Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | May 20, 2019 | Sep. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2019 | ||
Amendment Flag | false | ||
Entity Registrant Name | Houlihan Lokey, Inc. | ||
Entity Central Index Key | 0001302215 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Information [Line Items] | |||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,530 | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 38,404,438 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 27,835,453 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 285,746,000 | $ 206,723,000 |
Restricted cash (note 2) | 369,000 | 93,500,000 |
Investment securities (amortized cost of $124,828 and $209,319 as of March 31, 2019, and March 31, 2018) | 125,258,000 | 209,319,000 |
Accounts receivable, net of allowance for doubtful accounts of $4,255 and $8,844 as of March 31, 2019, and March 31, 2018, respectively | 70,830,000 | 77,259,000 |
Unbilled work in process, net of allowance for doubtful accounts of $1,341 and $2,547 as of March 31, 2019, and March 31, 2018, respectively | 71,891,000 | 45,862,000 |
Receivable from affiliates | 8,631,000 | 8,732,000 |
Property and equipment, net of accumulated depreciation $43,313 and $37,078 as of March 31, 2019, and March 31, 2018, respectively | 31,034,000 | 32,146,000 |
Goodwill and other intangibles, net | 794,604,000 | 723,310,000 |
Other assets | 34,695,000 | 21,990,000 |
Other assets | 1,423,058,000 | 1,418,841,000 |
Liabilities: | ||
Accrued salaries and bonuses | 404,717,000 | 377,901,000 |
Accounts payable and accrued expenses | 55,048,000 | 40,772,000 |
Deferred income | 27,812,000 | 3,620,000 |
Income taxes payable | 7,759,000 | 9,967,000 |
Deferred income taxes | 5,204,000 | 22,180,000 |
Forward purchase liability | 0 | 93,500,000 |
Loans payable to former shareholders | 2,047,000 | 3,036,000 |
Loan payable to non-affiliate | 6,610,000 | 8,825,000 |
Other liabilities | 22,532,000 | 6,227,000 |
Total liabilities | 531,729,000 | 566,028,000 |
Commitments and contingencies (note 16) | ||
Stockholders' equity: | ||
Treasury stock, at cost; 0 and 2,000,000 shares as of March 31, 2019, and March 31, 2018, respectively | 0 | (93,500,000) |
Additional paid-in capital | 645,090,000 | 753,077,000 |
Retained earnings | 276,468,000 | 207,124,000 |
Accumulated other comprehensive loss | (30,294,000) | (13,956,000) |
Total stockholders' equity | 891,329,000 | 852,813,000 |
Total liabilities and stockholders' equity | 1,423,058,000 | 1,418,841,000 |
Class A | ||
Stockholders' equity: | ||
Common stock | 38,000 | 31,000 |
Class B | ||
Stockholders' equity: | ||
Common stock | $ 27,000 | $ 37,000 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Amortized Cost | $ 124,828 | |
Amortized Cost | $ 209,319 | |
Allowance for doubtful accounts, accounts receivable | 4,255 | 8,844 |
Allowance for doubtful accounts, unbilled receivables, work in process | 1,341 | 2,547 |
Accumulated depreciation | $ 43,313 | $ 37,078 |
Treasury stock, shares (in shares) | 0 | 2,000,000 |
Class A | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 38,200,802 | 30,604,405 |
Common stock, shares outstanding (in shares) | 38,200,802 | 30,604,405 |
Class B | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 27,197,734 | 37,187,932 |
Common stock, shares outstanding (in shares) | 27,197,734 | 37,187,932 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | ||||
Fee revenue | [1] | $ 1,084,385 | $ 963,364 | $ 872,091 |
Operating expenses: | ||||
Employee compensation and benefits | 692,073 | 636,631 | 582,244 | |
Travel, meals, and entertainment | 42,862 | 26,445 | 21,707 | |
Rent | 38,672 | 28,560 | 27,094 | |
Depreciation and amortization | 14,475 | 7,905 | 8,853 | |
Information technology and communications | 21,512 | 18,481 | 17,628 | |
Professional fees | [2] | 23,035 | 17,117 | 13,073 |
Other operating expenses | [3] | 32,229 | 13,779 | 19,497 |
Total operating expenses | 864,858 | 748,918 | 690,096 | |
Operating income | 219,527 | 214,446 | 181,995 | |
Other (income) expense, net | [4] | (4,793) | (3,390) | 3,508 |
Income before provision for income taxes | 224,320 | 217,836 | 178,487 | |
Provision for income taxes | 65,214 | 45,553 | 70,144 | |
Net income | 159,106 | 172,283 | 108,343 | |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (16,338) | 7,961 | (7,304) | |
Comprehensive income | $ 142,768 | $ 180,244 | $ 101,039 | |
Weighted average shares of common stock outstanding: | ||||
Basic (in shares) | 62,213,414 | 62,494,275 | 61,100,497 | |
Diluted (in shares) | 65,846,132 | 66,324,093 | 66,579,130 | |
Net income per share of common stock (note 13) | ||||
Basic (in usd per share) | $ 2.56 | $ 2.76 | $ 1.77 | |
Diluted (in usd per share) | $ 2.42 | $ 2.60 | $ 1.63 | |
[1] | including related party revenue of $8,819, $3,006, and $7,504 during the years ended March 31, 2019, 2018, and 2017 respectively. | |||
[2] | including related party professional fees of $0, $0, and $269 during the years ended March 31, 2019, 2018, and 2017 respectively. | |||
[3] | including related party income of $482, $286, and $461 during the years ended March 31, 2019, 2018, and 2017 respectively; and including realized foreign currency translation gain of $671, $5,123, and $309 during the years ended March 31, 2019, 2018, and 2017 respectively. | |||
[4] | including related party interest income of $96, $110, and $33 during the years ended March 31, 2019, 2018, and 2017, respectively, and related party interest expense of $0, $62, and $806 during years ended March 31, 2019, 2018, and 2017, respectively. The Company recognized (gain) loss related to investments in unconsolidated entities of $(609), $(3,210), and $3,839 during years ended March 31, 2019, 2018, and 2017, respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | |||
Related party fee revenue | $ 8,819 | $ 3,006 | $ 7,504 |
Related party professional fees | 0 | 0 | 269 |
Related party income | 482 | 286 | 461 |
Foreign currency translation gain (loss) | 671 | 5,123 | 309 |
Related party interest income | 96 | 110 | 33 |
Related party interest expense | 0 | 62 | 806 |
Loss (gain) related to investments in unconsolidated entities | $ (609) | $ (3,210) | $ 3,839 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A | Class B | Total stockholders' equity | Common StockClass A | Common StockClass B | Treasury Stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Stock subscriptions receivable |
Beginning balance (in shares) at Mar. 31, 2016 | 12,084,524 | 53,219,303 | 0 | ||||||||
Beginning balance at Mar. 31, 2016 | $ 651,160 | $ 12 | $ 53 | $ 0 | $ 637,332 | $ 28,623 | $ (14,613) | $ (247) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Shares issued (in shares) | 1,858,864 | ||||||||||
Shares issued | 5,154 | $ 2 | 5,152 | ||||||||
Stock compensation vesting (note 14) | 39,357 | 39,357 | |||||||||
Share redemptions (note 14) (in shares) | 71,913 | ||||||||||
Share redemptions (note 14) | 330 | 330 | |||||||||
Dividends | (47,883) | 0 | (47,883) | 0 | |||||||
Stock subscriptions receivable redeemed | 123 | 123 | |||||||||
Secondary offering (in shares) | 9,200,000 | (9,200,000) | |||||||||
Secondary offering | 193,572 | $ 9 | $ (9) | 193,572 | |||||||
Shares subject to forward purchase agreement (in shares) | 6,900,000 | (6,900,000) | |||||||||
Shares subject to forward purchase agreement | (193,572) | $ 7 | $ (193,572) | (7) | |||||||
Conversion of Class B to Class A shares (in shares) | 733,150 | (733,150) | |||||||||
Conversion of Class B to Class A shares | 0 | $ 1 | $ (1) | 0 | |||||||
Shares issued to non-employee directors (note 14) (in shares) | 9,137 | ||||||||||
Shares issued to non-employee directors (note 14) | 0 | ||||||||||
Other shares repurchased/forfeited (in shares) | (1,089,805) | ||||||||||
Other shares repurchased/forfeited | (27,309) | $ (1) | (27,308) | ||||||||
Excess tax benefits | 6,982 | 6,982 | |||||||||
Adjustment of noncontrolling interest to redeemable value | (1,676) | (1,676) | |||||||||
Net income | $ 108,343 | 108,343 | 108,343 | ||||||||
Change in unrealized translation | (7,304) | (7,304) | (7,304) | ||||||||
Total comprehensive income | 101,039 | 108,343 | (7,304) | ||||||||
Ending balance (in shares) at Mar. 31, 2017 | 22,026,811 | 50,883,299 | (6,900,000) | ||||||||
Ending balance at Mar. 31, 2017 | 726,617 | $ 22 | $ 51 | $ (193,572) | 854,750 | 87,407 | (21,917) | (124) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Shares issued (in shares) | 1,331,370 | ||||||||||
Shares issued | 7,985 | $ 1 | 7,984 | ||||||||
Stock compensation vesting (note 14) | 41,900 | 41,900 | |||||||||
Dividends | 51,305 | 51,305 | |||||||||
Stock subscriptions receivable redeemed | 124 | 124 | |||||||||
Secondary offering (in shares) | 7,750,000 | (7,750,000) | |||||||||
Secondary offering | 93,500 | $ 8 | $ (8) | 93,500 | |||||||
Retired shares upon settlement of forward purchase agreement (in shares) | (430,237) | (6,900,000) | 6,900,000 | ||||||||
Retired shares upon settlement of forward purchase agreement | $ (15,131) | 0 | $ (7) | $ 193,572 | (193,565) | ||||||
Shares subject to forward purchase agreement (in shares) | 2,000,000 | (2,000,000) | |||||||||
Shares subject to forward purchase agreement | (93,500) | $ 2 | $ (93,500) | (2) | |||||||
Conversion of Class B to Class A shares (in shares) | 1,252,242 | (1,252,242) | |||||||||
Conversion of Class B to Class A shares | 0 | $ 1 | $ (1) | ||||||||
Shares issued to non-employee directors (note 14) (in shares) | 5,589 | ||||||||||
Shares issued to non-employee directors (note 14) | 0 | ||||||||||
Shares purchased and retired under repurchase program (in shares) | (430,237) | ||||||||||
Shares purchased and retired under repurchase program | (15,139) | (15,139) | |||||||||
Other shares repurchased/forfeited (in shares) | (1,124,495) | ||||||||||
Other shares repurchased/forfeited | (36,352) | $ (1) | (36,351) | ||||||||
Adjustment of noncontrolling interest to redeemable value | (1,261) | (1,261) | |||||||||
Net income | 172,283 | 172,283 | 172,283 | ||||||||
Change in unrealized translation | 7,961 | 7,961 | 7,961 | ||||||||
Total comprehensive income | 180,244 | 172,283 | 7,961 | ||||||||
Ending balance (in shares) at Mar. 31, 2018 | 30,604,405 | 37,187,932 | 30,604,405 | 37,187,932 | (2,000,000) | ||||||
Ending balance at Mar. 31, 2018 | 852,813 | 852,813 | $ 31 | $ 37 | $ (93,500) | 753,077 | 207,124 | (13,956) | 0 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Shares issued (in shares) | 1,208,074 | ||||||||||
Shares issued | 9,258 | $ 1 | 9,257 | ||||||||
Stock compensation vesting (note 14) | 47,575 | 47,575 | |||||||||
Class B shares sold (in shares) | (525,217) | 525,217 | |||||||||
Class B shares sold | 0 | ||||||||||
Dividends | (70,415) | (70,415) | |||||||||
Secondary offering (in shares) | 3,000,000 | (3,000,000) | |||||||||
Secondary offering | 0 | $ 3 | $ (3) | ||||||||
Retired shares upon settlement of forward purchase agreement (in shares) | (1,481,114) | (2,000,000) | 2,000,000 | ||||||||
Retired shares upon settlement of forward purchase agreement | $ (69,563) | 0 | $ (2) | $ 93,500 | (93,498) | ||||||
Conversion of Class B to Class A shares (in shares) | 5,545,724 | (5,545,724) | |||||||||
Conversion of Class B to Class A shares | 0 | $ 6 | $ (6) | ||||||||
Shares issued to non-employee directors (note 14) (in shares) | 6,570 | ||||||||||
Shares issued to non-employee directors (note 14) | 187 | 187 | |||||||||
Other shares repurchased/forfeited (in shares) | (697,000) | (127,331) | |||||||||
Other shares repurchased/forfeited | (36,535) | $ (1) | $ 0 | (36,534) | |||||||
Net income | 159,106 | 159,106 | 159,106 | ||||||||
Change in unrealized translation | (16,338) | (16,338) | (16,338) | ||||||||
Total comprehensive income | 142,768 | 159,106 | (16,338) | ||||||||
Ending balance (in shares) at Mar. 31, 2019 | 38,200,802 | 27,197,734 | 38,200,802 | 27,197,734 | 0 | ||||||
Ending balance at Mar. 31, 2019 | $ 891,329 | $ 891,329 | $ 38 | $ 27 | $ 0 | $ 645,090 | $ 276,468 | $ (30,294) | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 159,106 | $ 172,283 | $ 108,343 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred tax benefit | (10,687) | (6,569) | (6,093) |
Provision for bad debts | 1,707 | 1,983 | 4,008 |
Unrealized gains on investment securities | (430) | 0 | 0 |
Depreciation and amortization | 14,475 | 7,905 | 8,853 |
Contingent consideration valuation | (708) | (1,536) | 0 |
Compensation expense – restricted share grants (note 14) | 56,561 | 47,111 | 39,357 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 21,611 | (18,202) | (5,527) |
Unbilled work in process | (26,029) | 11,875 | (6,382) |
Other assets | (12,706) | (1,703) | 3,745 |
Accrued salaries and bonuses | 18,868 | 34,556 | 82,046 |
Accounts payable and accrued expenses | 11,542 | 392 | 13,499 |
Deferred income | (6,661) | (31) | (1,970) |
Income taxes receivable/payable | (2,375) | 2,583 | 12,141 |
Net cash provided by operating activities | 224,274 | 250,647 | 252,020 |
Cash flows from investing activities: | |||
Purchases of investment securities | (146,969) | (209,319) | 0 |
Sales or maturities of investment securities | 231,460 | 0 | 0 |
Acquisition of business, net of cash acquired | (71,407) | (2,701) | (3,725) |
Receivables from affiliates | 101 | 1,155 | 16,495 |
Purchase of property and equipment, net | (6,726) | (7,719) | (14,423) |
Net cash provided by (used in) investing activities | 6,459 | (218,584) | (1,653) |
Cash flows from financing activities: | |||
Dividends paid | (66,928) | (52,081) | (55,293) |
Settlement of forward purchase contract | (93,500) | (192,372) | 0 |
Shares retired under stock repurchase program | (34,975) | (15,139) | 0 |
Other share repurchases | (34,588) | (2,936) | 0 |
Payments to settle employee tax obligations on share-based awards | (1,947) | (33,419) | (22,756) |
Proceeds from issuance of Class A shares placed in escrow | 0 | 93,500 | 193,565 |
Earnouts paid | (1,923) | 0 | (964) |
Stock subscriptions receivable redeemed | 0 | 124 | 123 |
Loans payable to former shareholders redeemed | (989) | (2,446) | (11,256) |
Repayments of loans to affiliates | 0 | (15,000) | (30,000) |
Borrowings from non-affiliates | 0 | 0 | 65,000 |
Repayments of loans to non-affiliates | (1,475) | (1,661) | (65,000) |
Excess tax benefits | 0 | 0 | 6,982 |
Other financing activities | 187 | (3,881) | (233) |
Net cash (used in) provided by financing activities | (236,138) | (225,311) | 80,168 |
Effects of exchange rate changes on cash and cash equivalents | (8,703) | 785 | (4,018) |
(Decrease) increase in cash, cash equivalents, and restricted cash | (14,108) | (192,463) | 326,517 |
Cash, cash equivalents, and restricted cash – beginning of period | 300,223 | 492,686 | 166,169 |
Cash, cash equivalents, and restricted cash – end of period | 286,115 | 300,223 | 492,686 |
Supplemental disclosures of noncash activities: | |||
Shares issued via vesting of liability classified awards | 5,005 | 0 | 4,754 |
Shares issued as consideration for acquisitions | 1,744 | 7,797 | 457 |
Debt forgiven as consideration of acquisitions | 0 | 1,894 | 0 |
Fully depreciated assets written off | 0 | 38 | 829 |
Cash acquired through acquisitions | 16,141 | 0 | 0 |
Cash paid during the year: | |||
Interest | 977 | 656 | 1,621 |
Taxes | $ 82,464 | $ 47,629 | $ 57,286 |
BACKGROUND
BACKGROUND | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND | BACKGROUND Houlihan Lokey, Inc. ("Houlihan Lokey," or "HL, Inc." also referred to as the "Company," "we," "our," or "us") is a Delaware corporation that controls the following primary subsidiaries: • Houlihan Lokey Capital, Inc., a California corporation ("HL Capital, Inc."), a wholly owned direct subsidiary of HL, Inc., is registered as a broker-dealer under Section 15(b) of the Securities Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority, Inc. • Houlihan Lokey Financial Advisors, Inc., a California corporation ("HL FA, Inc."), is a wholly owned direct subsidiary of HL, Inc. • Houlihan Lokey EMEA, LLP, a limited liability partnership registered in England ("HL EMEA, LLP"), is an indirect subsidiary of HL, Inc. HL EMEA, LLP is regulated by the Financial Conduct Authority in the United Kingdom ("U.K."). On August 18, 2015, the Company successfully completed an initial public offering ("IPO") of its Class A common stock. Prior to a corporate reorganization that was consummated immediately prior to the closing of the IPO, the Company was incorporated in California as Houlihan Lokey, Inc., a California corporation ("HL CA"), and was a wholly owned indirect subsidiary of Fram Holdings, Inc., a Delaware corporation ("Fram"), which, in turn, was a majority owned subsidiary of ORIX Corporation USA (formerly ORIX USA Corporation), a Delaware corporation ("ORIX USA"), with the remaining minority interest being held by Company employees ("HL Holders"). ORIX USA and the HL Holders held their interests in HL CA indirectly through their ownership of Fram. On July 24, 2015, HL CA merged with and into HL, Inc., with HL, Inc. as the surviving entity. In connection with the IPO, the HL Holders deposited their shares of HL, Inc. Class B common stock into a voting trust (the "HL Voting Trust") and own such common stock through the HL Voting Trust. Houlihan Lokey separated from Fram and as a result, HL, Inc. common stock is held directly by ORIX USA (through ORIX HLHZ Holding, LLC, its wholly owned subsidiary), the HL Voting Trust, for the benefit of the HL Holders, non-employee directors, and public shareholders. In addition, prior to the consummation of the IPO, the Company distributed to its existing owners a dividend of $270.0 million , consisting of (i) a short-term note in the aggregate amount of $197.2 million , which was repaid immediately after the consummation of the IPO, and was allocated $94.5 million to ORIX USA and $102.7 million to the HL Holders, (ii) a note to ORIX USA in the amount of $45.0 million (see note 10), and (iii) certain of our non-operating assets to certain of the HL Holders (consisting of non-marketable minority equity interests in four separate businesses that ranged in carrying value from $2.5 million to $11.0 million , and were valued in the aggregate at approximately $22.8 million as of June 30, 2015), together with $5.0 million in cash to be used to complete a potential additional investment and in the administration of these assets in the future. All issued and outstanding Fram shares were converted to HL, Inc. common stock at a ratio of 10.425 shares for each share of Fram stock. Immediately following the IPO, there were two classes of authorized HL, Inc. common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share, and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted into one share of Class A common stock upon transfer thereof, subject to certain exceptions. As of March 31, 2019 , there were 34,036,141 Class A shares held by the public, 54,940 Class A shares held by non-employee directors, and 4,109,721 Class A shares held by ORIX USA. In addition, there were 24,929,520 Class B shares held by the HL Voting Trust, and 2,268,214 Class B shares held by ORIX USA. The Company did not receive any proceeds from the sale of its Class A common stock in the IPO. Expenses related to the corporate reorganization and IPO recorded in the consolidated statements of comprehensive income include the following: • $14,045 , $14,153 and $14,330 of compensation expenses associated with the amortization of restricted stock granted in connection with the IPO for the years ended March 31, 2019 , 2018 , and 2017 , respectively; amortization expense of restricted stock granted in connection with the IPO is being recognized over a four and one-half year vesting period; and • $10,273 , $10,764 and $11,873 of compensation expenses associated with the accrual of certain deferred cash payments granted in connection with the IPO for the years ended March 31, 2019 , 2018 , and 2017 , respectively; accrual expense of deferred cash payments granted in connection with the IPO is being recognized over a four and one-half year vesting period. On February 14, 2017, pursuant to a registered underwritten public offering, we issued and sold 6,000,000 shares of our Class A common stock and certain of our former and current employees and members of our management (the “Selling Stockholders”) sold 2,000,000 shares of our Class A common stock, in each case, at a price to the public of $29.25 per share (the “February 2017 Follow-on Offering”). On March 15, 2017, we issued and sold an additional 900,000 shares of Class A common stock and the Selling Stockholders sold an additional 300,000 shares of Class A common stock in connection with the underwriters’ exercise in full of their option to purchase additional shares in the February 2017 Follow-on Offering. In connection with, and prior to, the February 2017 Follow-on Offering, on February 6, 2017, we entered into a Forward Share Purchase Agreement (the "February 2017 Forward Share Purchase Agreement"), with an indirect wholly owned subsidiary of ORIX USA pursuant to which we agreed to repurchase from ORIX USA on April 5, 2017 the number of shares of our Class B common stock equal to the number of shares of our Class A common stock sold by us in the February 2017 Follow-on Offering (including any shares sold upon the exercise by the underwriters of their option to purchase additional shares of our Class A common stock) for a purchase price per share equal to the public offering price in the February 2017 Follow-on Offering less underwriting discounts and commissions. The cash proceeds from the February 2017 Follow-on Offering that were used to consummate the purchase pursuant to the February 2017 Forward Share Purchase Agreement were held in an escrow account as of March 31, 2017 and presented as restricted cash as discussed in note 2. On April 5, 2017 we settled the transaction provided for in the February 2017 Forward Share Purchase Agreement and acquired 6,900,000 shares of Class B common stock from ORIX USA using the net proceeds we received from the February 2017 Follow-on Offering. In accordance with the terms of the February 2017 Forward Share Purchase Agreement, the purchase price per share was reduced by the per share amount of the dividend paid to ORIX USA on the shares of our Class B common stock subject to the February 2017 Forward Share Purchase Agreement prior to the settlement of such transaction. As the February 2017 Forward Share Purchase Agreement required physical settlement by purchase of a fixed number of shares in exchange for cash, the 6,900,000 shares that were purchased are excluded from the Company's calculation of basic and diluted earnings per share in the Company's financial statements for the year ended March 31, 2017. In addition, as the agreement provides for the refund of any dividends paid during the term on the underlying Class A common stock, such shares are not classified as participating securities and the Company does not apply the two-class method for calculating its earnings per share. On October 25, 2017, pursuant to a registered underwritten public offering, ORIX USA sold 1,750,000 shares of our Class A common stock and certain of our former and current employees and members of our management sold 1,750,000 shares of our Class A common stock, in each case, at a price to the public of $42.00 per share, and such transaction closed on October 30, 2017 (the "October 2017 Follow-on Offering"). On November 3, 2017, ORIX USA sold an additional 125,000 shares of Class A common stock and our former and current employees and members of our management sold an additional 125,000 shares of Class A common stock in connection with the underwriters’ partial exercise of their option to purchase additional shares in the offering. On March 12, 2018, pursuant to a registered underwritten public offering, we issued and sold 2,000,000 shares of our Class A common stock and certain of our former and current employees and members of our management sold 2,000,000 shares of our Class A common stock, in each case, at a price to the public of $47.25 per share (the “March 2018 Follow-on Offering”). In connection with, and prior to, the March 2018 Follow-on Offering, on January 26, 2018, we entered into a Forward Share Purchase Agreement (the "January 2018 Forward Share Purchase Agreement"), with an indirect wholly owned subsidiary of ORIX USA pursuant to which we agreed to purchase from ORIX USA on April 5, 2018 the number of shares of our Class B common stock equal to the number of shares of our Class A common stock sold by us in the March 2018 Follow-on Offering for a purchase price per share equal to the public offering price in the March 2018 Follow-on Offering less underwriting discounts and commissions. The cash proceeds from the March 2018 Follow-on Offering that were used to consummate the purchase pursuant to the January 2018 Forward Share Purchase Agreement were held in an escrow account as of March 31, 2018 and presented as restricted cash as discussed in note 2. On April 5, 2018 we settled the transaction provided for in the January 2018 Forward Share Purchase Agreement and acquired 2,000,000 shares of Class B common stock from ORIX USA using the net proceeds we received from the March 2018 Follow-on Offering. In January 2018 and April 2017 Forward Share Purchase Agreement required physical settlement by purchase of a fixed number of shares in exchange for cash, the 2,000,000 and 6,900,000 shares that were purchased are excluded from the Company's calculation of basic and diluted earnings per share in the Company's financial statements for the years ended March 31, 2018 and 2017. In addition, as the agreement provided for the refund of any dividends paid during the term on the underlying Class A common stock, such shares were not classified as participating securities and the Company does not apply the two-class method for calculating its earnings per share. Expenses related to the February 2017 Follow-on Offering and the February 2017 Forward Share Purchase Agreement included in the consolidated statements of comprehensive income include $1,633 of professional service and other third-party fees and expenses during the year ended March 31, 2017. Expenses related to the October 2017 Follow-on Offering and the March 2018 Follow-on Offering and the January 2018 Forward Share Purchase Agreement included in the consolidated statements of comprehensive income include $2,084 of professional service and other third-party fees and expenses during the year ended March 31, 2018 . In April 2018, the Company completed the acquisition of Quayle Munro Limited, an independent advisory firm that provides corporate finance advisory services to companies underpinned by data & analytics, content, software, and services. In May 2018, the Company completed the acquisition of BearTooth Advisors, an independent advisory business providing strategic advisory and placement agency services to alternative investment managers. On June 4, 2018, pursuant to a registered underwritten public offering, ORIX USA sold 1,985,983 shares of our Class A common stock and certain of our former and current employees and members of our management sold 1,014,017 shares, in each case, at a price to the public of $49.15 per share (the "June 2018 Follow-on Offering"). Concurrently with the closing of the offering, the Company repurchased from ORIX USA 697,000 shares of Class A common stock at a price per share of $49.11 . Expenses related to the June 2018 Follow-on Offering included in the consolidated statements of comprehensive income include $498 of professional service and other third-party fees and expenses during the year ended March 31, 2019 . The Company offers financial services and financial advice to a broad clientele located throughout the United States of America, Europe, the Middle East, and the Asia-Pacific region. The Company has U.S. offices in Los Angeles, San Francisco, Chicago, New York City, Minneapolis, McLean (Virginia), Dallas, Houston, Miami, and Atlanta as well as foreign offices in London, Paris, Frankfurt, Madrid, Amsterdam, Dubai, Sydney, Tokyo, Hong Kong, Beijing and Singapore. Together, the Company and its subsidiaries form an organization that provides financial services to meet a wide variety of client needs. The Company concentrates its efforts toward the earning of professional fees with focused services across the following three business segments: • Corporate Finance provides general financial advisory services in addition to advice on mergers and acquisitions and capital markets offerings. We advise public and private institutions on a wide variety of situations, including buy-side and sell-side transactions, as well as leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, and advise financial sponsors on all types of transactions. The majority of our Corporate Finance revenues consists of fees paid upon the successful completion of the transaction or engagement ("Completion Fees"). A Corporate Finance transaction can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the fees paid at the time an engagement letter is signed ("Retainer Fees") and in some cases fees paid during the course of the engagement ("Progress Fees") that may have been received. • Financial Restructuring provides advice to debtors, creditors and other parties-in-interest in connection with recapitalization/deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. Our Financial Restructuring business segment offers a wide range of advisory services to our clients, including: the structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; litigation support and expert testimony; and procuring debtor-in-possession financing. Although atypical, a Financial Restructuring transaction can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the initial Retainer Fees and/or Progress Fees. • Financial Advisory Services primarily provides valuations of various assets, including: companies; illiquid debt and equity securities; and intellectual property (among other assets and liabilities). These valuations are used for financial reporting, tax reporting, and other purposes. In addition, our Financial Advisory Services business segment renders fairness opinions in connection with mergers and acquisitions and other transactions, and solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions. Also, our Financial Advisory Services business segment provides dispute resolution consulting services to clients where fees are usually based on the hourly rates of our financial professionals. Unlike our Corporate Finance or Financial Restructuring segments, the fees generated in our Financial Advisory Services segment are generally not contingent on the successful completion of a transaction. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company adopted the new revenue recognition standard effective April 1, 2018, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is using the modified retrospective method that results in the Company prospectively changing the presentation of reimbursements of certain out-of-pocket expenses from a net presentation within non-compensation expenses to a gross basis in revenues. This resulted in an increase in both revenues and related out-of-pocket expenses of approximately $33.6 million for the year ended March 31, 2019 . The following table summarizes the effects of adopting the new revenue recognition standard on the Company’s consolidated statements of comprehensive income for the years ended March 31, 2019 . As reported Excluding adoption of ASC 606 Adjustments Revenues $ 1,084,385 $ 1,050,405 $ 33,980 Operating expenses: Employee compensation and benefits 692,073 692,024 49 Travel, meals, and entertainment 42,862 28,865 13,997 Rent 38,672 38,672 — Depreciation and amortization 14,475 14,475 — Information technology and communications 21,512 20,555 957 Professional fees 23,035 19,038 3,997 Other operating expenses 32,229 17,391 14,838 Total operating expenses 864,858 831,020 33,838 Income before provision for income taxes 224,320 224,178 142 Provision for income taxes 65,214 65,173 41 Net income $ 159,106 $ 159,005 $ 101 Disaggregation of Revenue The Company disaggregates revenue based on its business segment and geographical area results and believes that the same information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows. See note 17. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred income (contract liability) until the performance obligations are satisfied. Costs incurred in fulfilling advisory contracts with point-in-time revenue recognition are recorded as a contract asset when the costs (i) relate directly to a contract, (ii) generate or enhance resources of the Company that will be used in satisfying performance obligations, and (iii) are expected to be recovered. The Company amortizes the contract asset costs related to fulfilling a contract based on recognition of fee revenue for the corresponding contract. As the Company is prospectively changing the presentation of costs incurred in fulfilling advisory contracts from a net presentation within non-compensation expenses to a gross basis in revenues, the Company records a contract liability for the reimbursable costs incurred until the fee revenue is recognized. Costs incurred in fulfilling an advisory contract with over-time revenue recognition are expensed as incurred. The change in the Company’s contract assets and liabilities during the period primarily reflects the timing difference between the Company’s performance and the customer’s payment. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: Balance as of (4) (Decrease)/Increase Balance as of Receivables (1) $ 77,259 $ (12,462 ) $ 64,797 Unbilled work in process (2) $ 45,862 $ 26,029 $ 71,891 Contract Assets (1) $ 4,675 $ 1,358 $ 6,033 Contract Liabilities (3) $ 30,872 $ (3,060 ) $ 27,812 _______________________ (1) Included in accounts receivable in the March 31, 2019 consolidated balance sheet (2) Included in unbilled work in process in the March 31, 2019 consolidated balance sheet (3) Deferred income in the March 31, 2019 consolidated balance sheet (4) See note 2 (m) As a practical expedient, the Company does not disclose information about remaining performance obligations pertaining to (i) contracts that have an original expected duration of one year or less and/or (ii) contracts where the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that is or forms part of a single performance obligation. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at March 31, 2019 . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC") and include all information and footnotes required for financial statement presentation, and include all disclosures required under GAAP for annual financial statements. (b) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries where it has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. The Company carries its investments in unconsolidated entities over which it has significant influence but does not control using the equity method, and includes its ownership share of the income and losses in other (income) expense, net in the consolidated statements of comprehensive income. (c) Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements. Management estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities at the reporting date. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Items subject to such estimates and assumptions include: the allowance for doubtful accounts; the valuation of deferred tax assets, goodwill, accrued expenses, and share based compensation; the allocation of goodwill and other assets across the reporting units (segments); and reserves for income tax uncertainties and other contingencies. (d) Recognition of Revenue Revenues consist of fee revenues from advisory services and reimbursed costs incurred in fulfilling the contract. Revenues reflect revenues from our Corporate Finance (“CF”), Financial Restructuring (“FR”), and Financial Advisory Services (“FAS”) business segments. Revenues for all three business segments are recognized upon satisfaction of the performance obligation and may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the standard effective April 1, 2018 and under the new standard, we recognize revenue from contracts with customers upon satisfaction of our performance obligations by transferring the promised services to the customers. A service is transferred to a customer when the customer obtains control of and derives benefit from that service. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The substantial majority of the Company’s advisory fees (i.e., the success related Completion Fees) are considered variable and constrained as they are contingent upon a future event which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court). Revenues from Corporate Finance engagements primarily consist of fees generated in connection with advisory services related to mergers and acquisitions, capital markets, and other corporate finance transactions. Completion Fees from these engagements are recognized at a point in time when the related transaction has been effectively closed. At that time, the Company has transferred control of the promised service and the customer obtains control. Corporate Finance contracts generally contain a variety of promised services that may be capable of being distinct, but they are not distinct within the context of the contract as the various services are inputs to the combined output of successfully brokering a specific transaction. Effective April 1, 2018, fees received prior to the completion of the transaction, including Retainer Fees and Progress Fees, are deferred within deferred income in the consolidated balance sheets and not recognized until the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management’s judgment is required in determining when a transaction is considered to be terminated. Prior to April 1, 2018, these various fees were generally recognized on a monthly basis, except in situations where there was uncertainty as to the timing of collection of the amount due. Progress Fees were recognized based on management’s estimates of the relative proportion of services provided through the financial reporting date to the total services required to be performed. Revenues from Financial Restructuring engagements primarily consist of fees generated in connection with advisory services to debtors, creditors and other parties-in-interest involving recapitalization or deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. Retainer Fees and Progress Fees from restructuring engagements are recognized over time using a time elapsed measure of progress as our clients simultaneously receive and consume the benefits of those services as they are provided. Completion Fees from these engagements are recognized at a point in time when the related transaction has been effectively closed. At that time, the Company has transferred control of the promised service and the customer obtains control. Revenues from Financial Advisory Services engagements primarily consist of fees generated in connection with valuation services and rendering fairness, solvency and financial opinions. Revenues are recognized at a point in time as these engagements include a singular objective that does not transfer any notable value to the Company’s clients until the opinions have been rendered and delivered to the client. However, certain engagements consists of advisory services where fees are usually based on the hourly rates of our financial professionals. Such revenues are recognized over time as the benefits of these advisory services are transferred to the Company’s clients throughout the course of the engagement and as a practical expedient, the Company has elected to use the ‘as-invoiced’ approach to recognize revenue. Taxes, including value added taxes, collected from customers and remitted to governmental authorities are accounted for on a net basis, and therefore, are excluded from revenue in the consolidated statements of comprehensive income. (e) Operating Expenses The majority of the Company’s operating expenses are related to compensation for employees, which includes the amortization of the relevant portion of the Company’s share-based incentive plans (note 14). Other examples of operating expenses include: travel, meals and entertainment; rent; depreciation and amortization; information technology and communication; professional fees and other operating expenses, which include such items as office expenses, business license and registration fees, non-income-related taxes, legal expenses, related-party support services, and charitable contributions. (f) Translation of Foreign Currency Transactions The reporting currency for the consolidated financial statements of the Company is the U.S. dollar. The assets and liabilities of subsidiaries whose functional currency is other than the U.S. dollar are included in the consolidation by translating the assets and liabilities at the reporting period-end exchange rates; however, revenues and expenses are translated using the applicable exchange rates determined on a monthly basis throughout the year. Resulting translation adjustments are reported as a separate component of accumulated other comprehensive loss, net of applicable taxes. From time to time, we enter into transactions to hedge our exposure to certain foreign currency fluctuations through the use of derivative instruments or other methods. As of March 31, 2019 , 2018 , and 2017 , we entered into a foreign currency forward contract between the euro and pound sterling with an aggregate notional value of approximately EUR 1.5 million , 9 million , and 5 million . The fair value representing a (loss) gain included in other operating expenses of $(1) , $90 , and $58 during the twelve months ended March 31, 2019 , 2018 , and 2017 , respectively. (g) Property and Equipment Property and equipment are stated at cost. Repair and maintenance charges are expensed as incurred and costs of renewals or improvements are capitalized at cost. Depreciation on furniture and office equipment is provided on a straight-line basis over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the lesser of the lease term or estimated useful life. (h) Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held at banks and highly liquid investments with original maturities of three months or less. At March 31, 2019 and 2018 , the Company had cash balances with banks in excess of insured limits. The Company has not experienced any losses in its cash accounts and believes it is not exposed to any significant credit risk with respect to cash and cash equivalents. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The amendments in this ASU require restricted cash and restricted cash equivalents to be included with the cash and cash equivalents balances when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017 (fiscal year ending March 31, 2019 for the Company) with early adoption permitted. In April 2018, the Company adopted ASU No. 2016-18 and it did not have a material impact on the Company's operating results and financial position. