Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LZD | |
Entity Registrant Name | LAZARD GROUP LLC | |
Entity Central Index Key | 0001326141 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 333-126751 | |
Entity Tax Identification Number | 51-0278097 | |
Entity Address, Address Line One | 30 Rockefeller Plaza | |
Entity Address City Or Town | New York | |
Entity Address, Postal Zip Code | 10112 | |
Entity Address, State or Province | NY | |
City Area Code | 212 | |
Local Phone Number | 632-6000 | |
Subsidiaries of Lazard Ltd [Member] | ||
Document Information [Line Items] | ||
Managing Membership Interests Outstanding | 2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 928,439 | $ 1,185,040 |
Deposits with banks and short-term investments | 1,289,288 | 1,006,969 |
Cash deposited with clearing organizations and other segregated cash | 40,280 | 38,379 |
Receivables (net of allowance for doubtful accounts of $31,238 and $40,115 at September 30, 2019 and December 31, 2018, respectively): | ||
Fees | 468,393 | 499,068 |
Customers and other | 199,387 | 184,137 |
Lazard Ltd subsidiaries | 32,834 | 21,103 |
Total receivables, net | 700,614 | 704,308 |
Investments | 535,848 | 575,148 |
Property (net of accumulated amortization and depreciation of $351,532 and $339,448 at September 30, 2019 and December 31, 2018, respectively) | 215,935 | 211,713 |
Operating lease right-of-use assets | 558,241 | |
Goodwill and other intangible assets (net of accumulated amortization of $65,493 and $63,591 at September 30, 2019 and December 31, 2018, respectively) | 347,597 | 354,463 |
Deferred tax assets | 65,205 | 55,042 |
Other assets | 313,181 | 258,413 |
Total Assets | 4,994,628 | 4,389,475 |
Liabilities: | ||
Deposits and other customer payables | 1,405,836 | 1,154,208 |
Accrued compensation and benefits | 416,969 | 583,730 |
Operating lease liabilities | 652,113 | |
Senior debt | 1,678,921 | 1,434,260 |
Payable to Lazard Ltd subsidiaries | 60,689 | 63,185 |
Deferred tax liabilities | 1,979 | 5,539 |
Other liabilities | 462,780 | 565,801 |
Total Liabilities | 4,679,287 | 3,806,723 |
Commitments and contingencies | ||
MEMBERS’ EQUITY | ||
Members' equity (net of 23,112,777 and 16,737,000 shares of Lazard Ltd Class A common stock, at a cost of $922,283 and $729,910 at September 30, 2019 and December 31, 2018, respectively) | 491,696 | 758,705 |
Accumulated other comprehensive loss, net of tax | (241,790) | (228,660) |
Total Lazard Group LLC Members' Equity | 249,906 | 530,045 |
Noncontrolling interests | 65,435 | 52,707 |
Total Members’ Equity | 315,341 | 582,752 |
Total Liabilities and Members’ Equity | $ 4,994,628 | $ 4,389,475 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 31,238 | $ 40,115 |
Property, accumulated amortization and depreciation | 351,532 | 339,448 |
Other intangible assets, accumulated amortization | $ 65,493 | $ 63,591 |
Lazard Ltd common stock, shares | 23,112,777 | 16,737,000 |
Lazard Ltd common stock, cost | $ 922,283 | $ 729,910 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUE | ||||
Interest income | $ 3,689 | $ 3,075 | $ 11,262 | $ 8,018 |
Total revenue | 608,894 | 640,233 | 1,902,975 | 2,177,123 |
Interest expense | 20,876 | 15,221 | 60,805 | 44,211 |
Net revenue | 588,018 | 625,012 | 1,842,170 | 2,132,912 |
OPERATING EXPENSES | ||||
Compensation and benefits | 388,616 | 342,294 | 1,129,316 | 1,160,216 |
Occupancy and equipment | 29,696 | 28,673 | 88,598 | 87,786 |
Marketing and business development | 27,264 | 21,803 | 83,908 | 75,575 |
Technology and information services | 34,039 | 36,368 | 104,852 | 102,098 |
Professional services | 14,592 | 13,067 | 46,107 | 40,745 |
Fund administration and outsourced services | 28,424 | 34,748 | 85,847 | 103,159 |
Amortization and other acquisition-related (benefits) costs | 1,081 | (1,109) | 799 | (1,025) |
Other | 11,488 | 14,436 | 33,449 | 50,860 |
Total operating expenses | 535,200 | 490,280 | 1,572,876 | 1,619,414 |
OPERATING INCOME | 52,818 | 134,732 | 269,294 | 513,498 |
Provision for income taxes | 9,433 | 25,393 | 42,697 | 75,453 |
NET INCOME | 43,385 | 109,339 | 226,597 | 438,045 |
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,492 | 1,652 | 8,662 | 5,037 |
NET INCOME ATTRIBUTABLE TO LAZARD GROUP LLC | 41,893 | 107,687 | 217,935 | 433,008 |
Investment Banking and Other Advisory Fees [Member] | ||||
REVENUE | ||||
Revenue | 303,495 | 309,118 | 949,977 | 1,136,013 |
Asset Management Fees [Member] | ||||
REVENUE | ||||
Revenue | 287,140 | 312,790 | 876,159 | 986,777 |
Other [Member] | ||||
REVENUE | ||||
Revenue | $ 14,570 | $ 15,250 | $ 65,577 | $ 46,315 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME | $ 43,385 | $ 109,339 | $ 226,597 | $ 438,045 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Currency translation adjustments | (24,321) | (7,631) | (28,361) | (29,258) |
Employee benefit plans: | ||||
Actuarial gain (net of tax expense (benefit) of $(1,607) and $214 for the three months ended September 30, 2019 and 2018, respectively, and $1,113 and $618 for the nine months ended September 30, 2019 and 2018, respectively) | 9,050 | 863 | 11,911 | 4,149 |
Adjustment for items reclassified to earnings (net of tax expense of $172 and $264 for the three months ended September 30, 2019 and 2018, respectively, and $524 and $948 for the nine months ended September 30, 2019 and 2018, respectively) | 1,074 | 949 | 3,319 | 2,788 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (14,197) | (5,819) | (13,131) | (22,321) |
COMPREHENSIVE INCOME | 29,188 | 103,520 | 213,466 | 415,724 |
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,491 | 1,653 | 8,661 | 5,037 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD GROUP LLC | $ 27,697 | $ 101,867 | $ 204,805 | $ 410,687 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Tax expense (benefit) on actuarial gain, employee benefit plans | $ (1,607) | $ 214 | $ 1,113 | $ 618 |
Tax expense, adjustment for items reclassified to earnings, employee benefit plans | $ 172 | $ 264 | $ 524 | $ 948 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 226,597 | $ 438,045 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property | 24,622 | 25,078 |
Noncash lease expense | 40,181 | |
Amortization of deferred expenses and share-based incentive compensation | 315,726 | 293,027 |
Amortization and other acquisition-related (benefits) costs | 799 | (1,025) |
Deferred tax benefit | (17,488) | (1,462) |
Loss on extinguishment of debt | 6,505 | 6,523 |
(Increase) decrease in operating assets and increase (decrease) in operating liabilities: | ||
Receivables-net | (6,848) | (87,885) |
Investments | 43,559 | (184,542) |
Other assets | (126,207) | (144,895) |
Accrued compensation and benefits and other liabilities | (208,236) | (42,867) |
Net cash provided by operating activities | 299,210 | 299,997 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property | (40,665) | (39,141) |
Disposals of property | 98 | 1,365 |
Net cash used in investing activities | (40,567) | (37,776) |
Proceeds from: | ||
Issuance of senior debt, net of expenses | 492,032 | 490,970 |
Customer deposits, net | 345,394 | 79,960 |
Contributions from noncontrolling interests | 268 | 528 |
Other financing activities | 925 | |
Payments for: | ||
Senior debt | (255,746) | (255,543) |
Distributions to noncontrolling interests | (8,888) | (10,232) |
Purchase of Class A common stock | (430,281) | (306,591) |
Distributions to members | (178,935) | (364,751) |
Settlement of share-based incentive compensation | (96,955) | (109,485) |
Other financing activities | (6,170) | (5,541) |
Net cash used in financing activities | (138,356) | (480,685) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (92,668) | (66,339) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 27,619 | (284,803) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—January 1 | 2,230,388 | 2,441,266 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—September 30 | $ 2,258,007 | $ 2,156,463 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION: | ||||
Cash and cash equivalents | $ 928,439 | $ 1,185,040 | ||
Deposits with banks and short-term investments | 1,289,288 | 1,006,969 | ||
Cash deposited with clearing organizations and other segregated cash | 40,280 | 38,379 | ||
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | $ 2,258,007 | $ 2,230,388 | $ 2,156,463 | $ 2,441,266 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Changes in Members' Equity - USD ($) $ in Thousands | Total | Members' Equity [Member] | Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | Total Lazard Group LLC Members' Equity [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2017 | $ 906,900 | $ 1,043,574 | $ (195,256) | $ 848,318 | $ 58,582 |
Comprehensive income (loss): | |||||
Net income | 438,045 | 433,008 | 433,008 | 5,037 | |
Other comprehensive income (loss) - net of tax | (22,321) | (22,321) | (22,321) | ||
Amortization of share-based incentive compensation | 218,186 | 218,186 | 218,186 | ||
Distributions to members and noncontrolling interests, net | (374,455) | (364,751) | (364,751) | (9,704) | |
Purchase of Class A common stock | (306,591) | (306,591) | (306,591) | ||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense/benefit | (109,657) | (109,657) | (109,657) | ||
Business acquisitions and related equity transactions: | |||||
Class A common stock issuable (including related amortization) | 278 | 278 | 278 | ||
Other | (5,345) | (5,345) | (5,345) | ||
Balance at Sep. 30, 2018 | 745,040 | 908,702 | (217,577) | 691,125 | 53,915 |
Balance at Jun. 30, 2018 | 781,427 | 935,787 | (211,757) | 724,030 | 57,397 |
Comprehensive income (loss): | |||||
Net income | 109,339 | 107,687 | 107,687 | 1,652 | |
Other comprehensive income (loss) - net of tax | (5,819) | (5,820) | (5,820) | 1 | |
Amortization of share-based incentive compensation | 48,356 | 48,356 | 48,356 | ||
Distributions to members and noncontrolling interests, net | (104,294) | (99,159) | (99,159) | (5,135) | |
Purchase of Class A common stock | (82,796) | (82,796) | (82,796) | ||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense/benefit | (439) | (439) | (439) | ||
Business acquisitions and related equity transactions: | |||||
Class A common stock issuable (including related amortization) | 93 | 93 | 93 | ||
Other | (827) | (827) | (827) | ||
Balance at Sep. 30, 2018 | 745,040 | 908,702 | (217,577) | 691,125 | 53,915 |
Balance at Dec. 31, 2018 | 582,752 | 758,705 | (228,660) | 530,045 | 52,707 |
Comprehensive income (loss): | |||||
Net income | 226,597 | 217,935 | 217,935 | 8,662 | |
Other comprehensive income (loss) - net of tax | (13,131) | (13,130) | (13,130) | (1) | |
Amortization of share-based incentive compensation | 226,272 | 226,272 | 226,272 | ||
Distributions to members and noncontrolling interests, net | (187,555) | (178,935) | (178,935) | (8,620) | |
Purchase of Class A common stock | (430,281) | (430,281) | (430,281) | ||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense/benefit | (96,855) | (96,855) | (96,855) | ||
Business acquisitions and related equity transactions: | |||||
Class A common stock issuable (including related amortization) | 158 | 158 | 158 | ||
Consolidation of VIEs | 12,687 | 12,687 | |||
Other | (5,303) | (5,303) | (5,303) | ||
Balance at Sep. 30, 2019 | 315,341 | 491,696 | (241,790) | 249,906 | 65,435 |
Balance at Jun. 30, 2019 | 301,665 | 465,436 | (227,594) | 237,842 | 63,823 |
Comprehensive income (loss): | |||||
Net income | 43,385 | 41,893 | 41,893 | 1,492 | |
Other comprehensive income (loss) - net of tax | (14,197) | (14,196) | (14,196) | (1) | |
Amortization of share-based incentive compensation | 65,189 | 65,189 | 65,189 | ||
Distributions to members and noncontrolling interests, net | (1,102) | (1,102) | |||
Purchase of Class A common stock | (78,569) | (78,569) | (78,569) | ||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense/benefit | (865) | (865) | (865) | ||
Business acquisitions and related equity transactions: | |||||
Class A common stock issuable (including related amortization) | 53 | 53 | 53 | ||
Consolidation of VIEs | 1,223 | 1,223 | |||
Other | (1,441) | (1,441) | (1,441) | ||
Balance at Sep. 30, 2019 | $ 315,341 | $ 491,696 | $ (241,790) | $ 249,906 | $ 65,435 |
Condensed Consolidated Statem_9
Condensed Consolidated Statements of Changes in Members' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Tax expense/benefit related to delivery of Class A Common Stock in connection with share-based incentive compensation | $ (1) | $ 173 | $ (100) | $ 173 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. ORGANIZATION AND BASIS OF PRESENTATION Organization The accompanying condensed consolidated financial statements are those of Lazard Group LLC and its subsidiaries (collectively referred to as “Lazard Group”, “we” or the “Company”). Lazard Group is a Delaware limited liability company, which is governed by an Amended and Restated Operating Agreement dated as of February 4, 2019 (the “Operating Agreement”). Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”), including its indirect investment in 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% Lazard Group’s 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”), capital advisory, restructurings, shareholder advisory, sovereign advisory, capital raising and other strategic advisory, and • Asset Management, which offers a broad range of global investment solutions and investment management services in equity and fixed income strategies, asset allocation 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, certain contingent obligations, and assets and liabilities associated with Lazard Group’s Paris-based subsidiary Lazard Frères Banque SA (“LFB”). Basis of Presentation The accompanying condensed consolidated financial statements of Lazard Group 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 Group’s Annual Report on Form 10-K for the year ended December 31, 2018. The accompanying December 31, 2018 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, 2019 are not indicative of the results to be expected for any future interim or annual period. The condensed consolidated financial statements include 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 Lazard Frères Gestion SAS (“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 (see Note 21). 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 either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings, or (ii) elects the option to measure at fair value. Intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Developments
Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Developments | 2. RECENT ACCOUNTING DEVELOPMENTS Leases —In February 2016, the Financial Accounting Standards Board (the “FASB”) issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability that is initially measured at the present value of the lease payments, in the condensed consolidated 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 straight-line basis and (iii) classify operating lease related cash payments within operating activities and finance lease related principal cash payments within financing activities (with interest included in interest paid) in the condensed consolidated statement of cash flows. The Company adopted the new guidance on January 1, 2019 using the optional transition method, which allows such guidance to be applied initially at the adoption date with a cumulative-effect adjustment and without restating comparative periods. Lazard elected the package of practical expedients, which allows the carry-forward of the prior conclusions on lease definition, classification and initial direct costs related to the existing leases as of the adoption date. Substantially all of the Company’s existing lease arrangements are operating leases. The adoption of the new guidance on January 1, 2019 resulted in a recognition of $501,000 of operating lease right-of-use assets (“ROU assets”) and $581,000 of operating lease liabilities in the Company’s condensed consolidated statements of financial condition. The operating lease liabilities at January 1, 2019 reflect any remaining lease payments discounted using an incremental borrowing rate (on a collateralized basis) based on the remaining lease term (the “Discount”), as an implicit rate was not readily determinable for any of the Company’s existing operating leases. The operating lease ROU assets are lower than the operating lease liabilities primarily because lease incentives reduce the ROU assets (see Note 9). Improvements to Nonemployee Share-Based Payment Accounting— In June 2018, the FASB issued updated guidance to simplify the accounting for nonemployee share-based payment transactions. The new guidance generally requires equity-classified nonemployee share-based payment awards to be measured at the grant date, which is the date at which a grantor and grantee reach a mutual understanding of the key terms and conditions of a share-based payment award. This update generally aligns the accounting for equity-classified share-based payment awards to nonemployees with the measurement date required for employees. The Company adopted the new guidance on January 1, 2019 and its application did not have a material impact on the Company’s financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income— In February 2018, the FASB issued updated guidance on the tax effects of items in “accumulated other comprehensive income (loss), net of tax” (“AOCI”). Specifically, the new guidance will permit, but not require, a reclassification from AOCI to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act of 2017. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate. The Company adopted the new guidance on January 1, 2019 without reclassifying any amounts from AOCI to retained earnings. The application of the guidance did not have a material impact on the Company’s financial statements. 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 new guidance is required to be applied using a modified retrospective approach. The Company is currently evaluating the new guidance. Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment —In January 2017, the FASB issued updated guidance which eliminated Step 2 from the goodwill impairment test. Step 2 is the process of measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires entities to measure a goodwill impairment loss as the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the carrying amount of goodwill. The FASB also eliminated the requirements for entities that have reporting units with zero or negative carrying amounts to perform a qualitative assessment for the goodwill impairment test. Instead, those entities would be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for interim or annual goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the new guidance. Intangibles—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract —In August 2018, the FASB issued updated guidance on the accounting for implementation costs incurred in a cloud computing arrangement. The new guidance requires the capitalization of the implementation costs incurred in a cloud computing arrangement to be aligned with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. Upon adoption, the Company may elect to apply the new guidance on either a prospective or retrospective basis. The Company is currently evaluating the new guidance. Related Party Guidance for Variable Interest Entities —In October 2018, the FASB issued updated guidance that requires consideration of indirect interest held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The amendments are required to be applied retrospectively with a cumulative-effect adjustment. The Company is currently evaluating the new guidance. Fair Value Measurement: Changes to the Disclosure Requirements for Fair Value Measurement —In August 2018, the FASB issued updated guidance which modifies the disclosure requirements on fair value measurement. The updated guidance eliminates or modifies various required disclosures under the current guidance and includes additional requirements. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. With certain exceptions, the guidance is required to be applied retrospectively. The Company is currently evaluating the new guidance. Compensation–Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans —In August 2018, the FASB issued updated guidance which modifies the disclosure requirements regarding defined benefit plans and other postretirement plans. The updated guidance eliminates or clarifies certain currently required disclosures and includes additional requirements. