Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LAZ | |
Entity Registrant Name | LAZARD LTD | |
Entity Central Index Key | 1,311,370 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 129,766,091 | |
Subsidiaries of Lazard Ltd [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,518,845 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 853,887 | $ 1,132,083 |
Deposits with banks and short-term investments | 534,865 | 389,861 |
Cash deposited with clearing organizations and other segregated cash | 35,168 | 34,948 |
Receivables (net of allowance for doubtful accounts of $12,967 and $12,882 at September 30, 2016 and December 31, 2015, respectively): | ||
Fees | 440,823 | 423,817 |
Customers and other | 96,872 | 73,396 |
Total receivables, net | 537,695 | 497,213 |
Investments | 462,758 | 541,911 |
Property (net of accumulated amortization and depreciation of $289,417 and $265,506 at September 30, 2016 and December 31, 2015, respectively) | 204,300 | 207,165 |
Goodwill and other intangible assets (net of accumulated amortization of $59,370 and $57,561 at September 30, 2016 and December 31, 2015, respectively) | 353,850 | 326,976 |
Deferred tax assets | 1,107,046 | 1,130,595 |
Other assets | 212,734 | 217,022 |
Total Assets | 4,302,303 | 4,477,774 |
Liabilities: | ||
Deposits and other customer payables | 587,059 | 506,665 |
Accrued compensation and benefits | 375,512 | 570,409 |
Senior debt | 990,488 | 989,358 |
Deferred tax liabilities | 9,377 | 11,104 |
Capital lease obligations | 8,037 | 9,028 |
Other liabilities | 517,065 | 499,942 |
Total Liabilities | 3,001,161 | 3,110,468 |
Commitments and contingencies | ||
Common stock: | ||
Class A, par value $.01 per share (500,000,000 shares authorized; 129,766,091 shares issued at September 30, 2016 and December 31, 2015, including shares held by subsidiaries as indicated below) | 1,298 | 1,298 |
Additional paid-in-capital | 623,512 | 600,034 |
Retained earnings | 1,058,189 | 1,123,728 |
Accumulated other comprehensive loss, net of tax | (236,088) | (234,356) |
Stockholders' equity subtotal before common stock held by subsidiaries and Noncontrolling interests, total | 1,446,911 | 1,490,704 |
Class A common stock held by subsidiaries, at cost (5,778,090 and 4,253,381 shares at September 30, 2016 and December 31, 2015, respectively) | (203,736) | (177,249) |
Total Lazard Ltd Stockholders’ Equity | 1,243,175 | 1,313,455 |
Noncontrolling interests | 57,967 | 53,851 |
Total Stockholders’ Equity | 1,301,142 | 1,367,306 |
Total Liabilities and Stockholders’ Equity | 4,302,303 | 4,477,774 |
LTBP Trust [Member] | ||
Liabilities: | ||
Tax receivable agreement obligation | 513,623 | 523,962 |
Series A Preferred Stock [Member] | ||
Preferred stock: | ||
Preferred stock | ||
Series B Preferred Stock [Member] | ||
Preferred stock: | ||
Preferred stock |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts receivables | $ 12,967 | $ 12,882 |
Property, accumulated amortization and depreciation | 289,417 | 265,506 |
Goodwill and other intangible assets, accumulated amortization | $ 59,370 | $ 57,561 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 129,766,091 | 129,766,091 |
Common stock held by subsidiaries, shares | 5,778,090 | 4,253,381 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares issued | 7,921 | 7,921 |
Preferred stock, shares outstanding | 7,921 | 7,921 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUE | ||||
Investment banking and other advisory fees | $ 343,154 | $ 330,408 | $ 894,906 | $ 946,057 |
Asset management fees | 254,551 | 253,752 | 729,679 | 784,461 |
Interest income | 1,128 | 1,102 | 3,668 | 3,393 |
Other | 22,269 | 54 | 49,607 | 65,879 |
Total revenue | 621,102 | 585,316 | 1,677,860 | 1,799,790 |
Interest expense | 12,194 | 11,798 | 36,054 | 39,431 |
Net revenue | 608,908 | 573,518 | 1,641,806 | 1,760,359 |
OPERATING EXPENSES | ||||
Compensation and benefits | 353,756 | 319,565 | 959,276 | 984,786 |
Occupancy and equipment | 26,973 | 26,278 | 81,143 | 80,889 |
Marketing and business development | 16,927 | 18,244 | 60,492 | 55,758 |
Technology and information services | 24,179 | 22,923 | 71,406 | 68,850 |
Professional services | 10,870 | 10,758 | 31,877 | 36,100 |
Fund administration and outsourced services | 17,097 | 14,367 | 46,427 | 48,008 |
Amortization and other acquisition-related costs | 863 | 511 | 1,837 | 3,401 |
Provision (benefit) pursuant to tax receivable agreement | (420,792) | 547,691 | ||
Other | 9,251 | 10,920 | 28,743 | 90,845 |
Total operating expenses | 459,916 | 2,774 | 1,281,201 | 1,916,328 |
OPERATING INCOME (LOSS) | 148,992 | 570,744 | 360,605 | (155,969) |
Provision (benefit) for income taxes | 36,374 | 170,954 | 95,900 | (993,560) |
NET INCOME | 112,618 | 399,790 | 264,705 | 837,591 |
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 82 | 1,269 | 4,989 | 9,004 |
NET INCOME ATTRIBUTABLE TO LAZARD LTD | $ 112,536 | $ 398,521 | $ 259,716 | $ 828,587 |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: | ||||
Basic | 124,408,884 | 125,925,006 | 125,303,758 | 125,264,447 |
Diluted | 132,320,855 | 133,115,419 | 132,517,887 | 133,219,137 |
NET INCOME PER SHARE OF COMMON STOCK: | ||||
Basic | $ 0.90 | $ 3.16 | $ 2.07 | $ 6.61 |
Diluted | 0.85 | 2.99 | 1.96 | 6.22 |
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK | $ 0.38 | $ 0.35 | $ 2.31 | $ 2 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME | $ 112,618 | $ 399,790 | $ 264,705 | $ 837,591 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Currency translation adjustments (including a tax benefit of $221 for the three months ended September 30, 2016, and $3,090 for the nine months ended September 30, 2016) | (159) | (19,034) | (4,524) | (41,376) |
Employee benefit plans: | ||||
Actuarial gain (loss) (net of tax expense (benefit) of $(17) and $253 for the three months ended September 30, 2016 and 2015, respectively, and $(315) and $(7,753) for the nine months ended September 30, 2016 and 2015, respectively) | (33) | 477 | (649) | (14,140) |
Adjustment for items reclassified to earnings (net of tax expense of $375 and $368 for the three months ended September 30, 2016 and 2015, respectively, and $1,171 and $1,469 for the nine months ended September 30, 2016 and 2015, respectively) | 1,134 | 1,381 | 3,441 | 3,757 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 942 | (17,176) | (1,732) | (51,759) |
COMPREHENSIVE INCOME | 113,560 | 382,614 | 262,973 | 785,832 |
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 82 | 1,269 | 4,989 | 9,004 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD LTD | $ 113,478 | $ 381,345 | $ 257,984 | $ 776,828 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Currency translation adjustments, tax benefit | $ 221 | $ 3,090 | ||
Tax expense (benefit) on actuarial gain (loss), employee benefit plans | (17) | $ 253 | (315) | $ (7,753) |
Tax expense, adjustment for items reclassified to earnings, employee benefit plans | $ 375 | $ 368 | $ 1,171 | $ 1,469 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET INCOME | $ 264,705 | $ 837,591 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property | 24,586 | 24,251 |
Amortization of deferred expenses and share-based incentive compensation | 276,714 | 246,129 |
Amortization and other acquisition-related costs | 1,837 | 3,401 |
Deferred tax provision (benefit) | 49,184 | (1,056,659) |
Provision pursuant to tax receivable agreement | 547,691 | |
Loss on extinguishment of debt | 60,219 | |
Gain on disposal of subsidiaries | (24,388) | |
(Increase) decrease in operating assets: | ||
Deposits with banks and short-term investments | (135,152) | (84,386) |
Cash deposited with clearing organizations and other segregated cash | 115 | 7,413 |
Receivables-net | (43,593) | 34,391 |
Investments | 79,698 | 34,198 |
Other assets | (61,778) | (105,902) |
Increase (decrease) in operating liabilities: | ||
Deposits and other payables | 70,165 | 105,215 |
Accrued compensation and benefits and other liabilities | (227,356) | (109,770) |
Net cash provided by operating activities | 299,125 | 519,394 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property | (22,070) | (18,479) |
Disposals of property | 866 | 471 |
Net cash used in investing activities | (21,204) | (18,008) |
Proceeds from: | ||
Contributions from noncontrolling interests | 93 | 268 |
Issuance of senior debt, net of expenses | 396,272 | |
Excess tax benefits from share-based incentive compensation | 2,343 | 9,516 |
Other financing activities | 30,518 | |
Payments for: | ||
Senior debt | (509,098) | |
Capital lease obligations | (1,234) | (1,435) |
Distributions to noncontrolling interests | (966) | (15,367) |
Payments under tax receivable agreement | (10,086) | (1,276) |
Partial extinguishment of tax receivable agreement obligation | (42,222) | |
Purchase of Class A common stock | (228,865) | (159,471) |
Class A common stock dividends | (289,326) | (246,759) |
Settlement of vested share-based incentive compensation | (55,562) | (105,007) |
Other financing activities | (3,080) | (1,998) |
Net cash used in financing activities | (556,165) | (676,577) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 48 | (31,405) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (278,196) | (206,596) |
CASH AND CASH EQUIVALENTS—January 1 | 1,132,083 | 1,066,580 |
CASH AND CASH EQUIVALENTS—September 30 | $ 853,887 | $ 859,984 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In-Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | Class A Common Stock Held By Subsidiaries [Member] | Total Lazard Ltd Stockholders' Equity [Member] | Noncontrolling Interests [Member] | Series A Preferred Stock [Member] |
Balance at Dec. 31, 2014 | $ 770,057 | $ 1,298 | $ 702,800 | $ 464,655 | $ (200,766) | $ (261,243) | $ 706,744 | $ 63,313 | |
Balance (in shares) at Dec. 31, 2014 | 129,766,091 | 7,450,745 | 7,921 | ||||||
Comprehensive income (loss): | |||||||||
NET INCOME | 837,591 | 828,587 | 828,587 | 9,004 | |||||
Other comprehensive loss - net of tax | (51,759) | (51,759) | (51,759) | ||||||
Amortization of share-based incentive compensation | 174,823 | 174,823 | 174,823 | ||||||
Dividend-equivalents | (1,998) | 30,340 | (32,338) | (1,998) | |||||
Class A common stock dividends | (246,759) | (246,759) | (246,759) | ||||||
Purchase of Class A common stock | $ (159,471) | $ (159,471) | (159,471) | ||||||
Purchase of Class A common stock (in shares) | 3,141,526 | 3,141,526 | |||||||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit | $ (95,512) | (337,101) | $ 241,589 | (95,512) | |||||
Delivery of Class A common stock in connection with shared-based incentive compensation and related tax benefit (in shares) | (6,300,830) | ||||||||
Business acquisitions and related equity transactions: | |||||||||
Delivery of Class A common stock and related tax benefit | (1,327) | $ 1,327 | |||||||
Delivery of Class A common stock and related tax benefit (in shares) | (27,316) | ||||||||
Distributions to noncontrolling interests, net | (15,099) | (15,099) | |||||||
Balance at Sep. 30, 2015 | 1,211,873 | $ 1,298 | 569,535 | 1,014,145 | (252,525) | $ (177,798) | 1,154,655 | 57,218 | |
Balance (in shares) at Sep. 30, 2015 | 129,766,091 | 4,264,125 | 7,921 | ||||||
Balance at Dec. 31, 2015 | 1,367,306 | $ 1,298 | 600,034 | 1,123,728 | (234,356) | $ (177,249) | 1,313,455 | 53,851 | |
Balance (in shares) at Dec. 31, 2015 | 129,766,091 | 4,253,381 | 7,921 | ||||||
Comprehensive income (loss): | |||||||||
NET INCOME | 264,705 | 259,716 | 259,716 | 4,989 | |||||
Other comprehensive loss - net of tax | (1,732) | (1,732) | (1,732) | ||||||
Amortization of share-based incentive compensation | 213,144 | 213,144 | 213,144 | ||||||
Dividend-equivalents | (3,080) | 32,849 | (35,929) | (3,080) | |||||
Class A common stock dividends | (289,326) | (289,326) | (289,326) | ||||||
Purchase of Class A common stock | $ (228,865) | $ (228,865) | (228,865) | ||||||
Purchase of Class A common stock (in shares) | 6,656,250 | 6,656,250 | |||||||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit | $ (48,662) | (216,610) | $ 167,948 | (48,662) | |||||
Delivery of Class A common stock in connection with shared-based incentive compensation and related tax benefit (in shares) | (4,217,819) | ||||||||
Business acquisitions and related equity transactions: | |||||||||
Delivery of Class A common stock and related tax benefit | 12,653 | (21,777) | $ 34,430 | 12,653 | |||||
Delivery of Class A common stock and related tax benefit (in shares) | (913,722) | ||||||||
Class A common stock issuable (including related amortization) | 6,313 | 6,313 | 6,313 | ||||||
Distributions to noncontrolling interests, net | (873) | (873) | |||||||
Other | 9,559 | 9,559 | 9,559 | ||||||
Balance at Sep. 30, 2016 | $ 1,301,142 | $ 1,298 | $ 623,512 | $ 1,058,189 | $ (236,088) | $ (203,736) | $ 1,243,175 | $ 57,967 | |
Balance (in shares) at Sep. 30, 2016 | 129,766,091 | 5,778,090 | 7,921 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||
Tax benefit related to delivery of Class A Common Stock in connection with share-based incentive compensation | $ 6,900 | $ 9,495 |
Tax benefit related to delivery of Class A Common Stock | $ 12,653 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. ORGANIZATION AND BASIS OF PRESENTATION Organization Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”, “Lazard”, “we” or the “Company”), including Lazard Ltd’s indirect investment in Lazard Group LLC, a Delaware limited liability company (collectively referred to, together with its subsidiaries, as “Lazard Group”), is one of the world’s preeminent financial advisory and asset management firms and has long specialized in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, governments, institutions, partnerships and individuals. Lazard Ltd indirectly held 100% of all outstanding Lazard Group common membership interests as of September 30, 2016 and December 31, 2015. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Amended and Restated Operating Agreement dated as of October 26, 2015, as amended (the “Operating Agreement”). Lazard Ltd’s primary operating asset is its indirect ownership of the common membership interests of, and managing member interests in, Lazard Group, whose principal operating activities are included in two business segments: • Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding mergers and acquisitions (“M&A”) and other strategic matters, restructurings, capital structure, capital raising, corporate preparedness and various other financial matters, and • Asset Management, which offers a broad range of global investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients. In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness and assets and liabilities associated with Lazard Group’s Paris-based subsidiary Lazard Frères Banque SA (“LFB”). LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by Lazard Frères Gestion SAS (“LFG”) and other clients, investment banking activities, including participation in underwritten offerings of securities in France, and asset-liability management. Basis of Presentation The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying December 31, 2015 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. For example, discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an assumed annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates. The consolidated results of operations for the three month and nine month periods ended September 30, 2016 are not indicative of the results to be expected for any future interim or annual period. The condensed consolidated financial statements include Lazard Ltd, Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”) along with its subsidiaries, LFB and LFG, and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries. The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates: • Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs, and • Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE. When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation, primarily as a result of the adoption of the current guidance on classification of debt issuance costs and the impact of such guidance on the condensed consolidated statements of financial condition. |
Recent Accounting Developments
Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Developments | 2. RECENT ACCOUNTING DEVELOPMENTS Revenue from Contracts with Customers —In May 2014, the Financial Accounting Standards Board (the “FASB”) issued comprehensive new revenue recognition guidance. The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The new guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is not permitted. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. During 2016, the FASB issued additional clarifications for certain aspects of the new revenue recognition guidance. The Company is currently evaluating the new guidance. Amendments to the Consolidation Analysis —In February 2015, the FASB issued updated guidance for the consolidation of certain legal entities. The updated guidance eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or VOEs. The new guidance is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this guidance using the modified retrospective method with an effective adoption date of January 1, 2016. The adoption of this guidance did not have a material impact on our consolidated financial statements or related disclosures. Interest—Imputation of Interest —In April 2015, the FASB issued updated guidance which requires a company to classify debt issuance costs related to a recognized debt liability in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted and is to be applied on a retrospective basis. The adoption of this guidance by the Company in the first quarter of 2016 resulted in a reclassification as of December 31, 2015 of $8,992 from “other assets” to “senior debt” on our condensed consolidated statements of financial condition. Intangibles—Goodwill and Other—Internal-Use Software : —In April 2015, the FASB issued updated guidance providing clarification on whether a cloud computing arrangement that contains a software license should be accounted for as internal-use software. The new guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance by the Company in the first quarter of 2016 did not have a material impact on our consolidated financial statements. Fair Value Measurement —In May 2015, the FASB issued updated guidance for the classification and disclosure of certain investments using the net asset value (“NAV”) as a practical expedient to measure the fair value of the investment. The guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using NAV as a practical expedient. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted. The new guidance is to be applied on a retrospective basis. The Company elected to early adopt this guidance in the quarter ended September 30, 2015 and has removed investments that are measured at NAV as a practical expedient from the fair value hierarchy in all periods presented in the consolidated financial statements and related disclosures. Leases —In February 2016, the FASB issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial condition, (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and (iii) classify all cash payments within operating activities in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The new guidance is to be applied on a modified retrospective basis. The Company is currently evaluating the new guidance. Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting —In March 2016, the FASB issued new guidance regarding equity-based incentive compensation. The new guidance includes several amendments which affect various aspects of the accounting for equity-based incentive compensation transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the new guidance. Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments —In June 2016, the FASB issued new guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The new guidance is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the new guidance. Classification of Certain Cash Receipts and Cash Payments— In August 2016, the FASB issued updated guidance which clarifies how a company should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The new guidance is to be applied on a retrospective basis. The Company is currently evaluating the new guidance. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Receivables | 3. RECEIVABLES The Company’s receivables represent fee receivables, amounts due from customers and other receivables. Receivables are stated net of an estimated allowance for doubtful accounts, for past due amounts and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute. Activity in the allowance for doubtful accounts for the three month and nine month periods ended September 30, 2016 and 2015 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Beginning Balance $ 13,569 $ 21,071 $ 12,882 $ 23,540 Bad debt expense, net of recoveries 1,545 (256 ) 4,124 3,037 Charge-offs, foreign currency translation and other adjustments (2,147 ) (488 ) (4,039 ) (6,250 ) Ending Balance $ 12,967 $ 20,327 $ 12,967 $ 20,327 Bad debt expense, net of recoveries is included in “investment banking and other advisory fees” on the condensed consolidated statements of operations. At September 30, 2016 and December 31, 2015, the Company had receivables past due or deemed uncollectible of $21,580 and $19,923, respectively. Of the Company’s fee receivables at September 30, 2016 and December 31, 2015, $77,056 and $81,774, respectively, represented interest-bearing financing receivables. Based upon our historical loss experience, the credit quality of the counterparties, and the lack of past due or uncollectible amounts, there was no allowance for doubtful accounts required at those dates related to such receivables. The aggregate carrying amount of our non-interest bearing receivables of $460,639 and $415,439 at September 30, 2016 and December 31, 2015, respectively, approximates fair value. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments Schedule [Abstract] | |
