Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | May 18, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37537 | ||
Entity Registrant Name | Houlihan Lokey, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-2770395 | ||
Entity Address, Address Line One | 10250 Constellation Blvd. | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90067 | ||
City Area Code | 310 | ||
Local Phone Number | 788-5200 | ||
Title of 12(b) Security | Class A Common Stock, par value $.001 | ||
Trading Symbol | HLI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,041 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for its 2021 annual meeting of stockholders, which the Registrant anticipates will be filed no later than 120 days after the end of its fiscal year, are incorporated by reference in Part III of this Form 10‑K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001302215 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 51,403,207 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 16,793,558 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 846,851 | $ 380,373 |
Restricted cash | 373 | 373 |
Investment securities | 208,618 | 135,389 |
Accounts receivable, net of allowance for credit losses of $8,262 and $5,587, respectively | 108,409 | 80,912 |
Unbilled work in progress, net of allowance for credit losses of $3,520 and $1,302, respectively | 118,115 | 39,821 |
Income taxes receivable | 0 | 4,282 |
Deferred income taxes | 28,332 | 6,507 |
Property and equipment, net | 46,370 | 42,372 |
Operating lease right-of-use assets | 152,031 | 135,240 |
Goodwill and other intangibles, net | 866,221 | 812,844 |
Other assets | 50,747 | 38,890 |
Total assets | 2,426,067 | 1,677,003 |
Liabilities: | ||
Accrued salaries and bonuses | 648,399 | 420,376 |
Accounts payable and accrued expenses | 67,468 | 53,883 |
Deferred income | 27,868 | 26,780 |
Income taxes payable | 68,339 | 0 |
Deferred income taxes | 52 | 664 |
Loans payable to former shareholders | 818 | 1,393 |
Loan payable to non-affiliate | 0 | 3,283 |
Operating lease liabilities | 174,516 | 154,218 |
Other liabilities | 55,046 | 32,024 |
Total liabilities | 1,042,506 | 692,621 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Additional paid-in capital | 803,573 | 649,954 |
Retained earnings | 600,096 | 377,471 |
Accumulated other comprehensive (loss) | (20,176) | (43,108) |
Total stockholders' equity | 1,383,561 | 984,382 |
Total liabilities and stockholders' equity | 2,426,067 | 1,677,003 |
Class A | ||
Stockholders' equity: | ||
Common stock | 51 | 46 |
Class B | ||
Stockholders' equity: | ||
Common stock | $ 17 | $ 19 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance For Doubtful Accounts | $ 8,262 | $ 5,587 |
Allowance for doubtful accounts, unbilled receivables, work in process | $ 3,520 | $ 1,302 |
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) | 51,245,442 | 46,178,633 |
Common stock, shares outstanding (in shares) | 51,245,442 | 46,178,633 |
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) | 16,951,696 | 19,345,277 |
Common stock, shares outstanding (in shares) | 16,951,696 | 19,345,277 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 1,525,452 | ||
Revenues | 1,525,452 | $ 1,159,368 | $ 1,084,385 |
Operating expenses: | |||
Employee compensation and benefits | 971,195 | 737,762 | 692,073 |
Travel, meals, and entertainment | 6,527 | 41,945 | 42,862 |
Rent | 39,233 | 44,693 | 38,672 |
Depreciation and amortization | 15,228 | 17,291 | 14,475 |
Information technology and communications | 31,646 | 26,904 | 21,512 |
Professional fees | 24,681 | 21,704 | 23,035 |
Other operating expenses | 28,785 | 39,468 | 32,659 |
Total operating expenses | 1,117,295 | 929,767 | 865,288 |
Operating income | 408,157 | 229,601 | 219,097 |
Other (income)/expense, net | (1,071) | (6,046) | (5,223) |
Income before provision for income taxes | 409,228 | 235,647 | 224,320 |
Provision for income taxes | 96,457 | 51,854 | 65,214 |
Net income | 312,771 | 183,793 | 159,106 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | 22,932 | (12,814) | (16,338) |
Comprehensive income | $ 335,703 | $ 170,979 | $ 142,768 |
Weighted average shares of common stock outstanding: | |||
Basic (in shares) | 65,785,042 | 62,152,870 | 62,213,414 |
Diluted (in shares) | 68,671,248 | 65,725,516 | 65,846,132 |
Earnings per share (Note 13) | |||
Basic (in usd per share) | $ 4.75 | $ 2.96 | $ 2.56 |
Diluted (in usd per share) | $ 4.55 | $ 2.80 | $ 2.42 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | 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) |
Increase (Decrease) in Stockholders' Equity | |||||||||||
Cumulative effect of the change in accounting principle related to revenue recognition from contracts with clients, net of tax | $ (19,347) | $ (19,347) | |||||||||
Beginning balance (in shares) at Mar. 31, 2018 | 30,604,405 | 37,187,932 | (2,000,000) | ||||||||
Beginning balance at Mar. 31, 2018 | 852,813 | $ 31 | $ 37 | $ (93,500) | $ 753,077 | 207,124 | $ (13,956) | ||||
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) | 0 | |||||||
Retired shares upon settlement of forward purchase agreement (in shares) | (1,481,114,000) | (36,958,000) | (2,000,000) | 2,000,000 | |||||||
Retired shares upon settlement of forward purchase agreement | $ (69,180) | $ (1,700) | 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 | |||||||||
Shares purchased and retired under repurchase program (in shares) | (784,114) | ||||||||||
Shares purchased and retired under repurchase program | 34,975 | $ 1 | 34,974 | ||||||||
Other shares repurchased/forfeited (in shares) | (697,000) | (127,331) | |||||||||
Other shares repurchased/forfeited | (36,535) | $ (1) | (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 | 0 | ||||||||
Ending balance at Mar. 31, 2019 | 891,329 | $ 38 | $ 27 | $ 0 | 645,090 | 276,468 | (30,294) | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Shares issued (in shares) | 1,546,486 | ||||||||||
Shares issued | 8,713 | $ 1 | 8,712 | ||||||||
Stock compensation vesting (note 14) | 56,901 | 56,901 | |||||||||
Class B shares sold (in shares) | 6,287,412 | (6,287,412) | |||||||||
Class B shares sold | 0 | $ 6 | $ (6) | ||||||||
Dividends | (82,790) | (82,790) | |||||||||
Retired shares upon settlement of forward purchase agreement (in shares) | (671,187,000) | (654,994,000) | |||||||||
Retired shares upon settlement of forward purchase agreement | $ (29,621) | $ (31,451) | |||||||||
Conversion of Class B to Class A shares (in shares) | 2,352,461 | (2,352,461) | |||||||||
Conversion of Class B to Class A shares | 0 | $ 2 | $ (2) | ||||||||
Shares issued to non-employee directors (note 14) (in shares) | 9,145 | ||||||||||
Shares issued to non-employee directors (note 14) | 369 | 369 | |||||||||
Other shares repurchased/forfeited (in shares) | (671,187) | (759,070) | |||||||||
Other shares repurchased/forfeited | (61,119) | $ 0 | $ (1) | (61,118) | |||||||
Net income | 183,793 | 183,793 | 183,793 | ||||||||
Change in unrealized translation | (12,814) | (12,814) | (12,814) | ||||||||
Total comprehensive income | 170,979 | 183,793 | (12,814) | ||||||||
Ending balance (in shares) at Mar. 31, 2020 | 46,178,633 | 19,345,277 | 46,178,633 | 19,345,277 | 0 | ||||||
Ending balance at Mar. 31, 2020 | 984,382 | $ (682) | 984,382 | $ 46 | $ 19 | $ 0 | 649,954 | 377,471 | (43,108) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Shares issued (in shares) | 3,000,000 | 1,612,091 | |||||||||
Shares issued | 223,173 | $ 3 | $ 2 | 223,168 | |||||||
Stock compensation vesting (note 14) | 50,152 | 50,152 | |||||||||
Dividends | (89,464) | (89,464) | |||||||||
Retired shares upon settlement of forward purchase agreement (in shares) | (1,591,995,000) | (286,730,000) | |||||||||
Retired shares upon settlement of forward purchase agreement | $ (102,173) | $ (17,810) | |||||||||
Conversion of Class B to Class A shares (in shares) | 3,650,053 | (3,650,053) | |||||||||
Conversion of Class B to Class A shares | 0 | $ 4 | $ (4) | ||||||||
Shares issued to non-employee directors (note 14) (in shares) | 8,751 | ||||||||||
Shares issued to non-employee directors (note 14) | 333 | 333 | |||||||||
Shares purchased and retired under repurchase program (in shares) | (1,591,995) | (355,619) | |||||||||
Shares purchased and retired under repurchase program | 120,036 | $ 2 | $ 0 | 120,034 | |||||||
Net income | 312,771 | 312,771 | 312,771 | ||||||||
Change in unrealized translation | 22,932 | 22,932 | 22,932 | ||||||||
Total comprehensive income | 335,703 | 312,771 | 22,932 | ||||||||
Ending balance (in shares) at Mar. 31, 2021 | 51,245,442 | 16,951,696 | 51,245,442 | 16,951,696 | |||||||
Ending balance at Mar. 31, 2021 | $ 1,383,561 | $ 1,383,561 | $ 51 | $ 17 | $ 803,573 | $ 600,096 | $ (20,176) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 312,771 | $ 183,793 | $ 159,106 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred tax benefit | (21,237) | (9,654) | (10,687) |
Provision for bad debts, net | 7,290 | 4,873 | 1,707 |
Unrealized gains on investment securities | (99) | (75) | (430) |
Non-cash lease expense | 22,756 | 24,654 | 0 |
Depreciation and amortization | 15,228 | 17,291 | 14,475 |
Contingent consideration valuation | 478 | (1,220) | (708) |
Compensation expense — equity and liability classified share awards (Note 14) | 62,421 | 64,345 | 56,561 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (32,965) | (13,387) | 21,611 |
Unbilled work in progress | (78,526) | 32,423 | (26,029) |
Unbilled work in progress | (11,579) | (4,515) | (12,706) |
Accrued salaries and bonuses | 228,546 | 11,351 | 18,868 |
Accounts payable and accrued expenses and other | 535 | (8,709) | 11,542 |
Deferred income | (991) | 1,058 | 6,661 |
Income taxes payable/(receivable) | 73,227 | (12,443) | (2,375) |
Net cash provided by operating activities | 579,837 | 287,669 | 224,274 |
Cash flows from investing activities: | |||
Purchases of investment securities | (391,555) | (350,679) | (146,969) |
Sales or maturities of investment securities | 318,425 | 340,624 | 231,460 |
Acquisition of business, net of cash acquired | (12,470) | (2,197) | (71,407) |
Receivables from affiliates | 0 | (170) | 101 |
Purchase of property and equipment, net | (14,148) | (20,722) | (6,726) |
Net cash provided by/(used in) investing activities | (99,748) | (33,144) | 6,459 |
Cash flows from financing activities: | |||
Dividends paid | (92,006) | (80,655) | (66,928) |
Settlement of forward purchase contract | 0 | 0 | (93,500) |
Share repurchases | (102,224) | (29,641) | (69,563) |
Payments to settle employee tax obligations on share-based awards | (17,810) | (31,477) | (1,947) |
Proceeds from issuance of Class A shares | 189,060 | 0 | 0 |
Earnouts paid | 0 | 0 | (1,923) |
Loans payable to former shareholders redeemed | (575) | (654) | (989) |
Repayments of loans to non-affiliates | (3,601) | (10,081) | (1,475) |
Other financing activities | 333 | 369 | 187 |
Net cash (used in) financing activities | (26,823) | (152,139) | (236,138) |
Effects of exchange rate changes on cash and cash equivalents | 13,212 | (7,755) | (8,703) |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 466,478 | 94,631 | (14,108) |
Cash, cash equivalents and restricted cash – beginning of period | 380,746 | 286,115 | 300,223 |
Cash, cash equivalents and restricted cash – end of period | 847,224 | 380,746 | 286,115 |
Supplemental disclosures of non-cash activities: | |||
Shares issued via vesting of liability classified awards | 7,511 | 6,555 | 5,005 |
Shares issued as consideration for acquisitions | 1,050 | 0 | 1,744 |
Cash acquired through acquisitions | 88 | 15,755 | 16,141 |
Cash paid during the year: | |||
Interest | 989 | 1,049 | 977 |
Taxes, net of refunds | $ 44,202 | $ 73,881 | $ 80,841 |
BACKGROUND
BACKGROUND | 12 Months Ended |
Mar. 31, 2021 | |
