10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                          to                         

001-32492

(Commission File Number)

LAZARD LTD

(Exact name of registrant as specified in its charter)

Bermuda	98-0437848
(State or Other Jurisdiction of Incorporation	(I.R.S. Employer Identification No.)
or Organization)

Clarendon House

2 Church Street

Hamilton HM11, Bermuda

(Address of principal executive offices)

Registrant’s telephone number: (441) 295-1422

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  x	Accelerated filer  ¨
Non-accelerated filer  ¨	Smaller reporting company  ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of July 25, 2012, there were 123,196,012 shares of the Registrant’s Class A common stock (including 6,970,705 shares held by subsidiaries) and one share of the registrant’s Class B common stock outstanding.

TABLE OF CONTENTS

When we use the terms “Lazard”, “we”, “us”, “our” and “the Company”, we mean Lazard Ltd, a company incorporated under the laws of Bermuda, and its subsidiaries, including Lazard Group LLC, a Delaware limited liability company (“Lazard Group”), that is the current holding company for our businesses. Lazard Ltd has no material operating assets other than indirect ownership as of June 30, 2012 of approximately 94.9% of the common membership interests in Lazard Group and its controlling interest in Lazard Group.

	Page
Part I. Financial Information
Item 1. Financial Statements (Unaudited)		1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		39
Item 3. Quantitative and Qualitative Disclosures About Market Risk		71
Item 4. Controls and Procedures		71
Part II. Other Information
Item 1. Legal Proceedings		72
Item 1A. Risk Factors		72
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		72
Item 3. Defaults Upon Senior Securities		73
Item 4. Mine Safety Disclosures		73
Item 5. Other Information		73
Item 6. Exhibits		74
Signatures		80

i

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

	Page
Condensed Consolidated Statements of Financial Condition as of June 30, 2012 and December 31, 2011		2
Condensed Consolidated Statements of Operations for the three month and six month periods ended June 30, 2012 and 2011		4
Condensed Consolidated Statements of Comprehensive Income for the three month and six month periods ended June 30, 2012 and 2011		5
Condensed Consolidated Statements of Cash Flows for the six month periods ended June 30, 2012 and 2011		6
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the six month periods ended June 30, 2012 and 2011		7
Notes to Condensed Consolidated Financial Statements		9

1

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2012 AND DECEMBER 31, 2011

(UNAUDITED)

(dollars in thousands, except for per share data)

	June 30,		December 31,
	2012		2011
ASSETS
Cash and cash equivalents		$751,238		$1,003,791
Deposits with banks		324,355		286,037
Cash deposited with clearing organizations and other segregated cash		78,774		75,506
Receivables (net of allowance for doubtful accounts of $20,756 and $19,450 at June 30, 2012 and December 31, 2011, respectively):
Fees		388,588		402,843
Customers and other		80,790		83,111
Related parties		14,102		18,501
		483,480		504,455
Investments		439,683		378,521
Property (net of accumulated amortization and depreciation of $261,690 and $266,673 at June 30, 2012 and December 31, 2011, respectively)		198,289		168,429
Goodwill and other intangible assets (net of accumulated amortization of $30,600 and $26,922 at June 30, 2012 and December 31, 2011, respectively)		394,168		393,099
Other assets		307,867		272,098
Total assets		$2,977,854		$3,081,936

See notes to condensed consolidated financial statements.

2

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION—(Continued)

JUNE 30, 2012 AND DECEMBER 31, 2011

(UNAUDITED)

(dollars in thousands, except for per share data)

	June 30,			December 31,
	2012			2011
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits and other customer payables		$338,514			$288,427
Accrued compensation and benefits		251,120			383,513
Senior debt		1,076,850			1,076,850
Capital lease obligations		18,293			20,084
Related party payables		7,080			6,075
Other liabilities		459,589			440,131
Total liabilities		2,151,446			2,215,080
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Preferred stock, par value $.01 per share; 15,000,000 shares authorized:
Series A - 7,921 shares issued and outstanding at June 30, 2012 and December 31, 2011		–			–
Series B - no shares issued and outstanding		–			–
Common stock:
Class A, par value $.01 per share (500,000,000 shares authorized; 123,196,012 and 123,009,311 shares issued at June 30, 2012 and December 31, 2011, respectively, including shares held by subsidiaries as indicated below)		1,232			1,230
Class B, par value $.01 per share (1 share authorized, issued and outstanding at June 30, 2012 and December 31, 2011)		–			–
Additional paid-in-capital		700,064			659,013
Retained earnings		264,682			258,646
Accumulated other comprehensive loss, net of tax		(94,171	)		(88,364	)
		871,807			830,525
Class A common stock held by subsidiaries, at cost (6,389,777 and 3,492,017 shares at June 30, 2012 and December 31, 2011, respectively)		(167,382	)		(104,382	)
Total Lazard Ltd stockholders’ equity		704,425			726,143
Noncontrolling interests		121,983			140,713
Total stockholders’ equity		826,408			866,856
Total liabilities and stockholders’ equity		$2,977,854			$3,081,936

See notes to condensed consolidated financial statements.

3

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2012 AND 2011

(UNAUDITED)

(dollars in thousands, except for per share data)

	Three Months Ended June  30,				Six Months Ended June 30,
	2012		2011		2012		2011
REVENUE
Investment banking and other advisory fees		$240,306		$243,096		$513,847		$463,423
Money management fees		201,642		230,906		406,203		445,598
Interest income		1,715		4,363		3,865		7,855
Other		13,568		22,240		39,777		45,070
Total revenue		457,231		500,605		963,692		961,946
Interest expense		20,321		23,313		40,743		46,631
Net revenue		436,910		477,292		922,949		915,315
OPERATING EXPENSES
Compensation and benefits		283,392		286,480		621,709		556,479
Occupancy and equipment		28,347		22,977		54,629		45,685
Marketing and business development		22,322		20,879		50,589		38,990
Technology and information services		21,275		20,582		41,668		40,149
Professional services		13,274		13,120		22,585		22,961
Fund administration and outsourced services		12,670		13,507		26,121		26,758
Amortization of intangible assets related to acquisitions		2,560		1,706		3,678		3,180
Other		8,537		8,839		19,614		18,465
Total operating expenses		392,377		388,090		840,593		752,667
OPERATING INCOME		44,533		89,202		82,356		162,648
Provision for income taxes		10,371		17,636		19,138		31,099
NET INCOME		34,162		71,566		63,218		131,549
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		3,341		9,562		6,845		14,538
NET INCOME ATTRIBUTABLE TO LAZARD LTD		$  30,821		$  62,004		$  56,373		$117,011
ATTRIBUTABLE TO LAZARD LTD CLASS A COMMON STOCKHOLDERS:
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic		118,235,320		119,107,386		118,732,431		117,221,070
Diluted		134,636,935		139,347,933		135,615,557		138,969,263
NET INCOME PER SHARE OF COMMON STOCK:
Basic		$0.26		$0.52		$0.47		$1.00
Diluted		$0.24		$0.48		$0.44		$0.91
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK		$0.20		$0.16		$0.36		$0.285

See notes to condensed consolidated financial statements.

4

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2012 AND 2011

(UNAUDITED)

(dollars in thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
NET INCOME	$	34,162		$	71,566		$63,218			$131,549
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Currency translation adjustments		(21,083	)		8,436		(1,954	)		32,174
Amortization of interest rate hedge		263			263		527			527
Employee benefit plans:
Net actuarial gain (loss) (net of tax benefit (expense) of $1,443 and $(29) for the three months ended June 30, 2012 and 2011, respectively, and $2,725 and $1,906 for the six months ended June 30, 2012 and 2011, respectively)		(3,457	)		55		(6,054	)		(3,630	)
Adjustment for items reclassified to earnings (net of tax expense of $281 and $262 for the three months ended June 30, 2012 and 2011, respectively, and $578 and $517 for the six months ended June 30, 2012 and 2011, respectively)		826			566		1,641			1,114
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX		(23,451	)		9,320		(5,840	)		30,185
COMPREHENSIVE INCOME		10,711			80,886		57,378			161,734
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		2,096			9,942		6,698			16,187
COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD LTD	$	8,615		$	70,944	$	50,680			$145,547

See notes to condensed consolidated financial statements.

5

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2012 AND 2011

(UNAUDITED)

(dollars in thousands)

	Six Months Ended June 30,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	63,218		$	131,549
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash items included in net income:
Depreciation and amortization of property		14,800			11,820
Amortization of deferred expenses, share-based incentive compensation and interest rate hedge		173,083			164,713
Amortization of intangible assets related to acquisitions		3,678			3,180
(Increase) decrease in operating assets:
Deposits with banks		(47,391	)		132,672
Cash deposited with clearing organizations and other segregated cash		(4,583	)		(845	)
Receivables-net		17,417			52,477
Investments		(58,317	)		(13,164	)
Other assets		(59,656	)		12,237
Increase (decrease) in operating liabilities:
Deposits and other payables		60,091			(112,956	)
Accrued compensation and benefits and other liabilities		(127,851	)		(366,816	)
Net cash provided by operating activities		34,489			14,867
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property		(48,941	)		(5,676	)
Disposals of property		2,053			199
Net cash used in investing activities		(46,888	)		(5,477	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Contribution from noncontrolling interests		784			980
Excess tax benefits from share-based incentive compensation		–			2,848
Other financing activities		10			1,688
Payments for:
Capital lease obligations		(1,336	)		(1,397	)
Distributions to noncontrolling interests		(13,462	)		(8,034	)
Repurchase of common membership interests from members of LAZ-MD Holdings		–			(794	)
Purchase of Class A common stock		(152,413	)		(126,237	)
Class A common stock dividends		(43,011	)		(32,855	)
Settlement of vested share-based incentive compensation		(29,421	)		(90,635	)
Other financing activities		(59	)		(46	)
Net cash used in financing activities		(238,908	)		(254,482	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(1,246	)		19,409
NET DECREASE IN CASH AND CASH EQUIVALENTS		(252,553	)		(225,683	)
CASH AND CASH EQUIVALENTS—January 1		1,003,791			1,209,695
CASH AND CASH EQUIVALENTS—June 30	$	751,238		$	984,012

See notes to condensed consolidated financial statements.

6

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2011

(UNAUDITED)

(dollars in thousands)

	Series A Preferred Stock				Common Stock				Additional Paid-In- Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss), Net of Tax			Class A Common Stock Held By a Subsidiary						Total Lazard Ltd Stockholders’ Equity			Noncontrolling Interests			Total Stockholders’ Equity
	Shares		$		Shares (*)		$											Shares			$
Balance – January 1, 2011		22,021	$	–		119,697,937	$	1,197	$	758,841		$	166,468		$	(46,158	)		6,847,508		$	(227,950	)	$	652,398		$	143,719		$	796,117
Comprehensive income (loss):
Net income													117,011												117,011			14,538			131,549
Other comprehensive income (loss) - net of tax:
Currency translation adjustments																30,418									30,418			1,756			32,174
Amortization of interest rate hedge																498									498			29			527
Employee benefit plans:
Net actuarial loss																(3,434	)								(3,434	)		(196	)		(3,630	)
Adjustments for items reclassified to earnings																1,054									1,054			60			1,114
Comprehensive income																									145,547			16,187			161,734
Business acquisitions and related equity transactions:
Class A common stock issued/issuable (including related amortization)										4,180															4,180			240			4,420
Amortization of share-based incentive compensation										144,261															144,261			8,272			152,533
Dividend-equivalents										5,958			(5,991	)											(33	)		(2	)		(35	)
Class A common stock dividends													(32,855	)											(32,855	)					(32,855	)
Purchase of Class A common stock																			3,156,416			(126,237	)		(126,237	)					(126,237	)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefits of $2,178										(282,956	)								(5,664,049	)		194,424			(88,532	)		75			(88,457	)
Repurchase of common membership interests from LAZ-MD Holdings										(751	)														(751	)		(43	)		(794	)
Class A common stock issued in exchange for Lazard Group common membership interests						728,385		7		(7	)														–						–
Adjustment related to the change in Lazard Ltd’s ownership in Lazard Group										(1,580	)														(1,580	)					(1,580	)
Distributions to noncontrolling interests, net																									–			(7,054	)		(7,054	)
Adjustments related to noncontrolling interests										14,323						(205	)								14,118			(14,118	)		–
Balance – June 30, 2011		22,021	$	–		120,426,322	$	1,204	$	642,269		$	244,633		$	(17,827	)		4,339,875		$	(159,763	)	$	710,516		$	147,276		$	857,792

^(*) Includes 119,697,936 and 120,426,321 shares of the Company’s Class A common stock issued at January 1, 2011 and June 30, 2011, respectively, and 1 share of the Company’s Class B common stock issued at each such date.

See notes to condensed consolidated financial statements.

7

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2012

(UNAUDITED)

(dollars in thousands)

	Series A Preferred Stock				Common Stock				Additional Paid-In- Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss), Net of Tax			Class A Common Stock Held By Subsidiaries						Total Lazard Ltd Stockholders’ Equity			Noncontrolling Interests			Total Stockholders’ Equity
	Shares		$		Shares(*)		$											Shares			$
Balance – January 1, 2012		7,921	$	–		123,009,312	$	1,230	$	659,013		$	258,646		$	(88,364	)		3,492,017		$	(104,382	)	$	726,143		$	140,713		$	866,856
Comprehensive income (loss):
Net income													56,373												56,373			6,845			63,218
Other comprehensive income (loss) - net of tax:
Currency translation adjustments																(2,004	)								(2,004	)		50			(1,954	)
Amortization of interest rate hedge																500									500			27			527
Employee benefit plans:
Net actuarial loss																(5,747	)								(5,747	)		(307	)		(6,054	)
Adjustments for items reclassified to earnings																1,558									1,558			83			1,641
Comprehensive income																									50,680			6,698			57,378
Business acquisitions and related equity transactions:
Class A common stock issued/issuable (including related amortization)										2,865															2,865			153			3,018
Amortization of share-based incentive compensation										144,766															144,766			7,720			152,486
Dividend-equivalents										7,277			(7,326	)											(49	)		(3	)		(52	)
Class A common stock dividends													(43,011	)											(43,011	)					(43,011	)
Purchase of Class A common stock																			5,706,592			(152,413	)		(152,413	)					(152,413	)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense of $972										(119,757	)								(2,808,832	)		89,413			(30,344	)		(49	)		(30,393	)
Class A common stock issued in exchange for Lazard Group common membership interests						186,701		2		(2	)														–						–
Distributions to noncontrolling interests, net																									–			(12,678	)		(12,678	)
Deconsolidation of investment companies																									–			(14,783	)		(14,783	)
Adjustments related to noncontrolling interests										5,902						(114	)								5,788			(5,788	)		–
Balance – June 30, 2012		7,921	$	–		123,196,013	$	1,232	$	700,064		$	264,682		$	(94,171	)		6,389,777		$	(167,382	)	$	704,425		$	121,983		$	826,408

^(*) Includes 123,009,311 and 123,196,012 shares of the Company’s Class A common stock issued at January 1, 2012 and June 30, 2012, respectively, and 1 share of the Company’s Class B common stock issued at each such date.

See notes to condensed consolidated financial statements.

8

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”, “Lazard”, “we” or the “Company”), including Lazard Ltd’s indirect investment in Lazard Group LLC, a Delaware limited liability company (collectively referred to, together with its subsidiaries, as “Lazard Group”), is one of the world’s preeminent financial advisory and asset management firms and has long specialized in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, partnerships, institutions, governments and individuals.

Lazard Ltd indirectly held approximately 94.9% and 94.8% of all outstanding Lazard Group common membership interests as of June 30, 2012 and December 31, 2011, respectively. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Operating Agreement dated as of May 10, 2005, as amended (the “Operating Agreement”). LAZ-MD Holdings LLC (“LAZ-MD Holdings”), an entity owned by Lazard Group’s current and former managing directors, held approximately 5.1% and 5.2% of the outstanding Lazard Group common membership interests as of June 30, 2012 and December 31, 2011, respectively. Additionally, LAZ-MD Holdings was the sole owner of the one issued and outstanding share of Lazard Ltd’s Class B common stock (the “Class B common stock”) which provided LAZ-MD Holdings with approximately 5.1% and 5.2% of the voting power but no economic rights in the Company as of such respective dates. Subject to certain limitations, LAZ-MD Holdings’ interests in Lazard Group are exchangeable for Lazard Ltd Class A common stock, par value $0.01 per share (“Class A common stock”).

Our sole operating asset is our indirect ownership of common membership interests of Lazard Group and our managing member interest of Lazard Group, whose principal operating activities are included in two business segments:

• Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding mergers and acquisitions (“M&A”) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters, and

• Asset Management, which offers a broad range of investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients globally.

In addition, we record selected other activities in our Corporate segment, including management of cash, certain investments and the commercial banking activities of Lazard Group’s Paris-based Lazard Frères Banque SA (“LFB”). We also record outstanding indebtedness in our Corporate segment.

LFB is a registered bank regulated by the Autorité de Contrôle Prudentiel. It is engaged primarily in commercial and private banking services for clients and funds managed by Lazard Frères Gestion SAS (“LFG”) and other clients, investment banking activities, including participation in underwritten offerings of securities in France, asset-liability management and limited trading in securities and foreign exchange.

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting

9

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2011 (the “Form 10-K”). The accompanying December 31, 2011 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. 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 six month periods ended June 30, 2012 are not necessarily indicative of the results to be expected for any future interim or annual period.

The condensed consolidated financial statements include Lazard Ltd, Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”) along with its subsidiaries, LFB and LFG, and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries.

The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities (“VIEs”) where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company is the general partner, unless the presumption of control is overcome. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated.

2. RECENT ACCOUNTING DEVELOPMENTS

Fair Value Measurements—In the first quarter of 2012, the Company adopted the amended fair value measurement guidance issued by the Financial Accounting Standards Board (the “FASB”), which the FASB stated was designed to achieve common fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”). Although many of the changes for U.S. GAAP purposes are clarifications of existing guidance or wording changes to align with IFRS, additional disclosures about fair value measurements are required, including (i) a quantitative disclosure of the unobservable inputs and assumptions used in the measurement, (ii) the valuation processes used and the sensitivity of fair value measurements related to investments categorized within Level 3 of the hierarchy of fair value measurements to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any, and (iii) the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial condition but for which the fair value is required to be disclosed. The amended fair value measurement guidance became effective for interim and annual periods beginning after December 15, 2011 and is applied prospectively. The adoption of the amended fair value measurement guidance did not have a material impact on the Company’s consolidated financial statements, primarily because substantially all Level 3 assets are carried at net asset value (“NAV”) or its equivalent.

Other Comprehensive Income—In the first quarter of 2012, the Company adopted the FASB’s amended guidance regarding the presentation of comprehensive income, which the FASB stated was designed to improve

10

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

comparability, consistency and transparency. The amendment required that all changes in comprehensive income be presented either in (i) a single continuous statement of comprehensive income or in (ii) two separate but consecutive statements. The amendment was to be applied retrospectively and is effective with interim and annual periods beginning after December 15, 2011, with early adoption permitted. The Company elected the two-statement method.

3. RECEIVABLES - NET

The Company’s “receivables - net” represents receivables from fees, customers and other and related parties.

Receivables are stated net of an estimated allowance for doubtful accounts of $20,756 and $19,450 at June 30, 2012 and December 31, 2011, respectively, for past due amounts and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute. The Company recorded net bad debt expense (recoveries) of $(133) and $1,148 for the three month and six month periods ended June 30, 2012, respectively, and $2,463 and $3,430 for the three month and six month periods ended June 30, 2011, respectively. In addition, the Company recorded charge-offs, foreign currency translation and other adjustments, which resulted in a net increase (decrease) to the allowance for doubtful accounts of $(283) and $158 for the three month and six month periods ended June 30, 2012, respectively, and $(1,435) and $(1,922) for the three month and six month periods ended June 30, 2011, respectively. At June 30, 2012 and December 31, 2011, the Company had receivables deemed past due or uncollectible of $22,857 and $22,785, respectively.

4. INVESTMENTS

The Company’s investments and securities sold, not yet purchased, consist of the following at June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
Debt	$	20,270	$	36,966
Equities (a)		212,314		156,053
Other:
Interests in alternative asset management funds (a)		36,500		20,610
Fixed income funds (a)		47,165		31,121
Private equity		113,991		122,718
Equity method investments		9,443		11,053
		207,099		185,502
Total		439,683		378,521
Less:
Interest-bearing deposits (included in “debt” above)		2,715		2,834
Equity method investments		9,443		11,053
Investments, at fair value	$	427,525	$	364,634
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	1,097	$	4,282

(a) Equities, interests in alternative asset management funds and fixed income funds include investments with fair values of $73,174, $3,512 and $20,237, respectively, at June 30, 2012 and $19,857, $2,256 and $5,212, respectively,

11

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

at December 31, 2011, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“Lazard Fund Interests”) and other similar deferred compensation arrangements. Lazard Fund Interests represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds (see Notes 6 and 13 of Notes to Condensed Consolidated Financial Statements).

Debt securities primarily consist of seed investments in Asset Management products and U.S. and non-U.S. government debt securities.

Equities primarily consist of (i) seed investments in Asset Management products, which in turn invest in marketable equity securities of large-, mid- and small-cap domestic, international and global companies and include investments in public and private asset management funds managed both by LAM and third-party asset managers and (ii) amounts relating to Lazard Fund Interests discussed above.

Interests in alternative asset management funds primarily consist of general partner (“GP”) interests in various Lazard-managed alternative asset management funds.

Fixed income funds primarily consist of (i) seed investments in Asset Management products, which invest in fixed income securities and (ii) amounts relating to Lazard Fund Interests 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) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies, (ii) Corporate Partners II Limited (“CP II”), a private equity fund targeting significant noncontrolling-stake investments in established public and private companies, (iii) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a private equity fund primarily making equity and buyout investments in lower middle market companies, (iv) Lazard Senior Housing Partners LP (“Senior Housing”), which targets controlling interests in companies and assets in the senior housing, extended-stay hotel and shopping center sectors, and (v) Lazard Australia Corporate Opportunities Fund 2 (“COF 2”), a Lazard-managed Australian private equity fund.

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”) which aggregated $19,932 and $18,502 at June 30, 2012 and December 31, 2011, respectively.

