and assets related to
   HEICO Leadership Compensation Plan
13,356 11,826 
Other2,177 1,710 
Net cash provided by operating activities174,753 210,112 
Investing Activities:
Acquisitions, net of cash acquired(105,533)(20,226)
Capital expenditures(16,211)(21,938)
Investments related to HEICO Leadership Compensation Plan (11,700)(10,900)
Other(10,511)1,017 
Net cash used in investing activities(143,955)(52,047)
Financing Activities:
Borrowings on revolving credit facility93,000 — 
Payments on revolving credit facility(65,000)(155,000)
Redemptions of common stock related to stock option exercises(23,692)(3,624)
Cash dividends paid(12,227)(10,818)
Distributions to noncontrolling interests(10,576)(13,823)
Revolving credit facility issuance costs(1,010)(1,468)
Proceeds from stock option exercises1,610 3,838 
Other(210)(522)
Net cash used in financing activities(18,105)(181,417)
Effect of exchange rate changes on cash(3,673)1,944 
Net increase (decrease) in cash and cash equivalents9,020 (21,408)
Cash and cash equivalents at beginning of year108,298 406,852 
Cash and cash equivalents at end of period$117,318 $385,444 
The accompanying notes are an integral part of these condensed consolidated financial statements.


7



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, 2021. The October 31, 2021 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 six months ended April 30, 2022 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. ("HFSC") and their respective subsidiaries; and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. (“HEICO Electronic”) and its subsidiaries.

The Company's results of operations in fiscal 2022 continue to reflect the adverse impact from the COVID-19 global pandemic (the “Pandemic”). Despite the aforementioned, the Company experienced continued improvement in operating results in the first six months and second quarter of fiscal 2022 as compared to the first six months and second quarter of fiscal 2021 principally reflecting improved demand for its commercial aerospace products. The Flight Support Group has reported seven consecutive quarters of improvement in net sales and operating income resulting from signs of commercial air travel recovery in certain domestic travel markets, moderated by a slower recovery in international travel markets.




8



New Accounting Pronouncement

    In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers," as if the acquirer had originated the contracts. ASU 2021-08 is effective for fiscal years and interim reporting periods within those fiscal years beginning after December 15, 2022, or in fiscal 2024 for HEICO. Early adoption is permitted and ASU 2021-08 shall be applied on a prospective basis to business combinations that occur on or after the adoption date. 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.


2.     ACQUISITIONS

In March 2022, the Company, through a subsidiary of HFSC, acquired 74% of the membership interests of Pioneer Industries, LLC ("Pioneer"). Pioneer is a specialty distributor of spares for military aviation, marine, and ground platforms. The remaining 26% interest continues to be owned by certain members of Pioneer's management team (see Note 3, Selected Financial Statement Information - Redeemable Noncontrolling Interests, for additional information). The total consideration includes an accrual of $9.8 million as of the acquisition date representing the estimated fair value of contingent consideration the Company may be obligated to pay should Pioneer meet a certain earnings objective following the acquisition. See Note 8, Fair Value Measurements, for additional information regarding the Company’s contingent consideration obligation. The purchase price of this acquisition was paid in cash, principally using proceeds from the Company's revolving credit facility.

In March 2022, the Company, through a subsidiary of HEICO Electronic, acquired 100% of the stock of Flight Microwave Corporation ("Flight Microwave"). Flight Microwave is a designer and manufacturer of custom high power filters and filter assemblies used in space and defense applications. The purchase price of this acquisition was paid in cash using cash provided by operating activities.

    The purchase price of Pioneer and Flight Microwave is not material or significant to the Company's condensed consolidated financial statements. The allocation of the total consideration for the fiscal 2022 acquisitions to the tangible and identifiable intangible assets acquired and liabilities and noncontrolling interests assumed is preliminary until the Company obtains final information regarding their fair values. However, the Company does not expect any adjustment to such allocations to be material to the Company's consolidated financial statements. The operating results of the fiscal 2022 acquisitions were included in the Company’s results of operations as of each effective acquisition date. The amount of net sales and earnings of the fiscal 2022 acquisitions included in the Condensed Consolidated Statements of Operations for the six and three months ended April 30, 2022 is not material. Had the fiscal 2022 acquisitions


9



occurred as of November 1, 2020, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for the six and three months ended April 30, 2022 and 2021 would not have been materially different than the reported amounts.