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2020, with early adoption permitted. A retrospective application is required. The Company is currently evaluating the new guidance. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. REVENUE RECOGNITION Investment Banking and Other Advisory —Fees for Financial Advisory services are recorded when: (i) a contract with a client has been identified, (ii) the performance obligations in the contract have been identified, (iii) the fee or other transaction price has been determined, (iv) the fee or other transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation. The expenses that are directly related to such transactions are recorded as incurred and presented within operating expenses when the Company is primarily responsible for fulfilling the promise of the arrangement. Revenues associated with the reimbursement of such expenses are recorded when the Company is contractually entitled to reimbursement and presented within investment banking and other advisory fees. Asset Management Fees —Fees for Asset Management services are primarily comprised of management fees and incentive fees. Management fees are derived from fees for investment management and other services provided to clients. Revenue is recorded in accordance with the same five criteria as Financial Advisory fees, which generally results in management fees being recorded on a daily, monthly or quarterly basis, primarily based on a percentage of client assets managed. Fees vary with the type of assets managed, with higher fees earned on equity assets, alternative investment (such as hedge fund) and private equity funds, and lower fees earned on fixed income and money market products. Expenses that are directly related to the sale or distribution of fund interests are recorded as incurred and presented within operating expenses when the Company is primarily responsible for fulfilling the promise of the arrangement. Revenues associated with the reimbursement of such expenses are recorded when the Company is contractually entitled to reimbursement and presented within asset management fees. In addition, the Company earns performance-based incentive fees on various investment products, including traditional products and alternative investment funds such as hedge funds and private equity funds. For hedge funds, incentive fees are calculated based on a specific percentage of a fund’s net appreciation, in some cases in excess of established benchmarks or thresholds. The Company records incentive fees on traditional products and hedge funds when a significant reversal in the amount of the cumulative revenue to be recognized is not probable, which is typically at the end of the relevant performance measurement period. The incentive fee measurement period is generally an annual period (unless an account is terminated during the year). The incentive fees received at the end of the measurement period are not subject to reversal or payback. Incentive fees on hedge funds generally are subject to loss carryforward provisions in which losses incurred by the hedge funds in any year are applied against certain gains realized by the hedge funds in future periods before any incentive fees can be earned. For private equity funds, incentive fees may be earned in the form of a “carried interest” if profits arising from realized investments exceed a specified threshold. Typically, such carried interest is ultimately calculated on a whole-fund basis and, therefore, clawback of carried interests during the life of the fund can occur. As a result, the Company records incentive fees earned on our private equity funds when a significant reversal in the amount of the cumulative revenue to be recognized is not probable, which is typically at the end of the relevant performance period. Receivables relating to asset management and incentive fees are reported in “fees receivable” on the consolidated statements of financial condition. The Company disaggregates revenue based on its business segment results and believes that the following information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net Revenue: Financial Advisory (a) $ 304,174 $ 309,846 $ 953,863 $ 1,137,781 Asset Management: Management Fees and Other (b) $ 298,752 $ 323,283 $ 910,321 $ 1,012,127 Incentive Fees (c) 1,263 1,957 7,118 19,984 Total Asset Management $ 300,015 $ 325,240 $ 917,439 $ 1,032,111 (a) Financial Advisory is comprised of M&A Advisory, Capital Advisory, Capital Raising, Restructuring, Shareholder Advisory, Sovereign Advisory, and other strategic advisory work for clients. The benefits of these advisory services are generally transferred to the Company’s clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions will relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events. (b) Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of fund interests is a separate performance obligation within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed. (c) Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks. In addition to the above, contracts with clients include trade-based commission income, which is recognized at the point in time of execution and presented within other revenue. Such income may be earned by providing trade facilitation, execution, clearance and settlement, custody, and trade administration services to clients. With regard to the disclosure requirement for remaining performance obligations, the Company elected the practical expedients permitted in the guidance to (i) exclude contracts with a duration of one year or less; and (ii) exclude variable consideration, such as transaction completion and transaction announcement fees, that is allocated entirely to unsatisfied performance obligations. Excluded variable consideration typically relates to contracts with a duration of one year or less, and is generally constrained due to uncertainties. Therefore, when applying the practical expedients, amounts related to remaining performance obligations are not material to the Company’s financial statements. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Receivables | 4. RECEIVABLES The Company’s receivables represent fee receivables, amounts due from customers and other receivables, and amounts due from Lazard Ltd subsidiaries. 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, 2019 and 2018 was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Beginning Balance $ 33,484 $ 34,906 $ 40,115 $ 23,692 Bad debt expense, net of recoveries (546 ) 1,488 (6,097 ) 18,106 Charge-offs, foreign currency translation and other adjustments (1,700 ) (1,922 ) (2,780 ) (7,326 ) Ending Balance $ 31,238 $ 34,472 $ 31,238 $ 34,472 Bad debt expense, net of recoveries is included in “operating expenses — At September 30, 2019 and December 31, 2018, the Company had receivables past due or deemed uncollectible of $37,682 and $42,260, respectively. Of the Company’s fee receivables at September 30, 2019 and December 31, 2018, $77,304 and $90,966, 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 $623,310 and $613,342 at September 30, 2019 and December 31, 2018, respectively, approximates fair value. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Schedule Of Investments [Abstract] | |
Investments | 5. INVESTMENTS The Company’s investments and securities sold, not yet purchased, consist of the following at September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Interest-bearing deposits $ 495 $ 510 Debt 99,535 202,874 Equities 38,114 32,261 Funds: Alternative investments (a) 27,124 17,752 Debt (a) 112,258 90,320 Equity (a) 215,821 175,088 Private equity 42,501 56,343 397,704 339,503 Total investments 535,848 575,148 Less: Interest-bearing deposits 495 510 Investments, at fair value $ 535,353 $ 574,638 Securities sold, not yet purchased, at fair value (included in “other liabilities”) $ 1,555 $ 3,929 (a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $9,330, $72,790 and $168,553, respectively, at September 30, 2019 and $9,741, $60,081 and $132,038, respectively, at December 31, 2018, 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 7 and 14). 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. Debt primarily consists of U.S. Treasury securities with original maturities of greater than three months and less than one year. 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. Such amounts primarily consist of seed investments in funds related to our Asset Management business and amounts related to LFI discussed above. 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 and (ii) a fund targeting significant noncontrolling-stake investments in established private companies. 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, 2019 and 2018, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to “equity securities and trading debt securities” still held as of the reporting date as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net unrealized investment gains (losses) $ (590 ) $ 1,972 $ 26,562 $ (13,183 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. 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 fair value of debt is classified as Level 1 when the 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 is classified as Level 3 for certain investments that are valued based on the potential transaction value as of September 30, 2019. The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets. The fair value of the contingent consideration liability is classified as Level 3 and the 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. Any change in the fair value is recognized in “amortization and other acquisition -related (benefits) costs” in the condensed consolidated statement of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds. The contingent consideration liability is initially recorded at fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. See Note 12. The fair value of derivatives entered into by the Company is classified as Level 2 and is 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 value 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 7. Investments Measured at Net Asset Value (“NAV”) —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) private equity funds are not redeemable in the near term as a result of redemption restrictions. The following tables present, as of September 30, 2019 and December 31, 2018, 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, 2019 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Debt $ 99,535 $ - $ - $ - $ 99,535 Equities 36,390 - 1,724 - 38,114 Funds: Alternative investments 16,930 - - 10,194 27,124 Debt 112,251 - - 7 112,258 Equity 215,782 - - 39 215,821 Private equity - - 2,146 40,355 42,501 Derivatives - 3,278 - - 3,278 Total $ 480,888 $ 3,278 $ 3,870 $ 50,595 $ 538,631 Liabilities: Securities sold, not yet purchased $ 1,555 $ - $ - $ - $ 1,555 Contingent consideration liability - - 207 - 207 Derivatives - 228,116 - - 228,116 Total $ 1,555 $ 228,116 $ 207 $ - $ 229,878 December 31, 2018 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Debt $ 202,874 $ - $ - $ - $ 202,874 Equities 30,639 - 1,622 - 32,261 Funds: Alternative investments 16,863 - - 889 17,752 Debt 90,313 - - 7 90,320 Equity 175,054 - - 34 175,088 Private equity - - - 56,343 56,343 Derivatives - 11,967 - - 11,967 Total $ 515,743 $ 11,967 $ 1,622 $ 57,273 $ 586,605 Liabilities: Securities sold, not yet purchased $ 3,929 $ - $ - $ - $ 3,929 Contingent consideration liability - - 1,309 - 1,309 Derivatives - 188,962 - - 188,962 Total $ 3,929 $ 188,962 $ 1,309 $ - $ 194,200 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, 2019 and 2018: Three Months Ended September 30, 2019 Beginning Balance Net Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions/ Transfers Sales/ Dispositions/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,606 $ 148 $ - $ - $ (30 ) $ 1,724 Private equity funds 2,131 15 - - - 2,146 Total Level 3 Assets $ 3,737 $ 163 $ - $ - $ (30 ) $ 3,870 Liabilities: Contingent consideration liability $ 203 $ 4 $ - $ - $ - $ 207 Total Level 3 Liabilities $ 203 $ 4 $ - $ - $ - $ 207 Nine Months Ended September 30, 2019 Beginning Balance Net Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions/ Transfers (b) Sales/ Dispositions/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,622 $ 134 $ - $ - $ (32 ) $ 1,724 Private equity funds - 15 2,131 - - 2,146 Total Level 3 Assets $ 1,622 $ 149 $ 2,131 $ - $ (32 ) $ 3,870 Liabilities: Contingent consideration liability $ 1,309 $ (1,102 ) $ - $ - $ - $ 207 Total Level 3 Liabilities $ 1,309 $ (1,102 ) $ - $ - $ - $ 207 Three Months Ended September 30, 2018 Beginning Balance Net Unrealized/ Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,629 $ - $ - $ - $ (1 ) $ 1,628 Total Level 3 Assets $ 1,629 $ - $ - $ - $ (1 ) $ 1,628 Liabilities: Contingent consideration liability $ 3,470 $ (1,763 ) $ - $ - $ - $ 1,707 Total Level 3 Liabilities $ 3,470 $ (1,763 ) $ - $ - $ - $ 1,707 Nine Months Ended September 30, 2018 Beginning Balance Net Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,592 $ 61 $ 1 $ - $ (26 ) $ 1,628 Total Level 3 Assets $ 1,592 $ 61 $ 1 $ - $ (26 ) $ 1,628 Liabilities: Contingent consideration liability $ 4,656 $ (2,949 ) $ - $ - $ - $ 1,707 Total Level 3 Liabilities $ 4,656 $ (2,949 ) $ - $ - $ - $ 1,707 (a) Earnings recorded in “other revenue” for investments in equities for the three month and nine month periods ended September 30, 2019 and the three month and nine month periods ended September 30, 2018 include net unrealized gains (losses) of $163, $149, $0 and $61, respectively. Earnings recorded in “amortization and other acquisition-related (benefits) costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2019 and the three month and nine month periods ended September 30, 2018 include unrealized (gains) losses of $4, $(1,102), $(1,763) and $(2,949), respectively. (b) Certain investments that were valued at NAV as of December 31, 2018 were transferred to Level 3 during the nine month period ended September 30, 2019 as these investments are valued based on a potential transaction value that differs from NAV. 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, 2019 and 2018. The following tables present, at September 30, 2019 and December 31, 2018, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2019 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 $ 9,578 $ - NA NA NA NA (a) 30-60 days Funds of funds 24 - NA NA NA NA (b) >90 days Other 592 - NA NA NA NA (c) <30-30 days Debt funds 7 - NA NA NA NA (d) <30 days Equity funds 39 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 40,355 8,264 (f) 100 % 20 % 14 % 66 % NA NA Total $ 50,595 $ 8,264 (a) monthly (99%) and quarterly (1%) (b) quarterly (100%) (c) daily (6%) and monthly (94%) (d) daily (100%) (e) daily (24%), monthly (71%) and annually (5%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $13,400 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. December 31, 2018 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 $ 299 $ - NA NA NA NA (a) 30-60 days Funds of funds 23 - NA NA NA NA (b) >90 days Other 567 - NA NA NA NA (c) <30-30 days Debt funds 7 - NA NA NA NA (d) <30 days Equity funds 34 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 56,343 8,338 (f) 100 % 14 % 34 % 52 % NA NA Total $ 57,273 $ 8,338 (a) monthly (100%) (b) quarterly (100%) (c) daily (6%) and monthly (94%) (d) daily (100%) (e) daily (25%), monthly (70%) and annually (5%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $14,437 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. Investment Capital Funding Commitments —At September 30, 2019, the Company’s maximum unfunded commitments for capital contributions to investment funds primarily arose from commitments to EGCP III, which amounted to $7,602. 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, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 7. 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 are generally 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 table below presents the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value 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 14) on the accompanying condensed consolidated statements of financial condition as of September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Derivative Assets: Forward foreign currency exchange rate contracts $ 3,278 $ 1,543 Total return swaps and other (a) - 10,424 $ 3,278 $ 11,967 Derivative Liabilities: Forward foreign currency exchange rate contracts $ 2,371 $ 939 Total return swaps and other (a) 3,719 1 LFI and other similar deferred compensation arrangements 222,026 188,022 $ 228,116 $ 188,962 (a) For total return swaps, amounts represent the netting of gross derivative assets and liabilities of $518 and $4,237 as of September 30, 2019, respectively, and $10,792 and $369 as of December 31, 2018, 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 $5,580 as of September 30, 2019. 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, 2019 and 2018, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Forward foreign currency exchange rate contracts $ 3,969 $ 1,431 $ 5,065 $ 5,184 LFI and other similar deferred compensation arrangements (1,764 ) (3,647 ) (22,118 ) (1,712 ) Total return swaps and other 1,324 (1,847 ) (8,309 ) 599 Total $ 3,529 $ (4,063 ) $ (25,362 ) $ 4,071 |
Property
