Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | May 16, 2024 | Sep. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,510 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for its 2024 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 | 2024 | ||
Document Fiscal Period Focus | FY | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Los Angeles, California | ||
Auditor Firm ID | 185 | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 52,528,157 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 16,055,481 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 721,235 | $ 714,439 |
Restricted cash | 619 | 373 |
Investment securities | 38,005 | 37,309 |
Accounts receivable, net of allowance for credit losses of $8,767 and $8,773, respectively | 199,630 | 182,029 |
Unbilled work in progress, net of allowance for credit losses of $6,132 and $5,622, respectively | 192,012 | 115,045 |
Income taxes receivable | 32,856 | 17,693 |
Deferred income taxes | 90,064 | 104,941 |
Property and equipment, net | 136,701 | 88,345 |
Operating lease right-of-use assets | 344,024 | 333,877 |
Goodwill | 1,127,497 | 1,087,784 |
Other intangible assets, net | 197,439 | 203,370 |
Other assets | 90,677 | 83,609 |
Total assets | 3,170,759 | 2,968,814 |
Liabilities: | ||
Accrued salaries and bonuses | 726,031 | 765,877 |
Accounts payable and accrued expenses | 114,171 | 113,421 |
Deferred income | 33,139 | 40,695 |
Deferred income taxes | 7,505 | 544 |
Operating lease liabilities | 415,412 | 374,869 |
Other liabilities | 37,751 | 60,111 |
Total liabilities | 1,334,009 | 1,355,517 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Additional paid-in capital | 739,870 | 642,970 |
Retained earnings | 1,163,419 | 1,033,072 |
Accumulated other comprehensive loss | (66,608) | (62,814) |
Total stockholders' equity | 1,836,750 | 1,613,297 |
Total liabilities and stockholders' equity | 3,170,759 | 2,968,814 |
Class A | ||
Stockholders' equity: | ||
Common stock | 52 | 51 |
Class B | ||
Stockholders' equity: | ||
Common stock | $ 17 | $ 18 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Allowance For Doubtful Accounts | $ 8,767 | $ 8,773 |
Allowance for doubtful accounts, unbilled receivables, work in process | $ 6,132 | $ 5,622 |
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) | 52,348,511 | 50,638,924 |
Common stock, shares outstanding (in shares) | 52,348,511 | 50,638,924 |
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) | 16,746,676 | 18,048,345 |
Common stock, shares outstanding (in shares) | 16,746,676 | 18,048,345 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | |||
Revenues | $ 1,914,404 | $ 1,809,447 | $ 2,269,958 |
Operating expenses: | |||
Employee compensation and benefits | 1,213,589 | 1,147,879 | 1,408,634 |
Travel, meals, and entertainment | 65,298 | 51,082 | 22,465 |
Rent | 76,079 | 55,838 | 47,747 |
Depreciation and amortization | 28,536 | 58,221 | 48,537 |
Information technology and communications | 60,168 | 54,125 | 41,714 |
Professional fees | 49,077 | 32,940 | 38,349 |
Other operating expenses | 58,796 | 67,624 | 49,648 |
Total operating expenses | 1,551,543 | 1,467,709 | 1,657,094 |
Operating income | 362,861 | 341,738 | 612,864 |
Other (income)/expense, net | (27,678) | 17,738 | 8,926 |
Income before provision for income taxes | 390,539 | 324,000 | 603,938 |
Provision for income taxes | 110,238 | 69,777 | 165,614 |
Net income | 280,301 | 254,223 | 438,324 |
Net income attributable to noncontrolling interest | 0 | 0 | (573) |
Net income attributable to Houlihan Lokey, Inc. | 280,301 | 254,223 | 437,751 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | (3,794) | (19,467) | (23,171) |
Comprehensive income attributable to Houlihan Lokey, Inc. | $ 276,507 | $ 234,756 | $ 414,580 |
Weighted average shares of common stock outstanding: | |||
Basic (in shares) | 64,337,975 | 63,358,408 | 64,970,287 |
Diluted (in shares) | 68,159,390 | 67,586,263 | 68,259,708 |
Earnings per share (Note 13) | |||
Basic (in usd per share) | $ 4.36 | $ 4.01 | $ 6.74 |
Diluted (in usd per share) | $ 4.11 | $ 3.76 | $ 6.41 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A | Class B | Total stockholders' equity | Common stock Class A | Common stock Class B | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning balance (in shares) at Mar. 31, 2021 | 51,245,442 | 16,951,696 | |||||||
Beginning balance at Mar. 31, 2021 | $ 1,383,561 | $ 51 | $ 17 | $ 803,573 | $ 600,096 | $ (20,176) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Shares issued (in shares) | 0 | 3,107,424 | |||||||
Shares issued | 14,185 | $ 0 | $ 3 | 14,182 | |||||
Stock compensation vesting (note 14) | 84,320 | 84,320 | |||||||
Dividends | (115,624) | (115,624) | |||||||
Conversion of Class B to Class A shares (in shares) | 1,874,009 | (1,874,009) | |||||||
Conversion of Class B to Class A shares | 0 | $ 2 | $ (2) | ||||||
Shares issued to non-employee directors (note 14) (in shares) | 6,512 | ||||||||
Shares issued to non-employee directors (note 14) | 477 | 477 | |||||||
Other shares repurchased/forfeited (in shares) | (3,272,399) | (535,556) | |||||||
Other shares repurchased/forfeited | (337,794) | $ (3) | (337,791) | ||||||
Net income | $ 438,324 | 437,751 | 437,751 | ||||||
Change in unrealized translation | (23,171) | (23,171) | |||||||
Total comprehensive income | 414,580 | 437,751 | (23,171) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 49,853,564 | 17,649,555 | |||||||
Ending balance at Mar. 31, 2022 | 1,443,705 | $ 50 | $ 18 | 564,761 | 922,223 | (43,347) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Shares issued (in shares) | 2,485,582 | ||||||||
Shares issued | 16,775 | $ 2 | 16,773 | ||||||
Stock compensation vesting (note 14) | 151,769 | 151,769 | |||||||
Dividends | (143,374) | (143,374) | |||||||
Conversion of Class B to Class A shares (in shares) | 1,455,908 | (1,455,908) | |||||||
Conversion of Class B to Class A shares | 0 | $ 1 | $ (1) | ||||||
Shares issued to non-employee directors (note 14) (in shares) | 6,739 | ||||||||
Shares issued to non-employee directors (note 14) | 570 | 570 | |||||||
Other shares repurchased/forfeited (in shares) | (677,287) | (630,884) | |||||||
Other shares repurchased/forfeited | (90,904) | $ (1) | (90,903) | ||||||
Net income | 254,223 | 254,223 | 254,223 | ||||||
Change in unrealized translation | (19,467) | (19,467) | |||||||
Total comprehensive income | 234,756 | 254,223 | (19,467) | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 50,638,924 | 18,048,345 | 50,638,924 | 18,048,345 | |||||
Ending balance at Mar. 31, 2023 | 1,613,297 | 1,613,297 | $ 51 | $ 18 | 642,970 | 1,033,072 | (62,814) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Shares issued (in shares) | 1,767,036 | ||||||||
Shares issued | 31,133 | $ 1 | 31,132 | ||||||
Stock compensation vesting (note 14) | 160,846 | 160,846 | |||||||
Dividends | (149,954) | (149,954) | |||||||
Conversion of Class B to Class A shares (in shares) | 1,942,078 | (1,942,078) | |||||||
Conversion of Class B to Class A shares | 0 | $ 1 | $ (1) | ||||||
Shares issued to non-employee directors (note 14) (in shares) | 6,609 | ||||||||
Shares issued to non-employee directors (note 14) | 587 | 587 | |||||||
Other shares repurchased/forfeited (in shares) | (239,100) | (1,126,627) | |||||||
Other shares repurchased/forfeited | (95,666) | $ (1) | (95,665) | ||||||
Net income | 280,301 | 280,301 | 280,301 | ||||||
Change in unrealized translation | (3,794) | (3,794) | |||||||
Total comprehensive income | 276,507 | 280,301 | (3,794) | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 52,348,511 | 16,746,676 | 52,348,511 | 16,746,676 | |||||
Ending balance at Mar. 31, 2024 | $ 1,836,750 | $ 1,836,750 | $ 52 | $ 17 | $ 739,870 | $ 1,163,419 | $ (66,608) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 280,301 | $ 254,223 | $ 438,324 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income tax benefit | 20,470 | (3,446) | (71,068) |
Provision for bad debts, net | 7,264 | 6,429 | 3,718 |
Unrealized (gains)/losses on investment securities | (876) | 3,680 | 4,228 |
Non-cash lease expense | 32,908 | 26,609 | 31,508 |
Depreciation and amortization | 28,536 | 58,221 | 48,537 |
Contingent consideration valuation | (10,373) | 2,131 | 7,104 |
Compensation expense — equity and liability classified share awards (Note 14) | 166,595 | 156,936 | 91,875 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (23,828) | (37,742) | 14,128 |
Unbilled work in progress | (77,477) | (11,596) | 18,036 |
Other assets | (6,756) | (25,958) | 14,895 |
Accrued salaries and bonuses | (42,269) | (189,534) | 150,721 |
Accounts payable and accrued expenses and other | (23,192) | (32,014) | (9,955) |
Deferred income | 7,556 | (11,943) | (807) |
Income taxes payable | (15,289) | (83,609) | (6,254) |
Net cash provided by operating activities | 328,458 | 136,273 | 736,604 |
Cash flows from investing activities: | |||
Purchases of investment securities | (11,278) | (19,230) | (101,562) |
Sales or maturities of investment securities | 11,458 | 87,384 | 197,324 |
Acquisition of business, net of cash acquired | (3,856) | (20,427) | (360,996) |
Purchase of property and equipment, net | (66,730) | (50,731) | (8,680) |
Net cash used in investing activities | (70,406) | (3,004) | (273,914) |
Cash flows from financing activities: | |||
Dividends paid | (148,454) | (140,384) | (114,806) |
Share repurchases | (24,952) | (48,659) | (304,793) |
Payments to settle employee tax obligations on share-based awards | (70,713) | (42,283) | (33,741) |
Earnouts paid | (7,053) | (6,679) | (5,917) |
Loans payable to former shareholders redeemed | 0 | (539) | (280) |
Repayments of loans to non-affiliates | 0 | (2,488) | 0 |
Other financing activities | 587 | 570 | 477 |
Net cash used in financing activities | (250,585) | (240,462) | (459,060) |
Effects of exchange rate changes on cash and cash equivalents | (425) | (12,065) | (16,784) |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 7,042 | (119,258) | (13,154) |
Cash, cash equivalents and restricted cash – beginning of period | 714,812 | 834,070 | 847,224 |
Cash, cash equivalents and restricted cash – end of period | 721,854 | 714,812 | 834,070 |
Supplemental disclosures of non-cash activities: | |||
Shares issued via vesting of liability classified awards | 5,176 | 5,955 | 4,270 |
Promissory note issued as consideration for acquisition | 14,500 | 0 | 0 |