Investments | 4. INVESTMENTS The Company’s investments and securities sold, not yet purchased, consist of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Interest-bearing deposits $ 474 $ 54,885 Debt - 535 Equities 42,656 44,834 Funds: Alternative investments (a) 39,630 67,600 Debt (a) 75,545 67,134 Equity (a) 170,416 197,787 Private equity 126,726 100,219 412,317 432,740 Equity method 7,311 8,917 Total investments 462,758 541,911 Less: Interest-bearing deposits 474 54,885 Equity method 7,311 8,917 Investments, at fair value $ 454,973 $ 478,109 Securities sold, not yet purchased, at fair value (included in “other liabilities”) $ 3,512 $ 3,239 (a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $15,011, $38,071 and $129,530, respectively, at September 30, 2016 and $10,996, $31,598 and $156,081, respectively, at December 31, 2015, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12). Interest-bearing deposits have original maturities of greater than three months but equal to or less than one year and are carried at cost that approximates fair value due to their short-term maturities. Equities primarily consist of seed investments invested in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts related to our Asset Management business. Alternative investment funds primarily consist of interests in various Lazard-managed hedge funds, funds of funds and mutual funds. Debt funds primarily consist of seed investments in funds related to our Asset Management business that invest in debt securities, amounts related to LFI discussed above and an investment in a Lazard-managed debt fund. Equity funds primarily consist of seed investments in funds related to our Asset Management business that invest in equity securities, and amounts related to LFI discussed above. Private equity investments include those owned by Lazard and those consolidated but not owned by Lazard. Private equity investments owned by Lazard are primarily comprised of investments in private equity funds. Such investments primarily include (i) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies, (ii) until the fourth quarter of 2015, Lazard Australia Corporate Opportunities Fund 2 (“COF2”), an Australian fund targeting Australian mid-market investments, (iii) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies, and (iv) a fund targeting significant noncontrolling-stake investments in established private companies. The Company disposed of its private equity business in Australia in the second quarter of 2015 in a transaction with the management of the disposed business. Revenue of $24,388 relating to the disposal of the business primarily represents the realization of carried interest at fair value and is included in “revenue-other” on the condensed consolidated statements of operations for the nine month period ended September 30, 2015. Private equity investments consolidated but not owned by Lazard relate to the economic interests that are owned by the management team and other investors in the Edgewater Funds (“Edgewater”). During the three month and nine month periods ended September 30, 2016 and 2015, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to “trading” securities still held as of the reporting date as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net unrealized investment gains (losses) $ 9,047 $ (24,962 ) $ 15,221 $ (26,077 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. FAIR VALUE MEASUREMENTS Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities —Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access. Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data. Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis. The Company’s investments in debt securities and securities sold, not yet purchased are classified as Level 1 when their respective fair values are based on unadjusted quoted prices in active markets. The fair value of equities is classified as Level 1 or Level 3 as follows: marketable equity securities are classified as Level 1 and are valued based on the last trade price on the primary exchange for that security as provided by external pricing services; equity securities in private companies are generally classified as Level 3. The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are primarily based on the publicly reported closing price for the fund. The fair value of investments in private equity funds were classified as Level 3 for certain investments that were valued based on a potential transaction value as of September 30, 2015. The fair value of the contingent consideration liability is classified as Level 3 and the estimated fair value of the liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods. The fair values of derivatives entered into by the Company are classified as Level 2 and are based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair values of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 6. Investments Measured at Net Asset Value —As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) in private equity funds are not redeemable in the near term as a result of redemption restrictions. The following tables present, as of September 30, 2016 and December 31, 2015, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient: September 30, 2016 Level 1 Level 2 Level 3 NAV (a) Total Assets: Investments: Debt $ - $ - $ - $ - $ - Equities 41,335 - 1,321 - 42,656 Funds: Alternative investments 26,472 - 13,158 39,630 Debt 75,539 - - 6 75,545 Equity 170,372 - - 44 170,416 Private equity - - - 126,726 126,726 Derivatives - 2,269 - - 2,269 Total $ 313,718 $ 2,269 $ 1,321 $ 139,934 $ 457,242 Liabilities: Securities sold, not yet purchased $ 3,512 $ - $ - $ - $ 3,512 Contingent consideration liability 17,028 $ 17,028 Derivatives - 186,196 - - 186,196 Total $ 3,512 $ 186,196 $ 17,028 $ - $ 206,736 December 31, 2015 Level 1 Level 2 Level 3 NAV (a) Total Assets: Investments: Debt $ 535 $ - $ - $ - $ 535 Equities 43,558 - 1,276 - 44,834 Funds: Alternative investments 45,135 - - 22,465 67,600 Debt 67,128 - - 6 67,134 Equity 197,745 - - 42 197,787 Private equity - - - 100,219 100,219 Derivatives - 1,048 - - 1,048 Total $ 354,101 $ 1,048 $ 1,276 $ 122,732 $ 479,157 Liabilities: Securities sold, not yet purchased $ 3,239 $ - $ - $ - $ 3,239 Derivatives - 195,689 - - 195,689 Total $ 3,239 $ 195,689 $ - $ - $ 198,928 (a) Represents certain investments measured at NAV or its equivalent as a practical expedient in determining fair value. In accordance with current accounting guidance, these investments have not been classified in the fair value hierarchy. See Note 2 for additional information. The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, 2016 Beginning Balance Net Realized Gains/Losses Included In Earnings (b) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,298 $ 2 $ - $ - $ 21 $ 1,321 Total Level 3 Assets $ 1,298 $ 2 $ - $ - $ 21 $ 1,321 Liabilities: Contingent consideration liability $ - $ 28 $ 17,000 $ - $ - $ 17,028 Total Level 3 Liabilities $ - $ 28 $ 17,000 $ - $ - $ 17,028 Nine Months Ended September 30, 2016 Beginning Balance Net Realized Gains/Losses Included In Earnings (b) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,276 $ 12 $ - $ - $ 33 $ 1,321 Total Level 3 Assets $ 1,276 $ 12 $ - $ - $ 33 $ 1,321 Liabilities: Contingent consideration liability $ - $ 28 $ 17,000 $ - $ - $ 17,028 Total Level 3 Liabilities $ - $ 28 $ 17,000 $ - $ - $ 17,028 Three Months Ended September 30, 2015 (a) Beginning Balance Net Realized Gains / Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,299 $ 2 $ - $ - $ (25 ) $ 1,276 Private equity funds 22,267 633 2,291 - - 25,191 Total Level 3 Assets $ 23,566 $ 635 $ 2,291 $ - $ (25 ) $ 26,467 Nine Months Ended September 30, 2015 (a) Beginning Balance Net Realized Gains/Losses Included In Earnings (b) Purchases/ Acquisitions/ Transfers (c) Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,315 $ 12 $ - $ - $ (51 ) $ 1,276 Private equity funds - 3,404 22,178 (391 ) - 25,191 Total Level 3 Assets $ 1,315 $ 3,416 $ 22,178 $ (391 ) $ (51 ) $ 26,467 (a) The tables for the three month and nine month periods ended September 30, 2015 reflect the retrospective application of new disclosure guidance adopted by the Company for investments using NAV or its equivalent as a practical expedient when measuring fair value. See Note 2. (b) Earnings recorded in “other revenue” for investments in equities and private equity funds for the three month and nine month periods ended September 30, 2016 and the three month and nine month periods ended September 30, 2015 include net unrealized gains of $2, $7, $635 and $3,416, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2016 include unrealized losses of $28. (c) Certain investments that were valued at NAV as of December 31, 2014 of $19,255 were transferred to Level 3 from the NAV category in the nine months ended September 30, 2015 as these investments were valued based on potential transaction value as of September 30, 2015. There were no transfers between any of the Level 1, 2 and 3 categories in the fair value measurement hierarchy during the three month and nine month periods ended September 30, 2016 and 2015. The following tables present, at September 30, 2016 and December 31, 2015, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2016 Estimated Liquidation Period of Investments Not Redeemable Investments Redeemable Fair Value Unfunded Commitments % of Fair Value Not Redeemable % Next 5 Years % 5-10 Years % Thereafter Redemption Frequency Redemption Notice Period Alternative Hedge funds $ 11,874 $ - NA NA NA NA (a) <30-60 days Funds of funds 498 - NA NA NA NA (b) <30-90 days Other 786 - NA NA NA NA (c) <30-60 days Debt funds 6 - NA NA NA NA (d) 30 days Equity funds 44 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 93,174 9,183 (f) 100 % 12 % 29 % 59 % NA NA Mezzanine debt 33,552 - 100 % - - 100 % NA NA Total $ 139,934 $ 9,183 (a) weekly (80%), monthly (1%) and quarterly (19%) (b) monthly (98%) and quarterly (2%) (c) daily (3%) and monthly (97%) (d) daily (100%) (e) daily (18%), monthly (54%) and quarterly (28%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,724 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. December 31, 2015 Estimated Liquidation Period of Investments Not Redeemable Investments Redeemable Fair Value Unfunded Commitments % of Fair Value Not Redeemable % Next 5 Years % 5-10 Years % Thereafter Redemption Frequency Redemption Notice Period Alternative Hedge funds $ 20,410 $ - NA NA NA NA (a) <30-60 days Funds of funds 465 - NA NA NA NA (b) <30-90 days Other 1,590 - NA NA NA NA (c) <30-60 days Debt funds 6 - NA NA NA NA (d) 30 days Equity funds 42 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 67,895 10,242 (f) 100 % 18 % 39 % 43 % NA NA Mezzanine debt 32,324 - 100 % - - 100 % NA NA Total $ 122,732 $ 10,242 (a) weekly (23%), monthly (69%) and quarterly (8%) (b) monthly (98%) and quarterly (2%) (c) daily (20%) and monthly (80%) (d) daily (100%) (e) daily (18%), monthly (54%) and quarterly (28%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $5,501 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. Investment Capital Funding Commitments —At September 30, 2016, the Company’s maximum unfunded commitments for capital contributions to investment funds primarily arose from commitments to EGCP III, which amounted to $8,613. The investment period for EGCP III ended on October 12, 2016, after which point the Company’s obligation to fund capital contributions for new investments in EGCP III expired. The Company remains obligated until October 12, 2023 (or any earlier liquidation of EGCP III) to make capital contributions necessary to fund follow-on investments and to pay for fund expenses. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 6. DERIVATIVES The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, total return swap contracts on various equity and debt indices and other derivative contracts to economically hedge exposures to fluctuations in currency exchange rates, interest rates and equity and debt prices. The Company reports its derivative instruments separately as assets and liabilities unless a legal right of set-off exists under a master netting agreement enforceable by law. The Company’s derivative instruments are recorded at their fair value, and are included in “other assets” and “other liabilities” on the condensed consolidated statements of financial condition. Gains and losses on the Company’s derivative instruments not designated as economic hedging instruments are included in “interest income” and “interest expense”, respectively, or “revenue-other”, depending on the nature of the underlying item, in the condensed consolidated statements of operations. In addition to the derivative instruments described above, the Company records derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements, the fair value of which is based on the value of the underlying investments, adjusted for estimated forfeitures, and is included in “accrued compensation and benefits” in the condensed consolidated statements of financial condition. Changes in the fair value of the derivative liabilities are included in “compensation and benefits” in the condensed consolidated statements of operations, the impact of which equally offsets the changes in the fair value of investments which are currently expected to be delivered upon settlement of LFI and other similar deferred compensation arrangements, which are reported in “revenue-other” in the condensed consolidated statements of operations. The tables below present the fair values of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair values of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Derivative Assets: Forward foreign currency exchange rate contracts $ 2,269 $ 1,015 Total return swaps and other (a) - 33 $ 2,269 $ 1,048 Derivative Liabilities: Forward foreign currency exchange rate contracts $ 1,873 $ 1,584 Total return swaps and other (a) 9,053 531 LFI and other similar deferred compensation arrangements 175,270 193,574 $ 186,196 $ 195,689 (a) For total return swaps, amounts represent the netting of gross derivative assets and liabilities of $324 and $9,377 as of September 30, 2016, respectively, and $460 and $958 as of December 31, 2015, respectively, for contracts with the same counterparty under legally enforceable master netting agreements. Such amounts are recorded “net” in “other assets”, with receivables for net cash collateral under such contracts of $17,210 and $9,636 as of September 30, 2016 and December 31, 2015, respectively. Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2016 and 2015, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Forward foreign currency exchange rate contracts $ (1,591 ) $ 1,109 $ (8,445 ) $ 12,486 LFI and other similar deferred compensation arrangements (6,909 ) 12,145 (4,707 ) 9,903 Total return swaps and other (4,032 ) 10,945 (5,494 ) 7,761 Total $ (12,532 ) $ 24,199 $ (18,646 ) $ 30,150 |
Property
Property | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property | 7. PROPERTY At September 30, 2016 and December 31, 2015, property consists of the following: Estimated Depreciable Life in Years September 30, 2016 December 31, 2015 Buildings 33 $ 140,633 $ 137,181 Leasehold improvements 3-20 167,314 167,838 Furniture and equipment 3-10 167,711 160,553 Construction in progress 18,059 7,099 Total 493,717 472,671 Less - Accumulated depreciation and amortization 289,417 265,506 Property $ 204,300 $ 207,165 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets at September 30, 2016 and December 31, 2015 are presented below: September 30, December 31, 2016 2015 Goodwill $ 346,044 $ 320,761 Other intangible assets (net of accumulated amortization) 7,806 6,215 $ 353,850 $ 326,976 At September 30, 2016 and December 31, 2015, goodwill of $281,503 and $256,220, respectively, was attributable to the Company’s Financial Advisory segment and, at each such respective date, $64,541 of goodwill was attributable to the Company’s Asset Management segment. Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2016 and 2015 are as follows: Nine Months Ended September 30, 2016 2015 Balance, January 1 $ 320,761 $ 335,402 Business acquisitions (see Note 10) 20,377 - Foreign currency translation adjustments 4,906 (18,413 ) Balance, September 30 $ 346,044 $ 316,989 All changes in the carrying amount of goodwill for the nine month periods ended September 30, 2016 and 2015 are attributable to the Company’s Financial Advisory segment. The gross cost and accumulated amortization of other intangible assets as of September 30, 2016 and December 31, 2015, by major intangible asset category, are as follows: September 30, 2016 December 31, 2015 Gross Cost Accumulated Amortization Net Carrying Amount Gross Cost Accumulated Amortization Net Carrying Amount Success/performance fees $ 34,140 $ 26,334 $ 7,806 $ 30,740 $ 25,192 $ 5,548 Management fees, customer relationships and non-compete agreements 33,036 33,036 - 33,036 32,369 667 $ 67,176 $ 59,370 $ 7,806 $ 63,776 $ 57,561 $ 6,215 Amortization expense of intangible assets, included in “amortization and other acquisition-related costs” in the condensed consolidated statements of operations, for the three month and nine month periods ended September 30, 2016 was $835 and $1,809, respectively, and for the three month and nine month periods ended September 30, 2015 was $511 and $3,401, respectively. Estimated future amortization expense is as follows: Year Ending December 31, Amortization Expense (a) 2016 (October 1 through December 31) $ 4,482 2017 2,346 2018 850 2019 75 2020 53 Total amortization expense $ 7,806 (a) Approximately 27% of intangible asset amortization is attributable to a noncontrolling interest. |
Senior Debt