During the three month and six month periods ended June 30, 2012 and 2011, the Company recognized gross investment gains and losses in “revenue-other” on its condensed consolidated statements of operations as follows:

	Three Month Period Ended  June 30,				Six Month Period  Ended June 30,
	2012		2011		2012		2011
Gross investment gains	$	1,715	$	8,830	$	29,359	$	15,205
Gross investment losses	$	3,052	$	2,235	$	4,036	$	3,251

12

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The table above includes gross unrealized investment gains and losses pertaining to “trading” securities as follows:
	Three Month Period Ended June 30,				Six Month Period Ended June 30,
	2012		2011		2012		2011
Gross unrealized investment gains	$	373	$	641	$	1,418	$	1,214
Gross unrealized investment losses	$	1,721	$	193	$	1,721	$	313

5. FAIR VALUE MEASUREMENTS

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, (ii) assets valued based on NAV or its equivalent redeemable at the measurement date or within the near term without redemption restrictions, or (iii) 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 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, as well as assets valued based on NAV or its equivalent, but not redeemable within the near term as a result of redemption restrictions.

The Company’s investments in U.S. and non-U.S. Government and other debt securities are considered Level 1 assets when their respective fair values are based on unadjusted quoted prices in active markets and are considered Level 2 assets when their fair values are primarily based on prices as provided by external pricing services.

The fair value of equities is principally classified as Level 1, Level 2 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; public asset management funds are classified as Level 1 and are valued based on the reported closing price for the fund; investments in private asset management funds redeemable in the near term are classified as Level 2 and valued at NAV or its equivalent, which is primarily determined based on information provided by fund managers and, secondarily, from external pricing services to the extent managed by LAM; and Level 3 represents equities valued based on NAV or its equivalent that are not redeemable within the near term.

The fair value of interests in alternative asset management funds is classified as either Level 2 or Level 3 depending on the time frame of any applicable redemption restriction, and is valued at NAV or its equivalent, which is primarily determined based on information provided by fund managers and, secondarily, from external pricing services to the extent managed by LAM.

13

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The Company’s investments in fixed income funds are considered Level 1 assets when the fair values are based on the reported closing price for the fund or Level 2 assets when the fair values are primarily based on broker quotes as provided by external pricing services.

The fair value of private equity investments is classified as Level 3, and is primarily based on NAV or its equivalent. Such investments are not redeemable within the near term.

The fair values of derivatives entered into by the Company are classified as Level 2 and are based on the values of the related underlying assets, indices or reference rates as follows - the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the currency from the trade date to settlement date; the fair value of equity and fixed income swaps is based on the change in fair values of the related underlying equity security, financial instrument or index and a specified notional holding; the fair values of interest rate swaps are based on the interest rate yield curve; and the fair value of derivative liabilities related to Lazard Fund Interests and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for estimated forfeitures.

Where information reported is based on broker quotes, the Company generally obtains one quote/price per instrument. Where information reported is based on data received from fund managers or from external pricing services, the Company reviews such information to ascertain at which level within the fair value hierarchy to classify the investment.

14

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The following tables present the categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011 into the three-level fair value hierarchy in accordance with fair value measurement disclosure requirements:

	June 30, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	13,302	$	4,253	$	–	$	17,555
Equities		168,187		43,936		191		212,314
Other (excluding equity method investments):
Interests in alternative asset management funds		–		31,884		4,616		36,500
Fixed income funds		33,211		13,954		–		47,165
Private equity		–		–		113,991		113,991
Derivatives		–		4,449		–		4,449
Total	$	214,700	$	98,476	$	118,798	$	431,974
Liabilities:
Securities sold, not yet purchased	$	1,097	$	–	$	–	$	1,097
Derivatives		–		87,495		–		87,495
Total	$	1,097	$	87,495	$	–	$	88,592
	December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	17,111	$	17,021	$	–	$	34,132
Equities		115,380		37,332		3,341		156,053
Other (excluding equity method investments):
Interests in alternative asset management funds		–		13,569		7,041		20,610
Fixed income funds		27,539		3,582		–		31,121
Private equity		–		–		122,718		122,718
Derivatives		–		7,131		–		7,131
Total	$	160,030	$	78,635	$	133,100	$	371,765
Liabilities:
Securities sold, not yet purchased	$	4,282	$	–	$	–	$	4,282
Derivatives		–		30,713		–		30,713
Total	$	4,282	$	30,713	$	–	$	34,995

15

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

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 six month periods ended June 30, 2012 and 2011.

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets for the three month and six month periods ended June 30, 2012 and 2011:

	Three Months Ended June 30, 2012
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)			Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	227	$	5		$	–	$	(30	)	$	(11	)	$	191
Interests in alternative asset management funds		5,905		(38	)		10		(1,261	)		–			4,616
Private equity		116,563		4,786			56		(4,873	)		(2,541	)		113,991
Total Level 3 Assets	$	122,695	$	4,753		$	66	$	(6,164	)	$	(2,552	)	$	118,798

	Six Months Ended June 30, 2012
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	3,341	$	5	$	10	$	(3,160	)	$	(5	)	$	191
Interests in alternative asset management funds		7,041		89		10		(2,524	)		–			4,616
Private equity		122,718		12,350		2,752		(22,745	)		(1,084	)		113,991
Total Level 3 Assets	$	133,100	$	12,444	$	2,772	$	(28,429	)	$	(1,089	)	$	118,798

	Three Months Ended June 30, 2011
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Investments:
Equities	$	129	$	3	$	–	$	–		$	3	$	135
Private equity		171,487		3,545		922		(2,052	)		802		174,704
Total Level 3 Assets	$	171,616	$	3,548	$	922	$	(2,052	)	$	805	$	174,839

16

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

	Six Months Ended June 30, 2011
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Investments:
Equities	$	316	$	3	$	–	$	(195	)	$	11	$	135
Private equity		163,482		3,824		13,075		(9,160	)		3,483		174,704
Total Level 3 Assets	$	163,798	$	3,827	$	13,075	$	(9,355	)	$	3,494	$	174,839

(a) Earnings for the three month and six month periods ended June 30, 2012 and three month and six month periods ended June 30, 2011 include net unrealized gains of $3,483, $9,563, $3,538 and $3,817, respectively.

Fair Value of Certain Investments Based on NAV—The Company’s Level 2 and Level 3 investments at June 30, 2012 and December 31, 2011 include certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value. Information with respect thereto was as follows:

	June 30, 2012
					% of			Estimated Liquidation Period of Investments Not Redeemable									Investments Redeemable
	Fair Value		Unfunded Commitments		Fair Value Not Redeemable			% Next 5 Years			% 5-10 Years			% Thereafter			Redemption Frequency	Redemption Notice Period
Equity funds	$	43,908	$	–		2	%		1	%		0	%		1	%	Quarterly	60 Days
Interests in alternative asset management funds		36,500		–		0	%		0	%		0	%		0	%	Quarterly	>90 Days
Fixed income funds		13,954		–		0	%		0	%		0	%		0	%	Monthly	60 Days
Private equity funds		112,392		35,726		100	%		25	%		35	%		40	%	NA	NA
Total	$	206,754	$	35,726
	December 31, 2011
					% of			Estimated Liquidation Period of Investments Not Redeemable									Investments Redeemable
	Fair Value		Unfunded Commitments		Fair Value Not Redeemable			% Next 5 Years			% 5-10 Years			% Thereafter			Redemption Frequency	Redemption Notice Period
Equity funds	$	40,512	$	–		2	%		1	%		0	%		1	%	Quarterly	60 Days
Interests in alternative asset management funds		20,600		–		0	%		0	%		0	%		0	%	Quarterly	>90 Days
Fixed income funds		3,582		–		0	%		0	%		0	%		0	%	Monthly	60 Days
Private equity funds		121,276		52,197		100	%		33	%		28	%		39	%	NA	NA
Total	$	185,970	$	52,197

Investment Capital Funding Commitments—At June 30, 2012, the current maximum unfunded commitments by the Company for capital contributions to investment funds related to (i) CP II, amounting to $2,124 for potential “follow-on investments” and/or for fund expenses through the earlier of February 25, 2017

17

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

or the liquidation of the fund, (ii) EGCP III, amounting to $25,673 through the earlier of October 12, 2016 (i.e., the end of the investment period) for investments and/or expenses (with a portion of the undrawn amount of such commitment as of that date remaining committed until October 12, 2023 in respect of “follow-on investments” and/or fund expenses) or the liquidation of the fund and (iii) COF 2, amounting to $7,929, through the earlier of November 11, 2016 (i.e., the end of the investment period) for investments and/or fund expenses (with a portion of the undrawn amount of such commitment as of that date remaining committed until November 11, 2019 in respect of “follow-on investments” and/or fund expenses) or the liquidation of the fund.

6. DERIVATIVES

The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, equity and fixed income swaps and other derivative contracts to hedge exposures to fluctuations in currency exchange rates, interest rates and equity and debt markets. 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 consolidated statements of financial condition. Gains and losses on the Company’s derivative instruments not designated as hedging instruments are included in “interest income” and “interest expense”, respectively, or “revenue-other”, depending on the nature of the underlying item, on the consolidated statements of operations.

In addition to the derivative instruments described above, the Company records derivative liabilities relating to its obligations pertaining to Lazard Fund Interests awards 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 consolidated statements of financial condition. Changes in the fair value of the derivative liabilities are included in “compensation and benefits” in the 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 Lazard Fund Interests awards, which is reported in “revenue-other” in the consolidated statements of operations.

The table below represents the fair values 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 Lazard Fund Interests and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 13 of Notes to Condensed Consolidated Financial Statements) on the accompanying condensed consolidated statements of financial condition as of June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
Derivative Assets:
Forward foreign currency exchange rate contracts		$1,084	$	4,245
Equity and fixed income swaps and other		3,365		2,886
Total		$4,449	$	7,131

18

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

	June 30,		December 31,
	2012		2011
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	1,491	$	445
Interest rate swaps		247		277
Equity and fixed income swaps		116		91
Lazard Fund Interests and other similar deferred compensation arrangements (see Note 13)		85,641		29,900
Total	$	87,495	$	30,713

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 Lazard Fund Interests and other similar deferred compensation arrangements (reported in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2012 and 2011, by type of derivative, were as follows:

	Three Months Ended June 30,					Six Months Ended June  30,
	2012		2011			2012			2011
Forward foreign currency exchange rate contracts	$	4,051	$	(3,139	)	$	2,129		$	(9,397	)
Equity and fixed income swaps and other		3,630		(432	)		(6,625	)		(2,721	)
Lazard Fund Interests and other similar deferred compensation arrangements		2,856		–			89			–
Total	$	10,537	$	(3,571	)	$	(4,407	)	$	(12,118	)

7. BUSINESS ACQUISITIONS

On July 15, 2009, the Company established a private equity business with Edgewater. Edgewater manages funds primarily focused on buy-out and growth equity investments in middle market companies. The acquisition was structured as a purchase by Lazard Group of interests in a holding company that in turn owns interests in the general partner and management company entities of the current Edgewater private equity funds (the “Edgewater Acquisition”). Following the Edgewater Acquisition, Edgewater’s management team retained a substantial economic interest in such entities. Edgewater’s activities are recorded in the Company’s Asset Management segment.

The aggregate fair value of the consideration recognized by the Company at the acquisition date was $61,624. Such consideration consisted of (i) a one-time cash payment, (ii) 1,142,857 shares of Class A common stock (the “Initial Shares”) and (iii) up to 1,142,857 additional shares of Class A common stock subject to earnout criteria and payable over time (the “Earnout Shares”). The Initial Shares are subject to forfeiture provisions that lapse only upon the achievement of certain performance thresholds and transfer restrictions during the four year period ending December 2014. The Earnout Shares will be issued only if certain performance thresholds are met. On December 30, 2011, 285,715 Initial Shares and 57,287 Earnout Shares became unrestricted or were otherwise delivered.

In prior years, the Company made certain other business acquisitions. These purchases were effected through an exchange of a combination of cash, Class A common stock, and by Lazard Ltd issuing shares of non-participating convertible Series A and Series B preferred stock, which were each convertible into Class A common stock. In connection with such acquisitions, as of both June 30, 2012 and December 31, 2011, 47,474 shares of Class A common

19

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

stock were issuable on a non-contingent basis. At June 30, 2012, no shares of Series A preferred stock were convertible into shares of Class A common stock on a contingent or a non-contingent basis. See Note 12 of Notes to Condensed Consolidated Financial Statements for additional information relating to preferred stock.

8. PROPERTY-NET

At June 30, 2012 and December 31, 2011 property-net consists of the following:

	Estimated Depreciable Life in Years		June 30, 2012		December 31, 2011
Buildings		33	$	158,939	$	164,168
Leasehold improvements		5 - 20		167,957		159,191
Furniture and equipment		3 - 10		108,025		85,396
Construction in progress				25,058		26,347
Total				459,979		435,102
Less – Accumulated depreciation and amortization				261,690		266,673
Property-net			$	198,289	$	168,429

9. GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at June 30, 2012 and December 31, 2011 are presented below:

	June 30,		December 31,
	2012		2011
Goodwill	$	360,993	$	356,657
Other intangible assets (net of accumulated amortization)		33,175		36,442
Total	$	394,168	$	393,099

At June 30, 2012 and December 31, 2011, goodwill of $296,452 and $292,116, respectively, was attributable to the Company’s Financial Advisory segment and, at such respective dates, $64,541 of goodwill was attributable to the Company’s Asset Management segment.

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2012, and 2011 are as follows:

	Six Months Ended June 30,
	2012		2011
Balance, January 1	$	356,657	$	313,229
Business acquisitions		4,272		–
Foreign currency translation adjustments		64		7,182
Balance, June 30	$	360,993	$	320,411

20

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The gross cost and accumulated amortization of other intangible assets as of June 30, 2012 and December 31, 2011, by major intangible asset category, are as follows:

	June 30, 2012						December 31, 2011
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	30,740	$	8,510	$	22,230	$	30,740	$	7,122	$	23,618
Management fees, customer relationships and non-compete agreements		33,035		22,090		10,945		32,624		19,800		12,824
Total	$	63,775	$	30,600	$	33,175	$	63,364	$	26,922	$	36,442

Amortization expense of intangible assets for the three month and six month periods ended June 30, 2012 was $2,560 and $3,678, respectively, and for the three month and six month periods ended June 30, 2011 was $1,706 and $3,180, respectively. Estimated future amortization expense is as follows:

Year Ending December 31,	Future Amortization Expense (a)
2012 (July 1 through December 31)	$	2,641
2013		9,372
2014		8,901
2015		6,953
2016		5,308
Total	$	33,175

(a) Approximately 45% of intangible asset amortization is attributable to a noncontrolling interest.

10. SENIOR DEBT

Senior debt is comprised of the following as of June 30, 2012 and December 31, 2011:

	Initial Principal Amount				Annual Interest Rate			Outstanding As Of
			Maturity Date					June 30, 2012		December 31, 2011
Lazard Group 7.125% Senior Notes	$	550,000		5/15/15		7.125	%	$	528,500	$	528,500
Lazard Group 6.85% Senior Notes		600,000		6/15/17		6.85	%		548,350		548,350
Lazard Group Credit Facility		150,000		4/29/13		1.92	%		–		–
Total								$	1,076,850	$	1,076,850

Lazard Group has in place a $150,000, three-year senior revolving credit facility with a group of lenders (the “Credit Facility”), which expires in April, 2013. Interest rates under the Credit Facility vary and are based on either a Federal Funds rate or a Eurodollar rate, in each case plus an applicable margin. As of June 30, 2012, the annual interest rate for a loan accruing interest (based on the Federal Funds overnight rate), including the applicable margin, was 1.92%. At June 30, 2012 and December 31, 2011, no amounts were outstanding under the Credit Facility.

21

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The Credit Facility, as amended, contains customary terms and conditions, including certain financial covenants. In addition, the Credit Facility, as well as the indenture and the supplemental indentures relating to Lazard Group’s senior notes, contain certain covenants, events of default and other customary provisions, including, where applicable, a customary make-whole provision in the event of early redemption. As of June 30, 2012, the Company was in compliance with all of these provisions. All of the Company’s senior debt obligations are unsecured.

As of June 30, 2012, the Company had approximately $299,000 in unused lines of credit available to it, including the Credit Facility, and unused lines of credit available to LFB of approximately $88,000 (at June 30, 2012, exchange rates) and Edgewater of $55,000. In addition, LFB has access to the Eurosystem Covered Bond Purchase Program of the Banque de France.

The Company’s senior debt at June 30, 2012 and December 31, 2011 is recorded at historical amounts. At those dates, the fair value of such senior debt outstanding was approximately $1,186,000 and $1,138,000, respectively, and exceeded the aggregate carrying value by approximately $109,000 and $61,000, respectively. The fair value of the Company’s senior debt was estimated using a discounted cash flow analysis based on the Company’s current borrowing rates for similar types of borrowing arrangements or based on market quotations, where available. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

11. COMMITMENTS AND CONTINGENCIES

Leases—The Company has various leases and other contractual commitments arising in the ordinary course of business. In the opinion of management, the fulfillment of such commitments, in accordance with their terms, will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

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 June 30, 2012, LFB had approximately $5,000 of such indemnifications and held approximately $4,000 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 consolidated statement of financial condition.

Other Commitments—In the normal course of business, LFB enters into commitments to extend credit, predominately at variable interest rates. Such commitments at June 30, 2012 aggregated approximately $22,000. These commitments have varying expiration dates and are fully collateralized and generally contain requirements for the counterparty to maintain a minimum collateral level. These commitments may not represent future cash requirements as they may expire without being drawn upon.

See Notes 5, 7 and 14 of Notes to Condensed Consolidated Financial Statements for information regarding commitments relating to investment capital funding commitments, business acquisitions and obligations to fund our pension plans, respectively.

The Company has various other contractual commitments arising in the ordinary course of business. In addition, from time to time, LFB enters into underwriting commitments in which it participates as a joint underwriter. The settlement of such transactions are not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations. At June 30, 2012, LFB had no such underwriting commitments.

22

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

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 does experience 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.

12. STOCKHOLDERS’ EQUITY

Lazard Group Distributions—As previously described, Lazard Group’s common membership interests are held by subsidiaries of Lazard Ltd and by LAZ-MD Holdings. Pursuant to provisions of the Operating Agreement, Lazard Group distributions in respect of its common membership interests are allocated to the holders of such interests on a pro rata basis. Such distributions 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 and the members of LAZ-MD Holdings incur as a result of holding Lazard Group common membership interests.

During the six month periods ended June 30, 2012 and 2011, Lazard Group distributed the following amounts to LAZ-MD Holdings and the subsidiaries of Lazard Ltd (none of which related to tax distributions):

	Six Months Ended June 30,
	2012		2011
LAZ-MD Holdings	$	2,416	$	2,174
Subsidiaries of Lazard Ltd		43,011		32,855
Total	$	45,427	$	35,029

Pursuant to the 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.

Exchange of Lazard Group Common Membership Interests— During the six month periods ended June 30, 2012 and 2011, Lazard Ltd issued 186,701 and 728,385 shares of Class A common stock, respectively, in connection with the exchange of a like number of Lazard Group common membership interests (received from members of LAZ-MD Holdings in exchange for a like number of LAZ-MD Holdings exchangeable interests).

See “Noncontrolling Interests” below for additional information regarding Lazard Ltd’s and LAZ-MD Holdings’ ownership interests in Lazard Group.

Share Repurchase Program—In February 2011, October 2011 and April 2012, the Board of Directors of Lazard Ltd authorized, on a cumulative basis, the repurchase of up to $250,000, $125,000 and $125,000, respectively, in aggregate cost of Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013 and December 31, 2013, respectively. The Company’s prior

23

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

share repurchase authorizations expired on December 31, 2009 and December 31, 2011. The Company expects that the share repurchase program, with respect to the Class A common stock, will continue to be used, among other ways, to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2005 Equity Incentive Plan (the “2005 Plan”) and the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”). Pursuant to such authorizations, purchases have been made in the open market or through privately negotiated transactions. During the six month period ended June 30, 2012, the Company purchased 5,706,592 shares of Class A common stock, at an aggregate cost of $152,413 (no Lazard Group common membership interests were purchased during such six month period).

As of June 30, 2012, $184,730 of the current aggregate share repurchase amount authorized as of such date remained available under the share repurchase program, all of which expires on December 31, 2013. In addition, under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of restricted stock units (“RSUs”), shares of Class A common stock may be withheld by the Company to cover the recipient’s estimated income tax liability (see Note 13 of Notes to Condensed Consolidated Financial Statements).

During the first half of 2012, the Company had written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 in place, pursuant to which it effected stock repurchases through the open market.

Preferred Stock—Lazard Ltd has 15,000,000 authorized shares of preferred stock, par value $0.01 per share, inclusive of its Series A preferred stock and Series B preferred stock. The Series A and Series B preferred shares are each non-participating securities that are or were each convertible into Class A common stock, and have no voting or dividend rights. As of both June 30, 2012 and December 31, 2011, 7,921 shares of Series A preferred stock were outstanding, and no shares of Series B preferred stock were outstanding at such respective dates.

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The components of AOCI at June 30, 2012 and December 31, 2011 are as follows:

	June 30,			December 31,
	2012			2011
Currency translation adjustments	$	1,765		$	3,719
Interest rate hedge		(3,030	)		(3,557	)
Employee benefit plans		(97,050	)		(92,637	)
Total AOCI		(98,315	)		(92,475	)
Less amount attributable to noncontrolling interests		(4,144	)		(4,111	)
Total Lazard Ltd AOCI	$	(94,171	)	$	(88,364	)

Noncontrolling Interests—Noncontrolling interests principally represent interests held in (i) Lazard Group by LAZ-MD Holdings and (ii) Edgewater’s management vehicles that the Company is deemed to control, but does not own.

As of June 30, 2012 and December 31, 2011, LAZ-MD Holdings held approximately 5.1% and 5.2%, respectively, of the outstanding Lazard Group common membership interests. Subject to certain limitations, LAZ-MD Holdings’ interests in Lazard Group are exchangeable for Class A common stock.

24

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The following tables summarize the changes in ownership interests in Lazard Group held by Lazard Ltd and LAZ-MD Holdings during the six month periods ended June 30, 2012, and 2011:

	Lazard Ltd					LAZ-MD Holdings						Total Lazard Group Common Membership Interests
	Common Membership Interests		% Ownership			Common Membership Interests			% Ownership
Balance, January 1, 2011		119,697,936		94.0	%		7,652,625			6.0	%		127,350,561
Activity January 1, 2011 to June 30, 2011:
Common membership interest activity in connection with:
Exchanges for Class A common stock		728,385					(728,385	)					–
Repurchase of common membership interests from LAZ-MD Holdings		–					(19,032	)					(19,032	)
Balance, June 30, 2011		120,426,321		94.6	%		6,905,208			5.4	%		127,331,529
Balance, January 1, 2012		123,009,311		94.8	%		6,756,779			5.2	%		129,766,090
Activity January 1, 2012 to June 30, 2012:
Common membership interest activity in connection with:
Exchanges for Class A common stock		186,701					(186,701)						–
Balance, June 30, 2012		123,196,012		94.9	%		6,570,078			5.1	%		129,766,090

The change in Lazard Ltd’s ownership in Lazard Group in the six month periods ended June 30, 2012 and 2011 did not materially impact Lazard Ltd’s stockholders’ equity.