Property | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property | 8. PROPERTY At September 30, 2019 and December 31, 2018, property consisted of the following: Estimated Depreciable September 30, December 31, Life in Years 2019 2018 Buildings 33 $ 137,928 $ 145,034 Leasehold improvements 3-20 192,320 187,930 Furniture and equipment 3-10 205,291 204,057 Construction in progress 31,928 14,140 Total 567,467 551,161 Less - Accumulated depreciation and amortization 351,532 339,448 Property $ 215,935 $ 211,713 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 9. LEASES The Company adopted the new lease accounting guidance as of January 1, 2019, which resulted in recognition of ROU assets and lease liabilities related to operating leases on the condensed consolidated statements of financial condition. The Company determines if an arrangement is, or contains, a lease at its inception and reevaluates the arrangement if the terms are modified. Operating lease ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities reflect the obligation to make lease payments arising from the lease. At any given time during the lease term, the operating lease liability represents the present value of the remaining lease payments and the operating lease ROU asset is measured at the amount of the lease liability, adjusted for rent prepayments, unamortized initial direct costs and the remaining balance of lease incentives received. Both the operating lease ROU asset and the operating lease liability are reduced to zero at the end of the lease. The Company leases office space and equipment under non-cancelable lease agreements, which expire on various dates through 2033. Substantially all of these arrangements are operating leases relating to office space. Certain leases have renewal options that can be exercised at the discretion of the Company. The Company only includes renewal options in the lease term when it is reasonably certain to exercise the option. The Company does not record leases with a lease term of 12 months or less on the condensed consolidated statements of financial condition; lease expense for these leases is recognized over the lease term on a straight-line basis. For leases commencing on January 1, 2019 or thereafter that are recognized on the condensed consolidated statements of financial condition, the Company applies its estimated Discount. The Company bases this Discount on the information available at the lease commencement date. The Company determines its Discount with consideration of the Company’s public debt issuances as well as publicly available data for instruments with similar characteristics. For leases commencing on January 1, 2019 or thereafter that relate to office space and equipment, the Company accounts for the lease and non-lease components as a single lease component. In addition to rent payments, operating leases for office space generally contain payments for real estate taxes, insurance co sts, common area maintenance, and utilities that are not fixed. The Company accounts for these costs as variable payments and does not include them in the lease component. There are certain office leases outside of the U.S. that have annual rent increases that are also accounted for as variable payments and are excluded from the lease component . The following table summarizes the components of operating lease expense reflected on the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2019: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 19,904 $ 58,697 Variable lease cost 4,610 13,581 Less - sublease income 1,621 5,083 Total $ 22,893 $ 67,195 The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the nine month period ended September 30, 2019: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 61,935 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 602,715 Weighted average remaining lease term 12 years Weighted average discount rate 3.6 % Maturities of the operating lease liabilities outstanding at September 30, 2019 for each of the years in the period ending December 31, 2024 and thereafter are set forth in the table below. Year Ending December 31, 2019 (October 1 through December 31) $ 22,394 2020 86,668 2021 82,461 2022 66,435 2023 62,065 2024 60,898 Thereafter 426,209 Total lease payments 807,130 Less - Discount 155,017 Operating lease liabilities $ 652,113 In August 2018, the Company entered into a lease agreement for additional office facilities, which are currently under construction. The lease commenced in the third quarter of 2019 when the facilities were delivered to the Company. The Company recognized the related operating lease right-of-use assets and the operating lease liability on the lease commencement date. Prior to the adoption of the new lease accounting guidance, the minimum rental commitments under non-cancelable operating leases at December 31, 2018, net of sublease income, were approximately as follows: Year Ending December 31, 2019 $ 86,664 2020 89,260 2021 83,517 2022 70,611 2023 59,973 Thereafter 488,612 Total minimum rental commitments 878,637 Less - sublease proceeds 26,941 Net rental commitments $ 851,696 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 10. GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets at September 30, 2019 and December 31, 2018 are presented below: September 30, December 31, 2019 2018 Goodwill $ 345,564 $ 350,829 Other intangible assets (net of accumulated amortization) 2,033 3,634 $ 347,597 $ 354,463 At September 30, 2019 and December 31, 2018, goodwill of $281,023 and $286,288, 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, 2019 and 2018 are as follows: Nine Months Ended September 30, 2019 2018 Balance, January 1 $ 350,829 $ 362,760 Foreign currency translation adjustments (5,265 ) (9,479 ) Balance, September 30 $ 345,564 $ 353,281 All changes in the carrying amount of goodwill for the nine month periods ended September 30, 2019 and 2018 are attributable to the Company’s Financial Advisory segment. The gross cost and accumulated amortization of other intangible assets as of September 30, 2019 and December 31, 2018, by major intangible asset category, are as follows: September 30, 2019 December 31, 2018 Gross Cost Accumulated Amortization Net Carrying Amount Gross Cost Accumulated Amortization Net Carrying Amount Success/incentive fees $ 33,040 $ 31,292 $ 1,748 $ 33,040 $ 30,043 $ 2,997 Management fees, customer relationships and non-compete agreements 34,486 34,201 285 34,185 33,548 637 $ 67,526 $ 65,493 $ 2,033 $ 67,225 $ 63,591 $ 3,634 Amortization expense of intangible assets, included in “amortization and other acquisition-related (benefits) costs” in the condensed consolidated statements of operations, for the three month and nine month periods ended September 30, 2019 was $1,077 and $1,901, respectively, and for the three month and nine month periods ended September 30, 2018 was $654 and $1,924, respectively. Estimated future amortization expense is as follows: Year Ending December 31, Amortization Expense 2019 (October 1 through December 31) $ 265 2020 1,558 2021 60 2022 60 2023 60 Thereafter 30 Total amortization expense $ 2,033 |
Senior Debt
Senior Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Senior Debt | 11. SENIOR DEBT Senior debt is comprised of the following as of September 30, 2019 and December 31, 2018: Outstanding as of Initial Annual September 30, 2019 December 31, 2018 Principal Amount Maturity Date Interest Rate(b) Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value Lazard Group 2020 Senior Notes (a) $ 500,000 11/14/20 4.25 % $ - $ - $ - $ 250,000 $ 863 $ 249,137 Lazard Group 2025 Senior Notes 400,000 2/13/25 3.75 % 400,000 2,534 397,466 400,000 2,888 397,112 Lazard Group 2027 Senior Notes 300,000 3/1/27 3.625 % 300,000 2,920 297,080 300,000 3,215 296,785 Lazard Group 2028 Senior Notes (a) 500,000 9/19/28 4.50 % 500,000 8,038 491,962 500,000 8,774 491,226 Lazard Group 2029 Senior Notes (a) 500,000 3/11/29 4.375 % 500,000 7,587 492,413 - - - Total $ 1,700,000 $ 21,079 $ 1,678,921 $ 1,450,000 $ 15,740 $ 1,434,260 (a) During March 2019, Lazard Group completed an offering of $500,000 aggregate principal amount of 4.375% senior notes due 2029 (the “2029 Notes”). Interest on the 2029 Notes is payable semi-annually on March 11 and September 11 of each year, beginning September 11, 2019. Lazard Group used a portion of the net proceeds of the 2029 Notes to redeem or otherwise retire $250,000 aggregate principal amount of the 4.25% senior notes due 2020 (the “2020 Notes”). In March 2019, $167,943 aggregate principal amount was redeemed or otherwise retired, and the remaining $82,057 was redeemed or otherwise retired in April 2019. During September 2018, Lazard Group completed an offering of $500,000 aggregate principal amount of the 2028 Notes. Interest on the 2028 Notes is payable semi-annually on March 19 and September 19 of each year, beginning March 19, 2019. Lazard Group used a portion of the net proceeds of the 2028 Notes to redeem or otherwise retire $250,000 aggregate principal amount of the 2020 Notes. (b) The effective interest rates of Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”), Lazard Group’s 3.625% senior notes due March 1, 2027 (the “2027 Notes”), Lazard Group’s 4.50% senior notes due September 19, 2028 (the “2028 Notes”) and the 2029 Notes are 3.87%, 3.76%, 4.68% and 4.54% respectively. 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, 2019 and December 31, 2018, 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, 2019, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured. As of September 30, 2019, the Company had approximately $167,000 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 $16,000. The Company’s senior debt at September 30, 2019 and December 31, 2018 is carried at historical amounts of $1,678,921 and $1,434,260, respectively. At those dates, the fair value of such senior debt was approximately $1,817,000 and $1,429,000, 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, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES 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, 2019, LFB had $2,422 of such indemnifications and held $2,422 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. Business Acquisitions —For a business acquired in 2016, the remaining consideration consists of (i) 40,585 shares of Class A common stock subject to non-compete provisions and employment conditions, and (ii) up to 210,431 additional shares of Class A common stock that are subject to certain performance thresholds. During the nine month period ended September 30, 2019, none of the contingent shares were earned. 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, 2019, LFB and LFNY had no such underwriting commitments. See Notes 6 and 15 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. |
Members' Equity
Members' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Members' Equity | 13. MEMBERS’ EQUITY Lazard Group Distributions —Distributions in respect of Lazard Group’s common membership interests are allocated to the holders of such interests in accordance with the provisions of the Operating Agreement. Such distributions primarily represent amounts necessary to fund (i) any dividends Lazard Ltd may declare on its Class A common stock and (ii) tax distributions in respect of income taxes that Lazard Ltd’s subsidiaries incur. During the nine month periods ended September 30, 2019 and 2018, Lazard Group distributed $178,935 and $364,751, respectively, to the subsidiaries of Lazard Ltd. Pursuant to Lazard Group’s Operating Agreement, Lazard Group allocates and distributes to its members a substantial portion of its distributable profits in installments as soon as practicable after the end of each fiscal year. Such installment distributions usually begin in February. On October 31, 2019, Lazard Group distributed to its managing members, which are subsidiaries of Lazard Ltd, 17,000,000 shares of Class A common stock that were held by Lazard Group. These shares were ultimately received by Lazard Ltd and cancelled. There was no impact on total members' equity as a result of this distribution. Share Repurchase Program —During the nine month period ended September 30, 2019 and since 2017, 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 2017 $ 200,000 December 31, 2019 April 2018 $ 300,000 December 31, 2020 October 2018 $ 300,000 December February 2019 $ 300,000 December The Company expects that the share repurchase program will continue to 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 2018 Incentive Compensation Plan (the “2018 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 2018 5,797,789 $ 52.88 2019 11,946,943 $ 36.01 During the nine month periods ended September 30, 2019 and 2018, certain of our executive officers received Class A common stock in connection with the vesting or settlement of previously-granted deferred equity incentive awards. The vesting or settlement 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 certain of our executive officers equal in value to all or a portion of the estimated amount of such tax. In addition, during the nine month period ended September 30, 2018, the Company purchased shares of Class A common stock from certain of our executive officers. The aggregate value of all such purchases during the nine month periods ended September 30, 2019 and 2018 was approximately $14,600 and $16,400, respectively. Such shares of Class A common stock are reported at cost. As of September 30, 2019, a total of $165,231 of share repurchase authorization remained available under Lazard Ltd’s share repurchase program, all of which will expire on December 31, 2020. In addition, o n October 30, 2019, the Board of Directors of Lazard authorized the repurchase of up to $ 300,000 of additional shares of Class A common stock, which authorization will expire on December 31, 2021 , bringing the total available share repurchase authorization as of October 30, 2019 to approximately $ . During the nine month period ended September 30, 2019, Lazard Ltd had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market. Accumulated Other Comprehensive Income (Loss), Net of Tax —The tables below reflect the balances of each component of AOCI at September 30, 2019 and 2018 and activity during the three month and nine month periods then ended: Three Months Ended September 30, 2019 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, July 1, 2019 $ (86,869 ) $ (140,725 ) $ (227,594 ) $ - $ (227,594 ) Activity: Other comprehensive income (loss) before reclassifications (24,321 ) 9,050 (15,271 ) (1 ) (15,270 ) Adjustments for items reclassified to earnings, net of tax - 1,074 1,074 - 1,074 Net other comprehensive income (loss) (24,321 ) 10,124 (14,197 ) (1 ) (14,196 ) Balance, September 30, 2019 $ (111,190 ) $ (130,601 ) $ (241,791 ) $ (1 ) $ (241,790 ) Nine Months Ended September 30, 2019 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, January 1, 2019 $ (82,829 ) $ (145,831 ) $ (228,660 ) $ - $ (228,660 ) Activity: Other comprehensive income (loss) before reclassifications (28,361 ) 11,911 (16,450 ) (1 ) (16,449 ) Adjustments for items reclassified to earnings, net of tax - 3,319 3,319 - 3,319 Net other comprehensive income (loss) (28,361 ) 15,230 (13,131 ) (1 ) (13,130 ) Balance, September 30, 2019 $ (111,190 ) $ (130,601 ) $ (241,791 ) $ (1 ) $ (241,790 ) Three Months Ended September 30, 2018 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, July 1, 2018 $ (65,417 ) $ (146,341 ) $ (211,758 ) $ (1 ) $ (211,757 ) Activity: Other comprehensive income (loss) before reclassifications (7,631 ) 863 (6,768 ) 1 (6,769 ) Adjustments for items reclassified to earnings, net of tax - 949 949 - 949 Net other comprehensive income (loss) (7,631 ) 1,812 (5,819 ) 1 (5,820 ) Balance, September 30, 2018 $ (73,048 ) $ (144,529 ) $ (217,577 ) $ - $ (217,577 ) Nine Months Ended September 30, 2018 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, January 1, 2018 $ (43,790 ) $ (151,466 ) $ (195,256 ) $ - $ (195,256 ) Activity: Other comprehensive income (loss) before reclassifications (29,258 ) 4,149 (25,109 ) - (25,109 ) Adjustments for items reclassified to earnings, net of tax - 2,788 2,788 - 2,788 Net other comprehensive income (loss) (29,258 ) 6,937 (22,321 ) - (22,321 ) Balance, September 30, 2018 $ (73,048 ) $ (144,529 ) $ (217,577 ) $ - $ (217,577 ) The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and nine month periods ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Amortization relating to employee benefit plans (a) $ 1,246 $ 1,213 $ 3,843 $ 3,736 Less - related income taxes 172 264 524 948 Total reclassifications, net of tax $ 1,074 $ 949 $ 3,319 $ 2,788 (a) Included in the computation of net periodic benefit cost (see Note 15). Such amounts are included in “operating expenses — Noncontrolling Interests —Noncontrolling interests principally represent (i) interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own, and (ii) consolidated VIE interests held by employees (see Note 21). The tables below summarize net income attributable to noncontrolling interests for the three month and nine month periods ended September 30, 2019 and 2018 and noncontrolling interests as of September 30, 2019 and December 31, 2018 in the Company’s condensed consolidated financial statements: Net Income Attributable to Noncontrolling Interests Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Edgewater $ 1,302 $ 1,651 $ 8,237 $ 5,034 Consolidated VIEs 189 - 423 - Other 1 1 2 3 Total $ 1,492 $ 1,652 $ 8,662 $ 5,037 Noncontrolling Interests as of September 30, December 31, 2019 2018 Edgewater $ 52,311 $ 52,695 Consolidated VIEs 13,110 - Other 14 12 Total $ 65,435 $ 52,707 |
Incentive Plans
Incentive Plans | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Plans | 14. INCENTIVE PLANS Share-Based Incentive Plan Awards A description of Lazard Ltd’s 2018 Plan, 2008 Plan and 2005 Equity Incentive Plan (the “2005 Plan”) and activity with respect thereto during the three month and nine month periods ended September 30, 2019 and 2018 is presented below. Shares Available Under the 2018 Plan, 2008 Plan and 2005 Plan The 2018 Plan became effective on April 24, 2018 and replaced the 2008 Plan, which was terminated on April 24, 2018. The 2018 Plan authorizes the issuance of up to 30,000,000 shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), profits interest participation rights and other share-based awards. The 2008 Plan authorized the issuance of shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs, PRSUs and other share-based awards. Under the 2008 Plan, the maximum number of shares available was based on a formula that limited the aggregate number of shares that could, at any time, be subject to awards that were considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock. The 2008 Plan was terminated on April 24, 2018, and no additional awards have been or will be granted under the 2008 Plan after its termination, although outstanding awards granted under the 2008 Plan before its termination continue to be subject to its terms. 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 share-based awards. The 2005 Plan expired in the second quarter of 2015, although outstanding deferred stock unit (“DSU”) awards granted under the 2005 Plan before its expiration 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, PRSUs and other share-based awards) and “professional services” expense (with respect to DSUs) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Share-based incentive awards: RSUs $ 37,206 $ 38,121 $ 140,597 $ 154,643 PRSUs 14,291 3,107 16,540 31,125 Restricted Stock 7,274 6,950 24,871 30,323 Profits interest participation rights 6,224 - 42,105 - DSUs 97 89 1,079 1,048 Total $ 65,092 $ 48,267 $ 225,192 $ 217,139 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 or performance results in a cumulative adjustment to 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. 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. 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 period ended September 30, 2019, dividend participation rights required the issuance of 725,197 RSUs. Non-executive members of the Board of Directors of Lazard Group, who are the same Non-Executive Directors of Lazard Ltd (“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 51,379 DSUs granted during the nine month period ended September 30, 2019. 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. DSUs include a cash dividend participation right equivalent to dividends paid on Class A common stock. Lazard Ltd’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 period ended September 30, 2019, 16,103 DSUs 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 period ended September 30, 2019: RSUs DSUs Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance, January 1, 2019 11,362,306 $ 43.78 323,546 $ 39.27 Granted (including 725,197 RSUs relating to dividend participation) 5,729,741 $ 38.51 67,482 $ 31.99 Forfeited (673,873 ) $ 43.40 - - Settled (5,857,462 ) $ 37.09 - - Balance, September 30, 2019 10,560,712 $ 44.66 391,028 $ 38.01 In connection with RSUs that settled during the nine month period ended September 30, 2019, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 2,047,117 shares of Class A common stock during such nine month period. Accordingly, 3,810,345 shares of Class A common stock held by the Company were delivered during the nine month period ended September 30, 2019. As of September 30, 2019, estimated unrecognized RSU compensation expense was $147,308, with such expense expected to be recognized over a weighted average period of approximately 0.9 years subsequent to September 30, 2019. 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 period ended September 30, 2019: Restricted Shares Weighted Average Grant Date Fair Value Balance, January 1, 2019 1,541,058 $ 43.16 Granted 1,039,736 $ 35.32 Forfeited (230,787 ) $ 40.59 Settled (1,165,568 ) $ 38.38 Balance, September 30, 2019 1,184,439 $ 41.48 In connection with shares of restricted Class A common stock that settled during the nine month period ended September 30, 2019, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 372,792 shares of Class A common stock during such nine month period. Accordingly, 792,776 shares of Class A common stock held by the Company were delivered during the nine month period ended September 30, 2019. 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, 2019, estimated unrecognized restricted stock expense was $20,080, with such expense to be recognized over a weighted average period of approximately 0.9 years subsequent to September 30, 2019. PRSUs PRSUs are RSUs that 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 Lazard Ltd’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 approximately three years following the date of the grant, provided the applicable service and performance conditions are satisfied. 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 Lazard Ltd 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 periods. 