Senior Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Senior Debt | 9. SENIOR DEBT Senior debt is comprised of the following as of September 30, 2016 and December 31, 2015: Outstanding as of Initial Annual September 30, 2016 December 31, 2015 Principal Amount Maturity Date Interest Rate(b) Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value Lazard Group 2017 Senior Notes (a) 600,000 6/15/17 6.85 % $ 98,350 $ 77 $ 98,273 $ 98,350 $ 159 $ 98,191 Lazard Group 2020 Senior Notes 500,000 11/14/20 4.25 % 500,000 3,800 496,200 500,000 4,491 495,509 Lazard Group 2025 Senior Notes (a) 400,000 2/13/25 3.75 % 400,000 3,985 396,015 400,000 4,342 395,658 Total $ 998,350 $ 7,862 $ 990,488 $ 998,350 $ 8,992 $ 989,358 (a) During February 2015, Lazard Group completed an offering of $400,000 aggregate principal amount of 3.75% senior notes due 2025 (the “2025 Notes”). Lazard Group also issued a notice to redeem $450,000 of Lazard Group’s 6.85% senior notes due June 15, 2017 (the “2017 Notes”) in February 2015. Interest on the 2025 Notes is payable semi-annually on March 1 and September 1 of each year beginning September 1, 2015. Lazard Group used the net proceeds of the 2025 Notes, together with cash on hand, to redeem or otherwise retire $450,000 of the 2017 Notes, which, including the recognition of unamortized issuance costs, resulted in a loss on debt extinguishment of $60,219. Such loss on debt extinguishment was recorded in “operating expenses—other” on the condensed consolidated statement of operations for the nine month period ended September 30, 2015. (b) The effective interest rates of the 2017 Notes, Lazard Group’s 4.25% senior notes due November 14, 2020 (the “2020 Notes”) and the 2025 Notes are 6.96%, 4.43% and 3.87%, respectively. The table, as of December 31, 2015, reflects the retrospective application of new guidance adopted by the Company for debt issuance costs. See Note 2. On September 25, 2015, Lazard Group entered into an Amended and Restated Credit Agreement for a five-year $150,000 senior revolving credit facility with a group of lenders (the “Amended and Restated Credit Agreement”), which expires in September 2020. The Amended and Restated Credit Agreement amended and restated the previous credit agreement dated September 25, 2012. Borrowings under the Amended and Restated Credit Agreement generally will bear interest at LIBOR plus an applicable margin for specific interest periods determined based on Lazard Group’s highest credit rating from an internationally recognized credit agency. At September 30, 2016 and December 31, 2015, no amounts were outstanding under the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement, the indenture and the supplemental indentures relating to Lazard Group’s senior notes contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. As of September 30, 2016, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured. As of September 30, 2016, the Company had approximately $164,000 in unused lines of credit available to it, including the credit facility provided under the Amended and Restated Credit Agreement, and unused lines of credit available to LFB of approximately $11,000 (at September 30, 2016 exchange rates). The Company’s senior debt at September 30, 2016 and December 31, 2015 is carried at historical amounts of $990,488 and $989,358, respectively. At those dates, the fair value of such senior debt was approximately $1,061,000 and $994,000, respectively. The fair value of the Company’s senior debt is based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Leases —The Company has various leases and other contractual commitments arising in the ordinary course of business. Guarantees —In the normal course of business, LFB provides indemnifications to third parties to protect them in the event of non-performance by its clients. At September 30, 2016, LFB had $3,809 of such indemnifications and held $3,723 of collateral/counter-guarantees to secure these commitments. The Company believes the likelihood of loss with respect to these indemnities is remote. Accordingly, no liability is recorded in the condensed consolidated statement of financial condition. Certain Business Acquisitions —On July 15, 2009, the Company established a private equity business with Edgewater. Edgewater manages funds primarily focused on buy-out and growth equity investments in middle market companies. The acquisition was structured as a purchase by Lazard Group of interests in a holding company that in turn owns interests in the general partner and management company entities of the current Edgewater private equity funds (the “Edgewater Acquisition”). Following the Edgewater Acquisition, Edgewater’s leadership team retained a substantial economic interest in such entities. The aggregate fair value of the consideration recognized by the Company at the acquisition date was $61,624. Such consideration consisted of (i) a one-time cash payment, (ii) 1,142,857 shares of Class A common stock (the “Initial Shares”) and (iii) up to 1,142,857 additional shares of Class A common stock (the “Earnout Shares”) that were subject to earnout criteria and payable over time. The Earnout Shares were to be issued only if certain performance thresholds were met. As of December 31, 2015, 913,722 shares were issuable on a contingent basis. As of September 30, 2016 and December 31, 2105, 2,285,714 and 1,371,992 shares, respectively, had been earned and settled because applicable performance thresholds had been satisfied. During the nine month period ended September 30, 2016, the delivery of 913,722 shares of Class A common stock resulted in a non-cash tax benefit of $12,653 recorded in deferred tax assets. Other Business Acquisitions —For a business acquired in the third quarter of 2016, consideration transferred included (i) a one-time cash payment and non-contingent interests exchangeable into 206,612 shares of Class A common stock and (ii) contingent interests which are exchangeable into a maximum of 606,061 shares of Class A common stock and are subject to certain performance thresholds. As of September 30, 2016, none of the contingent shares had been earned. For a business acquired in 2012, at December 31, 2012, 170,988 shares of Class A common stock (including dividend equivalent shares) were issuable on a non-contingent basis. Such shares were delivered in the first quarter of 2013. During the second quarter of 2015, the achievement of certain performance thresholds related to the acquired business were satisfied, resulting in the issuance of 27,316 shares of Class A common stock. Other Commitments —The Company has various other contractual commitments arising in the ordinary course of business. In addition, from time to time, each of LFB and LFNY may enter into underwriting commitments in which it will participate as an underwriter. At September 30, 2016, LFB and LFNY had no such underwriting commitments. See Notes 5 and 13 for information regarding commitments relating to investment capital funding commitments and obligations to fund our pension plans, respectively. In the opinion of management, the fulfillment of the commitments described herein will not have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. Legal —The Company is involved from time to time in judicial, regulatory and arbitration proceedings and inquiries concerning matters arising in connection with the conduct of our businesses, including proceedings initiated by former employees alleging wrongful termination. The Company reviews such matters on a case-by-case basis and establishes any required accrual if a loss is probable and the amount of such loss can be reasonably estimated. The Company experiences significant variation in its revenue and earnings on a quarterly basis. Accordingly, the results of any pending matter or matters could be significant when compared to the Company’s earnings in any particular fiscal quarter. The Company believes, however, based on currently available information, that the results of any pending matters, in the aggregate, will not have a material effect on its business or financial condition. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY Share Repurchase Program —During the nine month period ended September 30, 2016 and since 2013, the Board of Directors of Lazard authorized the repurchase of Class A common stock as set forth in the table below. Date Repurchase Authorization Expiration October, 2013 $ 100,000 December April, 2014 $ 200,000 December 31, 2015 February, 2015 $ 150,000 December 31, 2016 January, 2016 $ 200,000 December 31, 2017 April, 2016 $ 113,182 December 31, 2017 The Company expects that the share repurchase program will primarily be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”) and the Lazard Ltd 2005 Equity Incentive Plan (the “2005 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from quarter to quarter due to a variety of factors. Purchases with respect to such program are set forth in the table below: Nine Months Ended September 30: Number of Shares Purchased Average Price Per Share 2015 3,141,526 $ 50.76 2016 6,656,250 $ 34.38 During the nine month periods ended September 30, 2016 and 2015, certain of our executive officers received Class A common stock in connection with the vesting of previously-granted deferred equity incentive awards. The vesting of such equity awards gave rise to a tax payable by the executive officers, and, consistent with our past practice, the Company purchased shares of Class A common stock from the executive officers equal in value to the estimated amount of such tax. In addition, during the nine month period ended September 30, 2016, the Company purchased shares of Class A common stock from an executive officer. The aggregate value of all such purchases during the nine month periods ended September 30, 2016 and 2015 was approximately $4,900 and $17,700, respectively. As of September 30, 2016, a total of $190,477 of share repurchase authorization remained available under the Company’s share repurchase program, which will expire on December 31, 2017. During the nine month period ended September 30, 2016, the Company had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, pursuant to which it effected stock repurchases in the open market. Preferred Stock —Lazard Ltd has 15,000,000 authorized shares of preferred stock, par value $0.01 per share, inclusive of its Series A and Series B preferred stock. Series A and Series B preferred shares were issued in connection with certain prior year business acquisitions and are each non-participating securities convertible into Class A common stock, and have no voting or dividend rights. As of both September 30, 2016 and December 31, 2015, 7,921 shares of Series A preferred stock were outstanding, and no shares of Series B preferred stock were outstanding. At September 30, 2016 and December 31, 2015, no shares of Series A preferred stock were convertible into shares of Class A common stock on a contingent or a non-contingent basis. Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”) —The tables below reflect the balances of each component of AOCI at September 30, 2016 and 2015 and activity during the nine month periods then ended: Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Ltd AOCI Balance, January 1, 2016 $ (97,284 ) $ (137,073 ) $ (234,357 ) $ (1 ) $ (234,356 ) Activity January 1 to September 30, 2016: Other comprehensive loss before reclassifications (4,524 ) (649 ) (5,173 ) - (5,173 ) Adjustments for items reclassified to earnings, net of tax - 3,441 3,441 - 3,441 Net other comprehensive income (loss) (4,524 ) 2,792 (1,732 ) - (1,732 ) Balance, September 30, 2016 $ (101,808 ) $ (134,281 ) $ (236,089 ) $ (1 ) $ (236,088 ) Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Ltd AOCI Balance, January 1, 2015 $ (46,102 ) $ (154,665 ) $ (200,767 ) $ (1 ) $ (200,766 ) Activity January 1 to September 30, 2015: Other comprehensive loss before reclassifications (41,376 ) (14,140 ) (55,516 ) - (55,516 ) Adjustments for items reclassified to earnings, net of tax - 3,757 3,757 - 3,757 Net other comprehensive loss (41,376 ) (10,383 ) (51,759 ) - (51,759 ) Balance, September 30, 2015 $ (87,478 ) $ (165,048 ) $ (252,526 ) $ (1 ) $ (252,525 ) The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Amortization relating to employee benefit plans (a) $ 1,509 $ 1,749 $ 4,612 $ 5,226 Less - related income taxes 375 368 1,171 1,469 Total reclassifications, net of tax $ 1,134 $ 1,381 $ 3,441 $ 3,757 (a) Included in the computation of net periodic benefit cost (see Note 13). Such amounts are included in “compensation and benefits” expense on the condensed consolidated statements of operations. Noncontrolling Interests —Noncontrolling interests principally represent interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own. The tables below summarize net income attributable to noncontrolling interests for the three month and nine month periods ended September 30, 2016 and 2015 and noncontrolling interests as of September 30, 2016 and December 31, 2015 in the Company’s condensed consolidated financial statements: Net Income Attributable to Noncontrolling Interests Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Edgewater $ 81 $ 1,268 $ 4,988 $ 9,002 Other 1 1 1 2 Total $ 82 $ 1,269 $ 4,989 $ 9,004 Noncontrolling Interests as of September 30, 2016 December 31, 2015 Edgewater $ 57,249 $ 53,132 Other 718 719 Total $ 57,967 $ 53,851 Dividends Declared, October 26, 2016 —On October 26, 2016, the Board of Directors of Lazard declared a quarterly dividend of $0.38 per share on our Class A common stock, payable on November 18, 2016, to stockholders of record on November 7, 2016. |
Incentive Plans
Incentive Plans | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Plans | 12. INCENTIVE PLANS Share-Based Incentive Plan Awards A description of Lazard Ltd’s 2008 Plan and 2005 Plan and activity with respect thereto during the three month and nine month periods ended September 30, 2016 and 2015 is presented below. Shares Available Under the 2008 Plan and 2005 Plan The 2008 Plan authorizes the issuance of shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”) and other equity-based awards. Under the 2008 Plan, the maximum number of shares available is based on a formula that limits the aggregate number of shares that may, at any time, be subject to awards that are considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock. The 2005 Plan authorized the issuance of up to 25,000,000 shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs and other equity-based awards. Each RSU or similar award granted under the 2005 Plan represents a contingent right to receive one share of Class A common stock, at no cost to the recipient. The fair value of such awards is generally determined based on the closing market price of Class A common stock at the date of grant. The 2005 Plan expired in the second quarter of 2015, although unvested awards granted under the 2005 Plan remain outstanding and continue to be subject to its terms. The following reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, performance-based restricted stock units (“PRSUs”) and restricted stock awards) and “professional services” expense (with respect to deferred stock units (“DSUs”)) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Share-based incentive awards: RSUs $ 39,447 $ 38,156 $ 134,419 $ 129,490 PRSUs 11,252 10,207 38,276 24,819 Restricted Stock 7,015 3,635 38,833 19,088 DSUs 105 32 1,616 1,426 Total $ 57,819 $ 52,030 $ 213,144 $ 174,823 The ultimate amount of compensation and benefits expense relating to share-based awards is dependent upon the actual number of shares of Class A common stock that vest. The Company periodically assesses the forfeiture rates used for such estimates, including as a result of any applicable performance conditions. A change in estimated forfeiture rates results in a cumulative adjustment to previously recorded compensation and benefits expense and also would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described below. For purposes of calculating diluted net income per share, RSUs, DSUs and restricted stock awards are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. PRSUs are included in the diluted weighted average shares of Class A common stock outstanding to the extent the performance conditions are met at the end of the reporting period, also using the “treasury stock” method. The Company’s share-based incentive plans and awards are described below. RSUs and DSUs RSUs generally require future service as a condition for the delivery of the underlying shares of Class A common stock (unless the recipient is then eligible for retirement under the Company’s retirement policy) and convert into shares of Class A common stock on a one-for-one basis after the stipulated vesting periods. PRSUs, which are RSUs that are also subject to service-based vesting conditions, have additional performance conditions, and are described below. The grant date fair value of the RSUs, net of an estimated forfeiture rate, is amortized over the vesting periods or requisite service periods (generally one-third after two years, and the remaining two-thirds after the third year), and is adjusted for actual forfeitures over such period. RSUs generally include a dividend participation right that provides that during vesting periods each RSU is attributed additional RSUs (or fractions thereof) equivalent to any dividends paid on Class A common stock during such period. During the nine month periods ended September 30, 2016 and 2015, issuances of RSUs pertaining to such dividend participation rights and respective charges to “retained earnings”, net of estimated forfeitures (with corresponding credits to “additional paid-in-capital”), consisted of the following: Nine Months Ended September 30, 2016 2015 Number of RSUs issued 969,054 603,608 Charges to retained earnings, net of estimated forfeitures $ 32,849 $ 30,340 Non-executive members of the Board of Directors (“Non-Executive Directors”) receive approximately 55% of their annual compensation for service on the Board of Directors and its committees in the form of DSUs, which resulted in 38,771 and 23,961 DSUs granted in connection with annual compensation during the nine month periods ended September 30, 2016 and 2015, respectively. Their remaining compensation is payable in cash, which they may elect to receive in the form of additional DSUs under the Directors’ Fee Deferral Unit Plan described below. DSUs are convertible into shares of Class A common stock at the time of cessation of service to the Board of Directors and, for purposes of calculating diluted net income per share, are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. DSUs include a cash dividend participation right equivalent to dividends paid on Class A common stock. The Company’s Directors’ Fee Deferral Unit Plan permits the Non-Executive Directors to elect to receive additional DSUs in lieu of some or all of their cash fees. The number of DSUs granted to a Non-Executive Director pursuant to this election will equal the value of cash fees that the applicable Non-Executive Director has elected to forego pursuant to such election, divided by the market value of a share of Class A common stock on the date immediately preceding the date of the grant. During the nine month periods ended September 30, 2016 and 2015, 7,407 and 1,761 DSUs, respectively, had been granted pursuant to such Plan. DSU awards are expensed at their fair value on their date of grant, inclusive of amounts related to the Directors’ Fee Deferral Unit Plan. The following is a summary of activity relating to RSUs and DSUs during the nine month periods ended September 30, 2016 and 2015: RSUs DSUs Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance, January 1, 2016 9,599,658 $ 44.06 312,670 $ 35.98 Granted (including 969,054 RSUs relating to dividend participation) 6,649,625 $ 34.64 46,178 $ 34.98 Forfeited (181,337 ) $ 39.79 - - Vested (4,527,559 ) $ 39.16 (84,759 ) $ 35.30 Balance, September 30, 2016 11,540,387 $ 40.62 274,089 $ 36.02 Balance, January 1, 2015 13,529,116 $ 35.19 286,227 $ 34.21 Granted (including 603,608 RSUs relating to dividend participation) 4,111,619 $ 48.84 25,722 $ 55.43 Forfeited (461,297 ) $ 43.49 - - Vested (7,159,642 ) $ 30.87 - - Balance, September 30, 2015 10,019,796 $ 43.50 311,949 $ 35.96 In connection with RSUs that vested during the nine month periods ended September 30, 2016 and 2015, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,416,643 and 1,940,996 shares of Class A common stock during such respective nine month periods. Accordingly, 3,110,916 and 5,218,646 shares of Class A common stock held by the Company were delivered during the nine month periods ended September 30, 2016 and 2015, respectively. As of September 30, 2016, estimated unrecognized RSU compensation expense was approximately $174,364, with such expense expected to be recognized over a weighted average period of approximately 0.9 years subsequent to September 30, 2016. Restricted Stock The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the nine month periods ended September 30, 2016 and 2015: Restricted Shares Weighted Average Grant Date Fair Value Balance, January 1, 2016 713,738 $ 47.12 Granted 1,795,258 $ 36.74 Forfeited (33,943 ) $ 40.49 Vested (802,276 ) $ 37.09 Balance, September 30, 2016 1,672,777 $ 40.92 Balance, January 1, 2015 729,827 $ 38.63 Granted 576,886 $ 50.88 Forfeited (45,500 ) $ 50.24 Vested (512,516 ) $ 39.25 Balance, September 30, 2015 748,697 $ 46.94 In connection with shares of restricted Class A common stock that vested during the nine month periods ended September 30, 2016 and 2015, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 132,984 and 94,745 shares of Class A common stock during such respective nine month periods. Accordingly, 669,292 and 417,771 shares of Class A common stock held by the Company were delivered during the nine month periods ended September 30, 2016 and 2015, respectively. The restricted stock awards include a cash dividend participation right equivalent to dividends paid on Class A common stock during the period, which will vest concurrently with the underlying restricted stock award. At September 30, 2016, estimated unrecognized restricted stock expense was approximately $38,512, with such expense to be recognized over a weighted average period of approximately 1.0 years subsequent to September 30, 2016. PRSUs PRSUs are subject to both performance-based and service-based vesting conditions. The number of shares of Class A common stock that a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance metrics that relate to the Company’s performance over a three-year period. The target number of shares of Class A common stock subject to each PRSU is one; however, based on the achievement of the performance criteria, the number of shares of Class A common stock that may be received in connection with each PRSU generally can range from zero to two times the target number. PRSUs will vest on a single date three years following the date of the grant, provided the applicable service and performance conditions are satisfied. However, PRSUs granted in 2013 vested 33% in March 2015 and 67% in March 2016. In addition, the performance metrics applicable to each PRSU will be evaluated on an annual basis at the end of each fiscal year during the performance period and, if the Company has achieved a threshold level of performance with respect to the fiscal year, 25% of the target number of shares of Class A common stock subject to each PRSU will no longer be at risk of forfeiture based on the achievement of performance criteria. PRSUs include dividend participation rights that provide that during vesting periods the target number of PRSUs (or, following the relevant performance period, the actual number of shares of Class A common stock that are no longer subject to performance conditions) receive dividend equivalents at the same rate that dividends are paid on Class A common stock during such period. These dividend equivalents are credited as RSUs that are not subject to the performance-based vesting criteria but are otherwise subject to the same restrictions as the underlying PRSUs to which they relate. The following is a summary of activity relating to PRSUs during the nine month periods ended September 30, 2016 and 2015: PRSUs Weighted Average Grant Date Fair Value Balance, January 1, 2016 1,019,038 $ 44.49 Granted (a) 627,956 $ 32.91 Vested (417,021 ) $ 38.43 Balance, September 30, 2016 1,229,973 $ 40.63 Balance, January 1, 2015 1,347,148 $ 37.79 Granted (a) 368,389 $ 52.85 Vested (696,499 ) $ 35.96 Balance, September 30, 2015 1,019,038 $ 44.49 (a) Represents PRSU awards granted during the relevant year at the target payout level. In connection with PRSUs that vested during the nine month periods ended September 30, 2016 and 2015, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 64,169 and 32,086 shares of Class A common stock during such respective nine month periods. Accordingly, 352,852 and 664,413 shares of Class A common stock held by the Company were delivered during the nine month periods ended September 30, 2016 and 2015. Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of Class A common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. As of September 30, 2016, the total estimated unrecognized compensation expense was approximately $17,330, and the Company expects to amortize such expense over a weighted-average period of approximately 0.7 years subsequent to September 30, 2016. LFI and Other Similar Deferred Compensation Arrangements Commencing in February 2011, the Company granted LFI to eligible employees. In connection with LFI and other similar deferred compensation arrangements, which generally require future service as a condition for vesting, the Company recorded a prepaid compensation asset and a corresponding compensation liability on the grant date based upon the fair value of the award. The prepaid asset is amortized on a straight-line basis over the applicable vesting periods or requisite service periods (which are generally similar to the comparable periods for RSUs), and is charged to “compensation and benefits” expense within the Company’s condensed consolidated statement of operations. LFI and similar deferred compensation arrangements that do not require future service are expensed immediately. The related compensation liability is accounted for at fair value as a derivative liability, which contemplates the impact of estimated forfeitures, and is adjusted for changes in fair value primarily related to changes in value of the underlying investments. The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the nine month periods ended September 30, 2016 and 2015: Prepaid Compensation Asset Compensation Liability Balance, January 1, 2016 $ 75,703 $ 193,574 Granted 51,871 51,871 Settled - (75,583 ) Forfeited (1,967 ) (3,435 ) Amortization (56,784 ) - Change in fair value related to: Increase in fair value of underlying investments - 4,707 Adjustment for estimated forfeitures - 3,551 Other (1,232 ) 585 Balance, September 30, 2016 $ 67,591 $ 175,270 Prepaid Compensation Asset Compensation Liability Balance, January 1, 2015 $ 73,278 $ 207,306 Granted 89,817 89,817 Settled - (94,899 ) Forfeited (3,610 ) (6,873 ) Amortization (64,136 ) - Change in fair value related to: Decrease in fair value of underlying investments - (9,903 ) Adjustment for estimated forfeitures - 5,219 Other (184 ) (2,030 ) Balance, September 30, 2015 $ 95,165 $ 188,637 The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.8 years subsequent to September 30, 2016. The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Amortization, net of forfeitures $ 18,116 $ 21,168 $ 58,867 $ 66,092 Change in the fair value of underlying investments 6,909 (12,145 ) 4,707 (9,903 ) Total $ 25,025 $ 9,023 $ 63,574 $ 56,189 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure Abstract | |
Employee Benefit Plans | 13. EMPLOYEE BENEFIT PLANS The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”) and, in the U.S., a partially funded contributory post-retirement plan covering qualifying U.S. employees (the “medical plan” and together with the pension plans, the “post-retirement plans”). The Company also offers defined contribution plans to its employees. The post-retirement plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense on the condensed consolidated statements of operations. Employer Contributions to Pension Plans —The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans. The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s post-retirement plans for the three month and nine month periods ended September 30, 2016 and 2015: Pension Plans Medical Plan Three Months Ended September 30, 2016 2015 2016 2015 Components of Net Periodic Benefit Cost (Credit): Service cost $ 313 $ 440 $ 3 $ 7 Interest cost 4,833 6,237 42 45 Expected return on plan assets (6,648 ) (7,146 ) Amortization of: Prior service cost 599 595 Net actuarial loss (gain) 957 1,154 (47 ) Net periodic benefit cost (credit) $ 54 $ 1,280 $ (2 ) $ 52 Pension Plans Medical Plan Nine Months Ended September 30, 2016 2015 2016 2015 Components of Net Periodic Benefit Cost (Credit): Service cost $ 934 $ 1,153 $ 9 $ 20 Interest cost 15,292 18,496 125 135 Expected return on plan assets (21,047 ) (21,236 ) Amortization of: Prior service cost 1,793 1,789 Net actuarial loss (gain) 2,958 3,437 (139 ) Net periodic benefit cost (credit) $ (70 ) $ 3,639 $ (5 ) $ 155 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. INCOME TAXES Lazard Ltd, through its subsidiaries, is subject to U.S. federal income taxes on all of its U.S. operating income, as well as on the portion of non-U.S. income attributable to its U.S. subsidiaries. Outside the U.S., Lazard Group operates principally through subsidiary corporations that are subject to local income taxes in foreign jurisdictions. Lazard Group is also subject to New York City Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City. The Company recorded income tax provisions (benefits) of $36,374 and $95,900 for the three month and nine month periods ended September 30, 2016, respectively, and $170,954 and $(993,560) for the three month and nine month periods ended September 30, 2015, respectively, representing effective tax rates of 24.4%, 26.6%, 30.0% and 637.0%, respectively. The difference between the U.S. federal statutory rate of 35.0% and the effective tax rates reflected above principally relates to (i) taxes payable to foreign jurisdictions that are not offset against U.S. income taxes, (ii) foreign source income (loss) not subject to U.S. income taxes (including interest on intercompany financings), (iii) change in the U.S. federal valuation allowance affecting the provision for income taxes, and (iv) U.S. state and local taxes (primarily UBT), which are incremental to the U.S. federal statutory tax rate. As of December 31, 2014, the Company had a valuation allowance on substantially all of our deferred tax assets. Certain of our tax-paying entities at which we have historically recorded significant valuation allowances were profitable on a cumulative basis for the three year periods ended June 30, 2015. In assessing our valuation allowance as of June 30, 2015, we considered all available information, including the magnitude of recent and current operating results, the relatively long duration of statutory carryforward periods, our historical experience utilizing tax attributes prior to their expiration dates, the historical volatility of operating results of these entities and our assessment regarding the sustainability of their profitability. At that time, we concluded that there was a sufficient history of sustained profitability at these entities that it was more likely than not that these entities would be able to realize deferred tax assets. Accordingly, during the period ended June 30, 2015, we released substantially all of the valuation allowance against the deferred tax assets held by these entities. As a result, during the year ended December 31, 2015, we recorded a deferred tax benefit of approximately $878,000, including $821,000 recorded in the second quarter of 2015. In addition, we also recorded (i) in the second quarter of 2015, a separate deferred tax benefit of approximately $378,000 that reflected the tax deductibility of payments under the tax receivable agreement and (ii) in the third quarter of 2015, a deferred tax expense of approximately $161,000 relating to the reduction of a deferred tax asset as a result of the partial extinguishment of our tax receivable agreement obligation. See Note 16 for more information regarding our accrual under the tax receivable agreement in the second quarter of 2015 and the partial extinguishment of our tax receivable agreement obligation in the third quarter of 2015. Substantially all of Lazard’s operations outside the U.S. are conducted in “pass-through” entities for U.S. income tax purposes. The Company provides for U.S. income taxes on a current basis for those earnings. The repatriation of prior earnings attributable to “non-pass-through” entities would not result in the recognition of a material amount of additional U.S. income taxes. |
Net Income Per Share of Class A
Net Income Per Share of Class A Common Stock | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share of Class A Common Stock | 15. NET INCOME PER SHARE OF CLASS A COMMON STOCK The Company’s basic and diluted net income per share calculations for the three month and nine month periods ended September 30, 2016 and 2015 are computed as described below. Basic Net Income Per Share Numerator —utilizes net income attributable to Lazard Ltd for the respective periods, plus applicable adjustments to such net income associated with the inclusion of shares of Class A common stock issuable on a non-contingent basis. Denominator —utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods, plus applicable adjustments to such shares associated with shares of Class A common stock issuable on a non-contingent basis. Diluted Net Income Per Share Numerator —utilizes net income attributable to Lazard Ltd for the respective periods as in the basic net income per share calculation described above, plus, to the extent applicable and dilutive, (i) changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation and (ii) income tax related to (i) above. Denominator —utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock required to settle share-based incentive compensation. The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month and nine month periods ended September 30, 2016 and 2015 are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to Lazard Ltd - basic $ 112,536 $ 398,521 $ 259,716 $ 828,587 Net income attributable to Lazard Ltd - diluted $ 112,536 $ 398,521 $ 259,716 $ 828,587 Weighted average number of shares of Class A common stock outstanding 124,296,449 125,852,995 125,218,272 125,192,436 Add - adjustment for shares of Class A common stock issuable on a non-contingent basis 112,435 72,011 85,486 72,011 Weighted average number of shares of Class A common stock outstanding - basic 124,408,884 125,925,006 125,303,758 125,264,447 Add - dilutive effect, as applicable, of: Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation 7,911,971 7,190,413 7,214,129 7,954,690 Weighted average number of shares of Class A common stock outstanding - diluted 132,320,855 133,115,419 132,517,887 133,219,137 Net income attributable to Lazard Ltd per share of Class A common stock: Basic $ 0.90 $ 3.16 $ 2.07 $ 6.61 Diluted $ 0.85 $ 2.99 $ 1.96 $ 6.22 |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties | 16. RELATED PARTIES Sponsored Funds The Company serves as an investment advisor for certain affiliated investment companies and fund entities and receives management fees and, for the alternative investment funds, performance fees for providing such services. Investment advisory fees relating to such services were $130,546 and $374,250 for the three month and nine month periods ended September 30, 2016, respectively, and $129,524 and $405,145 for the three month and nine month periods ended September 30, 2015, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $54,979 and $42,002 remained as receivables at September 30, 2016 and December 31, 2015, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition. Tax Receivable Agreement The Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “Amended and Restated Tax Receivable Agreement”), between Lazard and LTBP Trust, a Delaware statutory trust (the “Trust”), provides for the payment by our subsidiaries to the Trust of (i) approximately 45% (following the July 2015 purchase described below) of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of certain increases in tax basis and of certain other tax benefits related to the Amended and Restated Tax Receivable Agreement, and (ii) an amount that we currently expect will approximate 85% of the cash tax savings that may arise from tax benefits attributable to payments under the Amended and Restated Tax Receivable Agreement. Our subsidiaries expect to benefit from the balance of cash savings, if any, in income tax that our subsidiaries realize. Any amount paid by our subsidiaries to the Trust will generally be distributed to the owners of the Trust, including our executive officers, in proportion to their beneficial interests in the Trust. For purposes of the Amended and Restated Tax Receivable Agreement, cash savings in income and franchise tax will be computed by comparing our subsidiaries’ actual income and franchise tax liability to the amount of such taxes that our subsidiaries would have been required to pay had there been no increase in the tax basis of certain tangible and intangible assets of Lazard Group attributable to our subsidiaries’ interest in Lazard Group and had our subsidiaries not entered into the Amended and Restated Tax Receivable Agreement. The term of the Amended and Restated Tax Receivable Agreement will continue until approximately 2033 or, if earlier, until all relevant tax benefits have been utilized or expired. As described in Note 14, during the period ended June 30, 2015, we released substantially all of our valuation allowance against deferred tax assets. As a result, we accrued a corresponding liability of $961,948 during the quarter ended June 30, 2015 for amounts relating to the Amended and Restated Tax Receivable Agreement at that time. The amount of the Amended and Restated Tax Receivable Agreement liability is an undiscounted amount based upon currently enacted tax laws, the current structure of the Company and various assumptions regarding potential future operating profitability. The assumptions reflected in the estimate involve significant judgment. As such, the actual amount and timing of payments under the Amended and Restated Tax Receivable Agreement could differ materially from our estimates. Any changes in the amount of the estimated liability would be recorded as a non-compensation expense in the condensed consolidated statement of operations. Adjustments, if necessary, to the related deferred tax assets would be recorded through the “provision (benefit) for income taxes”. In July 2015, we purchased approximately 47% of the then-outstanding beneficial interests in the Trust from certain owners of the Trust for $42,222 in cash, which resulted in the automatic cancellation of such beneficial interests and the extinguishment of a significant portion of our payment obligations under the Amended and Restated Tax Receivable Agreement. The extinguishment of these payment obligations resulted in a pre-tax gain of $420,792 recorded in “provision pursuant to tax receivable agreement” on the consolidated statement of operations for the year ended December 31, 2015. In addition, the extinguishment of these payment obligations resulted in a reduction of the tax benefits that would have been attributable to the actual payments and, accordingly, we recorded a deferred tax expense of approximately $161,000 on the consolidated statement of operations for the year ended December 31, 2015. For the three month and nine month periods ended September 30, 2015, the Company recorded a “provision (benefit) pursuant to tax receivable agreement” on the condensed consolidated statements of operations of $(420,792) and $547,691, respectively. The cumulative liability relating to our obligations under the Amended and Restated Tax Receivable Agreement as of September 30, 2016 and December 31, 2015 was $513,623 and $523,962, respectively, and is recorded in “tax receivable agreement obligation” on the condensed consolidated statements of financial condition. The balance at September 30, 2016 reflects a payment made under the Amended and Restated Tax Receivable Agreement in the first quarter of 2016 of $10,086. Other See Note 11 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers. |
Regulatory Authorities
Regulatory Authorities | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Authorities | 17. REGULATORY AUTHORITIES LFNY is a U.S. registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the Securities Exchange Act of 1934. Under the basic method permitted by this rule, the minimum required net capital, as defined, is a specified fixed percentage (6 2/3%) of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $100, whichever is greater. In addition, the ratio of aggregate indebtedness (as defined) to net capital may not exceed 15:1. At September 30, 2016, LFNY’s regulatory net capital was $73,105, which exceeded the minimum requirement by $69,178. LFNY’s aggregate indebtedness to net capital ratio was 0.81:1 as of September 30, 2016. Certain U.K. subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (collectively, the “U.K. Subsidiaries”) are regulated by the Financial Conduct Authority. At September 30, 2016, the aggregate regulatory net capital of the U.K. Subsidiaries was $131,370, which exceeded the minimum requirement by $116,180. CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) for its banking activities conducted through its subsidiary, LFB. The investment services activities of the Paris group, exercised through LFB and other subsidiaries of CFLF, primarily LFG (asset management), also are subject to regulation and supervision by the Autorité des Marchés Financiers. At September 30, 2016, the consolidated regulatory net capital of CFLF was $133,377, which exceeded the minimum requirement set for regulatory capital levels by $88,653. In addition, pursuant to the consolidated supervision rules in the European Union, LFB, in particular, as a French credit institution, is required to be supervised by a regulatory body, either in the U.S. or in the European Union. During the third quarter of 2013, the Company and the ACPR agreed on terms for the consolidated supervision of LFB and certain other non-Financial Advisory European subsidiaries of the Company (referred to herein, on a combined basis, as the “combined European regulated group”) under such rules. Under this supervision, the combined European regulated group is required to comply with minimum requirements for regulatory net capital to be reported on a quarterly basis and satisfy periodic financial and other reporting obligations. At June 30, 2016, the regulatory net capital of the combined European regulated group was $176,187, which exceeded the minimum requirement set for regulatory capital levels by $98,533. Additionally, the combined European regulated group, together with our European Financial Advisory entities, is required to perform an annual risk assessment and provide certain other information on a periodic basis, including financial reports and information relating to financial performance, balance sheet data and capital structure. Certain other U.S. and non-U.S. subsidiaries are subject to various capital adequacy requirements promulgated by various regulatory and exchange authorities in the countries in which they operate. At September 30, 2016, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $110,833, which exceeded the minimum required capital by $84,709. At September 30, 2016, each of these subsidiaries individually was in compliance with its regulatory capital requirements. Any new or expanded rules and regulations that may be adopted in countries in which we operate (including regulations that have not yet been proposed) could affect us in other ways. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 18. SEGMENT INFORMATION The Company’s reportable segments offer different products and services and are managed separately as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed to determine the allocation of resources and to assess its performance. The Company’s principal operating activities are included in its Financial Advisory and Asset Management business segments as described in Note 1. In addition, as described in Note 1 above, the Company records selected other activities in its Corporate segment. The Company’s segment information for the three month and nine month periods ended September 30, 2016 and 2015 is prepared using the following methodology: • Revenue and expenses directly associated with each segment are included in determining operating income. • Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors. • Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors. The Company allocates investment gains and losses, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported. Each segment’s operating expenses include (i) compensation and benefits expenses incurred directly in support of the businesses and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, human resources, legal, facilities management and senior management activities. Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Financial Advisory Net Revenue $ 343,488 $ 330,832 $ 896,467 $ 948,735 Operating Expenses 258,865 261,952 719,670 758,108 Operating Income $ 84,623 $ 68,880 $ 176,797 $ 190,627 Asset Management Net Revenue $ 267,725 $ 264,581 $ 767,610 $ 850,226 Operating Expenses 185,753 179,155 543,616 554,738 Operating Income $ 81,972 $ 85,426 $ 223,994 $ 295,488 Corporate Net Revenue $ (2,305 ) $ (21,895 ) $ (22,271 ) $ (38,602 ) Operating Expenses (a) 15,298 (438,333 ) 17,915 603,482 Operating Income (Loss) $ (17,603 ) $ 416,438 $ (40,186 ) $ (642,084 ) Total Net Revenue $ 608,908 $ 573,518 $ 1,641,806 $ 1,760,359 Operating Expenses 459,916 2,774 1,281,201 1,916,328 Operating Income (Loss) $ 148,992 $ 570,744 $ 360,605 $ (155,969 ) As Of September 30, 2016 December 31, 2015 Total Assets Financial Advisory $ 757,966 $ 763,374 Asset Management 620,554 640,034 Corporate (b) 2,923,783 3,074,366 Total (b) $ 4,302,303 $ 4,477,774 (a) Operating expenses include $(420,792) and $547,691 in the three month and nine month periods ended September 30, 2015, respectively, recorded for the provision (benefit) pursuant to the tax receivable agreement. See Note 16 for information regarding the tax receivable agreement obligation. (b) As of December 31, 2015, reflects the retrospective application of new disclosure guidance adopted by the Company for debt issuance costs. See Note 2. |