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."), is a wholly owned direct subsidiary of HL, Inc. HL Capital, Inc. is registered as a broker-dealer under Section 15(b) of the Securities Exchange Act of 1934 and a member of 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. • HL Finance, LLC ("HL Finance"), a syndicated leveraged finance platform established to arrange senior secured leveraged loans for financial sponsor-backed, privately-held, and public corporate entities. HL Finance acts as an arranger on syndicated loan transactions and has entered into an agreement with an unaffiliated third party investor that may provide commitments with respect to certain syndicated loans arranged by HL Finance. • 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. Expenses related to the IPO recorded in the consolidated statements of comprehensive income include the following: • $0, $14,289 and $14,045 of compensation expenses associated with the amortization of restricted stock granted in connection with the IPO for the years ended March 31, 2021, 2020, and 2019, 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 • $0, $10,035 and $10,273 of compensation expenses associated with the accrual of certain deferred cash payments granted in connection with the IPO for the years ended March 31, 2021, 2020, and 2019, 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. 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. 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. In June 2019, the Company exercised its option to acquire the remaining 51% of the shares of Lara (Italy Holdco) Limited ("Lara"). Lara's only operating subsidiary, Houlihan Lokey S.p.A., is an Italian-based company that provides corporate finance advisory services. In November 2019, the Company completed the acquisition of Fidentiis Capital, an independent advisory business providing independent corporate finance advisory services relating to mergers and acquisitions, capital raising, and financing. In December 2019, the Company completed the acquisition of Freeman & Co., an independent advisory business providing mergers and acquisitions advisory, capital raising, and other investment banking advisory services for the financial services sector. In August 2020, the Company completed the acquisition of MVP Capital, LLC ("MVP"), an independent advisory firm that provides a range of financial advisory services to clients in the technology, media, and telecommunications sectors. 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), Boston, Dallas, Houston, Miami, and Atlanta as well as foreign offices in London, Paris, Frankfurt, Milan, 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 ("CF") 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 CF revenues consists of fees paid upon the successful completion of the transaction or engagement ("Completion Fees"). A CF 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 ("FR") 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. As part of these engagements, our FR 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; dispute resolution and expert testimony; and procuring debtor-in-possession financing. Although atypical, FR transactions can fail to be completed for many reasons that are outside of our control. In these instances, our fees are generally limited to the Retainer Fees and/or Progress Fees. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), and include all information and footnotes required for consolidated financial statement presentation, and include all disclosures required under GAAP for annual financial statements. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net income, shareholders' equity or cash flows as previously reported. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries where it has a controlling financial interest. All intercompany balances and transactions have been eliminated. 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. The Company’s equity method investments include variable interest entities (VIEs), which are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest, and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary, and is generally the entity with (i) the power to direct the activities that most significantly impact the VIE’s economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Our involvement with VIEs arises from our variable interest related to a recently sponsored special purpose acquisition company. The Company's exposure to loss from such VIEs is not material to our operating results and financial position. 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, but are not limited to: the allowance for credit losses; 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. Revenues Revenues consist of fee revenues from advisory services and reimbursed costs incurred in fulfilling the contracts. Revenues reflect fees generated from our CF, FR, and FVA business segments. The Company generates revenues from contractual advisory services and reimbursed costs incurred in fulfilling the contracts for such services. Revenues for all three business segments (CF, FR, and FVA) are recognized upon satisfaction of the performance obligation, which 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. 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 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. Revenues from CF engagements primarily consist of fees generated in connection with advisory services related to corporate finance, mergers and acquisitions, and capital markets offerings. 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. CF 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. Revenues from FR 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 considered variable and constrained until the related transaction has been effectively closed 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 FVA engagements primarily consist of fees generated in connection with valuation and diligence services and rendering fairness, solvency and other 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 consist 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 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 types of operating expenses include: Travel, meals, and entertainment; Rent; Depreciation and amortization; Information technology and communications; Professional fees; and Other operating expenses. 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 fiscal 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, 2021, we had two foreign currency forward contracts between the euro and pound sterling with an aggregate notional value of $7.1 million. The fair value of these foreign currency forward contracts represented a (loss) included in Other operating expenses of $38 during the year ended March 31, 2021. As of March 31, 2020, we had no foreign currency forward contracts. Fair Value Measurements 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 upon the best information available, and may incorporate management's own assumptions or involve a significant degree of judgment. The following methods and assumptions were used by the Company in estimating fair value disclosures: • 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. 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 lowest level of input that is 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 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 progress, Accounts payable and accrued expenses, and Deferred income 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-affiliate, approximates fair value due to the variable interest rate borne by those instruments. 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. As of March 31, 2021 and 2020, the Company had cash balances with banks in excess of insured limits. The Company believes it is not exposed to any significant credit risk with respect to Cash and cash equivalents. The following table provides a reconciliation of Cash and 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, 2021 March 31, 2020 Cash and cash equivalents $ 846,851 $ 380,373 Restricted cash (1) 373 373 Total cash, cash equivalents, and restricted cash $ 847,224 $ 380,746 (1) Restricted cash as of March 31, 2021 and March 31, 2020 consisted of a cash secured letter of credit issued for our Frankfurt office. Investment Securities Investment securities consist primarily of corporate debt and U.S. treasury securities with original maturities over 90 days. The Company classifies its corporate debt and U.S. treasury securities as 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 expenses in the accompanying Consolidated Statements of Comprehensive Income. Allowance for Credit Losses The allowance for credit losses on accounts receivable and unbilled work in progress reflects management’s best estimate of expected losses using the Company's internal current expected credit losses model. This model analyzes expected losses based on relevant information about historical experience, current conditions, and reasonable and supportable forecasts that could potentially affect the collectibility of the reported amounts. This is recorded through provision for bad debts, which is included in Other operating expenses in the accompanying Consolidated Statements of Comprehensive Income. Amounts deemed to be uncollectible are written off against the allowance for credit losses. 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 recognized on a straight-line basis over the estimated useful lives of the respective assets. Leasehold improvements are recorded as prepaid assets and included within fixed lease payments. See Note 16 for additional information. Income Taxes The Company files a consolidated federal income tax return, 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. 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. On March 27, 2020 the United States enacted into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act and on December 27, 2020, the President signed into law the Coronavirus Response and Relief Supplemental Appropriations Act. These laws are meant to address the economic uncertainty as a result of the coronavirus pandemic. The Company has completed its evaluation of the provisions of these laws, which resulted in no material impacts on its income tax provision. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842). We adopted the standard effective April 1, 2019, using the modified retrospective approach applied as of the beginning of the period of adoption. The Company elected to utilize transition guidance within the new standard that permits us to (i) continue to report under ASC 840 guidance for comparative periods consistent with previously issued financial statements; and (ii) carryforward our prior conclusions about lease identification, classification, and initial direct costs. The most significant impact of this adoption relates to the recognition of right-of-use ("ROU") assets and liabilities for all leases classified operating leases when the Company is the lessee in the arrangement. Currently, the Company does not have any lessor arrangements; therefore, adoption of the standard did not impact our accounting. We assess whether an arrangement is or contains a lease at the inception of the agreement. Right-of-use ("ROU") assets represent our right to use underlying assets for the lease term and lease liabilities represent our obligation to make lease payments arising from leases. ROU assets and lease liabilities are recognized at the commencement date based on the present value of future lease payments over the lease terms utilizing the discount rate implicit in the leases. If the discount rate implicit in the leases is not readily determinable, the present value of future lease payments is calculated utilizing the Company’s incremental borrowing rate, which approximates the interest that the Company would have to pay on a secured loan. The Company elected to utilize a portfolio approach and applies the rates to a portfolio of leases with similar terms and economic environments. The terms of our leases used to determine the ROU asset and lease liability account for options to extend when it is reasonably certain that we will exercise those options, if applicable. ROU assets and lease liabilities are subject to adjustment in the event of modification to lease terms, changes in probability that an option to extend or terminate a lease would be exercised and other factors. In addition, ROU assets are periodically reviewed for impairment. Lease expense is recognized on a straight-line basis over the lease terms. Lease expense includes amortization of the ROU assets and accretion of the lease liabilities. Amortization of ROU assets is calculated as the periodic lease cost less accretion of the lease liability. The amortized period for ROU assets is limited to the expected lease term. The Company has elected a practical expedient to combine the lease and non-lease components into a single lease component. The Company also elected the short-term lease measurement and recognition exemption and does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less. 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. Goodwill is reviewed annually for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with Accounting Standards Update ("ASU") No. 2011-08, Testing Goodwill for Impairment , which permits management to make a qualitative assessment of whether it is more likely than not that one of its reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If management concludes that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then management would not be required to perform the two-step impairment test for that reporting unit. If the assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying value, management must test further for impairment utilizing a two-step process. Step 1 compares the estimated fair value of the reporting unit with its carrying value, including goodwill. If the carrying value of the reporting unit exceeds the estimated fair value, an impairment exists and is measured in Step 2 as the excess of the recorded amount of goodwill over the implied fair value of goodwill resulting from the valuation of the reporting unit. 