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. March 31, 2019 March 31, 2018 Cash and cash equivalents $ 285,746 $ 206,723 Restricted cash 369 93,500 Total cash, cash equivalents, and restricted cash $ 286,115 $ 300,223 Restricted cash as of March 31, 2018 consisted of cash received from the issuance of shares in the March 2018 Follow-on Offering, which is required to be set aside pursuant to the January 2018 Forward Share Purchase Agreement (notes 1 and 3). The restriction lapsed when the related forward purchase liability was paid off. Restricted cash as of March 31, 2019 consisted of a letter of credit issued for our Frankfurt office. (i) Investment Securities Investment securities consist of corporate debt, U.S. Treasury, and certificates of deposit with original maturities over 90 days. As of December 31, 2018, the Company has reclassified its investment securities from held-to-maturity to trading as it may sell them with the intent to recognize short-term gains or losses and records them at fair market value. As of the date of transfer, the amortized cost of the investment securities was $40,944 and net unrealized gain of $16 was included in other operating expense, net in the accompanying consolidated statements of comprehensive income. (j) Accounts Receivable The allowance for doubtful accounts on receivables reflects management’s best estimate of probable inherent losses determined principally on the basis of historical experience and review of uncollected revenues and is recorded through provision for bad debts which is included in other operating expenses, net in the accompanying consolidated statements of comprehensive income. Amounts deemed to be uncollectible are written off against the allowance for doubtful accounts. (k) Income Taxes Prior to the IPO, ORIX USA and its subsidiaries, including the Company, filed consolidated federal income tax returns and separate returns in state and local jurisdictions and did so for fiscal year 2016 through the date of the IPO. The Company reported income tax expense as if it filed separate returns in all jurisdictions. Following the IPO, the Company files a consolidated federal income tax return separate from ORIX USA, as well as consolidated and separate returns in state and local jurisdictions, and the Company reports income tax expense on this basis. We account for income taxes in accordance with ASC Topic 740, Income Taxes, which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The measurement of the deferred items is based on enacted tax laws and applicable tax rates. A valuation allowance related to a deferred tax asset is recorded if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company utilized a comprehensive model to recognize, measure, present, and disclose in its financial statements any uncertain tax positions that have been taken or are expected to be taken on a tax return. The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained. Interest expense and penalties related to income taxes are included in the provision for income taxes in the accompanying consolidated statements of comprehensive income. Recently enacted U.S. tax legislation, the Tax Cuts and Jobs Act, was signed into law on December 22, 2017 (the "Tax Act"). On the same day, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In accordance with SAB 118, the Company made estimates and recorded provisional amounts for the Tax Act during the year ended March 31, 2018, including re-measurement of deferred tax assets and liabilities as well as the one-time deemed repatriation transition tax (the “Toll Charge”) on certain un-repatriated earnings of non-U.S. subsidiaries. As of the quarter ended December 31, 2018, the Company finalized the provisional estimates made under SAB 118. In particular, we revised the provisional estimate made for the Toll Charge obligation and recognized additional tax expense of $1,313 resulting in an insignificant impact to the effective tax rate. The Company included these adjustments within income tax expense from continuing operations. No material adjustments were made in the quarter ended March 31, 2019. The Global Intangible Low-Taxed Income tax (“GILTI inclusion”) can be recognized in the financial statements through an accounting policy election by either recording a period cost (permanent item) or providing deferred income taxes stemming from certain basis differences that are expected to result in GILTI inclusion. The Company has elected to account for the tax impacts of the GILTI inclusion as a period cost. The Company’s estimated tax impact as a result of the Tax Act was based upon the information and guidance available as of March 31, 2019. (l) Goodwill and Intangible Assets Goodwill represents an acquired company’s acquisition cost over the fair value of acquired net tangible and intangible assets. Goodwill is the net asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets identified and accounted for include tradenames and marks, backlog, developed technologies, and customer relationships. Those intangible assets with finite lives, including backlog and customer relationships, are amortized over their estimated useful lives. When HL CA was acquired by Fram in January 2006, approximately $392,600 of goodwill and $192,210 of indefinite-lived intangible assets were generated and recognized. In accordance with ASC Topic 805, Business Combinations, since HL CA was wholly owned by Fram, this goodwill and all other purchase accounting-related adjustments were pushed down to the Company’s reporting level. Through both foreign and domestic acquisitions made directly by HL CA and the Company since 2006, additional goodwill of approximately $202,212 , inclusive of foreign currency translations has been recognized. Goodwill is reviewed annually for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with ASU No. 2011-08, Testing Goodwill for Impairment, and amended by ASU 2017-04, Simplifying the Test for Goodwill Impairment which permits management to make a qualitative assessment as to whether one of its reporting unit’s fair value is less than its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Impairment testing of goodwill requires a significant amount of judgment in assessing qualitative factors and estimating the fair value of the reporting unit, if necessary. The fair value is determined using an estimated market value approach, which considers estimates of future after tax cash flows, including a terminal value based on market earnings multiples, discounted at an appropriate market rate. As of March 31, 2019 , 2018 , and 2017 , management concluded that it was not more likely than not that the Company’s reporting units’ fair value was less than their carrying amount and no further impairment testing had been considered necessary. Indefinite-lived intangible assets are reviewed annually for impairment in accordance with ASU 2012-02, Testing Indefinite-lived Intangible Assets for Impairment, which provides management the option to perform a qualitative assessment. If it is more likely than not that the asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment expense. As of March 31, 2019 , 2018 , and 2017 , management concluded that it was not more likely than not that the fair values were less than the carrying values. Intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group (inclusive of other long-lived assets) be tested for possible impairment, management first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As of March 31, 2019 , 2018 , and 2017 , no events or changes in circumstances were identified that indicated that the carrying amount of the finite-lived intangible assets were not recoverable. (m) Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of Effective Date which deferred the effective date of the new standard to annual and interim periods within that reporting period beginning after December 15, 2017 (fiscal year ending March 31, 2019 for the Company). The Company adopted the standard effective April 1, 2018 using the modified retrospective method which requires the recognition of a cumulative-effect adjustment as of that date. Results for periods beginning after March 31, 2018 are presented under the new revenue and cost recognition guidance, while prior period amounts were not restated and continue to be reported in accordance with the Company's previous revenue and cost recognition policies. The Company applied the new standard to contracts that have not yet been completed as of the adoption date. The Company’s adoption efforts included the identification of revenue within the scope of the standard and the evaluation of revenue contracts. Upon adoption, the Company recorded a cumulative effect adjustment that resulted in a reduction in retained earnings of $19.3 million , a reduction in deferred tax liabilities of $6.9 million and an increase to deferred income of $26.2 million . This cumulative adjustment was related to certain engagements for which revenue was being recognized over time prior to adoption which are now recognized point-in-time under the new standard. See notes 2(d) and 3 for further information. In February 2016, the FASB issued ASU No. 2016-02, Leases. The amendments in this ASU requires lessees to recognize right-of-use assets and lease liabilities in the consolidated balance sheets for all leases with terms longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right-of-use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option, or not exercise an option to terminate the lease. In addition, this ASU requires expanded disclosures about the nature and terms of lease agreements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 (year ending March 31, 2020 for the Company). The Company adopted this ASU in April 2019 under a modified retrospective approach. The impact of adopting this ASU is expected to result in right of use asset and lease liability of approximately $150 million on the Company's consolidated statements of financial condition as of April 1, 2019. See note 16 for a summary of our undiscounted minimum rental commitments under operating leases as of March 31, 2019 . In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address the classification of certain cash receipts and cash payments in the statement of cash flows as well as the presentation and disclosure of restricted cash. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017 (fiscal year ending March 31, 2019 for the Company). The Company adopted guidance effective April 1, 2018 and its application did not result in changes to any classification in the consolidated statements of cash flows, and did not have a material impact on our consolidated financial position or results of operations. In November 2016, the FASB issued ASU No. 2016-18, Restricted cash. The amendments in this ASU address the classification and presentation of changes in restricted cash and restricted cash equivalents in the statement of cash flows. Under the new guidance, an entity should include the amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of period total amounts shows on the statement of cash flows. The Company adopted guidance effective April 1, 2018 and its application did not result in changes to the classification and presentation of changes in restricted cash and restricted cash equivalents in the consolidated statements of cash flows, and did not have a material impact on our consolidated financial position or results of operations. In January 2017, the FASB issued ASU No. 2017-04, Intangible - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The amendments in this ASU do not change the guidance on Step 1 of the goodwill impairment test but eliminates the requirement to calculate an implied goodwill value using Step 2. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but should not exceed the total amount of goodwill allocated to that reporting unit. Also, an entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019 (fiscal year ending March 31, 2021 for the Company) with early adoption permitted. The Company adopted guidance effective April 1, 2018 and its application did not have a material impact on the consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The clarified guidance provides a more defined framework to use in determining when a set of assets and activities constitute a business. The clarified definition was effective for the Company on April 1, 2018 and was applied on a prospective basis. Application of this guidance did not have an effect on the consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting. The amended guidance states an entity should account for the effects of a modification unless certain criteria are met which include that the modified award has the same fair value, vesting conditions and classification as the original award. The guidance is first effective for our fiscal year beginning April 1, 2019 on a prospective basis; however, early adoption is permitted. Given that this guidance applies to specific transactions and would only become relevant in certain circumstances, we are unable to estimate the impact, if any, this new guidance may have on our financial position. |
RELATED_PARTY TRANSACTIONS
RELATED‑PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED‑PARTY TRANSACTIONS | RELATED‑PARTY TRANSACTIONS The Company provides financial advisory services to ORIX USA and its affiliates and certain other related parties, and received fees for these services totaling approximately $8,819 , $3,006 , and $7,504 during the years ended March 31, 2019 , 2018 , and 2017 , respectively. The Company provides certain management and administrative services for the Company's unconsolidated entities and receives fees for these services. The Company received fees of $482 , $286 , and $461 during the years ended March 31, 2019 , 2018 , and 2017 , respectively. In connection with the IPO, ORIX USA and the Company entered into a Transition Services Agreement, pursuant to which ORIX USA provided services for Sarbanes-Oxley compliance, internal audit, and other services for specified fees. Expenses incurred by the Company related to these services were $0 , $0 , and $269 for the years ended March 31, 2019 , 2018 , and 2017 , respectively, which are included in professional fees in the accompanying consolidated statements of comprehensive income. To the extent that ORIX USA and its affiliates pay for expenses of the Company, ORIX USA is reimbursed for such payments by the Company. Interest income earned by the Company related to cash balances held by the affiliate of ORIX USA was $0 , $0 and $33 for the years ended March 31, 2019 , 2018 and 2017 , respectively. In November 2015, the Company entered into a joint venture arrangement with Leonardo & Co. NV, a European-based investment banking firm ("Leonardo"), in relation to Leonardo's Italian business by means of acquisition of a minority ( 49% ) interest. In conjunction with this transaction, a subsidiary of the Company loaned the joint venture EUR 5,500 ( $6,492 and $6,034 as of March 31, 2019 and 2018 , respectively) which is included in receivables from affiliates and which bears interest at 1.5% and matures no later than November 2025. Interest income earned by the Company related to this receivable from affiliate was approximately $96 , $97 , and $90 during the years ended March 31, 2019 , 2018 , and 2017 , respectively. Included in receivables from affiliates is also reimbursable third party costs incurred on behalf of Leonardo totaling approximately $2,139 and $2,698 as of March 31, 2019 , and 2018 , respectively. As described in note 1 above, in connection with, and prior to, the February 2017 Follow-on Offering, on February 6, 2017, the Company entered into the February 2017 Forward Share Purchase Agreement, pursuant to which the Company agreed to repurchase from ORIX USA on April 5, 2017 the number of shares of our Class B common stock equal to the number of shares of our Class A common stock sold by the Company in the February 2017 Follow-on Offering (including any shares sold upon the exercise by the underwriters of their option to purchase additional shares of our Class A common stock) for a purchase price per share equal to the public offering price in the February 2017 Follow-on Offering less underwriting discounts and commissions. On April 5, 2017, the Company settled the transaction provided for in the February 2017 Forward Share Purchase Agreement and acquired 6,900,000 shares of Class B common stock from ORIX USA using the net proceeds we received from the February 2017 Follow-on Offering and the shares were retired. In accordance with the terms of the February 2017 Forward Share Purchase Agreement, the purchase price per share under the February 2017 Forward Share Purchase Agreement was reduced by the per share amount of the dividend paid to ORIX USA on the shares of our Class B common stock subject to the February 2017 Forward Share Purchase Agreement prior to the settlement of the transaction. In July 2017, the Company purchased the remaining interest of Houlihan Lokey (Australia) Pty Limited ("HL Australia"), which was historically operating as our joint venture in Australia. As part of the consideration paid, a loan receivable from certain principals of the joint venture was forgiven. In addition, as a result of the acquisition we eliminated from our consolidated financial statements as of March 31, 2019 a loan agreement entered into with HL Australia in February 2017 for AUD 2,500 ( $2,001 as of July 31, 2017) which bore interest at 2.0% and was previously included in receivables from affiliates. Interest income earned by the Company related to this receivable from affiliate was approximately $0 and $13 during the years ended March 31, 2019 and 2018 , respectively. In connection with, and prior to, the March 2018 Follow-on Offering, on January 26, 2018, the Company entered into the January 2018 Forward Share Purchase Agreement, pursuant to which the Company agreed to repurchase from ORIX USA on April 5, 2018 the number of shares of our Class B common stock equal to the number of shares of our Class A common stock sold by the Company in the March 2018 Follow-on Offering for a purchase price per share equal to the public offering price in the March 2018 Follow-on Offering less underwriting discounts and commissions. On April 5, 2018, the Company settled the transaction provided for in the January 2018 Forward Share Purchase Agreement and acquired 2,000,000 shares of Class B common stock from ORIX USA using the net proceeds we received from the March 2018 Follow-on Offering and the shares were retired. In accordance with the terms of the January 2018 Forward Share Purchase Agreement, the purchase price per share under the January 2018 Forward Share Purchase Agreement was reduced by the per share amount of the dividend paid to ORIX USA on the shares of our Class B common stock subject to the January 2018 Forward Share Purchase Agreement prior to the settlement of the transaction. As described in note 1 above, on June 4, 2018, pursuant to the June 2018 Follow-on Offering, ORIX USA sold 1,985,983 shares of our Class A common stock and certain of our former and current employees and members of our management sold 1,014,017 shares , in each case, at a price to the public of $49.15 per share. Concurrently with the closing of the offering, the Company repurchased from ORIX USA 697,000 shares of Class A Common Stock at a purchase price per share of $49.11 . In the accompanying consolidated balance sheet, the Company carried accounts receivable and unbilled work in progress from related parties totaling approximately $3 and $21 as of March 31, 2019 and 2018 , respectively. The Company also deferred income from related parties for service fees totaling $34 and $25 as of March 31, 2019 and 2018 , respectively. Other assets in the accompanying consolidated balance sheets includes loans receivable from certain employees of $15,228 and $7,489 as of March 31, 2019 and 2018 , respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with ASC Topic 820, Fair Value Measurement : • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. For Level 3 investments in which pricing inputs are unobservable and limited market activity exists, management's determination of fair value is based on the best information available, may incorporate management's own assumptions and involves a significant degree of judgment. The following methods and assumptions were used by the Company in estimating fair value disclosures: Certificates of deposit : Fair values for certificates of deposit are based upon a discounted cash flow approach. Corporate debt securities : All fair value measurements are obtained from a third-party pricing service and are not adjusted by management. U.S. Treasury securities : Fair values for U.S. treasury securities are based on quoted prices from recent trading activity of identical or similar securities. All fair value measurements are obtained from a third-party pricing service and are not adjusted by management. The following table presents information about the Company's financial assets, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values: March 31, 2019 Level I Level II Level III Total Corporate debt securities $ — $ 116,577 $ — $ 116,577 U.S. Treasury securities — 8,681 — 8,681 Total asset measured at fair value $ — $ 125,258 $ — $ 125,258 March 31, 2018 Level I Level II Level III Total Certificates of deposit $ — $ 10,106 $ — $ 10,106 Corporate debt securities — 183,578 — 183,578 U.S. Treasury securities — 15,582 — 15,582 Total asset measured at fair value $ — $ 209,266 $ — $ 209,266 In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the level of input that is most significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the instrument. The Company had no transfers between fair value levels for the year ended March 31, 2019 . The fair values of the financial instruments represent the amounts that would be received to sell assets or that would be paid to transfer liabilities in an orderly transaction between market participants as of a specified date. Fair value measurements maximize the use of observable inputs; however, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, as well as available observable and unobservable inputs. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, unbilled work in process, receivables from affiliates, accounts payable and accrued expenses, deferred income and other liabilities approximates fair value due to the short maturity of these instruments. The carrying value of the loans to employees included in other assets, loans payable to former shareholders and an unsecured loan which is included in loan payable to non-affiliates, approximates fair value due to the variable interest rate borne by those instruments. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES As of March 31, 2018, the Company classified its investment securities as held-to-maturity. As of December 31, 2018, the Company has reclassified its investment securities from held-to-maturity to trading and measures them at fair value in the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in other operating expense, net in the accompanying consolidated statements of comprehensive income. The amortized cost, gross unrealized gains (losses), and fair value of securities were as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 116,220 $ 372 $ (15 ) $ 116,577 U.S. Treasury Securities 8,608 73 — 8,681 Total securities with unrealized gains $ 124,828 $ 445 $ (15 ) $ 125,258 March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 183,632 $ 13 $ (67 ) $ 183,578 Certificate of deposit 10,106 — — 10,106 U.S. Treasury Securities 15,581 11 (10 ) 15,582 Total securities with unrealized gains $ 209,319 $ 24 $ (77 ) $ 209,266 Scheduled maturities of the Company's debt securities within the investment securities portfolio were as follows: March 31, 2019 March 31, 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 96,109 $ 96,175 $ 209,319 $ 209,266 Due within years two through five 28,719 29,083 — — Total debt within the investment securities portfolio $ 124,828 $ 125,258 $ 209,319 $ 209,266 |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS Year Ended March 31, 2019 2018 Balance-beginning $ 11,391 $ 11,199 Provision for bad debt 1,707 1,983 Write-off of uncollectible accounts (7,502 ) (1,791 ) Balance-ending $ 5,596 $ 11,391 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net of accumulated depreciation consist of the following: Useful Lives March 31, 2019 March 31, 2018 Equipment 5 Years $ 7,916 $ 6,653 Furniture and fixtures 5 Years 19,445 19,189 Leasehold improvements 10 Years 34,370 31,916 Computers and software 3 Years 11,499 10,346 Other N/A 1,117 1,120 Total cost 74,347 69,224 Less: accumulated depreciation (43,313 ) (37,078 ) Total net book value $ 31,034 $ 32,146 Additions to property and equipment during the years ended March 31, 2019 and 2018 were primarily related to costs incurred to furnish new leased office space and refurbish existing space, and acquisitions. Depreciation expense of $8,434 , $6,195 , and $5,708 was recognized during the years ended March 31, 2019 , 2018 , and 2017 , respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangibles consist of the following. Useful Lives March 31, 2019 March 31, 2018 Goodwill Indefinite $ 594,812 $ 528,889 Tradename-Houlihan Lokey Indefinite 192,210 192,210 Other intangible assets Varies 18,614 15,464 Total cost 805,636 736,563 Less: accumulated amortization (11,032 ) (13,253 ) Total net book value (before taxes) 794,604 723,310 Deferred tax liability (51,676 ) (50,541 ) Total net book value $ 742,928 $ 672,769 Goodwill attributable to the Company’s business segments is as follows: Business Segments April 1, 2018 Changes (1) March 31, 2019 Corporate Finance $ 273,812 $ 66,470 $ 340,282 Financial Restructuring 163,362 (547 ) 162,815 Financial Advisory Services 91,715 — 91,715 Total $ 528,889 $ 65,923 $ 594,812 _______________________ (1) Changes were related to the acquisitions discussed in note 1 and foreign currency translation adjustments. Amortization expense of approximately $6,041 , $1,710 , and $3,145 was recognized for the years ended March 31, 2019 , 2018 , and 2017 , respectively. The estimated future amortization for finite-lived intangible assets for each of the next five years are as follows: Year Ended March 31, 2020 $ 6,294 2021 711 2022 157 2023 7 2024 7 |
LOANS PAYABLE