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 period ended September 30, 2019: PRSUs Weighted Average Grant Date Fair Value Balance, January 1, 2019 1,771,795 $ 38.66 Settled (1,171,081 ) $ 32.44 Balance, September 30, 2019 600,714 $ 50.78 In connection with certain PRSUs that settled during the nine month period ended September 30, 2019, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 203,036 shares of Class A common stock during such nine month period. Accordingly, 968,045 shares of Class A common stock held by the Company were delivered during the nine month period ended September 30, 2019. 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, 2019, the total estimated unrecognized compensation expense was $4,465, and the Company expects to amortize such expense over a weighted-average period of approximately 0.7 years subsequent to September 30, 2019. Profits Interest Participation Rights In early 2019, the Company established a new long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of Class A common stock pursuant to the 2018 Plan. Pursuant to the program, in February 2019, the Company granted profits interest participation rights subject to service-based and performance-based vesting criteria and other conditions, which we refer to as performance-based restricted participation units (“PRPUs”), to each of the Company’s NEOs, and profits interest participation rights subject to service-based vesting criteria and other conditions to a limited number of other senior employees, pursuant to profits interest participation right agreements. Profits interest participation rights generally provide for vesting approximately three years following the grant date, so long as applicable conditions have been satisfied. Profits interest participation rights are a class of membership interests in the Company that are intended to qualify as “profits interests” for U.S. federal income tax purposes, and are recorded within members’ equity in the Company’s condensed consolidated statements of financial condition. The profits interest participation rights generally allow the recipient to realize value only to the extent that both (i) the service-based vesting conditions and, if applicable, the performance conditions, are satisfied, and (ii) an amount of economic appreciation in the assets of the Company occurs as necessary to satisfy certain partnership tax rules (referred to as the "Minimum Value Condition") before the fifth anniversary of the grant date, otherwise the profits interest participation rights will be forfeited. Upon satisfaction of such conditions, profits interest participation rights that are in parity with the value of Class A common stock will be exchanged on a one-for-one basis for shares of Class A common stock. If forfeited based solely on failing to meet the Minimum Value Condition, the associated compensation expense would not be reversed. Like outstanding RSUs and similar awards, profits interest participation rights will be subject to continued employment and other conditions and restrictions and will be forfeited if those conditions and restrictions are not fulfilled. More specifically, vesting of profits interest participation rights will be subject to compliance with restrictive covenants including non-compete, non-solicitation of clients, no hire of employees and confidentiality, which are similar to those applicable to PRSUs and RSUs. In addition, profits interest participation rights must satisfy the Minimum Value Condition. PRPUs, like outstanding PRSUs, will be subject to the achievement of incremental pre-established performance conditions and financial metrics and will only result in value to the recipient to the extent the conditions are satisfied. The number of shares of Class A common stock that a recipient will receive upon the exchange of a PRPU award will be calculated by reference to applicable financial metrics. The target number of shares of Class A common stock subject to each PRPU is one. Based on the achievement of performance criteria, as determined by the Compensation Committee, the number of shares of Class A common stock that may be received in connection with each PRPU award will range from zero to two times the target number. Unless applicable performance conditions are satisfied during the three year performance period, and the Minimum Value Condition is satisfied within five years following the grant date, all PRPUs will be forfeited, and the recipients will not be entitled to any such awards. In addition, the performance metrics applicable to each PRPU will be evaluated on an annual basis at the end of each fiscal year during the performance period, and, if Lazard Ltd has achieved a threshold level of performance with respect to the fiscal year, 25% of the target number of PRPUs will no longer be at risk of forfeiture based on the achievement of performance criteria. Profits interest participation rights are allocated income, subject to vesting and settled in cash, in respect of dividends paid on Class A common stock. The following is a summary of activity relating to profits interest participation rights, including PRPUs, during the nine month period ended September 30, 2019: Profits Interest Participation Rights Weighted Average Grant Date Fair Value Balance, January 1, 2019 - - Granted (a) 1,462,702 $ 38.65 Balance, September 30, 2019 1,462,702 $ 38.65 (a) Table includes the target number of PRPUs assuming the achievement of applicable performance conditions at the target level. Compensation expense recognized for profits interest participation rights, including PRPUs, 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, 2019, the total estimated unrecognized compensation expense was $19,831, and the Company expects to amortize such expense over a weighted-average period of approximately 1.2 years subsequent to September 30, 2019. 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 period ended September 30, 2019: Prepaid Compensation Asset Compensation Liability Balance, January 1, 2019 $ 76,362 $ 188,022 Granted 101,552 101,529 Settled - (89,140 ) Forfeited (1,571 ) (3,107 ) Amortization (83,301 ) - Change in fair value related to: Increase in fair value of underlying investments - 22,118 Adjustment for estimated forfeitures - 3,704 Other (990 ) (1,100 ) Balance, September 30, 2019 $ 92,052 $ 222,026 The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.9 years subsequent to September 30, 2019. 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, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Amortization, net of forfeitures $ 23,325 $ 19,145 $ 85,469 $ 71,274 Change in the fair value of underlying investments 1,764 3,647 22,118 1,712 Total $ 25,089 $ 22,792 $ 107,587 $ 72,986 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 15. 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”). The Company also offers defined contribution plans to its employees. The pension 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 for the service cost component, and “operating expenses — 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 pension plans for the three month and nine month periods ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 2018 Components of Net Periodic Benefit Cost (Credit): Service cost $ 223 $ 217 Interest cost 3,716 3,822 Expected return on plan assets (6,697 ) (7,315 ) Amortization of: Prior service cost 26 - Net actuarial loss (gain) 1,220 1,213 Settlement loss 2,280 - Net periodic benefit cost (credit) $ 768 $ (2,063 ) Nine Months Ended September 30, 2019 2018 Components of Net Periodic Benefit Cost (Credit): Service cost $ 635 $ 670 Interest cost 11,476 11,861 Expected return on plan assets (20,596 ) (22,681 ) Amortization of: Prior service cost 82 - Net actuarial loss (gain) 3,761 3,736 Settlement loss 5,802 Net periodic benefit cost (credit) $ 1,160 $ (6,414 ) |
Business Realignment
Business Realignment | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Business Realignment | 16. BUSINESS REALIGNMENT The Company conducted a review of our business, which resulted in a realignment that included employee reductions and the closing of subscale offices and investment strategies, most of which were completed during the third quarter of 2019. Expenses associated with business realignment for the three month and nine month periods ended September 30, 2019 were as follows: Financial Asset Advisory Management Corporate Total Compensation and benefits $ 35,658 $ 13,144 $ 317 $ 49,119 Other - 1,335 1,000 2,335 Total $ 35,658 $ 14,479 $ 1,317 $ 51,454 Activity related to the obligations pursuant to business realignment during the three month period ended September 30, 2019 was as follows: Accrued Compensation Other and Benefits Liabilities Total Balance, July 1, 2019 $ - $ - $ - New charges 49,119 2,335 51,454 Less: - - - Non-cash charges (15,447 ) (1,335 ) (16,782 ) Payments (1,193 ) - (1,193 ) Balance, September 30, 2019 $ 32,479 $ 1,000 $ 33,479 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17 . INCOME TAXES Although a portion of Lazard Group’s income is subject to U.S. federal income taxes, Lazard Group primarily operates in the U.S. as a limited liability company that is treated as a partnership for U.S. federal income tax purposes. As a result, Lazard Group’s income from its U.S. operations is generally not subject to U.S. federal income taxes because such income is attributable to its partners. Lazard Group, through its subsidiaries, is subject to state and local taxes on its income apportioned to various state and local jurisdictions. 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 Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City. The Company recorded income tax provisions of $9,433 and $42,697 for the three month and nine month periods ended September 30, 2019, respectively, and $25,393 and $75,453 for the three month and nine month periods ended September 30, 2018, respectively, representing effective tax rates of 17.9%, 15.9%, 18.8% and 14.7%, respectively. The difference between the U.S. federal statutory rate of 21.0% and the effective tax rates reflected above principally relates to (i) Lazard Group primarily operating as a limited liability company in the U.S., (ii) taxes payable to foreign jurisidictions, (iii) excess net tax benefit for share-based incentive compensation and other discrete items, (iv) change in the valuation allowance affecting the provision for income taxes, (v) U.S. state and local taxes, which are incremental to the U.S. federal statutory tax rate, and (vi) impact of U.S. tax reform, including base erosion and anti-abuse tax. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | 1 8 . RELATED PARTIES Receivables from and Payables to Lazard Ltd Subsidiaries Interest income relating to interest-bearing loans with subsidiaries of Lazard Ltd amounted to $89 for the nine month period ended September 30, 2019 and $230 and $451 for the three month and nine month periods ended September 30, 2018, respectively. Lazard Group’s payables to subsidiaries of Lazard Ltd at September 30, 2019 and December 31, 2018 included interest-bearing loans, including interest thereon, of $54,955 and $60,875, respectively. Interest expense relating to interest-bearing loans with subsidiaries of Lazard Ltd amounted to $872 and $2,688 for the three month and nine month periods ended September 30, 2019, respectively, and $901 and $2,803 for the three month and nine month periods ended September 30, 2018, respectively. 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-based incentive fees for providing such services. Investment advisory fees relating to such services were $141,365 and $438,733 for the three month and nine month periods ended September 30, 2019, respectively, and $158,425 and $510,414 for the three month and nine month periods ended September 30, 2018, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $55,714 and $59,304 remained as receivables at September 30, 2019 and December 31, 2018, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition. Other During the nine month period ended September 30, 2019, the Company recognized approximately $9,000 of investment banking and other advisory fees pertaining to financial advisory services provided to clients of which a member of the Company’s Board of Directors also served as a member of the client’s board of directors or in a management capacity. The engagement terms were negotiated in the ordinary course of business on an arms-length basis. See Note 13 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, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Authorities | 19 . REGULATORY AUTHORITIES LFNY is a U.S. registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. Under the basic method permitted by this rule, the minimum required net capital, as defined, is a specified fixed percentage (6 2 3 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, 2019, the aggregate regulatory net capital of the U.K. Subsidiaries was $148,962, which exceeded the minimum requirement by $132,957. 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. LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by LFG (asset management) and other clients, and asset-liability management. The investment services activities of the Paris group, exercised through LFB and other subsidiaries of CFLF, primarily LFG, also are subject to regulation and supervision by the Autorité des Marchés Financiers. At September 30, 2019, the consolidated regulatory net capital of CFLF was $161,499, which exceeded the minimum requirement set for regulatory capital levels by $106,159. 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, 2019 , the regulatory net capital of the combined European regulated group was $ 211,440 , which exceeded the minimum requirement set for regulatory capital levels by $ 107,119 . 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, 2019, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $153,873, which exceeded the minimum required capital by $125,826. At September 30, 2019, 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, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 2 0 . 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, 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, 2019 and 2018 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Financial Advisory Net Revenue $ 304,174 $ 309,846 $ 953,863 $ 1,137,781 Operating Expenses (a) 303,966 253,602 847,322 900,397 Operating Income $ 208 $ 56,244 $ 106,541 $ 237,384 Asset Management Net Revenue $ 300,015 $ 325,240 $ 917,439 $ 1,032,111 Operating Expenses (a) 225,819 211,564 652,188 670,794 Operating Income $ 74,196 $ 113,676 $ 265,251 $ 361,317 Corporate Net Revenue $ (16,171 ) $ (10,074 ) $ (29,132 ) $ (36,980 ) Operating Expenses (a) 5,415 25,114 73,366 48,223 Operating Loss $ (21,586 ) $ (35,188 ) $ (102,498 ) $ (85,203 ) Total Net Revenue $ 588,018 $ 625,012 $ 1,842,170 $ 2,132,912 Operating Expenses (a) 535,200 490,280 1,572,876 1,619,414 Operating Income $ 52,818 $ 134,732 $ 269,294 $ 513,498 (a) See Note 16 for information regarding business realignment. As Of September 30, 2019 December 31, 2018 Total Assets Financial Advisory $ 1,044,961 $ 829,898 Asset Management 703,744 728,220 Corporate 3,245,923 2,831,357 Total $ 4,994,628 $ 4,389,475 |
Consolidated VIEs
Consolidated VIEs | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | |
Consolidated VIEs | 2 1 . CONSOLIDATED VIEs The Company’s consolidated VIEs as of September 30, 2019 include certain funds that were recently established for the benefit of employees participating in the Company’s existing LFI deferred compensation arrangement. Lazard invests in these funds and is the investment manager and is therefore deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds. The Company’s consolidated VIE assets and liabilities as reflected in the condensed consolidated statements of financial condition consist of the following at September 30, 2019: ASSETS Cash and cash equivalents $ 3,377 Customers and other receivables 519 Investments (a) 89,333 Other assets 769 Total Assets $ 93,998 LIABILITIES Deposits and other customer payables $ 462 Other liabilities 477 Total Liabilities $ 939 (a) Includes $79,791 of LFI held by Lazard Group which is eliminated in the condensed consolidated statements of financial condition. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization The accompanying condensed consolidated financial statements are those of Lazard Group LLC and its subsidiaries (collectively referred to as “Lazard Group”, “we” or the “Company”). Lazard Group is a Delaware limited liability company, which is governed by an Amended and Restated Operating Agreement dated as of February 4, 2019 (the “Operating Agreement”). Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”), including its indirect investment in 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% Lazard Group’s 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”), capital advisory, restructurings, shareholder advisory, sovereign advisory, capital raising and other strategic advisory, and • Asset Management, which offers a broad range of global investment solutions and investment management services in equity and fixed income strategies, asset allocation 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, certain contingent obligations, and assets and liabilities associated with Lazard Group’s Paris-based subsidiary Lazard Frères Banque SA (“LFB”). |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Lazard Group 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 Group’s Annual Report on Form 10-K for the year ended December 31, 2018. The accompanying December 31, 2018 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, 2019 are not indicative of the results to be expected for any future interim or annual period. The condensed consolidated financial statements include 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 Lazard Frères Gestion SAS (“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 (see Note 21). 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 either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings, or (ii) elects the option to measure at fair value. Intercompany transactions and balances have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Developments | Leases —In February 2016, the Financial Accounting Standards Board (the “FASB”) issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability that is initially measured at the present value of the lease payments, in the condensed consolidated 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 straight-line basis and (iii) classify operating lease related cash payments within operating activities and finance lease related principal cash payments within financing activities (with interest included in interest paid) in the condensed consolidated statement of cash flows. The Company adopted the new guidance on January 1, 2019 using the optional transition method, which allows such guidance to be applied initially at the adoption date with a cumulative-effect adjustment and without restating comparative periods. Lazard elected the package of practical expedients, which allows the carry-forward of the prior conclusions on lease definition, classification and initial direct costs related to the existing leases as of the adoption date. Substantially all of the Company’s existing lease arrangements are operating leases. The adoption of the new guidance on January 1, 2019 resulted in a recognition of $501,000 of operating lease right-of-use assets (“ROU assets”) and $581,000 of operating lease liabilities in the Company’s condensed consolidated statements of financial condition. The operating lease liabilities at January 1, 2019 reflect any remaining lease payments discounted using an incremental borrowing rate (on a collateralized basis) based on the remaining lease term (the “Discount”), as an implicit rate was not readily determinable for any of the Company’s existing operating leases. The operating lease ROU assets are lower than the operating lease liabilities primarily because lease incentives reduce the ROU assets (see Note 9). Improvements to Nonemployee Share-Based Payment Accounting— In June 2018, the FASB issued updated guidance to simplify the accounting for nonemployee share-based payment transactions. The new guidance generally requires equity-classified nonemployee share-based payment awards to be measured at the grant date, which is the date at which a grantor and grantee reach a mutual understanding of the key terms and conditions of a share-based payment award. This update generally aligns the accounting for equity-classified share-based payment awards to nonemployees with the measurement date required for employees. The Company adopted the new guidance on January 1, 2019 and its application did not have a material impact on the Company’s financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income— In February 2018, the FASB issued updated guidance on the tax effects of items in “accumulated other comprehensive income (loss), net of tax” (“AOCI”). Specifically, the new guidance will permit, but not require, a reclassification from AOCI to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate under the Tax Cuts and Jobs Act of 2017. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate. The Company adopted the new guidance on January 1, 2019 without reclassifying any amounts from AOCI to retained earnings. The application of the guidance did not have a material impact on the Company’s financial statements. 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 new guidance is required to be applied using a modified retrospective approach. The Company is currently evaluating the new guidance. Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment —In January 2017, the FASB issued updated guidance which eliminated Step 2 from the goodwill impairment test. Step 2 is the process of measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires entities to measure a goodwill impairment loss as the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the carrying amount of goodwill. The FASB also eliminated the requirements for entities that have reporting units with zero or negative carrying amounts to perform a qualitative assessment for the goodwill impairment test. Instead, those entities would be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for interim or annual goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the new guidance. Intangibles—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract —In August 2018, the FASB issued updated guidance on the accounting for implementation costs incurred in a cloud computing arrangement. The new guidance requires the capitalization of the implementation costs incurred in a cloud computing arrangement to be aligned with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. Upon adoption, the Company may elect to apply the new guidance on either a prospective or retrospective basis. The Company is currently evaluating the new guidance. Related Party Guidance for Variable Interest Entities —In October 2018, the FASB issued updated guidance that requires consideration of indirect interest held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The amendments are required to be applied retrospectively with a cumulative-effect adjustment. The Company is currently evaluating the new guidance. Fair Value Measurement: Changes to the Disclosure Requirements for Fair Value Measurement —In August 2018, the FASB issued updated guidance which modifies the disclosure requirements on fair value measurement. The updated guidance eliminates or modifies various required disclosures under the current guidance and includes additional requirements. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. With certain exceptions, the guidance is required to be applied retrospectively. The Company is currently evaluating the new guidance. Compensation–Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit Plans —In August 2018, the FASB issued updated guidance which modifies the disclosure requirements regarding defined benefit plans and other postretirement plans. The updated guidance eliminates or clarifies certain currently required disclosures and includes additional requirements. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2020, with early adoption permitted. A retrospective application is required. The Company is currently evaluating the new guidance. |
Revenue Recognition Policy | Investment Banking and Other Advisory —Fees for Financial Advisory services are recorded when: (i) a contract with a client has been identified, (ii) the performance obligations in the contract have been identified, (iii) the fee or other transaction price has been determined, (iv) the fee or other transaction price has been allocated to each performance obligation in the contract, and (v) the Company has satisfied the applicable performance obligation. The expenses that are directly related to such transactions are recorded as incurred and presented within operating expenses when the Company is primarily responsible for fulfilling the promise of the arrangement. Revenues associated with the reimbursement of such expenses are recorded when the Company is contractually entitled to reimbursement and presented within investment banking and other advisory fees. Asset Management Fees —Fees for Asset Management services are primarily comprised of management fees and incentive fees. Management fees are derived from fees for investment management and other services provided to clients. Revenue is recorded in accordance with the same five criteria as Financial Advisory fees, which generally results in management fees being recorded on a daily, monthly or quarterly basis, primarily based on a percentage of client assets managed. Fees vary with the type of assets managed, with higher fees earned on equity assets, alternative investment (such as hedge fund) and private equity funds, and lower fees earned on fixed income and money market products. Expenses that are directly related to the sale or distribution of fund interests are recorded as incurred and presented within operating expenses when the Company is primarily responsible for fulfilling the promise of the arrangement. Revenues associated with the reimbursement of such expenses are recorded when the Company is contractually entitled to reimbursement and presented within asset management fees. In addition, the Company earns performance-based incentive fees on various investment products, including traditional products and alternative investment funds such as hedge funds and private equity funds. For hedge funds, incentive fees are calculated based on a specific percentage of a fund’s net appreciation, in some cases in excess of established benchmarks or thresholds. The Company records incentive fees on traditional products and hedge funds when a significant reversal in the amount of the cumulative revenue to be recognized is not probable, which is typically at the end of the relevant performance measurement period. The incentive fee measurement period is generally an annual period (unless an account is terminated during the year). The incentive fees received at the end of the measurement period are not subject to reversal or payback. Incentive fees on hedge funds generally are subject to loss carryforward provisions in which losses incurred by the hedge funds in any year are applied against certain gains realized by the hedge funds in future periods before any incentive fees can be earned. For private equity funds, incentive fees may be earned in the form of a “carried interest” if profits arising from realized investments exceed a specified threshold. Typically, such carried interest is ultimately calculated on a whole-fund basis and, therefore, clawback of carried interests during the life of the fund can occur. As a result, the Company records incentive fees earned on our private equity funds when a significant reversal in the amount of the cumulative revenue to be recognized is not probable, which is typically at the end of the relevant performance period. Receivables relating to asset management and incentive fees are reported in “fees receivable” on the consolidated statements of financial condition. |
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 fair value of debt is classified as Level 1 when the 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 is classified as Level 3 for certain investments that are valued based on the potential transaction value as of September 30, 2019. The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets. The fair value of the contingent consideration liability is classified as Level 3 and the 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. Any change in the fair value is recognized in “amortization and other acquisition -related (benefits) costs” in the condensed consolidated statement of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds. The contingent consideration liability is initially recorded at fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. See Note 12. The fair value of derivatives entered into by the Company is classified as Level 2 and is 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 value 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 7. Investments Measured at Net Asset Value (“NAV”) —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) 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 are generally 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. |
Share-Based Incentive Plan Awards | Share-Based Incentive Plan Awards A description of Lazard Ltd’s 2018 Plan, 2008 Plan and 2005 Equity Incentive Plan (the “2005 Plan”) and activity with respect thereto during the three month and nine month periods ended September 30, 2019 and 2018 is presented below. Shares Available Under the 2018 Plan, 2008 Plan and 2005 Plan The 2018 Plan became effective on April 24, 2018 and replaced the 2008 Plan, which was terminated on April 24, 2018. The 2018 Plan authorizes the issuance of up to 30,000,000 shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), profits interest participation rights and other share-based awards. The 2008 Plan authorized the issuance of shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs, PRSUs and other share-based awards. Under the 2008 Plan, the maximum number of shares available was based on a formula that limited the aggregate number of shares that could, at any time, be subject to awards that were considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock. The 2008 Plan was terminated on April 24, 2018, and no additional awards have been or will be granted under the 2008 Plan after its termination, although outstanding awards granted under the 2008 Plan before its termination continue to be subject to its terms. 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 share-based awards. The 2005 Plan expired in the second quarter of 2015, although outstanding deferred stock unit (“DSU”) awards granted under the 2005 Plan before its expiration continue to be subject to its terms. |
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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Based on Business Segment Results | The Company disaggregates revenue based on its business segment results and believes that the following information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net Revenue: Financial Advisory (a) $ 304,174 $ 309,846 $ 953,863 $ 1,137,781 Asset Management: Management Fees and Other (b) $ 298,752 $ 323,283 $ 910,321 $ 1,012,127 Incentive Fees (c) 1,263 1,957 7,118 19,984 Total Asset Management $ 300,015 $ 325,240 $ 917,439 $ 1,032,111 (a) Financial Advisory is comprised of M&A Advisory, Capital Advisory, Capital Raising, Restructuring, Shareholder Advisory, Sovereign Advisory, and other strategic advisory work for clients. The benefits of these advisory services are generally transferred to the Company’s clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions will relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events. (b) Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of fund interests is a separate performance obligation within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed. (c) Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Beginning Balance $ 33,484 $ 34,906 $ 40,115 $ 23,692 Bad debt expense, net of recoveries (546 ) 1,488 (6,097 ) 18,106 Charge-offs, foreign currency translation and other adjustments (1,700 ) (1,922 ) (2,780 ) (7,326 ) Ending Balance $ 31,238 $ 34,472 $ 31,238 $ 34,472 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule Of Investments [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, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Interest-bearing deposits $ 495 $ 510 Debt 99,535 202,874 Equities 38,114 32,261 Funds: Alternative investments (a) 27,124 17,752 Debt (a) 112,258 90,320 Equity (a) 215,821 175,088 Private equity 42,501 56,343 397,704 339,503 Total investments 535,848 575,148 Less: Interest-bearing deposits 495 510 Investments, at fair value $ 535,353 $ 574,638 Securities sold, not yet purchased, at fair value (included in “other liabilities”) $ 1,555 $ 3,929 (a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $9,330, $72,790 and $168,553, respectively, at September 30, 2019 and $9,741, $60,081 and $132,038, respectively, at December 31, 2018, 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 7 and 14). |
Schedule of Equity Securities and Trading Debt Securities Net Unrealized Investment Gains and Losses | During the three month and nine month periods ended September 30, 2019 and 2018, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to “equity securities and trading debt securities” still held as of the reporting date as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net unrealized investment gains (losses) $ (590 ) $ 1,972 $ 26,562 $ (13,183 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and December 31, 2018, 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, 2019 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Debt $ 99,535 $ - $ - $ - $ 99,535 Equities 36,390 - 1,724 - 38,114 Funds: Alternative investments 16,930 - - 10,194 27,124 Debt 112,251 - - 7 112,258 Equity 215,782 - - 39 215,821 Private equity - - 2,146 40,355 42,501 Derivatives - 3,278 - - 3,278 Total $ 480,888 $ 3,278 $ 3,870 $ 50,595 $ 538,631 Liabilities: Securities sold, not yet purchased $ 1,555 $ - $ - $ - $ 1,555 Contingent consideration liability - - 207 - 207 Derivatives - 228,116 - - 228,116 Total $ 1,555 $ 228,116 $ 207 $ - $ 229,878 December 31, 2018 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Debt $ 202,874 $ - $ - $ - $ 202,874 Equities 30,639 - 1,622 - 32,261 Funds: Alternative investments 16,863 - - 889 17,752 Debt 90,313 - - 7 90,320 Equity 175,054 - - 34 175,088 Private equity - - - 56,343 56,343 Derivatives - 11,967 - - 11,967 Total $ 515,743 $ 11,967 $ 1,622 $ 57,273 $ 586,605 Liabilities: Securities sold, not yet purchased $ 3,929 $ - $ - $ - $ 3,929 Contingent consideration liability - - 1,309 - 1,309 Derivatives - 188,962 - - 188,962 Total $ 3,929 $ 188,962 $ 1,309 $ - $ 194,200 |
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, 2019 and 2018: Three Months Ended September 30, 2019 Beginning Balance Net Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions/ Transfers Sales/ Dispositions/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,606 $ 148 $ - $ - $ (30 ) $ 1,724 Private equity funds 2,131 15 - - - 2,146 Total Level 3 Assets $ 3,737 $ 163 $ - $ - $ (30 ) $ 3,870 Liabilities: Contingent consideration liability $ 203 $ 4 $ - $ - $ - $ 207 Total Level 3 Liabilities $ 203 $ 4 $ - $ - $ - $ 207 Nine Months Ended September 30, 2019 Beginning Balance Net Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions/ Transfers (b) Sales/ Dispositions/ Settlements Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,622 $ 134 $ - $ - $ (32 ) $ 1,724 Private equity funds - 15 2,131 - - 2,146 Total Level 3 Assets $ 1,622 $ 149 $ 2,131 $ - $ (32 ) $ 3,870 Liabilities: Contingent consideration liability $ 1,309 $ (1,102 ) $ - $ - $ - $ 207 Total Level 3 Liabilities $ 1,309 $ (1,102 ) $ - $ - $ - $ 207 Three Months Ended September 30, 2018 Beginning Balance Net Unrealized/ Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,629 $ - $ - $ - $ (1 ) $ 1,628 Total Level 3 Assets $ 1,629 $ - $ - $ - $ (1 ) $ 1,628 Liabilities: Contingent consideration liability $ 3,470 $ (1,763 ) $ - $ - $ - $ 1,707 Total Level 3 Liabilities $ 3,470 $ (1,763 ) $ - $ - $ - $ 1,707 Nine Months Ended September 30, 2018 Beginning Balance Net Realized Gains/Losses Included In Earnings (a) Purchases/ Acquisitions Sales/ Dispositions Foreign Currency Translation Adjustments Ending Balance Assets: Investments: Equities $ 1,592 $ 61 $ 1 $ - $ (26 ) $ 1,628 Total Level 3 Assets $ 1,592 $ 61 $ 1 $ - $ (26 ) $ 1,628 Liabilities: Contingent consideration liability $ 4,656 $ (2,949 ) $ - $ - $ - $ 1,707 Total Level 3 Liabilities $ 4,656 $ (2,949 ) $ - $ - $ - $ 1,707 (a) Earnings recorded in “other revenue” for investments in equities for the three month and nine month periods ended September 30, 2019 and the three month and nine month periods ended September 30, 2018 include net unrealized gains (losses) of $163, $149, $0 and $61, respectively. Earnings recorded in “amortization and other acquisition-related (benefits) costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2019 and the three month and nine month periods ended September 30, 2018 include unrealized (gains) losses of $4, $(1,102), $(1,763) and $(2,949), respectively. (b) Certain investments that were valued at NAV as of December 31, 2018 were transferred to Level 3 during the nine month period ended September 30, 2019 as these investments are valued based on a potential transaction value that differs from NAV. |
Fair Value of Certain Investments Based on NAV | The following tables present, at September 30, 2019 and December 31, 2018, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2019 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 $ 9,578 $ - NA NA NA NA (a) 30-60 days Funds of funds 24 - NA NA NA NA (b) >90 days Other 592 - NA NA NA NA (c) <30-30 days Debt funds 7 - NA NA NA NA (d) <30 days Equity funds 39 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 40,355 8,264 (f) 100 % 20 % 14 % 66 % NA NA Total $ 50,595 $ 8,264 (a) monthly (99%) and quarterly (1%) (b) quarterly (100%) (c) daily (6%) and monthly (94%) (d) daily (100%) (e) daily (24%), monthly (71%) and annually (5%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $13,400 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. December 31, 2018 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 $ 299 $ - NA NA NA NA (a) 30-60 days Funds of funds 23 - NA NA NA NA (b) >90 days Other 567 - NA NA NA NA (c) <30-30 days Debt funds 7 - NA NA NA NA (d) <30 days Equity funds 34 - NA NA NA NA (e) <30-90 days Private equity funds: Equity growth 56,343 8,338 (f) 100 % 14 % 34 % 52 % NA NA Total $ 57,273 $ 8,338 (a) monthly (100%) (b) quarterly (100%) (c) daily (6%) and monthly (94%) (d) daily (100%) (e) daily (25%), monthly (70%) and annually (5%) (f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $14,437 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, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition | The table below presents the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value 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 14) on the accompanying condensed consolidated statements of financial condition as of September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Derivative Assets: Forward foreign currency exchange rate contracts $ 3,278 $ 1,543 Total return swaps and other (a) - 10,424 $ 3,278 $ 11,967 Derivative Liabilities: Forward foreign currency exchange rate contracts $ 2,371 $ 939 Total return swaps and other (a) 3,719 1 LFI and other similar deferred compensation arrangements 222,026 188,022 $ 228,116 $ 188,962 (a) For total return swaps, amounts represent the netting of gross derivative assets and liabilities of $518 and $4,237 as of September 30, 2019, respectively, and $10,792 and $369 as of December 31, 2018, 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 $5,580 as of September 30, 2019. |
Net Gains and (Losses) With Respect To Derivative Instruments (Including Derivatives Not Designed 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, 2019 and 2018, were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Forward foreign currency exchange rate contracts $ 3,969 $ 1,431 $ 5,065 $ 5,184 LFI and other similar deferred compensation arrangements (1,764 ) (3,647 ) (22,118 ) (1,712 ) Total return swaps and other 1,324 (1,847 ) (8,309 ) 599 Total $ 3,529 $ (4,063 ) $ (25,362 ) $ 4,071 |
Property (Tables)