Shares issued as consideration for acquisition | 19,343 | 7,238 | 2,000 |
Cash acquired through acquisitions | 224 | 11,933 | 244,162 |
Cash paid during the year: | |||
Interest | 579 | 5,904 | 1,000 |
Taxes, net of refunds | 105,056 | 156,786 | 242,031 |
Regulatory fines and penalties | $ 15,000 | $ 0 | $ 0 |
BACKGROUND
BACKGROUND | 12 Months Ended |
Mar. 31, 2024 | |
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. • 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."). The Company offers financial services and financial advice to a broad clientele located through more than thirty offices in the United States of America, South America, Europe, the Middle East, and the Asia-Pacific region. Together, the Company and its subsidiaries form an organization that provides financial services to meet a wide variety of client needs. The Company earns professional fees by providing 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, 2024 | |
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. 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. 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, valuation of acquired intangibles and 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. Completion Fees, Retainer Fees, and Progress Fees from these engagements are considered variable and constrained until the corresponding 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 regulatory approval). 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 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. 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, 2024, we had one foreign currency forward contract between the U.S. dollar and pound sterling with an aggregate notional value of $38.3 million. As of March 31, 2023, we had one foreign currency forward contract between the euro and pound sterling with an aggregate notional value of €6.5 million. The fair value of these foreign currency forward contracts represented a gain included in Other operating expenses 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 Accounting Standards Codification ("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 and Loans payable to former shareholders, which are included in Loan payable to non-affiliate, approximate 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, 2024 and 2023, 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, 2024 March 31, 2023 Cash and cash equivalents $ 721,235 $ 714,439 Restricted cash (1) 619 373 Total cash, cash equivalents, and restricted cash $ 721,854 $ 714,812 (1) Restricted cash represents cash deposits in support of two letters of credit for our Frankfurt office as of March 31, 2024 and one letter of credit for our Frankfurt office as of March 31, 2023. 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 collectability 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. Income Taxes The Company files consolidated federal income tax returns, 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. In 2021, the Organization for Economic Co-operation and Development (“OECD”) reached agreement among various countries to establish a 15% minimum tax on certain multinational enterprises, commonly referred to as Pillar Two. The EU effective dates are January 1, 2024 and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation with varying effective dates in the future. The Company is continuing to evaluate the potential impact on future periods of Pillar Two, pending legislative adoption by individual countries. Leases 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 during the fourth quarter for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with ASC Topic 350, Intangibles – Goodwill and Other, as amended by Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairment, which permits management to perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its corresponding carrying value. If management determines the reporting unit's fair value is more likely than not less than its carrying value, a quantitative analysis will be performed to compare the fair value of the reporting unit with its corresponding carrying value. If the conclusion of the quantitative analysis is that the fair value is in fact less than the carrying value, management will recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying value exceeds its fair value. Impairment testing of goodwill requires a significant amount of judgment in assessing both qualitative factors and if necessary, quantitative factors used to estimate the fair value of the reporting unit. As of March 31, 2024, 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 quantitative 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, 2024, 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, 2024, no events or changes in circumstances were identified that indicated that the carrying amount of the finite-lived intangible assets were not recoverable. Business Combinations We allocate the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date, with the excess consideration recognized as goodwill. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows, expected asset lives, geographic risk premiums, discount rates, and more. The amounts and useful lives assigned to acquisition-related intangible assets impact the amount and timing of future amortization expense. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Mar. 31, 2024 | |
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: March 31, 2024 March 31, 2023 Receivables, net (1) $ 192,952 $ 175,023 Unbilled work in progress, net of allowance for credit losses 192,012 115,045 Contract Assets (1) 6,678 7,006 Contract Liabilities (2) 33,139 40,695 (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, 2024 and 2023, $28.4 million and $16.8 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, 2024. |
RELATED_PARTY TRANSACTIONS
RELATED‑PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED‑PARTY TRANSACTIONS | Related Party Transactions The Company has historically provided financial advisory services to its affiliates and certain other related parties, and received fees for these services totaling approximately $9,044, $284, and $0 during the years ended March 31, 2024, 2023, and 2022, respectively. Accounts receivable and Unbilled work in progress in the accompanying Consolidated Balance Sheets include amounts pertaining to these services of $37 and $7,191, respectively, as of March 31, 2024. Other assets in the accompanying Consolidated Balance Sheets includes loans receivable from certain employees of $32,937 and $28,869 as of March 31, 2024 and 2023, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 Level I Level II Level III Total Corporate debt securities $ — $ 21,641 $ — $ 21,641 U.S. treasury securities — 15,833 — 15,833 Certificates of deposit — 531 — 531 Total asset measured at fair value $ — $ 38,005 $ — $ 38,005 March 31, 2023 Level I Level II Level III Total Corporate debt securities $ — $ 23,617 $ — $ 23,617 U.S. treasury securities — 12,990 — 12,990 Common stock 184 — — 184 Certificates of deposit — 518 — 518 Total asset measured at fair value $ 184 $ 37,125 $ — $ 37,309 The Company had no transfers between fair value levels during the years ended March 31, 2024 and March 31, 2023. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | Investment Securities The amortized cost and gross unrealized gains (losses) of marketable investment securities accounted under the fair value method were as follows: March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 22,318 $ 8 $ (685) $ 21,641 U.S. treasury securities 16,071 110 (348) 15,833 Certificates of deposit 531 — — 531 Total securities with unrealized gains/(losses) $ 38,920 $ 118 $ (1,033) $ 38,005 March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 24,936 $ 6 $ (1,325) $ 23,617 U.S. treasury securities 13,400 15 (425) 12,990 Common stock 768 — (584) 184 Certificates of deposit 518 — — 518 Total securities with unrealized gains/(losses) $ 39,622 $ 21 $ (2,334) $ 37,309 Scheduled maturities of the securities held by the Company included within the investment securities portfolio were as follows: March 31, 2024 March 31, 2023 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 7,592 $ 7,566 $ 6,243 $ 6,254 Due within years two through five 31,328 30,439 33,379 31,055 Total debt within the investment securities portfolio $ 38,920 $ 38,005 $ 39,622 $ 37,309 |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 March 31, 2023 Beginning balance $ 14,395 $ 13,274 Provision for bad debt, net 7,264 6,429 Write-off of uncollectible accounts, net (6,760) (5,308) Ending balance $ 14,899 $ 14,395 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 March 31, 2023 Equipment 5 years $ 9,972 $ 10,178 Furniture and fixtures 5 years 29,672 19,508 Leasehold improvements 10 years 144,996 107,156 Computers and software 3 years 12,282 12,086 Other Various 8,088 7,411 Total cost 205,010 156,339 Less: accumulated depreciation (68,309) (67,994) Total net book value $ 136,701 $ 88,345 Additions to property and equipment during the years ended March 31, 2024 and March 31, 2023 were primarily related to leasehold improvement costs incurred. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2024 | |
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 intangible assets, net reported on the Consolidated Balance Sheets. Useful Lives March 31, 2024 March 31, 2023 Goodwill Indefinite $ 1,127,497 $ 1,087,784 Tradename-Houlihan Lokey Indefinite 192,210 192,210 Other intangible assets Varies 98,897 93,917 Total cost 1,418,604 1,373,911 Less: accumulated amortization (93,668) (82,757) Goodwill and other intangible assets, net $ 1,324,936 $ 1,291,154 Amortization expense of approximately $10,754, $44,971, and $33,937 was recognized for finite-lived intangible assets for the years ended March 31, 2024, 2023, and 2022, respectively. The estimated future amortization for finite-lived intangible assets for each of the next five years and thereafter are as follows: Year Ended March 31, 2025 $ 4,926 2026 — 2027 — 2028 — 2029 and thereafter — Goodwill attributable to the Co mpany’s business segments is as follows: April 1, 2023 Change (1) March 31, 2024 Corporate Finance $ 833,254 $ 39,713 $ 872,967 Financial Restructuring 162,815 — 162,815 Financial and Valuation Advisory 91,715 — 91,715 Goodwill $ 1,087,784 $ 39,713 $ 1,127,497 (1) Changes pertain primarily to the acquisition of 7 Mile Advisors, LLC. |
