Company: HLI
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001302215-25-000007
Chunk: 18

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-02-04
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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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.

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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)

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:April 1, 2024Increase/(Decrease)December 31, 2024Receivables (1)$192,952 $(33,678)$159,274 Unbilled work in progress, net of allowance for credit losses192,012 10,704 202,716 Contract Assets (1)6,678 735 7,413 Contract Liabilities (2)33,139 7,361 40,500 (1)Included within Accounts receivable, net of allowance for credit losses in the December 31, 2024 Consolidated Balance Sheets.(2)Included within Deferred income in the December 31, 2024 Consolidated Balance Sheets.During the three and nine months ended December 31, 2024, $3,436 and $18,777 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