Property (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Components of Property | At September 30, 2019 and December 31, 2018, property consisted of the following: Estimated Depreciable September 30, December 31, Life in Years 2019 2018 Buildings 33 $ 137,928 $ 145,034 Leasehold improvements 3-20 192,320 187,930 Furniture and equipment 3-10 205,291 204,057 Construction in progress 31,928 14,140 Total 567,467 551,161 Less - Accumulated depreciation and amortization 351,532 339,448 Property $ 215,935 $ 211,713 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Components of Operating Lease Expense | The following table summarizes the components of operating lease expense reflected on the accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2019: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 19,904 $ 58,697 Variable lease cost 4,610 13,581 Less - sublease income 1,621 5,083 Total $ 22,893 $ 67,195 |
Summary of Supplemental Cash Flow Information And Certain Other Information Related to Operating Leases | The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the nine month period ended September 30, 2019: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 61,935 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 602,715 Weighted average remaining lease term 12 years Weighted average discount rate 3.6 % |
Summary of Maturities of Operating Lease Liabilities Outstanding | Maturities of the operating lease liabilities outstanding at September 30, 2019 for each of the years in the period ending December 31, 2024 and thereafter are set forth in the table below. Year Ending December 31, 2019 (October 1 through December 31) $ 22,394 2020 86,668 2021 82,461 2022 66,435 2023 62,065 2024 60,898 Thereafter 426,209 Total lease payments 807,130 Less - Discount 155,017 Operating lease liabilities $ 652,113 |
Schedule of Prior Adoption For Future Minimum Rental Payment for Operating Leases | Prior to the adoption of the new lease accounting guidance, the minimum rental commitments under non-cancelable operating leases at December 31, 2018, net of sublease income, were approximately as follows: Year Ending December 31, 2019 $ 86,664 2020 89,260 2021 83,517 2022 70,611 2023 59,973 Thereafter 488,612 Total minimum rental commitments 878,637 Less - sublease proceeds 26,941 Net rental commitments $ 851,696 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Goodwill and Other Intangible Assets | The components of goodwill and other intangible assets at September 30, 2019 and December 31, 2018 are presented below: September 30, December 31, 2019 2018 Goodwill $ 345,564 $ 350,829 Other intangible assets (net of accumulated amortization) 2,033 3,634 $ 347,597 $ 354,463 |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2019 and 2018 are as follows: Nine Months Ended September 30, 2019 2018 Balance, January 1 $ 350,829 $ 362,760 Foreign currency translation adjustments (5,265 ) (9,479 ) Balance, September 30 $ 345,564 $ 353,281 |
Gross Cost and Accumulated Amortization of Other Intangible Assets | The gross cost and accumulated amortization of other intangible assets as of September 30, 2019 and December 31, 2018, by major intangible asset category, are as follows: September 30, 2019 December 31, 2018 Gross Cost Accumulated Amortization Net Carrying Amount Gross Cost Accumulated Amortization Net Carrying Amount Success/incentive fees $ 33,040 $ 31,292 $ 1,748 $ 33,040 $ 30,043 $ 2,997 Management fees, customer relationships and non-compete agreements 34,486 34,201 285 34,185 33,548 637 $ 67,526 $ 65,493 $ 2,033 $ 67,225 $ 63,591 $ 3,634 |
Estimated Future Amortization Expense | Estimated future amortization expense is as follows: Year Ending December 31, Amortization Expense 2019 (October 1 through December 31) $ 265 2020 1,558 2021 60 2022 60 2023 60 Thereafter 30 Total amortization expense $ 2,033 |
Senior Debt (Tables)
Senior Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Senior Debt | Senior debt is comprised of the following as of September 30, 2019 and December 31, 2018: Outstanding as of Initial Annual September 30, 2019 December 31, 2018 Principal Amount Maturity Date Interest Rate(b) Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value Lazard Group 2020 Senior Notes (a) $ 500,000 11/14/20 4.25 % $ - $ - $ - $ 250,000 $ 863 $ 249,137 Lazard Group 2025 Senior Notes 400,000 2/13/25 3.75 % 400,000 2,534 397,466 400,000 2,888 397,112 Lazard Group 2027 Senior Notes 300,000 3/1/27 3.625 % 300,000 2,920 297,080 300,000 3,215 296,785 Lazard Group 2028 Senior Notes (a) 500,000 9/19/28 4.50 % 500,000 8,038 491,962 500,000 8,774 491,226 Lazard Group 2029 Senior Notes (a) 500,000 3/11/29 4.375 % 500,000 7,587 492,413 - - - Total $ 1,700,000 $ 21,079 $ 1,678,921 $ 1,450,000 $ 15,740 $ 1,434,260 (a) During March 2019, Lazard Group completed an offering of $500,000 aggregate principal amount of 4.375% senior notes due 2029 (the “2029 Notes”). Interest on the 2029 Notes is payable semi-annually on March 11 and September 11 of each year, beginning September 11, 2019. Lazard Group used a portion of the net proceeds of the 2029 Notes to redeem or otherwise retire $250,000 aggregate principal amount of the 4.25% senior notes due 2020 (the “2020 Notes”). In March 2019, $167,943 aggregate principal amount was redeemed or otherwise retired, and the remaining $82,057 was redeemed or otherwise retired in April 2019. During September 2018, Lazard Group completed an offering of $500,000 aggregate principal amount of the 2028 Notes. Interest on the 2028 Notes is payable semi-annually on March 19 and September 19 of each year, beginning March 19, 2019. Lazard Group used a portion of the net proceeds of the 2028 Notes to redeem or otherwise retire $250,000 aggregate principal amount of the 2020 Notes. (b) The effective interest rates of Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”), Lazard Group’s 3.625% senior notes due March 1, 2027 (the “2027 Notes”), Lazard Group’s 4.50% senior notes due September 19, 2028 (the “2028 Notes”) and the 2029 Notes are 3.87%, 3.76%, 4.68% and 4.54% respectively. |
Members' Equity (Tables)
Members' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchase Authorized by Board of Directors | Share Repurchase Program —During the nine month period ended September 30, 2019 and since 2017, 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 2017 $ 200,000 December 31, 2019 April 2018 $ 300,000 December 31, 2020 October 2018 $ 300,000 December February 2019 $ 300,000 December |
Schedule of Shares Repurchased Under the Share Repurchase Program | The Company expects that the share repurchase program will continue to 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 2018 Incentive Compensation Plan (the “2018 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 2018 5,797,789 $ 52.88 2019 11,946,943 $ 36.01 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax —The tables below reflect the balances of each component of AOCI at September 30, 2019 and 2018 and activity during the three month and nine month periods then ended: Three Months Ended September 30, 2019 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, July 1, 2019 $ (86,869 ) $ (140,725 ) $ (227,594 ) $ - $ (227,594 ) Activity: Other comprehensive income (loss) before reclassifications (24,321 ) 9,050 (15,271 ) (1 ) (15,270 ) Adjustments for items reclassified to earnings, net of tax - 1,074 1,074 - 1,074 Net other comprehensive income (loss) (24,321 ) 10,124 (14,197 ) (1 ) (14,196 ) Balance, September 30, 2019 $ (111,190 ) $ (130,601 ) $ (241,791 ) $ (1 ) $ (241,790 ) Nine Months Ended September 30, 2019 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, January 1, 2019 $ (82,829 ) $ (145,831 ) $ (228,660 ) $ - $ (228,660 ) Activity: Other comprehensive income (loss) before reclassifications (28,361 ) 11,911 (16,450 ) (1 ) (16,449 ) Adjustments for items reclassified to earnings, net of tax - 3,319 3,319 - 3,319 Net other comprehensive income (loss) (28,361 ) 15,230 (13,131 ) (1 ) (13,130 ) Balance, September 30, 2019 $ (111,190 ) $ (130,601 ) $ (241,791 ) $ (1 ) $ (241,790 ) Three Months Ended September 30, 2018 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, July 1, 2018 $ (65,417 ) $ (146,341 ) $ (211,758 ) $ (1 ) $ (211,757 ) Activity: Other comprehensive income (loss) before reclassifications (7,631 ) 863 (6,768 ) 1 (6,769 ) Adjustments for items reclassified to earnings, net of tax - 949 949 - 949 Net other comprehensive income (loss) (7,631 ) 1,812 (5,819 ) 1 (5,820 ) Balance, September 30, 2018 $ (73,048 ) $ (144,529 ) $ (217,577 ) $ - $ (217,577 ) Nine Months Ended September 30, 2018 Currency Translation Adjustments Employee Benefit Plans Total AOCI Amount Attributable to Noncontrolling Interests Total Lazard Group AOCI Balance, January 1, 2018 $ (43,790 ) $ (151,466 ) $ (195,256 ) $ - $ (195,256 ) Activity: Other comprehensive income (loss) before reclassifications (29,258 ) 4,149 (25,109 ) - (25,109 ) Adjustments for items reclassified to earnings, net of tax - 2,788 2,788 - 2,788 Net other comprehensive income (loss) (29,258 ) 6,937 (22,321 ) - (22,321 ) Balance, September 30, 2018 $ (73,048 ) $ (144,529 ) $ (217,577 ) $ - $ (217,577 ) |
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, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Amortization relating to employee benefit plans (a) $ 1,246 $ 1,213 $ 3,843 $ 3,736 Less - related income taxes 172 264 524 948 Total reclassifications, net of tax $ 1,074 $ 949 $ 3,319 $ 2,788 (a) Included in the computation of net periodic benefit cost (see Note 15). Such amounts are included in “operating expenses — |
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, 2019 and 2018 and noncontrolling interests as of September 30, 2019 and December 31, 2018 in the Company’s condensed consolidated financial statements: Net Income Attributable to Noncontrolling Interests Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Edgewater $ 1,302 $ 1,651 $ 8,237 $ 5,034 Consolidated VIEs 189 - 423 - Other 1 1 2 3 Total $ 1,492 $ 1,652 $ 8,662 $ 5,037 Noncontrolling Interests as of September 30, December 31, 2019 2018 Edgewater $ 52,311 $ 52,695 Consolidated VIEs 13,110 - Other 14 12 Total $ 65,435 $ 52,707 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, PRSUs and other share-based awards) and “professional services” expense (with respect to DSUs) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Share-based incentive awards: RSUs $ 37,206 $ 38,121 $ 140,597 $ 154,643 PRSUs 14,291 3,107 16,540 31,125 Restricted Stock 7,274 6,950 24,871 30,323 Profits interest participation rights 6,224 - 42,105 - DSUs 97 89 1,079 1,048 Total $ 65,092 $ 48,267 $ 225,192 $ 217,139 |
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 period ended September 30, 2019: Prepaid Compensation Asset Compensation Liability Balance, January 1, 2019 $ 76,362 $ 188,022 Granted 101,552 101,529 Settled - (89,140 ) Forfeited (1,571 ) (3,107 ) Amortization (83,301 ) - Change in fair value related to: Increase in fair value of underlying investments - 22,118 Adjustment for estimated forfeitures - 3,704 Other (990 ) (1,100 ) Balance, September 30, 2019 $ 92,052 $ 222,026 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, 2019 and 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Amortization, net of forfeitures $ 23,325 $ 19,145 $ 85,469 $ 71,274 Change in the fair value of underlying investments 1,764 3,647 22,118 1,712 Total $ 25,089 $ 22,792 $ 107,587 $ 72,986 |
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 period ended September 30, 2019: RSUs DSUs Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance, January 1, 2019 11,362,306 $ 43.78 323,546 $ 39.27 Granted (including 725,197 RSUs relating to dividend participation) 5,729,741 $ 38.51 67,482 $ 31.99 Forfeited (673,873 ) $ 43.40 - - Settled (5,857,462 ) $ 37.09 - - Balance, September 30, 2019 10,560,712 $ 44.66 391,028 $ 38.01 |
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 period ended September 30, 2019: Restricted Shares Weighted Average Grant Date Fair Value Balance, January 1, 2019 1,541,058 $ 43.16 Granted 1,039,736 $ 35.32 Forfeited (230,787 ) $ 40.59 Settled (1,165,568 ) $ 38.38 Balance, September 30, 2019 1,184,439 $ 41.48 |
PRSUs [Member] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity relating to PRSUs during the nine month period ended September 30, 2019: PRSUs Weighted Average Grant Date Fair Value Balance, January 1, 2019 1,771,795 $ 38.66 Settled (1,171,081 ) $ 32.44 Balance, September 30, 2019 600,714 $ 50.78 |
Profits Interest Participation Rights [Member] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity relating to profits interest participation rights, including PRPUs, during the nine month period ended September 30, 2019: Profits Interest Participation Rights Weighted Average Grant Date Fair Value Balance, January 1, 2019 - - Granted (a) 1,462,702 $ 38.65 Balance, September 30, 2019 1,462,702 $ 38.65 (a) Table includes the target number of PRPUs assuming the achievement of applicable performance conditions at the target level. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 pension plans for the three month and nine month periods ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 2018 Components of Net Periodic Benefit Cost (Credit): Service cost $ 223 $ 217 Interest cost 3,716 3,822 Expected return on plan assets (6,697 ) (7,315 ) Amortization of: Prior service cost 26 - Net actuarial loss (gain) 1,220 1,213 Settlement loss 2,280 - Net periodic benefit cost (credit) $ 768 $ (2,063 ) Nine Months Ended September 30, 2019 2018 Components of Net Periodic Benefit Cost (Credit): Service cost $ 635 $ 670 Interest cost 11,476 11,861 Expected return on plan assets (20,596 ) (22,681 ) Amortization of: Prior service cost 82 - Net actuarial loss (gain) 3,761 3,736 Settlement loss 5,802 Net periodic benefit cost (credit) $ 1,160 $ (6,414 ) |
Business Realignment (Tables)
Business Realignment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Expenses Associated with Business Realignment Activity | Expenses associated with business realignment for the three month and nine month periods ended September 30, 2019 were as follows: Financial Asset Advisory Management Corporate Total Compensation and benefits $ 35,658 $ 13,144 $ 317 $ 49,119 Other - 1,335 1,000 2,335 Total $ 35,658 $ 14,479 $ 1,317 $ 51,454 |
Activity Related to the Obligations Pursuant to Business Realignment | Activity related to the obligations pursuant to business realignment during the three month period ended September 30, 2019 was as follows: Accrued Compensation Other and Benefits Liabilities Total Balance, July 1, 2019 $ - $ - $ - New charges 49,119 2,335 51,454 Less: - - - Non-cash charges (15,447 ) (1,335 ) (16,782 ) Payments (1,193 ) - (1,193 ) Balance, September 30, 2019 $ 32,479 $ 1,000 $ 33,479 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Financial Advisory Net Revenue $ 304,174 $ 309,846 $ 953,863 $ 1,137,781 Operating Expenses (a) 303,966 253,602 847,322 900,397 Operating Income $ 208 $ 56,244 $ 106,541 $ 237,384 Asset Management Net Revenue $ 300,015 $ 325,240 $ 917,439 $ 1,032,111 Operating Expenses (a) 225,819 211,564 652,188 670,794 Operating Income $ 74,196 $ 113,676 $ 265,251 $ 361,317 Corporate Net Revenue $ (16,171 ) $ (10,074 ) $ (29,132 ) $ (36,980 ) Operating Expenses (a) 5,415 25,114 73,366 48,223 Operating Loss $ (21,586 ) $ (35,188 ) $ (102,498 ) $ (85,203 ) Total Net Revenue $ 588,018 $ 625,012 $ 1,842,170 $ 2,132,912 Operating Expenses (a) 535,200 490,280 1,572,876 1,619,414 Operating Income $ 52,818 $ 134,732 $ 269,294 $ 513,498 (a) See Note 16 for information regarding business realignment. As Of September 30, 2019 December 31, 2018 Total Assets Financial Advisory $ 1,044,961 $ 829,898 Asset Management 703,744 728,220 Corporate 3,245,923 2,831,357 Total $ 4,994,628 $ 4,389,475 |
Consolidated VIEs (Tables)
Consolidated VIEs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | |
Summary of Consolidated VIE Assets and Liabilities | The Company’s consolidated VIE assets and liabilities as reflected in the condensed consolidated statements of financial condition consist of the following at September 30, 2019: ASSETS Cash and cash equivalents $ 3,377 Customers and other receivables 519 Investments (a) 89,333 Other assets 769 Total Assets $ 93,998 LIABILITIES Deposits and other customer payables $ 462 Other liabilities 477 Total Liabilities $ 939 (a) Includes $79,791 of LFI held by Lazard Group which is eliminated in the condensed consolidated statements of financial condition. |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Detail) - Segment | Feb. 04, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Organization And Basis Of Presentation [Line Items] | |||
Governing operating agreement, date | Feb. 4, 2019 | ||
Number of business segments | 2 | ||
Lazard Group LLC [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Percentage of common membership interests held | 100.00% | 100.00% |
Recent Accounting Developments
Recent Accounting Developments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |||
Operating lease right-of-use assets | $ 558,241 | $ 558,241 | $ 501,000 |
Operating lease liability | $ 652,113 | $ 652,113 | $ 581,000 |
U.S. federal statutory income tax rate | 21.00% | 21.00% |
Revenue Recognition - Represent
Revenue Recognition - Representation of Performance Obligations Relate to Nature, Amount, Timing and Uncertainty of Revenue and Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financial Advisory Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenue | $ 304,174 | $ 309,846 | $ 953,863 | $ 1,137,781 |
Asset Management Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenue | 300,015 | 325,240 | 917,439 | 1,032,111 |
Asset Management Segment [Member] | Management Fees and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenue | 298,752 | 323,283 | 910,321 | 1,012,127 |
Asset Management Segment [Member] | Incentive Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Revenue | $ 1,263 | $ 1,957 | $ 7,118 | $ 19,984 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance For Doubtful Accounts Receivable Rollforward | ||||
Allowance for doubtful accounts receivables, Beginning balance | $ 33,484 | $ 34,906 | $ 40,115 | $ 23,692 |
Bad debt expense, net of recoveries | (546) | 1,488 | (6,097) | 18,106 |
Charge-offs, foreign currency translation and other adjustments | (1,700) | (1,922) | (2,780) | (7,326) |
Allowance for doubtful accounts receivables, Ending balance | $ 31,238 | $ 34,472 | $ 31,238 | $ 34,472 |
Receivables - Additional Inform
Receivables - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivables past due or deemed uncollectible | $ 37,682,000 | $ 42,260,000 | ||||
Interest-bearing financing fee receivables | 77,304,000 | 90,966,000 | ||||
Allowance for doubtful accounts receivables | 31,238,000 | $ 33,484,000 | 40,115,000 | $ 34,472,000 | $ 34,906,000 | $ 23,692,000 |
Aggregate carrying amount of non-interest bearing receivables | 623,310,000 | 613,342,000 | ||||
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, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Total investments | $ 535,848 | $ 575,148 |
Investments, at fair value | 535,353 | 574,638 |
Securities sold, not yet purchased, at fair value (included in "other liabilities") | 1,555 | 3,929 |
Interest-bearing Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 495 | 510 |
Debt [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 99,535 | 202,874 |
Investments, at fair value | 99,535 | 202,874 |
Equities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 38,114 | 32,261 |
Investments, at fair value | 38,114 | 32,261 |
Alternative Investment Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 27,124 | 17,752 |
Investments, at fair value | 27,124 | 17,752 |
Debt Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 112,258 | 90,320 |
Investments, at fair value | 112,258 | 90,320 |
Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 215,821 | 175,088 |
Investments, at fair value | 215,821 | 175,088 |
Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 42,501 | 56,343 |
Investments, at fair value | 42,501 | 56,343 |
Funds Total [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 397,704 | $ 339,503 |
Investments - Company's Inves_2
Investments - Company's Investments and Securities Sold, Not Yet Purchased (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Investments | $ 535,848 | $ 575,148 |
Alternative Investment Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 27,124 | 17,752 |
Alternative Investment Funds [Member] | Lazard Fund Interests [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 9,330 | 9,741 |