LOANS PAYABLE
LOANS PAYABLE | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | Loans Payable On August 23, 2019, the Company entered into a syndicated revolving line of credit with Bank of America, N.A. and certain other financial institutions party thereto, which was amended by the First Amendment to Credit Agreement dated as of August 2, 2022 (the "HLI Line of Credit"), which allows for borrowings of up to $100.0 million (and, subject to certain conditions, provides the Company with an uncommitted expansion option, which, if exercised in full, would provide for a total credit facility of $200.0 million) and matures on August 23, 2025 (or if such date is not a business day, the immediately preceding business day). Borrowings under the HLI Line of Credit bear interest at a floating rate, which can be either, at the Company's option, (i) Term Secured Overnight Financing Rate ("SOFR") plus a 0.10% SOFR adjustment plus a 1.00% margin or (ii) base rate, which is the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) Term SOFR plus a 0.10% SOFR adjustment. Commitment fees apply to unused amounts, and the HLI Line of Credit contains debt covenants which require that the Company maintain certain financial ratios. As of March 31, 2024 and 2023, no principal was outstanding under the HLI Line of Credit. 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 $0, $18, and $105 for the years ended March 31, 2024, 2023, and 2022, 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 Class B common stock over a four-year period in equal annual installments starting in December, 2020. The Company incurred interest expense on this note of $58, $81, and $79 for the years ended March 31, 2024, 2023, and 2022, respectively. In August 2020, the Company acquired MVP Capital, LLC (“MVP”). Total consideration included an unsecured non-interest bearing note of $4.5 million payable August 14, 2050. The note was issued by the Company to the former principals and sellers of MVP (who became employees of the Company). Under certain circumstances, the note may be exchanged by each seller for a combination of cash and Company stock over a three-year period in equal annual installments starting in August 2021. As of September 30, 2023, the note was fully converted and exchanged for a combination of cash and Company stock. Contingent consideration was also issued in connection with the acquisition of MVP, the remaining liability of which was settled during the three months ended September 30, 2023. The fair value of the MVP contingent consideration was $12.9 million as of March 31, 2023, which is included in Other liabilities in our Consolidated Balance Sheet. In July 2021, the Company acquired Baylor Klein, Ltd ("BK"). Contingent consideration was issued in connection with the acquisition of BK, which had a fair value of $9.0 million and $18.1 million as of March 31, 2024 and March 31, 2023, respectively, which is included in Other Liabilities in our Consolidated Balance Sheet. In December 2023, the Company acquired 7 Mile Advisors, LLC ("7MA"). Total consideration included an unsecured note of $14.5 million bearing interest at an annual rate of 2.00% and payable on December 11, 2053. The note was issued by the Company to the former principals and sellers of 7MA (who became employees of the Company). Under certain circumstances, the note will be pre-paid to each seller for Company stock over a three-year period in equal annual installments starting in December 2024. The Company incurred interest expense of $88 for the year ended March 31, 2024. Contingent consideration was also issued in connection with the acquisition of 7MA, which had a fair value of $4.0 million as of March 31, 2024, and is included in Other liabilities in our Consolidated Balance Sheets. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | Accumulated Other Comprehensive (Loss) Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $(3,794) and $(19,467) for the years ended March 31, 2024 and 2023, 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, 2024, 2023, and 2022, was comprised of the following: Total Balance, March 31, 2022 $ (43,347) Foreign currency translation adjustments (19,467) Balance, March 31, 2023 (62,814) Foreign currency translation adjustments (3,794) Balance, March 31, 2024 $ (66,608) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income Taxes The Company’s provision for income taxes was $110,238, $69,777, and $165,614, for the years ended March 31, 2024, 2023, and 2022, respectively. This represents effective tax rates of 28.2%, 21.5%, and 27.4% for the years ended March 31, 2024, 2023, and 2022, respectively. The provision (benefit) for income taxes on operations for the years ended March 31, 2024, 2023, and 2022 is comprised of the following approximate values: Year Ended March 31, 2024 2023 2022 Current: Federal $ 40,838 $ 66,529 $ 134,054 State and local 16,116 4,819 58,568 Foreign 32,814 1,875 44,060 Subtotal 89,768 73,223 236,682 Deferred: Federal 14,116 1,605 (52,088) State and local 3,498 1,092 (18,348) Foreign 2,856 (6,143) (632) Subtotal 20,470 (3,446) (71,068) Total $ 110,238 $ 69,777 $ 165,614 The provision for income taxes on operations for the years ended March 31, 2024, 2023, and 2022 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, 2024 2023 2022 Federal income tax provision computed at statutory rate $ 82,013 21.0 % $ 68,040 21.0 % $ 126,826 21.0 % State and local taxes, net of federal tax effect 20,027 5.1 % 16,609 5.1 % 31,559 5.2 % Tax impact from foreign operations 7,922 2.0 % (5,040) (1.5) % 3,990 0.7 % Nondeductible expenses 9,133 2.4 % 9,396 2.9 % 10,654 1.8 % Stock compensation (7,468) (1.9) % (8,044) (2.5) % (7,421) (1.2) % Uncertain tax positions, true-up items, and other (1,389) (0.4) % (11,184) (3.5) % 6 — % Total $ 110,238 28.2 % $ 69,777 21.5 % $ 165,614 27.4 % 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, 2024 and March 31, 2023, comprise the following: March 31, 2024 March 31, 2023 Deferred tax assets: Deferred compensation expense/accrued bonus $ 109,416 $ 115,584 Allowance for credit losses 1,243 1,641 Accounts receivable and work in progress 9,577 9,978 US foreign tax credits 2,313 2,443 Operating lease liabilities 87,219 81,153 Non US 43,434 31,557 Other, net 6,051 8,735 Total deferred tax assets 259,253 251,091 Deferred tax asset valuation allowance (12,386) (3,376) Total deferred tax assets 246,867 247,715 Deferred tax liabilities: Intangibles (71,575) (70,657) Operating lease right-of-use assets (69,978) (72,218) Other, net (22,755) (443) Total deferred tax liabilities (164,308) (143,318) Net deferred tax assets $ 82,559 $ 104,397 The Company has various state and foreign net operating losses totaling $51,246. If not utilized, the state net operating loss carryforwards will begin to expire in fourteen years and foreign net operating loss carryforwards will begin to expire in four years, although in certain jurisdictions these attributes 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 US foreign tax credit carryforwards as of March 31, 2024 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 $2,313 and $2,443 against these assets for March 31, 2024 and 2023, 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 2029. 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, 2024 and 2023 of $10,072 and $933, respectively. The change in the total valuation allowance was an increase of $9,139 and a decrease of $5,858 during the years ended March 31, 2024 and March 31, 2023, respectively. We continue to consider the remaining balance of our undistributed foreign earnings to 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 certain additional foreign withholding taxes and/or U.S. federal and state income taxes. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable. As of March 31, 2024 and March 31, 2023, the Company had recorded liabilities for interest and penalties related to uncertain tax positions in the amounts of $576 and $1,023, respectively. Unrecognized tax positions totaled $15,800 and $14,825 as of March 31, 2024 and March 31, 2023, 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, 2024 and March 31, 2023 is as follows: March 31, 2024 March 31, 2023 Unrecognized tax position at the beginning of the year $ 14,825 $ 18,654 Increase related to prior year tax positions 2,233 4,102 Decrease related to prior year tax positions (1,258) (7,931) Unrecognized tax position at the end of the year $ 15,800 $ 14,825 The Company believes that it is reasonably possible that a decrease of up to $5.9 million in gross unrecognized income tax positions 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. The Company files consolidated federal income tax returns, as well as consolidated and separate returns in state and local jurisdictions. As of March 31, 2024, all of the federal income tax returns filed since 2021 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Earnings Per Share The calculations of basic and diluted earnings per share attributable to holders of shares of common stock are presented below. The determination of weighted average shares of common stock outstanding includes both the Company's Class A common stock and Class B common stock. Please refer to Note 15 for further detail on our two classes of authorized Company common stock Year Ended March 31, 2024 2023 2022 Numerator: Net income attributable to Houlihan Lokey, Inc. $ 280,301 $ 254,223 $ 437,751 Denominator: Weighted average shares of common stock outstanding — basic 64,337,975 63,358,408 64,970,287 Weighted average number of incremental shares pertaining to unvested restricted-stock and issuable in respect of unvested restricted stock units, as-calculated using the treasury stock method 3,821,415 4,227,855 3,289,421 Weighted average shares of common stock outstanding — diluted 68,159,390 67,586,263 68,259,708 Basic earnings per share $ 4.36 $ 4.01 $ 6.74 Diluted earnings per share $ 4.11 $ 3.76 $ 6.41 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2024 | |