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, 2021, 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, 2021, 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, 2021, 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 Effective April 1, 2020, we adopted ASU 2016-13 Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments, and all related amendments, under a modified retrospective approach. Upon adoption, a cumulative transition adjustment was recorded, which reduced retained earnings by $(924). The tax impact of this adjustment increased retained earnings by $242, resulting in a net decrease to retained earnings of $(682) as of April 1, 2020. The impact of this pronouncement had an immaterial impact on our Net income for the year ended March 31, 2021. The following table provides a reconciliation of the cumulative transition adjustment pertaining to the adoption of the credit loss guidance reported within the Consolidated Balance Sheets. March 31, 2020 Transition Adjustment April 1, 2020 Accounts receivable, net of allowance for credit losses $ 80,912 $ (599) $ 80,313 Unbilled work in progress, net of allowance for credit losses 39,821 (232) 39,589 Other assets 38,890 (93) 38,797 Deferred income taxes, net 5,843 242 6,085 Retained earnings $ 377,471 $ (682) $ 376,789 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | Revenue Recognition Disaggregation of Revenues The Company has disclosed disaggregated revenues based on its business segment and geographical area, which provides a reasonable representation of how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See Note 18 for additional information. 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 revenues for the corresponding contract. 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: April 1, 2020 Increase/(decrease) March 31, 2021 Receivables, net (1) $ 73,720 $ 30,267 $ 103,987 Unbilled work in progress, net of allowance for credit losses 39,821 78,294 118,115 Contract Assets (1) 7,192 (2,770) 4,422 Contract Liabilities (2) 26,780 1,088 27,868 (1) Included within Accounts receivable, net of allowance for credit losses in the Consolidated Balance Sheets. (2) Included within Deferred income in the Consolidated Balance Sheets. During the years ended March 31, 2021 and 2020, $17.5 million and $19.9 million of revenues, respectively, were recognized that were included in the Deferred income balance at the beginning of the period. 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, 2021. |
RELATED_PARTY TRANSACTIONS
RELATED‑PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED‑PARTY TRANSACTIONS | Related Party Transactions The Company provides financial advisory services to its affiliates and certain other related parties, and received fees for these services totaling approximately $2,875, $828, and $8,819 during the years ended March 31, 2021, 2020, and 2019, respectively. The Company provided certain management and administrative services for the Company's unconsolidated entities and received fees for these services. The Company received no such fees during the year ended March 31, 2021 and fees of $126 and $482 during the years ended March 31, 2020 and 2019, respectively. Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $16,657 and $17,857 as of March 31, 2021 and 2020, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | Fair Value Measurements 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, 2021 Level I Level II Level III Total Corporate debt securities $ — $ 178,659 $ — $ 178,659 U.S. treasury securities — 24,083 — 24,083 Total asset measured at fair value $ — $ 202,742 $ — $ 202,742 March 31, 2020 Level I Level II Level III Total Corporate debt securities $ — $ 43,027 $ — $ 43,027 U.S. treasury securities — 92,362 — 92,362 Total asset measured at fair value $ — $ 135,389 $ — $ 135,389 The Company had no transfers between fair value levels during the years ended March 31, 2021 and March 31, 2020. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | Investment Securities The amortized cost, gross unrealized gains (losses), and fair value of investment securities were as follows: March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value (1) Corporate debt securities $ 178,384 $ 389 $ (114) $ 178,659 U.S. Treasury Securities 23,761 322 — 24,083 Total securities with unrealized gains/(losses) $ 202,145 $ 711 $ (114) $ 202,742 (1) Included within Investment Securities in the Consolidated Balance Sheets. March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 43,166 $ 210 $ (349) $ 43,027 U.S. Treasury Securities 91,722 691 (51) 92,362 Total securities with unrealized gains/(losses) $ 134,888 $ 901 $ (400) $ 135,389 Scheduled maturities of the debt securities held by the Company included within the investment securities portfolio were as follows: March 31, 2021 March 31, 2020 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 172,747 $ 172,798 $ 105,349 $ 105,302 Due within years two through five 29,398 29,944 29,539 30,087 Total debt within the investment securities portfolio $ 202,145 $ 202,742 $ 134,888 $ 135,389 |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | Allowance for Credit Losses The following table presents information about the Company's allowance for credit losses: March 31, 2021 March 31, 2020 Beginning balance $ 6,889 $ 5,596 Transition adjustment as of April 1, 2020 831 — Provision for bad debt, net 7,290 4,873 Recovery/(write-off) of uncollectible accounts, net (3,228) (3,580) Ending balance $ 11,782 $ 6,889 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Property and Equipment Property and equipment, net of accumulated depreciation consists of the following: Useful Lives March 31, 2021 March 31, 2020 Equipment 5 years $ 8,795 $ 8,788 Furniture and fixtures 5 years 21,493 20,942 Leasehold improvements 10 years 52,561 41,643 Computers and software 3 years 10,772 17,941 Other Various 7,056 1,113 Total cost 100,677 90,427 Less: accumulated depreciation (54,307) (48,055) Total net book value $ 46,370 $ 42,372 Additions to property and equipment during the years ended March 31, 2021 and March 31, 2020 were primarily related to leasehold improvement costs incurred. Depreciation expense of $11,068, $9,842, and $8,434 was recognized during the years ended March 31, 2021, 2020, and 2019, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | Goodwill and Other Intangible Assets The following table provides a reconciliation of Goodwill and other intangibles, net reported on the Consolidated Balance Sheets. Useful Lives March 31, 2021 March 31, 2020 Goodwill Indefinite $ 671,065 $ 618,455 Tradename-Houlihan Lokey Indefinite 192,210 192,210 Other intangible assets Varies 6,809 10,732 Total cost 870,084 821,397 Less: accumulated amortization (3,863) (8,553) Goodwill and other intangibles, net $ 866,221 $ 812,844 Goodwill attributable to the Co mpany’s business segments is as follows: April 1, 2020 Change (1) March 31, 2021 Corporate Finance $ 363,925 $ 52,610 $ 416,535 Financial Restructuring 162,815 — 162,815 Financial and Valuation Advisory 91,715 — 91,715 Goodwill $ 618,455 $ 52,610 $ 671,065 (1) Changes pertain to the acquisitions discussed in Note 1 and foreign currency translation adjustments. Amortization expense of approximately $4,161, $7,449, and $6,041 was recognized for the years ended March 31, 2021, 2020, and 2019, respectively. The estimated future amortization for finite-lived intangible assets for each of the next five years are as follows: Year Ended March 31, 2022 $ 2,207 2023 325 2024 7 2025 7 2026 7 |
LOANS PAYABLE
LOANS PAYABLE | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | Loans Payable In August 2015, the Company entered into a revolving line of credit with Bank of America, N.A. (the "2015 Line of Credit"), which allowed 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 2015 Line of Credit to August 18, 2019, and, on August 15, 2019, the parties further extended the maturity date of the 2015 Line of Credit to September 18, 2019. On August 23, 2019, the Company refinanced the 2015 Line of Credit by entering into a new syndicated revolving line of credit with Bank of America, N.A. and certain other financial institutions party thereto (the "2019 Line of Credit"), which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million) and matures on August 23, 2022 (or if such date is not a business day, the immediately preceding business day). The agreement governing the 2019 Line of Credit 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, 2021 and 2020, no principal was outstanding under the 2019 Line of Credit. Prior to the IPO, Fram Holdings, Inc., a Delaware corporation and, prior to our IPO, our indirect parent company, maintained certain loans payable to former shareholders consisting of unsecured notes payable, which were transferred to the Company in conjunction with the IPO. The average interest rate on the individual notes was 1.49%, 2.94%, and 3.92% for the years ended March 31, 2021, 2020, and 2019, respectively, and the maturity dates range from 2020 to 2027. The Company incurred interest expense on these notes of $21, $63 and $96 for the years ended March 31, 2021, 2020, and 2019, respectively. In November 2015, the Company acquired the investment banking operations of Leonardo & Co. NV ("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 million payable on November 16, 2040. The loan had an annual interest rate of 1.50%. In each of January 2017, December 2017, December 2018, and December 2019, we paid a portion of this loan in the amount of EUR 2.9 million. During the three months ended December 31, 2020, the Company completed its final scheduled principal payment, extinguishing the liability. The Company incurred interest expense on this loan of $30, $76, and $131, during the years ended March 31, 2021, 2020, and 2019, respectively. As described in Note 1, in June 2019, the Company acquired the remaining 51% of Lara, which is the holding company for Leonardo's investment banking operations in Italy. During the quarter ended September 30, 2019, the Company completed the redemption of the loans that were assumed upon the acquisition of the remaining 51% of Lara and that had been included in the Loan payable to non-affiliates on our Consolidated Balance Sheets. An acquisition made in January 2017 included non-contingent consideration with a carrying value of $0 and $999 as of March 31, 2021 and March 31, 2020, 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 Sheets. Under certain circumstances, the notes may be exchanged for Company Class B common 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 $288, $327, and $325 for the years ended March 31, 2021, 2020, and 2019, respectively. 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. This note was subsequently assigned by the seller to the former BearTooth principals (who became employees of the Company), and, under certain circumstances, is convertible into Company Class B common stock after the fifth anniversary of the closing of the transaction. The Company incurred interest expense on this note of $105, $105, and $88 for the years ended March 31, 2021, 2020, and 2019, respectively. In December 2019, the Company acquired Freeman & Co. Total consideration included an unsecured note of $4.0 million bearing interest at an annual rate of 2.75% and payable on December 16, 2049. The note issued by the Company to the seller was distributed to the former principals of Freeman & Co. (who became employees of the Company). Under certain circumstances, the note may be exchanged by each principal for Company stock over a four-year period in equal annual installments starting in December, 2020. The Company incurred interest expense on this note of $103 and $32 for the years ended March 31, 2021 and 2020, respectively. |
OTHER COMPREHENSIVE INCOME AND