Debt Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 112,258 | 90,320 |
Debt Funds [Member] | Lazard Fund Interests [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 72,790 | 60,081 |
Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | 215,821 | 175,088 |
Equity Funds [Member] | Lazard Fund Interests [Member] | ||
Schedule of Investments [Line Items] | ||
Investments | $ 168,553 | $ 132,038 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum [Member] | Interest-bearing Deposits [Member] | |
Schedule of Investments [Line Items] | |
Deposits maturity period | 3 months |
Minimum [Member] | Debt [Member] | U.S. Treasury Securities [Member] | |
Schedule of Investments [Line Items] | |
US Treasury securities maturity period | 3 months |
Maximum [Member] | Interest-bearing Deposits [Member] | |
Schedule of Investments [Line Items] | |
Deposits maturity period | 1 year |
Maximum [Member] | Debt [Member] | U.S. Treasury Securities [Member] | |
Schedule of Investments [Line Items] | |
US Treasury securities maturity period | 1 year |
Investments - Schedule of Equit
Investments - Schedule of Equity Securities and Trading Debt Securities Net Unrealized Investment Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Realized Or Unrealized Gain Loss On Trading Securities [Abstract] | ||||
Net unrealized investment gains (losses) | $ (590) | $ 1,972 | $ 26,562 | $ (13,183) |
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, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | $ 535,353 | $ 574,638 |
Total Derivative Assets | 3,278 | 11,967 |
Total investments measured at fair value | 538,631 | 586,605 |
Securities sold, not yet purchased | 1,555 | 3,929 |
Contingent consideration liability | 207 | 1,309 |
Total Derivative Liabilities | 228,116 | 188,962 |
Total of Liabilities Measured at Fair Value | 229,878 | 194,200 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total investments measured at fair value | 480,888 | 515,743 |
Securities sold, not yet purchased | 1,555 | 3,929 |
Total of Liabilities Measured at Fair Value | 1,555 | 3,929 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Derivative Assets | 3,278 | 11,967 |
Total investments measured at fair value | 3,278 | 11,967 |
Total Derivative Liabilities | 228,116 | 188,962 |
Total of Liabilities Measured at Fair Value | 228,116 | 188,962 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total investments measured at fair value | 3,870 | 1,622 |
Contingent consideration liability | 207 | 1,309 |
Total of Liabilities Measured at Fair Value | 207 | 1,309 |
NAV [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total investments measured at fair value | 50,595 | 57,273 |
Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 99,535 | 202,874 |
Debt [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 99,535 | 202,874 |
Equities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 38,114 | 32,261 |
Equities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 36,390 | 30,639 |
Equities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 1,724 | 1,622 |
Alternative Investment Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 27,124 | 17,752 |
Alternative Investment Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 16,930 | 16,863 |
Alternative Investment Funds [Member] | NAV [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 10,194 | 889 |
Debt Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 112,258 | 90,320 |
Debt Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 112,251 | 90,313 |
Debt Funds [Member] | NAV [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 7 | 7 |
Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 215,821 | 175,088 |
Equity Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 215,782 | 175,054 |
Equity Funds [Member] | NAV [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 39 | 34 |
Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 42,501 | 56,343 |
Private Equity Funds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | 2,146 | |
Private Equity Funds [Member] | NAV [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments | $ 40,355 | $ 56,343 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Assets: | ||||
Beginning Balance | $ 3,737 | $ 1,629 | $ 1,622 | $ 1,592 |
Net Unrealized/Realized Gains/Losses Included In Earnings | 163 | 0 | 149 | 61 |
Purchases/Acquisitions/Transfers | 0 | 0 | 2,131 | 1 |
Sales/ Dispositions/Settlements | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustments | (30) | (1) | (32) | (26) |
Ending Balance | 3,870 | 1,628 | 3,870 | 1,628 |
Liabilities: | ||||
Beginning Balance | 203 | 3,470 | 1,309 | 4,656 |
Net Unrealized/Realized Gains/Losses Included In Earnings | 4 | (1,763) | (1,102) | (2,949) |
Purchases/Acquisitions/ Transfers | 0 | 0 | 0 | 0 |
Sales/ Dispositions/Settlements | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustments | 0 | 0 | 0 | 0 |
Ending Balance | 207 | 1,707 | 207 | 1,707 |
Contingent Consideration Liability [Member] | ||||
Liabilities: | ||||
Beginning Balance | 203 | 3,470 | 1,309 | 4,656 |
Net Unrealized/Realized Gains/Losses Included In Earnings | 4 | (1,763) | (1,102) | (2,949) |
Purchases/Acquisitions/ Transfers | 0 | 0 | 0 | 0 |
Sales/ Dispositions/Settlements | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustments | 0 | 0 | 0 | 0 |
Ending Balance | 207 | 1,707 | 207 | 1,707 |
Equities [Member] | ||||
Assets: | ||||
Beginning Balance | 1,606 | 1,629 | 1,622 | 1,592 |
Net Unrealized/Realized Gains/Losses Included In Earnings | 148 | 0 | 134 | 61 |
Purchases/Acquisitions/Transfers | 0 | 0 | 0 | 1 |
Sales/ Dispositions/Settlements | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustments | (30) | (1) | (32) | (26) |
Ending Balance | 1,724 | $ 1,628 | 1,724 | $ 1,628 |
Private Equity Funds [Member] | ||||
Assets: | ||||
Beginning Balance | 2,131 | 0 | ||
Net Unrealized/Realized Gains/Losses Included In Earnings | 15 | 15 | ||
Purchases/Acquisitions/Transfers | 0 | 2,131 | ||
Sales/ Dispositions/Settlements | 0 | 0 | ||
Foreign Currency Translation Adjustments | 0 | 0 | ||
Ending Balance | $ 2,146 | $ 2,146 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equities [Member] | ||||
Fair Value of Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Net unrealized gains (losses) | $ 163 | $ 0 | $ 149 | $ 61 |
Contingent Consideration Liability [Member] | ||||
Fair Value of Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Net unrealized (gains) losses | $ 4 | $ (1,763) | $ (1,102) | $ (2,949) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
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 | 8,264,000 | 8,264,000 | $ 8,338,000 | ||
EGCP III [Member] | |||||
Fair Value Option Quantitative Disclosures [Line Items] | |||||
Unfunded Commitments | $ 7,602,000 | $ 7,602,000 | |||
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, 2019 | Dec. 31, 2018 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 50,595 | $ 57,273 |
Unfunded Commitments | 8,264 | 8,338 |
Hedge Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 9,578 | $ 299 |
Hedge Funds [Member] | Monthly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 99.00% | 100.00% |
Hedge Funds [Member] | Quarterly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 1.00% | |
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 | $ 24 | $ 23 |
Investments Redeemable, Redemption Notice Period | 90 days | 90 days |
Funds of Funds [Member] | Quarterly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 100.00% | 100.00% |
Other [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 592 | $ 567 |
Other [Member] | Daily [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 6.00% | 6.00% |
Other [Member] | Monthly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 94.00% | 94.00% |
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 | 30 days | 30 days |
Debt Funds [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 7 | $ 7 |
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 | $ 39 | $ 34 |
Equity Funds [Member] | Daily [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 24.00% | 25.00% |
Equity Funds [Member] | Monthly [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 71.00% | 70.00% |
Equity Funds [Member] | Annually [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments Redeemable, Percent | 5.00% | 5.00% |
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 | $ 40,355 | $ 56,343 |
Unfunded Commitments | $ 8,264 | $ 8,338 |
% of Fair Value Not Redeemable | 100.00% | 100.00% |
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years | 20.00% | 14.00% |
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years | 14.00% | 34.00% |
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter | 66.00% | 52.00% |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Certain Investments Based on NAV (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 8,264 | $ 8,338 |
Private Equity Funds [Member] | Consolidated But Not Owned [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 13,400 | $ 14,437 |
Derivatives - Fair Values of De
Derivatives - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 3,278 | $ 11,967 |
Derivative Liabilities | 228,116 | 188,962 |
Forward Foreign Currency Exchange Rate Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3,278 | 1,543 |
Derivative Liabilities | 2,371 | 939 |
Total Return Swaps and Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 10,424 | |
Derivative Liabilities | 3,719 | 1 |
LFI and Other Similar Deferred Compensation Arrangements [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 222,026 | $ 188,022 |
Derivatives - Fair Values of _2
Derivatives - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Parenthetical) (Detail) - Total Return Swaps [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Gross derivative assets | $ 518 | $ 10,792 |
Gross derivative liability | 4,237 | $ 369 |
Cash collateral pledged for total return swaps | $ 5,580 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives instruments | $ 3,529 | $ (4,063) | $ (25,362) | $ 4,071 |
Forward Foreign Currency Exchange Rate Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives not designated as hedging instruments | 3,969 | 1,431 | 5,065 | 5,184 |
LFI and Other Similar Deferred Compensation Arrangements [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives not designated as hedging instruments | (1,764) | (3,647) | (22,118) | (1,712) |
Total Return Swaps and Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives not designated as hedging instruments | $ 1,324 | $ (1,847) | $ (8,309) | $ 599 |
Property - Components of Proper
Property - Components of Property (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 567,467 | $ 551,161 |
Less - Accumulated depreciation and amortization | 351,532 | 339,448 |
Property | 215,935 | 211,713 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 137,928 | 145,034 |
Property, plant and equipment, useful life | 33 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 192,320 | 187,930 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 20 years | |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 205,291 | 204,057 |
Furniture and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Furniture and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 31,928 | $ 14,140 |
Leases - Summary of Components
Leases - Summary of Components of Operating Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 19,904 | $ 58,697 |
Variable lease cost | 4,610 | 13,581 |
Less - sublease income | 1,621 | 5,083 |
Total | $ 22,893 | $ 67,195 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information And Certain Other Information Related to Operating Leases (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 61,935 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 602,715 |
Weighted average remaining lease term | 12 years |
Weighted average discount rate | 3.60% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities Outstanding (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (October 1 through December 31) | $ 22,394 | |
2020 | 86,668 | |
2021 | 82,461 | |
2022 | 66,435 | |
2023 | 62,065 | |
2024 | 60,898 | |
Thereafter | 426,209 | |
Total lease payments | 807,130 | |
Less - Discount | 155,017 | |
Operating lease liabilities | $ 652,113 | $ 581,000 |
Leases - Schedule of Prior Adop
Leases - Schedule of Prior Adoption For Future Minimum Rental Payment for Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Minimum Rental Commitments Operating - 2019 | $ 86,664 |
Minimum Rental Commitments Operating - 2020 | 89,260 |
Minimum Rental Commitments Operating - 2021 | 83,517 |
Minimum Rental Commitments Operating - 2022 | 70,611 |
Minimum Rental Commitments Operating - 2023 | 59,973 |
Minimum Rental Commitments Operating - Thereafter | 488,612 |
Total minimum rental commitments | 878,637 |
Less - sublease proceeds | 26,941 |
Net rental commitments | $ 851,696 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Components of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 345,564 | $ 350,829 | $ 353,281 | $ 362,760 |
Other intangible assets (net of accumulated amortization) | 2,033 | 3,634 | ||
Goodwill and other intangible assets, Total | $ 347,597 | $ 354,463 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 345,564 | $ 353,281 | $ 345,564 | $ 353,281 | $ 350,829 | $ 362,760 |
Amortization of intangible assets | 1,077 | $ 654 | 1,901 | $ 1,924 | ||
Financial Advisory Segment [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | 281,023 | 281,023 | 286,288 | |||
Asset Management Segment [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 64,541 | $ 64,541 | $ 64,541 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning Balance | $ 350,829 | $ 362,760 |
Foreign currency translation adjustments | (5,265) | (9,479) |
Ending Balance | $ 345,564 | $ 353,281 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Gross Cost and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Gross Cost | $ 67,526 | $ 67,225 |
Other intangible assets, Accumulated Amortization | 65,493 | 63,591 |
Other intangible assets, Net Carrying Amount | 2,033 | 3,634 |
Success/Incentive Fees [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Gross Cost | 33,040 | 33,040 |
Other intangible assets, Accumulated Amortization | 31,292 | 30,043 |
Other intangible assets, Net Carrying Amount | 1,748 | 2,997 |
Management Fees, Customer Relationships and Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Gross Cost | 34,486 | 34,185 |
Other intangible assets, Accumulated Amortization | 34,201 | 33,548 |
Other intangible assets, Net Carrying Amount | $ 285 | $ 637 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2019 (October 1 through December 31) | $ 265 |
2020 | 1,558 |
2021 | 60 |
2022 | 60 |
2023 | 60 |
Thereafter | 30 |
Total amortization expense | $ 2,033 |
Senior Debt - Senior Debt (Deta
Senior Debt - Senior Debt (Detail) - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Senior Debt, Outstanding Principal | $ 1,700,000,000 | $ 1,450,000,000 | ||
Senior Debt, Outstanding Unamortized Debt Costs | 21,079,000 | 15,740,000 | ||
Senior Debt, Outstanding Carrying Value | 1,678,921,000 | 1,434,260,000 | ||
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 | 250,000,000 | |||
Senior Debt, Outstanding Unamortized Debt Costs | 863,000 | |||
Senior Debt, Outstanding Carrying Value | 249,137,000 | |||
Lazard Group 3.75% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Debt, Initial Principal Amount | $ 400,000,000 | |||
Senior Debt, Maturity Date | Feb. 13, 2025 | |||
Senior Debt, Annual Interest Rate | 3.75% | |||
Senior Debt, Outstanding Principal | $ 400,000,000 | 400,000,000 | ||
Senior Debt, Outstanding Unamortized Debt Costs | 2,534,000 | 2,888,000 | ||
Senior Debt, Outstanding Carrying Value | 397,466,000 | 397,112,000 | ||
Lazard Group 3.625% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Debt, Initial Principal Amount | $ 300,000,000 | |||
Senior Debt, Maturity Date | Mar. 1, 2027 | |||
Senior Debt, Annual Interest Rate | 3.625% | |||
Senior Debt, Outstanding Principal | $ 300,000,000 | 300,000,000 | ||
Senior Debt, Outstanding Unamortized Debt Costs | 2,920,000 | 3,215,000 | ||
Senior Debt, Outstanding Carrying Value | 297,080,000 | 296,785,000 | ||
Lazard Group 4.50% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Debt, Initial Principal Amount | $ 500,000,000 | $ 500,000,000 | ||
Senior Debt, Maturity Date | Sep. 19, 2028 | |||
Senior Debt, Annual Interest Rate | 4.50% | |||
Senior Debt, Outstanding Principal | $ 500,000,000 | 500,000,000 | ||
Senior Debt, Outstanding Unamortized Debt Costs | 8,038,000 | 8,774,000 | ||
Senior Debt, Outstanding Carrying Value | 491,962,000 | $ 491,226,000 | ||
Lazard Group 4.375% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Debt, Initial Principal Amount | $ 500,000,000 | $ 500,000,000 | ||
Senior Debt, Maturity Date | Mar. 11, 2029 | |||
Senior Debt, Annual Interest Rate | 4.375% | 4.375% | ||
Senior Debt, Outstanding Principal | $ 500,000,000 | |||
Senior Debt, Outstanding Unamortized Debt Costs | 7,587,000 | |||
Senior Debt, Outstanding Carrying Value | $ 492,413,000 |
Senior Debt - Senior Debt (Pare
Senior Debt - Senior Debt (Parenthetical) (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Sep. 30, 2019 | |
Lazard Group 4.375% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Debt, Initial Principal Amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Interest rate, payment terms | Interest on the 2029 Notes is payable semi-annually on March 11 and September 11 of each year, beginning September 11, 2019 | ||||
Senior notes interest rate | 4.375% | 4.375% | 4.375% | ||
Original Maturity Date | Mar. 11, 2029 | ||||
Effective interest rates of senior notes | 4.54% | ||||
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% | ||||
Redemption of senior debt aggregate principal amount | $ 82,057,000 | $ 167,943,000 | $ 250,000,000 | $ 250,000,000 | |
Original Maturity Date | Nov. 14, 2020 | ||||
Lazard Group 4.50% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Debt, Initial Principal Amount | $ 500,000,000 | $ 500,000,000 | |||
Interest rate, payment terms | Interest on the 2028 Notes is payable semi-annually on March 19 and September 19 of each year, beginning March 19, 2019 | ||||
Senior notes interest rate | 4.50% | ||||
Original Maturity Date | Sep. 19, 2028 | ||||
Effective interest rates of senior notes | 4.68% | ||||
Lazard Group 3.75% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Debt, Initial Principal Amount | $ 400,000,000 | ||||
Senior notes interest rate | 3.75% | ||||
Original Maturity Date | Feb. 13, 2025 | ||||
Effective interest rates of senior notes | 3.87% | ||||
Lazard Group 3.625% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Debt, Initial Principal Amount | $ 300,000,000 | ||||
Senior notes interest rate | 3.625% | ||||
Original Maturity Date | Mar. 1, 2027 | ||||
Effective interest rates of senior notes | 3.76% |
Senior Debt - Additional Inform
Senior Debt - Additional Information (Detail) - USD ($) | Sep. 25, 2015 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Senior debt | $ 1,678,921,000 | $ 1,434,260,000 | |
Unused Lines of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | 167,000,000 | ||
Senior Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior debt | 1,678,921,000 | 1,434,260,000 | |
Fair value of senior debt | 1,817,000,000 | 1,429,000,000 | |
LFB [Member] | Unused Lines of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | 16,000,000 | ||
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 ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2016 | |
Business Acquisitions [Member] | ||
Other Commitments [Line Items] | ||
Number of contingent additional shares earned including dividend equivalent amount | 0 | |
Business Acquisitions [Member] | Class A Common Stock [Member] | ||
Other Commitments [Line Items] | ||
Common stock issued and issuable | 40,585 | |
Business Acquisitions [Member] | Class A Common Stock [Member] | Maximum [Member] | ||
Other Commitments [Line Items] | ||
Contingent shares issuable upon satisfaction of performance thresholds | 210,431 | |
LFB [Member] | ||
Other Commitments [Line Items] | ||
Guarantees indemnifications | $ 2,422,000 | |
Collateral/counter-guarantees | 2,422,000 | |
Other commitments | 0 | |
LFNY [Member] | ||
Other Commitments [Line Items] | ||
Other commitments | $ 0 |
Members' Equity - Additional In