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 $12,526, $10,640, and $5,294 to these plans during the years ended March 31, 2024, 2023, and 2022, 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. Restricted shares of Class A common stock were granted under the 2016 Incentive Plan to i) six independent directors in the first quarter of fiscal 2022 at $73.19 per share, (ii) six independent directors in the first quarter of fiscal 2023 at $84.55, and (iii) six independent directors in the first quarter of fiscal 2024 at $87.60. An excess tax benefit of $7,468 and $8,044 was recognized during the years ended March 31, 2024 and 2023, 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 $(70,713), $(42,283), and $(33,741) 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, 2024, 2023, and 2022, respectively. We recognize compensation expense for all stock-based awards, including restricted stock and restricted stock units ("RSU"s), based on the estimate of fair value of the award at the grant date. The fair value of each restricted stock and RSU award is measured based on the closing stock price of our common stock on the date of grant. We account for forfeitures as they occur. The compensation expense is recognized using a straight-line basis over the requisite service periods of the awards, which is four years. 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, 2024, 2023, and 2022, is as follows: Unvested Share Awards Shares Weighted Average Grant Date Fair Value Balance, April 1, 2021 2,744,605 $ 51.37 Granted 2,689,459 82.45 Vested (1,039,535) 47.77 Shares repurchased/forfeited (80,154) 61.14 Balance, March 31, 2022 4,314,375 71.42 Granted 2,266,088 84.78 Vested (1,175,311) 59.77 Shares repurchased/forfeited (123,373) 79.00 Balance, March 31, 2023 5,281,779 79.57 Granted 1,244,902 87.60 Vested (1,655,390) 74.28 Shares repurchased/forfeited (352,267) 84.05 Balance, March 31, 2024 4,519,024 $ 83.37 Activity in liability classified share awards during the years ended March 31, 2024, 2023, and 2022 is as follows: Awards Settleable in Shares Fair Value Balance, April 1, 2021 $ 16,950 Offer to grant 4,344 Share price determined-converted to cash payments (2,676) Share price determined-transferred to equity grants (1) (4,269) Forfeited — Balance, March 31, 2022 14,349 Offer to grant 5,318 Share price determined-converted to cash payments (2,664) Share price determined-transferred to equity grants (1) (3,411) Forfeited (1,621) Balance, March 31, 2023 11,971 Offer to grant 7,022 Share price determined-converted to cash payments (3) Share price determined-transferred to equity grants (1) (1,806) Forfeited — Balance, March 31, 2024 $ 17,184 (1) 40,702, 46,430, and 57,721 shares for the years ended March 31, 2024, 2023, and 2022, respectively. The following table summarizes the activity of our RSUs for the years ended March 31, 2024, 2023, and 2022, respectively. Restricted Stock Units RSUs Weighted Average Grant Date Fair Value RSUs as of April 1, 2021 38,475 $ 55.57 Issued 1,014,641 96.20 Forfeitures (2,159) 66.32 Vested (12,454) 53.80 RSUs as of March 31, 2022 1,038,503 95.27 Issued 50,556 84.55 Forfeitures (14,275) 96.82 Vested (24,138) 63.75 RSUs as of March 31, 2023 1,050,646 95.46 Issued 94,286 87.60 Forfeitures (266,883) 94.38 Vested (34,319) 91.07 RSUs as of March 31, 2024 843,730 $ 95.09 Compensation expenses for the Company associated with both equity-classified and liability-classified awards totaled $166,595, $156,936, and $91,875 for the years ended March 31, 2024, 2023, and 2022, respectively. As of March 31, 2024 and March 31, 2023 there was $298,100 and $367,607, respectively, of total unrecognized compensation cost related to unvested share awards granted under the 2016 Incentive Plan. These costs are recognized over a weighted average period of 2.9 years and 2.3 years, as of March 31, 2024 and March 31, 2023, 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. On April 28, 2022, our board of directors approved the registration of an additional 10,000,000 shares of Class A Common Stock and 10,000,000 shares of Class B Common Stock to be issued pursuant to the 2016 Incentive Plan. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Stockholders' Equity There are two classes of authorized Company 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. Class A common stock During the year ended March 31, 2024, the Company issued 6,609 shares to non-employee directors, and 1,942,078 shares were converted from Class B to Class A. During the year ended March 31, 2023, the Company issued 6,739 shares to non-employee directors, and 1,455,908 shares were converted from Class B to Class A. As of March 31, 2024, there were 52,283,576 Class A shares held by the public and 64,935 Class A shares held by non-employee directors. As of March 31, 2023, there were 50,580,598 Class A shares held by the public and 58,326 Class A shares held by non-employee directors. Class B common stock As of March 31, 2024, there were 16,746,676 Class B shares held by the HL Voting Trust. As of March 31, 2023, there were 18,048,345 Class B shares held by the HL Voting Trust. Dividends Previously declared dividends related to unvested shares of $22,883 and $18,608 were unpaid as of March 31, 2024 and 2023, 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 April 2022, the board of directors authorized an increase to the existing July 2021 share repurchase program, which provides for share repurchases of a new aggregate amount of up to $500.0 million of the Company's Class A common stock and Class B common stock. As of March 31, 2024, shares with a value of $457.7 million remained available for purchase under the program. During the years ended March 31, 2024, 2023, and 2022, the Company repurchased 772,794, 507,511, and 455,402 shares, respectively, of Class B common stock, to satisfy $70,713, $42,283, and $33,700 of required withholding taxes in connection with the vesting of restricted awards, respectively. During the years ended March 31, 2024, 2023, and 2022, the Company repurchased an additional 240,666, 677,287, and 3,272,399 shares of its outstanding common stock, respectively, at a weighted average price of $103.68, $85.74, and $94.35 per share, excluding commissions, for an aggregate purchase price of $24,952, $58,073, and $308,746, respectively. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
LEASES | Leases Lessee Arrangements Operating Leases We lease real estate and equipment used in operations from third parties. As of March 31, 2024, 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, 2024. Maturity of Operating Leases Operating Leases 2025 $ 41,348 2026 51,484 2027 50,205 2028 49,616 2029 48,914 2030 and thereafter 327,287 Total 568,854 Less: present value discount (153,442) Operating lease liabilities $ 415,412 As of March 31, 2024, the Company entered into operating leases for additional office space that have not yet commenced, for approximately $21 million. This operating lease will commence during fiscal year 2025 with a lease term of 5 years to 13 years. Lease costs March 31, 2024 March 31, 2023 Operating lease expense $ 57,436 $ 37,490 Variable lease expense (1) 19,493 18,556 Short-term lease expense 211 182 Less: Sublease income (1,059) (390) Total lease costs $ 76,081 $ 55,838 (1) Primarily consists of payments for property taxes, common area maintenance and usage based operating costs. Weighted-average details March 31, 2024 March 31, 2023 Weighted-average remaining lease term (years) 12 12 Weighted-average discount rate 5.3 % 4.7 % Supplemental cash flow information related to leases: March 31, 2024 March 31, 2023 Operating cash flows: Cash paid for amounts included in the measurement of Operating lease liabilities $ 34,341 $ 37,233 Non-cash activity: Operating lease right-of-use assets obtained in exchange of Operating lease liabilities $ 21,114 $ 194,656 Change in Operating lease right-of-use assets due to remeasurement 20,376 (11,799) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2024 | |
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 HLI Line of Credit. 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, 2024 or March 31, 2023. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 12 Months Ended |
Mar. 31, 2024 | |
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 legal and compliance. The following tables present information about revenues, profit and assets by segment and geography. Year Ended March 31, 2024 2023 2022 Revenues by segment: Corporate Finance $ 1,106,826 $ 1,127,126 $ 1,593,083 Financial Restructuring 521,984 395,733 392,818 Financial and Valuation Advisory 285,594 286,588 284,057 Revenues $ 1,914,404 $ 1,809,447 $ 2,269,958 Segment profit (1) Corporate Finance $ 302,533 $ 354,075 $ 606,268 Financial Restructuring 194,116 121,618 100,882 Financial and Valuation Advisory 74,422 81,388 88,136 Total segment profit 571,071 557,081 795,286 Corporate expenses (2) 208,210 215,343 182,422 Other (income)/expense, net (27,678) 17,738 8,926 Income before provision for income taxes $ 390,539 $ 324,000 $ 603,938 (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, legal and compliance, marketing, and human capital. March 31, 2024 March 31, 2023 March 31, 2022 Assets by segment Corporate Finance $ 1,147,432 $ 1,015,760 $ 994,623 Financial Restructuring 192,185 196,289 178,148 Financial and Valuation Advisory 170,627 165,395 155,853 Total segment assets 1,510,244 1,377,444 1,328,624 Corporate assets 1,660,515 1,591,370 1,558,186 Total assets $ 3,170,759 $ 2,968,814 $ 2,886,810 Year Ended March 31, 2024 2023 2022 Income before provision for income taxes by geography United States $ 256,472 $ 222,923 $ 424,358 International 134,067 101,077 179,580 Income before provision for income taxes $ 390,539 $ 324,000 $ 603,938 Year Ended March 31, 2024 2023 2022 Revenues by geography: United States $ 1,344,305 $ 1,289,365 $ 1,690,708 International 570,099 520,082 579,250 Revenues $ 1,914,404 $ 1,809,447 $ 2,269,958 March 31, 2024 March 31, 2023 March 31, 2022 Assets by geography United States $ 1,957,454 $ 1,861,296 $ 2,032,390 International 1,213,305 1,107,518 854,420 Total assets $ 3,170,759 $ 2,968,814 $ 2,886,810 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Subsequent Events On May 2, 2024, the Company's board of directors declared a quarterly cash dividend of $0.57 per share of Class A and Class B common stock, payable on June 15, 2024, to shareholders of record on June 3, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 280,301 | $ 254,223 | $ 437,751 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