Organization and Basis of Pre28
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”, “Lazard”, “we” or the “Company”), including Lazard Ltd’s indirect investment in Lazard Group LLC, a Delaware limited liability company (collectively referred to, together with its subsidiaries, as “Lazard Group”), is one of the world’s preeminent financial advisory and asset management firms and has long specialized in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, governments, institutions, partnerships and individuals. Lazard Ltd indirectly held 100% of all outstanding Lazard Group common membership interests as of September 30, 2016 and December 31, 2015. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Amended and Restated Operating Agreement dated as of October 26, 2015, as amended (the “Operating Agreement”). Lazard Ltd’s primary operating asset is its indirect ownership of the common membership interests of, and managing member interests in, Lazard Group, whose principal operating activities are included in two business segments: • Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding mergers and acquisitions (“M&A”) and other strategic matters, restructurings, capital structure, capital raising, corporate preparedness and various other financial matters, and • Asset Management, which offers a broad range of global investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients. In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness and assets and liabilities associated with Lazard Group’s Paris-based subsidiary Lazard Frères Banque SA (“LFB”). LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by Lazard Frères Gestion SAS (“LFG”) and other clients, investment banking activities, including participation in underwritten offerings of securities in France, and asset-liability management. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying December 31, 2015 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. For example, discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an assumed annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates. The consolidated results of operations for the three month and nine month periods ended September 30, 2016 are not indicative of the results to be expected for any future interim or annual period. The condensed consolidated financial statements include Lazard Ltd, Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”) along with its subsidiaries, LFB and LFG, and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries. The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates: • Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs, and • Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE. When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation, primarily as a result of the adoption of the current guidance on classification of debt issuance costs and the impact of such guidance on the condensed consolidated statements of financial condition. |
Recent Accounting Developments | Revenue from Contracts with Customers —In May 2014, the Financial Accounting Standards Board (the “FASB”) issued comprehensive new revenue recognition guidance. The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The new guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is not permitted. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. During 2016, the FASB issued additional clarifications for certain aspects of the new revenue recognition guidance. The Company is currently evaluating the new guidance. Amendments to the Consolidation Analysis —In February 2015, the FASB issued updated guidance for the consolidation of certain legal entities. The updated guidance eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or VOEs. The new guidance is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this guidance using the modified retrospective method with an effective adoption date of January 1, 2016. The adoption of this guidance did not have a material impact on our consolidated financial statements or related disclosures. Interest—Imputation of Interest —In April 2015, the FASB issued updated guidance which requires a company to classify debt issuance costs related to a recognized debt liability in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted and is to be applied on a retrospective basis. The adoption of this guidance by the Company in the first quarter of 2016 resulted in a reclassification as of December 31, 2015 of $8,992 from “other assets” to “senior debt” on our condensed consolidated statements of financial condition. Intangibles—Goodwill and Other—Internal-Use Software : —In April 2015, the FASB issued updated guidance providing clarification on whether a cloud computing arrangement that contains a software license should be accounted for as internal-use software. The new guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance by the Company in the first quarter of 2016 did not have a material impact on our consolidated financial statements. Fair Value Measurement —In May 2015, the FASB issued updated guidance for the classification and disclosure of certain investments using the net asset value (“NAV”) as a practical expedient to measure the fair value of the investment. The guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using NAV as a practical expedient. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted. The new guidance is to be applied on a retrospective basis. The Company elected to early adopt this guidance in the quarter ended September 30, 2015 and has removed investments that are measured at NAV as a practical expedient from the fair value hierarchy in all periods presented in the consolidated financial statements and related disclosures. Leases —In February 2016, the FASB issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial condition, (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and (iii) classify all cash payments within operating activities in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The new guidance is to be applied on a modified retrospective basis. The Company is currently evaluating the new guidance. Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting —In March 2016, the FASB issued new guidance regarding equity-based incentive compensation. The new guidance includes several amendments which affect various aspects of the accounting for equity-based incentive compensation transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the new guidance. Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments —In June 2016, the FASB issued new guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The new guidance is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the new guidance. Classification of Certain Cash Receipts and Cash Payments— In August 2016, the FASB issued updated guidance which clarifies how a company should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The new guidance is to be applied on a retrospective basis. The Company is currently evaluating the new guidance. |
Fair Value Measurement Policy | Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities —Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access. Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data. Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis. The Company’s investments in debt securities and securities sold, not yet purchased are classified as Level 1 when their respective fair values are based on unadjusted quoted prices in active markets. The fair value of equities is classified as Level 1 or Level 3 as follows: marketable equity securities are classified as Level 1 and are valued based on the last trade price on the primary exchange for that security as provided by external pricing services; equity securities in private companies are generally classified as Level 3. The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are primarily based on the publicly reported closing price for the fund. The fair value of investments in private equity funds were classified as Level 3 for certain investments that were valued based on a potential transaction value as of September 30, 2015. The fair value of the contingent consideration liability is classified as Level 3 and the estimated fair value of the liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods. The fair values of derivatives entered into by the Company are classified as Level 2 and are based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair values of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 6. Investments Measured at Net Asset Value —As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) in private equity funds are not redeemable in the near term as a result of redemption restrictions. |
Derivative Instruments | The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, total return swap contracts on various equity and debt indices and other derivative contracts to economically hedge exposures to fluctuations in currency exchange rates, interest rates and equity and debt prices. The Company reports its derivative instruments separately as assets and liabilities unless a legal right of set-off exists under a master netting agreement enforceable by law. The Company’s derivative instruments are recorded at their fair value, and are included in “other assets” and “other liabilities” on the condensed consolidated statements of financial condition. Gains and losses on the Company’s derivative instruments not designated as economic hedging instruments are included in “interest income” and “interest expense”, respectively, or “revenue-other”, depending on the nature of the underlying item, in the condensed consolidated statements of operations. In addition to the derivative instruments described above, the Company records derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements, the fair value of which is based on the value of the underlying investments, adjusted for estimated forfeitures, and is included in “accrued compensation and benefits” in the condensed consolidated statements of financial condition. Changes in the fair value of the derivative liabilities are included in “compensation and benefits” in the condensed consolidated statements of operations, the impact of which equally offsets the changes in the fair value of investments which are currently expected to be delivered upon settlement of LFI and other similar deferred compensation arrangements, which are reported in “revenue-other” in the condensed consolidated statements of operations. |
Employer Contributions to Pension Plans | Employer Contributions to Pension Plans —The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans. |
Computation of Basic and Diluted Net Income per Share | Basic Net Income Per Share Numerator —utilizes net income attributable to Lazard Ltd for the respective periods, plus applicable adjustments to such net income associated with the inclusion of shares of Class A common stock issuable on a non-contingent basis. Denominator —utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods, plus applicable adjustments to such shares associated with shares of Class A common stock issuable on a non-contingent basis. Diluted Net Income Per Share Numerator —utilizes net income attributable to Lazard Ltd for the respective periods as in the basic net income per share calculation described above, plus, to the extent applicable and dilutive, (i) changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation and (ii) income tax related to (i) above. Denominator —utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock required to settle share-based incentive compensation. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Activity in Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts for the three month and nine month periods ended September 30, 2016 and 2015 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Beginning Balance $ 13,569 $ 21,071 $ 12,882 $ 23,540 Bad debt expense, net of recoveries 1,545 (256 ) 4,124 3,037 Charge-offs, foreign currency translation and other adjustments (2,147 ) (488 ) (4,039 ) (6,250 ) Ending Balance $ 12,967 $ 20,327 $ 12,967 $ 20,327 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments Schedule [Abstract] | |
Company's Investments and Securities Sold, Not Yet Purchased | The Company’s investments and securities sold, not yet purchased, consist of the following at September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Interest-bearing deposits $ 474 $ 54,885 Debt - 535 Equities 42,656 44,834 Funds: Alternative investments (a) 39,630 67,600 Debt (a) 75,545 67,134 Equity (a) 170,416 197,787 Private equity 126,726 100,219 412,317 432,740 Equity method 7,311 8,917 Total investments 462,758 541,911 Less: Interest-bearing deposits 474 54,885 Equity method 7,311 8,917 Investments, at fair value $ 454,973 $ 478,109 Securities sold, not yet purchased, at fair value (included in “other liabilities”) $ 3,512 $ 3,239 (a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $15,011, $38,071 and $129,530, respectively, at September 30, 2016 and $10,996, $31,598 and $156,081, respectively, at December 31, 2015, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12). |
Schedule of Trading Securities Net Unrealized Investment Gains and Losses | During the three month and nine month periods ended September 30, 2016 and 2015, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to “trading” securities still held as of the reporting date as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net unrealized investment gains (losses) $ 9,047 $ (24,962 ) $ 15,221 $ (26,077 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Classification of Investments and Certain Other Assets and Liabilities Measured at Fair Value on Recurring Basis and Investments Measured at NAV | The following tables present, as of September 30, 2016 and December 31, 2015, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient: September 30, 2016 Level 1 Level 2 Level 3 NAV (a) Total Assets: Investments: Debt $ - $ - $ - $ - $ - Equities 41,335 - 1,321 - 42,656 Funds: Alternative investments 26,472 - 13,158 39,630 Debt 75,539 - - 6 75,545 Equity 170,372 - - 44 170,416 Private equity - - - 126,726 126,726 Derivatives - 2,269 - - 2,269 Total $ 313,718 $ 2,269 $ 1,321 $ 139,934 $ 457,242 Liabilities: Securities sold, not yet purchased $ 3,512 $ - $ - $ - $ 3,512 Contingent consideration liability 17,028 $ 17,028 Derivatives - 186,196 - - 186,196 Total $ 3,512 $ 186,196 $ 17,028 $ - $ 206,736 December 31, 2015 Level 1 Level 2 Level 3 NAV (a) Total Assets: Investments: Debt $ 535 $ - $ - $ - $ 535 Equities 43,558 - 1,276 - 44,834 Funds: Alternative investments 45,135 - - 22,465 67,600 Debt 67,128 - - 6 67,134 Equity 197,745 - - 42 197,787 Private equity - - - 100,219 100,219 Derivatives - 1,048 - - 1,048 Total $ 354,101 $ 1,048 $ 1,276 $ 122,732 $ 479,157 Liabilities: Securities sold, not yet purchased $ 3,239 $ - $ - $ - $ 3,239 Derivatives - 195,689 - - 195,689 Total $ 3,239 $ 195,689 $ - $ - $ 198,928 (a) Represents certain investments measured at NAV or its equivalent as a practical expedient in determining fair value. In accordance with current accounting guidance, these investments have not been classified in the fair value hierarchy. See Note 2 for additional information. |
Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities | The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, 2016 Beginning Balance Net Realized Gains/Losses Included In Earnings (b) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,298 $ 2 $ - $ - $ 21 $ 1,321 Total Level 3 Assets $ 1,298 $ 2 $ - $ - $ 21 $ 1,321 Liabilities: Contingent consideration liability $ - $ 28 $ 17,000 $ - $ - $ 17,028 Total Level 3 Liabilities $ - $ 28 $ 17,000 $ - $ - $ 17,028 Nine Months Ended September 30, 2016 Beginning Balance Net Realized Gains/Losses Included In Earnings (b) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,276 $ 12 $ - $ - $ 33 $ 1,321 Total Level 3 Assets $ 1,276 $ 12 $ - $ - $ 33 $ 1,321 Liabilities: Contingent consideration liability $ - $ 28 $ 17,000 $ - $ - $ 17,028 Total Level 3 Liabilities $ - $ 28 $ 17,000 $ - $ - $ 17,028 Three Months Ended September 30, 2015 (a) Beginning Balance Net Realized Gains / Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,299 $ 2 $ - $ - $ (25 ) $ 1,276 Private equity funds 22,267 633 2,291 - - 25,191 Total Level 3 Assets $ 23,566 $ 635 $ 2,291 $ - $ (25 ) $ 26,467 Nine Months Ended September 30, 2015 (a) Beginning Balance Net Realized Gains/Losses Included In Earnings (b) Purchases/ Acquisitions/ Transfers (c) Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,315 $ 12 $ - $ - $ (51 ) $ 1,276 Private equity funds - 3,404 22,178 (391 ) - 25,191 Total Level 3 Assets $ 1,315 $ 3,416 $ 22,178 $ (391 ) $ (51 ) $ 26,467 (a) The tables for the three month and nine month periods ended September 30, 2015 reflect the retrospective application of new disclosure guidance adopted by the Company for investments using NAV or its equivalent as a practical expedient when measuring fair value. See Note 2. (b) Earnings recorded in “other revenue” for investments in equities and private equity funds for the three month and nine month periods ended September 30, 2016 and the three month and nine month periods ended September 30, 2015 include net unrealized gains of $2, $7, $635 and $3,416, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2016 include unrealized losses of $28. (c) Certain investments that were valued at NAV as of December 31, 2014 of $19,255 were transferred to Level 3 from the NAV category in the nine months ended September 30, 2015 as these investments were valued based on potential transaction value as of September 30, 2015. |