The tables below summarize net income attributable to noncontrolling interests for the three month and six month periods ended June 30, 2012 and 2011 and noncontrolling interests as of June 30, 2012 and December 31, 2011 in the Company’s accompanying condensed consolidated financial statements:

	Net Income (Loss) Attributable To Noncontrolling Interests
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
LAZ-MD Holdings		$1,694		$	4,012		$	3,019		$	7,746
Edgewater		1,698			5,882			3,872			6,905
Other		(51	)		(332	)		(46	)		(113	)
Total		$3,341		$	9,562		$	6,845		$	14,538

	Noncontrolling Interests As Of
	June 30, 2012		December 31, 2011
LAZ-MD Holdings	$	34,506	$	31,954
Edgewater		86,235		91,713
Other		1,242		17,046
Total	$	121,983	$	140,713

25

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

Dividend Declared, July, 2012—On July 25, 2012, the Board of Directors of Lazard Ltd declared a quarterly dividend of $0.20 per share on its Class A common stock, payable on August 24, 2012, to stockholders of record on August 6, 2012.

13. INCENTIVE PLANS

Share-Based Incentive Plan Awards

A description of Lazard Ltd’s 2005 Plan and 2008 Plan and activity with respect thereto during the six month periods ended June 30, 2012 and 2011 is presented below.

Shares Available Under the 2005 Plan and 2008 Plan

The 2005 Plan authorizes 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, restricted stock, restricted stock units and other equity-based awards. Each stock unit or similar award granted under the 2005 Plan represents a contingent right to receive one share of Class A common stock, at no cost to the recipient. The fair value of such awards is generally determined based on the closing market price of Class A common stock on the day prior to the date of grant.

In addition to the shares available under the 2005 Plan, additional shares of Class A common stock are available under the 2008 Plan. The maximum number of shares available under the 2008 Plan is based on a formula that limits the aggregate number of shares that may, at any time, be subject to awards that are considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock (treating, for this purpose, the then-outstanding exchangeable interests of LAZ-MD Holdings on a “fully-exchanged” basis as described in the 2008 Plan).

The following is a summary of the impact of share-based incentive plans on “compensation and benefits” expense within the Company’s accompanying condensed consolidated statements of operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Share-based incentive compensation:
RSUs		$63,428	$	57,552		$145,319	$	142,410
Deferred stock units (“DSUs”)		1,218		1,068		1,288		1,124
Restricted stock		1,704		356		5,879		8,999
Total		$66,350	$	58,976		$152,486	$	152,533

The Company’s incentive plans are described below.

Restricted and Deferred Stock Units

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 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, and, for purposes of calculating diluted net income per share, RSUs are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method.

26

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

RSUs issued subsequent to December 31, 2005 generally include a dividend participation right that provides that during vesting periods each RSU is attributed additional RSUs (or fractions thereof) equivalent to any ordinary quarterly dividends paid on Class A common stock during such period. During the six month periods ended June 30, 2012 and 2011, issuances of RSUs pertaining to such dividend participation rights and respective charges to “retained earnings”, net of estimated forfeitures (with corresponding credits to “additional paid-in-capital”) consisted of the following:

	Six Months Ended June 30,
	2012		2011
Number of RSUs issued		310,756		140,613
Charges to retained earnings, net of estimated forfeitures		$7,277		$5,337

Non-Executive members of the Board of 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 49,735 and 26,859 DSUs granted during the six month periods ended June 30, 2012 and 2011, respectively. Their remaining compensation is payable in cash, which they may elect to receive in the form of additional DSUs under the Director’s Fee Deferral Unit Plan described below. DSUs are convertible into Class A common stock at the time of cessation of service to the Board, and, for purposes of calculating diluted net income per share, are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. DSUs include a cash dividend participation right equivalent to any ordinary quarterly dividends paid on Class A common stock, and resulted in nominal cash payments for the six month periods ended June 30, 2012 and 2011.

On May 9, 2006, the Board of Directors adopted the Directors’ Fee Deferral Unit Plan, which allows the Company’s Non-Executive Directors to elect to receive additional DSUs pursuant to the 2005 Plan in lieu of some or all of their cash fees. The number of DSUs that will be 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 on which the foregone cash fees would otherwise have been paid. During the six month periods ended June 30, 2012 and 2011, 5,489 and 2,942 DSUs, respectively, had been granted pursuant to such Plan.

DSU awards are expensed at their fair value on their date of grant, inclusive of amounts related to the Directors’ Fee Deferral Unit Plan.

27

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The following is a summary of activity relating to RSUs and DSUs during the six month periods ended June 30, 2012 and 2011:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units			Weighted Average Grant Date Fair Value
Balance, January 1, 2012		20,751,829		$	36.84		140,660		$	34.83
Granted (including 310,756 RSUs relating to dividend participation)		7,847,541		$	27.51		55,224		$	23.32
Forfeited		(311,601	)	$	35.46		–			–
Vested		(3,631,932	)	$	33.83		–			–
Balance, June 30, 2012		24,655,837		$	34.32		195,884		$	31.58
Balance January 1, 2011		22,108,635		$	35.67		121,737		$	34.46
Granted (including 140,613 RSUs relating to dividend participation)		6,309,310		$	44.93		29,801		$	37.72
Forfeited		(223,365	)	$	37.90		–			–
Vested		(7,616,386	)	$	39.21		(16,120	)	$	34.76
Balance, June 30, 2011		20,578,194		$	37.18		135,418		$	35.14

In connection with RSUs which vested during the six month periods ended June 30, 2012 and 2011, the Company satisfied certain employees’ tax obligations in lieu of issuing 967,828 and 2,226,829 shares of Class A common stock in the respective six month periods. Accordingly, 2,664,104 and 5,389,557 shares of Class A common stock held by the Company were delivered during the six month periods ended June 30, 2012 and 2011, respectively.

As of June 30, 2012, unrecognized RSU compensation expense, adjusted for estimated forfeitures, was approximately $311,000, with such unrecognized compensation expense expected to be recognized over a weighted average period of approximately 1.4 years subsequent to June 30, 2012. The ultimate amount of such expense is dependent upon the actual number of RSUs that vest. The Company periodically assesses the forfeiture rates used for such estimates. A change in estimated forfeiture rates would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described herein.

28

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

Restricted Stock

The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the six month periods ended June 30, 2012 and 2011:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2012		95,332		$	37.63
Granted/Exchanged		577,323		$	29.25
Forfeited		(18,921	)	$	29.51
Vested		(131,743	)	$	28.63
Balance, June 30, 2012		521,991		$	30.93
Balance, January 1, 2011		95,332		$	37.63
Granted		327,238		$	43.70
Vested		(327,238	)	$	43.70
Balance, June 30, 2011		95,332		$	37.63

In connection with shares of restricted Class A common stock that vested during the six month periods ended June 30, 2012 and 2011, the Company satisfied certain employees’ tax obligations in lieu of delivering 28,129 and 68,866 shares of Class A common stock during the respective periods. Accordingly, 103,614 and 258,372 shares of Class A common stock held by the Company were delivered during the respective six month periods.

The awards include a cash dividend participation right equivalent to any ordinary quarterly dividends paid on Class A common stock during the period, which will vest concurrently with the underlying restricted stock award. At June 30, 2012, unrecognized restricted stock expense was approximately $10,000, with such expense to be recognized over a weighted average period of approximately 1.9 years subsequent to June 30, 2012.

For purposes of calculating diluted net income per share, such awards are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method.

Lazard Fund Interests and Other Similar Deferred Compensation Arrangements

Commencing in February 2011, the Company granted to eligible employees Lazard Fund Interests. In connection with the Lazard Fund Interests 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, and is charged to “compensation and benefits” expense within the Company’s consolidated statement of operations. Lazard Fund Interests 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. Such changes in the fair value of the derivative liability are recorded to “compensation and benefits” expense within the Company’s consolidated statements of operations,

29

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

the impact of which equally offsets the changes in fair value of investments which are currently expected to be delivered upon settlement of Lazard Fund Interests awards, which is reported in “revenue-other” in the consolidated statement of operations (see Note 6 of Notes to Condensed Consolidated Financial Statements).

The following is a summary of activity relating to Lazard Fund Interests and other similar deferred compensation arrangements during the six month period ended June 30, 2012:

	Prepaid Compensation Asset			Compensation   Liability
Balance, January 1, 2012	$	17,782		$	29,900
Granted		64,631			64,631
Settled		–			(8,641)
Forfeited		(1,008)			(993)
Amortization (including grants of awards to retirement-eligible recipients)		(16,985	)		–
Decrease in fair value		–			(89	)
Other		979			833
Balance, June 30, 2012	$	65,399		$	85,641

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 2.1 years subsequent to June 30, 2012.

The following is a summary of the impact of Lazard Fund Interests and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three and six month periods ended June 30, 2012 and 2011:

	Three Months Ended June  30,					Six Months Ended June 30,
	2012			2011		2012			2011
Amortization (including grants of awards to retirement-eligible recipients)		$10,800			$2,413		$16,985			$5,054
Change in fair value of compensation liability		(2,856	)		–		(89	)		–
Total		$7,944			$2,413		$16,896			$5,054

14. EMPLOYEE BENEFIT PLANS

The Company provides retirement and other post-retirement benefits to certain of its employees through defined contribution and defined benefit pension plans and other post-retirement plans. These plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense on the consolidated statements of operations.

Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ Trustees.

30

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

Management also evaluates from time to time whether to make voluntary contributions to the plans. The Company made a contribution to the U.S. pension plans during the six month period ended June 30, 2012 of approximately $700.

On April 30, 2012, the Company and the Trustees of the U.K. pension plans concluded the December 31, 2010 triennial valuations of the plans. In connection with such valuations and a previously negotiated agreement with the Trustees, the Company and the Trustees agreed upon pension funding terms (the “agreement”) (which superseded the terms of an agreement reached in June 2009 with respect to the previous triennial valuation as of December 31, 2007) whereby the Company: (i) made a contribution in December 2011 to the plans of 2.3 million British pounds ($3,687 at December 31, 2011 exchange rates) from a previously established escrow account, (ii) will make contributions of 1 million British pounds during each year from 2012 through 2020 inclusive and (iii) amended the previous escrow arrangement into an account security arrangement covering 10.2 million British pounds, committing to make annual contributions of 1 million British pounds into such account security arrangement during each year from 2014 through 2020. It was further agreed that, to the extent that the value of the plans’ assets falls short of the funding target for June 1, 2020 that has been agreed upon with the Trustees, the assets from the account security arrangement would be released into the plans at that date. Additionally, the Company agreed to fund the expenses of administering the plans, including certain regulator levies and the cost of other professional advisors to the plans. The terms of the agreement are subject to adjustment based on the results of subsequent triennial valuations. The aggregate amount in the account security arrangement at June 30, 2012 of approximately $16,000 has been recorded in “cash deposited with clearing organizations and other segregated cash” on the accompanying condensed consolidated statement of financial condition. Income on the escrow balance accretes to the Company and is recorded in interest income.

During the six month period ended June 30, 2012, the Company contributed 1 million British pounds ($1,576 at June 30, 2012 exchange rates) to these U.K. pension plans, and no contributions were made to other non-U.S. pension plans.

31

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The following table summarizes the components of net periodic benefit cost for the three month and six month periods ended June 30, 2012 and 2011:

	Pension Plans						Post-Retirement Medical Plans
	Three Months Ended June 30,
	2012			2011			2012		2011
Components of Net Periodic Benefit Cost:
Service cost	$	166		$	169		$	19	$	19
Interest cost		6,885			7,092			52		69
Expected return on plan assets		(6,622	)		(7,644	)		–		–
Amortization of:
Prior service cost		687			762			–		–
Net actuarial loss		420			66			–		–
Settlement loss (a)		886			–			–		–
Net periodic benefit cost	$	2,422		$	445		$	71	$	88

	Pension Plans						Post-Retirement Medical Plans
	Six Months Ended June 30,
	2012			2011			2012		2011
Components of Net Periodic Benefit Cost:
Service cost	$	338		$	332		$	30	$	34
Interest cost		13,787			14,159			105		139
Expected return on plan assets		(13,294	)		(15,266	)		–		–
Amortization of:
Prior service cost		1,388			1,502			–		–
Net actuarial loss		831			129			–		–
Settlement loss (a)		886			–			–		–
Net periodic benefit cost	$	3,936		$	856		$	135	$	173

(a) During the three month period ended June 30, 2012, the Company’s pension plans in the U.S. made lump sum benefit payments in excess of the plans’ annual service and interest costs, which, under U.S. GAAP, requires that the plans’ obligations and assets be remeasured. The remeasurement of the plans resulted in the recognition of actuarial losses totaling $1,935 recorded in “other comprehensive income (loss), net of tax” (“OCI”), which, combined with a settlement loss of $886 recognized in “compensation and benefits” expense, resulted in a net charge to OCI of $1,049.

15. INCOME TAXES

As a result of its indirect investment in Lazard Group, Lazard Ltd, through certain of its subsidiaries, is subject to U.S. federal income taxes on its portion of Lazard Group’s operating income. 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. In addition, Lazard Group is subject to New York City Unincorporated Business Tax (“UBT”) which is attributable to Lazard Group’s operations apportioned to New York City. UBT is incremental to the U.S. federal statutory tax rate. Outside the U.S., Lazard Group operates principally through subsidiary corporations that are subject to local income taxes.

32

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

The Company recorded income tax provisions of $10,371 and $19,138 for the three month and six month periods ended June 30, 2012, respectively, and $17,636 and $31,099 for the three month and six month periods ended June 30, 2011, respectively, representing effective tax rates of 23.3%, 23.2%, 19.8% and 19.1%, respectively. The difference between the U.S. federal statutory rate of 35.0% 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) foreign source income (loss) not subject to U.S. income taxes, (iii) Lazard Group’s income from U.S. operations attributable to noncontrolling interests and (iv) U.S. state and local taxes (primarily UBT), which are incremental to the U.S. federal statutory tax rate.

Substantially all of Lazard’s foreign operations are conducted in “pass-through” entities for U.S. income tax purposes and the Company provides for U.S. income taxes on a current basis for substantially all of those earnings. The repatriation of prior earnings attributable to “non-pass-through” entities would not result in the recognition of a material amount of additional U.S. income taxes.

Tax Receivable Agreement

The redemption of historical partner interests in connection with the Company’s separation and recapitalization that occurred in May 2005 and subsequent exchanges of LAZ-MD Holdings exchangeable interests for shares of Class A common stock have resulted, and future exchanges of LAZ-MD Holdings exchangeable interests for shares of Class A common stock may result, in increases in the tax basis of the tangible and intangible assets of Lazard Group. The tax receivable agreement dated as of May 10, 2005 with LFCM Holdings LLC (“LFCM Holdings”) requires the Company to pay LFCM Holdings 85% of the cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes as a result of the above-mentioned increases in tax basis. The Company calculates this provision annually and includes such amounts in operating expenses on its consolidated statements of operations once the results of operations for the full year are known. As a result, there is no provision for such payments in the six month periods ended June 30, 2012 and 2011. If any provision is required pursuant to the tax receivable agreement, such amount would be fully offset by a reduction in the Company’s income tax expense.

16. NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company’s basic and diluted net income per share calculations for the three month and six month periods ended June 30, 2012 and 2011 are computed as described below.

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods, plus applicable adjustments to such net income associated with the inclusion of shares of Class A common stock issuable on a non-contingent basis.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods, plus applicable adjustments to such shares associated with shares of Class A common stock issuable on a non-contingent basis.

Diluted Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods as in the basic net income per share calculation described above, plus, to the extent applicable and dilutive, (i) interest expense on convertible debt, (ii) changes in net income attributable to noncontrolling interests resulting from assumed Class

33

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

A common stock issuances in connection with share-based incentive compensation, convertible debt and convertible preferred stock and, on an “as-if-exchanged” basis, amounts applicable to LAZ-MD Holdings exchangeable interests and (iii) income tax related to (i) and (ii) above.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock to settle share-based incentive compensation, convertible debt, convertible preferred stock and LAZ-MD Holdings exchangeable interests, using the “treasury stock” method, the “if converted” method or the “as-if-exchanged” basis, as applicable.

The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month and six month periods ended June 30, 2012 and 2011 are presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net income attributable to Lazard Ltd		$30,821		$62,004		$56,373		$117,011
Add - adjustment associated with Class A common stock issuable on a non-contingent basis		2		103		2		199
Net income attributable to Lazard Ltd - basic		30,823		62,107		56,375		117,210
Add - dilutive effect, as applicable, of:
Adjustments to income relating to interest expense and changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests, net of tax		1,686		4,649		2,876		9,074
Net income attributable to Lazard Ltd - diluted		$32,509		$66,756		$59,251		$126,284
Weighted average number of shares of Class A common stock outstanding		117,478,380		115,326,051		118,079,120		113,503,750
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		756,940		3,781,335		653,311		3,717,320
Weighted average number of shares of Class A common stock outstanding - basic		118,235,320		119,107,386		118,732,431		117,221,070
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests		16,401,615		20,240,547		16,883,126		21,748,193
Weighted average number of shares of Class A common stock outstanding - diluted		134,636,935		139,347,933		135,615,557		138,969,263
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.26		$0.52		$0.47		$1.00
Diluted		$0.24		$0.48		$0.44		$0.91

34

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

17. RELATED PARTIES

Amounts receivable from, and payable to, related parties are set forth below:

	June 30, 2012		December 31, 2011
Receivables
LFCM Holdings		$10,416		$14,790
Other		3,686		3,711
Total		$14,102		$18,501
Payables
LFCM Holdings		$  6,189		$  4,850
Other		891		1,225
Total		$  7,080		$  6,075

LFCM Holdings

LFCM Holdings owns and operates the capital markets business and fund management activities, as well as other specified non-operating assets and liabilities, that were transferred to it by Lazard Group (referred to as the “separated businesses”) in May 2005 and is owned by various current and former working members, including certain of Lazard’s current and former managing directors (which also include the Company’s executive officers) who were or are also members of LAZ-MD Holdings. In addition to the master separation agreement dated as of May 10, 2005, by and among Lazard Ltd, Lazard Group, LAZ-MD Holdings and LFCM Holdings (the “master separation agreement”), which effected the separation and recapitalization that occurred in May 2005, LFCM Holdings entered into certain agreements that addressed various business matters associated with the separation, including agreements related to administrative and support services (the “administrative services agreement”), employee benefits, insurance matters and licensing. In addition, LFCM Holdings and Lazard Group entered into a business alliance agreement (the “business alliance agreement”). Certain of these agreements are described in more detail in the Company’s Form 10-K.

For the three month and six month periods ended June 30, 2012, amounts recorded by Lazard Group relating to the administrative services agreement amounted to $702 and $1,515, respectively, and net referral fees for underwriting, private placement, M&A and restructuring transactions under the business alliance agreement amounted to $3,552 and $4,366, respectively. For the three month and six month periods ended June 30, 2011, amounts recorded by Lazard Group relating to the administrative services agreement amounted to $578 and $1,192, respectively, and net referral fees for underwriting, private placement, M&A and restructuring transactions under the business alliance agreement amounted to $6,200 and $13,147, respectively. Amounts relating to the administrative services agreement are reported as reductions to operating expenses. Net referral fees for underwriting transactions under the business alliance agreement are reported in “revenue-other”. Net referral fees for private placement, M&A and restructuring transactions under the business alliance agreement are reported in advisory fee revenue.

Receivables from LFCM Holdings and its subsidiaries as of June 30, 2012 and December 31, 2011 include $3,825 and $11,862, respectively, related to administrative and support services, and other receivables which include sublease income and reimbursement of expenses incurred on behalf of LFCM Holdings, and $6,591 and

35

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

$2,928, respectively, related to referral fees for underwriting and private placement transactions. Payables to LFCM Holdings and its subsidiaries at June 30, 2012 and December 31, 2011 consist of $6,189 and $2,060, respectively, principally relating to certain advances and referral fees for Financial Advisory transactions and, at December 31, 2011, obligations pursuant to the tax receivable agreement of $2,790 (see Note 15 of Notes to Condensed Consolidated Financial Statements).

Other

Other receivables and payables at June 30, 2012 and December 31, 2011 primarily relate to referral fees for restructuring and M&A transactions with MBA Lazard Holdings S.A. and its affiliates, an Argentina-based group in which the Company has a 50% ownership interest, and a related party loan.

LAZ-MD Holdings

Lazard Group provides selected administrative and support services to LAZ-MD Holdings through the administrative services agreement as discussed above, with such services generally to be provided until December 31, 2014 unless terminated earlier because of a change in control of either party. Lazard Group charges LAZ-MD Holdings for these services based on Lazard Group’s cost allocation methodology and, for the three month and six month periods ended June 30, 2012, such charges amounted to $187 and $375, respectively. For the three month and six month periods ended June 30, 2011, such charges amounted to $187 and $375, respectively.

18. 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 of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $100, whichever is greater. At June 30, 2012, LFNY’s regulatory net capital was $74,299, which exceeded the minimum requirement by $68,933.

Certain U.K. subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (the “U.K. Subsidiaries”) are regulated by the Financial Services Authority. At June 30, 2012, the aggregate regulatory net capital of the U.K. Subsidiaries was $130,437, which exceeded the minimum requirement by $106,893.

CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel for its banking activities conducted through its subsidiary, LFB. In addition, the investment services activities of the Paris group, exercised through LFB and other subsidiaries of CFLF, primarily LFG (asset management), are subject to regulation and supervision by the Autorité des Marchés Financiers. At June 30, 2012, the consolidated regulatory net capital of CFLF was $168,117, which exceeded the minimum requirement set for regulatory capital levels by $75,989.

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 June 30, 2012, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $107,826, which exceeded the minimum required capital by an aggregate of $84,178.