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | Accumulated Other Comprehensive (Loss) Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $22,932, $(12,814), and $(16,338) for the years ended March 31, 2021, 2020, and 2019, respectively. We do not expect the change in foreign currency translation to have a material impact on our operating results and financial position. Accumulated other comprehensive (loss) as of March 31, 2021, 2020, and 2019, was comprised of the following: Total Balance, April 1, 2018 $ (13,956) Foreign currency translation adjustments (16,338) Balance, March 31, 2019 (30,294) Foreign currency translation adjustments (12,814) Balance, March 31, 2020 (43,108) Foreign currency translation adjustments 22,932 Balance, March 31, 2021 $ (20,176) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income Taxes The Company’s provision for income taxes was $96,457, $51,854, and $65,214, for the years ended March 31, 2021, 2020, and 2019, respectively. This represents effective tax rates of 23.6%, 22.0%, and 29.1% for the years ended March 31, 2021, 2020, and 2019, respectively. The provision (benefit) for income taxes on operations for the years ended March 31, 2021, 2020, and 2019 is comprised of the following approximate values: Year Ended March 31, 2021 2020 2019 Current: Federal $ 71,832 $ 39,796 $ 47,101 State and local 27,230 10,217 22,094 Foreign 18,632 11,495 6,706 Subtotal 117,694 61,508 75,901 Deferred: Federal (16,244) (6,317) (10,665) State and local (4,543) (2,104) (1,997) Foreign (450) (1,233) 1,975 Subtotal (21,237) (9,654) (10,687) Total $ 96,457 $ 51,854 $ 65,214 The provision for income taxes on operations for the years ended March 31, 2021, 2020, and 2019 is reconciled to the income taxes computed at the statutory federal income tax rate (computed by applying the federal corporate rate of 21% to consolidated operating income before provision for income taxes) as follows: Year Ended March 31, 2021 2020 2019 Federal income tax provision computed at statutory rate $ 85,937 21.0 % $ 49,486 21.0 % $ 47,107 21.0 % State and local taxes, net of federal tax effect 18,877 4.6 % 10,819 4.6 % 12,944 5.8 % Tax impact from foreign operations (1,036) (0.2) % (1,083) (0.5) % (2,098) (0.9) % Nondeductible expenses 6,004 1.5 % 4,721 2.0 % 3,797 1.7 % Stock compensation (13,349) (3.3) % (7,269) (3.1) % (8) — % Uncertain tax positions, true-up items, and other 24 — % (4,820) (2.0) % 2,159 0.9 % Enactment of the Tax Act — — % — — % 1,313 0.6 % Total $ 96,457 23.6 % $ 51,854 22.0 % $ 65,214 29.1 % 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 as of March 31, 2021 and March 31, 2020, comprise the following: March 31, 2021 March 31, 2020 Deferred tax assets: Deferred compensation expense/accrued bonus $ 75,140 $ 53,397 Allowance for credit losses 1,305 1,078 Accounts receivable and work in progress 2,084 — US foreign tax credits 2,475 2,478 Operating lease liabilities 31,499 27,977 Other, net 15,686 15,497 Total deferred tax assets 128,189 100,427 Deferred tax asset valuation allowance (9,783) (11,097) Total deferred tax assets 118,406 89,330 Deferred tax liabilities: Intangibles (49,913) (49,166) Accounts receivable and work in progress — (561) Operating lease right-of-use assets (27,856) (25,131) Other, net (12,358) (8,629) Total deferred tax liabilities (90,127) (83,487) Net deferred tax assets/(liabilities) $ 28,279 $ 5,843 The Company has various foreign net operating losses totaling $5,616 that do not expire. 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, 2021 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 $2,475 and $2,478 against these assets for March 31, 2021 and March 31, 2020, 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. These foreign tax credits will expire in various years through 2030. 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, 2021 and March 31, 2020 of $7,308 and $8,619, respectively. The change in the total valuation allowance was a decrease of $1,314 and a decrease of $272 during the years ended March 31, 2021 and March 31, 2020, respectively. The Company has historically considered the undistributed earnings of its foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes were provided on such earnings prior to the fourth quarter of fiscal 2021. In the fourth quarter of fiscal 2021, we identified $39,000 of cash in certain foreign jurisdictions in excess of near-term working capital needs. This amount may be repatriated in a future period, and therefore, could no longer be considered indefinitely reinvested. With the exception of this potential distribution of historic earnings, the assertion that all undistributed earnings of foreign subsidiaries should be considered indefinitely reinvested remains. Deferred taxes recorded in the fourth quarter of 2021 for the potential distribution were not significant. We continue to expect that the remaining balance of our undistributed foreign earnings will be indefinitely reinvested. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. Determination of the amount of unrecognized deferred tax liability on these unremitted earning is not practicable. As of March 31, 2021 and March 31, 2020 the Company had recorded liabilities for interest and penalties related to uncertain tax positions in the amounts of $1,984 and $1,845, net of any future tax benefit of such interest, respectively. Unrecognized tax positions totaled $14,666 and $9,947 as of March 31, 2021 and March 31, 2020, 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 as of March 31, 2021 and March 31, 2020 is as follows: March 31, 2021 March 31, 2020 Unrecognized tax position at the beginning of the year $ 9,947 $ 4,960 Increase/(decrease) related to prior year tax positions 2,979 (230) Increases related to tax positions taken in the current year 1,740 5,217 Unrecognized tax position at the end of the year $ 14,666 $ 9,947 The Company believes that it is reasonably possible that a decrease of up to $1.3 million in gross unrecognized income tax benefits for federal and state items may be necessary within the next 12 months. For the remaining uncertain income tax positions, it is difficult at this time to estimate the timing of the resolution. In the fourth quarter of fiscal 2021, the statute of limitations on one of our filing state’s income tax audit years March 31, 2016 and March 31, 2017 lapsed, resulting in the release of certain reserves totaling $1.8 million during fiscal 2021. 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, 2020, all of the federal income tax returns filed since 2018 by the Company are still subject to adjustment upon audit. The Company also files combined and separate income tax returns in many states, which are also open to adjustment. The Company is currently under New York City audit for the years ended March 31, 2016, March 31, 2017, and March 31, 2018. Additionally, ORIX USA, is under both New York State and New York City audit for the year ended March 31, 2016. |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | Earnings Per Share The calculations of basic and diluted earnings per share attributable to holders of shares of common stock are presented below. Year Ended March 31, 2021 2020 2019 Numerator: Net income attributable to holders of shares of common stock—basic $ 312,771 $ 183,793 $ 159,106 Net income attributable to holders of shares of common stock—diluted $ 312,771 $ 183,793 $ 159,106 Denominator: Weighted average shares of common stock outstanding—basic 65,785,042 62,152,870 62,213,414 Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method 2,886,206 3,572,646 3,632,718 Weighted average shares of common stock outstanding—diluted 68,671,248 65,725,516 65,846,132 Basic earnings per share $ 4.75 $ 2.96 $ 2.56 Diluted earnings per share $ 4.55 $ 2.80 $ 2.42 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EMPLOYEE BENEFIT PLANS | Employee Benefit Plans 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 $4,519, $3,751, and $2,765 to these plans during the years ended March 31, 2021, 2020, and 2019, respectively. Share-Based Incentive Plans Following the IPO, additional awards of restricted shares and restricted stock units 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 48,716 restricted shares of Class A common stock were granted under the 2016 Incentive Plan to (i) two independent directors in August 2015 at $21 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, (vi) four independent directors in the first quarter of fiscal 2020 at $47.22 per share, (vii) one independent director in the third quarter of fiscal 2020 at $47.21 per share, (viii) four independent directors in the first quarter of fiscal 2021 at $60.60 per share, and (ix) two independent directors in the third quarter of fiscal 2021 at $63.01 per share. An excess tax benefit of $13,349 and $7,269 was recognized during the years ended March 31, 2021 and 2020, respectively, as a component of the provision for income taxes and an operating activity on the Consolidated Statements of Cash Flows. The Company recorded cash outflows of $(17,810) , $(31,477), and $(1,947) related to the settlement of share-based awards in satisfaction of withholding tax requirements in financing activities on the Consolidated Statements of Cash Flows for the years ended March 31, 2021, 2020, and 2019, respectively. 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 liabilities 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 that relate to the Company's 2006 Incentive Award Plan (the "2006 Incentive Plan") and the 2016 Incentive Plan during the years ended March 31, 2021, 2020, and 2019, is as follows: Unvested share awards Shares Weighted average grant date fair value Balance, April 1, 2018 2,854,893 $ 26.39 Granted 1,069,436 49.32 Vested (76,702) 48.78 Forfeited (83,643) 33.91 Balance, March 31, 2019 3,763,984 32.29 Granted 1,368,079 47.04 Vested (1,496,643) 29.30 Forfeited (96,373) 38.63 Balance, March 31, 2020 3,539,047 39.13 Granted 1,044,741 60.60 Vested (1,770,294) 32.36 Shares repurchased/forfeited (68,889) 50.87 Balance, March 31, 2021 2,744,605 $ 51.37 Activity in liability classified share awards during the years ended March 31, 2021, 2020, and 2019 is as follows: Awards settleable in shares Fair value Balance, April 1, 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, March 31, 2019 21,676 Offer to grant 6,410 Share price determined-converted to cash payments (100) Share price determined-transferred to equity grants (1) (6,457) Forfeited (540) Balance, March 31, 2020 20,989 Offer to grant 5,189 Share price determined-converted to cash payments (249) Share price determined-transferred to equity grants (1) (7,223) Forfeited (1,756) Balance, March 31, 2021 $ 16,950 (1) 121,075, 134,370, and 96,778 shares for the years ended March 31, 2021, 2020, and 2019, respectively. Compensation expenses for the Company associated with both equity and liability classified awards totaled $62,421, $64,345, and $56,561, for the years ended March 31, 2021, 2020, and 2019, respectively. As of March 31, 2021 and March 31, 2020 there was $92,483 and $80,648, respectively, of total unrecognized compensation cost related to unvested share awards granted under both the 2006 Incentive Plan and 2016 Incentive Plan. These costs are recognized over a weighted average period of 2.0 years and 1.9 years, as of March 31, 2021 and March 31, 2020, 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 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. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Stockholders' Equity There are 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. On May 30, 2019, pursuant to a registered underwritten public offering, ORIX USA sold 3,000,000 shares of our Class A common stock to the public at a price of $45.80. On August 1, 2019, pursuant to a registered underwritten public offering, ORIX USA sold its remaining ownership of 3,377,935 shares of our Class A common stock to the public at a price of $45.62. On May 20, 2020, the Company completed an underwritten public offering of 3,000,000 shares of its Class A common stock. The offering generated net proceeds for the Company of approximately $188.7 million after deducting the underwriting discount and estimated offering expenses payable by us. Class A common stock During the year ended March 31, 2021, the Company issued 8,751 shares to non-employee directors, and 3,650,053 shares were converted from Class B to Class A. During the year ended March 31, 2020, the Company issued 9,145 shares to non-employee directors, and 8,639,873 shares were converted from Class B to Class A. As of March 31, 2021, there were 51,199,967 Class A shares held by the public and 45,475 Class A shares held by non-employee directors. As of March 31, 2020, there were 46,141,909 Class A shares held by the public, 36,724 Class A shares held by non-employee directors. Class B common stock As of March 31, 2021, there were 16,951,696 Class B shares held by the HL Voting Trust. As of March 31, 2020, there were 19,345,277 Class B shares held by the HL Voting Trust. Dividends Previously declared dividends related to unvested shares of $6,744 and $8,780 were unpaid as of March 31, 2021 and 2020, respectively. 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. Share repurchases In July 2018, the board of directors authorized the repurchase of up to $100 million of the Company's common stock. In July 2020, the board of directors authorized a new share repurchase program to replace the aforementioned July 2018, $100 million repurchase authority. Under the July 2020 share repurchase program, the Company was authorized to acquire an aggregate amount of up to $125 million of the Company's Class A common stock and Class B common stock. In January 2021, the board of directors authorized a replacement to the existing July 2020 share repurchase program to a new aggregate amount of up to $200 million of the Company's Class A common stock and Class B common stock. During the years ended March 31, 2021, 2020, and 2019, the Company repurchased 286,730, 654,994, and 36,958 shares, respectively, of Class B common stock, to satisfy $17,810, $31,451, and $1,700 of required withholding taxes in connection with the vesting of restricted awards, respectively. During the years ended March 31, 2021, 2020, and 2019, the Company repurchased an additional 1,591,995, 671,187, and 1,481,114 shares of its outstanding common stock, respectively, at a weighted average price of $64.18, $44.13, and $46.71 per share, excluding commissions, for an aggregate purchase price of $102,173, $29,621 and $69,180, respectively. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | Leases Lessee Arrangements Operating Leases We lease real estate and equipment used in operations from third parties. As of March 31, 2021, the remaining term of our operating leases ranged from 1 to 16 years with various automatic extensions. The following table outlines the maturity of our existing operating lease liabilities on a fiscal year-end basis as of March 31, 2021. Maturity of Operating Leases Operating Leases 2022 $ 29,118 2023 25,419 2024 20,089 2025 21,130 2026 19,964 Thereafter 87,597 Total 203,317 Less: present value discount (28,801) Operating lease liabilities $ 174,516 Lease costs March 31, 2021 March 31, 2020 Operating lease expense $ 28,924 $ 28,489 Variable lease expense (1) 10,311 16,027 Short-term lease expense 203 370 Less: Sublease income (205) (193) Total lease costs $ 39,233 $ 44,693 (1) Primarily consists of payments for property taxes, common area maintenance and usage based operating costs. Weighted-average details March 31, 2021 March 31, 2020 Weighted-average remaining lease term (years) 9 9 Weighted-average discount rate 3.8 % 4.0 % Supplemental cash flow information related to leases: March 31, 2021 March 31, 2020 Operating cash flows: Cash paid for amounts included in the measurement of Operating lease liabilities $ 32,152 $ 25,558 Non-cash activity: Operating lease right-of-use assets obtained in exchange of operating lease liabilities $ 41,089 $ 13,714 Change in Operating lease right-of-use assets due to remeasurement (1,208) 5,883 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2021 | |