Fair Value of Certain Investments Based on NAV | The following tables present, at September 30, 2016 and December 31, 2015, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2016 Estimated Liquidation Period of Investments Not Redeemable Investments Redeemable Fair Value Unfunded Commitments % of Fair Value Not Redeemable % Next 5 Years % 5-10 Years % Thereafter Redemption Frequency Redemption Notice Period Alternative Hedge funds $ 11,874 $ - NA NA NA NA (a) <30-60 days Funds of funds 498 - NA NA NA NA (b) <30-90 days Other 786 - NA NA NA NA (c) <30-60 days Debt funds 6 - NA NA NA NA (d) 30 days Equity funds 44 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 93,174 9,183 (f) 100 % 12 % 29 % 59 % NA NA Mezzanine debt 33,552 - 100 % - - 100 % NA NA Total $ 139,934 $ 9,183 (a) weekly (80%), monthly (1%) and quarterly (19%) (b) monthly (98%) and quarterly (2%) (c) daily (3%) and monthly (97%) (d) daily (100%) (e) daily (18%), monthly (54%) and quarterly (28%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,724 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. December 31, 2015 Estimated Liquidation Period of Investments Not Redeemable Investments Redeemable Fair Value Unfunded Commitments % of Fair Value Not Redeemable % Next 5 Years % 5-10 Years % Thereafter Redemption Frequency Redemption Notice Period Alternative Hedge funds $ 20,410 $ - NA NA NA NA (a) <30-60 days Funds of funds 465 - NA NA NA NA (b) <30-90 days Other 1,590 - NA NA NA NA (c) <30-60 days Debt funds 6 - NA NA NA NA (d) 30 days Equity funds 42 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 67,895 10,242 (f) 100 % 18 % 39 % 43 % NA NA Mezzanine debt 32,324 - 100 % - - 100 % NA NA Total $ 122,732 $ 10,242 (a) weekly (23%), monthly (69%) and quarterly (8%) (b) monthly (98%) and quarterly (2%) (c) daily (20%) and monthly (80%) (d) daily (100%) (e) daily (18%), monthly (54%) and quarterly (28%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $5,501 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition | The tables below present the fair values of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair values of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Derivative Assets: Forward foreign currency exchange rate contracts $ 2,269 $ 1,015 Total return swaps and other (a) - 33 $ 2,269 $ 1,048 Derivative Liabilities: Forward foreign currency exchange rate contracts $ 1,873 $ 1,584 Total return swaps and other (a) 9,053 531 LFI and other similar deferred compensation arrangements 175,270 193,574 $ 186,196 $ 195,689 (a) For total return swaps, amounts represent the netting of gross derivative assets and liabilities of $324 and $9,377 as of September 30, 2016, respectively, and $460 and $958 as of December 31, 2015, respectively, for contracts with the same counterparty under legally enforceable master netting agreements. Such amounts are recorded “net” in “other assets”, with receivables for net cash collateral under such contracts of $17,210 and $9,636 as of September 30, 2016 and December 31, 2015, respectively. |
Net Gains (Losses) with Respect to Derivative Instruments Not Designated as Hedging Instruments | Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2016 and 2015, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Forward foreign currency exchange rate contracts $ (1,591 ) $ 1,109 $ (8,445 ) $ 12,486 LFI and other similar deferred compensation arrangements (6,909 ) 12,145 (4,707 ) 9,903 Total return swaps and other (4,032 ) 10,945 (5,494 ) 7,761 Total $ (12,532 ) $ 24,199 $ (18,646 ) $ 30,150 |
Property (Tables)
Property (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Components of Property | At September 30, 2016 and December 31, 2015, property consists of the following: Estimated Depreciable Life in Years September 30, 2016 December 31, 2015 Buildings 33 $ 140,633 $ 137,181 Leasehold improvements 3-20 167,314 167,838 Furniture and equipment 3-10 167,711 160,553 Construction in progress 18,059 7,099 Total 493,717 472,671 Less - Accumulated depreciation and amortization 289,417 265,506 Property $ 204,300 $ 207,165 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Goodwill and Other Intangible Assets | The components of goodwill and other intangible assets at September 30, 2016 and December 31, 2015 are presented below: September 30, December 31, 2016 2015 Goodwill $ 346,044 $ 320,761 Other intangible assets (net of accumulated amortization) 7,806 6,215 $ 353,850 $ 326,976 |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2016 and 2015 are as follows: Nine Months Ended September 30, 2016 2015 Balance, January 1 $ 320,761 $ 335,402 Business acquisitions (see Note 10) 20,377 - Foreign currency translation adjustments 4,906 (18,413 ) Balance, September 30 $ 346,044 $ 316,989 |
Gross Cost and Accumulated Amortization of Other Intangible Assets | The gross cost and accumulated amortization of other intangible assets as of September 30, 2016 and December 31, 2015, by major intangible asset category, are as follows: September 30, 2016 December 31, 2015 Gross Cost Accumulated Amortization Net Carrying Amount Gross Cost Accumulated Amortization Net Carrying Amount Success/performance fees $ 34,140 $ 26,334 $ 7,806 $ 30,740 $ 25,192 $ 5,548 Management fees, customer relationships and non-compete agreements 33,036 33,036 - 33,036 32,369 667 $ 67,176 $ 59,370 $ 7,806 $ 63,776 $ 57,561 $ 6,215 |
Estimated Future Amortization Expense | Estimated future amortization expense is as follows: Year Ending December 31, Amortization Expense (a) 2016 (October 1 through December 31) $ 4,482 2017 2,346 2018 850 2019 75 2020 53 Total amortization expense $ 7,806 (a) Approximately 27% of intangible asset amortization is attributable to a noncontrolling interest. |
Senior Debt (Tables)
Senior Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Senior Debt | Senior debt is comprised of the following as of September 30, 2016 and December 31, 2015: Outstanding as of Initial Annual September 30, 2016 December 31, 2015 Principal Amount Maturity Date Interest Rate(b) Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value Lazard Group 2017 Senior Notes (a) 600,000 6/15/17 6.85 % $ 98,350 $ 77 $ 98,273 $ 98,350 $ 159 $ 98,191 Lazard Group 2020 Senior Notes 500,000 11/14/20 4.25 % 500,000 3,800 496,200 500,000 4,491 495,509 Lazard Group 2025 Senior Notes (a) 400,000 2/13/25 3.75 % 400,000 3,985 396,015 400,000 4,342 395,658 Total $ 998,350 $ 7,862 $ 990,488 $ 998,350 $ 8,992 $ 989,358 (a) During February 2015, Lazard Group completed an offering of $400,000 aggregate principal amount of 3.75% senior notes due 2025 (the “2025 Notes”). Lazard Group also issued a notice to redeem $450,000 of Lazard Group’s 6.85% senior notes due June 15, 2017 (the “2017 Notes”) in February 2015. Interest on the 2025 Notes is payable semi-annually on March 1 and September 1 of each year beginning September 1, 2015. Lazard Group used the net proceeds of the 2025 Notes, together with cash on hand, to redeem or otherwise retire $450,000 of the 2017 Notes, which, including the recognition of unamortized issuance costs, resulted in a loss on debt extinguishment of $60,219. Such loss on debt extinguishment was recorded in “operating expenses—other” on the condensed consolidated statement of operations for the nine month period ended September 30, 2015. (b) The effective interest rates of the 2017 Notes, Lazard Group’s 4.25% senior notes due November 14, 2020 (the “2020 Notes”) and the 2025 Notes are 6.96%, 4.43% and 3.87%, respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Share Repurchase Authorized by Board of Directors | Share Repurchase Program — During the nine month period ended September 30, 2016 and since 2013, the Board of Directors of Lazard authorized the repurchase of Class A common stock as set forth in the table below. Date Repurchase Authorization Expiration October, 2013 $ 100,000 December April, 2014 $ 200,000 December 31, 2015 February, 2015 $ 150,000 December 31, 2016 January, 2016 $ 200,000 December 31, 2017 April, 2016 $ 113,182 December 31, 2017 |
Schedule of Share Repurchase Program | The Company expects that the share repurchase program will primarily be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”) and the Lazard Ltd 2005 Equity Incentive Plan (the “2005 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from quarter to quarter due to a variety of factors. Purchases with respect to such program are set forth in the table below: Nine Months Ended September 30: Number of Shares Purchased Average Price Per Share 2015 3,141,526 $ 50.76 2016 6,656,250 $ 34.38 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”) —The tables below reflect the balances of each component of AOCI at September 30, 2016 and 2015 and activity during the nine month periods then ended: Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Ltd AOCI Balance, January 1, 2016 $ (97,284 ) $ (137,073 ) $ (234,357 ) $ (1 ) $ (234,356 ) Activity January 1 to September 30, 2016: Other comprehensive loss before reclassifications (4,524 ) (649 ) (5,173 ) - (5,173 ) Adjustments for items reclassified to earnings, net of tax - 3,441 3,441 - 3,441 Net other comprehensive income (loss) (4,524 ) 2,792 (1,732 ) - (1,732 ) Balance, September 30, 2016 $ (101,808 ) $ (134,281 ) $ (236,089 ) $ (1 ) $ (236,088 ) Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Ltd AOCI Balance, January 1, 2015 $ (46,102 ) $ (154,665 ) $ (200,767 ) $ (1 ) $ (200,766 ) Activity January 1 to September 30, 2015: Other comprehensive loss before reclassifications (41,376 ) (14,140 ) (55,516 ) - (55,516 ) Adjustments for items reclassified to earnings, net of tax - 3,757 3,757 - 3,757 Net other comprehensive loss (41,376 ) (10,383 ) (51,759 ) - (51,759 ) Balance, September 30, 2015 $ (87,478 ) $ (165,048 ) $ (252,526 ) $ (1 ) $ (252,525 ) |
Adjustments for Items Reclassified Out of AOCI | The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Amortization relating to employee benefit plans (a) $ 1,509 $ 1,749 $ 4,612 $ 5,226 Less - related income taxes 375 368 1,171 1,469 Total reclassifications, net of tax $ 1,134 $ 1,381 $ 3,441 $ 3,757 (a) Included in the computation of net periodic benefit cost (see Note 13). Such amounts are included in “compensation and benefits” expense on the condensed consolidated statements of operations. |
Net Income Attributable to Noncontrolling Interests | The tables below summarize net income attributable to noncontrolling interests for the three month and nine month periods ended September 30, 2016 and 2015 and noncontrolling interests as of September 30, 2016 and December 31, 2015 in the Company’s condensed consolidated financial statements: Net Income Attributable to Noncontrolling Interests Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Edgewater $ 81 $ 1,268 $ 4,988 $ 9,002 Other 1 1 1 2 Total $ 82 $ 1,269 $ 4,989 $ 9,004 Noncontrolling Interests as of September 30, 2016 December 31, 2015 Edgewater $ 57,249 $ 53,132 Other 718 719 Total $ 57,967 $ 53,851 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Impact of Share-Based Incentive Plans on Compensation and Benefits Expense | The following reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, performance-based restricted stock units (“PRSUs”) and restricted stock awards) and “professional services” expense (with respect to deferred stock units (“DSUs”)) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Share-based incentive awards: RSUs $ 39,447 $ 38,156 $ 134,419 $ 129,490 PRSUs 11,252 10,207 38,276 24,819 Restricted Stock 7,015 3,635 38,833 19,088 DSUs 105 32 1,616 1,426 Total $ 57,819 $ 52,030 $ 213,144 $ 174,823 |
Schedule of Issuance of RSUs and Charges to Retained Earnings | During the nine month periods ended September 30, 2016 and 2015, issuances of RSUs pertaining to such dividend participation rights and respective charges to “retained earnings”, net of estimated forfeitures (with corresponding credits to “additional paid-in-capital”), consisted of the following: Nine Months Ended September 30, 2016 2015 Number of RSUs issued 969,054 603,608 Charges to retained earnings, net of estimated forfeitures $ 32,849 $ 30,340 |
Summary of LFI and Other Similar Deferred Compensation Arrangements | The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the nine month periods ended September 30, 2016 and 2015: Prepaid Compensation Asset Compensation Liability Balance, January 1, 2016 $ 75,703 $ 193,574 Granted 51,871 51,871 Settled - (75,583 ) Forfeited (1,967 ) (3,435 ) Amortization (56,784 ) - Change in fair value related to: Increase in fair value of underlying investments - 4,707 Adjustment for estimated forfeitures - 3,551 Other (1,232 ) 585 Balance, September 30, 2016 $ 67,591 $ 175,270 Prepaid Compensation Asset Compensation Liability Balance, January 1, 2015 $ 73,278 $ 207,306 Granted 89,817 89,817 Settled - (94,899 ) Forfeited (3,610 ) (6,873 ) Amortization (64,136 ) - Change in fair value related to: Decrease in fair value of underlying investments - (9,903 ) Adjustment for estimated forfeitures - 5,219 Other (184 ) (2,030 ) Balance, September 30, 2015 $ 95,165 $ 188,637 The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.8 years subsequent to September 30, 2016. The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Amortization, net of forfeitures $ 18,116 $ 21,168 $ 58,867 $ 66,092 Change in the fair value of underlying investments 6,909 (12,145 ) 4,707 (9,903 ) Total $ 25,025 $ 9,023 $ 63,574 $ 56,189 |
Restricted Stock Units And Deferred Stock Units [Member] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity relating to RSUs and DSUs during the nine month periods ended September 30, 2016 and 2015: RSUs DSUs Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance, January 1, 2016 9,599,658 $ 44.06 312,670 $ 35.98 Granted (including 969,054 RSUs relating to dividend participation) 6,649,625 $ 34.64 46,178 $ 34.98 Forfeited (181,337 ) $ 39.79 - - Vested (4,527,559 ) $ 39.16 (84,759 ) $ 35.30 Balance, September 30, 2016 11,540,387 $ 40.62 274,089 $ 36.02 Balance, January 1, 2015 13,529,116 $ 35.19 286,227 $ 34.21 Granted (including 603,608 RSUs relating to dividend participation) 4,111,619 $ 48.84 25,722 $ 55.43 Forfeited (461,297 ) $ 43.49 - - Vested (7,159,642 ) $ 30.87 - - Balance, September 30, 2015 10,019,796 $ 43.50 311,949 $ 35.96 |
Restricted Stock Awards Class A [Member] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the nine month periods ended September 30, 2016 and 2015: Restricted Shares Weighted Average Grant Date Fair Value Balance, January 1, 2016 713,738 $ 47.12 Granted 1,795,258 $ 36.74 Forfeited (33,943 ) $ 40.49 Vested (802,276 ) $ 37.09 Balance, September 30, 2016 1,672,777 $ 40.92 Balance, January 1, 2015 729,827 $ 38.63 Granted 576,886 $ 50.88 Forfeited (45,500 ) $ 50.24 Vested (512,516 ) $ 39.25 Balance, September 30, 2015 748,697 $ 46.94 |
PRSUs [Member] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity relating to PRSUs during the nine month periods ended September 30, 2016 and 2015: PRSUs Weighted Average Grant Date Fair Value Balance, January 1, 2016 1,019,038 $ 44.49 Granted (a) 627,956 $ 32.91 Vested (417,021 ) $ 38.43 Balance, September 30, 2016 1,229,973 $ 40.63 Balance, January 1, 2015 1,347,148 $ 37.79 Granted (a) 368,389 $ 52.85 Vested (696,499 ) $ 35.96 Balance, September 30, 2015 1,019,038 $ 44.49 (a) Represents PRSU awards granted during the relevant year at the target payout level. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure Abstract | |
Components of Net Periodic Benefit Cost (Credit) | The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s post-retirement plans for the three month and nine month periods ended September 30, 2016 and 2015: Pension Plans Medical Plan Three Months Ended September 30, 2016 2015 2016 2015 Components of Net Periodic Benefit Cost (Credit): Service cost $ 313 $ 440 $ 3 $ 7 Interest cost 4,833 6,237 42 45 Expected return on plan assets (6,648 ) (7,146 ) Amortization of: Prior service cost 599 595 Net actuarial loss (gain) 957 1,154 (47 ) Net periodic benefit cost (credit) $ 54 $ 1,280 $ (2 ) $ 52 Pension Plans Medical Plan Nine Months Ended September 30, 2016 2015 2016 2015 Components of Net Periodic Benefit Cost (Credit): Service cost $ 934 $ 1,153 $ 9 $ 20 Interest cost 15,292 18,496 125 135 Expected return on plan assets (21,047 ) (21,236 ) Amortization of: Prior service cost 1,793 1,789 Net actuarial loss (gain) 2,958 3,437 (139 ) Net periodic benefit cost (credit) $ (70 ) $ 3,639 $ (5 ) $ 155 |
Net Income Per Share of Class39
Net Income Per Share of Class A Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Company's Basic and Diluted Net Income Per Share and Weighted Average Shares Outstanding | The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month and nine month periods ended September 30, 2016 and 2015 are presented below: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to Lazard Ltd - basic $ 112,536 $ 398,521 $ 259,716 $ 828,587 Net income attributable to Lazard Ltd - diluted $ 112,536 $ 398,521 $ 259,716 $ 828,587 Weighted average number of shares of Class A common stock outstanding 124,296,449 125,852,995 125,218,272 125,192,436 Add - adjustment for shares of Class A common stock issuable on a non-contingent basis 112,435 72,011 85,486 72,011 Weighted average number of shares of Class A common stock outstanding - basic 124,408,884 125,925,006 125,303,758 125,264,447 Add - dilutive effect, as applicable, of: Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation 7,911,971 7,190,413 7,214,129 7,954,690 Weighted average number of shares of Class A common stock outstanding - diluted 132,320,855 133,115,419 132,517,887 133,219,137 Net income attributable to Lazard Ltd per share of Class A common stock: Basic $ 0.90 $ 3.16 $ 2.07 $ 6.61 Diluted $ 0.85 $ 2.99 $ 1.96 $ 6.22 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets | Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Financial Advisory Net Revenue $ 343,488 $ 330,832 $ 896,467 $ 948,735 Operating Expenses 258,865 261,952 719,670 758,108 Operating Income $ 84,623 $ 68,880 $ 176,797 $ 190,627 Asset Management Net Revenue $ 267,725 $ 264,581 $ 767,610 $ 850,226 Operating Expenses 185,753 179,155 543,616 554,738 Operating Income $ 81,972 $ 85,426 $ 223,994 $ 295,488 Corporate Net Revenue $ (2,305 ) $ (21,895 ) $ (22,271 ) $ (38,602 ) Operating Expenses (a) 15,298 (438,333 ) 17,915 603,482 Operating Income (Loss) $ (17,603 ) $ 416,438 $ (40,186 ) $ (642,084 ) Total Net Revenue $ 608,908 $ 573,518 $ 1,641,806 $ 1,760,359 Operating Expenses 459,916 2,774 1,281,201 1,916,328 Operating Income (Loss) $ 148,992 $ 570,744 $ 360,605 $ (155,969 ) As Of September 30, 2016 December 31, 2015 Total Assets Financial Advisory $ 757,966 $ 763,374 Asset Management 620,554 640,034 Corporate (b) 2,923,783 3,074,366 Total (b) $ 4,302,303 $ 4,477,774 (a) Operating expenses include $(420,792) and $547,691 in the three month and nine month periods ended September 30, 2015, respectively, recorded for the provision (benefit) pursuant to the tax receivable agreement. See Note 16 for information regarding the tax receivable agreement obligation. (b) As of December 31, 2015, reflects the retrospective application of new disclosure guidance adopted by the Company for debt issuance costs. See Note 2. |
Organization and Basis of Pre41
Organization and Basis of Presentation - Additional Information (Detail) - Segment | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Organization And Basis Of Presentation [Line Items] | ||
Governing operating agreement, date | Oct. 26, 2015 | |
Number of business segments | 2 | |
Lazard Group LLC [Member] | ||
Organization And Basis Of Presentation [Line Items] | ||
Percentage of common membership interests held | 100.00% | 100.00% |
Recent Accounting Developments
Recent Accounting Developments - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Accounting Standards Update 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification from other assets to senior debt | $ 8,992 |
Receivables - Schedule of Activ
Receivables - Schedule of Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance For Doubtful Accounts Receivable Rollforward | ||||
Allowance for doubtful accounts receivables, Beginning balance | $ 13,569 | $ 21,071 | $ 12,882 | $ 23,540 |
Bad debt expense, net of recoveries | 1,545 | (256) | 4,124 | 3,037 |
Charge-offs, foreign currency translation and other adjustments | (2,147) | (488) | (4,039) | (6,250) |
Allowance for doubtful accounts receivables, Ending balance | $ 12,967 | $ 20,327 | $ 12,967 | $ 20,327 |
Receivables - Additional Inform
Receivables - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest-bearing financing fee receivables | $ 77,056,000 | $ 81,774,000 | ||||
Allowance for doubtful accounts receivables | 12,967,000 | $ 13,569,000 | 12,882,000 | $ 20,327,000 | $ 21,071,000 | $ 23,540,000 |
Aggregate carrying amount of non-interest bearing receivables | 460,639,000 | 415,439,000 | ||||
Trade Receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivables past due or deemed uncollectible | 21,580,000 | 19,923,000 | ||||
Financing Receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for doubtful accounts receivables | $ 0 | $ 0 |
Investments - Company's Investm
Investments - Company's Investments and Securities Sold, Not Yet Purchased (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Total investments | $ 462,758 | $ 541,911 |
Investments, at fair value | 454,973 | 478,109 |
Securities sold, not yet purchased, at fair value (included in "other liabilities") | 3,512 | 3,239 |
Equity Method [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 7,311 | 8,917 |
Interest-bearing Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 474 | 54,885 |
Debt [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 535 | |
Investments, at fair value | 535 | |
Equities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 42,656 | 44,834 |
Alternative Investment Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 39,630 | 67,600 |
Investments, at fair value | 39,630 | 67,600 |
Debt Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 75,545 | 67,134 |
Investments, at fair value | 75,545 | 67,134 |
Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 170,416 | 197,787 |
Investments, at fair value | 170,416 | 197,787 |
Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 126,726 | 100,219 |
Investments, at fair value | 126,726 | 100,219 |
Funds Total [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 412,317 | $ 432,740 |
Investments - Company's Inves46
Investments - Company's Investments and Securities Sold, Not Yet Purchased (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Investments | $ 462,758 | $ 541,911 |