At June 30, 2012, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

36

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

Lazard Ltd had been subject to supervision by the SEC as a Supervised Investment Bank Holding Company (“SIBHC”). As a SIBHC, Lazard Ltd was subject to group-wide supervision, which required it to compute allowable capital and risk allowances on a consolidated basis. However, pursuant to Section 617 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the SEC’s SIBHC program was eliminated on July 21, 2011. Pursuant to relevant rules in the European Union, Lazard Ltd is required to be supervised by another regulatory body, either in the U.S., by the Board of Governors of the Federal Reserve, or the European Union, which we are examining. The Dodd-Frank Act and the rules and regulations that may be adopted thereunder (including regulations that have not yet been proposed) could have other effects on us. We continue to monitor the process as such rules are proposed and adopted.

19. 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 two business segments as described in Note 1 above - Financial Advisory and Asset Management. In addition, as described in Note 1 above, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month and six month periods ended June 30, 2012 and 2011 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 revenue, 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, legal, facilities management and senior management activities.

37

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

(dollars in thousands, except for per share data, unless otherwise noted)

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 June 30,						Six Months Ended June 30,
		2012			2011			2012			2011
Financial Advisory
	Net Revenue	$	242,624		$	249,191		$	519,820		$	478,036
	Operating Expenses		231,200			214,217			481,097			427,783
	Operating Income	$	11,424		$	34,974		$	38,723		$	50,253
Asset Management
	Net Revenue	$	211,053		$	244,855		$	425,580		$	471,708
	Operating Expenses		156,619			160,914			317,120			310,118
	Operating Income	$	54,434		$	83,941		$	108,460		$	161,590
Corporate
	Net Revenue	$	(16,767	)	$	(16,754	)	$	(22,451	)	$	(34,429	)
	Operating Expenses		4,558			12,959			42,376			14,766
	Operating Loss	$	(21,325	)	$	(29,713	)	$	(64,827	)	$	(49,195	)
Total
	Net Revenue	$	436,910		$	477,292		$	922,949		$	915,315
	Operating Expenses		392,377			388,090			840,593			752,667
	Operating Income	$	44,533		$	89,202		$	82,356		$	162,648

	As Of
	June 30, 2012		December 31, 2011
Total Assets
Financial Advisory	$	747,456	$	767,699
Asset Management		491,239		583,524
Corporate		1,739,159		1,730,713
Total	$	2,977,854	$	3,081,936

38

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with Lazard Ltd’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (the “Form 10-Q”), as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in our Annual Report on Form 10-K for the year ended December 31, 2011 (the “Form 10-K”). All references to “2012”, “2011”, “second quarter”, “first half” or “the period” refer to, as the context requires, the three month and six month periods ended June 30, 2012 and June 30, 2011.

Forward-Looking Statements and Certain Factors that May Affect Our Business

Management has included in Parts I and II of this Form 10-Q, including in its MD&A, statements that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to, those discussed in our Form 10-K under the caption “Risk Factors,” including the following:

• a decline in general economic conditions or the global financial markets,

• losses caused by financial or other problems experienced by third parties,

• losses due to unidentified or unanticipated risks,

• a lack of liquidity, i.e., ready access to funds, for use in our businesses, and

• competitive pressure on our businesses and on our ability to retain our employees.

These risks and uncertainties are not exhaustive. Other sections of the Form 10-K may include additional factors, which could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this Form 10-Q to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Forward-looking statements include, but are not limited to, statements about the:

• business’ financial goals, including the ratio of awarded compensation and benefits expense to operating revenue,

• business’ ability to deploy surplus cash through dividends, share repurchases and debt repurchases,

• business’ ability to offset stockholder dilution through share repurchases,

• business’ possible or assumed future results of operations and operating cash flows,

39

• business’ strategies and investment policies,

• business’ financing plans and the availability of short-term borrowing,

• business’ competitive position,

• future acquisitions, including the consideration to be paid and the timing of consummation,

• potential growth opportunities available to our businesses,

• recruitment and retention of our managing directors and employees,

• potential levels of compensation expense,

• business’ potential operating performance, achievements, productivity improvements, efficiency and cost reduction efforts,

• likelihood of success and impact of litigation,

• expected tax rates,

• changes in interest and tax rates,

• expectations with respect to the economy, securities markets, the market for mergers, acquisitions and strategic advisory and restructuring activity, the market for asset management activity and other macroeconomic and industry trends,

• effects of competition on our business, and

• impact of future legislation and regulation on our business.

The Company is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, the Company uses its websites to convey information about our businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management (“AUM”) in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC (“LAM”) and its subsidiaries. Monthly updates of these funds are posted to the LAM website (www.lazardnet.com) on the third business day following the end of each month. Investors can link to Lazard Ltd, Lazard Group and their operating company websites through http://www.lazard.com. Our websites and the information contained therein or connected thereto shall not be deemed to be incorporated into this Form 10-Q.

Business Summary

Lazard is a preeminent financial advisory and asset management firm. We have long specialized in crafting solutions to the complex financial and strategic challenges of a diverse set of clients around the world, including corporations, governments, institutions, partnerships and individuals. Founded in 1848 in New Orleans, we currently operate from 42 cities in key business and financial centers across 27 countries throughout Europe, North America, Asia, Australia, the Middle East and Central and South America.

Our primary business purpose is to serve our clients. Our deep roots in business centers around the world form a global network of relationships with key decision-makers in corporations, governments and investing institutions. This network is both a competitive strength and a powerful resource for Lazard and our clients. As a firm that competes on the quality of our advice, we have two fundamental assets: our people and our reputation.

We operate in cyclical businesses across multiple geographies, industries and asset classes. In recent years, we have expanded our geographic reach, bolstered our industry expertise and continued to build in growth areas. Companies, government bodies and investors seek independent advice with a geographic perspective, deep understanding of capital structure, informed research and knowledge of global economic conditions. We believe that our business model as an independent advisor will continue to create opportunities for us to attract new clients and key personnel.

40

Our principal sources of revenue are derived from activities in the following business segments:

• Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding mergers and acquisitions (“M&A”) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters, and

• Asset Management, which offers a broad range of investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients globally.

In addition, we record selected other activities in our Corporate segment, including management of cash, certain investments and the commercial banking activities of Lazard Group’s Paris-based Lazard Frères Banque SA (“LFB”). We also record outstanding indebtedness in our Corporate segment.

LFB is a registered bank regulated by the Autorité de Contrôle Prudentiel. It is engaged primarily in commercial and private banking services for clients and funds managed by Lazard Frères Gestion SAS (“LFG”) and other clients, investment banking activities, including participation in underwritten offerings of securities in France, asset-liability management and limited trading in securities and foreign exchange.

Our consolidated net revenue was derived by our segments as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Financial Advisory		56	%		52	%		56	%		52	%
Asset Management		48			51			46			52
Corporate		(4	)		(3	)		(2	)		(4	)
Total		100	%		100	%		100	%		100	%

We also invest our own capital from time to time, generally alongside capital of qualified institutional and individual investors in alternative investments or private equity investments, and, since 2005, we have engaged in a number of alternative investments and private equity activities, including investments through (i) the Edgewater Funds (“Edgewater”), our Chicago-based private equity firm, (ii) Lazard Australia Corporate Opportunities Fund 2 (“COF 2”) which has an opportunistic investment strategy focused on the Australian mid-market, (iii) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies, (iv) Corporate Partners II Limited (“CP II”), a private equity fund targeting significant non-controlling investments in established public and private companies and (v) Lazard Senior Housing Partners LP (“Senior Housing”), which acquires companies and assets in the senior housing, extended stay and shopping center sectors. We may explore and discuss opportunities to expand the scope of our alternative investment and private equity activities in Europe, the U.S. and elsewhere. These opportunities could include internal growth of new funds and direct investments by us, partnerships or strategic relationships, investments with third parties or acquisitions of existing funds or management companies. Also, consistent with our obligations to LFCM Holdings LLC (“LFCM Holdings”), we may explore discrete capital markets opportunities.

Business Environment and Outlook

Economic and global financial market conditions can materially affect our financial performance. As described above, our principal sources of revenue are derived from activities in our Financial Advisory and Asset Management business segments. As our Financial Advisory revenues are for the most part dependent on the successful completion of merger, acquisition, restructuring, capital raising or similar transactions, and our Asset

41

Management revenues are primarily driven by the levels of AUM, weak economic and global financial market conditions can result in a challenging business environment for M&A and capital-raising activity as well as our Asset Management business, but may provide opportunities for our restructuring business.

Overall, global equity market indices at June 30, 2012 generally increased when compared to such indices at December 31, 2011, with declines in the indices during the second quarter of 2012. On an industry-wide basis, during the first half of 2012, capital-raising and M&A activity has generally decreased as compared to the corresponding period in 2011. The announced value and number of global M&A transactions decreased in both the first half and second quarter of 2012 as compared to the corresponding periods in 2011. Restructuring volume declined in the second quarter of 2012, as compared to the corresponding period in 2011, despite an increase in the number of corporate defaults.

In mid-2012, interest rates remain low and corporate cash balances remain high. Macroeconomic conditions remain uncertain, however, especially with respect to Europe. The breadth of our businesses has mitigated the impact of the European financial crisis. Although European M&A activity has declined in the second quarter of 2012 and affected our Financial Advisory business, we believe our market share has risen and other advisory opportunities, including opportunities for our Restructuring, Debt Advisory, Capital Markets Advisory and Sovereign Advisory businesses, have offset the slowdown. In our Asset Management business, most of LAM’s European clients are invested primarily outside of Europe. Those who are invested in Europe are investing primarily in European fixed income, which has not had a significant impact on our Asset Management business. Nonetheless, the business situation in Europe remains challenging.

We intend to leverage our existing infrastructure to capitalize on any global macroeconomic recovery, any upturn in the M&A cycle, and any momentum in the global equity markets. We expect to generate revenue growth by remaining adequately staffed to capitalize on any macroeconomic recovery and deploying our intellectual capital to generate new revenue streams. We also remain focused on expense management. More specifically, with respect to our Financial Advisory and Asset Management businesses, our outlook is described below.

• Financial Advisory – In the near- to mid-term, we expect that the U.S. macroeconomic environment likely will be the strongest of the developed economies. Certain legal decisions in the U.S. reinforce the importance of independent advice, and the global scale and breadth of our Financial Advisory business allows us to advise on large, complex cross-border transactions across a variety of industries. In Europe, we believe our Restructuring, Debt Advisory, Capital Markets Advisory and Sovereign Advisory businesses have positive growth prospects. In addition, we believe our businesses throughout the emerging markets, Japan and Australia position us for growth in these markets, while strengthening and distinguishing our relationships with clients in developed economies.

• Asset Management – Despite turbulent markets, we have recently seen investor demand across regions and investment platforms, though demand may decline if volatility continues. In the short to intermediate term, we expect most of our growth will come from defined benefit and defined contribution plans in the developed economies because of their sheer scope and size. Over the longer term, we expect an increasing share of our AUM to come from the developing economies in Asia, Latin America and the Middle East, as their retirement systems evolve and individual wealth is increasingly deployed in the financial markets. Our global footprint is already well established in the developed economies and we expect our business in the developing economies will continue to expand. Given our globally diversified platform and our ability to provide investment solutions for a global mix of clients, we believe we are positioned to benefit from growth that may occur in the asset management industry. We are continually developing and seeding new investment strategies that extend our existing platforms. Recent examples of growth initiatives include the following investment strategies: Emerging Market Debt, Latin America Equity, Core Emerging Markets, Real Estate and Global Trend.

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We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can we assess the impact of all potentially applicable factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. See the section entitled “Risk Factors” in our Form 10-K. Furthermore, net income and revenue in any period may not be indicative of full-year results or the results of any other period and may vary significantly from year to year and quarter to quarter. Overall, we continue to focus on the development of our business in this environment, including the generation of stable revenue and earnings growth and stockholder returns during periods of macroeconomic volatility, the prudent management of our costs and expenses, the efficient use of our capital and the return of cash to our stockholders.

Certain data with respect to our Financial Advisory and Asset Management businesses are included below.

Financial Advisory

As reflected in the following table, which sets forth industry statistics regarding the value and number of global and Trans-Atlantic completed and announced M&A transactions, for the first half of 2012, the value and number of such transactions generally decreased compared to the corresponding 2011 period, reflecting transactions with lower average values. During the second quarter of 2012, the value and number of completed and announced transactions generally decreased as compared to the corresponding period in 2011.

	Three Months Ended June 30,							Six Months Ended June 30,
	2012		2011		% Incr /  (Decr)			2012		2011		% Incr /  (Decr)
	($ in billions)
Completed M&A Transactions:
Global:
Value	$	635	$	838		(24	)%	$	1,149	$	1,559		(26	)%
Number		9,559		11,428		(16	)%		20,052		22,708		(12	)%
Trans-Atlantic:
Value	$	29	$	92		(68	)%	$	69	$	122		(43	)%
Number		359		409		(12	)%		747		827		(10	)%
Announced M&A Transactions:
Global:
Value	$	597	$	753		(21	)%	$	1,268	$	1,508		(16	)%
Number		10,865		11,438		(5	)%		20,976		22,916		(8	)%
Trans-Atlantic:
Value	$	82	$	62		32	%	$	122	$	118		3	%
Number		424		421		1	%		800		852		(6	)%

Source: Dealogic as of July 11, 2012.

Global restructuring activity during the first half of 2012, as measured by the value of debt defaults, decreased from the corresponding period in 2011. However, the number of issuers defaulting increased to 33 in the first half of 2012, according to Moody’s Investors Service, Inc., as compared to 13 in the corresponding period of 2011, with approximately two-thirds of such activity occurring in the first quarter of each respective year. Our Restructuring activities include advising companies on matters relating to debt restructurings, refinancings and other on- and off-balance sheet assignments, and our assignments are generally executed over a six- to eighteen-month period.

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Asset Management

As shown in the table below, major equity market indices at June 30, 2012 generally increased when compared to such indices at December 31, 2011 and decreased as compared to March 31, 2012. When compared to indices at June 30, 2011, the U.S. markets increased, while global markets and markets outside the U.S. decreased.

	Percentage Changes June 30, 2012 vs.
	March 31, 2012			December 31, 2011			June 30, 2011
MSCI World Index		(5	)%		5	%		(7	)%
CAC 40		(7	)%		1	%		(20	)%
DAX		(8	)%		9	%		(13	)%
FTSE 100		(3	)%		0	%		(7	)%
TOPIX 100		(11	)%		7	%		(12	)%
MSCI Emerging Market		(9	)%		2	%		(18	)%
Dow Jones Industrial Average		(2	)%		5	%		4	%
NASDAQ		(5	)%		13	%		6	%
S&P 500		(3	)%		8	%		3	%

The fees that we receive for providing investment management and advisory services are primarily driven by the level of AUM. Accordingly, since market movements and foreign currency volatility impact the level of our AUM, such items will impact the level of revenues we receive from our Asset Management business. A substantial portion of our AUM is invested in equities, and market movements reflected in the changes in Lazard’s AUM during the period generally reflect the changes in global market indices. Our AUM at June 30, 2012 increased 5% versus AUM at December 31, 2011 (primarily reflecting market appreciation), while our average AUM for the first half of 2012 decreased 6% as compared to our average AUM for the corresponding period of 2011. The lower levels of average AUM contributed to lower management fee revenues in the 2012 period when compared to the corresponding period in 2011.

Financial Statement Overview

Net Revenue

The majority of Lazard’s Financial Advisory net revenue historically has been earned from the successful completion of M&A transactions, strategic advisory matters, restructuring and capital structure advisory services, capital raising and similar transactions. The main drivers of Financial Advisory net revenue are overall M&A activity, the level of corporate debt defaults and the environment for capital raising activities, particularly in the industries and geographic markets in which Lazard focuses. In some client engagements, often those involving financially distressed companies, revenue is earned in the form of retainers and similar fees that are contractually agreed upon with each client for each assignment and are not necessarily linked to the completion of a transaction. In addition, Lazard also earns fees from providing strategic advice to clients, with such fees not being dependent on a specific transaction, and may also earn fees in connection with public and private securities offerings and for referring opportunities to LFCM Holdings for underwriting, distribution and placement of securities. The referral fees received from LFCM Holdings are generally one-half of the revenue recorded by LFCM Holdings in respect of such activities. Significant fluctuations in Financial Advisory net revenue can occur over the course of any given year, because a significant portion of such net revenue is earned upon the successful completion of a transaction, restructuring or capital raising activity, the timing of which is uncertain and is not subject to Lazard’s control.

Lazard’s Asset Management segment principally includes LAM, LFG and Edgewater. Asset Management net revenue is derived from fees for investment management and advisory services provided to institutional and private clients. As noted above, the main driver of Asset Management net revenue is the level of AUM, which is generally influenced by the performance of the global equity markets and, to a lesser extent, fixed income

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markets and Lazard’s investment performance, which impacts its ability to successfully attract and retain assets. As a result, fluctuations (including timing thereof) in financial markets and client asset inflows and outflows have a direct effect on Asset Management net revenue and operating income. Asset Management fees are generally based on the level of AUM measured daily, monthly or quarterly, and an increase or reduction in AUM, due to market price fluctuations, currency fluctuations, net client asset flows or otherwise, will result in a corresponding increase or decrease in management fees. The majority of our investment advisory contracts are generally terminable at any time or on notice of 30 days or less. Institutional and individual clients, and firms with which we have strategic alliances, can terminate their relationship with us, reduce the aggregate amount of AUM or shift their funds to other types of accounts with different rate structures for a number of reasons, including investment performance, changes in prevailing interest rates and financial market performance. In addition, as Lazard’s AUM includes significant amounts of assets that are denominated in currencies other than U.S. Dollars, changes in the value of the U.S. Dollar relative to foreign currencies will impact the value of Lazard’s AUM. Fees vary with the type of assets managed and the vehicle in which they are managed, with higher fees earned on equity assets, alternative investments (such as hedge funds) and private equity investments, and lower fees earned on fixed income and cash management products.

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 specified 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 at the end of the relevant performance measurement period, when potential uncertainties regarding the ultimate realizable amounts have been determined. The incentive fee measurement period is generally an annual period (unless an account terminates during the year), and therefore such incentive fees are usually recorded in the fourth quarter of Lazard’s fiscal year. These 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 future period net appreciation 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, incentive fees earned on our private equity funds are not recognized until potential uncertainties regarding the ultimate realizable amounts have been determined, including any potential for clawback.

Corporate segment net revenue consists primarily of investment gains and losses on the Company’s “seed investments” in LAM equity and fixed income funds and principal investments in equities and alternative asset management funds and “equity method” investments, as well as gains and losses on the extinguishment of debt (to the extent applicable), interest income and interest expense. Corporate net revenue also can fluctuate due to changes in the fair value of investments classified as “trading”, as well as due to changes in interest and currency exchange rates and in the levels of cash, investments and indebtedness. The Company holds no “available-for-sale” or “held-to-maturity” investments.

Although Corporate segment net revenue during the first half of 2012 represented (2)% of Lazard’s net revenue, total assets in the Corporate segment represented 58% of Lazard’s consolidated total assets as of June 30, 2012, which is attributable to investments in government bonds and money market funds, fixed income funds, alternative asset management funds and other securities, private equity investments, cash and LFB’s assets.

Operating Expenses

The majority of Lazard’s operating expenses relate to compensation and benefits for managing directors and employees. Our compensation and benefits expense includes (i) salaries and benefits, (ii) amortization of the relevant portion of previously granted deferred incentive compensation awards (see Note 13 of Notes to

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Condensed Consolidated Financial Statements) including (a) share-based incentive compensation under the Lazard Ltd 2005 Equity Incentive Plan (the “2005 Plan”) and the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”) and (b) Lazard Fund Interests awards and other similar deferred compensation arrangements (see Note 13 of Notes to Condensed Consolidated Financial Statements) and (iii) a provision for discretionary or guaranteed cash bonuses and profit pools. Compensation expense in any given period is dependent on many factors, including general economic and market conditions, our operating and financial performance, staffing levels, competitive pay conditions and the nature of revenues earned, as well as the mix between current and deferred compensation.

For interim periods we use “adjusted compensation and benefits expense” and the ratio of “adjusted compensation and benefits expense” to “operating revenue,” both non-U.S. GAAP measures, for comparison of compensation and benefits expense between periods. For the calculations with respect to “adjusted compensation and benefits expense” and the ratio of “adjusted compensation and benefits expense” to “operating revenue,” see the table under “Consolidated Results of Operations” below.

We believe that “awarded compensation and benefits expense” and the ratio of “awarded compensation and benefits expense” to “operating revenue,” both non-U.S. GAAP measures, are the most appropriate measures to assess the actual annual cost of compensation and provide the most meaningful basis for comparison of compensation and benefits expense between present, historical and future years. “Awarded compensation and benefits expense” for a given year is calculated using “adjusted compensation and benefits expense,” as modified by the following items:

• We deduct amortization expense recorded for U.S. GAAP purposes in each fiscal year associated with the vesting of deferred incentive compensation awards,

• We add (i) the grant date fair value of the deferred incentive compensation awards granted applicable to the relevant year-end compensation process (e.g., grant date fair value of deferred incentive awards granted in 2012, 2011 and 2010 related to the 2011, 2010 and 2009 year-end compensation processes, respectively) and (ii) investments in people (e.g., “sign-on” bonuses) and other special deferred incentive awards granted throughout the applicable year, with such amounts in (i) and (ii) reduced by an estimate of future forfeitures of such awards, and

• We adjust for year-end foreign exchange fluctuations.

Compensation and benefits expense is the largest component of our operating expenses. Our goal is for awarded compensation and benefits expense to rise at a slower rate than operating revenue growth, and if operating revenue declines, awarded compensation and benefits expense should also decline. In addition, we seek to maintain discipline with respect to deferred compensation. Based on a similar mix of revenues from our business as today and a gradual improvement in the macroeconomic environment, we believe that over the cycle we can attain a ratio of awarded compensation and benefits expense to operating revenue in the mid-to-high-50s percentage range, which compares to 61.7% for the year ended December 31, 2011. While we have begun to implement initiatives that we believe will assist us in achieving a ratio within this range, there can be no guarantee that such a ratio will be achieved or that our policies or initiatives will not change in the future. We may benefit from pressure on compensation costs within the financial services industry in future periods, but increased competition for senior professionals, changes in the macroeconomic environment or the financial markets generally, lower operating revenue, changes in the mix of revenues from our businesses or various other factors could prevent us from achieving this goal.

Lazard’s operating expenses also include “non-compensation expense” (which includes costs for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and other expenses), and amortization of intangible assets related to acquisitions. Amortization of intangible assets relates primarily to the acquisition of Edgewater.

