Company: HLI
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001302215-25-000007
Chunk: 30

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-02-04
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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032 As of December 31, 2024, the Company has entered into an operating lease for additional office space that has not yet commenced for approximately $4,400. This operating lease will commence during fiscal year 2026 with a lease term of 5 years.Lease costsThree Months Ended December 31,Nine Months Ended December 31,2024202320242023Operating lease expense$17,709 $15,312 $44,199 $41,120 Variable lease expense (1)5,288 4,070 14,499 14,783 Short-term lease expense79 42 179 150 Less: Sublease income(817)(422)(2,160)(635)Total lease costs$22,259 $19,002 $56,717 $55,418 (1)Primarily consists of payments for property taxes, common area maintenance and usage based operating costs. Weighted-average detailsDecember 31,20242023Weighted-average remaining lease term (years)1112Weighted-average discount rate5.4 %5.2 %

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

Supplemental cash flow information related to leases:Nine Months Ended December 31,20242023Operating cash flows:Cash paid for amounts included in the measurement of Operating lease liabilities$43,436 $25,657 Non-cash activity:Operating lease right-of-use assets obtained in exchange of Operating lease liabilities$39,142 $19,514 Change in Operating lease right-of-use assets due to remeasurement(4,964)26,211 

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 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