LOANS PAYABLE | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | LOANS PAYABLE In August 2015, prior to the IPO the Company paid a dividend to its shareholders, a portion of which was paid to ORIX USA in the form of a $45.0 million note that bore interest at a rate of LIBOR plus 165 basis points or 4.36% and 4.31% as of March 31, 2019 and 2018 , respectively. The Company paid interest on the note of $0 , $62 and $806 for the years ended March 31, 2019 , 2018 , and 2017, respectively. Beginning on June 30, 2016, the Company was required to make quarterly repayments of principal in the amount of $7.5 million , with the remaining principal amount due on the second anniversary of the completion of the IPO. The loan was repaid in full in May 2017. In August 2015, the Company entered into a revolving line of credit with Bank of America, N.A., which allows for borrowings of up to $75.0 million and originally matured in August 2017. On July 28, 2017, the Company extended the maturity date of the revolving credit facility to August 18, 2019 (or if such date is not a business day, the immediately preceding business day). The agreement governing this facility provides that borrowings bear interest at an annual rate of LIBOR plus 1.00% , commitment fees apply to unused amounts, and contains debt covenants which require that the Company maintain certain financial ratios. As of March 31, 2019 , no principal was outstanding under the line of credit. The Company paid interest and unused commitment fees of $228 , $228 and $400 for the years ended March 31, 2019 , 2018 , and 2017, respectively, under the line of credit. Prior to the IPO, Fram maintained certain loans payable to former shareholders consisting of unsecured notes payable, which were transferred to the Company in conjunction with the IPO. The interest rate on the individual notes was 3.92% and 3.10% as of years ended March 31, 2019 and 2018 , respectively, and the maturity dates range from 2019 to 2027. The Company incurred interest expense on these notes of $96 , $124 and $203 for the years ended March 31, 2019 , 2018 , and 2017, respectively. An acquisition made in January 2015 included non-contingent consideration with a carrying value of $226 as of each of March 31, 2019 and March 31, 2018, which is included in other liabilities in the accompanying consolidated balance sheets. In November 2015, the Company acquired the investment banking operations of Leonardo in Germany, the Netherlands, and Spain, and made a 49% investment in Leonardo's operations in Italy. Total consideration included an unsecured loan of EUR 14.0 million payable on November 16, 2040, which is included in loan payable to non-affiliates in the accompanying consolidated balance sheets. Under certain circumstances, the note may be paid in part or in whole over a five year period in equal annual installments. This loan bears interest at an annual rate of 1.50% . In each of January 2017, December 2017 and December 2018, we paid a portion of this loan in the amount of EUR 2.9 million . The Company incurred interest expense on this loan of $131 , $179 and $213 for the years ended March 31, 2019 , 2018 , and 2017 , respectively. An acquisition made in January 2017 included non-contingent consideration with a carrying value of $1,983 and $1,918 as of March 31, 2019 and 2018 , respectively, which is included in other liabilities in the accompanying consolidated balance sheets. In April 2018, the Company acquired Quayle Munro Limited. Total consideration included non-interest bearing unsecured convertible loans totaling GBP 10.5 million payable on May 31, 2022, which is included in other liabilities in the accompanying consolidated balance sheet. Under certain circumstances, the notes may be exchanged for Company stock over a three year period in equal annual installments starting on May 31, 2020. The Company incurred imputed interest expense on these notes of $325 for the year ended March 31, 2019 . In May 2018, the Company acquired BearTooth Advisors. Total consideration included an unsecured note of $2.8 million bearing interest at an annual rate of 2.88% and payable on May 21, 2048. See note 16 for aggregated 5-year maturity table on loans payable. |
OTHER COMPREHENSIVE INCOME AND
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS The only component of other comprehensive income relates to foreign currency translation adjustments of $(16,338) , $7,961 , and $(7,304) for the years ended March 31, 2019 , 2018 , and 2017 , respectively. The change in foreign currency translation was impacted by the vote in the U.K. to withdraw from the European Union. We are currently in a period in which the terms of withdrawal are being negotiated and there may be impact on our European business that are unknown at this time. We believe the change in foreign currency translation will become more volatile, but we do not expect this to have a material impact on our operating results and financial position. Accumulated other comprehensive loss at March 31, 2019 , 2018 , and 2017 was comprised of the following: Balance, April 1, 2016 $ (14,613 ) Foreign currency translation adjustments (7,304 ) Balance, March 31, 2017 $ (21,917 ) Foreign currency translation adjustments 7,961 Balance, March 31, 2018 $ (13,956 ) Foreign currency translation adjustments (16,338 ) Balance, March 31, 2019 $ (30,294 ) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s provision for income taxes was $65,214 , $45,553 , and $70,144 for the years ended March 31, 2019 , 2018 , and 2017 , respectively. This represents effective tax rates of 29.1% , 20.9% , and 39.3% for the years ended March 31, 2019 , 2018 , and 2017 , respectively. The primary drivers of the Company’s effective tax rate being higher than the federal statutory rate of 21.0% for the year ended March 31, 2019 were the provision for state taxes, certain non-deductible expenses including limits on deductibility of executive compensation under IRC Section 162(m), limits on the deductibility of certain meal and entertainment expense items, and the movement in uncertain tax positions. The increase in the Company’s tax rate during the year ended March 31, 2019 relative to the year ended March 31, 2018 was primarily as a result of ASU 2016-09, Compensation - Stock Compensation, which resulted in a decrease to the provision for income taxes due to the vesting of share awards that were accelerated during the calendar year ended December 31, 2017, as well as the Tax Act that created a rate benefit upon enactment in the 2018 fiscal year due to the Company’s re-measurement of deferred tax items. The Tax Act reduced the U.S. federal corporate tax rate from 35.0% to 21.0% for all corporations effective for tax years beginning after December 31, 2017. For fiscal year companies, the change in law requires the application of a blended rate, which in the Company’s case is approximately 31.5% for the fiscal year ending March 31, 2018 . Beginning with the fiscal year ended March 31, 2019 , the applicable statutory rate is 21.0% . The provision (benefit) for income taxes on operations for the years ended March 31, 2019 , 2018 , and 2017 is comprised of the following approximate values: March 31, 2019 March 31, 2018 March 31, 2017 Current: Federal $ 47,101 $ 34,638 $ 60,024 State and local 22,094 9,768 12,686 Foreign 6,706 7,716 3,527 Subtotal 75,901 52,122 76,237 Deferred: Federal (10,665 ) (2,398 ) (7,262 ) State and local (1,997 ) (646 ) (962 ) Foreign 1,975 (3,525 ) 2,131 Subtotal (10,687 ) (6,569 ) (6,093 ) Total $ 65,214 $ 45,553 $ 70,144 The provision for income taxes on operations for the years ended March 31, 2019 , 2018 , and 2017 is reconciled to the income taxes computed at the statutory federal income tax rate (computed by applying the federal corporate rate of 21.0% for 2019, 31.5% for 2018 and 35% for 2017 to consolidated operating income before provision for income taxes) as follows: March 31, 2019 March 31, 2018 March 31, 2017 Federal income tax provision computed at statutory rate $ 47,107 21.0 % $ 68,618 31.5 % $ 62,470 35.0 % State and local taxes, net of federal tax effect 12,944 5.8 % 7,600 3.5 % 8,139 4.6 % Tax impact from foreign operations (2,098 ) (0.9 )% (3,972 ) (1.8 )% (1,741 ) (1.0 )% Nondeductible expenses 3,797 1.7 % 1,414 0.6 % 1,422 0.8 % Nondeductible public offering-related expenses — — % — — % 562 0.3 % Stock compensation (8 ) — % (16,173 ) (7.4 )% — — % Uncertain tax positions, true-up items, and other 2,159 0.9 % (1,203 ) (0.6 )% (708 ) (0.4 )% Enactment of the Tax Act 1,313 0.6 % (10,731 ) (4.9 )% — — % Total $ 65,214 29.1 % $ 45,553 20.9 % $ 70,144 39.3 % Deferred income taxes arise principally from temporary differences between book and tax recognition of income, expenses, and losses relating to financing and other transactions. The deferred income taxes on the accompanying consolidated balance sheets at March 31, 2019 , 2018 , and 2017 comprise the following: March 31, 2019 March 31, 2018 March 31, 2017 Deferred tax assets: Deferred compensation expense/accrued bonus $ 48,501 $ 32,358 $ 57,379 Allowance for doubtful accounts 675 2,347 4,920 US foreign tax credits 2,523 3,865 — Other, net 7,789 11,271 11,235 Total deferred tax assets 59,488 49,841 73,534 Deferred tax asset valuation allowance (11,369 ) (13,334 ) (10,984 ) Total deferred tax assets 48,119 36,507 62,550 Deferred tax liabilities: Intangibles (51,676 ) (50,541 ) (77,184 ) Accounts receivable and work in process (1,647 ) (8,146 ) (16,562 ) Total deferred tax liabilities (53,323 ) (58,687 ) (93,746 ) Net deferred tax liabilities $ (5,204 ) $ (22,180 ) $ (31,196 ) A valuation allowance is required when it is more likely than not that some portion of the deferred tax assets will not be realized. The Company has determined that deferred tax assets related to US foreign tax credits and certain foreign deferred tax assets are not likely to be realized. The Company’s credit carryforwards as of March 31, 2019 were primarily driven as a result of U.S. Tax Reform. The Company assessed the realizability of these foreign tax credits based on currently enacted and proposed legislation issued by the U.S. Department of Treasury and the Internal Revenue Service, and recorded a full valuation allowance of $2,523 and $3,865 against these assets for March 31, 2019 and 2018, respectively. The Company does not expect to utilize these foreign tax credits in the future as the Company does not currently project future foreign source income. In addition, certain deferred tax assets related to tax deductible goodwill from previous acquisitions and net operating losses generated from these deductions were not more likely than not realizable; therefore, the Company maintained valuation allowances for March 31, 2019, 2018 and 2017 of $8,846 , $9,469 and $10,984 , respectively. As of March 31, 2019 , 2018 , and 2017 , the Company had recorded liabilities for interest and penalties related to uncertain tax positions in the amounts of $1,093 , $934 , and $816 net of any future tax benefit of such interest, respectively. Unrecognized tax positions totaled $4,960 , $4,563 and $3,694 as of March 31, 2019 , and 2018 , and 2017 , respectively. If the income tax impacts from these tax positions are ultimately realized, such realization would affect the income tax provision and effective tax rate. A reconciliation of the unrecognized tax position for the year ended March 31, 2019 , 2018 , and 2017 is as follows: March 31, 2019 March 31, 2018 March 31, 2017 Unrecognized tax position at the beginning of the year $ 4,563 $ 3,694 $ 1,024 Increases related to prior year tax positions 1,210 1,033 2,670 Decreases related to prior year tax positions (813 ) (164 ) — Unrecognized tax position at the end of the year $ 4,960 $ 4,563 $ 3,694 In the next 12 months, certain uncertain tax positions may reverse as the related statutes expire, but the Company does not anticipate a material change. Prior to the IPO, the Company filed as a member of the ORIX USA consolidated federal income tax group and did so through the date of the IPO for fiscal 2016. Following the IPO, the Company files a consolidated federal income tax return separate from ORIX USA, as well as consolidated and separate returns in state and local jurisdictions. As of March 31, 2019, all of the federal income tax returns filed since 2016 by ORIX USA that include the Company as a subsidiary or were filed by the Company are still subject to adjustment upon audit. The Company is currently under New York State audit for the years ended March 31, 2016 and March 31, 2017. The Company also files combined and separate income tax returns in many states, which are also open to adjustment. Additionally, ORIX USA is currently under California audit for the years ended March 31, 2012, March 31, 2013 and March 31, 2014, Illinois audit for the years ended March 31, 2013, March 31, 2014, and March 31, 2015, and Minnesota audit for the years ended March 31, 2013, March 31, 2014, March 31, 2015 and March 31, 2016. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS The calculations of basic and diluted net income per share attributable to holders of shares of common stock are presented below. Twelve Months Ended March 31, 2019 2018 2017 Numerator: Net income attributable to holders of shares of common stock—basic $ 159,106 $ 172,283 $ 108,343 Net income attributable to holders of shares of common stock—diluted $ 159,106 $ 172,283 $ 108,343 Denominator: Weighted average shares of common stock outstanding—basic 62,213,414 62,494,275 61,100,497 Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method 3,632,718 3,829,818 5,478,633 Weighted average shares of common stock outstanding—diluted 65,846,132 66,324,093 66,579,130 Net income per share attributable to holders of shares of common stock Basic $ 2.56 $ 2.76 $ 1.77 Diluted $ 2.42 $ 2.60 $ 1.63 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS (a) Defined Contribution Plans The Company sponsors a 401(k) defined contribution savings plan for its domestic employees and defined contribution retirement plans for its international employees. The Company contributed approximately $2,765 , $2,018 and $2,321 during the years ended March 31, 2019 , 2018 and 2017 , respectively, to these defined contribution plans. (b) Share-Based Incentive Plans During the period HL CA was a subsidiary of Fram, certain employees were granted restricted shares of Fram. Compensation expense related to these shares was recorded at the HL CA level as it was related to services provided by its employees. Under its 2006 incentive plan (the "2006 Incentive Plan"), Fram granted restricted share awards to employees of the Company as a component of annual incentive pay and occasionally in conjunction with new hire employment agreements. Under the 2006 Incentive Plan, awards typically vested after three years of service from the date of grant. Forfeitures of unvested share awards are recognized as they occur. Prior to the IPO, the grant-date fair value of each award was determined by Fram's board of directors as discussed further below. In addition, the stock grants to employees of the Company in connection with the IPO were made under the 2006 Incentive Plan. Following the IPO, additional awards of restricted shares have been and will be made under the Amended and Restated Houlihan Lokey, Inc. 2016 Incentive Award Plan (the "2016 Incentive Plan"), which became effective in August 2015 and was amended in October 2017. Under the 2016 Incentive Plan, it is anticipated that the Company will continue to grant cash and equity-based incentive awards to eligible service providers in order to attract, motivate, and retain the talent necessary to operate the Company's business. Equity-based incentive awards issued under the 2016 Incentive Plan generally vest over a four -year period. An aggregate of 30,820 restricted shares of Class A common stock were granted under the 2016 Incentive Plan to (i) two independent directors in August 2015 at $21.00 per share, (ii) two independent directors in the first quarter of fiscal 2017 at $25.21 per share, (iii) one independent director in the first quarter of fiscal 2017 at $23.93 per share, (iv) three independent directors in the first quarters of fiscal 2018 and 2019 at $33.54 and $44.50 per share, respectively, and (v) one independent director in the third quarter of fiscal 2019 at $42.41 per share. In March 2016, the FASB issued ASU No. 2016-09 which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification in the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of fiscal 2018. The changes that impacted the Company included a requirement that excess tax benefits and deficiencies be recognized as a component of provision for income taxes on the consolidated statements of comprehensive income rather than additional paid-in capital on the consolidated statements of changes in stockholders' equity as required in the previous guidance. Under the transition provisions, we have applied this new guidance prospectively with respect to excess tax benefits arising from vesting of share awards and such awards are no longer presented within financing activities in the consolidated statements of cash flows and are included the change in income taxes payable as an operating activity in the consolidated statements of cash flows for the year ended March 31, 2018. During the year ended March 31, 2019 excess tax benefits of $8 were recorded as a component of the provision for income taxes and an operating activity on the Consolidated Statements of Cash Flows. The adoption of ASU 2016-09 resulted in a decrease to the provision for income taxes due to the vesting of share awards that were accelerated on February 14, 2017. The decrease to the provision occurred in the first quarter of fiscal 2018 because the Company’s tax deduction is delayed to its tax year that corresponds to the tax year that the employees report the taxable income. In addition, there was an additional decrease to the provision due to the vesting of share awards that were accelerated on October 21, 2017. As required under the transition provisions, we reclassified, on a retrospective basis, a cash outflow of $22,756 related to the settlement of share-based awards in satisfaction of withholding tax requirements from operating activities to financing activities for the year ended March 31, 2017. The share awards are classified as equity awards at the time of grant unless the number of shares granted is unknown. Awards that are settleable in shares based upon a future determinable stock price are classified as a liability until the price is established and the resulting number of shares is known, at which time they are re-classified from liabilities to equity awards. Activity in equity classified share awards which relate to the 2006 Incentive Plan and the 2016 Incentive Plan during the years ended March 31, 2019 and 2018 is as follows: Nonvested share awards Shares Weighted average grant date fair value Balance at April 1, 2017 3,626,270 $ 22.35 Granted 1,235,779 34.86 Vested (1,023,078 ) 24.03 Forfeited (984,078 ) 24.60 Balance at March 31, 2018 2,854,893 $ 26.39 Granted 1,069,436 49.32 Vested (76,702 ) 48.78 Shares repurchased/forfeited (83,643 ) 33.91 Balance at March 31, 2019 3,763,984 $ 32.29 Activity in liability classified share awards during the years ended March 31, 2019 and 2018 is as follows: Awards settleable in shares Fair value Balance at April 1, 2017 $ 12,743 Offer to grant 9,637 Share price determined-converted to cash payments (6,040 ) Share price determined-transferred to equity grants (1) — Forfeited (847 ) Balance at March 31, 2018 $ 15,493 Offer to grant 12,432 Share price determined-converted to cash payments (300 ) Share price determined-transferred to equity grants (1) (4,705 ) Forfeited (1,244 ) Balance at March 31, 2019 $ 21,676 _______________________ (1) 96,778 and 0 shares for the years ended March 31, 2019 and 2018 , respectively. Compensation expenses for the Company associated with both equity and liability classified awards totaled $56,562 , $47,111 , and $45,059 for the years ended March 31, 2019 , 2018 , and 2017 , respectively. At March 31, 2019 , there was $77,348 of total unrecognized compensation cost related to unvested share awards granted under both the 2006 Incentive Plan and 2016 Incentive Plan. That cost is expected to be recognized over a weighted average period of 1.4 years . On February 14, 2017, in connection with the February 2017 Follow-on Offering discussed in notes 1 and 4, the Company accelerated the vesting of certain awards that were due to vest in April and May 2017. On October 30, 2017, in connection with the October 2017 Follow-on Offering discussed in notes 1 and 4, the Company accelerated the vesting of certain awards that were due to vest in April and May 2018. Under the terms of both the 2006 Incentive Plan and 2016 Incentive Plan, upon the vesting of awards, shares may be withheld to meet the minimum statutory tax withholding requirements. The Company satisfied such obligations upon vesting by retiring 704,528 shares upon the accelerated vesting of 1,907,890 shares and 806,248 shares upon the accelerated vesting of 1,737,461 shares in February 2017 and October 2017, respectively. On October 19, 2017, our board of directors approved an amendment (the “Amendment”) to the 2016 Incentive Plan reducing the number of shares of common stock available for issuance under the 2016 Incentive Plan by approximately 12.2 million shares. Under the Amendment, the aggregate number of shares of common stock that are available for issuance under awards granted pursuant to the 2016 Incentive Plan is equal to the sum of (i) 8.0 million and (ii) any shares of our Class B common stock that are subject to awards under our 2006 Incentive Plan that terminate, expire or lapse for any reason after October 19, 2017. The number of shares available for issuance will be increased annually beginning on April 1, 2018 and ending on April 1, 2025, by an amount equal to the lowest of: • 6,540,659 shares of our Class A common stock and Class B common stock; • Six percent of the shares of Class A common stock and Class B common stock outstanding on the final day of the immediately preceding fiscal year; and • such smaller number of shares as determined by our board of directors. Prior to the IPO, the Fram board of directors determined the fair value of the shares using input from a third party, which used a combination of historical and forecasted results and market data. The methods used to estimate the fair value of Fram shares included the market approach and the income approach. Under the market approach, fair value was determined by multiplying revenues of comparable public companies by the relevant valuation multiple, adjusted for any differences with the referenced comparable. Under the income approach, fair value was determined by converting future cash flows to a single present amount (discounted) using current expectations about those future amounts. The significant assumptions used to develop the fair value estimates included the discount rate ( 11.5% for 2015) used under the income approach and revenue multiples ( 0.9 x - 4.4 x for 2015) used under the market approach. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY (a) Class A Common Stock In conjunction with the Company's IPO, 12,075,000 Class A shares were sold to the public by existing shareholders and 9,524 Class A shares were issued to non-employee directors. During the year ended March 31, 2017, an additional 9,200,000 Class A shares were sold to the public in the February 2017 Follow-on Offering as discussed in note 1, 9,137 shares were issued to non-employee directors, and 733,150 shares were converted from Class B to Class A. Each share of Class A common stock is entitled to one vote per share. During the year ended March 31, 2018, 5,589 shares were issued to non-employee directors, and 1,252,242 shares were converted from Class B to Class A, in October and November 2017 an additional 3,750,000 Class A shares, and in March 2018 an additional 4,000,000 shares were sold to the public in the October 2017 and March 2018 Follow-on Offerings as discussed in note 1. As of March 31, 2019 , there were 4,109,720 shares of Class A common stock held by ORIX USA. Each share of Class A common stock is entitled to one vote per share. (b) Class B Common Stock Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted into one share of Class A common stock upon transfer thereof, subject to certain exceptions. In April 2017, the Company settled its $192,372 forward purchase obligation with a related party and the funds held in escrow were released and the related 6,900,000 Class B shares were retired. In March 2018 and April 2017, the Company repurchased from employees 68,504 and 71,913 shares, respectively of Class B common stock received pursuant to contractual arrangements entered into in connection with a prior acquisition. In April 2018, the Company settled its $93,500 forward purchase obligation with a related party and the funds held in escrow were released and the related 2,000,000 Class B shares were retired. As of March 31, 2019 there were 24,929,520 Class B shares held by the HL Voting Trust and 2,268,214 Class B shares held by ORIX USA. Each share of Class B common stock is entitled to ten votes per share. (c) Dividends Previously declared dividends related to unvested shares of $8,006 and $3,983 were unpaid as of March 31, 2019 and 2018 , respectively. (d) Stock subscriptions receivable Employees of the Company periodically issued notes receivable to the Company documenting loans made by the Company to such employees for the purchase of restricted shares of the Company. (e) Share repurchase program In February 2017, the board of directors authorized the repurchase of up to $50.0 million of the Company's Class A common stock. In May 2017, the Company entered into a stock buyback program with a third-party financial institution to purchase shares of common stock. In July 2018, the board of directors authorized the repurchase of up to $100 million of the Company's common stock. During the twelve months ended March 31, 2019 and 2018, the Company repurchased and retired 1,481,114 and 430,237 shares of its outstanding common stock at a weighted average price of $46.97 and $35.17 per share, excluding commissions, for an aggregate purchase price of $69,563 and $15,131 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company has been named in various legal actions arising in the normal course of business. In the opinion of the Company, in consultation with legal counsel, the final resolutions of these matters are not expected to have a material adverse effect on the Company’s financial condition, operations and cash flows. Our obligation under the loan payable to affiliate is subordinated to our obligations under the revolving credit facility with Bank of America, N.A. The scheduled aggregate repayments of the loan payable to affiliate included in other liabilities in the accompanying consolidated balance sheets, the loans payable to former shareholders, and the loan payable to non-affiliates are as follows: Year Ended March 31, 2020 $ 3,169 2021 575 2022 280 2023 14,042 2024 31 2025 and thereafter 13,092 Total $ 31,189 The Company also provides routine indemnifications relating to certain real estate (office) lease agreements under which it may be required to indemnify property owners for claims and other liabilities arising from the Company’s use of the applicable premises. In addition, the Company guarantees the performance of its subsidiaries under certain office lease agreements. The terms of these obligations vary, and because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the maximum amount that it could be obligated to pay under such contracts. Based on historical experience and evaluation of specific indemnities, management believes that judgments, if any, against the Company related to such matters are not likely to have a material effect on the consolidated financial statements. Accordingly, the Company has not recorded any liability for these obligations as of March 31, 2019 or 2018 . An acquisition made in January 2017 included contingent consideration with a carrying value of $0 and $4,085 as of March 31, 2019 and 2018, respectively, which is included in other liabilities in the accompanying consolidated balance sheets. Straight-line rent expense under noncancelable operating lease arrangements and the related operating expenses were approximately $38,672 , $27,799 , and $26,205 for the years ended March 31, 2019 , 2018 , and 2017 , respectively. The approximate future minimum annual noncancelable rental commitments required under these agreements with initial terms in excess of one year are as follows: Year Ended March 31, 2020 $ 28,640 2021 26,703 2022 22,353 2023 18,339 2024 11,205 2025 and thereafter 41,028 Total $ 148,268 |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHICAL INFORMATION | SEGMENT AND GEOGRAPHICAL INFORMATION The Company’s reportable segments are described in note 1 and each are individually managed and provide separate services which require specialized expertise for the provision of those services. Revenues by segment represent fees earned on the various services offered within each segment. Segment profit represents each segment’s profit, which consists of segment revenues, less (1) direct expenses including compensation, employee recruitment, travel, meals and entertainment, professional fees, and bad debt and (2) expenses allocated by headcount such as communications, rent, depreciation and amortization, and office expense. The corporate expense category includes costs not allocated to individual segments, including charges related to incentive compensation and share-based payments to corporate employees, as well as expenses of senior management and corporate departmental functions managed on a worldwide basis, including Office of the Executives, accounting, human resources, human capital management, marketing, information technology, and compliance and legal. The following tables present information about revenues, profit and assets by segment and geography. Year ended March 31, 2019 2018 2017 Revenues by segment: Corporate Finance $ 607,333 $ 528,643 $ 434,558 Financial Restructuring 317,774 294,142 307,595 Financial Advisory Services 159,278 140,579 129,938 Revenues $ 1,084,385 $ 963,364 $ 872,091 Segment profit (1) Corporate Finance $ 193,603 $ 177,575 $ 119,739 Financial Restructuring 83,607 73,691 92,831 Financial Advisory Services 28,776 26,334 28,905 Total segment profit 305,986 277,600 241,475 Corporate expenses (2) 86,459 63,154 59,480 Other (income) expense, net (4,793 ) (3,390 ) 3,508 Income before provision for income taxes $ 224,320 $ 217,836 $ 178,487 _______________________ (1) We adjust the compensation expense for a business segment in situations where an employee residing in one business segment is performing work in another business segment where the revenues are accrued. Segment profit may vary significantly between periods depending on the levels of collaboration among the different segments. (2) Corporate expenses represent expenses that are not allocated to individual business segments such as Office of the Executives, accounting, information technology, compliance, legal, marketing, human capital management, and human resources. Assets by segment: March 31, 2019 2018 2017 Corporate Finance $ 397,069 $ 337,584 $ 316,561 Financial Restructuring 184,364 185,486 193,275 Financial Advisory Services 127,021 126,034 121,640 Total segment assets 708,454 649,104 631,476 Corporate assets 714,604 769,737 754,231 Total assets $ 1,423,058 $ 1,418,841 $ 1,385,707 Revenues by geography: March 31, 2019 2018 2017 United States $ 878,840 $ 830,079 $ 760,450 International 205,545 133,285 111,641 Total revenues $ 1,084,385 $ 963,364 $ 872,091 Income before provision for income taxes by geography: March 31, 2019 2018 2017 United States $ 176,850 $ 185,380 $ 154,268 International 47,470 32,456 24,219 Total income before provision for income taxes $ 224,320 $ 217,836 $ 178,487 Assets by geography March 31, 2019 2018 2017 United States $ 1,021,975 $ 957,897 $ 964,273 International 401,083 460,944 421,434 Total assets $ 1,423,058 $ 1,418,841 $ 1,385,707 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 30, 2019, the board of directors of the Company declared a regular quarterly cash dividend of $0.31 per share for holders of record as of June 3, 2019 and payable on June 14, 2019. |
Consolidated Quarterly Results
Consolidated Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Quarterly Results of Operations (Unaudited) | Consolidated Quarterly Results of Operations (Unaudited) ($ in thousands, except per share data) For the Three Months Ended June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Revenues $ 220,002 $ 274,992 $ 298,013 $ 291,378 Total operating expenses 179,874 218,817 235,754 230,413 Operating income 40,128 56,175 62,259 60,965 Net income attributable to Houlihan Lokey, Inc. $ 29,682 $ 40,119 $ 43,957 $ 45,348 Net income per share of common stock: Basic $ 0.47 $ 0.64 $ 0.71 $ 0.74 Diluted $ 0.45 $ 0.61 $ 0.67 $ 0.69 Dividends declared per share of common stock $ 0.27 $ 0.27 $ 0.27 $ 0.31 For the Three Months Ended June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Revenues $ 217,491 $ 242,183 $ 258,937 $ 244,753 Total operating expenses 170,618 188,857 204,452 184,991 Operating income 46,873 53,326 54,485 59,762 Net income attributable to Houlihan Lokey, Inc. $ 39,244 $ 33,357 $ 61,583 $ 38,099 Net income per share of common stock: Basic $ 0.63 $ 0.54 $ 0.98 $ 0.61 Diluted $ 0.59 $ 0.50 $ 0.93 $ 0.58 Dividends declared per share of common stock $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II—Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts March 31, 2018, 2017 and 2016 Allowance for Uncollectible Accounts ($ in thousands) Balance – April 1, 2016 $ 7,844 Provision for bad debts 4,008 Write-off of uncollectible accounts (653 ) Balance – March 31, 2017 $ 11,199 Provision for bad debts 1,983 Write-off of uncollectible accounts (1,791 ) Balance – March 31, 2018 $ 11,391 Provision for bad debts 1,707 Write-off of uncollectible accounts (7,502 ) Balance – March 31, 2019 $ 5,596 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC") and include all information and footnotes required for financial statement presentation, and include all disclosures required under GAAP for annual financial statements. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries where it has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. The Company carries its investments in unconsolidated entities over which it has significant influence but does not control using the equity method, and includes its ownership share of the income and losses in other (income) expense, net in the consolidated statements of comprehensive income. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements. Management estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period, and disclosure of contingent assets and liabilities at the reporting date. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Items subject to such estimates and assumptions include: the allowance for doubtful accounts; the valuation of deferred tax assets, goodwill, accrued expenses, and share based compensation; the allocation of goodwill and other assets across the reporting units (segments); and reserves for income tax uncertainties and other contingencies. |
Recognition of Revenue | Recognition of Revenue Revenues consist of fee revenues from advisory services and reimbursed costs incurred in fulfilling the contract. Revenues reflect revenues from our Corporate Finance (“CF”), Financial Restructuring (“FR”), and Financial Advisory Services (“FAS”) business segments. Revenues for all three business segments are recognized upon satisfaction of the performance obligation and may be satisfied over time or at a point in time. The amount and timing of the fees paid vary by the type of engagement. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the standard effective April 1, 2018 and under the new standard, we recognize revenue from contracts with customers upon satisfaction of our performance obligations by transferring the promised services to the customers. A service is transferred to a customer when the customer obtains control of and derives benefit from that service. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The substantial majority of the Company’s advisory fees (i.e., the success related Completion Fees) are considered variable and constrained as they are contingent upon a future event which includes factors outside of our control (e.g., completion of a transaction or third party emergence from bankruptcy or approval by the court). Revenues from Corporate Finance engagements primarily consist of fees generated in connection with advisory services related to mergers and acquisitions, capital markets, and other corporate finance transactions. Completion Fees from these engagements are recognized at a point in time when the related transaction has been effectively closed. At that time, the Company has transferred control of the promised service and the customer obtains control. Corporate Finance contracts generally contain a variety of promised services that may be capable of being distinct, but they are not distinct within the context of the contract as the various services are inputs to the combined output of successfully brokering a specific transaction. Effective April 1, 2018, fees received prior to the completion of the transaction, including Retainer Fees and Progress Fees, are deferred within deferred income in the consolidated balance sheets and not recognized until the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management’s judgment is required in determining when a transaction is considered to be terminated. Prior to April 1, 2018, these various fees were generally recognized on a monthly basis, except in situations where there was uncertainty as to the timing of collection of the amount due. Progress Fees were recognized based on management’s estimates of the relative proportion of services provided through the financial reporting date to the total services required to be performed. Revenues from Financial Restructuring engagements primarily consist of fees generated in connection with advisory services to debtors, creditors and other parties-in-interest involving recapitalization or deleveraging transactions implemented both through bankruptcy proceedings and through out-of-court exchanges, consent solicitations or other mechanisms, as well as in distressed mergers and acquisitions and capital markets activities. Retainer Fees and Progress Fees from restructuring engagements are recognized over time using a time elapsed measure of progress as our clients simultaneously receive and consume the benefits of those services as they are provided. Completion Fees from these engagements are recognized at a point in time when the related transaction has been effectively closed. At that time, the Company has transferred control of the promised service and the customer obtains control. Revenues from Financial Advisory Services engagements primarily consist of fees generated in connection with valuation services and rendering fairness, solvency and financial opinions. Revenues are recognized at a point in time as these engagements include a singular objective that does not transfer any notable value to the Company’s clients until the opinions have been rendered and delivered to the client. However, certain engagements consists of advisory services where fees are usually based on the hourly rates of our financial professionals. Such revenues are recognized over time as the benefits of these advisory services are transferred to the Company’s clients throughout the course of the engagement and as a practical expedient, the Company has elected to use the ‘as-invoiced’ approach to recognize revenue. Taxes, including value added taxes, collected from customers and remitted to governmental authorities are accounted for on a net basis, and therefore, are excluded from revenue in the consolidated statements of comprehensive income. |
Operating Expenses | Operating Expenses The majority of the Company’s operating expenses are related to compensation for employees, which includes the amortization of the relevant portion of the Company’s share-based incentive plans (note 14). Other examples of operating expenses include: travel, meals and entertainment; rent; depreciation and amortization; information technology and communication; professional fees and other operating expenses, which include such items as office expenses, business license and registration fees, non-income-related taxes, legal expenses, related-party support services, and charitable contributions. |
Translation of Foreign Currency Transactions | Translation of Foreign Currency Transactions The reporting currency for the consolidated financial statements of the Company is the U.S. dollar. The assets and liabilities of subsidiaries whose functional currency is other than the U.S. dollar are included in the consolidation by translating the assets and liabilities at the reporting period-end exchange rates; however, revenues and expenses are translated using the applicable exchange rates determined on a monthly basis throughout the year. Resulting translation adjustments are reported as a separate component of accumulated other comprehensive loss, net of applicable taxes. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Repair and maintenance charges are expensed as incurred and costs of renewals or improvements are capitalized at cost. Depreciation on furniture and office equipment is provided on a straight-line basis over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the lesser of the lease term or estimated useful life. |
Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held at banks and highly liquid investments with original maturities of three months or less. At March 31, 2019 and 2018 , the Company had cash balances with banks in excess of insured limits. The Company has not experienced any losses in its cash accounts and believes it is not exposed to any significant credit risk with respect to cash and cash equivalents. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The amendments in this ASU require restricted cash and restricted cash equivalents to be included with the cash and cash equivalents balances when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. ASU 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017 (fiscal year ending March 31, 2019 for the Company) with early adoption permitted. In April 2018, the Company adopted ASU No. 2016-18 and it did not have a material impact on the Company's operating results and financial position. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. March 31, 2019 March 31, 2018 Cash and cash equivalents $ 285,746 $ 206,723 Restricted cash 369 93,500 Total cash, cash equivalents, and restricted cash $ 286,115 $ 300,223 Restricted cash as of March 31, 2018 consisted of cash received from the issuance of shares in the March 2018 Follow-on Offering, which is required to be set aside pursuant to the January 2018 Forward Share Purchase Agreement (notes 1 and 3). The restriction lapsed when the related forward purchase liability was paid off. Restricted cash as of March 31, 2019 consisted of a letter of credit issued for our Frankfurt office. |
Investment Securities | Investment Securities Investment securities consist of corporate debt, U.S. Treasury, and certificates of deposit with original maturities over 90 days. As of December 31, 2018, the Company has reclassified its investment securities from held-to-maturity to trading as it may sell them with the intent to recognize short-term gains or losses and records them at fair market value. As of the date of transfer, the amortized cost of the investment securities was $40,944 and net unrealized gain of $16 was included in other operating expense, net in the accompanying consolidated statements of comprehensive income. |
Accounts Receivable | Accounts Receivable The allowance for doubtful accounts on receivables reflects management’s best estimate of probable inherent losses determined principally on the basis of historical experience and review of uncollected revenues and is recorded through provision for bad debts which is included in other operating expenses, net in the accompanying consolidated statements of comprehensive income. Amounts deemed to be uncollectible are written off against the allowance for doubtful accounts. |