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Provision for Income Taxes

As a result of its indirect investment in Lazard Group, Lazard Ltd, through certain of its subsidiaries, is subject to U.S. federal income taxes on its portion of Lazard Group’s operating income. 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 pertaining to the limited liability company is not subject to U.S. federal income taxes because taxes associated with such income represent obligations of the individual partners. Outside the U.S., Lazard Group operates principally through corporations and is subject to local income taxes. Income taxes shown on Lazard’s consolidated statements of operations are principally related to non-U.S. entities and to New York City Unincorporated Business Tax (“UBT”) attributable to Lazard’s operations apportioned to New York City.

Noncontrolling Interests

Noncontrolling interests primarily relate to the amount attributable to LAZ-MD Holdings’ ownership interest in the net income of Lazard Group and amounts related to Edgewater’s management vehicles that the Company is deemed to control but not own. See Note 12 of Notes to Condensed Consolidated Financial Statements for information regarding the Company’s noncontrolling interests.

Consolidated Results of Operations

Lazard’s consolidated financial statements are presented in U.S. Dollars. Many of our non-U.S. subsidiaries have a functional currency (i.e., the currency in which operational activities are primarily conducted) that is other than the U.S. Dollar, generally the currency of the country in which the subsidiaries are domiciled. Such subsidiaries’ assets and liabilities are translated into U.S. Dollars using exchange rates as of the respective balance sheet date, while revenue and expenses are translated at average exchange rates during the respective periods based on the daily closing exchange rates. Adjustments that result from translating amounts from a subsidiary’s functional currency are reported as a component of members’/stockholders’ equity. Foreign currency remeasurement gains and losses on transactions in non-functional currencies are included in the consolidated statements of operations.

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The condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Selected financial data from the Company’s reported condensed consolidated results of operations is set forth below, followed by a more detailed discussion of both the consolidated and business segment results.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	($ in thousands)
Net Revenue	$	436,910		$	477,292		$	922,949		$	915,315
Operating Expenses:
Compensation and benefits		283,392			286,480			621,709			556,479
Non-compensation		106,425			99,904			215,206			193,008
Amortization of intangible assets related to acquisitions		2,560			1,706			3,678			3,180
Total operating expenses		392,377			388,090			840,593			752,667
Operating Income		44,533			89,202			82,356			162,648
Provision for income taxes		10,371			17,636			19,138			31,099
Net Income		34,162			71,566			63,218			131,549
Less – Net Income Attributable to Noncontrolling Interests		3,341			9,562			6,845			14,538
Net Income Attributable to Lazard Ltd	$	30,821		$	62,004		$	56,373		$	117,011
Operating Income, As A % Of Net Revenue		10.2	%		18.7	%		8.9	%		17.8	%

The tables below describe the components of operating revenue, adjusted compensation and benefits expense, adjusted non-compensation expense, earnings from operations and related key ratios, which include non-U.S. GAAP measures used by the Company to manage its business. We believe such non-U.S. GAAP measures provide the most meaningful basis for comparison between present, historical and future periods, as described above.

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
	($ in thousands)
Operating Revenue
Total revenue	$	457,231		$	500,605		$	963,692		$	961,946
Add (deduct):
LFB interest expense (a)		(369	)		(970	)		(875	)		(2,034	)
Revenue related to noncontrolling interests (b)		(4,509	)		(7,862	)		(8,948	)		(11,288	)
Losses on investments pertaining to Lazard Fund Interests (c)		2,856			–			89			–
Operating revenue	$	455,209		$	491,773		$	953,958		$	948,624

(a) Interest expense incurred by LFB is reported as a charge in determining operating revenue because LFB is a commercial bank and we consider its interest expense to be a cost directly related to the revenues of its business.

(b) Revenue related to the consolidation of noncontrolling interests is excluded because the Company has no economic interest in such amount.

(c) Changes in the fair value of investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements that correspond to changes in the value of the related compensation liability, which is recorded within compensation and benefits expense, are excluded.

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	Three Months Ended  June 30,						Six Months Ended  June 30,
	2012			2011			2012			2011
	($ in thousands)
Adjusted Compensation and Benefits Expense
Total compensation and benefits expense		$283,392		$	286,480			$621,709		$	556,479
Add (deduct):
Noncontrolling interests (a)		(1,010	)		(835	)		(2,090	)		(1,913	)
Credits pertaining to Lazard Fund Interests (b)		2,856			–			89			–
Costs related to staff reductions (c)		–			–			(21,754	)		–
Adjusted compensation and benefits expense		$285,238		$	285,645			$597,954		$	554,566
Adjusted compensation and benefits expense, as a % of Operating Revenue		62.7	%		58.1	%		62.7	%		58.5	%

(a) Expenses related to the consolidation of noncontrolling interests are excluded because, as is the case with operating revenue, the Company has no economic interest in such amounts.

(b) Changes in fair value of the derivative compensation liability recorded in connection with Lazard Fund Interests and other similar deferred compensation arrangements are excluded because such amounts correspond to the change in the fair value of the underlying investments, which are excluded from operating revenue.

(c) Severance costs and benefit payments associated with staff reductions, including the acceleration of unrecognized amortization expense of deferred incentive compensation previously granted to individuals being terminated, are excluded to enhance comparability of adjusted compensation and benefits expense relative to operating revenue between present, historical and future periods.

	Three Months Ended  June 30,						Six Months Ended  June 30,
	2012			2011			2012			2011
	($ in thousands)
Adjusted Non-Compensation Expense
Total non-compensation expense		$106,425		$	99,904			$215,206		$	193,008
Deduct:
Noncontrolling interests (a)		(658	)		(324	)		(1,299	)		(658	)
Costs related to staff reductions (b)		–			–			(2,905	)		–
Adjusted non-compensation expense		$105,767		$	99,580			$211,002		$	192,350
Adjusted non-compensation expense, as a % of Operating Revenue		23.2	%		20.2	%		22.1	%		20.3	%

(a) Expenses related to the consolidation of noncontrolling interests are excluded because, as is the case with operating revenue, the Company has no economic interest in such amounts.

(b) Non-compensation costs associated with staff reductions are excluded to enhance comparability of adjusted non-compensation expense relative to operating revenue between present, historical and future periods.

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	Three Months Ended  June 30,						Six Months Ended  June 30,
	2012			2011			2012			2011
	($ in thousands)
Earnings From Operations
Operating revenue	$	455,209		$	491,773		$	953,958		$	948,624
Deduct:
Adjusted compensation and benefits expense		(285,238	)		(285,645	)		(597,954	)		(554,566	)
Adjusted non-compensation expense		(105,767	)		(99,580	)		(211,002	)		(192,350	)
Earnings from operations	$	64,204		$	106,548		$	145,002		$	201,708
Earnings from operations, as a % of Operating Revenue		14.1	%		21.7	%		15.2	%		21.3	%

Certain additional key ratios and headcount information are set forth below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
As a % of Net Revenue, by Revenue Category:
Investment banking and other advisory fees		55	%		51	%		56	%		51	%
Money management fees		46			48			44			49
Interest income		1			1			1			1
Other		3			5			4			5
Interest expense		(5	)		(5	)		(5	)		(6	)
Net revenue		100	%		100	%		100	%		100	%

	As Of
	June 30, 2012		December 31, 2011		June 30, 2011
Headcount:
Managing Directors:
Financial Advisory		153		140		138
Asset Management		77		71		68
Corporate		13		11		10
Other Employees:
Business segment professionals		1,105		1,092		1,024
All other professionals and support staff		1,199		1,197		1,146
Total		2,547		2,511		2,386

Operating Results

The Company’s quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality, the performance of equity markets and other factors. Accordingly, the revenue and profits in any particular quarter may not be indicative of future results. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

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Three Months Ended June 30, 2012 versus June 30, 2011

The Company reported net income attributable to Lazard Ltd in the 2012 period of $31 million, as compared to net income of $62 million in the 2011 period. The changes in the Company’s operating results during these periods are described below.

Net revenue in the 2012 period decreased $40 million, or 8%, with operating revenue decreasing $37 million, or 7%, respectively, as compared to the 2011 period. Fees from investment banking and other advisory activities decreased $3 million, or 1%, primarily due to an $18 million, or 38%, decline in Restructuring revenue and a $10 million, or 39%, decline in other advisory fee revenue, partially offset by an increase of $25 million, or 15%, in M&A and Strategic Advisory fee revenue. Such increase reflected a higher level of revenues earned from our top 10 clients as compared to the 2011 period. The decrease in Restructuring revenue primarily resulted from lower average fees for assignments with completion fees greater than $1 million, and was consistent with the continuing industry-wide decline of corporate restructuring activity. Money management fees decreased $29 million, or 13%, during the 2012 period primarily due to a $10 billion, or 6%, decrease in average AUM, on which management fees are earned, generally reflecting market depreciation and a slight shift in the mix of AUM into lower margin products. In the aggregate, interest income, other revenue and interest expense contributed to a decrease in net revenue of $8 million as compared to the corresponding period in 2011.

Compensation and benefits expense in the 2012 period was $283 million, as compared to $286 million in the corresponding prior year period. Adjusted compensation and benefits expense (which excludes certain items, and which we believe allows for improved comparability between interim periods, as described above) was $285 million in the 2012 period, substantially unchanged when compared to the 2011 period. The resulting ratio of adjusted compensation and benefits expense to operating revenue was 62.7% for the 2012 period, versus 58.1% and 62.0% for the second quarter and full year of 2011, respectively. The ratio in the 2012 period was negatively impacted by higher amortization of deferred incentive compensation awards as described in more detail in the discussion below regarding year-to-date results. Further, as described above, when analyzing compensation and benefits expense on a full year basis, we believe that awarded compensation and benefits expense provides the most meaningful basis for comparison of compensation and benefits expense between present, historical and future years.

Non-compensation expense in the 2012 period was $107 million, an increase of $7 million, or 7%, as compared to $100 million in the corresponding period in 2011. When excluding non-compensation costs relating to noncontrolling interests, adjusted non-compensation expense in the second quarter of 2012 increased $6 million, or 6%, primarily attributable to higher occupancy costs in the 2012 period as a result of our amended lease and associated build-out costs of our Rockefeller Center facility. The ratio of adjusted non-compensation expense to operating revenue was 23.2% in the 2012 period versus 20.2% for the corresponding period in 2011.

Amortization of intangible assets was $3 million in the 2012 period, as compared to $2 million in the 2011 period.

Operating income in the 2012 period was $45 million, a decrease of $44 million, or 50%, as compared to operating income of $89 million in the 2011 period, and, as a percentage of net revenue, was 10.2% as compared to 18.7% in the 2011 period. Earnings from operations (which represent operating revenue less (i) adjusted compensation and benefits expense and (ii) adjusted non-compensation expense) were $64 million and $107 million for the 2012 and 2011 periods, respectively, and, as a percentage of operating revenue, were 14.1% as compared to 21.7% in the 2011 period.

The provision for income taxes was $10 million and $18 million for the 2012 and 2011 periods, respectively, representing effective tax rates of 23.3% and 19.8% for the respective periods.

Net income attributable to noncontrolling interests was $3 million and $10 million in the 2012 and 2011 periods, respectively. The decrease of $7 million primarily reflects a lower level of earnings in the 2012 period.

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Six Months Ended June 30, 2012 versus June 30, 2011

The Company reported net income attributable to Lazard Ltd in the 2012 period of $56 million, as compared to net income of $117 million in the 2011 period. The changes in the Company’s operating results during these periods are described below.

Net revenue in the 2012 period increased $8 million, or 1%, with operating revenue increasing $5 million, or 1%, respectively, as compared to the 2011 period. Fees from investment banking and other advisory activities increased $50 million, or 11%, primarily due to increases in M&A and Strategic Advisory fee revenue of $54 million, or 16%, and Restructuring fee revenue of $16 million, or 20%, partially offset by a decrease in other advisory fee revenue of $20 million, or 43%. The increase in M&A and Strategic Advisory fee revenue was driven by the breadth and volume of our global M&A and Sovereign Advisory businesses, as well as the strong performance of Lazard Middle Market and higher fees earned from our top 10 clients, reflecting the closing of several significant M&A and sovereign and government advisory transactions during the 2012 period. Although global corporate restructuring activity continues to be in an industry-wide decline, the increase in Restructuring fee revenue in the 2012 period was driven primarily by a higher number of closings in the first quarter of 2012 which resulted in an increase in average fees for assignments with completion fees greater than $1 million. Money management fees decreased $39 million, or 9%, during the 2012 period primarily due to a $10 billion, or 6%, decrease in average AUM, on which management fees are earned, primarily as a result of market depreciation in the second half of 2011. In the aggregate, interest income, other revenue and interest expense contributed to a decrease in net revenue of $3 million as compared to the corresponding period in 2011.

Compensation and benefits expense in the 2012 period was $622 million, as compared to $556 million in the corresponding prior year period, and included a $22 million first quarter 2012 charge associated with staff reductions, representing severance costs and benefit payments, $7 million of which related to the acceleration of unrecognized amortization expense of deferred incentive compensation previously granted to individuals being terminated. Also contributing to the increase was a higher level of amortization of deferred incentive compensation awards and increased salaries and benefits. Adjusted compensation and benefits expense (which excludes certain items, and which we believe allows for improved comparability between interim periods, as described above), was $598 million in the 2012 period, an increase of $43 million, or 8%, when compared to $555 million in the 2011 period. The resulting ratio of adjusted compensation and benefits expense to operating revenue was 62.7% for the 2012 period, which compares to 58.5% and 62.0% for the first half and full year of 2011, respectively. The first half 2012 ratio of adjusted compensation and benefits expense to operating revenue assumed, based on current market conditions, a ratio of awarded compensation and benefits expense to operating revenue of approximately 60% for the full year of 2012, as compared to 61.7% for the full year of 2011. As described above, when analyzing compensation and benefits expense on a full year basis, we believe that awarded compensation and benefits expense provides the most meaningful basis for comparison of compensation and benefits expense between present, historical and future years.

We currently expect that amortization of deferred incentive compensation awards will approximate $341 million for the full year of 2012, compared to $289 million for the full year of 2011, when excluding the $7 million charge in 2012 related to staff reductions. Approximately $41 million, or 79%, of the increased amortization in 2012 is related to the 2008 plan year deferred incentive compensation awards (the “2008 grant”), approximately $23 million of which was expensed in the first half of 2012, representing approximately 2.4% of operating revenue. The 2008 grant had a four year vesting period and is the last grant with a vesting period in excess of three years. Amortization of deferred incentive compensation expense is expected to revert to a lower level after the first quarter of 2013 following the full vesting of the 2008 grant.

Non-compensation expense in the 2012 period was $215 million, an increase of $22 million, or 12%, as compared to $193 million in the corresponding period in 2011. Non-compensation expense in the first half of 2012 included charges totaling $3 million associated with the staff reductions. When excluding such charges, as well as non-compensation costs relating to noncontrolling interests, adjusted non-compensation expense in the first half of 2012 increased $19 million, or 10%, primarily attributable to (i) higher occupancy costs in the 2012 period as a result of our amended lease and associated build-out costs of our Rockefeller Center facility and (ii) deal-related costs specifically related to transactions that closed in the 2012 period. The ratio of adjusted non-

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compensation expense to operating revenue was 22.1% in the 2012 period versus 20.3% for the corresponding period in 2011. We currently estimate that, on a full year basis in 2012 as compared to 2011, our occupancy-related costs associated with the amended lease at our Rockefeller Center facility will increase by approximately $12 million. We have initiated, and continue to pursue, reductions of non-compensation expense.

Amortization of intangible assets remained substantially unchanged as compared to the 2011 period.

Operating income in the 2012 period (including the above-mentioned charges relating to staff reductions aggregating $25 million) was $82 million, a decrease of $80 million, or 49%, as compared to operating income of $162 million in the 2011 period, and, as a percentage of net revenue, was 8.9%, as compared to 17.8% in the 2011 period. Earnings from operations were $145 million and $202 million for the 2012 and 2011 periods, respectively, and, as a percentage of operating revenue, were 15.2% as compared to 21.3% in the 2011 period.

The provision for income taxes was $19 million and $31 million for the 2012 and 2011 periods, respectively, representing effective tax rates of 23.2% and 19.1% for the respective periods.

Net income attributable to noncontrolling interests was $7 million and $15 million in the 2012 and 2011 periods, respectively. The decrease of $8 million primarily reflects a lower level of earnings in the 2012 period.

Business Segments

The following is a discussion of net revenue and operating income for the Company’s segments - Financial Advisory, Asset Management and Corporate. Each segment’s operating expenses include (i) compensation and benefits expenses that are incurred directly in support of the segment 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 outsourcing, and indirect support costs (including compensation and benefits expense and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, legal, facilities management and senior management activities. Such support costs are allocated to the relevant segments based on various statistical drivers such as revenue, headcount, square footage and other factors.

Financial Advisory

The following tables summarize the reported operating results of the Financial Advisory segment:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	($ in thousands)
M&A and Strategic Advisory		$195,383		$	170,568			$387,994		$	334,320
Capital Markets and Other Advisory		17,174			30,290			31,544			59,826
Total Strategic Advisory		212,557			200,858			419,538			394,146
Restructuring		30,067			48,333			100,282			83,890
Net Revenue		242,624			249,191			519,820			478,036
Operating Expenses (a)		231,200			214,217			481,097			427,783
Operating Income		$  11,424		$	34,974			$  38,723		$	50,253
Operating Income, As A Percentage Of Net Revenue		4.7	%		14.0	%		7.4	%		10.5	%

(a) Includes indirect support costs (including compensation and benefits expense and other operating expenses related thereto).

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Net revenue trends in Financial Advisory for M&A and Strategic Advisory and Restructuring are generally correlated to the volume of completed industry-wide M&A transactions and restructurings occurring subsequent to corporate debt defaults, respectively. However, deviations from this relationship can occur in any given year for a number of reasons. For instance, our results can diverge from industry-wide activity where there are material variances from the level of industry-wide M&A activity in a particular market where Lazard has significant market share, or regarding the relative number of our advisory engagements with respect to larger-sized transactions, and where we are involved in significant non-public assignments. While the M&A industry data described above on completed and announced transactions reflects decreased M&A activity in the first half of 2012 as compared to the corresponding period in 2011, our M&A and Strategic Advisory revenue (which includes Sovereign and Government Advisory revenue) increased 16% in the 2012 six month period as compared to the 2011 period.

Certain Lazard client statistics and global industry statistics are set forth below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Lazard Statistics:
Number of Clients With Fees Greater Than $1 Million:
Total Financial Advisory		54			49			123			105
M&A and Strategic Advisory		43			35			90			71
Percentage of Total Financial Advisory Revenue from Top 10 Clients		44	%		38	%		31	%		25	%
Number of M&A Transactions Completed With Values Greater than $1 billion (a)		13			17			24			31

(a) Source: Dealogic as of July 11, 2012.

The geographical distribution of Financial Advisory net revenue is set forth below in percentage terms and is based on the Lazard offices that generate Financial Advisory net revenue, which are located in the U.S., Europe (primarily in the U.K., France, Italy, Spain and Germany) and the rest of the world (primarily in Australia) and therefore may not be reflective of the geography in which the clients are located.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
United States		68	%		60	%		61	%		54	%
Europe		21			35			32			38
Rest of World		11			5			7			8
Total		100	%		100	%		100	%		100	%

The Company’s managing directors and many of its professionals have significant experience, and many of them are able to use this experience to advise on M&A, strategic advisory matters and restructuring transactions, depending on clients’ needs. This flexibility allows Lazard to better match its professionals with the counter-cyclical business cycles of mergers and acquisitions and restructurings. While Lazard measures revenue by practice area, Lazard does not separately measure the costs or profitability of M&A services as compared to restructuring services. Accordingly, Lazard measures performance in its Financial Advisory segment based on overall segment net revenue and operating income margins.

Financial Advisory Results of Operations

Financial Advisory’s quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality and other factors. Accordingly, the revenue and profits in any particular quarter or period may not be indicative of future results. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

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Three Months Ended June 30, 2012 versus June 30, 2011

Total Strategic Advisory net revenue, representing fees from M&A, Sovereign, Capital Markets, Private Funds and Other Advisory businesses, increased $12 million, or 6%, and Restructuring revenue decreased $18 million, or 38%, as compared to the 2011 period.

M&A and Strategic Advisory revenue increased $25 million, or 15% as compared to the 2011 period. Capital Markets and Other Advisory revenue decreased $13 million, or 43%. The increase in M&A and Strategic Advisory revenue was principally due to a higher level of fees earned from our top 10 clients, which reflected the closing of several significant M&A transactions. Our major clients, which, in the aggregate, represented a significant portion of our M&A and Strategic Advisory revenue for the second quarter of 2012, included Abertis Infraestructuras, Caisse des Dépôts, Central Vermont Public Service, Delphi Financial Group, France Telecom-Orange, Gloucester Coal, Google, Medco Health Solutions, Mirvac Group and Northeast Utilities. The decrease in Capital Markets and Other Advisory revenue in the 2012 period was primarily attributable to a lower level of closings by Private Fund Advisory.

Restructuring revenue is derived from various activities including bankruptcy assignments, global debt and financing restructurings, distressed asset sales and advice on complex on- and off-balance sheet assignments. The decrease in Restructuring revenue in the 2012 period was due to lower average fees for assignments with completion fees greater than $1 million. Notable assignments completed in the second quarter of 2012 included assignments for General Maritime, Crown of the State of New South Wales and Yucaipa Companies.

Operating expenses increased $17 million, or 8%, as compared to the 2011 period. The principal contributors to the increase were increases in compensation and benefits expense and occupancy costs in the 2012 period, the latter primarily as a result of our amended lease and associated build-out costs of our Rockefeller Center facility.

Financial Advisory operating income in the 2012 period was $11 million, a decrease of $24 million, or 67%, as compared to operating income of $35 million in the 2011 period and, as a percentage of net revenue, was 4.7% as compared to 14.0% in the 2011 period.

Six Months Ended June 30, 2012 versus June 30, 2011

Total Strategic Advisory net revenue, representing fees from M&A, Sovereign, Capital Markets, Private Funds and Other Advisory businesses, increased $25 million, or 6%, and Restructuring revenue increased $16 million, or 20%, as compared to the 2011 period.

M&A and Strategic Advisory revenue increased $54 million, or 16%, as compared to the 2011 period. Capital Markets and Other Advisory revenue decreased $28 million, or 47%. The increase in M&A and Strategic Advisory revenue was principally due to a higher level of fees earned from our top 10 clients, reflecting the closing of several significant M&A and sovereign and government advisory transactions, as well as the strong performance of Lazard Middle Market. The decrease in Capital Markets and Other Advisory revenue in the 2012 period was primarily attributable to a lower level of closings by Private Fund Advisory.