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. |
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, valuation of acquired intangibles and 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 Expenses |
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. |
Fair Value Measurements | 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 Accounting Standards Codification ("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 and Loans payable to former shareholders, which are included in Loan payable to non-affiliate, approximate fair value due to the variable interest rate borne by those instruments. |
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, 2024 and 2023, 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, 2024 March 31, 2023 Cash and cash equivalents $ 721,235 $ 714,439 Restricted cash (1) 619 373 Total cash, cash equivalents, and restricted cash $ 721,854 $ 714,812 (1) Restricted cash represents cash deposits in support of two letters of credit for our Frankfurt office as of March 31, 2024 and one letter of credit for our Frankfurt office as of March 31, 2023. |
Investment Securities | 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 | 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 collectability 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 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. |
Income Taxes | Income Taxes The Company files consolidated federal income tax returns, 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. In 2021, the Organization for Economic Co-operation and Development (“OECD”) reached agreement among various countries to establish a 15% minimum tax on certain multinational enterprises, commonly referred to as Pillar Two. The EU effective dates are January 1, 2024 and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation with varying effective dates in the future. The Company is continuing to evaluate the potential impact on future periods of Pillar Two, pending legislative adoption by individual countries. |
Leases | Leases 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 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 during the fourth quarter for impairment and more frequently if potential impairment indicators exist. Goodwill is reviewed for impairment in accordance with ASC Topic 350, Intangibles – Goodwill and Other, as amended by Accounting Standards Update ("ASU") No. 2017-04, Simplifying the Test for Goodwill Impairment, which permits management to perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its corresponding carrying value. If management determines the reporting unit's fair value is more likely than not less than its carrying value, a quantitative analysis will be performed to compare the fair value of the reporting unit with its corresponding carrying value. If the conclusion of the quantitative analysis is that the fair value is in fact less than the carrying value, management will recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying value exceeds its fair value. Impairment testing of goodwill requires a significant amount of judgment in assessing both qualitative factors and if necessary, quantitative factors used to estimate the fair value of the reporting unit. As of March 31, 2024, 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 quantitative 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, 2024, management concluded that it was not more likely than not that the fair values were less than the carrying values. |
Business Combinations | Business Combinations We allocate the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date, with the excess consideration recognized as goodwill. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows, expected asset lives, geographic risk premiums, discount rates, and more. The amounts and useful lives assigned to acquisition-related intangible assets impact the amount and timing of future amortization expense. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 March 31, 2023 Cash and cash equivalents $ 721,235 $ 714,439 Restricted cash (1) 619 373 Total cash, cash equivalents, and restricted cash $ 721,854 $ 714,812 (1) Restricted cash represents cash deposits in support of two letters of credit for our Frankfurt office as of March 31, 2024 and one letter of credit for our Frankfurt office as of March 31, 2023. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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: March 31, 2024 March 31, 2023 Receivables, net (1) $ 192,952 $ 175,023 Unbilled work in progress, net of allowance for credit losses 192,012 115,045 Contract Assets (1) 6,678 7,006 Contract Liabilities (2) 33,139 40,695 (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, 2024 | |
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, 2024 Level I Level II Level III Total Corporate debt securities $ — $ 21,641 $ — $ 21,641 U.S. treasury securities — 15,833 — 15,833 Certificates of deposit — 531 — 531 Total asset measured at fair value $ — $ 38,005 $ — $ 38,005 March 31, 2023 Level I Level II Level III Total Corporate debt securities $ — $ 23,617 $ — $ 23,617 U.S. treasury securities — 12,990 — 12,990 Common stock 184 — — 184 Certificates of deposit — 518 — 518 Total asset measured at fair value $ 184 $ 37,125 $ — $ 37,309 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Held-to-maturity | The amortized cost and gross unrealized gains (losses) of marketable investment securities accounted under the fair value method were as follows: March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 22,318 $ 8 $ (685) $ 21,641 U.S. treasury securities 16,071 110 (348) 15,833 Certificates of deposit 531 — — 531 Total securities with unrealized gains/(losses) $ 38,920 $ 118 $ (1,033) $ 38,005 March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Corporate debt securities $ 24,936 $ 6 $ (1,325) $ 23,617 U.S. treasury securities 13,400 15 (425) 12,990 Common stock 768 — (584) 184 Certificates of deposit 518 — — 518 Total securities with unrealized gains/(losses) $ 39,622 $ 21 $ (2,334) $ 37,309 |
Investments Classified by Contractual Maturity Date | Scheduled maturities of the securities held by the Company included within the investment securities portfolio were as follows: March 31, 2024 March 31, 2023 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 7,592 $ 7,566 $ 6,243 $ 6,254 Due within years two through five 31,328 30,439 33,379 31,055 Total debt within the investment securities portfolio $ 38,920 $ 38,005 $ 39,622 $ 37,309 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Allowance for Uncollectible Accounts Receivable | The following table presents information about the Company's allowance for credit losses: March 31, 2024 March 31, 2023 Beginning balance $ 14,395 $ 13,274 Provision for bad debt, net 7,264 6,429 Write-off of uncollectible accounts, net (6,760) (5,308) Ending balance $ 14,899 $ 14,395 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 March 31, 2023 Equipment 5 years $ 9,972 $ 10,178 Furniture and fixtures 5 years 29,672 19,508 Leasehold improvements 10 years 144,996 107,156 Computers and software 3 years 12,282 12,086 Other Various 8,088 7,411 Total cost 205,010 156,339 Less: accumulated depreciation (68,309) (67,994) Total net book value $ 136,701 $ 88,345 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table provides a reconciliation of Goodwill and other intangible assets, net reported on the Consolidated Balance Sheets. Useful Lives March 31, 2024 March 31, 2023 Goodwill Indefinite $ 1,127,497 $ 1,087,784 Tradename-Houlihan Lokey Indefinite 192,210 192,210 Other intangible assets Varies 98,897 93,917 Total cost 1,418,604 1,373,911 Less: accumulated amortization (93,668) (82,757) Goodwill and other intangible assets, net $ 1,324,936 $ 1,291,154 |
Finite-lived Intangible Assets Amortization Expense | The estimated future amortization for finite-lived intangible assets for each of the next five years and thereafter are as follows: Year Ended March 31, 2025 $ 4,926 2026 — 2027 — 2028 — 2029 and thereafter — |
Schedule of Goodwill by Business Segment | Goodwill attributable to the Co mpany’s business segments is as follows: April 1, 2023 Change (1) March 31, 2024 Corporate Finance $ 833,254 $ 39,713 $ 872,967 Financial Restructuring 162,815 — 162,815 Financial and Valuation Advisory 91,715 — 91,715 Goodwill $ 1,087,784 $ 39,713 $ 1,127,497 (1) Changes pertain primarily to the acquisition of 7 Mile Advisors, LLC. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive (loss) as of March 31, 2024, 2023, and 2022, was comprised of the following: Total Balance, March 31, 2022 $ (43,347) Foreign currency translation adjustments (19,467) Balance, March 31, 2023 (62,814) Foreign currency translation adjustments (3,794) Balance, March 31, 2024 $ (66,608) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024, 2023, and 2022 is comprised of the following approximate values: Year Ended March 31, 2024 2023 2022 Current: Federal $ 40,838 $ 66,529 $ 134,054 State and local 16,116 4,819 58,568 Foreign 32,814 1,875 44,060 Subtotal 89,768 73,223 236,682 Deferred: Federal 14,116 1,605 (52,088) State and local 3,498 1,092 (18,348) Foreign 2,856 (6,143) (632) Subtotal 20,470 (3,446) (71,068) Total $ 110,238 $ 69,777 $ 165,614 |
Effective Income Tax Rate Reconciliation | The provision for income taxes on operations for the years ended March 31, 2024, 2023, and 2022 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, 2024 2023 2022 Federal income tax provision computed at statutory rate $ 82,013 21.0 % $ 68,040 21.0 % $ 126,826 21.0 % State and local taxes, net of federal tax effect 20,027 5.1 % 16,609 5.1 % 31,559 5.2 % Tax impact from foreign operations 7,922 2.0 % (5,040) (1.5) % 3,990 0.7 % Nondeductible expenses 9,133 2.4 % 9,396 2.9 % 10,654 1.8 % Stock compensation (7,468) (1.9) % (8,044) (2.5) % (7,421) (1.2) % Uncertain tax positions, true-up items, and other (1,389) (0.4) % (11,184) (3.5) % 6 — % Total $ 110,238 28.2 % $ 69,777 21.5 % $ 165,614 27.4 % |
