Company: HLI
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001302215-25-000024
Chunk: 115

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-05-15
Form: 10-K
Item: Item 9
Chunk 115
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 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.

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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)

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, 2025March 31, 2024Receivables, net (1)$247,622 $192,952 Unbilled work in progress, net of allowance for credit losses157,760 192,012 Contract Assets (1)9,704 6,678 Contract Liabilities (2)48,215 33,139 (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, 2025 and 2024, $21,514 and $28,400 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, 2025.

Note 4 — 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 $3,640, $9,044, and $284 during the years ended March 31, 2025, 2024, and