The increase in Restructuring revenue in the 2012 period was driven by a comparatively strong 2012 first quarter and increased average fees for assignments with completion fees greater than $1 million.

Operating expenses increased $53 million, or 12%, as compared to the 2011 period. The principal contributors to the increase were higher levels of compensation and benefits expense, deal-related costs specifically related to transactions that closed in the 2012 period, business development expense and occupancy costs in the 2012 period, the latter primarily as a result of our amended lease and associated build-out costs of our Rockefeller Center facility.

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Financial Advisory operating income in the 2012 period was $39 million, a decrease of $11 million, or 23%, as compared to operating income of $50 million in the 2011 period and, as a percentage of net revenue, was 7.4% as compared to 10.5% in the 2011 period.

Asset Management

The following table shows the composition of AUM for the Asset Management segment:

	As of
	June  30, 2012		December 31, 2011
	($ in millions)
International Equities		$  29,506	$	27,599
Global Equities		73,158		68,584
U.S. Equities		19,495		20,179
Total Equities		122,159		116,362
European and International Fixed Income		13,901		12,293
Global Fixed Income		2,579		2,350
U.S. Fixed Income		3,456		3,107
Total Fixed Income		19,936		17,750
Alternative Investments		4,774		5,349
Private Equity		1,441		1,486
Cash Management		129		92
Total AUM		$148,439	$	141,039

Average AUM for the 2012 and 2011 periods is set forth below. Average AUM is generally based on an average of quarterly ending balances for the respective periods.

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	($ in millions)
Average AUM	$	150,994	$	161,024	$	149,203	$	159,129

Total AUM at June 30, 2012 increased $7 billion, or 5%, as compared to total AUM of $141 billion at December 31, 2011, primarily due to market appreciation. Average AUM, however, for both the three month and six month periods ended June 30, 2012, was 6% lower than that for the corresponding periods in 2011. International, Global and U.S. equities represented 20%, 49% and 13% of total AUM at June 30, 2012, substantially unchanged from the respective percentages at December 31, 2011.

As of June 30, 2012 and December 31, 2011, approximately 90% of our AUM was managed on behalf of institutional clients, including corporations, labor unions, public pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, and, as of such dates, 10% of our AUM was managed on behalf of individual client relationships, which are principally with family offices and individuals.

As of June 30, 2012 and December 31, 2011, AUM denominated in foreign currencies represented approximately 60% and 61%, respectively, of our total AUM. Foreign denominated AUM declines in value with the strengthening of the U.S. Dollar and increases in value as the U.S. Dollar weakens.

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The following is a summary of changes in AUM for the 2012 and 2011 periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012		2011
	($ in millions)
AUM—Beginning of Period	$	156,708		$	160,451		$	141,039	$	155,337
Net Flows (a)		1,137			(327	)		975		368
Market and Foreign Exchange (Depreciation) Appreciation		(9,406	)		1,473			6,425		5,892
AUM—End of Period	$	148,439		$	161,597		$	148,439	$	161,597

(a) Includes inflows of $9,262 and $5,262 and outflows of $8,125 and $5,589 for the three month periods in 2012 and 2011, respectively, and inflows of $16,057 and $11,075 and outflows of $15,082 and $10,707 for the six month periods in 2012 and 2011, respectively.

During the 2012 period, inflows were principally in Global and International Equities and International Fixed Income, primarily due to increased investments in existing accounts, as well as new accounts. Outflows during the 2012 period were principally in Global and International Equities and U.S. Equities, primarily resulting from withdrawals in existing accounts and accounts lost.

As of July 27, 2012, AUM was $151.0 billion, an increase of $2.6 billion since June 30, 2012. The increase in AUM was due to market/foreign exchange appreciation of $1.1 billion and net inflows of $1.5 billion. Market appreciation was approximately 1% of AUM since June 30, 2012, which was generally consistent with the increase in global market indices during that period.

The following table summarizes the reported operating results of the Asset Management segment:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	($ in thousands)
Revenue:
Management Fees	$	195,223		$	221,217		$	395,083		$	427,985
Incentive Fees		3,704			6,331			6,300			11,477
Other		12,126			17,307			24,197			32,246
Net Revenue		211,053			244,855			425,580			471,708
Operating Expenses (a)		156,619			160,914			317,120			310,118
Operating Income	$	54,434		$	83,941		$	108,460		$	161,590
Operating Income, As A Percentage of Net Revenue		25.8	%		34.3	%		25.5	%		34.3	%

(a) Includes indirect support costs (including compensation and benefits expense and other operating expenses related thereto).

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The geographical distribution of Asset Management net revenue is set forth below in percentage terms, and is based on the Lazard offices that manage the respective AUM amounts. Such geographical distribution may not be reflective of the geography of the investment products or clients.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
United States		62	%		58	%		62	%		60	%
Europe		26			31			26			29
Rest of World		12			11			12			11
Total		100	%		100	%		100	%		100	%

Asset Management Results of Operations

Asset Management’s quarterly revenue and profits in any particular quarter or period may not be indicative of future results and may fluctuate based on the performance of the equity markets. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended June 30, 2012 versus June 30, 2011

Asset Management net revenue decreased $34 million, or 14%, as compared to the 2011 period. Management fees decreased $26 million, or 12%, as compared to the 2011 period, driven primarily by a 6% decrease in average AUM, generally reflecting market depreciation and a slight shift in the mix of AUM into lower margin products. Incentive fees, principally consisting of traditional long-only strategies, decreased $3 million, or 41%, as compared to the 2011 period, primarily due to a change in fee structure on one mandate from a quarterly to an annual performance fee basis. Other revenue decreased $5 million, or 30%, as compared to the 2011 period, primarily due to a decline in commissions and custody fees.

Operating expenses decreased $4 million, or 3%, as compared to the 2011 period, with such decrease primarily due to a decrease in compensation and benefits expense and lower fees for fund administration related to the decrease in average AUM, partially offset by higher occupancy costs in the 2012 period, the latter primarily as a result of our amended lease and associated build-out costs of our Rockefeller Center facility.

Asset Management operating income was $54 million, a decrease of $30 million, or 35%, as compared to operating income of $84 million in the 2011 period and, as a percentage of net revenue, was 25.8%, as compared to 34.3% in the 2011 period.

Six Months Ended June 30, 2012 versus June 30, 2011

Asset Management net revenue decreased $46 million, or 10%, as compared to the 2011 period. Management fees decreased $33 million, or 8%, as compared to the 2011 period, driven primarily by a 6% decrease in average AUM, generally reflecting market depreciation in the second half of 2011. Incentive fees, principally consisting of traditional long-only strategies, decreased $5 million, or 45%, as compared to the 2011 period, primarily due to a change in fee structure on one mandate from a quarterly to an annual performance fee basis. Other revenue decreased $8 million, or 25%, as compared to the 2011 period, primarily due to a decline in commissions and custody fees from an unusually strong 2011 period.

Operating expenses increased $7 million, or 2%, as compared to the 2011 period, with such increase primarily due to an increase in compensation and benefits expense and higher occupancy costs in the 2012 period, the latter primarily as a result of our amended lease and associated build-out costs of our Rockefeller Center facility, partially offset by lower fees for fund administration related to a decrease in average AUM.

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Asset Management operating income was $109 million, a decrease of $53 million, or 33%, as compared to operating income of $162 million in the 2011 period and, as a percentage of net revenue, was 25.5%, as compared to 34.3% in the 2011 period.

Corporate

The following table summarizes the reported operating results of the Corporate segment:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	($ in thousands)
Interest Income	$	1,010		$	1,622		$	1,641		$	3,206
Interest Expense		(20,320	)		(22,626	)		(40,742	)		(45,353	)
Net Interest (Expense)		(19,310	)		(21,004	)		(39,101	)		(42,147	)
Other Revenue		2,543			4,250			16,650			7,718
Net Revenue (Expense)		(16,767	)		(16,754	)		(22,451	)		(34,429	)
Operating Expenses		4,558			12,959			42,376			14,766
Operating Loss	$	(21,325	)	$	(29,713	)	$	(64,827	)	$	(49,195	)

Corporate Results of Operations

Corporate operating results in any particular quarter or period may not be indicative of future results and may fluctuate based on a variety of factors. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended June 30, 2012 versus June 30, 2011

Net interest expense decreased $2 million, or 8%, as compared to the 2011 period.

Other revenue decreased $2 million, or 40%, primarily resulting from a decrease in investment gains versus the 2011 period.

Operating expenses decreased $8 million, primarily due to decreased compensation and benefits expense, partially offset by higher occupancy costs in the 2012 period as a result of our amended lease and associated build-out costs of our Rockefeller Center facility and increased technology costs.

Six Months Ended June 30, 2012 versus June 30, 2011

Net interest expense decreased $3 million, or 7%, as compared to the 2011 period.

Other revenue increased $9 million, primarily due to a higher level of investment gains versus the 2011 period.

Operating expenses in the 2012 period (including the above-mentioned $25 million charge in the first quarter of 2012 relating to staff reductions) increased $28 million. Excluding the impact of such staff reduction charge, operating expenses in the 2012 period increased $3 million, or 20%, as compared to the 2011 period, primarily due to (i) higher occupancy costs in the 2012 period as a result of our amended lease and associated build-out costs of our Rockefeller Center facility and (ii) increased technology costs.

Cash Flows

The Company’s cash flows are influenced by the timing of the receipt of Financial Advisory and Asset Management fees, the timing of distributions to shareholders, payments of incentive compensation to managing directors and employees and purchases of Class A common stock. M&A, Strategic Advisory, and Asset Management fees are generally

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collected within 60 days of billing, while Restructuring fee collections may extend beyond 60 days, particularly those that involve bankruptcies with court-ordered holdbacks. Fees from our Private Fund Advisory activities are generally collected over a four-year period from billing and typically include an interest component.

The Company makes cash payments for, or in respect of, a significant portion of its incentive compensation during the first three months of each calendar year with respect to the prior year’s results.

Summary of Cash Flows:

	Six Months Ended  June 30,
	2012			2011
	($ in millions)
Cash Provided By (Used In):
Operating activities:
Net income	$	63.2		$	131.5
Noncash charges (a)		191.6			179.7
Other operating activities (b)		(220.3	)		(296.3	)
Net cash provided by operating activities		34.5			14.9
Investing activities		(46.9	)		(5.5	)
Financing activities (c)		(238.9	)		(254.5	)
Effect of exchange rate changes		(1.3	)		19.4
Net Decrease in Cash and Cash Equivalents		(252.6	)		(225.7	)
Cash and Cash Equivalents:
Beginning of Period		1,003.8			1,209.7
End of Period	$	751.2		$	984.0
(a)    Consists of the following:
Depreciation and amortization of property	$	14.8		$	11.8
Amortization of deferred expenses, stock units and interest rate hedge		173.1			164.7
Amortization of intangible assets related to acquisitions		3.7			3.2
Total	$	191.6		$	179.7

(b) Includes net changes in operating assets and liabilities.

(c) Consists primarily of purchases of shares of Class A common stock, settlements of vested restricted stock units (“RSU”s), Class A common stock dividends, distributions to noncontrolling interest holders and activity relating to borrowings.

Liquidity and Capital Resources

The Company’s liquidity and capital resources are derived from operating activities, financing agreements and equity offerings.

Operating Activities

Net revenue, operating income and cash receipts fluctuate significantly between quarters. In the case of Financial Advisory, fee receipts are generally dependent upon the successful completion of client transactions, the occurrence and timing of which is irregular and not subject to Lazard’s control. In the case of Asset Management, incentive fees earned on AUM are generally not earned until the end of the applicable measurement period, which is generally the fourth quarter of Lazard’s fiscal year, with the respective receivable collected in the first quarter of the following year.

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Liquidity is significantly impacted by cash payments for, or in respect of, incentive compensation, a significant portion of which are made during the first three months of the year. As a consequence, cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year. We also pay certain tax advances during the year on behalf of our managing directors, which serve to reduce their respective incentive compensation payments. We expect this seasonal pattern of cash flow to continue.

Lazard’s consolidated financial statements are presented in U.S. Dollars. Many of Lazard’s non-U.S. subsidiaries have a functional currency (i.e., the currency in which operational activities are primarily conducted) that is other than the U.S. Dollar, generally the currency of the country in which such subsidiaries are domiciled. Such subsidiaries’ assets and liabilities are translated into U.S. Dollars at the respective balance sheet date exchange rates, while revenue and expenses are translated at average exchange rates during the year based on the daily closing exchange rates. Adjustments that result from translating amounts from a subsidiary’s functional currency are reported as a component of members’/stockholders’ equity. Foreign currency remeasurement gains and losses on transactions in non-functional currencies are included on the consolidated statements of operations.

We regularly monitor our liquidity position, including cash levels, credit lines, principal investment commitments, interest and principal payments on debt, capital expenditures, dividend payments, purchases of shares of Class A common stock and Lazard Group common membership interests and matters relating to liquidity and to compliance with regulatory net capital requirements. At June 30, 2012, Lazard had approximately $751 million of cash, with such amount including approximately $290 million held at Lazard’s operations outside the U.S. Since Lazard provides for U.S. income taxes on substantially all of its unrepatriated foreign earnings, no material amount of additional U.S. income taxes would be recognized upon receipt of dividends or distributions of such earnings from its foreign operations.

We maintain lines of credit in excess of anticipated liquidity requirements. As of June 30, 2012, Lazard had approximately $299 million in unused lines of credit available to it, including a $150 million, three-year, senior revolving credit facility with a group of lenders that expires in April 2013 (the “Credit Facility”) (see “—Financing Activities” below) and unused lines of credit available to LFB of approximately $88 million (at June 30, 2012 exchange rates) and Edgewater of $55 million. In addition, LFB has access to the Eurosystem Covered Bond Purchase Program of the Banque de France.

The Credit Facility contains customary terms and conditions, including limitations on consolidations, mergers, indebtedness and certain payments, as well as financial condition covenants relating to leverage and interest coverage ratios. Lazard Group’s obligations under the Credit Facility may be accelerated upon customary events of default, including non-payment of principal or interest, breaches of covenants, cross-defaults to other material debt, a change in control and specified bankruptcy events.

Financing Activities

The table below sets forth our corporate indebtedness as of June 30, 2012 and December 31, 2011. The agreements with respect to this indebtedness are discussed in more detail in our condensed consolidated financial statements and related notes included elsewhere in this Form 10-Q and in our Form 10-K.

	Maturity Date	As of				Increase (Decrease)
		June 30, 2012		December 31, 2011
		($ in millions)
Senior Debt:
7.125%	2015	$	528.5	$	528.5	$	–
6.85%	2017		548.4		548.4		–
Total Senior Debt		$	1,076.9	$	1,076.9	$	–

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Lazard’s annual cash flow generated from operations historically has been sufficient to enable it to meet its annual obligations. Lazard has not drawn on its Credit Facility and prior revolving credit facility since June 30, 2006. We believe that our cash flows from operating activities, along with the use of our credit lines as needed, should be sufficient for us to fund our current obligations for the next 12 months and beyond.

As long as the lenders’ commitments remain in effect, any loan pursuant to the Credit Facility remains outstanding and unpaid or any other amount is owing to the lending bank group, the Credit Facility includes financial condition covenants that require that Lazard Group not permit (i) its Consolidated Leverage Ratio (as defined in the Credit Facility) for the 12-month period ending on the last day of any fiscal quarter to be greater than 4.00 to 1.00 or (ii) its Consolidated Interest Coverage Ratio (as defined in the Credit Facility) for the 12-month period ending on the last day of any fiscal quarter to be less than 3.00 to 1.00. For the 12-month period ended June 30, 2012 Lazard Group was in compliance with such ratios, with its Consolidated Leverage Ratio being 2.20 to 1.00 and its Consolidated Interest Coverage Ratio being 7.11 to 1.00. In any event, no amounts were outstanding under the Credit Facility as of June 30, 2012.

In addition, the Credit Facility, indenture and supplemental indentures relating to Lazard Group’s senior notes contain certain other covenants (none of which relate to financial condition), events of default and other customary provisions. At June 30, 2012, the Company was in compliance with all of these provisions. We may, to the extent required and subject to restrictions contained in our financing arrangements, use other financing sources, which may cause us to be subject to additional restrictions or covenants.

See Note 10 of Notes to Condensed Consolidated Financial Statements for additional information regarding senior debt.

Stockholders’ Equity

At June 30, 2012, total stockholders’ equity was $826 million, as compared to $867 million at December 31, 2011, including $704 million and $726 million attributable to Lazard Ltd on the respective dates. The net activity in stockholders’ equity during the six month period ended June 30, 2012 is reflected in the table below (in millions of dollars):

Stockholders’ Equity—January 1, 2012	$	867
Increase (decrease) due to:
Net income		63
Amortization of share-based incentive compensation		152
Purchase of Class A common stock		(152	)
Delivery of Class A common stock in connection with share-based incentive compensation		(30	)
Class A common stock dividends		(43	)
Distributions to noncontrolling interests - net		(13	)
Deconsolidation of investment companies		(15	)
AOCI (including noncontrolling interests’ portion thereof)(*)		(6	)
Other - net		3
Stockholders’ Equity—June 30, 2012	$	826
(*) Includes:
Net foreign currency translation adjustments	$	(2	)
Employee benefit plans and other adjustments		(4	)
Total	$	(6	)

In February 2011, October 2011 and April 2012, the Board of Directors of Lazard Ltd authorized the repurchase of up to $250 million, $125 million and $125 million, respectively, in aggregate cost of Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013 and December 31, 2013, respectively. During the six month period ended June 30, 2012 the Company

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repurchased 5,706,592 shares of Class A common stock, at an aggregate cost of $152 million (no Lazard Group common membership interests were purchased during such six month period). As of June 30, 2012, $185 million of the current aggregate share repurchase amount authorized as of such date remained available under the share repurchase program, all of which expires on December 31, 2013. Furthermore, under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of RSUs, shares of Class A common stock may be withheld by the Company to cover estimated income taxes. In order to help neutralize the dilutive effect of our share-based incentive compensation plans, Lazard intends to repurchase during a given year more shares than it expects to ultimately issue pursuant to such plans in respect of year-end incentive compensation attributable to the prior year.

During the first half of 2012, the Company had written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 in place, pursuant to which it effected stock repurchases through the open market.

In addition to the repurchases of Class A common stock described above, during the six month period ended June 30, 2012, in order, among other reasons, to help neutralize the dilutive effect of our year-end share-based incentive compensation plans, the Company utilized $30 million to satisfy certain employees’ withholding tax obligations on vested RSUs and delivery of restricted Class A common stock in lieu of issuing 995,957 shares of Class A common stock directly by Lazard Ltd or by delivery of shares held by Lazard Group or other subsidiaries of Lazard Ltd.

The Company plans to deploy excess cash and may do so in a variety of ways, including by repurchasing outstanding shares of Class A common stock, paying dividends to stockholders and repurchasing its outstanding debt.

See Notes 12 and 13 of Notes to Condensed Consolidated Financial Statements for additional information regarding Lazard’s stockholders’ equity and incentive plans, respectively.

Regulatory Capital

We actively monitor our regulatory capital base. Our principal subsidiaries are subject to regulatory requirements in their respective jurisdictions to ensure their general financial soundness and liquidity, which require, among other things, that we comply with certain minimum capital requirements, record-keeping, reporting procedures, relationships with customers, experience and training requirements for employees and certain other requirements and procedures. These regulatory requirements may restrict the flow of funds to and from affiliates. See Note 18 of Notes to Condensed Consolidated Financial Statements for further information. These regulations differ in the U.S., the U.K., France and other countries in which we operate. Our capital structure is designed to provide each of our subsidiaries with capital and liquidity consistent with its business and regulatory requirements. For a discussion of regulations relating to us, see “Item 1-Business—Regulation” included in the Form 10-K.

Contractual Obligations

The following table sets forth information relating to Lazard’s contractual obligations as of June 30, 2012:

	Contractual Obligations Due by Period
	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
	($ in thousands)
Senior Debt (including interest) (a)	$	1,377,627	$	75,218	$	678,935	$	623,474	$	–
Operating Leases (exclusive of $162,394 of sublease income)		1,061,331		61,617		146,668		130,022		723,024
Capital Leases (including interest)		21,940		3,693		5,886		12,361		–
Investment Capital Funding Commitments (b)		35,726		24,921		9,668		1,137		–
Total (c)	$	2,496,624	$	165,449	$	841,157	$	766,994	$	723,024

(a) See Note 10 of Notes to Condensed Consolidated Financial Statements.

(b) See Note 5 of Notes to Condensed Consolidated Financial Statements.

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(c) The table above excludes contingent obligations and any possible payments for uncertain tax positions given the inability to estimate the timing of the latter payments. See Notes 11, 13, 14 and 15 of Notes to Condensed Consolidated Financial Statements regarding information in connection with commitments, incentive plans, employee benefit plans and income taxes, respectively.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our consolidated financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in conformity with U.S. GAAP. The preparation of Lazard’s consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, Lazard evaluates its estimates, including those related to revenue recognition, compensation liabilities, income taxes, investing activities and goodwill. Lazard bases these estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Lazard believes that the critical accounting policies set forth below comprise the most significant estimates and judgments used in the preparation of its consolidated financial statements.

Revenue Recognition

Lazard generates substantially all of its net revenue from providing Financial Advisory and Asset Management services to clients. Lazard recognizes revenue when the following criteria are met:

• there is persuasive evidence of an arrangement with a client,

• the agreed-upon services have been provided,

• fees are fixed or determinable, and

• collection is probable.

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 (see “Financial Statement Overview”).

If, in Lazard’s judgment, collection of a fee is not probable, Lazard will not recognize revenue until the uncertainty is removed. We maintain an allowance for doubtful accounts to provide coverage for estimated losses from our receivables. We determine the adequacy of the allowance by estimating the probability of loss based on our analysis of the client’s creditworthiness and specifically reserve against exposures where we determine the receivables are impaired, which may include situations where a fee is in dispute or litigation has commenced.

With respect to fees receivable from Financial Advisory activities, such receivables are generally deemed past due when they are outstanding 60 days from the date of invoice. However, some Financial Advisory transactions include specific contractual payment terms that may vary from one month to four years (as is the case for our Private Fund Advisory fees) following the invoice date or may be subject to court approval (as is the case with restructuring assignments that include bankruptcy proceedings). In such cases, receivables are deemed past due when payment is not received by the agreed-upon contractual date or the court approval date, respectively. Financial Advisory fee receivables past due in excess of 180 days are fully provided for unless there is evidence that the balance is collectible. Asset Management fees are deemed past due and fully provided for when such receivables are outstanding 12 months after the invoice date. Notwithstanding our policy for receivables past due, we specifically reserve against exposures relating to Financial Advisory and Asset Management fees where we determine receivables are impaired.