Schedule of Deferred Tax Assets and Liabilities | The deferred income taxes on the accompanying Consolidated Balance Sheets as of March 31, 2024 and March 31, 2023, comprise the following: March 31, 2024 March 31, 2023 Deferred tax assets: Deferred compensation expense/accrued bonus $ 109,416 $ 115,584 Allowance for credit losses 1,243 1,641 Accounts receivable and work in progress 9,577 9,978 US foreign tax credits 2,313 2,443 Operating lease liabilities 87,219 81,153 Non US 43,434 31,557 Other, net 6,051 8,735 Total deferred tax assets 259,253 251,091 Deferred tax asset valuation allowance (12,386) (3,376) Total deferred tax assets 246,867 247,715 Deferred tax liabilities: Intangibles (71,575) (70,657) Operating lease right-of-use assets (69,978) (72,218) Other, net (22,755) (443) Total deferred tax liabilities (164,308) (143,318) Net deferred tax assets $ 82,559 $ 104,397 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the unrecognized tax position as of March 31, 2024 and March 31, 2023 is as follows: March 31, 2024 March 31, 2023 Unrecognized tax position at the beginning of the year $ 14,825 $ 18,654 Increase related to prior year tax positions 2,233 4,102 Decrease related to prior year tax positions (1,258) (7,931) Unrecognized tax position at the end of the year $ 15,800 $ 14,825 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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. The determination of weighted average shares of common stock outstanding includes both the Company's Class A common stock and Class B common stock. Please refer to Note 15 for further detail on our two classes of authorized Company common stock Year Ended March 31, 2024 2023 2022 Numerator: Net income attributable to Houlihan Lokey, Inc. $ 280,301 $ 254,223 $ 437,751 Denominator: Weighted average shares of common stock outstanding — basic 64,337,975 63,358,408 64,970,287 Weighted average number of incremental shares pertaining to unvested restricted-stock and issuable in respect of unvested restricted stock units, as-calculated using the treasury stock method 3,821,415 4,227,855 3,289,421 Weighted average shares of common stock outstanding — diluted 68,159,390 67,586,263 68,259,708 Basic earnings per share $ 4.36 $ 4.01 $ 6.74 Diluted earnings per share $ 4.11 $ 3.76 $ 6.41 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024, 2023, and 2022, is as follows: Unvested Share Awards Shares Weighted Average Grant Date Fair Value Balance, April 1, 2021 2,744,605 $ 51.37 Granted 2,689,459 82.45 Vested (1,039,535) 47.77 Shares repurchased/forfeited (80,154) 61.14 Balance, March 31, 2022 4,314,375 71.42 Granted 2,266,088 84.78 Vested (1,175,311) 59.77 Shares repurchased/forfeited (123,373) 79.00 Balance, March 31, 2023 5,281,779 79.57 Granted 1,244,902 87.60 Vested (1,655,390) 74.28 Shares repurchased/forfeited (352,267) 84.05 Balance, March 31, 2024 4,519,024 $ 83.37 |
Activity in Liability Classified Share Awards | Activity in liability classified share awards during the years ended March 31, 2024, 2023, and 2022 is as follows: Awards Settleable in Shares Fair Value Balance, April 1, 2021 $ 16,950 Offer to grant 4,344 Share price determined-converted to cash payments (2,676) Share price determined-transferred to equity grants (1) (4,269) Forfeited — Balance, March 31, 2022 14,349 Offer to grant 5,318 Share price determined-converted to cash payments (2,664) Share price determined-transferred to equity grants (1) (3,411) Forfeited (1,621) Balance, March 31, 2023 11,971 Offer to grant 7,022 Share price determined-converted to cash payments (3) Share price determined-transferred to equity grants (1) (1,806) Forfeited — Balance, March 31, 2024 $ 17,184 (1) 40,702, 46,430, and 57,721 shares for the years ended March 31, 2024, 2023, and 2022, respectively. |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table summarizes the activity of our RSUs for the years ended March 31, 2024, 2023, and 2022, respectively. Restricted Stock Units RSUs Weighted Average Grant Date Fair Value RSUs as of April 1, 2021 38,475 $ 55.57 Issued 1,014,641 96.20 Forfeitures (2,159) 66.32 Vested (12,454) 53.80 RSUs as of March 31, 2022 1,038,503 95.27 Issued 50,556 84.55 Forfeitures (14,275) 96.82 Vested (24,138) 63.75 RSUs as of March 31, 2023 1,050,646 95.46 Issued 94,286 87.60 Forfeitures (266,883) 94.38 Vested (34,319) 91.07 RSUs as of March 31, 2024 843,730 $ 95.09 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024. Maturity of Operating Leases Operating Leases 2025 $ 41,348 2026 51,484 2027 50,205 2028 49,616 2029 48,914 2030 and thereafter 327,287 Total 568,854 Less: present value discount (153,442) Operating lease liabilities $ 415,412 |
Lease, Cost | Lease costs March 31, 2024 March 31, 2023 Operating lease expense $ 57,436 $ 37,490 Variable lease expense (1) 19,493 18,556 Short-term lease expense 211 182 Less: Sublease income (1,059) (390) Total lease costs $ 76,081 $ 55,838 (1) Primarily consists of payments for property taxes, common area maintenance and usage based operating costs. Weighted-average details March 31, 2024 March 31, 2023 Weighted-average remaining lease term (years) 12 12 Weighted-average discount rate 5.3 % 4.7 % Supplemental cash flow information related to leases: March 31, 2024 March 31, 2023 Operating cash flows: Cash paid for amounts included in the measurement of Operating lease liabilities $ 34,341 $ 37,233 Non-cash activity: Operating lease right-of-use assets obtained in exchange of Operating lease liabilities $ 21,114 $ 194,656 Change in Operating lease right-of-use assets due to remeasurement 20,376 (11,799) |
SEGMENT AND GEOGRAPHICAL INFO_2
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 2022 Revenues by segment: Corporate Finance $ 1,106,826 $ 1,127,126 $ 1,593,083 Financial Restructuring 521,984 395,733 392,818 Financial and Valuation Advisory 285,594 286,588 284,057 Revenues $ 1,914,404 $ 1,809,447 $ 2,269,958 Segment profit (1) Corporate Finance $ 302,533 $ 354,075 $ 606,268 Financial Restructuring 194,116 121,618 100,882 Financial and Valuation Advisory 74,422 81,388 88,136 Total segment profit 571,071 557,081 795,286 Corporate expenses (2) 208,210 215,343 182,422 Other (income)/expense, net (27,678) 17,738 8,926 Income before provision for income taxes $ 390,539 $ 324,000 $ 603,938 (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, legal and compliance, marketing, and human capital. March 31, 2024 March 31, 2023 March 31, 2022 Assets by segment Corporate Finance $ 1,147,432 $ 1,015,760 $ 994,623 Financial Restructuring 192,185 196,289 178,148 Financial and Valuation Advisory 170,627 165,395 155,853 Total segment assets 1,510,244 1,377,444 1,328,624 Corporate assets 1,660,515 1,591,370 1,558,186 Total assets $ 3,170,759 $ 2,968,814 $ 2,886,810 |
Revenue and Income Before Provision for Income Taxes by Geographic Areas | Year Ended March 31, 2024 2023 2022 Income before provision for income taxes by geography United States $ 256,472 $ 222,923 $ 424,358 International 134,067 101,077 179,580 Income before provision for income taxes $ 390,539 $ 324,000 $ 603,938 Year Ended March 31, 2024 2023 2022 Revenues by geography: United States $ 1,344,305 $ 1,289,365 $ 1,690,708 International 570,099 520,082 579,250 Revenues $ 1,914,404 $ 1,809,447 $ 2,269,958 |
Assets by Geographic Areas | March 31, 2024 March 31, 2023 March 31, 2022 Assets by geography United States $ 1,957,454 $ 1,861,296 $ 2,032,390 International 1,213,305 1,107,518 854,420 Total assets $ 3,170,759 $ 2,968,814 $ 2,886,810 |
BACKGROUND (Details)
BACKGROUND (Details) | 12 Months Ended |
Mar. 31, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 3 |
- Revenues (Narrative) (Details
- Revenues (Narrative) (Details) | 12 Months Ended |
Mar. 31, 2024 segment | |
Accounting Policies [Abstract] | |
Number of business segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Translation of Foreign Currency Transactions (Narrative) (Details) | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) numberOfInstruments | Mar. 31, 2024 EUR (€) numberOfInstruments | |
Derivative [Line Items] | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other operating expenses | Other operating expenses | |
Foreign currency forward contract | |||
Derivative [Line Items] | |||
Notional amount | $ 6,500,000 | € 38,300,000 | |
Gain (loss) included in other operating expenses | $ | $ 55,000 | $ 35,000 | |
Derivative, Number of Instruments Held | numberOfInstruments | 1 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 721,235 | $ 714,439 | ||
Restricted cash (1) | 619 | 373 | ||
Total cash, cash equivalents, and restricted cash | $ 721,854 | $ 714,812 | $ 834,070 | $ 847,224 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue | $ 28.4 | $ 16.8 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Receivables, Contract Assets, and Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, net | $ 192,952 | $ 175,023 |
Unbilled work in progress, net of allowance for credit losses | 192,012 | 115,045 |
Contract assets | 6,678 | 7,006 |
Contract liabilities | $ 33,139 | $ 40,695 |
RELATED_PARTY TRANSACTIONS (Det
RELATED‑PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Accounts receivable, net of allowance for credit losses | $ 199,630 | $ 182,029 | |
Unbilled work in progress, net of allowance for credit losses | 192,012 | 115,045 | |
Other assets | 90,677 | 83,609 | |
Financial and Valuation Advisory | |||
Related Party Transaction [Line Items] | |||
Financial advisory services fees | 9,044 | 284 | $ 0 |
Company Employees | |||
Related Party Transaction [Line Items] | |||
Other assets | 32,937 | $ 28,869 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Accounts receivable, net of allowance for credit losses | 37 | ||
Unbilled work in progress, net of allowance for credit losses | $ 7,191 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | $ 38,005 | $ 37,309 |
Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | 0 | 184 |
Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset measured at fair value | 38,005 | 37,125 |
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 | 21,641 | 23,617 |
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 | 21,641 | 23,617 |
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 | 15,833 | 12,990 |
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 | 15,833 | 12,990 |
U.S. treasury securities | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 184 | |
Common stock | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 184 | |
Common stock | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | |
Common stock | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 531 | 518 |