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 2019 Line of Credit. The scheduled aggregate repayments of our Loans payable to former shareholders, Other liabilities, and the Loan payable to non-affiliates in the accompanying Consolidated Balance Sheets on a fiscal year-end basis as of March 31, 2021 are as follows: 2022 $ 1,943 2023 17,663 2024 16,829 2025 6,532 2026 — 2027 and thereafter 12,897 Total $ 55,864 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, 2021 or March 31, 2020. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 12 Months Ended |
Mar. 31, 2021 | |
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 that 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 consists of segment revenues, less (1) direct expenses including compensation, 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 capital, 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, 2021 2020 2019 Revenues by segment: Corporate Finance $ 802,853 $ 646,788 $ 607,333 Financial Restructuring 534,747 352,517 317,774 Financial and Valuation Advisory 187,852 160,063 159,278 Revenues $ 1,525,452 $ 1,159,368 $ 1,084,385 Segment profit (1) Corporate Finance $ 250,513 $ 179,660 $ 193,603 Financial Restructuring 224,215 107,714 83,607 Financial and Valuation Advisory 46,642 35,172 28,776 Total segment profit 521,370 322,546 305,986 Corporate expenses (2) 113,213 92,945 86,889 Other (income)/expense, net (1,071) (6,046) (5,223) Income before provision for income taxes $ 409,228 $ 235,647 $ 224,320 (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, and human capital. March 31, 2021 March 31, 2020 March 31, 2019 Assets by segment Corporate Finance $ 575,241 $ 403,147 $ 403,928 Financial Restructuring 181,239 186,418 184,364 Financial and Valuation Advisory 136,761 127,440 127,744 Total segment assets 893,241 717,005 716,036 Corporate assets 1,532,826 959,998 709,876 Total assets $ 2,426,067 $ 1,677,003 $ 1,425,912 Year Ended March 31, 2021 2020 2019 Income before provision for income taxes by geography United States $ 321,639 $ 184,883 $ 176,850 International 87,589 50,764 47,470 Income before provision for income taxes $ 409,228 $ 235,647 $ 224,320 Year Ended March 31, 2021 2020 2019 Revenues by geography: United States $ 1,192,720 $ 975,075 $ 878,840 International 332,732 184,293 205,545 Revenues $ 1,525,452 $ 1,159,368 $ 1,084,385 March 31, 2021 March 31, 2020 March 31, 2019 Assets by geography United States $ 1,837,332 $ 1,135,871 $ 1,021,975 International 588,735 541,132 403,937 Total assets $ 2,426,067 $ 1,677,003 $ 1,425,912 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Subsequent EventsSubsequent to the end of fiscal March 31, 2021, our Board of Directors declared a quarterly cash dividend of $0.43 per share of common stock, payable on June 15, 2021 to shareholders of record as of the close of business on June 2, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), and include all information and footnotes required for consolidated 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 intercompany balances and transactions have been eliminated. 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, but are not limited to: the allowance for credit losses; 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 | Revenues Revenues consist of fee revenues from advisory services and reimbursed costs incurred in fulfilling the contracts. Revenues reflect fees generated from our CF, FR, and FVA business segments. |
Operating Expenses | Operating ExpensesThe 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). |
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 fiscal year. Resulting translation adjustments are reported as a separate component of Accumulated other comprehensive loss, net of applicable taxes. |
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. As of March 31, 2021 and 2020, the Company had cash balances with banks in excess of insured limits. The Company believes it is not exposed to any significant credit risk with respect to Cash and cash equivalents. The following table provides a reconciliation of Cash and 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, 2021 March 31, 2020 Cash and cash equivalents $ 846,851 $ 380,373 Restricted cash (1) 373 373 Total cash, cash equivalents, and restricted cash $ 847,224 $ 380,746 (1) Restricted cash as of March 31, 2021 and March 31, 2020 consisted of a cash secured letter of credit issued for our Frankfurt office. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective April 1, 2020, we adopted ASU 2016-13 Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments, and all related amendments, under a modified retrospective approach. Upon adoption, a cumulative transition adjustment was recorded, which reduced retained earnings by $(924). The tax impact of this adjustment increased retained earnings by $242, resulting in a net decrease to retained earnings of $(682) as of April 1, 2020. The impact of this pronouncement had an immaterial impact on our Net income for the year ended March 31, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The Company believes it is not exposed to any significant credit risk with respect to Cash and cash equivalents. The following table provides a reconciliation of Cash and 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, 2021 March 31, 2020 Cash and cash equivalents $ 846,851 $ 380,373 Restricted cash (1) 373 373 Total cash, cash equivalents, and restricted cash $ 847,224 $ 380,746 (1) Restricted cash as of March 31, 2021 and March 31, 2020 consisted of a cash secured letter of credit issued for our Frankfurt office. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides a reconciliation of the cumulative transition adjustment pertaining to the adoption of the credit loss guidance reported within the Consolidated Balance Sheets. March 31, 2020 Transition Adjustment April 1, 2020 Accounts receivable, net of allowance for credit losses $ 80,912 $ (599) $ 80,313 Unbilled work in progress, net of allowance for credit losses 39,821 (232) 39,589 Other assets 38,890 (93) 38,797 Deferred income taxes, net 5,843 242 6,085 Retained earnings $ 377,471 $ (682) $ 376,789 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers: April 1, 2020 Increase/(decrease) March 31, 2021 Receivables, net (1) $ 73,720 $ 30,267 $ 103,987 Unbilled work in progress, net of allowance for credit losses 39,821 78,294 118,115 Contract Assets (1) 7,192 (2,770) 4,422 Contract Liabilities (2) 26,780 1,088 27,868 (1) Included within Accounts receivable, net of allowance for credit losses in the Consolidated Balance Sheets. (2) Included within Deferred income in the Consolidated Balance Sheets. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
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, 2021 Level I Level II Level III Total Corporate debt securities $ — $ 178,659 $ — $ 178,659 U.S. treasury securities — 24,083 — 24,083 Total asset measured at fair value $ — $ 202,742 $ — $ 202,742 March 31, 2020 Level I Level II Level III Total Corporate debt securities $ — $ 43,027 $ — $ 43,027 U.S. treasury securities — 92,362 — 92,362 Total asset measured at fair value $ — $ 135,389 $ — $ 135,389 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Held-to-maturity | The amortized cost, gross unrealized gains (losses), and fair value of investment securities were as follows: March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value (1) Corporate debt securities $ 178,384 $ 389 $ (114) $ 178,659 U.S. Treasury Securities 23,761 322 — 24,083 Total securities with unrealized gains/(losses) $ 202,145 $ 711 $ (114) $ 202,742 (1) Included within Investment Securities in the Consolidated Balance Sheets. March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 43,166 $ 210 $ (349) $ 43,027 U.S. Treasury Securities 91,722 691 (51) 92,362 Total securities with unrealized gains/(losses) $ 134,888 $ 901 $ (400) $ 135,389 |
Investments Classified by Contractual Maturity Date | Scheduled maturities of the debt securities held by the Company included within the investment securities portfolio were as follows: March 31, 2021 March 31, 2020 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 172,747 $ 172,798 $ 105,349 $ 105,302 Due within years two through five 29,398 29,944 29,539 30,087 Total debt within the investment securities portfolio $ 202,145 $ 202,742 $ 134,888 $ 135,389 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Uncollectible Accounts Receivable | March 31, 2021 March 31, 2020 Beginning balance $ 6,889 $ 5,596 Transition adjustment as of April 1, 2020 831 — Provision for bad debt, net 7,290 4,873 Recovery/(write-off) of uncollectible accounts, net (3,228) (3,580) Ending balance $ 11,782 $ 6,889 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net of accumulated depreciation consists of the following: Useful Lives March 31, 2021 March 31, 2020 Equipment 5 years $ 8,795 $ 8,788 Furniture and fixtures 5 years 21,493 20,942 Leasehold improvements 10 years 52,561 41,643 Computers and software 3 years 10,772 17,941 Other Various 7,056 1,113 Total cost 100,677 90,427 Less: accumulated depreciation (54,307) (48,055) Total net book value $ 46,370 $ 42,372 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table provides a reconciliation of Goodwill and other intangibles, net reported on the Consolidated Balance Sheets. Useful Lives March 31, 2021 March 31, 2020 Goodwill Indefinite $ 671,065 $ 618,455 Tradename-Houlihan Lokey Indefinite 192,210 192,210 Other intangible assets Varies 6,809 10,732 Total cost 870,084 821,397 Less: accumulated amortization (3,863) (8,553) Goodwill and other intangibles, net $ 866,221 $ 812,844 |
Schedule of Goodwill by Business Segment | Goodwill attributable to the Co mpany’s business segments is as follows: April 1, 2020 Change (1) March 31, 2021 Corporate Finance $ 363,925 $ 52,610 $ 416,535 Financial Restructuring 162,815 — 162,815 Financial and Valuation Advisory 91,715 — 91,715 Goodwill $ 618,455 $ 52,610 $ 671,065 |
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, 2022 $ 2,207 2023 325 2024 7 2025 7 2026 7 |
OTHER COMPREHENSIVE INCOME AN_2
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive (loss) as of March 31, 2021, 2020, and 2019, was comprised of the following: Total Balance, April 1, 2018 $ (13,956) Foreign currency translation adjustments (16,338) Balance, March 31, 2019 (30,294) Foreign currency translation adjustments (12,814) Balance, March 31, 2020 (43,108) Foreign currency translation adjustments 22,932 Balance, March 31, 2021 $ (20,176) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
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, 2021, 2020, and 2019 is comprised of the following approximate values: Year Ended March 31, 2021 2020 2019 Current: Federal $ 71,832 $ 39,796 $ 47,101 State and local 27,230 10,217 22,094 Foreign 18,632 11,495 6,706 Subtotal 117,694 61,508 75,901 Deferred: Federal (16,244) (6,317) (10,665) State and local (4,543) (2,104) (1,997) Foreign (450) (1,233) 1,975 Subtotal (21,237) (9,654) (10,687) Total $ 96,457 $ 51,854 $ 65,214 |
