Company: HLI
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001302215-25-000024
Chunk: 130

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-05-15
Form: 10-K
Item: Item 9
Chunk 130
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 31, 2025, the Company entered into an operating lease for additional office space that has not yet commenced, for approximately $4,600. This operating lease will commence during fiscal year 2026 with a lease term of 5 years.Lease costsMarch 31, 2025March 31, 2024Operating lease expense$61,106 $57,436 Variable lease expense (1)19,419 19,493 Short-term lease expense231 211 Less: Sublease income(2,874)(1,059)Total lease costs$77,882 $76,081 (1)Primarily consists of payments for property taxes, common area maintenance and usage based operating costs. Weighted-average detailsMarch 31, 2025March 31, 2024Weighted-average remaining lease term (years)1112Weighted-average discount rate5.4 %5.3 %

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Table of ContentsHOULIHAN LOKEY, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)(In thousands, except share data or as otherwise stated)

Supplemental cash flow information related to leases:March 31, 2025March 31, 2024Operating cash flows:Cash paid for amounts included in the measurement of Operating lease liabilities$56,312 $34,341 Non-cash activity:Operating lease right-of-use assets obtained in exchange of Operating lease liabilities$55,433 $21,114 Change in Operating lease right-of-use assets due to remeasurement(9,215)20,376 

Note 17 — 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. The Company 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