Alternative Investment Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 39,630 | 67,600 |
Alternative Investment Funds [Member] | Lazard Fund Interests [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 15,011 | 10,996 |
Debt Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 75,545 | 67,134 |
Debt Funds [Member] | Lazard Fund Interests [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 38,071 | 31,598 |
Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 170,416 | 197,787 |
Equity Funds [Member] | Lazard Fund Interests [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | $ 129,530 | $ 156,081 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Investments [Line Items] | ||
Revenue relating to disposal of business | $ 24,388 | |
Minimum [Member] | Interest-bearing Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Interest-bearing deposits maturity period | 3 months | |
Maximum [Member] | Interest-bearing Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Interest-bearing deposits maturity period | 1 year |
Investments - Schedule of Tradi
Investments - Schedule of Trading Securities Net Unrealized Investment Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Realized Or Unrealized Gain Loss On Trading Securities [Abstract] | ||||
Net unrealized investment gains (losses) | $ 9,047 | $ (24,962) | $ 15,221 | $ (26,077) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Classification of Investments and Certain Other Assets and Liabilities Measured at Fair Value on Recurring Basis and Investments Measured at NAV (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 454,973 | $ 478,109 |
Total Derivative Assets | 2,269 | 1,048 |
Total Investments and derivatives measured at fair value | 457,242 | 479,157 |
Securities sold, not yet purchased | 3,512 | 3,239 |
Contingent consideration liability | 17,028 | |
Total Derivative Liabilities | 186,196 | 195,689 |
Total of Liabilities Measured at Fair Value | 206,736 | 198,928 |
Fair Value, Measurements, Nonrecurring [Member] | NAV [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments and derivatives measured at fair value | 139,934 | 122,732 |
Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 535 | |
Equities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 42,656 | 44,834 |
Alternative Investment Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 39,630 | 67,600 |
Alternative Investment Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 13,158 | 22,465 |
Debt Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 75,545 | 67,134 |
Debt Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 6 | 6 |
Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 170,416 | 197,787 |
Equity Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 44 | 42 |
Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 126,726 | 100,219 |
Private Equity Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 126,726 | 100,219 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments and derivatives measured at fair value | 313,718 | 354,101 |
Securities sold, not yet purchased | 3,512 | 3,239 |
Total of Liabilities Measured at Fair Value | 3,512 | 3,239 |
Level 1 [Member] | Debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 535 | |
Level 1 [Member] | Equities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 41,335 | 43,558 |
Level 1 [Member] | Alternative Investment Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 26,472 | 45,135 |
Level 1 [Member] | Debt Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 75,539 | 67,128 |
Level 1 [Member] | Equity Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 170,372 | 197,745 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets | 2,269 | 1,048 |
Total Investments and derivatives measured at fair value | 2,269 | 1,048 |
Total Derivative Liabilities | 186,196 | 195,689 |
Total of Liabilities Measured at Fair Value | 186,196 | 195,689 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments and derivatives measured at fair value | 1,321 | 1,276 |
Contingent consideration liability | 17,028 | |
Total of Liabilities Measured at Fair Value | 17,028 | |
Level 3 [Member] | Equities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 1,321 | $ 1,276 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Assets: | ||||
Beginning Balance | $ 1,298 | $ 23,566 | $ 1,276 | $ 1,315 |
Net Unrealized/Realized Gains/Losses Included In Earnings | 2 | 635 | 12 | 3,416 |
Purchases/Acquisitions/Transfers | 0 | 2,291 | 0 | 22,178 |
Sales/Dispositions | 0 | 0 | (391) | |
Foreign Currency Translation Adjustments | 21 | (25) | 33 | (51) |
Ending Balance | 1,321 | 26,467 | 1,321 | 26,467 |
Liabilities: | ||||
Beginning Balance | 0 | 0 | ||
Net Unrealized/Realized Gains/Losses Included In Earnings | 28 | 28 | ||
Purchases/Acquisitions/Transfers | 17,000 | 17,000 | ||
Sales/Dispositions | 0 | 0 | ||
Foreign Currency Translation Adjustments | 0 | 0 | ||
Ending Balance | 17,028 | 17,028 | ||
Contingent Consideration Liability [Member] | ||||
Liabilities: | ||||
Beginning Balance | 0 | 0 | ||
Net Unrealized/Realized Gains/Losses Included In Earnings | 28 | 28 | ||
Purchases/Acquisitions/Transfers | 17,000 | 17,000 | ||
Sales/Dispositions | 0 | 0 | ||
Foreign Currency Translation Adjustments | 0 | 0 | ||
Ending Balance | 17,028 | 17,028 | ||
Equities [Member] | ||||
Assets: | ||||
Beginning Balance | 1,298 | 1,299 | 1,276 | 1,315 |
Net Unrealized/Realized Gains/Losses Included In Earnings | 2 | 2 | 12 | 12 |
Purchases/Acquisitions/Transfers | 0 | 0 | ||
Sales/Dispositions | 0 | 0 | ||
Foreign Currency Translation Adjustments | 21 | (25) | 33 | (51) |
Ending Balance | $ 1,321 | 1,276 | $ 1,321 | 1,276 |
Private Equity Funds [Member] | ||||
Assets: | ||||
Beginning Balance | 22,267 | |||
Net Unrealized/Realized Gains/Losses Included In Earnings | 633 | 3,404 | ||
Purchases/Acquisitions/Transfers | 2,291 | 22,178 | ||
Sales/Dispositions | (391) | |||
Ending Balance | $ 25,191 | $ 25,191 |
Fair Value Measurements - Sum51
Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities (Parenthetical) (Detail) - Equities [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Instruments Classified In Shareholders Equity Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Net unrealized gains | $ 2 | $ 635 | $ 7 | $ 3,416 |
Investments valued at NAV transferred to Level 3 | $ 19,255 | |||
Contingent Consideration Liability [Member] | ||||
Fair Value Instruments Classified In Shareholders Equity Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Net unrealized losses | $ 28 | $ 28 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value Option Quantitative Disclosures [Line Items] | |||||
Transfers between Level 1, 2 and 3 in fair value measurement hierarchy | $ 0 | $ 0 | $ 0 | $ 0 | |
Unfunded commitments | 9,183,000 | 9,183,000 | $ 10,242,000 | ||
EGCP III [Member] | |||||
Fair Value Option Quantitative Disclosures [Line Items] | |||||
Unfunded commitments | $ 8,613,000 | $ 8,613,000 | |||
End of the investment period | Oct. 12, 2016 | ||||
Remaining obligation date | Oct. 12, 2023 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Certain Investments Based on NAV (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 139,934 | $ 122,732 |
Unfunded commitments | 9,183 | 10,242 |
Hedge Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 11,874 | $ 20,410 |
Hedge Funds [Member] | Weekly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 80.00% | 23.00% |
Hedge Funds [Member] | Monthly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 1.00% | 69.00% |
Hedge Funds [Member] | Quarterly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 19.00% | 8.00% |
Hedge Funds [Member] | Minimum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 30 days | 30 days |
Hedge Funds [Member] | Maximum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 60 days | 60 days |
Funds of Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 498 | $ 465 |
Funds of Funds [Member] | Monthly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 98.00% | 98.00% |
Funds of Funds [Member] | Quarterly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 2.00% | 2.00% |
Funds of Funds [Member] | Minimum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 30 days | 30 days |
Funds of Funds [Member] | Maximum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 90 days | 90 days |
Other [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 786 | $ 1,590 |
Other [Member] | Monthly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 97.00% | 80.00% |
Other [Member] | Daily [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 3.00% | 20.00% |
Other [Member] | Minimum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 30 days | 30 days |
Other [Member] | Maximum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 60 days | 60 days |
Debt Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 6 | $ 6 |
Investments Redeemable, Redemption Notice Period | 30 days | 30 days |
Debt Funds [Member] | Daily [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 100.00% | 100.00% |
Equity Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 44 | $ 42 |
Equity Funds [Member] | Monthly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 54.00% | 54.00% |
Equity Funds [Member] | Quarterly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 28.00% | 28.00% |
Equity Funds [Member] | Daily [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 18.00% | 18.00% |
Equity Funds [Member] | Minimum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 30 days | 30 days |
Equity Funds [Member] | Maximum [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Redemption Notice Period | 90 days | 90 days |
Private Equity Funds [Member] | Equity Growth [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 93,174 | $ 67,895 |
Unfunded commitments | $ 9,183 | $ 10,242 |
% of Fair Value Not Redeemable | 100.00% | 100.00% |
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years | 12.00% | 18.00% |
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years | 29.00% | 39.00% |
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter | 59.00% | 43.00% |
Private Equity Funds [Member] | Mezzanine Debt [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 33,552 | $ 32,324 |
% of Fair Value Not Redeemable | 100.00% | 100.00% |
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter | 100.00% | 100.00% |
Fair Value Measurements - Fai54
Fair Value Measurements - Fair Value of Certain Investments Based on NAV (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded commitments | $ 9,183 | $ 10,242 |
Private Equity Funds [Member] | Consolidated But Not Owned [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded commitments | $ 6,724 | $ 5,501 |
Derivatives - Fair Values of De
Derivatives - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 2,269 | $ 1,048 |
Derivative Liabilities | 186,196 | 195,689 |
Forward Foreign Currency Exchange Rate Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 2,269 | 1,015 |
Derivative Liabilities | 1,873 | 1,584 |
Total Return Swaps and Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 33 | |
Derivative Liabilities | 9,053 | 531 |
LFI and Other Similar Deferred Compensation Arrangements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 175,270 | $ 193,574 |
Derivatives - Fair Values of 56
Derivatives - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||||
Gross derivative liability | $ 175,270 | $ 193,574 | $ 188,637 | $ 207,306 |
Total Return Swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gross derivative assets | 324 | 460 | ||
Gross derivative liability | 9,377 | 958 | ||
Cash collateral pledged for total return swaps | $ 17,210 | $ 9,636 |
Derivatives - Net Gains (Losses
Derivatives - Net Gains (Losses) with Respect to Derivative Instruments Not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives not designated as hedging instruments | $ (12,532) | $ 24,199 | $ (18,646) | $ 30,150 |
Forward Foreign Currency Exchange Rate Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives not designated as hedging instruments | (1,591) | 1,109 | (8,445) | 12,486 |
LFI and Other Similar Deferred Compensation Arrangements [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives not designated as hedging instruments | (6,909) | 12,145 | (4,707) | 9,903 |
Total Return Swaps and Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives not designated as hedging instruments | $ (4,032) | $ 10,945 | $ (5,494) | $ 7,761 |
Property - Components of Proper
Property - Components of Property (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 493,717 | $ 472,671 |
Less - Accumulated depreciation and amortization | 289,417 | 265,506 |
Property | 204,300 | 207,165 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 140,633 | 137,181 |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 33 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 167,314 | 167,838 |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 20 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 167,711 | 160,553 |
Furniture and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Furniture and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 18,059 | $ 7,099 |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets - Components of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 346,044 | $ 320,761 | $ 316,989 | $ 335,402 |
Other intangible assets (net of accumulated amortization) | 7,806 | 6,215 | ||
Goodwill and other intangible assets, Total | $ 353,850 | $ 326,976 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 346,044 | $ 316,989 | $ 346,044 | $ 316,989 | $ 320,761 | $ 335,402 |
Amortization and Other Acquisition Related Costs [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | 835 | $ 511 | 1,809 | $ 3,401 | ||
Financial Advisory Segment [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | 281,503 | 281,503 | 256,220 | |||
Asset Management Segment [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 64,541 | $ 64,541 | $ 64,541 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning Balance | $ 320,761 | $ 335,402 |
Business acquisitions | 20,377 | |
Foreign currency translation adjustments | 4,906 | (18,413) |
Ending Balance | $ 346,044 | $ 316,989 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Gross Cost and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Gross Cost | $ 67,176 | $ 63,776 |
Goodwill and other intangible assets, accumulated amortization | 59,370 | 57,561 |
Other intangible assets, Net Carrying Amount | 7,806 | 6,215 |
Success/Performance Fees [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Gross Cost | 34,140 | 30,740 |
Goodwill and other intangible assets, accumulated amortization | 26,334 | 25,192 |
Other intangible assets, Net Carrying Amount | 7,806 | 5,548 |
Management Fees, Customer Relationships and Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Gross Cost | 33,036 | 33,036 |
Goodwill and other intangible assets, accumulated amortization | $ 33,036 | 32,369 |
Other intangible assets, Net Carrying Amount | $ 667 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2016 (October 1 through December 31) | $ 4,482 |
2,017 | 2,346 |
2,018 | 850 |
2,019 | 75 |
2,020 | 53 |
Total amortization expense | $ 7,806 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Percentage of intangible asset amortization attributable to non-controlling interests | 27.00% |
Senior Debt - Senior Debt (Deta
Senior Debt - Senior Debt (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Feb. 28, 2015 | |
Debt Instrument [Line Items] | |||
Senior Debt, Outstanding Principal | $ 998,350,000 | $ 998,350,000 | |
Senior Debt, Outstanding Unamortized Debt Costs | 7,862,000 | 8,992,000 | |
Senior Debt, Outstanding Carrying Value | 990,488,000 | 989,358,000 | |
Lazard Group 6.85% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Debt, Initial Principal Amount | $ 600,000,000 | ||
Senior Debt, Maturity Date | Jun. 15, 2017 | ||
Senior Debt, Annual Interest Rate | 6.85% | 6.85% | |
Senior Debt, Outstanding Principal | $ 98,350,000 | 98,350,000 | |
Senior Debt, Outstanding Unamortized Debt Costs | 77,000 | 159,000 | |
Senior Debt, Outstanding Carrying Value | 98,273,000 | 98,191,000 | |
Lazard Group 4.25% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Debt, Initial Principal Amount | $ 500,000,000 | ||
Senior Debt, Maturity Date | Nov. 14, 2020 | ||
Senior Debt, Annual Interest Rate | 4.25% | ||
Senior Debt, Outstanding Principal | $ 500,000,000 | 500,000,000 | |
Senior Debt, Outstanding Unamortized Debt Costs | 3,800,000 | 4,491,000 | |
Senior Debt, Outstanding Carrying Value | 496,200,000 | 495,509,000 | |
Lazard Group 3.75% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Debt, Initial Principal Amount | $ 400,000,000 | $ 400,000,000 | |
Senior Debt, Maturity Date | Feb. 13, 2025 | ||
Senior Debt, Annual Interest Rate | 3.75% | 3.75% | |
Senior Debt, Outstanding Principal | $ 400,000,000 | 400,000,000 | |
Senior Debt, Outstanding Unamortized Debt Costs | 3,985,000 | 4,342,000 | |
Senior Debt, Outstanding Carrying Value | $ 396,015,000 | $ 395,658,000 |
Senior Debt - Senior Debt (Pare
Senior Debt - Senior Debt (Parenthetical) (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | |
Feb. 28, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 60,219,000 | ||
Lazard Group 6.85% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Debt, Initial Principal Amount | $ 600,000,000 | ||
Redemption of senior debt | $ 450,000,000 | ||
Senior notes interest rate | 6.85% | 6.85% | |
Original Maturity Date | Jun. 15, 2017 | ||
Loss on extinguishment of debt | $ 60,219,000 | ||
Effective interest rates of senior notes | 6.96% | ||
Lazard Group 3.75% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Debt, Initial Principal Amount | $ 400,000,000 | $ 400,000,000 | |
Senior notes interest rate | 3.75% | 3.75% | |
Original Maturity Date | Feb. 13, 2025 | ||
Interest rate, payment terms | Interest on the 2025 Notes is payable semi-annually on March 1 and September 1 of each year beginning September 1, 2015. | ||
Effective interest rates of senior notes | 3.87% | ||
Lazard Group 4.25% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Debt, Initial Principal Amount | $ 500,000,000 | ||
Senior notes interest rate | 4.25% | ||
Original Maturity Date | Nov. 14, 2020 | ||
Effective interest rates of senior notes | 4.43% |
Senior Debt - Additional Inform
Senior Debt - Additional Information (Detail) - USD ($) | Sep. 25, 2015 | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Senior debt | $ 990,488,000 | $ 989,358,000 | |
Unused Lines of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | 164,000,000 | ||
Senior Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior debt | 990,488,000 | 989,358,000 | |
Fair value of senior debt | 1,061,000,000 | 994,000,000 | |
LFB [Member] | Unused Lines of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | 11,000,000 | ||
Amended and Restated Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Senior revolving credit facility | $ 150,000,000 | ||
Duration of senior revolving credit facility, in years | 5 years | ||
Expiration of credit facility | 2020-09 | ||
Outstanding credit facility | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jul. 15, 2009 | Sep. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2013 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2012 |
Other Commitments [Line Items] | |||||||
Guarantees indemnifications | $ 3,809,000 | $ 3,809,000 | |||||
Collateral/counter-guarantees | $ 3,723,000 | $ 3,723,000 | |||||
Edgewater Acquisition [Member] | |||||||
Other Commitments [Line Items] | |||||||
Additional shares of Class A common stock subject to earnout criteria and payable over time | 1,142,857 | ||||||
Initial and Earnout shares issuable on contingent basis | 913,722 | ||||||
Initial and Earnout shares earned | 2,285,714 | 2,285,714 | 1,371,992 | ||||
Contingent shares issued upon satisfaction of performance thresholds | 913,722 | ||||||
Noncash tax benefit recorded in deferred tax assets as result of the delivery of contingent shares | $ 12,653,000 | ||||||
Other Business Acquisitions [Member] | |||||||
Other Commitments [Line Items] | |||||||
Common stock issued and issuable | 170,988 | ||||||
Number of contingent shares earned | 0 | 0 | |||||
Common stock issuable on non-contingent basis | 170,988 | ||||||
Shares issued due to achievement of certain performance thresholds | 27,316 | ||||||
Other Business Acquisitions [Member] | Non-Contingent [Member] | |||||||
Other Commitments [Line Items] | |||||||
Common stock issued and issuable | 206,612 | ||||||
Other Business Acquisitions [Member] | Maximum [Member] | Contingent [Member] | |||||||
Other Commitments [Line Items] | |||||||
Common stock issued and issuable | 606,061 | ||||||
Edgewater [Member] | |||||||
Other Commitments [Line Items] | |||||||
Aggregate fair value of consideration recognized by the company at acquisition date | $ 61,624,000 | ||||||
Common stock issued and issuable | 1,142,857 | ||||||
LFB [Member] | |||||||
Other Commitments [Line Items] | |||||||
Other commitments | $ 0 | $ 0 | |||||
LFNY [Member] | |||||||
Other Commitments [Line Items] | |||||||
