Company: HLI
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001302215-25-000024
Chunk: 122

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-05-15
Form: 10-K
Item: Item 9
Chunk 122
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 Balance Sheets as of March 31, 2025 and March 31, 2024, comprise the following:March 31, 2025March 31, 2024Deferred tax assets:Deferred compensation expense/accrued bonus$125,428 $109,416 Allowance for credit losses2,246 1,243 Accounts receivable and work in progress950 9,577 US foreign tax credits 2,365 2,313 Operating lease liabilities85,088 87,219 Non-US40,639 43,434 Other, net2,431 6,051 Total deferred tax assets259,147 259,253 Deferred tax asset valuation allowance (13,415)(12,386)Total deferred tax assets245,732 246,867 Deferred tax liabilities:Intangibles(69,335)(71,575)Operating lease right-of-use assets(67,901)(69,978)Other, net(24,504)(22,755)Total deferred tax liabilities(161,740)(164,308)Net deferred tax assets$83,992 $82,559 The Company has various foreign net operating losses totaling $41,707. If not utilized, the foreign net operating loss carryforwards will begin to expire in three 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, 2025 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 $2,365 and $2,313 against these assets for March 31, 2025 and 2024, 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