Effective Income Tax Rate Reconciliation | The provision for income taxes on operations for the years ended March 31, 2021, 2020, and 2019 is reconciled to the income taxes computed at the statutory federal income tax rate (computed by applying the federal corporate rate of 21% to consolidated operating income before provision for income taxes) as follows: Year Ended March 31, 2021 2020 2019 Federal income tax provision computed at statutory rate $ 85,937 21.0 % $ 49,486 21.0 % $ 47,107 21.0 % State and local taxes, net of federal tax effect 18,877 4.6 % 10,819 4.6 % 12,944 5.8 % Tax impact from foreign operations (1,036) (0.2) % (1,083) (0.5) % (2,098) (0.9) % Nondeductible expenses 6,004 1.5 % 4,721 2.0 % 3,797 1.7 % Stock compensation (13,349) (3.3) % (7,269) (3.1) % (8) — % Uncertain tax positions, true-up items, and other 24 — % (4,820) (2.0) % 2,159 0.9 % Enactment of the Tax Act — — % — — % 1,313 0.6 % Total $ 96,457 23.6 % $ 51,854 22.0 % $ 65,214 29.1 % |
Schedule of Deferred Tax Assets and Liabilities | The deferred income taxes on the accompanying consolidated balance sheets as of March 31, 2021 and March 31, 2020, comprise the following: March 31, 2021 March 31, 2020 Deferred tax assets: Deferred compensation expense/accrued bonus $ 75,140 $ 53,397 Allowance for credit losses 1,305 1,078 Accounts receivable and work in progress 2,084 — US foreign tax credits 2,475 2,478 Operating lease liabilities 31,499 27,977 Other, net 15,686 15,497 Total deferred tax assets 128,189 100,427 Deferred tax asset valuation allowance (9,783) (11,097) Total deferred tax assets 118,406 89,330 Deferred tax liabilities: Intangibles (49,913) (49,166) Accounts receivable and work in progress — (561) Operating lease right-of-use assets (27,856) (25,131) Other, net (12,358) (8,629) Total deferred tax liabilities (90,127) (83,487) Net deferred tax assets/(liabilities) $ 28,279 $ 5,843 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the unrecognized tax position as of March 31, 2021 and March 31, 2020 is as follows: March 31, 2021 March 31, 2020 Unrecognized tax position at the beginning of the year $ 9,947 $ 4,960 Increase/(decrease) related to prior year tax positions 2,979 (230) Increases related to tax positions taken in the current year 1,740 5,217 Unrecognized tax position at the end of the year $ 14,666 $ 9,947 |
NET INCOME PER SHARE ATTRIBUT_2
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculations of basic and diluted earnings per share attributable to holders of shares of common stock are presented below. Year Ended March 31, 2021 2020 2019 Numerator: Net income attributable to holders of shares of common stock—basic $ 312,771 $ 183,793 $ 159,106 Net income attributable to holders of shares of common stock—diluted $ 312,771 $ 183,793 $ 159,106 Denominator: Weighted average shares of common stock outstanding—basic 65,785,042 62,152,870 62,213,414 Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method 2,886,206 3,572,646 3,632,718 Weighted average shares of common stock outstanding—diluted 68,671,248 65,725,516 65,846,132 Basic earnings per share $ 4.75 $ 2.96 $ 2.56 Diluted earnings per share $ 4.55 $ 2.80 $ 2.42 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Activity in Equity Classified Share Awards | Activity in equity classified share awards that relate to the Company's 2006 Incentive Award Plan (the "2006 Incentive Plan") and the 2016 Incentive Plan during the years ended March 31, 2021, 2020, and 2019, is as follows: Unvested share awards Shares Weighted average grant date fair value Balance, April 1, 2018 2,854,893 $ 26.39 Granted 1,069,436 49.32 Vested (76,702) 48.78 Forfeited (83,643) 33.91 Balance, March 31, 2019 3,763,984 32.29 Granted 1,368,079 47.04 Vested (1,496,643) 29.30 Forfeited (96,373) 38.63 Balance, March 31, 2020 3,539,047 39.13 Granted 1,044,741 60.60 Vested (1,770,294) 32.36 Shares repurchased/forfeited (68,889) 50.87 Balance, March 31, 2021 2,744,605 $ 51.37 |
Activity in Liability Classified Share Awards | Activity in liability classified share awards during the years ended March 31, 2021, 2020, and 2019 is as follows: Awards settleable in shares Fair value Balance, April 1, 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, March 31, 2019 21,676 Offer to grant 6,410 Share price determined-converted to cash payments (100) Share price determined-transferred to equity grants (1) (6,457) Forfeited (540) Balance, March 31, 2020 20,989 Offer to grant 5,189 Share price determined-converted to cash payments (249) Share price determined-transferred to equity grants (1) (7,223) Forfeited (1,756) Balance, March 31, 2021 $ 16,950 (1) 121,075, 134,370, and 96,778 shares for the years ended March 31, 2021, 2020, and 2019, respectively. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The following table outlines the maturity of our existing operating lease liabilities on a fiscal year-end basis as of March 31, 2021. Maturity of Operating Leases Operating Leases 2022 $ 29,118 2023 25,419 2024 20,089 2025 21,130 2026 19,964 Thereafter 87,597 Total 203,317 Less: present value discount (28,801) Operating lease liabilities $ 174,516 |
Lease, Cost | Lease costs March 31, 2021 March 31, 2020 Operating lease expense $ 28,924 $ 28,489 Variable lease expense (1) 10,311 16,027 Short-term lease expense 203 370 Less: Sublease income (205) (193) Total lease costs $ 39,233 $ 44,693 (1) Primarily consists of payments for property taxes, common area maintenance and usage based operating costs. Weighted-average details March 31, 2021 March 31, 2020 Weighted-average remaining lease term (years) 9 9 Weighted-average discount rate 3.8 % 4.0 % Supplemental cash flow information related to leases: March 31, 2021 March 31, 2020 Operating cash flows: Cash paid for amounts included in the measurement of Operating lease liabilities $ 32,152 $ 25,558 Non-cash activity: Operating lease right-of-use assets obtained in exchange of operating lease liabilities $ 41,089 $ 13,714 Change in Operating lease right-of-use assets due to remeasurement (1,208) 5,883 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Scheduled Repayments of Loan | The scheduled aggregate repayments of our Loans payable to former shareholders, Other liabilities, and the Loan payable to non-affiliates in the accompanying Consolidated Balance Sheets on a fiscal year-end basis as of March 31, 2021 are as follows: 2022 $ 1,943 2023 17,663 2024 16,829 2025 6,532 2026 — 2027 and thereafter 12,897 Total $ 55,864 |
SEGMENT AND GEOGRAPHICAL INFO_2
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
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, 2021 2020 2019 Revenues by segment: Corporate Finance $ 802,853 $ 646,788 $ 607,333 Financial Restructuring 534,747 352,517 317,774 Financial and Valuation Advisory 187,852 160,063 159,278 Revenues $ 1,525,452 $ 1,159,368 $ 1,084,385 Segment profit (1) Corporate Finance $ 250,513 $ 179,660 $ 193,603 Financial Restructuring 224,215 107,714 83,607 Financial and Valuation Advisory 46,642 35,172 28,776 Total segment profit 521,370 322,546 305,986 Corporate expenses (2) 113,213 92,945 86,889 Other (income)/expense, net (1,071) (6,046) (5,223) Income before provision for income taxes $ 409,228 $ 235,647 $ 224,320 (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, and human capital. March 31, 2021 March 31, 2020 March 31, 2019 Assets by segment Corporate Finance $ 575,241 $ 403,147 $ 403,928 Financial Restructuring 181,239 186,418 184,364 Financial and Valuation Advisory 136,761 127,440 127,744 Total segment assets 893,241 717,005 716,036 Corporate assets 1,532,826 959,998 709,876 Total assets $ 2,426,067 $ 1,677,003 $ 1,425,912 |
Revenue and Income Before Provision for Income Taxes by Geographic Areas | Year Ended March 31, 2021 2020 2019 Income before provision for income taxes by geography United States $ 321,639 $ 184,883 $ 176,850 International 87,589 50,764 47,470 Income before provision for income taxes $ 409,228 $ 235,647 $ 224,320 Year Ended March 31, 2021 2020 2019 Revenues by geography: United States $ 1,192,720 $ 975,075 $ 878,840 International 332,732 184,293 205,545 Revenues $ 1,525,452 $ 1,159,368 $ 1,084,385 |
Assets by Geographic Areas | March 31, 2021 March 31, 2020 March 31, 2019 Assets by geography United States $ 1,837,332 $ 1,135,871 $ 1,021,975 International 588,735 541,132 403,937 Total assets $ 2,426,067 $ 1,677,003 $ 1,425,912 |
BACKGROUND (Details)
BACKGROUND (Details) | May 20, 2020shares | Aug. 01, 2019$ / sharesshares | May 30, 2019$ / sharesshares | Aug. 19, 2015class_of_stock | Mar. 31, 2021USD ($)segment$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Sep. 30, 2020 | Mar. 31, 2018shares | Nov. 30, 2015USD ($) | Aug. 18, 2015vote |
Class of Stock [Line Items] | |||||||||||
Number of business segments | segment | 3 | ||||||||||
Number of classes of common stock | class_of_stock | 2 | ||||||||||
Conversion ratio of common stock | 1 | ||||||||||
Professional fees | $ | $ 24,681,000 | $ 21,704,000 | $ 23,035,000 | ||||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 64.18 | $ 44.13 | $ 46.71 | ||||||||
IPO | |||||||||||
Class of Stock [Line Items] | |||||||||||
Compensation expenses associated with the accrual of certain deferred cash payments granted | $ | $ 0 | $ 10,035,000 | $ 10,273,000 | ||||||||
IPO | Restricted Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Compensation expenses associated with the amortization of awards granted | $ | $ 0 | $ 14,289,000 | $ 14,045,000 | ||||||||
Vesting period, restricted stock | 4 years 6 months | ||||||||||
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) | 51,245,442 | 46,178,633 | |||||||||
Shares issued and sold in Follow-on Offering (in shares) | 3,000,000 | ||||||||||
Stock Repurchased and Retired During Period, Shares | 1,591,995,000 | 671,187,000 | 1,481,114,000 | ||||||||
Class B | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock voting rights, number of votes per share | vote | 10 | ||||||||||
Number of common shares outstanding (in shares) | 16,951,696 | 19,345,277 | |||||||||
Stock Repurchased and Retired During Period, Shares | 286,730,000 | 654,994,000 | 36,958,000 | ||||||||
Common Stock | Class A | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of common shares outstanding (in shares) | 51,245,442 | 46,178,633 | 38,200,802 | 30,604,405 | |||||||
Shares issued and sold in Follow-on Offering (in shares) | 8,751 | 9,145 | 6,570 | ||||||||
Common Stock | Class B | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of common shares outstanding (in shares) | 16,951,696 | 19,345,277 | 27,197,734 | 37,187,932 | |||||||
Stock Repurchased and Retired During Period, Shares | 2,000,000 | ||||||||||
ORIX USA Corporation | Class A | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 3,377,935 | 3,000,000 | |||||||||
Selling price per share (in dollars per share) | $ / shares | $ 45.62 | $ 45.80 | |||||||||
HL Holders | Class B | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of common shares outstanding (in shares) | 16,951,696,000 | 19,345,277,000 | |||||||||
Director | Class A | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares issued and sold in Follow-on Offering (in shares) | 8,751,000 | 9,145,000 | |||||||||
Accounts Payable and Accrued Liabilities | IPO | |||||||||||
Class of Stock [Line Items] | |||||||||||
Vesting period, restricted stock | 4 years 6 months | ||||||||||
ITALY | Leonardo | |||||||||||
Class of Stock [Line Items] | |||||||||||
Notes payable issued, dividend distribution | $ | $ 14,000,000 | ||||||||||
Interest acquired in the investment banking operations of Leonardo in Italy (as a percent) | 51.00% | 51.00% | 49.00% |
- Revenues (Narrative) (Details
- Revenues (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue | $ 17,500 | $ 19,900 | |
Total operating expenses | $ 1,117,295 | $ 929,767 | $ 865,288 |
Number of business segments | segment | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Translation of Foreign Currency Transactions (Narrative) (Details) - Foreign currency forward contract | 9 Months Ended | |
Dec. 31, 2018USD ($) | Mar. 31, 2020USD ($)numberOfInstruments | |
Derivative [Line Items] | ||
Notional amount | $ 7,100,000 | |
Derivative, Number of Instruments Held | numberOfInstruments | 2 | |
Other operating expenses | ||
Derivative [Line Items] | ||
Gain (loss) included in other operating expenses | $ 38,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 846,851 | $ 380,373 | ||
Restricted cash (1) | 373 | 373 | ||
Total cash, cash equivalents, and restricted cash | $ 847,224 | $ 380,746 | $ 286,115 | $ 300,223 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) | Mar. 31, 2021 | Apr. 01, 2020 | Mar. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction to retained earnings | $ 1,383,561,000 | $ 984,382,000 | |
Accounts receivable, net of allowance for credit losses | 108,409,000 | $ 80,313,000 | 80,912,000 |
Unbilled work in progress, net of allowance for credit losses | 118,115,000 | 39,589,000 | 39,821,000 |
Other assets | 50,747,000 | 38,797,000 | 38,890,000 |
Deferred income taxes, net | 6,085,000 | 5,843,000 | |
Retained earnings | $ 600,096,000 | 376,789,000 | 377,471,000 |
Cumulative Effect, Period Of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction to retained earnings | (924,000) | $ (682,000) | |