Members' Equity - Additional Information (Detail) - USD ($) | Oct. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 31, 2019 |
Schedule Of Stockholders Equity [Line Items] | ||||||
Aggregate value of all shares repurchased | $ 78,569,000 | $ 82,796,000 | $ 430,281,000 | $ 306,591,000 | ||
Share repurchase remaining authorization | $ 165,231,000 | $ 165,231,000 | ||||
April and October, 2018 and February, 2019 [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Share repurchase authorization expiration date | Dec. 31, 2020 | |||||
Subsequent Event [Member] | 30 October, 2019 [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Share repurchase remaining authorization | $ 437,000,000 | |||||
Share repurchase authorization expiration date | Dec. 31, 2021 | |||||
Share repurchase authorization | $ 300,000,000 | |||||
Lazard Ltd Subsidiaries [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Distribution to members | $ 178,935,000 | 364,751,000 | ||||
Lazard Ltd Subsidiaries [Member] | Subsequent Event [Member] | Class A Common Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Shares distribution to members | 17,000,000 | |||||
Executive Officers [Member] | Class A Common Stock [Member] | ||||||
Schedule Of Stockholders Equity [Line Items] | ||||||
Aggregate value of all shares repurchased | $ 14,600,000 | $ 16,400,000 |
Members' Equity - Schedule of S
Members' Equity - Schedule of Share Repurchase Authorized by Board of Directors (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
October, 2017 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchase Authorization | $ 200,000,000 |
Expiration | Dec. 31, 2019 |
April, 2018 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchase Authorization | $ 300,000,000 |
Expiration | Dec. 31, 2020 |
October, 2018 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchase Authorization | $ 300,000,000 |
Expiration | Dec. 31, 2020 |
February, 2019 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchase Authorization | $ 300,000,000 |
Expiration | Dec. 31, 2020 |
Members' Equity - Schedule of_2
Members' Equity - Schedule of Shares Repurchased Under the Share Repurchase Program (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share Repurchase Program [Abstract] | ||
Number of Shares Purchased | 11,946,943 | 5,797,789 |
Average Price Per Share | $ 36.01 | $ 52.88 |
Members' Equity - Accumulated O
Members' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications | $ (15,271) | $ (6,768) | $ (16,450) | $ (25,109) |
Adjustments for items reclassified to earnings, net of tax | 1,074 | 949 | 3,319 | 2,788 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (14,197) | (5,819) | (13,131) | (22,321) |
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (86,869) | (65,417) | (82,829) | (43,790) |
Other comprehensive income (loss) before reclassifications | (24,321) | (7,631) | (28,361) | (29,258) |
Adjustments for items reclassified to earnings, net of tax | 0 | 0 | 0 | 0 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (24,321) | (7,631) | (28,361) | (29,258) |
Balance | (111,190) | (73,048) | (111,190) | (73,048) |
Employee Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (140,725) | (146,341) | (145,831) | (151,466) |
Other comprehensive income (loss) before reclassifications | 9,050 | 863 | 11,911 | 4,149 |
Adjustments for items reclassified to earnings, net of tax | 1,074 | 949 | 3,319 | 2,788 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 10,124 | 1,812 | 15,230 | 6,937 |
Balance | (130,601) | (144,529) | (130,601) | (144,529) |
AOCI Attributable to Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (1) | |||
Other comprehensive income (loss) before reclassifications | (1) | 1 | (1) | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (1) | 1 | (1) | |
Balance | (1) | (1) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (227,594) | (211,757) | (228,660) | (195,256) |
Other comprehensive income (loss) before reclassifications | (15,270) | (6,769) | (16,449) | (25,109) |
Adjustments for items reclassified to earnings, net of tax | 1,074 | 949 | 3,319 | 2,788 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (14,196) | (5,820) | (13,130) | (22,321) |
Balance | (241,790) | (217,577) | (241,790) | (217,577) |
Total AOCI [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (227,594) | (211,758) | (228,660) | (195,256) |
Balance | $ (241,791) | $ (217,577) | $ (241,791) | $ (217,577) |
Members' Equity - Adjustments f
Members' Equity - Adjustments for Items Reclassified Out of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, net of tax | $ 1,074 | $ 949 | $ 3,319 | $ 2,788 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization relating to employee benefit plans | 1,246 | 1,213 | 3,843 | 3,736 |
Less - related income taxes | 172 | 264 | 524 | 948 |
Total reclassifications, net of tax | $ 1,074 | $ 949 | $ 3,319 | $ 2,788 |
Members' Equity - Net Income At
Members' Equity - Net Income Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Minority Interest [Line Items] | |||||
Net Income Attributable to Noncontrolling Interests | $ 1,492 | $ 1,652 | $ 8,662 | $ 5,037 | |
Noncontrolling Interests | 65,435 | 65,435 | $ 52,707 | ||
Edgewater [Member] | |||||
Minority Interest [Line Items] | |||||
Net Income Attributable to Noncontrolling Interests | 1,302 | 1,651 | 8,237 | 5,034 | |
Noncontrolling Interests | 52,311 | 52,311 | 52,695 | ||
Other [Member] | |||||
Minority Interest [Line Items] | |||||
Net Income Attributable to Noncontrolling Interests | 1 | $ 1 | 2 | $ 3 | |
Noncontrolling Interests | 14 | 14 | $ 12 | ||
Consolidated VIEs [Member] | |||||
Minority Interest [Line Items] | |||||
Net Income Attributable to Noncontrolling Interests | 189 | 423 | |||
Noncontrolling Interests | $ 13,110 | $ 13,110 |
Incentive Plans - Additional In
Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Apr. 24, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend participation rights required the issuance of RSUs | 725,197 | |
Lazard Fund Interests [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, years | 10 months 24 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 | |
Unrecognized compensation expense | $ 147,308 | |
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 | 51,379 | |
Units granted under the directors deferred unit plan | 16,103 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 20,080 | |
Unrecognized compensation expense, years | 10 months 24 days | |
PRSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 4,465 | |
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 | PRSUs will vest on a single date approximately three years following the date of the grant | |
Vesting period | 3 years | |
PRSUs 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. | |
Profits Interest Participation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock conversion basis | one-for-one | |
Unrecognized compensation expense | $ 19,831 | |
Unrecognized compensation expense, years | 1 year 2 months 12 days | |
Descriptions of vesting period | Profits interest participation rights generally provide for vesting approximately three years following the grant date | |
Vesting period | 3 years | |
PRSUs target share distribution for Class A common stock, description | The target number of shares of Class A common stock subject to each PRPU is one. Based on the achievement of performance criteria, as determined by the Compensation Committee, the number of shares of Class A common stock that may be received in connection with each PRPU award will range from zero to two times the target number. | |
Percentage of target number of shares subject to the applicable units no longer subject to forfeiture due to threshold level of performance being achieved | 25.00% | |
Class A Common Stock [Member] | RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Withholding taxes in lieu of share delivery | 2,047,117 | |
Delivery of common stock associated with stock awards | 3,810,345 | |
Class A Common Stock [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Withholding taxes in lieu of share delivery | 372,792 | |
Delivery of common stock associated with stock awards | 792,776 | |
Class A Common Stock [Member] | PRSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Withholding taxes in lieu of share delivery | 203,036 | |
Delivery of common stock associated with stock awards | 968,045 | |
Class A Common Stock [Member] | 2018 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized pertaining to share based compensation arrangements | 30,000,000 | |
Class A Common Stock [Member] | Awarded Under 2008 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of outstanding Class A common stock available under the plan | 30.00% | |
Compensation plan expiration period | Apr. 24, 2018 | |
Class A Common Stock [Member] | 2005 Equity Incentive 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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based incentive awards: | ||||
Share-based incentive awards | $ 65,092 | $ 48,267 | $ 225,192 | $ 217,139 |
RSUs [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | 37,206 | 38,121 | 140,597 | 154,643 |
PRSUs [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | 14,291 | 3,107 | 16,540 | 31,125 |
Restricted Stock [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | 7,274 | 6,950 | 24,871 | 30,323 |
Profits Interest Participation Rights [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | 6,224 | 42,105 | ||
DSUs [Member] | ||||
Share-based incentive awards: | ||||
Share-based incentive awards | $ 97 | $ 89 | $ 1,079 | $ 1,048 |
Incentive Plans - Schedule of A
Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Detail) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
RSUs [Member] | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Units, Beginning Balance | shares | 11,362,306 |
Units, Granted | shares | 5,729,741 |
Units, Forfeited | shares | (673,873) |
Units, Settled | shares | (5,857,462) |
Units, Ending Balance | shares | 10,560,712 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 43.78 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 38.51 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 43.40 |
Weighted Average Grant Date Fair Value, Settled | $ / shares | 37.09 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 44.66 |
DSUs [Member] | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Units, Beginning Balance | shares | 323,546 |
Units, Granted | shares | 67,482 |
Units, Ending Balance | shares | 391,028 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 39.27 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 31.99 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 38.01 |
Incentive Plans - Schedule of_2
Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2019shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend participation rights | 725,197 |
Incentive Plans - Summary of Ac
Incentive Plans - Summary of Activity Related to Shares of Restricted Class A Common Stock (Detail) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Units, Beginning Balance | shares | 1,541,058 |
Units, Granted | shares | 1,039,736 |
Units, Forfeited | shares | (230,787) |
Units, Settled | shares | (1,165,568) |
Units, Ending Balance | shares | 1,184,439 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 43.16 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 35.32 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 40.59 |
Weighted Average Grant Date Fair Value, Settled | $ / shares | 38.38 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 41.48 |
Incentive Plans - Summary of _2
Incentive Plans - Summary of Activity Relating to PRSUs (Detail) - PRSUs [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Units, Beginning Balance | shares | 1,771,795 |
Units, Settled | shares | (1,171,081) |
Units, Ending Balance | shares | 600,714 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 38.66 |
Weighted Average Grant Date Fair Value, Settled | $ / shares | 32.44 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 50.78 |
Incentive Plans - Summary of _3
Incentive Plans - Summary of Activity Relating to PIPRs , including PRPUs (Detail) - Profits Interest Participation Rights [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units, Granted | shares | 1,462,702 |
Units, Ending Balance | shares | 1,462,702 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 38.65 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 38.65 |
Incentive Plans - Summary of LF
Incentive Plans - Summary of LFI and Other Similar Deferred Compensation Arrangements (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Compensation Liability, Beginning Balance | $ 188,962 |
Compensation Liability, Ending Balance | 228,116 |
LFI and Other Similar Deferred Compensation Arrangements [Member] | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Prepaid Compensation Asset, Beginning Balance | 76,362 |
Prepaid Compensation Asset, Granted | 101,552 |
Prepaid Compensation Asset, Forfeited | (1,571) |
Prepaid Compensation Asset, Amortization | (83,301) |
Prepaid Compensation Asset, Other | (990) |
Prepaid Compensation Asset, Ending Balance | 92,052 |
Compensation Liability, Beginning Balance | 188,022 |
Compensation Liability, Granted | 101,529 |
Compensation Liability, Settled | (89,140) |
Compensation Liability, Forfeited | (3,107) |
Compensation Liability, Increase (decrease) in fair value of underlying investments | 22,118 |
Compensation Liability, Adjustment for estimated forfeitures | 3,704 |
Compensation Liability, Other | (1,100) |
Compensation Liability, Ending Balance | $ 222,026 |
Incentive Plans - Summary of _4
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation [Abstract] | ||||
Amortization, net of forfeitures | $ 23,325 | $ 19,145 | $ 85,469 | $ 71,274 |
Change in the fair value of underlying investments | 1,764 | 3,647 | 22,118 | 1,712 |
Total | $ 25,089 | $ 22,792 | $ 107,587 | $ 72,986 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Credit) (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Components of Net Periodic Benefit Cost (Credit): | ||||
Service cost | $ 223 | $ 217 | $ 635 | $ 670 |
Interest cost | 3,716 | 3,822 | 11,476 | 11,861 |
Expected return on plan assets | (6,697) | (7,315) | (20,596) | (22,681) |
Amortization of: | ||||
Prior service cost | 26 | 82 | ||
Net actuarial loss (gain) | 1,220 | 1,213 | 3,761 | 3,736 |
Settlement loss | 2,280 | 5,802 | ||
Net periodic benefit cost (credit) | $ 768 | $ (2,063) | $ 1,160 | $ (6,414) |
Business Realignment Activities
Business Realignment Activities - Expenses Associated with Business Realignment Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Compensation and benefits | $ 49,119 | $ 49,119 |
Other | 2,335 | 2,335 |
Total | 51,454 | 51,454 |
Financial Advisory Segment [Member] | ||
Compensation and benefits | 35,658 | 35,658 |
Total | 35,658 | 35,658 |
Asset Management Segment [Member] | ||
Compensation and benefits | 13,144 | 13,144 |
Other | 1,335 | 1,335 |
Total | 14,479 | 14,479 |
Corporate Segment [Member] | ||
Compensation and benefits | 317 | 317 |
Other | 1,000 | 1,000 |
Total | $ 1,317 | $ 1,317 |
Business Realignment Activiti_2
Business Realignment Activities - Activity Related to the Obligations Pursuant to Business Realignment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
New charges | $ 51,454 | $ 51,454 |
Non-cash charges | (16,782) | |
Payments | (1,193) | |
Balance, September 30, 2019 | 33,479 | 33,479 |
Accrued Compensation and Benefits [Member] | ||
New charges | 49,119 | |
Non-cash charges | (15,447) | |
Payments | (1,193) | |
Balance, September 30, 2019 | 32,479 | 32,479 |
Other Liabilities [Member] | ||
New charges | 2,335 | |
Non-cash charges | (1,335) | |
Balance, September 30, 2019 | $ 1,000 | $ 1,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provisions | $ 9,433 | $ 25,393 | $ 42,697 | $ 75,453 |
Effective income tax rates | 17.90% | 18.80% | 15.90% | 14.70% |
U.S. federal statutory income tax rate | 21.00% | 21.00% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Fees receivable | $ 468,393 | $ 468,393 | $ 499,068 | ||
Investment Banking and Other Advisory Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 303,495 | $ 309,118 | 949,977 | $ 1,136,013 | |
Investment Banking and Other Advisory Fees [Member] | Board Of Directors Or Management Capacity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 9,000 | ||||
Lazard Ltd Subsidiaries [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest income related to interest-bearing loans | 230 | 89 | 451 | ||
Notes payable related parties current and noncurrent | 54,955 | 54,955 | 60,875 | ||
Interest expense related to interest-bearing loans with subsidiaries | 872 | 901 | 2,688 | 2,803 | |
Sponsored Funds [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue | $ 141,365 | $ 158,425 | $ 438,733 | $ 510,414 | |
Type of Revenue [Extensible List] | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member | us-gaap:AssetManagement1Member | |
Fees receivable | $ 55,714 | $ 55,714 | $ 59,304 |
Regulatory Authorities - Additi
Regulatory Authorities - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
LFNY [Member] | ||
Regulatory Requirements [Line Items] | ||
Specified fixed percentage, minimum required capital | 6.67% | |
Minimum net capital requirement as defined under exchange act | $ 100,000 | |
Regulatory capital | 133,716,000 | |
Regulatory capital in excess of minimum requirement | $ 128,376,000 | |
Aggregate indebtedness to net capital ratio | 0.60 | |
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 | $ 148,962,000 | |
Regulatory capital in excess of minimum requirement | 132,957,000 | |
CFLF [Member] | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | 161,499,000 | |
Regulatory capital in excess of minimum requirement | 106,159,000 | |
Combined European Regulated Group [Member] | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | $ 211,440,000 | |
Regulatory capital in excess of minimum requirement | $ 107,119,000 | |
Other U.S. and Non-U.S. Subsidiaries [Member] | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | 153,873,000 | |
Regulatory capital in excess of minimum requirement | $ 125,826,000 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net Revenue | $ 588,018 | $ 625,012 | $ 1,842,170 | $ 2,132,912 | |
Operating Expenses | 535,200 | 490,280 | 1,572,876 | 1,619,414 | |
Operating Income (Loss) | 52,818 | 134,732 | 269,294 | 513,498 | |
Total Assets | 4,994,628 | 4,994,628 | $ 4,389,475 | ||
Operating Segments [Member] | Financial Advisory Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 304,174 | 309,846 | 953,863 | 1,137,781 | |
Operating Expenses | 303,966 | 253,602 | 847,322 | 900,397 | |
Operating Income (Loss) | 208 | 56,244 | 106,541 | 237,384 | |
Total Assets | 1,044,961 | 1,044,961 | 829,898 | ||
Operating Segments [Member] | Asset Management Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 300,015 | 325,240 | 917,439 | 1,032,111 | |
Operating Expenses | 225,819 | 211,564 | 652,188 | 670,794 | |
Operating Income (Loss) | 74,196 | 113,676 | 265,251 | 361,317 | |
Total Assets | 703,744 | 703,744 | 728,220 | ||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | (16,171) | (10,074) | (29,132) | (36,980) | |
Operating Expenses | 5,415 | 25,114 | 73,366 | 48,223 | |
Operating Income (Loss) | (21,586) | $ (35,188) | (102,498) | $ (85,203) | |
Total Assets | $ 3,245,923 | $ 3,245,923 | $ 2,831,357 |
Consolidated VIEs - Summary of
Consolidated VIEs - Summary of Consolidated VIE Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 928,439 | $ 1,185,040 |
Customers and other receivables | 199,387 | 184,137 |
Investments | 535,848 | 575,148 |
Other assets | 313,181 | 258,413 |
LIABILITIES | ||
Deposits and other customer payables | 1,405,836 | 1,154,208 |
Other liabilities | 462,780 | $ 565,801 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
ASSETS | ||
Cash and cash equivalents | 3,377 | |
Customers and other receivables | 519 | |
Investments | 89,333 | |
Other assets | 769 | |
Total Assets | 93,998 | |
LIABILITIES | ||
Deposits and other customer payables | 462 | |
Other liabilities | 477 | |
Total Liabilities | $ 939 |
Consolidated VIEs - Summary o_2
Consolidated VIEs - Summary of Consolidated VIE Assets and Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Investments | $ 535,848 | $ 575,148 |
Lazard Fund Interests [Member] | Lazard Group LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 79,791 |