Income Taxes | Income Taxes Prior to the IPO, ORIX USA and its subsidiaries, including the Company, filed consolidated federal income tax returns and separate returns in state and local jurisdictions and did so for fiscal year 2016 through the date of the IPO. The Company reported income tax expense as if it filed separate returns in all jurisdictions. Following the IPO, the Company files a consolidated federal income tax return separate from ORIX USA, as well as consolidated and separate returns in state and local jurisdictions, and the Company reports income tax expense on this basis. We account for income taxes in accordance with ASC Topic 740, Income Taxes, which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The measurement of the deferred items is based on enacted tax laws and applicable tax rates. A valuation allowance related to a deferred tax asset is recorded if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company utilized a comprehensive model to recognize, measure, present, and disclose in its financial statements any uncertain tax positions that have been taken or are expected to be taken on a tax return. The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority must be recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained. Interest expense and penalties related to income taxes are included in the provision for income taxes in the accompanying consolidated statements of comprehensive income. Recently enacted U.S. tax legislation, the Tax Cuts and Jobs Act, was signed into law on December 22, 2017 (the "Tax Act"). On the same day, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In accordance with SAB 118, the Company made estimates and recorded provisional amounts for the Tax Act during the year ended March 31, 2018, including re-measurement of deferred tax assets and liabilities as well as the one-time deemed repatriation transition tax (the “Toll Charge”) on certain un-repatriated earnings of non-U.S. subsidiaries. As of the quarter ended December 31, 2018, the Company finalized the provisional estimates made under SAB 118. In particular, we revised the provisional estimate made for the Toll Charge obligation and recognized additional tax expense of $1,313 resulting in an insignificant impact to the effective tax rate. The Company included these adjustments within income tax expense from continuing operations. No material adjustments were made in the quarter ended March 31, 2019. The Global Intangible Low-Taxed Income tax (“GILTI inclusion”) can be recognized in the financial statements through an accounting policy election by either recording a period cost (permanent item) or providing deferred income taxes stemming from certain basis differences that are expected to result in GILTI inclusion. The Company has elected to account for the tax impacts of the GILTI inclusion as a period cost. The Company’s estimated tax impact as a result of the Tax Act was based upon the information and guidance available as of March 31, 2019. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents an acquired company’s acquisition cost over the fair value of acquired net tangible and intangible assets. Goodwill is the net asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets identified and accounted for include tradenames and marks, backlog, developed technologies, and customer relationships. Those intangible assets with finite lives, including backlog and customer relationships, are amortized over their estimated useful lives. When HL CA was acquired by Fram in January 2006, approximately $392,600 of goodwill and $192,210 of indefinite-lived intangible assets were generated and recognized. In accordance with ASC Topic 805, Business Combinations, since HL CA was wholly owned by Fram, this goodwill and all other purchase accounting-related adjustments were pushed down to the Company’s reporting level. Through both foreign and domestic acquisitions made directly by HL CA and the Company since 2006, additional goodwill of approximately $202,212 , inclusive of foreign currency translations has been recognized. Goodwill is reviewed annually for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with ASU No. 2011-08, Testing Goodwill for Impairment, and amended by ASU 2017-04, Simplifying the Test for Goodwill Impairment which permits management to make a qualitative assessment as to whether one of its reporting unit’s fair value is less than its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. Impairment testing of goodwill requires a significant amount of judgment in assessing qualitative factors and estimating the fair value of the reporting unit, if necessary. The fair value is determined using an estimated market value approach, which considers estimates of future after tax cash flows, including a terminal value based on market earnings multiples, discounted at an appropriate market rate. As of March 31, 2019 , 2018 , and 2017 , management concluded that it was not more likely than not that the Company’s reporting units’ fair value was less than their carrying amount and no further impairment testing had been considered necessary. Indefinite-lived intangible assets are reviewed annually for impairment in accordance with ASU 2012-02, Testing Indefinite-lived Intangible Assets for Impairment, which provides management the option to perform a qualitative assessment. If it is more likely than not that the asset is impaired, the amount that the carrying value exceeds the fair value is recorded as an impairment expense. As of March 31, 2019 , 2018 , and 2017 , management concluded that it was not more likely than not that the fair values were less than the carrying values. Intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group (inclusive of other long-lived assets) be tested for possible impairment, management first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As of March 31, 2019 , 2018 , and 2017 , no events or changes in circumstances were identified that indicated that the carrying amount of the finite-lived intangible assets were not recoverable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of Effective Date which deferred the effective date of the new standard to annual and interim periods within that reporting period beginning after December 15, 2017 (fiscal year ending March 31, 2019 for the Company). The Company adopted the standard effective April 1, 2018 using the modified retrospective method which requires the recognition of a cumulative-effect adjustment as of that date. Results for periods beginning after March 31, 2018 are presented under the new revenue and cost recognition guidance, while prior period amounts were not restated and continue to be reported in accordance with the Company's previous revenue and cost recognition policies. The Company applied the new standard to contracts that have not yet been completed as of the adoption date. The Company’s adoption efforts included the identification of revenue within the scope of the standard and the evaluation of revenue contracts. Upon adoption, the Company recorded a cumulative effect adjustment that resulted in a reduction in retained earnings of $19.3 million , a reduction in deferred tax liabilities of $6.9 million and an increase to deferred income of $26.2 million . This cumulative adjustment was related to certain engagements for which revenue was being recognized over time prior to adoption which are now recognized point-in-time under the new standard. See notes 2(d) and 3 for further information. In February 2016, the FASB issued ASU No. 2016-02, Leases. The amendments in this ASU requires lessees to recognize right-of-use assets and lease liabilities in the consolidated balance sheets for all leases with terms longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right-of-use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option, or not exercise an option to terminate the lease. In addition, this ASU requires expanded disclosures about the nature and terms of lease agreements. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 (year ending March 31, 2020 for the Company). The Company adopted this ASU in April 2019 under a modified retrospective approach. The impact of adopting this ASU is expected to result in right of use asset and lease liability of approximately $150 million on the Company's consolidated statements of financial condition as of April 1, 2019. See note 16 for a summary of our undiscounted minimum rental commitments under operating leases as of March 31, 2019 . In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address the classification of certain cash receipts and cash payments in the statement of cash flows as well as the presentation and disclosure of restricted cash. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017 (fiscal year ending March 31, 2019 for the Company). The Company adopted guidance effective April 1, 2018 and its application did not result in changes to any classification in the consolidated statements of cash flows, and did not have a material impact on our consolidated financial position or results of operations. In November 2016, the FASB issued ASU No. 2016-18, Restricted cash. The amendments in this ASU address the classification and presentation of changes in restricted cash and restricted cash equivalents in the statement of cash flows. Under the new guidance, an entity should include the amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of period total amounts shows on the statement of cash flows. The Company adopted guidance effective April 1, 2018 and its application did not result in changes to the classification and presentation of changes in restricted cash and restricted cash equivalents in the consolidated statements of cash flows, and did not have a material impact on our consolidated financial position or results of operations. In January 2017, the FASB issued ASU No. 2017-04, Intangible - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The amendments in this ASU do not change the guidance on Step 1 of the goodwill impairment test but eliminates the requirement to calculate an implied goodwill value using Step 2. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but should not exceed the total amount of goodwill allocated to that reporting unit. Also, an entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019 (fiscal year ending March 31, 2021 for the Company) with early adoption permitted. The Company adopted guidance effective April 1, 2018 and its application did not have a material impact on the consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The clarified guidance provides a more defined framework to use in determining when a set of assets and activities constitute a business. The clarified definition was effective for the Company on April 1, 2018 and was applied on a prospective basis. Application of this guidance did not have an effect on the consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting. The amended guidance states an entity should account for the effects of a modification unless certain criteria are met which include that the modified award has the same fair value, vesting conditions and classification as the original award. The guidance is first effective for our fiscal year beginning April 1, 2019 on a prospective basis; however, early adoption is permitted. Given that this guidance applies to specific transactions and would only become relevant in certain circumstances, we are unable to estimate the impact, if any, this new guidance may have on our financial position. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes the effects of adopting the new revenue recognition standard on the Company’s consolidated statements of comprehensive income for the years ended March 31, 2019 . As reported Excluding adoption of ASC 606 Adjustments Revenues $ 1,084,385 $ 1,050,405 $ 33,980 Operating expenses: Employee compensation and benefits 692,073 692,024 49 Travel, meals, and entertainment 42,862 28,865 13,997 Rent 38,672 38,672 — Depreciation and amortization 14,475 14,475 — Information technology and communications 21,512 20,555 957 Professional fees 23,035 19,038 3,997 Other operating expenses 32,229 17,391 14,838 Total operating expenses 864,858 831,020 33,838 Income before provision for income taxes 224,320 224,178 142 Provision for income taxes 65,214 65,173 41 Net income $ 159,106 $ 159,005 $ 101 |
Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: Balance as of (4) (Decrease)/Increase Balance as of Receivables (1) $ 77,259 $ (12,462 ) $ 64,797 Unbilled work in process (2) $ 45,862 $ 26,029 $ 71,891 Contract Assets (1) $ 4,675 $ 1,358 $ 6,033 Contract Liabilities (3) $ 30,872 $ (3,060 ) $ 27,812 _______________________ (1) Included in accounts receivable in the March 31, 2019 consolidated balance sheet (2) Included in unbilled work in process in the March 31, 2019 consolidated balance sheet (3) Deferred income in the March 31, 2019 consolidated balance sheet (4) See note 2 (m) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. March 31, 2019 March 31, 2018 Cash and cash equivalents $ 285,746 $ 206,723 Restricted cash 369 93,500 Total cash, cash equivalents, and restricted cash $ 286,115 $ 300,223 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents information about the Company's financial assets, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values: March 31, 2019 Level I Level II Level III Total Corporate debt securities $ — $ 116,577 $ — $ 116,577 U.S. Treasury securities — 8,681 — 8,681 Total asset measured at fair value $ — $ 125,258 $ — $ 125,258 March 31, 2018 Level I Level II Level III Total Certificates of deposit $ — $ 10,106 $ — $ 10,106 Corporate debt securities — 183,578 — 183,578 U.S. Treasury securities — 15,582 — 15,582 Total asset measured at fair value $ — $ 209,266 $ — $ 209,266 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Held-to-maturity | The amortized cost, gross unrealized gains (losses), and fair value of securities were as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 116,220 $ 372 $ (15 ) $ 116,577 U.S. Treasury Securities 8,608 73 — 8,681 Total securities with unrealized gains $ 124,828 $ 445 $ (15 ) $ 125,258 March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 183,632 $ 13 $ (67 ) $ 183,578 Certificate of deposit 10,106 — — 10,106 U.S. Treasury Securities 15,581 11 (10 ) 15,582 Total securities with unrealized gains $ 209,319 $ 24 $ (77 ) $ 209,266 |
Investments Classified by Contractual Maturity Date | Scheduled maturities of the Company's debt securities within the investment securities portfolio were as follows: March 31, 2019 March 31, 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 96,109 $ 96,175 $ 209,319 $ 209,266 Due within years two through five 28,719 29,083 — — Total debt within the investment securities portfolio $ 124,828 $ 125,258 $ 209,319 $ 209,266 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Uncollectible Accounts Receivable | Year Ended March 31, 2019 2018 Balance-beginning $ 11,391 $ 11,199 Provision for bad debt 1,707 1,983 Write-off of uncollectible accounts (7,502 ) (1,791 ) Balance-ending $ 5,596 $ 11,391 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net of accumulated depreciation consist of the following: Useful Lives March 31, 2019 March 31, 2018 Equipment 5 Years $ 7,916 $ 6,653 Furniture and fixtures 5 Years 19,445 19,189 Leasehold improvements 10 Years 34,370 31,916 Computers and software 3 Years 11,499 10,346 Other N/A 1,117 1,120 Total cost 74,347 69,224 Less: accumulated depreciation (43,313 ) (37,078 ) Total net book value $ 31,034 $ 32,146 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and other intangibles consist of the following. Useful Lives March 31, 2019 March 31, 2018 Goodwill Indefinite $ 594,812 $ 528,889 Tradename-Houlihan Lokey Indefinite 192,210 192,210 Other intangible assets Varies 18,614 15,464 Total cost 805,636 736,563 Less: accumulated amortization (11,032 ) (13,253 ) Total net book value (before taxes) 794,604 723,310 Deferred tax liability (51,676 ) (50,541 ) Total net book value $ 742,928 $ 672,769 |
Schedule of Goodwill by Business Segment | Goodwill attributable to the Company’s business segments is as follows: Business Segments April 1, 2018 Changes (1) March 31, 2019 Corporate Finance $ 273,812 $ 66,470 $ 340,282 Financial Restructuring 163,362 (547 ) 162,815 Financial Advisory Services 91,715 — 91,715 Total $ 528,889 $ 65,923 $ 594,812 _______________________ (1) Changes were related to the acquisitions discussed in note 1 and foreign currency translation adjustments. |
Finite-lived Intangible Assets Amortization Expense | The estimated future amortization for finite-lived intangible assets for each of the next five years are as follows: Year Ended March 31, 2020 $ 6,294 2021 711 2022 157 2023 7 2024 7 |
OTHER COMPREHENSIVE INCOME AN_2
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss at March 31, 2019 , 2018 , and 2017 was comprised of the following: Balance, April 1, 2016 $ (14,613 ) Foreign currency translation adjustments (7,304 ) Balance, March 31, 2017 $ (21,917 ) Foreign currency translation adjustments 7,961 Balance, March 31, 2018 $ (13,956 ) Foreign currency translation adjustments (16,338 ) Balance, March 31, 2019 $ (30,294 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes on Operations | The provision (benefit) for income taxes on operations for the years ended March 31, 2019 , 2018 , and 2017 is comprised of the following approximate values: March 31, 2019 March 31, 2018 March 31, 2017 Current: Federal $ 47,101 $ 34,638 $ 60,024 State and local 22,094 9,768 12,686 Foreign 6,706 7,716 3,527 Subtotal 75,901 52,122 76,237 Deferred: Federal (10,665 ) (2,398 ) (7,262 ) State and local (1,997 ) (646 ) (962 ) Foreign 1,975 (3,525 ) 2,131 Subtotal (10,687 ) (6,569 ) (6,093 ) Total $ 65,214 $ 45,553 $ 70,144 |
Effective Income Tax Rate Reconciliation | The provision for income taxes on operations for the years ended March 31, 2019 , 2018 , and 2017 is reconciled to the income taxes computed at the statutory federal income tax rate (computed by applying the federal corporate rate of 21.0% for 2019, 31.5% for 2018 and 35% for 2017 to consolidated operating income before provision for income taxes) as follows: March 31, 2019 March 31, 2018 March 31, 2017 Federal income tax provision computed at statutory rate $ 47,107 21.0 % $ 68,618 31.5 % $ 62,470 35.0 % State and local taxes, net of federal tax effect 12,944 5.8 % 7,600 3.5 % 8,139 4.6 % Tax impact from foreign operations (2,098 ) (0.9 )% (3,972 ) (1.8 )% (1,741 ) (1.0 )% Nondeductible expenses 3,797 1.7 % 1,414 0.6 % 1,422 0.8 % Nondeductible public offering-related expenses — — % — — % 562 0.3 % Stock compensation (8 ) — % (16,173 ) (7.4 )% — — % Uncertain tax positions, true-up items, and other 2,159 0.9 % (1,203 ) (0.6 )% (708 ) (0.4 )% Enactment of the Tax Act 1,313 0.6 % (10,731 ) (4.9 )% — — % Total $ 65,214 29.1 % $ 45,553 20.9 % $ 70,144 39.3 % |
Schedule of Deferred Tax Assets and Liabilities | The deferred income taxes on the accompanying consolidated balance sheets at March 31, 2019 , 2018 , and 2017 comprise the following: March 31, 2019 March 31, 2018 March 31, 2017 Deferred tax assets: Deferred compensation expense/accrued bonus $ 48,501 $ 32,358 $ 57,379 Allowance for doubtful accounts 675 2,347 4,920 US foreign tax credits 2,523 3,865 — Other, net 7,789 11,271 11,235 Total deferred tax assets 59,488 49,841 73,534 Deferred tax asset valuation allowance (11,369 ) (13,334 ) (10,984 ) Total deferred tax assets 48,119 36,507 62,550 Deferred tax liabilities: Intangibles (51,676 ) (50,541 ) (77,184 ) Accounts receivable and work in process (1,647 ) (8,146 ) (16,562 ) Total deferred tax liabilities (53,323 ) (58,687 ) (93,746 ) Net deferred tax liabilities $ (5,204 ) $ (22,180 ) $ (31,196 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the unrecognized tax position for the year ended March 31, 2019 , 2018 , and 2017 is as follows: March 31, 2019 March 31, 2018 March 31, 2017 Unrecognized tax position at the beginning of the year $ 4,563 $ 3,694 $ 1,024 Increases related to prior year tax positions 1,210 1,033 2,670 Decreases related to prior year tax positions (813 ) (164 ) — Unrecognized tax position at the end of the year $ 4,960 $ 4,563 $ 3,694 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculations of basic and diluted net income per share attributable to holders of shares of common stock are presented below. Twelve Months Ended March 31, 2019 2018 2017 Numerator: Net income attributable to holders of shares of common stock—basic $ 159,106 $ 172,283 $ 108,343 Net income attributable to holders of shares of common stock—diluted $ 159,106 $ 172,283 $ 108,343 Denominator: Weighted average shares of common stock outstanding—basic 62,213,414 62,494,275 61,100,497 Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method 3,632,718 3,829,818 5,478,633 Weighted average shares of common stock outstanding—diluted 65,846,132 66,324,093 66,579,130 Net income per share attributable to holders of shares of common stock Basic $ 2.56 $ 2.76 $ 1.77 Diluted $ 2.42 $ 2.60 $ 1.63 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Activity in Equity Classified Share Awards | Activity in equity classified share awards which relate to the 2006 Incentive Plan and the 2016 Incentive Plan during the years ended March 31, 2019 and 2018 is as follows: Nonvested share awards Shares Weighted average grant date fair value Balance at April 1, 2017 3,626,270 $ 22.35 Granted 1,235,779 34.86 Vested (1,023,078 ) 24.03 Forfeited (984,078 ) 24.60 Balance at March 31, 2018 2,854,893 $ 26.39 Granted 1,069,436 49.32 Vested (76,702 ) 48.78 Shares repurchased/forfeited (83,643 ) 33.91 Balance at March 31, 2019 3,763,984 $ 32.29 |
Activity in Liability Classified Share Awards | Activity in liability classified share awards during the years ended March 31, 2019 and 2018 is as follows: Awards settleable in shares Fair value Balance at April 1, 2017 $ 12,743 Offer to grant 9,637 Share price determined-converted to cash payments (6,040 ) Share price determined-transferred to equity grants (1) — Forfeited (847 ) Balance at March 31, 2018 $ 15,493 Offer to grant 12,432 Share price determined-converted to cash payments (300 ) Share price determined-transferred to equity grants (1) (4,705 ) Forfeited (1,244 ) Balance at March 31, 2019 $ 21,676 _______________________ (1) 96,778 and 0 shares for the years ended March 31, 2019 and 2018 , respectively. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Scheduled Repayments of Loan | The scheduled aggregate repayments of the loan payable to affiliate included in other liabilities in the accompanying consolidated balance sheets, the loans payable to former shareholders, and the loan payable to non-affiliates are as follows: Year Ended March 31, 2020 $ 3,169 2021 575 2022 280 2023 14,042 2024 31 2025 and thereafter 13,092 Total $ 31,189 |
Schedule of Future Minimum Annual Noncancelable Rental Commitments | The approximate future minimum annual noncancelable rental commitments required under these agreements with initial terms in excess of one year are as follows: Year Ended March 31, 2020 $ 28,640 2021 26,703 2022 22,353 2023 18,339 2024 11,205 2025 and thereafter 41,028 Total $ 148,268 |
SEGMENT AND GEOGRAPHICAL INFO_2
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue, Profit and Assets by Segment | The following tables present information about revenues, profit and assets by segment and geography. Year ended March 31, 2019 2018 2017 Revenues by segment: Corporate Finance $ 607,333 $ 528,643 $ 434,558 Financial Restructuring 317,774 294,142 307,595 Financial Advisory Services 159,278 140,579 129,938 Revenues $ 1,084,385 $ 963,364 $ 872,091 Segment profit (1) Corporate Finance $ 193,603 $ 177,575 $ 119,739 Financial Restructuring 83,607 73,691 92,831 Financial Advisory Services 28,776 26,334 28,905 Total segment profit 305,986 277,600 241,475 Corporate expenses (2) 86,459 63,154 59,480 Other (income) expense, net (4,793 ) (3,390 ) 3,508 Income before provision for income taxes $ 224,320 $ 217,836 $ 178,487 _______________________ (1) We adjust the compensation expense for a business segment in situations where an employee residing in one business segment is performing work in another business segment where the revenues are accrued. Segment profit may vary significantly between periods depending on the levels of collaboration among the different segments. (2) Corporate expenses represent expenses that are not allocated to individual business segments such as Office of the Executives, accounting, information technology, compliance, legal, marketing, human capital management, and human resources. Assets by segment: March 31, 2019 2018 2017 Corporate Finance $ 397,069 $ 337,584 $ 316,561 Financial Restructuring 184,364 185,486 193,275 Financial Advisory Services 127,021 126,034 121,640 Total segment assets 708,454 649,104 631,476 Corporate assets 714,604 769,737 754,231 Total assets $ 1,423,058 $ 1,418,841 $ 1,385,707 |
Revenue and Income Before Provision for Income Taxes by Geographic Areas | Revenues by geography: March 31, 2019 2018 2017 United States $ 878,840 $ 830,079 $ 760,450 International 205,545 133,285 111,641 Total revenues $ 1,084,385 $ 963,364 $ 872,091 Income before provision for income taxes by geography: March 31, 2019 2018 2017 United States $ 176,850 $ 185,380 $ 154,268 International 47,470 32,456 24,219 Total income before provision for income taxes $ 224,320 $ 217,836 $ 178,487 |
Assets by Geographic Areas | Assets by geography March 31, 2019 2018 2017 United States $ 1,021,975 $ 957,897 $ 964,273 International 401,083 460,944 421,434 Total assets $ 1,423,058 $ 1,418,841 $ 1,385,707 |