Accounts receivable, net of allowance for credit losses | (599,000) | ||
Unbilled work in progress, net of allowance for credit losses | (232,000) | ||
Other assets | (93,000) | ||
Deferred income taxes, net | 242,000 | ||
Retained earnings | $ (682,000) |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue | $ 17.5 | $ 19.9 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Receivables, Contract Assets, and Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Receivables | |
Beginning balance | $ 73,720 |
Increase/(decrease) | 30,267 |
Ending balance | 103,987 |
Unbilled work in process | |
Beginning balance | 39,821 |
Increase/(decrease) | 78,294 |
Ending balance | 118,115 |
Contract Assets | |
Beginning balance | 7,192 |
Increase/(decrease) | (2,770) |
Ending balance | 4,422 |
Contract Liabilities | |
Beginning balance | 26,780 |
Increase/(decrease) | 1,088 |
Ending balance | $ 27,868 |
RELATED_PARTY TRANSACTIONS (Det
RELATED‑PARTY TRANSACTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | May 20, 2020 | Aug. 01, 2019 | May 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Related Party Transaction [Line Items] | ||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ 64.18 | $ 44.13 | $ 46.71 | |||
Professional fees | $ 24,681 | $ 21,704 | $ 23,035 | |||
ORIX USA Corporation | Management Accounting Legal Regulatory And Other Administrative Services | ||||||
Related Party Transaction [Line Items] | ||||||
Related party fee revenue | 2,875 | 828 | $ 8,819 | |||
Unconsolidated entities | Management and administrative services | ||||||
Related Party Transaction [Line Items] | ||||||
Related party fee revenue | $ 126 | $ 482 | ||||
Class B shares | ||||||
Related Party Transaction [Line Items] | ||||||
Stock Repurchased and Retired During Period, Shares | 286,730,000 | 654,994,000 | 36,958,000 | |||
Class A | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued and sold in Follow-on Offering (in shares) | 3,000,000 | |||||
Stock Repurchased and Retired During Period, Shares | 1,591,995,000 | 671,187,000 | 1,481,114,000 | |||
Class A | ORIX USA Corporation | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued and sold in Follow-on Offering (in shares) | 3,377,935 | 3,000,000 | ||||
Selling price per share (in dollars per share) | $ 45.62 | $ 45.80 | ||||
Other Assets | ||||||
Related Party Transaction [Line Items] | ||||||
Loans receivable from employees | $ 16,657 | $ 17,857 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | $ 202,742 | $ 135,389 |
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 | 202,742 | 135,389 |
Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 178,659 | 43,027 |
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 | 178,659 | 43,027 |
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 | 24,083 | 92,362 |
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 | 24,083 | 92,362 |
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, 2021 | Mar. 31, 2020 |
Total Securities | ||
Amortized Cost | $ 202,145 | |
Gross Unrealized Gains | 711 | |
Gross Unrealized (Losses) | (114) | |
Fair Value (1) | 202,742 | |
Debt Securities - Held-to-Maturity | ||
Amortized Cost | $ 134,888 | |
Gross Unrealized Gains | 901 | |
Gross Unrealized (Losses) | (400) | |
Fair Value | 135,389 | |
Corporate debt securities | ||
Debt Securities - Trading | ||
Amortized Cost | 178,384 | |
Gross Unrealized Gains | 389 | |
Gross Unrealized (Losses) | (114) | |
Fair Value (1) | 178,659 | |
Debt Securities - Held-to-Maturity | ||
Amortized Cost | 43,166 | |
Gross Unrealized Gains | 210 | |
Gross Unrealized (Losses) | (349) | |
Fair Value | 43,027 | |
U.S. treasury securities | ||
Debt Securities - Trading | ||
Amortized Cost | 23,761 | |
Gross Unrealized Gains | 322 | |
Gross Unrealized (Losses) | 0 | |
Fair Value (1) | $ 24,083 | |
Debt Securities - Held-to-Maturity | ||
Amortized Cost | 91,722 | |
Gross Unrealized Gains | 691 | |
Gross Unrealized (Losses) | (51) | |
Fair Value | $ 92,362 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Investment Contractual Maturity Dates (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year, amortized cost | $ 172,747 | $ 105,349 |
Due within one year, estimated fair value | 172,798 | 105,302 |
Die within one year through five years, amortized cost | 29,398 | 29,539 |
Due within one year through five years, fair value | 29,944 | 30,087 |
Amortized cost | 202,145 | 134,888 |
Fair value | $ 202,742 | $ 135,389 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Uncollectible Accounts Receivable | |||
Beginning balance | $ 6,889 | $ 5,596 | |
Transition adjustment as of April 1, 2020 | 6,889 | 6,889 | $ 5,596 |
Provision for bad debt, net | 7,290 | 4,873 | 1,707 |
Recovery or write-off of uncollectible accounts | (3,228) | (3,580) | |
Ending balance | 11,782 | 6,889 | $ 5,596 |
Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance for Uncollectible Accounts Receivable | |||
Beginning balance | 831 | ||
Transition adjustment as of April 1, 2020 | $ 831 | 831 | |
Ending balance | $ 831 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 100,677 | $ 90,427 | |
Less: accumulated depreciation | (54,307) | (48,055) | |
Total net book value | 46,370 | 42,372 | |
Depreciation | $ 11,068 | 9,842 | $ 8,434 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Total cost | $ 8,795 | 8,788 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Total cost | $ 21,493 | 20,942 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 10 years | ||
Total cost | $ 52,561 | 41,643 | |
Computers and software | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 3 years | ||
Total cost | $ 10,772 | 17,941 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 7,056 | $ 1,113 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 671,065 | $ 618,455 |
Tradename-Houlihan Lokey | 192,210 | 192,210 |
Other intangible assets | 6,809 | 10,732 |
Total cost | 870,084 | 821,397 |
Less: accumulated amortization | (3,863) | (8,553) |
Goodwill and other intangibles, net | $ 866,221 | $ 812,844 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
Goodwill | ||
April 1, 2020 | $ 618,455 | |
Changes | 52,610 | |
March 31, 2020 | $ 671,065 | 671,065 |
Corporate Finance | ||
Goodwill | ||
April 1, 2020 | 363,925 | |
Changes | 52,610 | |
March 31, 2020 | 416,535 | 416,535 |
Financial Restructuring | ||
Goodwill | ||
April 1, 2020 | 162,815 | |
Changes | 0 | |
March 31, 2020 | 162,815 | 162,815 |
Financial and Valuation Advisory | ||
Goodwill | ||
April 1, 2020 | 91,715 | |
Changes | 0 | |
March 31, 2020 | $ 91,715 | $ 91,715 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 4,161 | $ 7,449 | $ 6,041 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Amortization Expense, Fiscal Year Maturity (Details) $ in Thousands | Mar. 31, 2021USD ($) |
(In thousands) | |
2022 | $ 2,207 |
2023 | 325 |
2024 | 7 |
2025 | 7 |
2026 | $ 7 |
LOANS PAYABLE (Details)
LOANS PAYABLE (Details) € in Millions | Aug. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Jan. 31, 2017EUR (€) | Aug. 31, 2015USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020 | Dec. 31, 2019USD ($) | Aug. 23, 2019USD ($) | May 31, 2018USD ($) | Apr. 30, 2018GBP (£) | Nov. 30, 2015USD ($) |
Loans Payable | 1.50% Loans Payable | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate | 1.50% | ||||||||||||||||
Repayments of Debt | € | € 2.9 | € 2.9 | € 2.9 | € 2.9 | |||||||||||||
Loans Payable | Non Interest Bearing Unsecured Convertible Loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loans payable, face amount | $ 4,500,000 | $ 16,900,000 | £ 10,500,000 | ||||||||||||||
Interest and unused commitment fees paid | 288,000 | $ 327,000 | $ 325,000 | ||||||||||||||
Exchange period | 3 years | ||||||||||||||||
Loans Payable | Two Point Eighty Eight Percent Loans Payable | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loans payable, face amount | $ 2,800,000 | ||||||||||||||||
Interest and unused commitment fees paid | $ 88,000 | 105,000 | |||||||||||||||
Stated interest rate | 2.88% | ||||||||||||||||
Loans Payable | Two Point Seven Five Percent Loans Payable | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loans payable, face amount | $ 4,000,000 | ||||||||||||||||
Interest and unused commitment fees paid | 103,000 | $ 32,000 | |||||||||||||||
Stated interest rate | 2.75% | ||||||||||||||||
Exchange period | 4 years | ||||||||||||||||
Loans Payable | Former Shareholders | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Related party interest expense | $ 63,000 | $ 96,000 | $ 21,000 | ||||||||||||||
Stated interest rate | 1.49% | 2.94% | 3.92% | ||||||||||||||
Loans Payable | Joint Venture | 1.50% Loans Payable | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Related party interest expense | $ 30,000 | $ 76,000 | $ 131,000 | ||||||||||||||
Revolving line of credit | Bank of America | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit, maximum borrowing capacity | $ 75,000,000 | $ 100,000,000 | |||||||||||||||
Principal outstanding | 0 | ||||||||||||||||
Revolving line of credit | Bank of America | 2019 Line of Credit, Expansion Option | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit, maximum borrowing capacity | $ 200,000,000 | ||||||||||||||||
Other Liabilities | January 2017 Acquisition | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Business combination, noncontingent consideration liability | $ 0 | $ 999,000 | |||||||||||||||
London Interbank Offered Rate (LIBOR) | Revolving line of credit | Bank of America | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate on line of credit | 1.00% | ||||||||||||||||
ITALY | Leonardo | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loans payable, face amount | $ 14,000,000 | ||||||||||||||||
Interest acquired in the investment banking operations of Leonardo in Italy (as a percent) | 51.00% | 51.00% | 49.00% |
OTHER COMPREHENSIVE INCOME AN_3
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss | |||
Foreign currency translation gain/loss | $ 22,932 | $ (12,814) | $ (16,338) |
Accumulated other comprehensive (loss) | (20,176) | (43,108) | |
Accumulated other comprehensive loss | |||
Accumulated Other Comprehensive Loss | |||
Beginning balance | (30,294) | (13,956) | |
Foreign currency translation gain/loss | $ 22,932 | $ (12,814) | (16,338) |
Ending balance | $ (30,294) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||||
Provision for income taxes | $ 65,214 | $ 96,457 | $ 51,854 | $ 65,214 | ||
Effective tax rate | 29.10% | 23.60% | 22.00% | 29.10% | ||
Federal corporate rate | 21.00% | 21.00% | 21.00% | |||
Deferred tax asset, foreign net operating losses | $ 5,616 | $ 5,616 | ||||
Deferred tax assets, valuation allowance | 7,308 | 7,308 | $ 8,619 | |||
Decrease in deferred tax assets valuation allowance | $ 272 | 1,314 | ||||
Cash in certain foreign jurisdictions in excess of near-term working capital needs | 39,000 | 39,000 | ||||
Recorded liabilities for interest and penalties related to uncertain tax positions | 1,984 | 1,984 | 1,845 | |||
Unrecognized tax benefits | 14,666 | 14,666 | 9,947 | $ 4,960 | ||
Reasonably possible decrease in gross unrecognized income tax benefits for federal and state items may be necessary within the next 12 months | 1,300 | 1,300 | ||||
Release of reserves relating to the lapse of the statute of limitations | 1,800 | |||||
Foreign Tax Authority | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Tax credit carryforward, amount | $ 2,475 | $ 2,475 | $ 2,478 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) for Income Taxes on Operations (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current: | ||||
Federal | $ 71,832 | $ 39,796 | $ 47,101 | |
State and local | 27,230 | 10,217 | 22,094 | |
Foreign | 18,632 | 11,495 | 6,706 | |
Current income tax expense (benefit) | 117,694 | 61,508 | 75,901 | |
Deferred: | ||||
Federal | (16,244) | (6,317) | (10,665) | |
State and local | (4,543) | (2,104) | (1,997) | |
Foreign | (450) | (1,233) | 1,975 | |
Deferred income tax expense (benefit) | (21,237) | (9,654) | (10,687) | |
Total | $ 65,214 | $ 96,457 | $ 51,854 | $ 65,214 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount | ||||
Federal income tax provision computed at statutory rate | $ 85,937 | $ 49,486 | $ 47,107 | |
State and local taxes, net of federal tax effect | 18,877 | 10,819 | 12,944 | |
Tax impact from foreign operations | (1,036) | (1,083) | (2,098) | |
Nondeductible expenses | 6,004 | 4,721 | 3,797 | |
Stock compensation | (13,349) | (7,269) | (8) | |
Uncertain tax positions, true-up items, and other | 24 | (4,820) | 2,159 | |
Enactment of the Tax Act | 0 | 0 | 1,313 | |
Total | $ 65,214 | $ 96,457 | $ 51,854 | $ 65,214 |
Effective Income Tax Rate Reconciliation, Percent | ||||
Federal income tax provision computed at statutory rate | 21.00% | 21.00% | 21.00% | |
State and local taxes, net of federal tax effect | 4.60% | 4.60% | 5.80% | |
Tax impact from foreign operations | (0.20%) | (0.50%) | (0.90%) | |
Nondeductible expenses | 1.50% | 2.00% | 1.70% | |
Stock compensation | (3.30%) | (3.10%) | 0.00% | |