Other commitments | $ 0 | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Repurchase Authorized by Board of Directors (Detail) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |
Expiration | Dec. 31, 2017 |
October, 2013 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Share Repurchase Authorization | $ 100,000,000 |
Expiration | Dec. 31, 2015 |
April, 2014 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Share Repurchase Authorization | $ 200,000,000 |
Expiration | Dec. 31, 2015 |
February, 2015 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Share Repurchase Authorization | $ 150,000,000 |
Expiration | Dec. 31, 2016 |
January, 2016 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Share Repurchase Authorization | $ 200,000,000 |
Expiration | Dec. 31, 2017 |
April, 2016 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Share Repurchase Authorization | $ 113,182,000 |
Expiration | Dec. 31, 2017 |
Stockholders' Equity - Schedu70
Stockholders' Equity - Schedule of Share Repurchase Program (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share Repurchase Program [Abstract] | ||
Number of Shares Purchased | 6,656,250 | 3,141,526 |
Average Price Per Share | $ 34.38 | $ 50.76 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Oct. 26, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Schedule Of Stockholders Equity [Line Items] | ||||||
Shares repurchased, value | $ 228,865,000 | $ 159,471,000 | ||||
Share repurchase remaining authorization | $ 190,477,000 | $ 190,477,000 | ||||
Share repurchase authorization expiration date | Dec. 31, 2017 | |||||
Preferred stock, shares authorized | 15,000,000 | 15,000,000 | 15,000,000 | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||
Conversion of Series A preferred stock into Class A common stock | 0 | 0 | ||||
Dividend declared per share of common stock | $ 0.38 | $ 0.35 | $ 2.31 | $ 2 | ||
Subsequent Event [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Dividend declared per share of common stock | $ 0.38 | |||||
Dividend payable date | Nov. 18, 2016 | |||||
Dividend date of record | Nov. 7, 2016 | |||||
Dividend declare date | Oct. 26, 2016 | |||||
Series A Preferred Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Preferred stock, shares outstanding | 7,921 | 7,921 | 7,921 | |||
Series B Preferred Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||
Executive Officers [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Shares repurchased, value | $ 4,900,000 | $ 17,700,000 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (234,356) | $ (200,766) | ||
Other comprehensive loss before reclassifications | (5,173) | (55,516) | ||
Adjustments for items reclassified to earnings, net of tax | $ 1,134 | $ 1,381 | 3,441 | 3,757 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 942 | (17,176) | (1,732) | (51,759) |
Ending balance | (236,088) | (252,525) | (236,088) | (252,525) |
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (97,284) | (46,102) | ||
Other comprehensive loss before reclassifications | (4,524) | (41,376) | ||
Adjustments for items reclassified to earnings, net of tax | ||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (4,524) | (41,376) | ||
Ending balance | (101,808) | (87,478) | (101,808) | (87,478) |
Employee Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (137,073) | (154,665) | ||
Other comprehensive loss before reclassifications | (649) | (14,140) | ||
Adjustments for items reclassified to earnings, net of tax | 3,441 | 3,757 | ||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 2,792 | (10,383) | ||
Ending balance | (134,281) | (165,048) | (134,281) | (165,048) |
Total AOCI [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (234,357) | (200,767) | ||
Other comprehensive loss before reclassifications | (5,173) | (55,516) | ||
Adjustments for items reclassified to earnings, net of tax | 3,441 | 3,757 | ||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (1,732) | (51,759) | ||
Ending balance | (236,089) | (252,526) | (236,089) | (252,526) |
AOCI Attributable to Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1) | (1) | ||
Other comprehensive loss before reclassifications | ||||
Adjustments for items reclassified to earnings, net of tax | ||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | ||||
Ending balance | $ (1) | $ (1) | $ (1) | $ (1) |
Stockholders' Equity - Adjustme
Stockholders' Equity - Adjustments for Items Reclassified Out of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||
Amortization relating to employee benefit plans | $ 1,509 | $ 1,749 | $ 4,612 | $ 5,226 |
Less - related income taxes | 375 | 368 | 1,171 | 1,469 |
Total reclassifications, net of tax | $ 1,134 | $ 1,381 | $ 3,441 | $ 3,757 |
Stockholders' Equity - Net Inco
Stockholders' Equity - Net Income Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Change In Ownership Interest [Line Items] | |||||
Net Income Attributable to Noncontrolling Interests | $ 82 | $ 1,269 | $ 4,989 | $ 9,004 | |
Noncontrolling interests | 57,967 | 57,967 | $ 53,851 | ||
Edgewater [Member] | |||||
Change In Ownership Interest [Line Items] | |||||
Net Income Attributable to Noncontrolling Interests | 81 | 1,268 | 4,988 | 9,002 | |
Noncontrolling interests | 57,249 | 57,249 | 53,132 | ||
Other [Member] | |||||
Change In Ownership Interest [Line Items] | |||||
Net Income Attributable to Noncontrolling Interests | 1 | $ 1 | 1 | $ 2 | |
Noncontrolling interests | $ 718 | $ 718 | $ 719 |
Incentive Plans - Additional In
Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2013 | |
Lazard Fund Interests [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, years | 9 months 18 days | ||
Non-Executive [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of annual compensation received by directors in the form of DSUs | 55.00% | ||
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock conversion basis | One-for-one | ||
Grant date fair value, amortized periods | Generally one-third after two years, and the remaining two-thirds after the third year | ||
Withholding taxes in lieu of share delivery | 1,416,643 | 1,940,996 | |
Delivery of common stock associated with stock awards | 3,110,916 | 5,218,646 | |
Unrecognized compensation expense | $ 174,364 | ||
Unrecognized compensation expense, years | 10 months 24 days | ||
DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual compensation paid in DSUs | 38,771 | 23,961 | |
Units granted under the directors deferred unit plan | 7,407 | 1,761 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Withholding taxes in lieu of share delivery | 132,984 | 94,745 | |
Delivery of common stock associated with stock awards | 669,292 | 417,771 | |
Unrecognized compensation expense | $ 38,512 | ||
Unrecognized compensation expense, years | 1 year | ||
PRSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Withholding taxes in lieu of share delivery | 64,169 | 32,086 | |
Delivery of common stock associated with stock awards | 352,852 | 664,413 | |
Unrecognized compensation expense | $ 17,330 | ||
Unrecognized compensation expense, years | 8 months 12 days | ||
Percentage of target number of shares subject to each PRSU no longer subject to forfeiture due to threshold level of performance being achieved | 25.00% | ||
Descriptions of vesting period associated with PRSUs | PRSUs will vest on a single date three years following the date of the grant | ||
Vesting period of PRSUs granted | 3 years | ||
PSRU's target share distribution for Class A common stock, description | The target number of shares of Class A common stock subject to each PRSU is one; however, based on the achievement of the performance criteria, the number of shares of Class A common stock that may be received in connection with each PRSU generally can range from zero to two times the target number. | ||
PRSUs [Member] | March 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
PRSUs [Member] | March 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 67.00% | ||
2008 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage maximum outstanding shares available to be awarded | 30.00% | ||
2005 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized pertaining to share based compensation arrangements | 25,000,000 |
Incentive Plans - Summary of Im
Incentive Plans - Summary of Impact of Share-Based Incentive Plans on Compensation and Benefits Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based incentive awards: | ||||
Share-based incentive awards | $ 57,819 | $ 52,030 | $ 213,144 | $ 174,823 |
RSUs [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | 39,447 | 38,156 | 134,419 | 129,490 |
PRSUs [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | 11,252 | 10,207 | 38,276 | 24,819 |
Restricted Stock [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | 7,015 | 3,635 | 38,833 | 19,088 |
DSUs [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | $ 105 | $ 32 | $ 1,616 | $ 1,426 |
Incentive Plans - Schedule of I
Incentive Plans - Schedule of Issuance of RSUs and Charges to Retained Earnings (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of RSUs issued | 969,054 | 603,608 |
Charges to retained earnings, net of estimated forfeitures | $ 32,849 | $ 30,340 |
Incentive Plans - Schedule of A
Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Beginning Balance | 9,599,658 | 13,529,116 |
Units, Granted | 6,649,625 | 4,111,619 |
Units, Forfeited | (181,337) | (461,297) |
Units, Vested | (4,527,559) | (7,159,642) |
Units, Ending Balance | 11,540,387 | 10,019,796 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 44.06 | $ 35.19 |
Weighted Average Grant Date Fair Value, Granted | 34.64 | 48.84 |
Weighted Average Grant Date Fair Value, Forfeited | 39.79 | 43.49 |
Weighted Average Grant Date Fair Value, Vested | 39.16 | 30.87 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 40.62 | $ 43.50 |
DSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Beginning Balance | 312,670 | 286,227 |
Units, Granted | 46,178 | 25,722 |
Units, Forfeited | 0 | 0 |
Units, Vested | (84,759) | 0 |
Units, Ending Balance | 274,089 | 311,949 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 35.98 | $ 34.21 |
Weighted Average Grant Date Fair Value, Granted | 34.98 | 55.43 |
Weighted Average Grant Date Fair Value, Forfeited | 0 | 0 |
Weighted Average Grant Date Fair Value, Vested | 35.30 | 0 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 36.02 | $ 35.96 |
Incentive Plans - Schedule of79
Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Parenthetical) (Detail) - shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Dividend participation rights | 969,054 | 603,608 |
Incentive Plans - Summary of Ac
Incentive Plans - Summary of Activity Related to Shares of Restricted Class A Common Stock (Detail) - Restricted Stock [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Beginning Balance | 713,738 | 729,827 |
Units, Granted | 1,795,258 | 576,886 |
Units, Forfeited | (33,943) | (45,500) |
Units, Vested | (802,276) | (512,516) |
Units, Ending Balance | 1,672,777 | 748,697 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 47.12 | $ 38.63 |
Weighted Average Grant Date Fair Value, Granted | 36.74 | 50.88 |
Weighted Average Grant Date Fair Value, Forfeited | 40.49 | 50.24 |
Weighted Average Grant Date Fair Value, Vested | 37.09 | 39.25 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 40.92 | $ 46.94 |
Incentive Plans - Summary of 81
Incentive Plans - Summary of Activity Relating to PRSUs (Detail) - PRSUs [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Beginning Balance | 1,019,038 | 1,347,148 |
Units, Granted | 627,956 | 368,389 |
Units, Vested | (417,021) | (696,499) |
Units, Ending Balance | 1,229,973 | 1,019,038 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 44.49 | $ 37.79 |
Weighted Average Grant Date Fair Value, Granted | 32.91 | 52.85 |
Weighted Average Grant Date Fair Value, Vested | 38.43 | 35.96 |
Weighted Average Grant Date Fair Value, Ending Balance | $ 40.63 | $ 44.49 |
Incentive Plans - Summary of LF
Incentive Plans - Summary of LFI and Other Similar Deferred Compensation Arrangements (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Deferred Compensation Arrangements [Abstract] | ||
Prepaid Compensation Asset, Beginning Balance | $ 75,703 | $ 73,278 |
Prepaid Compensation Asset, Granted | 51,871 | 89,817 |
Prepaid Compensation Asset, Settled | 0 | 0 |
Prepaid Compensation Asset, Forfeited | (1,967) | (3,610) |
Prepaid Compensation Asset, Amortization | (56,784) | (64,136) |
Prepaid Compensation Asset, Increase (Decrease) in fair value of underlying investments | 0 | 0 |
Prepaid Compensation Asset, Adjustment for estimated forfeitures | 0 | 0 |
Prepaid Compensation Asset, Other | (1,232) | (184) |
Prepaid Compensation Asset, Ending Balance | 67,591 | 95,165 |
Compensation Liability, Beginning Balance | 193,574 | 207,306 |
Compensation Liability, Granted | 51,871 | 89,817 |
Compensation Liability, Settled | (75,583) | (94,899) |
Compensation Liability, Forfeited | (3,435) | (6,873) |
Compensation Liability, Amortization | 0 | 0 |
Compensation Liability, Increase (Decrease) in fair value of underlying investments | 4,707 | (9,903) |
Compensation Liability, Adjustment for estimated forfeitures | 3,551 | 5,219 |
Compensation Liability, Other | 585 | (2,030) |
Compensation Liability, Ending Balance | $ 175,270 | $ 188,637 |
Incentive Plans - Summary of 83
Incentive Plans - Summary of Impact of LFI and Other Similar Deferred Compensation Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation [Abstract] | ||||
Amortization, net of forfeitures | $ 18,116 | $ 21,168 | $ 58,867 | $ 66,092 |
Change in the fair value of underlying investments | 6,909 | (12,145) | 4,707 | (9,903) |
Total | $ 25,025 | $ 9,023 | $ 63,574 | $ 56,189 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Credit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Plans [Member] | ||||
Components of Net Periodic Benefit Cost (Credit): | ||||
Service cost | $ 313 | $ 440 | $ 934 | $ 1,153 |
Interest cost | 4,833 | 6,237 | 15,292 | 18,496 |
Expected return on plan assets | (6,648) | (7,146) | (21,047) | (21,236) |
Amortization of: | ||||
Prior service cost | 599 | 595 | 1,793 | 1,789 |
Net actuarial loss (gain) | 957 | 1,154 | 2,958 | 3,437 |
Net periodic benefit cost (credit) | 54 | 1,280 | (70) | 3,639 |
Medical Plan [Member] | ||||
Components of Net Periodic Benefit Cost (Credit): | ||||
Service cost | 3 | 7 | 9 | 20 |
Interest cost | 42 | 45 | 125 | 135 |
Amortization of: | ||||
Net actuarial loss (gain) | (47) | (139) | ||
Net periodic benefit cost (credit) | $ (2) | $ 52 | $ (5) | $ 155 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||||||
Income tax provisions (benefits) | $ 36,374 | $ 170,954 | $ 95,900 | $ (993,560) | ||
Effective income tax rates | 24.40% | 30.00% | 26.60% | 637.00% | ||
U.S. federal statutory income tax rate | 35.00% | |||||
Deferred tax benefit from release of valuation allowance | $ 821,000 | $ 878,000 | ||||
Deferred tax benefit related to tax receivable agreement | $ 378,000 | |||||
LTBP Trust [Member] | ||||||
Income Tax [Line Items] | ||||||
Reduction of deferred tax benefit related to tax receivable agreement | $ 161,000 | $ 161,000 |
Net Income Per Share of Class86
Net Income Per Share of Class A Common Stock - Company's Basic and Diluted Net Income Per Share and Weighted Average Shares Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Lazard Ltd - basic | $ 112,536 | $ 398,521 | $ 259,716 | $ 828,587 |
Net income attributable to Lazard Ltd - diluted | $ 112,536 | $ 398,521 | $ 259,716 | $ 828,587 |
Weighted average number of shares of Class A common stock outstanding | 124,296,449 | 125,852,995 | 125,218,272 | 125,192,436 |
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis | 112,435 | 72,011 | 85,486 | 72,011 |
Weighted average number of shares of Class A common stock outstanding - basic | 124,408,884 | 125,925,006 | 125,303,758 | 125,264,447 |
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation | 7,911,971 | 7,190,413 | 7,214,129 | 7,954,690 |
Weighted average number of shares of Class A common stock outstanding - diluted | 132,320,855 | 133,115,419 | 132,517,887 | 133,219,137 |
Net income attributable to Lazard Ltd per share of Class A common stock: | ||||
Basic | $ 0.90 | $ 3.16 | $ 2.07 | $ 6.61 |
Diluted | $ 0.85 | $ 2.99 | $ 1.96 | $ 6.22 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 26, 2015 | Jul. 31, 2015 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | |||||||||
Asset management fees | $ 254,551 | $ 253,752 | $ 729,679 | $ 784,461 | |||||
Fees receivable | 440,823 | $ 440,823 | $ 423,817 | ||||||
Tax receivable agreement, expiration terms | The term of the Amended and Restated Tax Receivable Agreement will continue until approximately 2033 or, if earlier, until all relevant tax benefits have been utilized or expired. | ||||||||
Provision (benefit) pursuant to tax receivable agreement | (420,792) | $ 961,948 | 547,691 | ||||||
Percentage of beneficial interests purchased in trust | 47.00% | ||||||||
Payments to cancel beneficial interests and extinguishment of payment obligations under the amended and restated tax receivable agreement | $ 42,222 | ||||||||
Payments under tax receivable agreement | $ 10,086 | 1,276 | |||||||
Sponsored Funds [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Asset management fees | 130,546 | 129,524 | 374,250 | 405,145 | |||||
Fees receivable | 54,979 | 54,979 | 42,002 | ||||||
LTBP Trust [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amount of cash savings in income or franchise tax that would be realized as a result of increases in tax basis and certain other tax benefits related to the amended and restated tax receivable agreement | 45.00% | ||||||||
Cash tax saving that may arise from tax benefits attributable to payments under the amended and restated tax receivable agreement | 85.00% | ||||||||
Provision (benefit) pursuant to tax receivable agreement | (420,792) | $ 547,691 | |||||||
Pre-tax gain on extinguishment of obligations under tax receivable agreement | 420,792 | ||||||||
Reduction of deferred tax benefit related to tax receivable agreement | $ 161,000 | 161,000 | |||||||
Cumulative liability relating to obligations under Amended and Restated Tax Receivable Agreement | $ 513,623 | $ 513,623 | $ 523,962 | ||||||
Payments under tax receivable agreement | $ 10,086 |
Regulatory Authorities - Additi
Regulatory Authorities - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 |
LFNY [Member] | ||
Regulatory Requirements [Line Items] | ||
Specified fixed percentage, minimum required capital | 6.67% | |
Minimum net capital requirement as defined under securities exchange act | $ 100,000 | |
Regulatory capital | 73,105,000 | |
Regulatory capital in excess of minimum requirement | $ 69,178,000 | |
Aggregate indebtedness to net capital ratio | 0.81 | |
LFNY [Member] | Maximum [Member] | ||
Regulatory Requirements [Line Items] | ||
Aggregate indebtedness to net capital ratio | 15 | |
U.K. Subsidiaries [Member] | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | $ 131,370,000 | |
Regulatory capital in excess of minimum requirement | 116,180,000 | |
CFLF [Member] | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | 133,377,000 | |
Regulatory capital in excess of minimum requirement | 88,653,000 | |
Combined European Regulated Group [Member] | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | $ 176,187,000 | |
Regulatory capital in excess of minimum requirement | $ 98,533,000 | |
Other U.S. and Non-U.S. Subsidiaries [Member] | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | 110,833,000 | |
Regulatory capital in excess of minimum requirement | $ 84,709,000 |
Segment Information - Segment's
Segment Information - Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net Revenue | $ 608,908 | $ 573,518 | $ 1,641,806 | $ 1,760,359 | |
Operating Expenses | 459,916 | 2,774 | 1,281,201 | 1,916,328 | |
Operating Income (Loss) | 148,992 | 570,744 | 360,605 | (155,969) | |
Total Assets | 4,302,303 | 4,302,303 | $ 4,477,774 | ||
Operating Segments [Member] | Financial Advisory Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 343,488 | 330,832 | 896,467 | 948,735 | |
Operating Expenses | 258,865 | 261,952 | 719,670 | 758,108 | |
Operating Income (Loss) | 84,623 | 68,880 | 176,797 | 190,627 | |
Total Assets | 757,966 | 757,966 | 763,374 | ||
Operating Segments [Member] | Asset Management Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 267,725 | 264,581 | 767,610 | 850,226 | |
Operating Expenses | 185,753 | 179,155 | 543,616 | 554,738 | |
Operating Income (Loss) | 81,972 | 85,426 | 223,994 | 295,488 | |
Total Assets | 620,554 | 620,554 | 640,034 | ||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | (2,305) | (21,895) | (22,271) | (38,602) | |
Operating Expenses | 15,298 | (438,333) | 17,915 | 603,482 | |
Operating Income (Loss) | (17,603) | $ 416,438 | (40,186) | $ (642,084) | |
Total Assets | $ 2,923,783 | $ 2,923,783 | $ 3,074,366 |
Segment Information - Segment90
Segment Information - Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Provision pursuant to tax receivable agreement | $ (420,792) | $ 961,948 | $ 547,691 |
LTBP Trust [Member] | |||
Segment Reporting Information [Line Items] | |||
Provision pursuant to tax receivable agreement | $ (420,792) | $ 547,691 |