Certificates of deposit | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Certificates of deposit | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 531 | 518 |
Certificates of deposit | 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, 2024 | Mar. 31, 2023 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 38,920 | |
Gross Unrealized Gains | 118 | |
Gross Unrealized (Losses) | (1,033) | |
Fair Value | 38,005 | |
Amortized Cost | $ 39,622 | |
Gross Unrealized Gains | 21 | |
Gross Unrealized (Losses) | (2,334) | |
Fair Value | 37,309 | |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 22,318 | |
Gross Unrealized Gains | 8 | |
Gross Unrealized (Losses) | (685) | |
Fair Value | 21,641 | |
Amortized Cost | 24,936 | |
Gross Unrealized Gains | 6 | |
Gross Unrealized (Losses) | (1,325) | |
Fair Value | 23,617 | |
U.S. treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 16,071 | |
Gross Unrealized Gains | 110 | |
Gross Unrealized (Losses) | (348) | |
Fair Value | 15,833 | |
Amortized Cost | 13,400 | |
Gross Unrealized Gains | 15 | |
Gross Unrealized (Losses) | (425) | |
Fair Value | 12,990 | |
Common stock | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 768 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized (Losses) | (584) | |
Fair Value | 184 | |
Certificates of deposit | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 531 | 518 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | 0 | 0 |
Fair Value | $ 531 | $ 518 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Investment Contractual Maturity Dates (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year, amortized cost | $ 7,592 | $ 6,243 |
Due within one year, estimated fair value | 7,566 | 6,254 |
Die within one year through five years, amortized cost | 31,328 | 33,379 |
Due within one year through five years, fair value | 30,439 | 31,055 |
Amortized cost | 38,920 | 39,622 |
Fair value | $ 38,005 | $ 37,309 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for Uncollectible Accounts Receivable | |||
Beginning balance | $ 14,395 | $ 13,274 | |
Provision for bad debt, net | 7,264 | 6,429 | $ 3,718 |
Recovery or write-off of uncollectible accounts | (6,760) | (5,308) | |
Ending balance | $ 14,899 | $ 14,395 | $ 13,274 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 205,010 | $ 156,339 | |
Less: accumulated depreciation | (68,309) | (67,994) | |
Total net book value | 136,701 | 88,345 | |
Depreciation | $ 17,782 | 13,250 | $ 14,600 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Total cost | $ 9,972 | 10,178 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Total cost | $ 29,672 | 19,508 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 10 years | ||
Total cost | $ 144,996 | 107,156 | |
Computers and software | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 3 years | ||
Total cost | $ 12,282 | 12,086 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 8,088 | $ 7,411 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 1,127,497 | $ 1,087,784 |
Tradename-Houlihan Lokey | 192,210 | 192,210 |
Other intangible assets | 98,897 | 93,917 |
Total cost | 1,418,604 | 1,373,911 |
Less: accumulated amortization | (93,668) | (82,757) |
Goodwill and other intangible assets, net | $ 1,324,936 | $ 1,291,154 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 10,754 | $ 44,971 | $ 33,937 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Amortization Expense, Fiscal Year Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
(In thousands) | |
2025 | $ 4,926 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029 and thereafter | $ 0 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Business Segments (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill | |
April 1, 2023 | $ 1,087,784 |
Changes | 39,713 |
March 31, 2023 | 1,127,497 |
Corporate Finance | |
Goodwill | |
April 1, 2023 | 833,254 |
Changes | 39,713 |
March 31, 2023 | 872,967 |
Financial Restructuring | |
Goodwill | |
April 1, 2023 | 162,815 |
Changes | 0 |
March 31, 2023 | 162,815 |
Financial and Valuation Advisory | |
Goodwill | |
April 1, 2023 | 91,715 |
Changes | 0 |
March 31, 2023 | $ 91,715 |
LOANS PAYABLE (Details)
LOANS PAYABLE (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2020 | Aug. 23, 2019 | Dec. 31, 2023 | Dec. 31, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | May 31, 2018 | |
Loans Payable | Non Interest Bearing Unsecured Convertible Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Loans payable, face amount | $ 4,500,000 | $ 12,900,000 | ||||||
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 | $ 0 | 18,000 | $ 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 | 58,000 | 81,000 | $ 79,000 | |||||
Stated interest rate | 2.75% | |||||||
Exchange period | 4 years | |||||||
Loans Payable | 2.00% Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Loans payable, face amount | $ 14,500,000 | |||||||
Interest and unused commitment fees paid | 88,000 | |||||||
Stated interest rate | 2% | |||||||
Exchange period | 3 years | |||||||
Revolving line of credit | Bank of America | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | |||||||
Margin adjustment | 1% | |||||||
Principal outstanding | 0 | 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 | |||||||
Baylor Klein, Ltd | ||||||||
Debt Instrument [Line Items] | ||||||||
Contingent consideration | 9,000,000 | $ 18,100,000 | ||||||
7 Mile Advisors, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Contingent consideration | $ 4,000,000 | |||||||
Secured Overnight Financing Rate (SOFR) | Revolving line of credit | Bank of America | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate on line of credit | 0.10% | |||||||
Fed Funds Effective Rate Overnight Index Swap Rate | Revolving line of credit | Bank of America | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate on line of credit | 0.50% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Loss | |||
Foreign currency translation adjustments | $ (3,794) | $ (19,467) | $ (23,171) |
Accumulated other comprehensive loss | |||
Accumulated Other Comprehensive Loss | |||
Beginning balance | (62,814) | (43,347) | |
Ending balance | $ (66,608) | $ (62,814) | $ (43,347) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Tax Credit Carryforward [Line Items] | |||
Provision for income taxes | $ 110,238 | $ 69,777 | $ 165,614 |
Effective tax rate | 28.20% | 21.50% | 27.40% |
Deferred tax asset, foreign net operating losses | $ 51,246 | ||
Deferred tax assets, valuation allowance | 10,072 | $ 933 | |
Decrease in deferred tax assets valuation allowance | 9,139 | 5,858 | |
Recorded liabilities for interest and penalties related to uncertain tax positions | 576 | 1,023 | |
Unrecognized tax benefits | 15,800 | 14,825 | $ 18,654 |
Reasonably possible decrease in gross unrecognized income tax benefits for federal and state items may be necessary within the next 12 months | 5,900 | ||
Foreign Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward, amount | $ 2,313 | $ 2,443 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) for Income Taxes on Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Current: | |||
Federal | $ 40,838 | $ 66,529 | $ 134,054 |
State and local | 16,116 | 4,819 | 58,568 |
Foreign | 32,814 | 1,875 | 44,060 |
Current income tax expense (benefit) | 89,768 | 73,223 | 236,682 |
Deferred: | |||
Federal | 14,116 | 1,605 | (52,088) |
State and local | 3,498 | 1,092 | (18,348) |
Foreign | 2,856 | (6,143) | (632) |
Deferred income tax expense (benefit) | 20,470 | (3,446) | (71,068) |
Total | $ 110,238 | $ 69,777 | $ 165,614 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Federal income tax provision computed at statutory rate | $ 82,013 | $ 68,040 | $ 126,826 |
State and local taxes, net of federal tax effect | 20,027 | 16,609 | 31,559 |
Tax impact from foreign operations | 7,922 | (5,040) | 3,990 |
Nondeductible expenses | 9,133 | 9,396 | 10,654 |
Stock compensation | (7,468) | (8,044) | (7,421) |
Uncertain tax positions, true-up items, and other | (1,389) | (11,184) | 6 |
Total | $ 110,238 | $ 69,777 | $ 165,614 |
Effective Income Tax Rate Reconciliation, Percent | |||
Federal income tax provision computed at statutory rate | 21% | 21% | 21% |
State and local taxes, net of federal tax effect | 5.10% | 5.10% | 5.20% |
Tax impact from foreign operations | 2% | (1.50%) | 0.70% |
Nondeductible expenses | 2.40% | 2.90% | 1.80% |
Stock compensation | (1.90%) | (2.50%) | (1.20%) |
Uncertain tax positions, true-up items, and other | (0.40%) | (3.50%) | 0% |
Total | 28.20% | 21.50% | 27.40% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Deferred tax assets: | ||
Deferred compensation expense/accrued bonus | $ 109,416 | $ 115,584 |
Allowance for credit losses | 1,243 | 1,641 |
Accounts receivable and work in progress | 9,577 | 9,978 |
US foreign tax credits | 2,313 | 2,443 |
Operating lease liabilities | 87,219 | 81,153 |
Non US | 43,434 | 31,557 |
Other, net | 6,051 | 8,735 |
Total deferred tax assets | 259,253 | 251,091 |
Deferred tax asset valuation allowance | (12,386) | (3,376) |
Total deferred tax assets | 246,867 | 247,715 |
Deferred tax liabilities: | ||
Intangibles | (71,575) | (70,657) |
Operating lease right-of-use assets | (69,978) | (72,218) |
Other, net | (22,755) | (443) |
Total deferred tax liabilities | (164,308) | (143,318) |
Net deferred tax assets | $ 82,559 | $ 104,397 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation of Unrecognized Tax Benefits | ||
Unrecognized tax position at the beginning of the year | $ 14,825 | $ 18,654 |
Increase related to prior year tax positions | 2,233 | 4,102 |
Decrease related to prior year tax positions | (1,258) | (7,931) |
Unrecognized tax position at the end of the year | $ 15,800 | $ 14,825 |
NET INCOME PER SHARE ATTRIBUTAB
NET INCOME PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | |||
Comprehensive income attributable to Houlihan Lokey, Inc. | $ 276,507 | $ 234,756 | $ 414,580 |
Denominator: | |||
Weighted average shares of common stock outstanding—basic (in shares) | 64,337,975 | 63,358,408 | 64,970,287 |
Weighted average number of incremental shares issuable from unvested restricted stock and restricted stock units, as calculated using the treasury stock method (in shares) | 3,821,415 | 4,227,855 | 3,289,421 |
Weighted average shares of common stock outstanding—diluted (in shares) | 68,159,390 | 67,586,263 | 68,259,708 |