3.     SELECTED FINANCIAL STATEMENT INFORMATION

Accounts Receivable
(in thousands)April 30, 2022October 31, 2021
Accounts receivable$282,088 $255,793 
Less: Allowance for doubtful accounts(12,238)(10,874)
Accounts receivable, net$269,850 $244,919 

Inventories
(in thousands)April 30, 2022October 31, 2021
Finished products$260,130 $238,867 
Work in process48,798 44,887 
Materials, parts, assemblies and supplies210,570 194,296 
Inventories, net of valuation reserves$519,498 $478,050 

Property, Plant and Equipment
(in thousands)April 30, 2022October 31, 2021
Land$11,065 $11,363 
Buildings and improvements134,970 134,150 
Machinery, equipment and tooling301,558 297,297 
Construction in progress12,940 7,784 
460,533 450,594 
Less: Accumulated depreciation and amortization(266,975)(256,956)
Property, plant and equipment, net$193,558 $193,638 

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 $15.9 million as of April 30, 2022 and $13.2 million as of October 31, 2021. The total customer rebates and credits deducted within net sales for the six months ended April 30, 2022 and 2021 was $3.7 million and $1.8 million, respectively. The total customer rebates and credits deducted within net sales for the three months ended April 30, 2022 and 2021 was $2.0 million and $1.0 million, respectively.



10



Research and Development Expenses

The amount of new product research and development ("R&D") expenses included in cost of sales for the six and three months ended April 30, 2022 and 2021 is as follows (in thousands):
Six months ended April 30,Three months ended April 30,
2022202120222021
R&D expenses$37,147 $34,203 $18,751 $18,022 

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 2032. 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):
April 30, 2022October 31, 2021
Redeemable at fair value $270,107 $217,416 
Redeemable based on a multiple of future earnings33,820 35,171 
Redeemable noncontrolling interests$303,927 $252,587 

As discussed in Note 2, Acquisitions, the Company, through a subsidiary of HFSC, acquired 74% of the membership interests of Pioneer in March 2022. As part of the operating agreement, the noncontrolling interest holders have the right to cause the Company to purchase their membership interest over a four-year period beginning in fiscal 2029, or sooner under certain conditions, and the Company has the right to purchase the same membership interest over the same period.

During fiscal 2022, the Company sold a 3% equity interest in a subsidiary of the FSG that was acquired in fiscal 2015, which decreased the Company's ownership interest in the subsidiary to 82%. As part of the operating agreement, the noncontrolling interest holder has the right to cause the Company to purchase its equity interest over a five-year period beginning in fiscal 2028, or sooner under certain conditions, and the Company has the right to purchase the same equity interest over the same period.

During fiscal 2022, the Company sold 10% of the membership interests of a subsidiary of the FSG that was acquired in fiscal 2018, which decreased the Company's ownership interest in the subsidiary to 90%. As part of the operating agreement, the noncontrolling interest holder has the right to cause the Company to purchase its membership interest over a four-year period beginning in fiscal 2027, or sooner under certain conditions, and the Company has the right to purchase the same membership interest over the same period.


11



Accumulated Other Comprehensive Loss

Changes in the components of accumulated other comprehensive loss for the six months ended April 30, 2022 are as follows (in thousands):
Foreign Currency TranslationDefined Benefit Pension PlanAccumulated
Other
Comprehensive Loss
Balances as of October 31, 2021($6,989)($1,563)($8,552)
Unrealized loss(22,035)— (22,035)
Amortization of unrealized loss — 33 33 
Balances as of April 30, 2022($29,024)($1,530)($30,554)


4.     GOODWILL AND OTHER INTANGIBLE ASSETS

    Changes in the carrying amount of goodwill by operating segment for the six months ended April 30, 2022 are as follows (in thousands):
SegmentConsolidated Totals
FSGETG
Balances as of October 31, 2021$468,288 $982,107 $1,450,395 
Goodwill acquired69,130 2,565 71,695 
Foreign currency translation adjustments(4,344)(5,139)(9,483)
Adjustments to goodwill(266)(875)(1,141)
Balances as of April 30, 2022$532,808 $978,658 $1,511,466 
    
The goodwill acquired pertains to the fiscal 2022 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 and noncontrolling interests 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 principally represent immaterial measurement period adjustments to the purchase price allocation of certain fiscal 2021 acquisitions. The Company estimates that $70 million of the goodwill acquired in fiscal 2022 will be deductible for income tax purposes.




12



Identifiable intangible assets consist of the following (in thousands):
As of April 30, 2022As of October 31, 2021
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Amortizing Assets:
Customer relationships$470,592 ($189,664)$280,928 $464,506 ($221,098)$243,408 
Intellectual property253,133 (101,736)151,397 255,011 (94,313)160,698 
Licenses