BACKGROUND (Details)
BACKGROUND (Details) | Jun. 04, 2018$ / sharesshares | Apr. 05, 2018shares | Mar. 12, 2018$ / sharesshares | Nov. 03, 2017shares | Oct. 25, 2017$ / sharesshares | Apr. 05, 2017shares | Mar. 15, 2017shares | Feb. 14, 2017$ / sharesshares | Aug. 19, 2015class_of_stock | Aug. 17, 2015USD ($)business | Mar. 31, 2018shares | Apr. 30, 2017shares | Mar. 31, 2019USD ($)segment$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017USD ($)shares | Dec. 31, 2018vote | Mar. 31, 2016shares | Aug. 18, 2015vote | Jun. 30, 2015USD ($) | |
Class of Stock [Line Items] | ||||||||||||||||||||
Number of classes of common stock | class_of_stock | 2 | |||||||||||||||||||
Conversion ratio of common stock | 1 | |||||||||||||||||||
Professional fees | $ | [1] | $ 23,035,000 | $ 17,117,000 | $ 13,073,000 | ||||||||||||||||
Number of business segments | segment | 3 | |||||||||||||||||||
IPO | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Compensation expense associated with the accrual of certain deferred cash payments granted in connection with the IPO | $ | $ 10,273,000 | 10,764,000 | 11,873,000 | |||||||||||||||||
IPO | Restricted Stock | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Compensation expense associated with the amortization of restricted stock granted in connection with the IPO | $ | $ 14,045,000 | 14,153,000 | $ 14,330,000 | |||||||||||||||||
Vesting period, restricted stock | 4 years 6 months | |||||||||||||||||||
Follow-on Offering And Forward Share Purchase Agreement | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Professional fees | $ | $ 2,084,000 | $ 1,633,000 | ||||||||||||||||||
Class A | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Common stock voting rights, number of votes per share | vote | 1 | |||||||||||||||||||
Number of common shares outstanding (in shares) | 30,604,405 | 38,200,802 | 30,604,405 | |||||||||||||||||
Stock repurchased and retired during period (in shares) | 1,481,114 | 430,237 | ||||||||||||||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 49.11 | $ 46.97 | $ 35.17 | |||||||||||||||||
Class A | Follow-on Offering | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 2,000,000 | |||||||||||||||||||
Selling price per share (in dollars per share) | $ / shares | $ 49.15 | $ 47.25 | $ 42 | $ 29.25 | ||||||||||||||||
Class B | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Common stock voting rights, number of votes per share | vote | 10 | 10 | ||||||||||||||||||
Number of common shares outstanding (in shares) | 37,187,932 | 27,197,734 | 37,187,932 | |||||||||||||||||
Stock repurchased during period (in shares) | 68,504 | 71,913 | ||||||||||||||||||
Common Stock | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of new HLI shares issued for every Fram shares held | 10.425 | |||||||||||||||||||
Common Stock | Class A | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of common shares outstanding (in shares) | 30,604,405 | 38,200,802 | 30,604,405 | 22,026,811 | 12,084,524 | |||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 6,570 | 5,589 | 9,137 | |||||||||||||||||
Common Stock | Class B | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of common shares outstanding (in shares) | 37,187,932 | 27,197,734 | 37,187,932 | 50,883,299 | 53,219,303 | |||||||||||||||
Stock repurchased and retired during period (in shares) | 2,000,000 | 6,900,000 | ||||||||||||||||||
ORIX USA Corporation | Class A | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of common shares outstanding (in shares) | 4,109,721 | |||||||||||||||||||
Stock repurchased during period (in shares) | 697,000 | |||||||||||||||||||
ORIX USA Corporation | Class A | Follow-on Offering | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 1,985,983 | 125,000 | 1,750,000 | |||||||||||||||||
ORIX USA Corporation | Class B | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of common shares outstanding (in shares) | 2,268,214 | |||||||||||||||||||
Stock repurchased and retired during period (in shares) | 2,000,000 | 6,900,000 | ||||||||||||||||||
Stock repurchased during period (in shares) | 6,900,000 | |||||||||||||||||||
HL Holders | Class B | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of common shares outstanding (in shares) | 24,929,520 | |||||||||||||||||||
Investor | Class A | The Follow-on Offering | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of common shares outstanding (in shares) | 34,036,141 | |||||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 4,000,000 | 9,200,000 | ||||||||||||||||||
Director | Class A | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Number of common shares outstanding (in shares) | 54,940 | |||||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 5,589,000 | 9,137,000 | ||||||||||||||||||
Dividend Paid | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Pre-IPO aggregate dividend distribution to existing owners | $ | $ 270,000,000 | |||||||||||||||||||
Cash | $ | 5,000,000 | |||||||||||||||||||
Dividend Paid | ORIX USA Corporation | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Notes payable issued, dividend distribution | $ | $ 45,000,000 | |||||||||||||||||||
Dividend Paid | HL Holders | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Non-marketable minority equity interests, number of businesses | business | 4 | |||||||||||||||||||
Non-marketable minority equity interests | $ | $ 22,800,000 | |||||||||||||||||||
Dividend Paid | HL Holders | Minimum | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Non-marketable minority equity interests, carrying value | $ | $ 2,500,000 | |||||||||||||||||||
Dividend Paid | HL Holders | Maximum | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Non-marketable minority equity interests, carrying value | $ | 11,000,000 | |||||||||||||||||||
Dividend Paid | Notes Payable | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Notes payable issued, dividend distribution | $ | 197,200,000 | |||||||||||||||||||
Dividend Paid | Notes Payable | ORIX USA Corporation | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Notes payable issued, dividend distribution | $ | 94,500,000 | |||||||||||||||||||
Dividend Paid | Notes Payable | HL Holders | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Notes payable issued, dividend distribution | $ | $ 102,700,000 | |||||||||||||||||||
Accounts Payable and Accrued Liabilities | IPO | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Vesting period, restricted stock | 4 years 6 months | |||||||||||||||||||
The Company | Class A | Follow-on Offering | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 900,000 | 6,000,000 | ||||||||||||||||||
Selling Stockholders | Class A | Follow-on Offering | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 1,014,017 | 2,000,000 | 125,000 | 1,750,000 | 300,000 | 2,000,000 | ||||||||||||||
Forward Purchase Agreement | Class B | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Class B common stock acquired from ORIX USA (in shares) | 6,900,000 | |||||||||||||||||||
Forward Contracts | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Shares excluded from calculation of basic and diluted earnings per share (in shares) | 6,900,000 | 6,900,000 | ||||||||||||||||||
Forward Contracts | Forward Purchase Agreement | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Shares excluded from calculation of basic and diluted earnings per share (in shares) | 2,000,000 | 2,000,000 | ||||||||||||||||||
[1] | including related party professional fees of $0, $0, and $269 during the years ended March 31, 2019, 2018, and 2017 respectively. |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - Adjustments - Accounting Standards Update 2014-09 $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expenses | $ 33.6 |
Revenues | $ 33.6 |
REVENUE RECOGNITION - Effect of
REVENUE RECOGNITION - Effect of the Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | $ 1,084,385 | |||||||||||
Operating expenses: | ||||||||||||
Employee compensation and benefits | 692,073 | $ 636,631 | $ 582,244 | |||||||||
Travel, meals, and entertainment | 42,862 | 26,445 | 21,707 | |||||||||
Rent | 38,672 | 28,560 | 27,094 | |||||||||
Depreciation and amortization | 14,475 | 7,905 | 8,853 | |||||||||
Information technology and communications | 21,512 | 18,481 | 17,628 | |||||||||
Professional fees | [1] | 23,035 | 17,117 | 13,073 | ||||||||
Other operating expenses | [2] | 32,229 | 13,779 | 19,497 | ||||||||
Total operating expenses | $ 230,413 | $ 235,754 | $ 218,817 | $ 179,874 | $ 184,991 | $ 204,452 | $ 188,857 | $ 170,618 | 864,858 | 748,918 | 690,096 | |
Income before provision for income taxes | 224,320 | 217,836 | 178,487 | |||||||||
Provision for income taxes | 65,214 | 45,553 | 70,144 | |||||||||
Net income | 159,106 | $ 172,283 | $ 108,343 | |||||||||
Excluding adoption of ASC 606 | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | 1,050,405 | |||||||||||
Operating expenses: | ||||||||||||
Employee compensation and benefits | 692,024 | |||||||||||
Travel, meals, and entertainment | 28,865 | |||||||||||
Rent | 38,672 | |||||||||||
Depreciation and amortization | 14,475 | |||||||||||
Information technology and communications | 20,555 | |||||||||||
Professional fees | 19,038 | |||||||||||
Other operating expenses | 17,391 | |||||||||||
Total operating expenses | 831,020 | |||||||||||
Income before provision for income taxes | 224,178 | |||||||||||
Provision for income taxes | 65,173 | |||||||||||
Net income | 159,005 | |||||||||||
Adjustments | Accounting Standards Update 2014-09 | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenues | 33,980 | |||||||||||
Operating expenses: | ||||||||||||
Employee compensation and benefits | 49 | |||||||||||
Travel, meals, and entertainment | 13,997 | |||||||||||
Rent | 0 | |||||||||||
Depreciation and amortization | 0 | |||||||||||
Information technology and communications | 957 | |||||||||||
Professional fees | 3,997 | |||||||||||
Other operating expenses | 14,838 | |||||||||||
Total operating expenses | 33,838 | |||||||||||
Income before provision for income taxes | 142 | |||||||||||
Provision for income taxes | 41 | |||||||||||
Net income | $ 101 | |||||||||||
[1] | including related party professional fees of $0, $0, and $269 during the years ended March 31, 2019, 2018, and 2017 respectively. | |||||||||||
[2] | including related party income of $482, $286, and $461 during the years ended March 31, 2019, 2018, and 2017 respectively; and including realized foreign currency translation gain of $671, $5,123, and $309 during the years ended March 31, 2019, 2018, and 2017 respectively. |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Receivables, Contract Assets, and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Receivables | |||
Beginning balance | $ 77,259 | ||
Decrease | (12,462) | ||
Ending balance | 64,797 | $ 77,259 | |
Unbilled work in process | |||
Beginning balance | 45,862 | ||
Increase | 26,029 | (11,875) | $ 6,382 |
Ending balance | 71,891 | 45,862 | |
Contract Assets | |||
Beginning balance | 4,675 | ||
Decrease | 1,358 | ||
Ending balance | 6,033 | 4,675 | |
Contract Liabilities | |||
Beginning balance | 30,872 | ||
Decrease | (3,060) | ||
Ending balance | $ 27,812 | $ 30,872 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) | 12 Months Ended |
Mar. 31, 2019segment | |
Accounting Policies [Abstract] | |
Number of business segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Translation of Foreign Currency Transactions (Narrative) (Details) - Foreign currency forward contract $ in Thousands, € in Millions | 12 Months Ended | |||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2019EUR (€) | Mar. 31, 2018EUR (€) | Mar. 31, 2017EUR (€) | |
Derivative [Line Items] | ||||||
Aggregate notional value | € | € 2 | € 9 | € 5 | |||
Other operating expenses | ||||||
Derivative [Line Items] | ||||||
Gain (loss) included in other operating expenses | $ | $ (1) | $ 90 | $ 58 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 | Apr. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 285,746 | $ 206,723 | |||
Restricted cash | 369 | 93,500 | $ 192 | ||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 286,115 | $ 300,223 | $ 492,686 | $ 166,169 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Amortized Cost | $ 124,828 | $ 40,944 |
Trading securities, accumulated unrecognized gain (loss) | $ 16 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Toll charge, income tax expense | $ 1,313 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 146 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Jan. 31, 2006 | |
Accounting Policies [Abstract] | |||
Goodwill generated and recognized | $ 528,889 | $ 594,812 | $ 392,600 |
Indefinite-lived intangible assets generated and recognized | $ 192,210 | ||
Additional goodwill recognized, inclusive of foreign currency translations | $ 202,212 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 276,468 | $ 207,124 | |||
Deferred tax liabilities, net | 5,204 | 22,180 | $ 31,196 | ||
Contract with customer, liability | $ 27,812 | $ 30,872 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ (19,300) | ||||
Deferred tax liabilities, net | (6,900) | ||||
Contract with customer, liability | $ 26,200 | ||||
Subsequent Event | Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use asset | $ 150,000 | ||||
Operating lease liability | $ 154,502 |
RELATED_PARTY TRANSACTIONS (Det
RELATED‑PARTY TRANSACTIONS (Details) $ / shares in Units, € in Thousands, $ in Thousands, $ in Thousands | Jun. 04, 2018$ / sharesshares | Apr. 05, 2018shares | Mar. 12, 2018$ / sharesshares | Nov. 03, 2017shares | Oct. 25, 2017$ / sharesshares | Apr. 05, 2017shares | Mar. 15, 2017shares | Feb. 14, 2017$ / sharesshares | Mar. 31, 2018USD ($)shares | Apr. 30, 2017shares | Feb. 28, 2017AUD ($) | Nov. 30, 2015EUR (€) | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017USD ($) | Jul. 31, 2017USD ($) |
Related Party Transaction [Line Items] | ||||||||||||||||
Related party fee revenue | $ 8,819 | $ 3,006 | $ 7,504 | |||||||||||||
Other services expense | 0 | 0 | 269 | |||||||||||||
Related party interest income | 96 | 110 | 33 | |||||||||||||
Receivable from affiliates | $ 8,732 | 8,631 | 8,732 | |||||||||||||
Deferred revenue, related parties | 25 | 34 | 25 | |||||||||||||
Accounts Receivable and Unbilled Work in Progress | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Due from related parties | $ 21 | 3 | 21 | |||||||||||||
ORIX USA Corporation | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Related party interest income | 0 | 0 | 33 | |||||||||||||
ORIX USA Corporation | Management Accounting Legal Regulatory And Other Administrative Services | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Related party fee revenue | 8,819 | 3,006 | 7,504 | |||||||||||||
ORIX USA Corporation | Transition Services | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Other services expense | 0 | 0 | 269 | |||||||||||||
Unconsolidated entities | Management and administrative services | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Related party fee revenue | 482 | 286 | 461 | |||||||||||||
Joint Venture | Loan receivable | 2.0% Loans Payable | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Receivable from affiliates | $ 2,500 | $ 2,001 | ||||||||||||||
Related party interest rate | 2.00% | |||||||||||||||
Loan receivable | Joint Venture | 1.50% Loans Payable | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Related party interest income | 96 | 97 | $ 90 | |||||||||||||
Receivable from affiliates | € 5,500 | 6,492 | ||||||||||||||
Related party interest rate | 1.50% | |||||||||||||||
Reimbursable third-party costs | 2,139 | 2,698 | ||||||||||||||
Loan receivable | Joint Venture | 2.0% Loans Payable | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Related party interest income | $ 0 | $ 13 | ||||||||||||||
Italy | Joint Venture | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Ownership percentage | 49.00% | |||||||||||||||
Class B shares | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Class B common stock acquired from ORIX USA (in shares) | shares | 68,504 | 71,913 | ||||||||||||||
Class B shares | ORIX USA Corporation | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Class B common stock acquired from ORIX USA (in shares) | shares | 6,900,000 | |||||||||||||||
Stock repurchased and retired during period (in shares) | shares | 2,000,000 | 6,900,000 | ||||||||||||||
Class A | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Stock repurchased and retired during period (in shares) | shares | 1,481,114 | 430,237 | ||||||||||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 49.11 | $ 46.97 | $ 35.17 | |||||||||||||
Class A | ORIX USA Corporation | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Class B common stock acquired from ORIX USA (in shares) | shares | 697,000 | |||||||||||||||
Other Assets | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Loans receivable from employees | $ 7,489 | $ 15,228 | $ 7,489 | |||||||||||||
Follow-on Offering | Class A | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | shares | 2,000,000 | |||||||||||||||
Selling price per share (in dollars per share) | $ / shares | $ 49.15 | $ 47.25 | $ 42 | $ 29.25 | ||||||||||||
Follow-on Offering | Class A | ORIX USA Corporation | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | shares | 1,985,983 | 125,000 | 1,750,000 | |||||||||||||
Affiliated Entity | Follow-on Offering | Class A | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Shares issued and sold in Follow-on Offering (in shares) | shares | 1,014,017 | 2,000,000 | 125,000 | 1,750,000 | 300,000 | 2,000,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | $ 125,258 | $ 209,266 |
Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | 0 | 0 |
Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | 125,258 | 209,266 |
Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 10,106 | |
Certificates of deposit | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 0 | |
Certificates of deposit | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 10,106 | |
Certificates of deposit | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 0 | |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 116,577 | 183,578 |
Corporate debt securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Corporate debt securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 116,577 | 183,578 |
Corporate debt securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 8,681 | 15,582 |
U.S. Treasury securities | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
U.S. Treasury securities | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 8,681 | 15,582 |
U.S. Treasury securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 0 | $ 0 |
- Summary of Trading Securities
- Summary of Trading Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | $ 124,828 | $ 40,944 | |
Gross Unrealized Gains | 445 | ||
Gross Unrealized (Losses) | (15) | ||
Fair Value | 125,258 | ||
Amortized Cost | $ 209,319 | ||
Gross Unrealized Gains | 24 | ||
Gross Unrealized (Losses) | (77) | ||
Fair Value | 209,266 | ||
Corporate debt securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 116,220 | ||
Gross Unrealized Gains | 372 | ||
Gross Unrealized (Losses) | (15) | ||
Fair Value | 116,577 | ||
Amortized Cost | 183,632 | ||
Gross Unrealized Gains | 13 | ||
Gross Unrealized (Losses) | (67) | ||
Fair Value | 183,578 | ||
Certificates of deposit | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 10,106 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized (Losses) | 0 | ||
Fair Value | 10,106 | ||
U.S. Treasury securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 8,608 | ||
Gross Unrealized Gains | 73 | ||
Gross Unrealized (Losses) | 0 | ||
Fair Value | $ 8,681 | ||
Amortized Cost | 15,581 | ||
Gross Unrealized Gains | 11 | ||
Gross Unrealized (Losses) | (10) | ||
Fair Value | $ 15,582 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Investment Contractual Maturity Dates (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year, amortized cost | $ 96,109 | $ 209,319 |
Due within one year, estimated fair value | 96,175 | 209,266 |
Die within one year through five years, amortized cost | 28,719 | |
Due within one year through five years, fair value | 29,083 | |
Amortized cost | 124,828 | 209,319 |
Fair value | $ 125,258 | $ 209,266 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Uncollectible Accounts Receivable | |||
Balance-beginning | $ 11,391 | $ 11,199 | |
Provision for bad debt | 1,707 | 1,983 | $ 4,008 |
Write-off of uncollectible accounts | (7,502) | (1,791) | |
Balance-ending | $ 5,596 | $ 11,391 | $ 11,199 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 74,347 | $ 69,224 | |
Less: accumulated depreciation | (43,313) | (37,078) | |
Total net book value | 31,034 | 32,146 | |
Depreciation | $ 8,434 | 6,195 | $ 5,708 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Total cost | $ 7,916 | 6,653 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Total cost | $ 19,445 | 19,189 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 10 years | ||
Total cost | $ 34,370 | 31,916 | |
Computers and software | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 3 years | ||
Total cost | $ 11,499 | 10,346 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 1,117 | $ 1,120 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 31, 2006 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 594,812 | $ 528,889 | $ 392,600 |
Tradename-Houlihan Lokey | 192,210 | 192,210 | |
Other intangible assets | 18,614 | 15,464 | |
Total cost | 805,636 | 736,563 | |
Less: accumulated amortization | (11,032) | (13,253) | |
Total net book value (before taxes) | 794,604 | 723,310 | |
Deferred tax liability | (51,676) | (50,541) | |
Total net book value | $ 742,928 | $ 672,769 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Business Segments (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill | |
April 1, 2018 | $ 528,889 |
Changes | 65,923 |
March 31, 2019 | 594,812 |
Corporate Finance | |
Goodwill | |
April 1, 2018 | 273,812 |
Changes | 66,470 |
March 31, 2019 | 340,282 |
Financial Restructuring | |
Goodwill | |
April 1, 2018 | 163,362 |
Changes | (547) |
March 31, 2019 | 162,815 |
Financial Advisory Services | |
Goodwill | |
April 1, 2018 | 91,715 |
Changes | 0 |
March 31, 2019 | $ 91,715 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 6,041 | $ 1,710 | $ 3,145 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Amortization Expense, Fiscal Year Maturity (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Year Ended March 31, | |
2020 | $ 6,294 |
2021 | 711 |
2022 | 157 |
2023 | 7 |
2024 | $ 7 |
LOANS PAYABLE (Details)
LOANS PAYABLE (Details) € in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Jan. 31, 2017EUR (€) | Aug. 31, 2015USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | May 31, 2018USD ($) | Apr. 30, 2018GBP (£) | Nov. 30, 2015EUR (€) | |
Debt Instrument [Line Items] | ||||||||||
Related party interest expense | $ 0 | $ 62,000 | $ 806,000 | |||||||
Loans Payable | 1.50% Loans Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans payable, face amount | € | € 14 | |||||||||
Stated interest rate | 1.50% | |||||||||
Portion of loan paid | € | € 2.9 | € 2.9 | € 2.9 | |||||||