Basic (in usd per share) | $ 4.36 | $ 4.01 | $ 6.74 |
Diluted (in usd per share) | $ 4.11 | $ 3.76 | $ 6.41 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Defined contribution plan, amount of contributions | $ 12,526 | $ 10,640 | $ 5,294 |
EMPLOYEE BENEFIT PLANS - Share-
EMPLOYEE BENEFIT PLANS - Share-Based Incentive Plans Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | |||||
Oct. 19, 2017 shares | Aug. 31, 2015 | Jun. 30, 2023 director $ / shares | Jun. 30, 2022 director $ / shares | Mar. 31, 2024 USD ($) $ / shares | Mar. 31, 2023 USD ($) $ / shares | Mar. 31, 2022 USD ($) $ / shares | Jun. 30, 2022 director $ / shares | Apr. 28, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation, excess tax benefit amount | $ | $ 7,468 | $ 8,044 | $ 7,421 | ||||||
Payments related to tax withholding for share-based compensation | $ | (70,713) | (42,283) | (33,741) | ||||||
Compensation expense — equity and liability classified share awards (Note 14) | $ | 166,595 | 156,936 | $ 91,875 | ||||||
Unrecognized compensation cost | $ | $ 298,100 | $ 367,607 | |||||||
Unrecognized compensation cost, period for recognition | 2 years 10 months 24 days | 2 years 3 months 18 days | |||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award requisite service period | 4 years | ||||||||
2006 Incentive Plan | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in usd per share) | $ / shares | $ 87.60 | $ 84.78 | $ 82.45 | ||||||
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, number of recipients | director | 6 | 6 | 6 | ||||||
Granted (in usd per share) | $ / shares | $ 87.60 | $ 84.55 | $ 73.19 | ||||||
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) | 10,000,000 | ||||||||
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) | 10,000,000 | ||||||||
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% | ||||||||
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% |
EMPLOYEE BENEFIT PLANS - Activi
EMPLOYEE BENEFIT PLANS - Activity in Equity Classified Share Awards (Details) - 2006 Incentive Plan - Restricted Stock - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Shares | |||
Beginning balance (in shares) | 5,281,779 | 4,314,375 | 2,744,605 |
Granted (in shares) | 1,244,902 | 2,266,088 | 2,689,459 |
Vested (in shares) | (1,655,390) | (1,175,311) | (1,039,535) |
Forfeited (in shares) | (123,373) | (80,154) | |
Shares repurchased/forfeited (in shares) | (352,267) | ||
Ending balance (in shares) | 4,519,024 | 5,281,779 | 4,314,375 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 79.57 | $ 71.42 | $ 51.37 |
Granted (in usd per share) | 87.60 | 84.78 | 82.45 |
Vested (in usd per share) | 74.28 | 59.77 | 47.77 |
Forfeited (in usd per share) | 84.05 | 79 | 61.14 |
Ending balance (in usd per share) | $ 83.37 | $ 79.57 | $ 71.42 |
EMPLOYEE BENEFIT PLANS - Acti_2
EMPLOYEE BENEFIT PLANS - Activity in Liability Classified Shares (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Liability Classified Awards Settleable in Shares | |||
Beginning balance | $ 11,971 | $ 14,349 | $ 16,950 |
Offer to grant | 7,022 | 5,318 | 4,344 |
Share price determined-converted to cash payments | (3) | (2,664) | (2,676) |
Share price determined-transferred to equity grants | (1,806) | (3,411) | (4,269) |
Forfeited | 0 | (1,621) | 0 |
Ending balance | $ 17,184 | $ 11,971 | $ 14,349 |
Share price determined-transferred to equity grants (in shares) | 40,702 | 46,430 | 57,721 |
EMPLOYEE BENEFIT PLANS - Shar_2
EMPLOYEE BENEFIT PLANS - Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
RSUs | |||
Beginning balance (in shares) | 1,050,646 | 1,038,503 | 38,475 |
Issued (in shares) | 94,286 | 50,556 | 1,014,641 |
Forfeitures (in shares) | (266,883) | (14,275) | (2,159) |
Vested (in shares) | (34,319) | (24,138) | (12,454) |
Ending balance (in shares) | 843,730 | 1,050,646 | 1,038,503 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 95.46 | $ 95.27 | $ 55.57 |
Granted (in usd per share) | 87.60 | 84.55 | 96.20 |
Forfeitures (in usd per share) | 94.38 | 96.82 | 66.32 |
Vested (in usd per share) | 91.07 | 63.75 | 53.80 |
Ending balance (in usd per share) | $ 95.09 | $ 95.46 | $ 95.27 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | 12 Months Ended | ||||
Mar. 31, 2024 USD ($) class_of_stock vote $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Jul. 31, 2021 USD ($) | Mar. 31, 2021 shares | |
Class of Stock [Line Items] | |||||
Number of classes of common stock | class_of_stock | 2 | ||||
Conversion ratio of common stock | 1 | ||||
Dividends outstanding | $ | $ 22,883,000 | $ 18,608,000 | |||
Stock repurchase program, authorized amount | $ | $ 500,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 457,700,000 | ||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 103.68 | $ 85.74 | $ 94.35 | ||
Class A | |||||
Class of Stock [Line Items] | |||||
Common stock voting rights, number of votes per share | vote | 1 | ||||
Shares issued of common stock (in shares) | 52,348,511 | 50,638,924 | |||
Number of common shares outstanding (in shares) | 52,348,511 | 50,638,924 | |||
Stock repurchased and retired during period, shares (in shares) | 240,666,000 | 677,287 | 3,272,399 | ||
Stock repurchased and retired during period, value | $ | $ 24,952,000 | $ 58,073,000 | $ 308,746,000 | ||
Class B | |||||
Class of Stock [Line Items] | |||||
Common stock voting rights, number of votes per share | vote | 10 | ||||
Shares issued of common stock (in shares) | 16,746,676 | 18,048,345 | |||
Number of common shares outstanding (in shares) | 16,746,676 | 18,048,345 | |||
Stock repurchased and retired during period, shares (in shares) | 772,794,000 | 507,511,000 | 455,402,000 | ||
Stock repurchased and retired during period, value | $ | $ 70,713,000 | $ 42,283,000 | $ 33,700,000 | ||
Director | Class A | |||||
Class of Stock [Line Items] | |||||
Shares issued to non-employee directors (in shares) | 6,609 | 6,739 | |||
Investor | Class A | |||||
Class of Stock [Line Items] | |||||
Shares issued of common stock (in shares) | 52,283,576 | 50,580,598 | |||
Common stock | Class A | |||||
Class of Stock [Line Items] | |||||
Shares issued to non-employee directors (in shares) | 6,609 | 6,739 | 6,512 | ||
Shares converted from Class B to Class A (in shares) | 1,942,078 | 1,455,908 | |||
Number of common shares outstanding (in shares) | 52,348,511 | 50,638,924 | 49,853,564 | 51,245,442 | |
Common stock | Class B | |||||
Class of Stock [Line Items] | |||||
Number of common shares outstanding (in shares) | 16,746,676 | 18,048,345 | 17,649,555 | 16,951,696 | |
Director | Class A | |||||
Class of Stock [Line Items] | |||||
Shares issued of common stock (in shares) | 64,935 | 58,326 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Lessee, Lease, Description [Line Items] | |
Lease not yet commenced, amount | $ 21 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Operating lease, lease not yet commenced, term of contract | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 16 years |
Operating lease, lease not yet commenced, term of contract | 13 years |
LEASES - Maturity of Existing O
LEASES - Maturity of Existing Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
2025 | $ 41,348 | |
2026 | 51,484 | |
2027 | 50,205 | |
2028 | 49,616 | |
2029 | 48,914 | |
2030 and thereafter | 327,287 | |
Total | 568,854 | |
Less: present value discount | (153,442) | |
Operating lease liabilities | $ 415,412 | $ 374,869 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease expense | $ 57,436 | $ 37,490 |
Variable lease expense (1) | 19,493 | 18,556 |
Short-term lease expense | 211 | 182 |
Less: Sublease income | (1,059) | (390) |
Total lease costs | $ 76,081 | $ 55,838 |
LEASES - Weighted Average Detai
LEASES - Weighted Average Details (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 12 years | 12 years |
Weighted-average discount rate | 5.30% | 4.70% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of Operating lease liabilities | $ 34,341 | $ 37,233 |
Operating lease right-of-use assets obtained in exchange of Operating lease liabilities | 21,114 | 194,656 |
Change in Operating lease right-of-use assets due to remeasurement | $ 20,376 | $ (11,799) |
SEGMENT AND GEOGRAPHICAL INFO_3
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,914,404 | $ 1,809,447 | $ 2,269,958 |
Segment profit | 571,071 | 557,081 | 795,286 |
Corporate expenses (2) | (1,551,543) | (1,467,709) | (1,657,094) |
Other (income)/expense, net | (27,678) | 17,738 | 8,926 |
Income before provision for income taxes | 390,539 | 324,000 | 603,938 |
Assets | 3,170,759 | 2,968,814 | 2,886,810 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,510,244 | 1,377,444 | 1,328,624 |
Operating Segments | Corporate Finance | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,106,826 | 1,127,126 | 1,593,083 |
Segment profit | 302,533 | 354,075 | 606,268 |
Assets | 1,147,432 | 1,015,760 | 994,623 |
Operating Segments | Financial Restructuring | |||
Segment Reporting Information [Line Items] | |||
Revenues | 521,984 | 395,733 | 392,818 |
Segment profit | 194,116 | 121,618 | 100,882 |
Assets | 192,185 | 196,289 | 178,148 |
Operating Segments | Financial and Valuation Advisory | |||
Segment Reporting Information [Line Items] | |||
Revenues | 285,594 | 286,588 | 284,057 |
Segment profit | 74,422 | 81,388 | 88,136 |
Assets | 170,627 | 165,395 | 155,853 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Corporate expenses (2) | (208,210) | (215,343) | (182,422) |
Assets | $ 1,660,515 | $ 1,591,370 | $ 1,558,186 |
SEGMENT AND GEOGRAPHICAL INFO_4
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue and Assets by Geographical Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before provision for income taxes | $ 390,539 | $ 324,000 | $ 603,938 |
Revenues | 1,914,404 | 1,809,447 | 2,269,958 |
Assets | 3,170,759 | 2,968,814 | 2,886,810 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before provision for income taxes | 256,472 | 222,923 | 424,358 |
Revenues | 1,344,305 | 1,289,365 | 1,690,708 |
Assets | 1,957,454 | 1,861,296 | 2,032,390 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before provision for income taxes | 134,067 | 101,077 | 179,580 |
Revenues | 570,099 | 520,082 | 579,250 |
Assets | $ 1,213,305 | $ 1,107,518 | $ 854,420 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 02, 2024 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Quarterly dividend declared (in usd per share) | $ 0.57 |