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Income Taxes

As part of the process of preparing our consolidated financial statements, we estimate our income taxes for each of our tax-paying entities in each of their respective jurisdictions. In addition to estimating actual current tax liability for these jurisdictions, we also must account for the tax effects of differences between the financial reporting and tax reporting of items, such as deferred revenue, compensation and benefits expense, unrealized gains or losses on investments and depreciation and amortization, as well as intercompany transactions such as revenue sharing, dividends and interest expense. These temporary differences result in deferred tax assets and liabilities. Significant judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and, as discussed below, any valuation allowance recorded against our deferred tax assets.

A deferred tax asset is recognized if it is more likely than not (defined as a likelihood of greater than 50%) that a tax benefit will be accepted by a taxing authority. The measurement of deferred tax assets and liabilities is based upon currently enacted tax rates in the applicable jurisdictions. At December 31, 2011, on a consolidated basis, we recorded deferred tax assets of approximately $1.3 billion.

Subsequent to the recognition of deferred tax assets, we also must continually assess the likelihood that such deferred tax assets will be realized. If we determine that we may not fully derive the benefit from a deferred tax asset, we consider whether it would be appropriate to apply a valuation allowance against the applicable deferred tax asset. In order to determine whether we apply a valuation allowance, we must assess whether it is more likely than not that such asset will be realized, taking into account all available information. The ultimate realization of a deferred tax asset for a particular entity depends, among other things, on the generation of taxable income by such entity in the applicable jurisdiction. Although we have been profitable on a consolidated basis for the two year period ended December 31, 2011 and the six month period ended June 30, 2012, certain of our tax-paying entities have individually experienced pre-tax losses on a cumulative three-year basis primarily due to permanent differences between net income and taxable income at such entities. Considering these losses and the other factors listed below, we have recorded a valuation allowance of approximately $1.1 billion on our deferred tax assets as of December 31, 2011 and have not changed our assessment regarding the level of valuation allowance as of June 30, 2012.

We consider multiple possible sources of taxable income when assessing a valuation allowance against a deferred tax asset, including:

• future reversals of existing taxable temporary differences;

• future taxable income exclusive of reversing temporary differences and carryforwards;

• taxable income in prior years; and

• tax-planning strategies.

The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available information, including the following:

• nature, frequency and severity of any recent losses,

• duration of statutory carryforward periods,

• historical experience with tax attributes expiring unused, and

• near-term and medium-term financial outlook.

The weight we give to any particular item is, in part, dependent upon the degree to which it can be objectively verified. We give greater weight to the recent results of operations of a relevant entity. Pre-tax operating losses on a three year cumulative basis or lack of sustainable profitability are considered significant evidence and will generally outweigh a projection of future taxable income.

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As mentioned previously, certain of our tax-paying entities have individually experienced losses on cumulative basis over the past several years. If these entities achieve sustainable levels of profitability in the future, we believe there is a reasonable possibility that the valuation allowance recorded against our deferred tax assets at such entities could be reduced significantly. If any valuation allowance reduction were to occur, we would likely have a negative effective tax rate in the period in which such reduction occurs. Included in our deferred tax assets as of December 31, 2011 are approximately $709 million related to certain basis step-ups and approximately $137 million of net operating losses generated by the amortization of such step-up assets. Under our tax receivable agreement, Lazard Group will retain 15% of the actual cash tax savings relating to such assets and will pay 85% of such savings to the former owners of Lazard. As a result, in the event of a reduction of our valuation allowance, we also would recognize a liability relating to the portion expected to be payable under the tax receivable agreement. The creation of this liability could potentially offset a significant amount (but not all) of the income we would otherwise recognize upon a release of the valuation allowance.

If any valuation allowance reduction were to occur, for subsequent periods, our effective tax rate, with all other factors being held constant, would increase and could be significantly higher than our effective tax rate in the period immediately preceding the reduction in the valuation allowance. In such a situation, an increase in our effective tax rate would not impact the amount of cash income taxes we would pay in those periods subsequent to the release of any valuation allowance.

In addition to the discussion above regarding deferred tax assets and associated valuation allowances, other factors affect our provision for income taxes, including changes in the geographic mix of our business, the level of our annual pre-tax income, transfer pricing and intercompany transactions. In addition, our interpretation of complex tax laws may impact our recognition and measurement of current and deferred income taxes. Tax contingencies involve complex issues and often require an extended period of time to resolve. Tax contingencies that are resolved in a manner that is adverse to us could have a material adverse effect on our financial results. See “Risk Factors” and Note 19 of Notes to Consolidated Financial Statements in our Form 10-K for additional information related to income taxes.

Investments

Investments consist principally of debt securities, equities, interests in alternative asset management funds, fixed income funds and other private equity investments.

These investments are carried at either (a) fair value on the consolidated statements of financial condition, with any increases or decreases in fair value reflected (i) in earnings, to the extent held by our broker-dealer subsidiaries or when designated as “trading” securities within our non-broker-dealer subsidiaries, and (ii) in AOCI, to the extent designated as “available-for-sale” securities until such time they are realized and reclassified to earnings, or (b) if designated as “held-to-maturity” securities, amortized cost on the consolidated statements of financial condition. Any declines in the fair value of “available-for-sale” and “held-to-maturity” securities that are determined to be other than temporary are charged to earnings. As of December 31, 2010 and subsequent thereto, Lazard did not own any securities designated as “available-for-sale” or “held-to-maturity”.

Gains and losses on investment positions held, which arise from sales or changes in the fair value of the investments, are not predictable and can cause periodic fluctuations in net income or, if applicable, AOCI and therefore subject Lazard to market and credit risk.

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Data relating to net investments is set forth below (in millions of dollars):

	June 30, 2012 (a)						December 31, 2011 (a)
	$			%			$			%
Debt securities (b)		$     20			5	%	$	37			10	%
Equity securities (net of $1 and $4 of securities sold, not yet purchased, at June 30, 2012 and December 31, 2011, respectively) (c)		211			48			152			41
Alternative asset management funds owned (principally general partnership interests in Lazard-managed hedge funds) (d)		37			8			20			5
Private equity owned (e)		94			21			104			28
Fixed income funds (f)		47			11			31			8
Other (g)		29			7			30			8
Net investments		$   438			100	%	$	374			100	%
Total assets		$2,978					$	3,082
Net investments, as a percentage of total assets		15	%					12	%

(a) Includes investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements granted, with an aggregate fair value of $97 million and $27 million at June 30, 2012 and December 31, 2011, respectively. The majority of the market risk associated with such investments is equally offset by the market risk associated with the derivative liability with respect to such awards. The Company is subject to market risk associated with any portion of such investments that employees may forfeit. See “—Risk Management—Risks Related to Derivatives” for risk management information relating to derivatives.

(b) Debt securities primarily consist of seed investments in Asset Management products and U.S. and non-U.S. government debt securities.

(c) Equity securities primarily consist of seed investments in Asset Management products, which in turn invest in marketable equity securities of large-, mid- and small-cap domestic, international and global companies and include investments in public and private asset management funds managed both by LAM and third-party asset managers. Hedging strategies are employed to attempt to reduce market risk, and, in turn, the volatility to earnings. In addition, equity securities include amounts relating to Lazard Fund Interests awards and other similar deferred compensation arrangements (see (a) above).

At June 30, 2012 and December 31, 2011, investments in asset management funds, including amounts related to both seed investments and Lazard Fund Interests, represented 82% and 79%, respectively, of total equity securities. The remaining 18% and 21% at such respective dates represented investments in marketable equity securities, which were invested as follows:

	June 30,			December 31,
	2012			2011
Percentage invested in:
Consumer		29	%		38	%
Financial		32			19
Energy		9			13
Industrial		11			9
Basic materials		7			9
Other		12			12
Total		100	%		100	%

(d) The fair value of such interests reflects the pro-rata value of the ownership of the underlying securities in the funds. Such funds are broadly diversified and may incorporate particular strategies; however, there are no investments in funds with a single sector strategy.

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(e) Comprised principally of investments in private equity funds that are generally not subject to short-term market fluctuation, but may subject Lazard to market or credit risk. Private equity investments primarily include (i) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies; (ii) CP II, a private equity fund targeting significant noncontrolling investments in established public and private companies; (iii) Senior Housing, which targets controlling interests in companies and assets in senior housing, extended stay and shopping center sectors, (iv) Edgewater Growth Capital Partners III, L.P., a private equity fund primarily making growth equity and buyout investments in high-quality, lower middle market companies and (v) COF 2, a Lazard-managed Australian private equity fund.

(f) Fixed income funds primarily consist of seed investments in Asset Management products which invest in fixed income securities. Hedging strategies are employed to attempt to reduce market risk and, in turn, the volatility to earnings. In addition, fixed income funds include amounts relating to Lazard Fund Interests (see (a) above).

(g) Represents investments (i) accounted for under the equity method of accounting and (ii) private equity and other interests that are consolidated but owned by noncontrolling interests, and therefore do not subject the Company to market or credit risk. The applicable noncontrolling interests are presented within “stockholders’ equity” on the consolidated statements of financial condition.

At June 30, 2012 and December 31, 2011, $119 million and $133 million, respectively, of our total investments at a fair value of $438 million and $374 million, respectively, or 27% and 36%, respectively, were classified as Level 3 assets. Substantially all of our Level 3 investments in both periods are priced based on a NAV or its equivalent. During the six month periods ended June 30, 2012 and 2011, gains of approximately $12 million and $4 million, respectively, were recognized in “revenue-other” on the condensed consolidated statements of operations pertaining to Level 3 investments.

For additional information regarding risks associated with our investments, see “Risk Factors—Other Business Risks—Our results of operations may be affected by market fluctuations related to positions held in our investment portfolios” in our Form 10-K.

See Notes 4 and 5 of Notes to Condensed Consolidated Financial Statements for additional information regarding investments and certain other assets and liabilities measured at fair value, including the levels of fair value within which such measurements of fair value fall.

Assets Under Management

AUM managed by LAM and LFG, which represents substantially all of the Company’s total AUM, principally consists of debt and equity instruments whose value is readily available based on quoted prices on a recognized exchange or prices provided by external pricing services. Accordingly, significant estimates and judgments are generally not involved in the calculation of the value of our AUM.

Goodwill

In accordance with current accounting guidance, goodwill has an indefinite life and is tested for impairment annually or more frequently if circumstances indicate impairment may have occurred. For years prior to 2011, Lazard made estimates and assumptions in order to determine the fair value of its assets and liabilities and to project future earnings using various valuation techniques. Commencing in 2011, as permitted under an amendment issued by the Financial Accounting Standards Board, the Company elected to perform a qualitative evaluation about whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount in lieu of actually calculating the fair value of the reporting unit. See Note 9 of Notes to Condensed Consolidated Financial Statements for additional information regarding goodwill.

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Consolidation of VIEs

The consolidated financial statements include the accounts of Lazard Group and all other entities in which it has a controlling interest. Lazard determines whether it has a controlling interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”) under U.S. GAAP.

• Voting Interest Entities. Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance itself independently and (ii) the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. Lazard is required to consolidate a voting interest entity that it maintains an ownership interest in if it holds a majority of the voting interest in such entity.

• Variable Interest Entities. VIEs are entities that lack one or more of the characteristics of a voting interest entity. If Lazard has a variable interest, or a combination of variable interests in a VIE, it is required to analyze whether it needs to consolidate such VIE.

Lazard is involved with various entities in the normal course of business that are VIEs and holds variable interests in such VIEs. Transactions associated with these entities primarily include investment management, real estate and private equity investments. Those VIEs for which Lazard is determined to be the primary beneficiary are consolidated in accordance with the applicable accounting guidance. Those VIEs include company-sponsored venture capital investment vehicles established in connection with Lazard’s compensation plans.

Risk Management

We encounter risk in the normal course of business, and therefore, in order to help manage and monitor such risks, we have designed risk management processes which consider both the nature of our business and our operating model. We are subject to varying degrees of credit and market risk, including risks related to the level of soundness of our clients, financial, governmental and other institutions and third parties, as well as operational and liquidity risks (see “—Liquidity and Capital Resources”) and we monitor these risks at both an entity level and on a consolidated basis. Management within each of Lazard’s operating locations is principally responsible for managing the risks within its respective businesses on a day-to-day basis.

Market and credit risks related to our investing activities are discussed under “Critical Accounting Policies and Estimates—Investments” above. Risks related to Lazard’s other activities are presented below. Lazard has established procedures to assess credit and market risks, as well as specific interest rate and currency risk, and has established limits related to various positions.

Risks Related to Receivables

We maintain an allowance for doubtful accounts to provide coverage for probable losses from our receivables. We determine the adequacy of the allowance by estimating the probability of loss based on our analysis of the client’s creditworthiness and specifically provide for exposures where we determine the receivables are impaired. At June 30, 2012, total receivables amounted to $483 million, net of an allowance for doubtful accounts of $21 million. As of that date, Financial Advisory and Asset Management fees, customer and related party receivables comprised 80%, 17% and 3% of total receivables, respectively. At December 31, 2011, total receivables amounted to $504 million, net of an allowance for doubtful accounts of $19 million. As of that date, Financial Advisory and Asset Management fees, customer and related party receivables comprised 80%, 16% and 4% of total receivables, respectively. At both June 30, 2012 and December 31, 2011, the Company had receivables past due of approximately $23 million. See also “Critical Accounting Policies and Estimates—Revenue Recognition” above and Note 3 of Notes to Condensed Consolidated Financial Statements for additional information regarding receivables.

LFB engages in lending activities, including commitments to extend credit. At June 30, 2012 and December 31, 2011, customer receivables included $24 million and $29 million of LFB loans, respectively. Such loans are

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closely monitored for counterparty creditworthiness to help minimize exposure. In addition, as of June 30, 2012, LFB had commitments to lend totaling $22 million, which are fully collateralized and generally contain requirements for the counterparty to maintain a minimum collateral level.

Credit Concentrations

To reduce the exposure to concentrations of credit, the Company monitors large exposures to individual counterparties and, in addition, LFB has in place concentration risk limits. At June 30, 2012, excluding inter-bank counterparties, LFB had no exposure to an individual counterparty that exceeded $21 million, with such amount being fully collateralized. With respect to activities outside LFB, as of June 30, 2012, the Company’s largest individual counterparty exposure was a Financial Advisory fee receivable of $19 million.

Risks Related to Derivatives

Lazard enters into interest rate swaps and foreign currency exchange contracts to hedge exposures to interest rates and currency exchange rates and uses equity and fixed income swap contracts to hedge a portion of its market exposure with respect to certain equity investments. At June 30, 2012 and December 31, 2011, such derivative contracts are recorded at fair value. Derivative assets amounted to $4 million and $7 million at June 30, 2012 and December 31, 2011, respectively, and derivative liabilities, excluding the derivative liability arising from the Company’s obligation with respect to Lazard Fund Interests and other similar deferred compensation arrangements, amounted to $2 million and $1 million at such respective dates.

The Company also records derivative liabilities relating to its obligations pertaining to Lazard Fund Interests awards and other similar deferred compensation arrangements, the fair value of which is based on the value of the underlying investments, adjusted for estimated forfeitures. Changes in the fair value of the derivative liabilities are equally offset by the changes in the fair value of investments which are currently expected to be delivered upon settlement of Lazard Fund Interests awards. Derivative liabilities relating to Lazard Fund Interests amounted to $86 million and $30 million at June 30, 2012 and December 31, 2011, respectively.

In addition, LFB enters into interest rate swaps, forward foreign exchange contracts and other derivative contracts to hedge exposures to interest rate and currency fluctuations on open positions that arise primarily from client activity. Such foreign currency and interest rate positions are subject to strict internal limits and, based on account balances as of June 30, 2012, the impact of potential significant movements in either the currency or interest rate markets on LFB’s positions would not materially affect the Company’s annual operating income.

Risks Related to Short-Term Investments and Corporate Indebtedness

A significant portion of the Company’s indebtedness has fixed interest rates, while its cash and short-term investments generally have floating interest rates. Based on account balances as of June 30, 2012, Lazard estimates that its annual operating income relating to cash and short-term investments and corporate indebtedness would increase by approximately $8 million in the event interest rates were to increase by 1% and decrease by approximately $2 million if rates were to decrease by 1%.

As of June 30, 2012, the Company’s cash and cash equivalents totaled approximately $751 million. Substantially all of the Company’s cash and cash equivalents were invested in highly liquid institutional money market funds (a significant majority of which were invested solely in U.S. Government or agency money market funds) or in short-term interest earning accounts at a number of leading banks throughout the world, or in short-term certificates of deposit from such banks. On a regular basis, management reviews and updates its list of approved depositor banks as well as deposit and investment thresholds.

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Operational Risks

Operational risk is inherent in all our business and may, for example, manifest itself in the form of errors, breaches in the system of internal controls, business interruptions, fraud or legal actions due to operating deficiencies or noncompliance. The Company maintains a framework including policies and a system of internal controls designed to monitor and manage operational risk and provide management with timely and accurate information. Management within each of the operating companies is primarily responsible for its operational risk programs. The Company has in place business continuity and disaster recovery programs that manage its capabilities to provide services in the case of a disruption. We purchase insurance programs designed to protect the Company against accidental loss and losses which may significantly affect our financial objectives, personnel, property or our ability to continue to meet our responsibilities to our various stakeholder groups.

Recent Accounting Developments

For a discussion of recently issued accounting developments and their impact or potential impact on Lazard’s consolidated financial statements, see Note 2 of Notes to Condensed Consolidated Financial Statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Risk Management

Quantitative and qualitative disclosures about market risk are included under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management.”

Item 4. Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this quarterly report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this quarterly report, our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In addition, no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during our most recent fiscal quarter that has materially affected, or is likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved from time to time in a number of 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 does experience 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.

Item 1A. Risk Factors

There were no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On May 10, 2012, Lazard Ltd issued 101,505 shares of Class A common stock in reliance on Section 4(2) of the Securities Act of 1933 in connection with the exchange of 101,505 common membership interests of Lazard Group held by certain members of LAZ-MD Holdings as provided for in the Master Separation Agreement, dated as of May 10, 2005, by and among Lazard Ltd, Lazard Group, LAZ-MD Holdings and LFCM Holdings and other related documents.

Issuer Repurchases of Equity Securities

The following table sets forth information regarding Lazard’s purchases of its Class A common stock on a monthly basis during the second quarter of 2012. Share repurchases are recorded on a trade date basis.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
April 1, 2012 – April 30, 2012
Share Repurchase Program (1)		625,500	$	27.29		625,500	$	249.5 million
Employee Transactions (2)		86,035	$	28.51		–	$	–
May 1, 2012 – May 31, 2012
Share Repurchase Program (1)		1,595,504	$	24.10		1,595,504	$	211.1 million
Employee Transactions (2)		64,473	$	25.63		–	$	–
June 1, 2012 – June 30, 2012
Share Repurchase Program (1)		1,107,143	$	23.80		1,107,143	$	184.7 million
Employee Transactions (2)		16,978	$	23.06		–	$	–
Total
Share Repurchase Program (1)		3,328,147	$	24.60		3,328,147	$	184.7 million
Employee Transactions (2)		167,486	$	26.85		–	$	–

(1) In February 2011, October 2011 and April 2012, the Board of Directors of Lazard Ltd authorized the repurchase of up to $250 million, $125 million and $125 million, respectively, in aggregate cost of Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013 and December 31, 2013, respectively. The share repurchase program is used primarily to offset a

72

portion of the shares to be issued under the 2005 Plan and the 2008 Plan. Purchases under the share repurchase program may be made in the open market or through privately negotiated transactions. Amounts shown in this line item exclude the shares of Class A common stock withheld by the Company to cover estimated income taxes as described below. As of June 30, 2012, $184.7 million of the current aggregate share repurchase amount authorized as of such date remained available, all of which expires on December 31, 2013. Additionally, amounts shown in this line item for the period April 1 through June 30, 2012 include repurchases made in the open market pursuant to the Company’s Rule 10b5-1 plan, which was then in effect. A Rule 10b5-1 plan allows the Company to make repurchases during periods when it would not otherwise be repurchasing (i.e., during internal “black-out” periods). All purchases under a Rule 10b5-1 plan must be made in accordance with a predefined plan, which must have been established when the Company was not aware of material non-public information.

(2) Under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of RSUs and delivery of restricted Class A common stock, shares of Class A common stock may be withheld by the Company to cover estimated income taxes. During the three month period ended June 30, 2012, the Company satisfied certain employees’ tax obligations in lieu of issuing (i) 165,018 shares of Class A common stock to cover estimated taxes upon the vesting of 361,557 RSUs and (ii) 2,468 shares of Class A common stock to cover estimated taxes upon the vesting of 12,191 shares of restricted Class A common stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

2.1	Master Separation Agreement, dated as of May 10, 2005, by and among the Registrant, Lazard Group LLC, LAZ-MD Holdings LLC and LFCM Holdings LLC (incorporated by reference to Exhibit 2.1 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
2.2	Amendment No. 1, dated as of November 6, 2006, to the Master Separation Agreement, dated as of May 10, 2005, by and among the Registrant, Lazard Group LLC and LAZ-MD Holdings LLC (incorporated by reference to Exhibit 2.2 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on November 7, 2006).
2.3	Second Amendment, dated as of May 7, 2008, to the Master Separation Agreement, dated as of May 10, 2005, as amended, by and among Lazard Ltd, Lazard Group LLC and LAZ-MD Holdings LLC (incorporated by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on May 9, 2008).
2.4	Class B-1 and Class C Members Transaction Agreement (incorporated by reference to Exhibit 2.2 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1 filed on December 17, 2004).
3.1	Certificate of Incorporation and Memorandum of Association of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on March 21, 2005).
3.2	Certificate of Incorporation in Change of Name of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on March 21, 2005).
3.3	Amended and Restated Bye-Laws of Lazard Ltd (incorporated by reference to Exhibit 3.3 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
3.4	First Amendment to Amended and Restated Bye-Laws of Lazard Ltd (incorporated by reference to Exhibit 3.4 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on May 9, 2008).
3.5	Second Amendment to the Amended and Restated Bye-Laws of Lazard Ltd (incorporated by reference to Exhibit 3.5 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2010).
4.1	Form of Specimen Certificate for Class A common stock (incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on April 11, 2005).
4.2	Indenture, dated as of May 10, 2005, by and between Lazard Group LLC and The Bank of New York, as Trustee (incorporated by reference to Exhibit 4.1 to Lazard Group LLC’s Registration Statement (File No. 333-126751) on Form S-4 filed on July 21, 2005).
4.3	Amended and Restated Third Supplemental Indenture, dated as of May 15, 2008, by and among Lazard Group LLC and The Bank of New York, as trustee (and incorporated by reference to Exhibit 4.1 to the Registrants’ Current Report on Form 8-K (Commission File No. 333-126751) filed on May 16, 2008).
4.4	Fourth Supplemental Indenture, dated as of June 21, 2007, between Lazard Group LLC and The Bank of New York, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on June 22, 2007).
4.5	Form of Senior Note (included in Exhibit 4.3).