Uncertain tax positions, true-up items, and other | 0.00% | (2.00%) | 0.90% | |
Enactment of the Tax Act | 0.00% | 0.00% | 0.60% | |
Total | 29.10% | 23.60% | 22.00% | 29.10% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets: | ||
Deferred compensation expense/accrued bonus | $ 75,140 | $ 53,397 |
Allowance for credit losses | 1,305 | 1,078 |
Accounts receivable and work in progress | 2,084 | 0 |
US foreign tax credits | 2,475 | 2,478 |
Operating lease liabilities | 31,499 | 27,977 |
Other, net | 15,686 | 15,497 |
Total deferred tax assets | 128,189 | 100,427 |
Deferred tax asset valuation allowance | (9,783) | (11,097) |
Total deferred tax assets | 118,406 | 89,330 |
Deferred tax liabilities: | ||
Intangibles | (49,913) | (49,166) |
Accounts receivable and work in progress | 0 | (561) |
Operating lease right-of-use assets | (27,856) | (25,131) |
Other, net | (12,358) | (8,629) |
Total deferred tax liabilities | (90,127) | (83,487) |
Net deferred tax assets/(liabilities) | $ 28,279 | $ 5,843 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits | ||
Unrecognized tax position at the beginning of the year | $ 9,947 | $ 4,960 |
Increase/(decrease) related to prior year tax positions | 2,979 | |
Increase/(decrease) related to prior year tax positions | (230) | |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 1,740 | 5,217 |
Unrecognized tax position at the end of the year | $ 14,666 | $ 9,947 |
NET INCOME PER SHARE ATTRIBUT_3
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | |||
Net income | $ 312,771 | $ 183,793 | $ 159,106 |
Net income attributable to holders of shares of common stock—diluted | $ 312,771 | $ 183,793 | $ 159,106 |
Denominator: | |||
Weighted average shares of common stock outstanding—basic (in shares) | 65,785,042 | 62,152,870 | 62,213,414 |
Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method (in shares) | 2,886,206 | 3,572,646 | 3,632,718 |
Weighted average shares of common stock outstanding—diluted (in shares) | 68,671,248 | 65,725,516 | 65,846,132 |
Basic (in usd per share) | $ 4.75 | $ 2.96 | $ 2.56 |
Diluted (in usd per share) | $ 4.55 | $ 2.80 | $ 2.42 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Defined contribution plan, amount of contributions | $ 4,519 | $ 3,751 | $ 2,765 |
EMPLOYEE BENEFIT PLANS - Share-
EMPLOYEE BENEFIT PLANS - Share-Based Incentive Plans Narrative (Details) | Oct. 19, 2017shares | Aug. 31, 2015director$ / sharesshares | Dec. 31, 2020director$ / shares | Jun. 30, 2020director$ / shares | Dec. 31, 2019director$ / shares | Jun. 30, 2019director$ / shares | Dec. 31, 2018director$ / shares | Jun. 30, 2018director$ / shares | Mar. 31, 2018$ / shares | Jun. 30, 2017director$ / shares | Jun. 30, 2016director$ / shares | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based compensation, excess tax benefit amount | $ | $ 7,269,000 | $ 13,349,000 | |||||||||||||
Payments related to tax withholding for share-based compensation | $ | 17,810,000 | $ 31,477,000 | $ 1,947,000 | ||||||||||||
Compensation expense — equity and liability classified share awards (Note 14) | $ | 62,421,000 | 64,345,000 | $ 56,561,000 | ||||||||||||
Unrecognized compensation cost | $ | $ 92,483,000 | $ 80,648,000 | |||||||||||||
Unrecognized compensation cost, period for recognition | 2 years | 1 year 10 months 24 days | |||||||||||||
2006 Incentive Plan | Restricted Stock | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Aggregate shares granted | 1,044,741 | 1,368,079 | 1,069,436 | ||||||||||||
Granted (in usd per share) | $ / shares | $ 60.60 | $ 47.04 | $ 49.32 | ||||||||||||
2016 Incentive Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period, restricted stock | 4 years | ||||||||||||||
2016 Incentive Plan | Restricted Stock | |||||||||||||||
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 | 48,716 | ||||||||||||||
Aggregate shares granted, number of recipients | director | 2 | 2 | 4 | 1 | 4 | 1 | 3 | 3 | |||||||
Granted (in usd per share) | $ / shares | $ 21 | $ 63.01 | $ 60.60 | $ 47.21 | $ 47.22 | $ 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 |
EMPLOYEE BENEFIT PLANS - Activi
EMPLOYEE BENEFIT PLANS - Activity in Equity Classified Share Awards (Details) - 2006 Incentive Plan - Restricted Stock - $ / shares | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Shares | ||||
Beginning balance (in shares) | 2,854,893 | 3,539,047 | 3,763,984 | |
Granted (in shares) | 1,044,741 | 1,368,079 | 1,069,436 | |
Vested (in shares) | (1,770,294) | (1,496,643) | (76,702) | |
Forfeited (in shares) | (96,373) | (83,643) | ||
Shares repurchased/forfeited (in shares) | (68,889) | |||
Ending balance (in shares) | 2,744,605 | 3,539,047 | 3,763,984 | |
Weighted average grant date fair value | ||||
Beginning balance (in usd per share) | $ 26.39 | $ 39.13 | $ 32.29 | |
Granted (in usd per share) | 60.60 | 47.04 | $ 49.32 | |
Vested (in usd per share) | 32.36 | 29.30 | 48.78 | |
Forfeited (in usd per share) | 50.87 | 38.63 | 33.91 | |
Ending balance (in usd per share) | $ 51.37 | $ 39.13 | $ 32.29 |
EMPLOYEE BENEFIT PLANS - Acti_2
EMPLOYEE BENEFIT PLANS - Activity in Liability Classified Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Liability Classified Awards Settleable in Shares | ||||||
Beginning balance | $ 20,989 | $ 15,493 | $ 20,989 | $ 21,676 | $ 15,493 | |
Offer to grant | $ 5,189 | 6,410 | 12,432 | |||
Share price determined-converted to cash payments | (249) | (100) | (300) | |||
Share price determined-transferred to equity grants | (7,223) | (6,457) | (4,705) | |||
Forfeited | (1,756) | (540) | (1,244) | |||
Ending balance | $ 16,950 | $ 16,950 | $ 20,989 | $ 21,676 | ||
Share price determined-transferred to equity grants (in shares) | 134,370 | 96,778 | 121,075 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | May 20, 2020USD ($)shares | Aug. 01, 2019$ / sharesshares | May 30, 2019$ / sharesshares | Aug. 19, 2015class_of_stock | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Jul. 31, 2018USD ($) | Mar. 31, 2018shares | Aug. 18, 2015vote |
Class of Stock [Line Items] | ||||||||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 64.18 | $ 44.13 | $ 46.71 | |||||||||
Number of classes of common stock | class_of_stock | 2 | |||||||||||
Conversion ratio of common stock | 1 | |||||||||||
Dividends outstanding | $ | $ 6,744,000 | $ 8,780,000 | ||||||||||
Stock repurchase program, authorized amount | $ | $ 200,000,000 | $ 125,000,000 | $ 100,000,000 | |||||||||
Class A | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued of common stock (in shares) | 51,245,442 | 46,178,633 | ||||||||||
Stock Repurchased and Retired During Period, Shares | 1,591,995,000 | 671,187,000 | 1,481,114,000 | |||||||||
Shares issued to non-employee directors (in shares) | 3,000,000 | |||||||||||
Common stock voting rights, number of votes per share | vote | 1 | |||||||||||
Number of common shares outstanding (in shares) | 51,245,442 | 46,178,633 | ||||||||||
Stock repurchased and retired during period, value | $ | $ 102,173,000 | $ 29,621,000 | $ 69,180,000 | |||||||||
Net proceeds from offering | $ | $ 188,700,000 | |||||||||||
Class B | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued of common stock (in shares) | 16,951,696 | 19,345,277 | ||||||||||
Stock Repurchased and Retired During Period, Shares | 286,730,000 | 654,994,000 | 36,958,000 | |||||||||
Common stock voting rights, number of votes per share | vote | 10 | |||||||||||
Number of common shares outstanding (in shares) | 16,951,696 | 19,345,277 | ||||||||||
Stock repurchased and retired during period, value | $ | $ 17,810,000 | $ 31,451,000 | $ 1,700,000 | |||||||||
ORIX USA Corporation | Class A | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued to non-employee directors (in shares) | 3,377,935 | 3,000,000 | ||||||||||
Selling price per share (in dollars per share) | $ / shares | $ 45.62 | $ 45.80 | ||||||||||
Director | Class A | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued to non-employee directors (in shares) | 8,751,000 | 9,145,000 | ||||||||||
Investor | Class A | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued of common stock (in shares) | 51,199,967,000 | 46,141,909,000 | ||||||||||
HL Holders | Class B | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of common shares outstanding (in shares) | 16,951,696,000 | 19,345,277,000 | ||||||||||
Common Stock | Class A | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued to non-employee directors (in shares) | 8,751 | 9,145 | 6,570 | |||||||||
Shares converted from Class B to Class A (in shares) | 3,650,053,000 | 8,639,873,000 | ||||||||||
Number of common shares outstanding (in shares) | 51,245,442 | 46,178,633 | 38,200,802 | 30,604,405 | ||||||||
Common Stock | Class B | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock Repurchased and Retired During Period, Shares | 2,000,000 | |||||||||||
Number of common shares outstanding (in shares) | 16,951,696 | 19,345,277 | 27,197,734 | 37,187,932 | ||||||||
Stock repurchased and retired during period, value | $ | $ 2,000 | |||||||||||
Director | Class A | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued of common stock (in shares) | 45,475,000 | 36,724,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating right-of-use assets | $ 152,031 | $ 135,240 |
Operating lease liabilities | $ 174,516 | $ 154,218 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 16 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, term of contract | 1 year |
LEASES - Maturity of Existing O
LEASES - Maturity of Existing Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 29,118 | |
2021 | 25,419 | |
2022 | 20,089 | |
2023 | 21,130 | |
2024 | 19,964 | |
Thereafter | 87,597 | |
Total | 203,317 | |
Less: present value discount | (28,801) | |
Operating lease liabilities | $ 174,516 | $ 154,218 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 28,924 | $ 28,489 |
Variable lease expense (1) | 10,311 | 16,027 |
Short-term lease expense | 203 | 370 |
Less: Sublease income | (205) | (193) |
Total lease costs | $ 39,233 | $ 44,693 |
LEASES - Weighted Average Detai
LEASES - Weighted Average Details (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 9 years | 9 years |
Weighted-average discount rate | 3.80% | 4.00% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of Operating lease liabilities | $ 32,152 | $ 25,558 |
Operating lease right-of-use assets obtained in exchange of operating lease liabilities | 41,089 | 13,714 |
Change in Operating lease right-of-use assets due to remeasurement | $ (1,208) | $ 5,883 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Loan Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
(In thousands) | |
2020 | $ 1,943 |
2021 | 17,663 |
2022 | 16,829 |
2023 | 6,532 |
2024 | 0 |
2027 and thereafter | 12,897 |
Total | $ 55,864 |
SEGMENT AND GEOGRAPHICAL INFO_3
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,525,452 | $ 1,159,368 | $ 1,084,385 |
Segment profit | 521,370 | 322,546 | 305,986 |
Corporate expenses (2) | (1,117,295) | (929,767) | (865,288) |
Other (income)/expense, net | 1,071 | 6,046 | 5,223 |
Income before provision for income taxes | 409,228 | 235,647 | 224,320 |
Assets | 2,426,067 | 1,677,003 | 1,425,912 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 893,241 | 717,005 | 716,036 |
Operating Segments | Corporate Finance | |||
Segment Reporting Information [Line Items] | |||
Revenues | 802,853 | 646,788 | 607,333 |
Segment profit | 250,513 | 179,660 | 193,603 |
Assets | 575,241 | 403,147 | 403,928 |
Operating Segments | Financial Restructuring | |||
Segment Reporting Information [Line Items] | |||
Revenues | 534,747 | 352,517 | 317,774 |
Segment profit | 224,215 | 107,714 | 83,607 |
Assets | 181,239 | 186,418 | 184,364 |
Operating Segments | Financial and Valuation Advisory | |||
Segment Reporting Information [Line Items] | |||
Revenues | 187,852 | 160,063 | 159,278 |
Segment profit | 46,642 | 35,172 | 28,776 |
Assets | 136,761 | 127,440 | 127,744 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Corporate expenses (2) | (113,213) | (92,945) | (86,889) |
Assets | $ 1,532,826 | $ 959,998 | 709,876 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Other (income)/expense, net | $ (5,223) |
SEGMENT AND GEOGRAPHICAL INFO_4
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Geographical Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before provision for income taxes | $ 409,228 | $ 235,647 | $ 224,320 |
Revenues | 1,525,452 | 1,159,368 | 1,084,385 |
Assets | 2,426,067 | 1,677,003 | 1,425,912 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before provision for income taxes | 321,639 | 184,883 | 176,850 |
Revenues | 1,192,720 | 975,075 | 878,840 |
Assets | 1,837,332 | 1,135,871 | 1,021,975 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before provision for income taxes | 87,589 | 50,764 | 47,470 |
Revenues | 332,732 | 184,293 | 205,545 |
Assets | $ 588,735 | $ 541,132 | $ 403,937 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 2 Months Ended |
May 21, 2021$ / shares | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Quarterly dividend declared (in usd per share) | $ 0.43 |