Loans Payable | Non Interest Bearing Unsecured Convertible Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans payable, face amount | £ | £ 10,500,000 | |||||||||
Interest and unused commitment fees paid | 325,000 | |||||||||
Loans Payable | Two Point Eighty Eight Percent Loans Payable [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans payable, face amount | $ 2,800,000 | |||||||||
Stated interest rate | 2.88% | |||||||||
Loans Payable | ORIX USA Corporation | 1.65% Loans Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans payable, face amount | $ 45,000,000 | |||||||||
Related party interest expense | $ 0 | $ 62,000 | 1,000 | |||||||
Loans payable, required quarterly repayments | $ 7,500,000 | |||||||||
Loans Payable | ORIX USA Corporation | 1.65% Loans Payable | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 165.00% | 4.36% | 4.31% | |||||||
Loans Payable | Former Shareholders | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Related party interest expense | $ 96,000 | $ 124,000 | 203,000 | |||||||
Stated interest rate | 3.92% | 3.10% | ||||||||
Loans Payable | Joint Venture | 1.50% Loans Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Related party interest expense | $ 131,000 | $ 179,000 | 213,000 | |||||||
Revolving line of credit | Bank of America | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving line of credit, maximum borrowing capacity | $ 75,000,000 | |||||||||
Principal outstanding | 0 | |||||||||
Interest and unused commitment fees paid | 228,000 | 228,000 | $ 400,000 | |||||||
Revolving line of credit | Bank of America | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.00% | |||||||||
Italy | Leonardo | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest acquired in the investment banking operations of Leonardo in Italy (as a percent) | 49.00% | |||||||||
Other Liabilities | January 2015 Acquisition | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Business combination, noncontingent consideration liability | 226,000 | 226,000 | ||||||||
Other Liabilities | January 2017 Acquisition | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Business combination, noncontingent consideration liability | $ 1,983,000 | $ 1,918,000 |
OTHER COMPREHENSIVE INCOME AN_3
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss | |||
Foreign currency translation gain/loss | $ (16,338) | $ 7,961 | $ (7,304) |
Accumulated other comprehensive loss | |||
Accumulated Other Comprehensive Loss | |||
Beginning balance | (13,956) | (21,917) | (14,613) |
Foreign currency translation gain/loss | (16,338) | 7,961 | (7,304) |
Ending balance | (30,294) | (13,956) | (21,917) |
Foreign currency translation gain (loss) | |||
Accumulated Other Comprehensive Loss | |||
Foreign currency translation gain/loss | $ (16,338) | $ 7,961 | $ (7,304) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 65,214 | $ 45,553 | $ 70,144 | ||
Effective tax rate | 29.10% | 20.90% | 39.30% | ||
Federal corporate rate | 21.00% | 31.49984% | 35.00% | ||
Deferred tax assets, valuation allowance | $ 8,846 | $ 9,469 | $ 10,984 | ||
Recorded liabilities for interest and penalties related to uncertain tax positions | 1,093 | 934 | 816 | ||
Unrecognized tax benefits | 4,960 | $ 4,563 | $ 3,694 | $ 1,024 | |
Foreign Tax Authority | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit carryforward, amount | $ 2,523 | $ 3,865 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) for Income Taxes on Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Current: | |||
Federal | $ 47,101 | $ 34,638 | $ 60,024 |
State and local | 22,094 | 9,768 | 12,686 |
Foreign | 6,706 | 7,716 | 3,527 |
Current income tax expense (benefit) | 75,901 | 52,122 | 76,237 |
Deferred: | |||
Federal | (10,665) | (2,398) | (7,262) |
State and local | (1,997) | (646) | (962) |
Foreign | 1,975 | (3,525) | 2,131 |
Deferred income tax expense (benefit) | (10,687) | (6,569) | (6,093) |
Total | $ 65,214 | $ 45,553 | $ 70,144 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Federal income tax provision computed at statutory rate | $ 47,107 | $ 68,618 | $ 62,470 |
State and local taxes, net of federal tax effect | 12,944 | 7,600 | 8,139 |
Tax impact from foreign operations | (2,098) | (3,972) | (1,741) |
Nondeductible expenses | 3,797 | 1,414 | 1,422 |
Nondeductible public offering-related expenses | 0 | 0 | 562 |
Stock compensation | (8) | (16,173) | 0 |
Uncertain tax positions, true-up items, and other | 2,159 | (1,203) | (708) |
Enactment of the Tax Act | 1,313 | (10,731) | 0 |
Total | $ 65,214 | $ 45,553 | $ 70,144 |
Effective Income Tax Rate Reconciliation, Percent | |||
Federal income tax provision computed at statutory rate | 21.00% | 31.49984% | 35.00% |
State and local taxes, net of federal tax effect | 5.80% | 3.50% | 4.60% |
Tax impact from foreign operations | (0.90%) | (1.80%) | (1.00%) |
Nondeductible expenses | 1.70% | 0.60% | 0.80% |
Nondeductible public offering-related expenses | 0.00% | 0.00% | 0.30% |
Stock compensation | 0.00% | (7.40%) | 0.00% |
Uncertain tax positions, true-up items, and other | 0.90% | (0.60%) | (0.40%) |
Enactment of the Tax Act | 0.60% | (4.90%) | 0.00% |
Total | 29.10% | 20.90% | 39.30% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred tax assets: | |||
Deferred compensation expense/accrued bonus | $ 48,501 | $ 32,358 | $ 57,379 |
Allowance for doubtful accounts | 675 | 2,347 | 4,920 |
US foreign tax credits | 2,523 | 3,865 | 0 |
Other, net | 7,789 | 11,271 | 11,235 |
Total deferred tax assets | 59,488 | 49,841 | 73,534 |
Deferred tax asset valuation allowance | (11,369) | (13,334) | (10,984) |
Total deferred tax assets | 48,119 | 36,507 | 62,550 |
Deferred tax liabilities: | |||
Intangibles | (51,676) | (50,541) | (77,184) |
Accounts receivable and work in process | (1,647) | (8,146) | (16,562) |
Total deferred tax liabilities | (53,323) | (58,687) | (93,746) |
Net deferred tax liabilities | $ (5,204) | $ (22,180) | $ (31,196) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits | |||
Unrecognized tax position at the beginning of the year | $ 4,563 | $ 3,694 | $ 1,024 |
Increases related to prior year tax positions | 1,210 | 1,033 | 2,670 |
Decreases related to prior year tax positions | (813) | (164) | 0 |
Unrecognized tax position at the end of the year | $ 4,960 | $ 4,563 | $ 3,694 |
NET INCOME PER SHARE ATTRIBUT_3
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | |||||||||||
Net income attributable to holders of shares of common stock—basic | $ 159,106 | $ 172,283 | $ 108,343 | ||||||||
Net income attributable to holders of shares of common stock—diluted | $ 159,106 | $ 172,283 | $ 108,343 | ||||||||
Denominator: | |||||||||||
Weighted average shares of common stock outstanding—basic (in shares) | 62,213,414 | 62,494,275 | 61,100,497 | ||||||||
Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method (in shares) | 3,632,718 | 3,829,818 | 5,478,633 | ||||||||
Weighted average shares of common stock outstanding—diluted (in shares) | 65,846,132 | 66,324,093 | 66,579,130 | ||||||||
Net income per share attributable to holders of shares of common stock | |||||||||||
Basic (in usd per share) | $ 0.74 | $ 0.71 | $ 0.64 | $ 0.47 | $ 0.61 | $ 0.98 | $ 0.54 | $ 0.63 | $ 2.56 | $ 2.76 | $ 1.77 |
Diluted (in usd per share) | $ 0.69 | $ 0.67 | $ 0.61 | $ 0.45 | $ 0.58 | $ 0.93 | $ 0.50 | $ 0.59 | $ 2.42 | $ 2.60 | $ 1.63 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Defined contribution plan, amount of contributions | $ 2,765 | $ 2,018 | $ 2,321 |
EMPLOYEE BENEFIT PLANS - Share-
EMPLOYEE BENEFIT PLANS - Share-Based Incentive Plans Narrative (Details) $ / shares in Units, $ in Thousands | Oct. 19, 2017shares | Oct. 31, 2017shares | Feb. 28, 2017shares | Aug. 31, 2015director$ / sharesshares | Dec. 31, 2018director$ / shares | Jun. 30, 2018director$ / shares | Jun. 30, 2017director$ / shares | Jun. 30, 2016director$ / shares | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017USD ($) | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation, excess tax benefit amount | $ | $ 8 | |||||||||||
Payments related to tax withholding for share-based compensation | $ | 1,947 | $ 33,419 | $ 22,756 | |||||||||
Compensation expense | $ | 56,562 | $ 47,111 | $ 45,059 | |||||||||
Unrecognized compensation cost | $ | $ 77,348 | |||||||||||
Unrecognized compensation cost, period for recognition | 1 year 5 months 1 day | |||||||||||
Shares retired to satisfy minimum statutory tax withholding requirements (in shares) | 806,248 | 704,528 | ||||||||||
Shares subject to accelerated vesting (in shares) | 1,737,461 | 1,907,890 | ||||||||||
2006 Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period, restricted stock | 3 years | |||||||||||
2006 Incentive Plan | Restricted Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Aggregate shares granted | 1,069,436 | 1,235,779 | ||||||||||
Granted (in usd per share) | $ / shares | $ 49.32 | $ 34.86 | ||||||||||
2016 Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period, restricted stock | 4 years | |||||||||||
Amended And Restated 2016 Incentive Award Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase (decrease) in number of shares authorized (in shares) | (12,200,000) | |||||||||||
Number of shares authorized (in share) | 8,000,000 | |||||||||||
Director | 2016 Incentive Plan | Restricted Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Aggregate shares granted | 30,820 | |||||||||||
Aggregate shares granted, number of recipients | director | 2 | 1 | 3 | 3 | ||||||||
Granted (in usd per share) | $ / shares | $ 21 | $ 42.41 | $ 44.50 | $ 33.54 | ||||||||
April 1, 2018 | Class B | Amended And Restated 2016 Incentive Award Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase (decrease) in number of shares authorized (in shares) | 6,540,659 | |||||||||||
Percentage increase (decrease) to number of shares available for issuance | 6.00% | |||||||||||
April 1, 2018 | Class A | Amended And Restated 2016 Incentive Award Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase (decrease) in number of shares authorized (in shares) | 6,540,659 | |||||||||||
Percentage increase (decrease) to number of shares available for issuance | 6.00% | |||||||||||
Exercise Price 1 | Director | 2016 Incentive Plan | Restricted Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Aggregate shares granted, number of recipients | director | 2 | |||||||||||
Granted (in usd per share) | $ / shares | $ 25.21 | |||||||||||
Exercise Price 2 | Director | 2016 Incentive Plan | Restricted Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Aggregate shares granted, number of recipients | director | 1 | |||||||||||
Granted (in usd per share) | $ / shares | $ 23.93 | |||||||||||
Measurement Input, Discount Rate | Restricted Stock | Income Approach | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Measurement input rate | 0.115 | |||||||||||
Measurement Input, Revenue Multiple | Restricted Stock | Market Approach | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Measurement input rate | 0.9 | |||||||||||
Measurement Input, Revenue Multiple | Restricted Stock | Market Approach | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Measurement input rate | 4.4 |
EMPLOYEE BENEFIT PLANS - Activi
EMPLOYEE BENEFIT PLANS - Activity in Equity Classified Share Awards (Details) - 2006 Incentive Plan - Restricted Stock - $ / shares | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Shares | ||
Beginning balance (in shares) | 2,854,893 | 3,626,270 |
Granted (in shares) | 1,069,436 | 1,235,779 |
Vested (in shares) | (76,702) | (1,023,078) |
Forfeited (in shares) | (83,643) | (984,078) |
Ending balance (in shares) | 3,763,984 | 2,854,893 |
Weighted average grant date fair value | ||
Beginning balance (in usd per share) | $ 26.39 | $ 22.35 |
Granted (in usd per share) | 49.32 | 34.86 |
Vested (in usd per share) | 48.78 | 24.03 |
Forfeited (in usd per share) | 33.91 | 24.60 |
Ending balance (in usd per share) | $ 32.29 | $ 26.39 |
EMPLOYEE BENEFIT PLANS - Acti_2
EMPLOYEE BENEFIT PLANS - Activity in Liability Classified Shares (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Awards settleable in shares | ||
Beginning balance | $ 15,493 | $ 12,743 |
Offer to grant | 12,432 | 9,637 |
Share price determined-converted to cash payments | (300) | (6,040) |
Share price determined-transferred to equity grants | (4,705) | 0 |
Forfeited | (1,244) | (847) |
Ending balance | $ 21,676 | $ 15,493 |
Share price determined-transferred to equity grants (in shares) | 96,778 | 0 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Jun. 04, 2018$ / sharesshares | Apr. 05, 2018shares | Apr. 05, 2017shares | Mar. 31, 2018USD ($)shares | Apr. 30, 2017USD ($)shares | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017shares | Dec. 31, 2018vote | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Nov. 30, 2017shares | Feb. 28, 2017USD ($) | Mar. 31, 2016shares | Aug. 18, 2015voteshares |
Class of Stock [Line Items] | |||||||||||||||
Conversion ratio of common stock | 1 | ||||||||||||||
Restricted cash | $ | $ 93,500,000 | $ 192,000 | $ 369,000 | $ 93,500,000 | |||||||||||
Forward purchase liability | $ | 93,500,000 | 0 | 93,500,000 | $ 93,500 | |||||||||||
Dividends outstanding | $ | $ 3,983,000 | $ 8,006,000 | $ 3,983,000 | ||||||||||||
Stock repurchase program, authorized amount | $ | $ 100,000,000 | ||||||||||||||
Class A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued of common stock (in shares) | 30,604,405 | 38,200,802 | 30,604,405 | ||||||||||||
Shares converted from Class B to Class A (in shares) | 1,252,242 | ||||||||||||||
Common stock voting rights, number of votes per share | vote | 1 | ||||||||||||||
Number of common shares outstanding (in shares) | 30,604,405 | 38,200,802 | 30,604,405 | ||||||||||||
Stock repurchased and retired during period (in shares) | 1,481,114 | 430,237 | |||||||||||||
Stock repurchase program, authorized amount | $ | $ 50,000,000 | ||||||||||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 49.11 | $ 46.97 | $ 35.17 | ||||||||||||
Stock repurchased and retired during period, value | $ | $ 69,563,000 | $ 15,131,000 | |||||||||||||
Class B | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued of common stock (in shares) | 37,187,932 | 27,197,734 | 37,187,932 | ||||||||||||
Common stock voting rights, number of votes per share | vote | 10 | 10 | |||||||||||||
Number of common shares outstanding (in shares) | 37,187,932 | 27,197,734 | 37,187,932 | ||||||||||||
Stock repurchased during period (in shares) | 68,504 | 71,913 | |||||||||||||
ORIX USA Corporation | Class A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of common shares outstanding (in shares) | 4,109,721 | ||||||||||||||
Stock repurchased during period (in shares) | 697,000 | ||||||||||||||
ORIX USA Corporation | Class B | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of common shares outstanding (in shares) | 2,268,214 | ||||||||||||||
Stock repurchased and retired during period (in shares) | 2,000,000 | 6,900,000 | |||||||||||||
Stock repurchased during period (in shares) | 6,900,000 | ||||||||||||||
Investor | Class A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued of common stock (in shares) | 12,075,000 | ||||||||||||||
Director | Class A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued of common stock (in shares) | 9,524 | ||||||||||||||
Shares issued to non-employee directors (in shares) | 5,589,000 | 9,137,000 | |||||||||||||
Number of common shares outstanding (in shares) | 54,940 | ||||||||||||||
HL Holders | Class B | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of common shares outstanding (in shares) | 24,929,520 | ||||||||||||||
The Follow-on Offering | Investor | Class A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued of common stock (in shares) | 3,750,000 | ||||||||||||||
Shares issued to non-employee directors (in shares) | 4,000,000 | 9,200,000 | |||||||||||||
Number of common shares outstanding (in shares) | 34,036,141 | ||||||||||||||
Common Stock | Class A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued to non-employee directors (in shares) | 6,570 | 5,589 | 9,137 | ||||||||||||
Shares converted from Class B to Class A (in shares) | 733,150,000 | ||||||||||||||
Number of common shares outstanding (in shares) | 30,604,405 | 38,200,802 | 30,604,405 | 22,026,811 | 12,084,524 | ||||||||||
Common Stock | Class B | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of common shares outstanding (in shares) | 37,187,932 | 27,197,734 | 37,187,932 | 50,883,299 | 53,219,303 | ||||||||||
Stock repurchased and retired during period (in shares) | 2,000,000 | 6,900,000 | |||||||||||||
Stock repurchased and retired during period, value | $ | $ 2,000 | $ 7,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Loan Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Year Ended March 31, | |
2020 | $ 3,169 |
2021 | 575 |
2022 | 280 |
2023 | 14,042 |
2024 | 31 |
2025 and thereafter | 13,092 |
Total | $ 31,189 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 38,672,000 | $ 28,560,000 | $ 27,094,000 |
Noncancelable Operating Lease Arrangements | |||
Operating Leased Assets [Line Items] | |||
Rent expense | 38,672,000 | 27,799,000 | $ 26,205,000 |
January 2017 Acquisition | Other Liabilities | |||
Business Acquisition [Line Items] | |||
Contingent consideration | $ 0 | $ 4,085,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Future Minimum Annual Noncancelable Rental Commitments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Year Ended March 31, | |
2020 | $ 28,640 |
2021 | 26,703 |
2022 | 22,353 |
2023 | 18,339 |
2024 | 11,205 |
2025 and thereafter | 41,028 |
Total | $ 148,268 |
SEGMENT AND GEOGRAPHICAL INFO_3
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 291,378 | $ 298,013 | $ 274,992 | $ 220,002 | $ 244,753 | $ 258,937 | $ 242,183 | $ 217,491 | $ 1,084,385 | [1] | $ 963,364 | [1] | $ 872,091 | [1] | |
Segment profit | 305,986 | 277,600 | 241,475 | ||||||||||||
Corporate expenses (2) | (230,413) | $ (235,754) | $ (218,817) | $ (179,874) | (184,991) | $ (204,452) | $ (188,857) | $ (170,618) | (864,858) | (748,918) | (690,096) | ||||
Other (income) expense, net | [2] | 4,793 | 3,390 | (3,508) | |||||||||||
Income before provision for income taxes | 224,320 | 217,836 | 178,487 | ||||||||||||
Assets | 1,418,841 | 1,385,707 | 1,423,058 | 1,418,841 | 1,385,707 | ||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Assets | 649,104 | 631,476 | 708,454 | 649,104 | 631,476 | ||||||||||
Operating Segments | Corporate Finance | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 607,333 | 528,643 | 434,558 | ||||||||||||
Segment profit | 193,603 | 177,575 | 119,739 | ||||||||||||
Assets | 337,584 | 316,561 | 397,069 | 337,584 | 316,561 | ||||||||||
Operating Segments | Financial Restructuring | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 317,774 | 294,142 | 307,595 | ||||||||||||
Segment profit | 83,607 | 73,691 | 92,831 | ||||||||||||
Assets | 185,486 | 193,275 | 184,364 | 185,486 | 193,275 | ||||||||||
Operating Segments | Financial Advisory Services | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 159,278 | 140,579 | 129,938 | ||||||||||||
Segment profit | 28,776 | 26,334 | 28,905 | ||||||||||||
Assets | 126,034 | 121,640 | 127,021 | 126,034 | 121,640 | ||||||||||
Corporate, Non-Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Corporate expenses (2) | 86,459 | 63,154 | 59,480 | ||||||||||||
Assets | $ 769,737 | $ 754,231 | 714,604 | 769,737 | 754,231 | ||||||||||
Segment Reconciling Items | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Other (income) expense, net | $ (4,793) | $ (3,390) | $ 3,508 | ||||||||||||
[1] | including related party revenue of $8,819, $3,006, and $7,504 during the years ended March 31, 2019, 2018, and 2017 respectively. | ||||||||||||||
[2] | including related party interest income of $96, $110, and $33 during the years ended March 31, 2019, 2018, and 2017, respectively, and related party interest expense of $0, $62, and $806 during years ended March 31, 2019, 2018, and 2017, respectively. The Company recognized (gain) loss related to investments in unconsolidated entities of $(609), $(3,210), and $3,839 during years ended March 31, 2019, 2018, and 2017, respectively. |
SEGMENT AND GEOGRAPHICAL INFO_4
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Revenues | $ 291,378 | $ 298,013 | $ 274,992 | $ 220,002 | $ 244,753 | $ 258,937 | $ 242,183 | $ 217,491 | $ 1,084,385 | [1] | $ 963,364 | [1] | $ 872,091 | [1] |
Income before provision for income taxes | 224,320 | 217,836 | 178,487 | |||||||||||
Assets | 1,418,841 | 1,385,707 | 1,423,058 | 1,418,841 | 1,385,707 | |||||||||
United States | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Revenues | 878,840 | 830,079 | 760,450 | |||||||||||
Income before provision for income taxes | 176,850 | 185,380 | 154,268 | |||||||||||
Assets | 957,897 | 964,273 | 1,021,975 | 957,897 | 964,273 | |||||||||
International | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Revenues | 205,545 | 133,285 | 111,641 | |||||||||||
Income before provision for income taxes | 47,470 | 32,456 | 24,219 | |||||||||||
Assets | $ 460,944 | $ 421,434 | $ 401,083 | $ 460,944 | $ 421,434 | |||||||||
[1] | including related party revenue of $8,819, $3,006, and $7,504 during the years ended March 31, 2019, 2018, and 2017 respectively. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Apr. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 |
Subsequent Event [Line Items] | |||||||||
Quarterly dividend declared (in usd per share) | $ 0.31 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | |
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Quarterly dividend declared (in usd per share) | $ 0.31 |
Consolidated Quarterly Result_2
Consolidated Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 291,378 | $ 298,013 | $ 274,992 | $ 220,002 | $ 244,753 | $ 258,937 | $ 242,183 | $ 217,491 | $ 1,084,385 | [1] | $ 963,364 | [1] | $ 872,091 | [1] |
Total operating expenses | 230,413 | 235,754 | 218,817 | 179,874 | 184,991 | 204,452 | 188,857 | 170,618 | 864,858 | 748,918 | 690,096 | |||
Operating income | 60,965 | 62,259 | 56,175 | 40,128 | 59,762 | 54,485 | 53,326 | 46,873 | $ 219,527 | $ 214,446 | $ 181,995 | |||
Net income attributable to Houlihan Lokey, Inc. | $ 45,348 | $ 43,957 | $ 40,119 | $ 29,682 | $ 38,099 | $ 61,583 | $ 33,357 | $ 39,244 | ||||||
Net income per share of common stock: | ||||||||||||||
Basic (in usd per share) | $ 0.74 | $ 0.71 | $ 0.64 | $ 0.47 | $ 0.61 | $ 0.98 | $ 0.54 | $ 0.63 | $ 2.56 | $ 2.76 | $ 1.77 | |||
Diluted (in usd per share) | 0.69 | 0.67 | 0.61 | 0.45 | 0.58 | 0.93 | 0.50 | 0.59 | $ 2.42 | $ 2.60 | $ 1.63 | |||
Dividends declared per share of common stock (in usd per share) | $ 0.31 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | ||||||
[1] | including related party revenue of $8,819, $3,006, and $7,504 during the years ended March 31, 2019, 2018, and 2017 respectively. |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Uncollectible Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Uncollectible Accounts | |||
Beginning balance | $ 11,391 | $ 11,199 | $ 7,844 |
Provision for bad debts | 1,707 | 1,983 | 4,008 |
Write-off of uncollectible accounts | (7,502) | (1,791) | (653) |
Ending balance | $ 5,596 | $ 11,391 | $ 11,199 |
Uncategorized Items - hli-20190
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (19,347,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (19,347,000) |