74

10.1	Amended and Restated Stockholders’ Agreement, dated as of November 6, 2006, by and among LAZ-MD Holdings LLC, the Registrant and certain members of LAZ-MD Holdings LLC (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on November 7, 2006).
10.2	First Amendment, dated as of May 7, 2008, to the Amended and Restated Stockholders’ Agreement dated as of November 6, 2006, between LAZ-MD Holdings LLC and Lazard Ltd (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on May 9, 2008).
10.3	Operating Agreement of Lazard Group LLC, dated as of May 10, 2005 (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.4	Amendment No. 1 to the Operating Agreement of Lazard Group LLC, dated as of December 19, 2005 (incorporated by reference to Exhibit 3.01 to Lazard Group LLC’s Current Report on Form 8-K (File No. 333-126751) filed on December 19, 2005).
10.5	Amendment No. 2, dated as of May 9, 2008, to the Operating Agreement of Lazard Group LLC, dated as of May 10, 2005 (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on May 8, 2008).
10.6	Amendment No. 3, dated as of April 27, 2010, to the Operating Agreement of Lazard Group LLC, dated as of May 10, 2005 (incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2010).
10.7	Tax Receivable Agreement, dated as of May 10, 2005, by and among Ltd Sub A, Ltd Sub B and LFCM Holdings LLC (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.8	Employee Benefits Agreement, dated as of May 10, 2005, by and among the Registrant, Lazard Group LLC, LAZ-MD Holdings LLC and LFCM Holdings LLC (incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.9	Insurance Matters Agreement, dated as of May 10, 2005, by and between Lazard Group LLC and LFCM Holdings LLC (incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.10	License Agreement, dated as of May 10, 2005, by and among Lazard Strategic Coordination Company LLC, Lazard Frères & Co. LLC, Lazard Frères S.A.S., Lazard & Co., Holdings Limited and LFCM Holdings LLC (incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.11	Administrative Services Agreement, dated as of May 10, 2005, by and among LAZ-MD Holdings LLC, LFCM Holdings LLC and Lazard Group LLC (incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.12	Business Alliance Agreement, dated as of May 10, 2005, by and between Lazard Group LLC and LFCM Holdings LLC (incorporated by reference to Exhibit 10.8 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.13	Amendment and Consent, dated February 9, 2009, to the Business Alliance Agreement, dated as of May 10, 2005, by and between Lazard Group LLC and LFCM Holdings LLC (incorporated by reference to Exhibit 10.12 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on March 2, 2009).

75

10.14	Amended and Restated Operating Agreement of Lazard Strategic Coordination Company LLC, dated as of January 1, 2002 (incorporated by reference to Exhibit 10.16 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on February 11, 2005).
10.15	Lease, dated as of January 27, 1994, by and between Rockefeller Center Properties and Lazard Frères & Co. LLC (incorporated by reference to Exhibit 10.19 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on February 11, 2005).
10.16	Amendment dated as of February 16, 2011, by and among RCPI Landmark Properties, L.L.C. (as the successor in interest to Rockefeller Center Properties), RCPI 30 Rock 22234849, L.L.C. and Lazard Group LLC (as the successor in interest to Lazard Frères & Co. LLC), to the Lease dated as of January 27, 1994, by and among Rockefeller Center Properties and Lazard Frères & Co. LLC (incorporated by reference to Exhibit 10.16 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 29, 2011).
10.17	Lease with an Option to Purchase, dated as of July 11, 1990, by and between Sicomibail and Finabail and SCI du 121 Boulevard Hausmann (English translation) (incorporated by reference to Exhibit 10.20 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on February 11, 2005).
10.18	Occupational Lease, dated as of August 9, 2002, by and among Burford (Stratton) Nominee 1 Limited, Burford (Stratton) Nominee 2 Limited, Burford (Stratton) Limited, Lazard & Co., Limited and Lazard LLC (incorporated by reference to Exhibit 10.21 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on February 11, 2005).
10.19*	2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.21 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on May 2, 2005).
10.20*	Lazard Ltd’s 2008 Incentive Compensation Plan (incorporated by reference to Annex B to the Registrant’s Definitive Proxy Statement on Schedule 14A (File No. 001-32492) filed on March 24, 2008).
10.21*	2005 Bonus Plan (incorporated by reference to Exhibit 10.23 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on March 21, 2005).
10.22*	Form of Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of May 4, 2005, applicable to, and related Schedule I for each of Michael J. Castellano and Scott D. Hoffman (incorporated by reference to Exhibit 10.26 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.23*	Form of First Amendment, dated as of May 7, 2008, to Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of May 4, 2005, for each of Michael J. Castellano and Scott D. Hoffman (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on May 9, 2008).
10.24*	Second Amendment, dated as of February 26, 2009, to the Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of May 4, 2005 (as amended from time to time), for Michael J. Castellano (incorporated by reference to Exhibit 10.26 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on March 2, 2009).
10.25*	Second Amendment, dated as of February 23, 2011, to the Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of May 4, 2005 and amended as of May 7, 2008, for Scott D. Hoffman (incorporated by reference to Exhibit 10.25 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 29, 2011).
10.26*	Form of Agreement Relating to Retention and Noncompetition and Other Covenants (incorporated by reference to Exhibit 10.27 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on April 11, 2005).

76

10.27*	Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of October 4, 2004, by and between Lazard Group LLC and Alexander F. Stern (incorporated by reference to Exhibit 10.28 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on March 2, 2009).
10.28*	First Amendment, dated as of March 23, 2010, to the Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of October 4, 2004, with Alexander F. Stern (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on March 23, 2010).
10.29*	Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of March 18, 2005, by and between Lazard Group LLC and Kenneth M. Jacobs (incorporated by reference to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K (File No. 001-32492) filed on March 1, 2010).
10.30*	First Amendment, dated as of March 23, 2010, to the Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of March 18, 2005, with Kenneth M. Jacobs (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) field on March 23, 2010).
10.31*	Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of October 4, 2004, by and between Lazard Group LLC and Matthieu Bucaille (incorporated by reference to Exhibit 10.31 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 29, 2011).
10.32*	First Amendment, dated as of April 1, 2011, to the Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of October 4, 2004, between Lazard Group LLC and Matthieu Bucaille (incorporated by reference to Exhibit 10.32 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 29, 2011).
10.33*	Amended and Restated Letter Agreement, effective as of January 1, 2004, between Vernon E. Jordan, Jr. and Lazard Frères & Co. LLC (incorporated by reference to Exhibit 10.28 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.34*	Acknowledgement Letter, dated as of November 6, 2006 from Lazard Group LLC to certain managing directors of Lazard Group LLC modifying the terms of the retention agreements of persons party to the Amended and Restated Stockholders’ Agreement, dated as of November 6, 2006 (incorporated by reference to Exhibit 10.23 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on November 7, 2006).
10.35	Letter Agreement, dated as of March 15, 2005, from IXIS Corporate and Investment Bank to Lazard LLC and Lazard Ltd (incorporated by reference to Exhibit 10.27 to the Registrant’s Registration Statement (File No. 333-121407) on Form S-1/A filed on March 21, 2005).
10.36	Registration Rights Agreement, dated as of May 10, 2005, by and among Lazard Group Finance LLC, the Registrant, Lazard Group LLC and IXIS Corporate and Investment Bank (incorporated by reference to Exhibit 10.30 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on June 16, 2005).
10.37*	Description of Non-Executive Director Compensation (incorporated by reference to Exhibit 10.33 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q for the quarter ended June 30, 2005).
10.38*	Form of Award Letter for Annual Grant of Deferred Stock Units to Non-Executive Directors (incorporated by reference to Exhibit 99.1 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on September 8, 2005).
10.39*	Form of Agreement evidencing a grant of Restricted Stock Units to Executive Officers under the Lazard Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on January 26, 2006).

77

10.40*	Form of Agreement evidencing a grant of Restricted Stock Units to Executive Officers under the 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.41 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on March 2, 2009).
10.41*	Form of Agreement evidencing a grant of Deferred Cash Award to Executive Officers under the 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.42 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on March 2, 2009).
10.42*	Directors’ Fee Deferral Unit Plan (incorporated by reference to Exhibit 10.39 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on May 11, 2006).
10.43*	First Amended Form of Agreement evidencing a grant of Restricted Stock Units to Executive Officers under the Lazard 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.43 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on March 1, 2007).
10.44	Agreement and Plan of Merger, dated as of August 14, 2008, by and among Lazard Ltd, LAZ Sub I, Lazard Asset Management LLC and Lazard Asset Management Limited (incorporated by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on August 15, 2008).
10.45*	Letter Agreement regarding employment, dated as of April 21, 2010, between Lazard Group LLC and Gary W. Parr (incorporated by reference to Exhibit 10.53 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2010).
10.46*	Amendment, dated as of February 27, 2012 to Letter Agreement regarding employment, dated as of April 21, 2010, between Lazard Group LLC and Gary W. Parr (incorporated by reference to Exhibit 10.46 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on May 2, 2012).
10.47	Senior Revolving Credit Agreement, dated as of April 29, 2010, among Lazard Group LLC, the Banks from time to time parties thereto, and Citibank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.51 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on August 4, 2011).
10.48	Amendment No. 1, dated as of August 12, 2010, to the Senior Revolving Credit Agreement, dated as of April 29, 2010, among Lazard Group LLC, the Banks from time to time parties thereto, and Citibank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.48 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on February 29, 2011).
10.49	Amendment No. 2, dated as of December 17, 2010, to the Senior Revolving Credit Agreement, dated as of April 29, 2010, among Lazard Group LLC, the Banks from time to time parties thereto, and Citibank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.49 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on February 29, 2011).
10.50	Amendment No. 3, dated as of March 31, 2012, to the Senior Revolving Credit Agreement, dated as of April 29, 2010, among Lazard Group LLC, the Banks from time to time parties thereto, and Citibank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.50 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on May 2, 2012).
10.51*	Form of Agreement evidencing a grant of Restricted Stock under the 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.55 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2010).
10.52*	Form of Agreement evidencing a grant of Lazard Fund Interests under the 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.55 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 29, 2011).

78

10.53*	Form of Agreement evidencing a grant of Restricted Stock Units and Restricted Stock to Executive Officers who are or may become eligible for retirement under the 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.53 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on May 2, 2012).
10.54*	First Amendment, dated as of August 2, 2011, to the Agreement Relating to Retention and Noncompetition and Other Covenants, dated as of March 15, 2005, between Lazard Group LLC and Ashish Bhutani (incorporated by reference to Exhibit 10.56 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on August 4, 2011).
12.1	Computation of Ratio of Earnings to Fixed Charges.
31.1	Rule 13a-14(a) Certification of Kenneth M. Jacobs.
31.2	Rule 13a-14(a) Certification of Matthieu Bucaille.
32.1	Section 1350 Certification for Kenneth M. Jacobs.
32.2	Section 1350 Certification for Matthieu Bucaille.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

* Management contract or compensatory plan or arrangement.

79

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: July 31, 2012

LAZARD LTD
By:	/s/ Matthieu Bucaille
	Name: Matthieu Bucaille
	Title: Chief Financial Officer

By:	/s/ Richard J. Hittner
	Name: Richard J. Hittner
	Title: Chief Accounting Officer

80

EX-12.1

Exhibit 12.1

LAZARD LTD

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (a)

The following table sets forth the ratio of earnings to fixed charges for Lazard Ltd and its subsidiaries on a consolidated basis.

	Six  Months Ended June 30, 2012		Year Ended December 31,
			2011		2010			2009			2008			2007
			(dollars in thousands)
Operating income (loss)	$	82,356	$	235,499	$	243,650		$	(182,234	)	$	25,140		$	418,295
Add—Fixed charges		52,062		110,919		117,119			127,398			160,154			155,374
Operating income (loss) before fixed charges	$	134,418	$	346,418	$	360,769		$	(54,836	)	$	185,294		$	573,669
Fixed Charges:
Interest (b)	$	40,743	$	90,126	$	97,709		$	107,890		$	139,899		$	137,110
Other (c)		11,319		20,793		19,410			19,508			20,255			18,264
Total fixed charges	$	52,062	$	110,919	$	117,119		$	127,398		$	160,154		$	155,374
Ratio of earnings to fixed charges		2.58		3.12		3.08	(d)		–	(e)		1.16	(f)		3.69
Deficiency in the coverage of operating income (loss) before fixed charges to total fixed charges								$	182,234

Notes (dollars in thousands):

(a) For purposes of computing the ratio of earnings to fixed charges:

• earnings for the periods presented represent income before income taxes and fixed charges, and

• fixed charges represent the interest expense and the portion of rental expense which represents an appropriate interest factor.

(b) The Company’s policy is to include interest expense on unrecognized tax benefits in income tax expense. Accordingly, such interest expense is not included in the computations of the ratio of earnings to fixed charges.

(c) Other fixed charges consist of the interest factor in rentals.

(d) Operating income for the year ended December 31, 2010 is presented after giving effect to (i) a restructuring charge of $87,108, (ii) a charge of $24,860 relating to the amendment of Lazard’s retirement policy with respect to RSU awards and (iii) benefits pursuant to the tax receivable agreement of $8,834 relating to the aforementioned items. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 3.96.

(e) Operating loss for the year ended December 31, 2009 is presented after giving effect to (i) a restructuring charge of $62,550, (ii) the acceleration of amortization expense of $86,514 relating to the vesting of RSUs held by Lazard’s former Chairman and Chief Executive Officer as the result of his death in October 2009 and (iii) the acceleration of amortization expense of $60,512 relating to the accelerated vesting of the unamortized portion of previously awarded deferred cash incentive awards. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 1.21.

(f) On September 25, 2008, the Company, LAM and LAZ Sub I, LLC, a then newly-formed subsidiary of LFNY, completed the merger of LAZ Sub I, LLC with and into LAM (the “LAM Merger”). Prior to the LAM Merger, the common equity interests of LAM were held by LFNY, and certain other equity interests of LAM, representing contingent payments should certain specified fundamental transactions occur, were held by present and former employees of LAM. Following the LAM Merger, all equity interests of LAM are owned directly or indirectly by LFNY. Operating income for the year ended December 31, 2008 is presented after giving effect to a charge of $199,550 relating to the LAM Merger. Excluding the impact of such charge, the ratio of earnings to fixed charges would have been 2.40.

EX-31.1

EXHIBIT 31.1

I, Kenneth M. Jacobs, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 of Lazard Ltd (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: July 31, 2012

/s/    Kenneth M. Jacobs

Kenneth M. Jacobs

Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, Matthieu Bucaille, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 of Lazard Ltd (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: July 31, 2012

/s/    Matthieu Bucaille

Matthieu Bucaille

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

July 31, 2012

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Lazard Ltd (the “Registrant”) hereby certifies that the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/    Kenneth M. Jacobs

Kenneth M. Jacobs

Chairman and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

EXHIBIT 32.2

July 31, 2012

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Lazard Ltd (the “Registrant”) hereby certifies that the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/    Matthieu Bucaille

Matthieu Bucaille

Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

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Net Income Per Share Of Class A Common Stock (Tables)

6 Months Ended

Jun. 30, 2012

Net Income Per Share of Class A Common Stock [Abstract]

Company's basic and diluted net income per share and weighted average shares outstanding

The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month and six month periods ended June 30, 2012 and 2011 are presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net income attributable to Lazard Ltd		$30,821		$62,004		$56,373		$117,011
Add - adjustment associated with Class A common stock issuable on a non-contingent basis		2		103		2		199
Net income attributable to Lazard Ltd - basic		30,823		62,107		56,375		117,210
Add - dilutive effect, as applicable, of:
Adjustments to income relating to interest expense and changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests, net of tax		1,686		4,649		2,876		9,074
Net income attributable to Lazard Ltd - diluted		$32,509		$66,756		$59,251		$126,284
Weighted average number of shares of Class A common stock outstanding		117,478,380		115,326,051		118,079,120		113,503,750
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		756,940		3,781,335		653,311		3,717,320
Weighted average number of shares of Class A common stock outstanding - basic		118,235,320		119,107,386		118,732,431		117,221,070
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests		16,401,615		20,240,547		16,883,126		21,748,193
Weighted average number of shares of Class A common stock outstanding - diluted		134,636,935		139,347,933		135,615,557		138,969,263
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.26		$0.52		$0.47		$1.00
Diluted		$0.24		$0.48		$0.44		$0.91

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Business Acquisitions (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Jul. 15, 2009	Jun. 30, 2012 Additional Common Stock [Member]	Dec. 31, 2011 Class A common stock [Member]	Jul. 15, 2009 Class A common stock [Member]	Jun. 30, 2012 Earnout Shares [Member]	Dec. 31, 2011 Earnout Shares [Member]
Business Acquisition [Line Items]
Business acquisition number of common stock issued					1,142,857
Business acquisition, shares unrestricted or delivered				285,715			57,287
Business acquisition common stock issuable on a non-contingent basis			47,474	47,474
Business acquisition number of common stock issued subject to earnout criteria and payable over time						1,142,857
Business Acquisitions (Textual) [Abstract]
Aggregate fair value of the consideration recognized at the acquisition date		$ 61,624
Preferred stock, shares outstanding

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Equities	$ 212,314	$ 156,053
Derivatives	4,449	7,131
Securities sold, not yet purchased	1,097	4,282
Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Equities	212,314	156,053
Derivatives	4,449	7,131
Total Assets	431,974	371,765
Securities sold, not yet purchased	1,097	4,282
Derivatives	87,495	30,713
Total Liabilities	88,592	34,995
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Equities	168,187	115,380
Total Assets	214,700	160,030
Securities sold, not yet purchased	1,097	4,282
Total Liabilities	1,097	4,282
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Equities	43,936	37,332
Derivatives	4,449	7,131
Total Assets	98,476	78,635
Derivatives	87,495	30,713
Total Liabilities	87,495	30,713
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Equities	191	3,341
Total Assets	118,798	133,100
Debt [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	17,555	34,132
Debt [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	13,302	17,111
Debt [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	4,253	17,021
Interests in alternative asset management funds [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	36,500	20,610
Interests in alternative asset management funds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	31,884	13,569
Interests in alternative asset management funds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	4,616	7,041
Fixed Income Funds [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	47,165	31,121
Fixed Income Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	33,211	27,539
Fixed Income Funds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	13,954	3,582
Private equity [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	113,991	122,718
Private equity [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis
Investments	$ 113,991	$ 122,718

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Incentive Plans (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Schedule of issuance of RSUs and charges to retained earnings
Number of RSUs issued	310,756	140,613
Charges to retained earnings, net of estimated forfeitures	$ 7,277	$ 5,337

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Property - Net (Details) (USD $) In Thousands, unless otherwise specified					6 Months Ended			6 Months Ended				6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Buildings [Member]	Dec. 31, 2011 Buildings [Member]	Jun. 30, 2012 Buildings [Member] Maximum [Member]	Jun. 30, 2012 Leasehold improvements [Member]	Dec. 31, 2011 Leasehold improvements [Member]	Jun. 30, 2012 Leasehold improvements [Member] Maximum [Member]	Jun. 30, 2012 Leasehold improvements [Member] Minimum [Member]	Jun. 30, 2012 Furniture and equipment [Member]	Dec. 31, 2011 Furniture and equipment [Member]	Jun. 30, 2012 Furniture and equipment [Member] Maximum [Member]	Jun. 30, 2012 Furniture and equipment [Member] Minimum [Member]	Jun. 30, 2012 Construction in progress [Member]	Dec. 31, 2011 Construction in progress [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Useful Life					33 years			20 years	5 years			10 years	3 years
Property, Plant and Equipment, Gross	$ 459,979	$ 435,102	$ 158,939	$ 164,168		$ 167,957	$ 159,191			$ 108,025	$ 85,396			$ 25,058	$ 26,347
Less - Accumulated depreciation and amortization	261,690	266,673
Property - net	$ 198,289	$ 168,429

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Income Taxes (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	May 10, 2005 LFCM Holdings [Member]
Tax Receivable Agreement [Line Items]
Percentage of cash savings to pay per the tax receivable agreement					85.00%
Income Taxes (Textual) [Abstract]
Provision for income taxes	$ 10,371	$ 17,636	$ 19,138	$ 31,099
Income tax provisions, effective tax rates	23.30%	19.80%	23.20%	19.10%
U.S. federal statutory rate			35.00%

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Investments (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Gross unrealized investment gains and losses
Gross unrealized investment gains	$ 373	$ 641	$ 1,418	$ 1,214
Gross unrealized investment losses	$ 1,721	$ 193	$ 1,721	$ 313

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Property - Net (Tables)

6 Months Ended

Jun. 30, 2012

Property - Net [Abstract]

Property-net

At June 30, 2012 and December 31, 2011 property-net consists of the following:

	Estimated Depreciable Life in Years		June 30, 2012		December 31, 2011
Buildings		33	$	158,939	$	164,168
Leasehold improvements		5 - 20		167,957		159,191
Furniture and equipment		3 - 10		108,025		85,396
Construction in progress				25,058		26,347
Total				459,979		435,102
Less – Accumulated depreciation and amortization				261,690		266,673
Property-net			$	198,289	$	168,429

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Net Income Per Share of Class A Common Stock (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Company's basic and diluted net income per share and weighted average shares outstanding
Net income attributable to Lazard Ltd	$ 30,821	$ 62,004	$ 56,373	$ 117,011
Net income attributable to Lazard Ltd - basic	30,823	62,107	56,375	117,210
Weighted average number of shares common stock outstanding - basic	118,235,320	119,107,386	118,732,431	117,221,070
Weighted average number of shares of Class A common stock outstanding - diluted	134,636,935	139,347,933	135,615,557	138,969,263
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic	$ 0.26	$ 0.52	$ 0.47	$ 1.00
Diluted	$ 0.24	$ 0.48	$ 0.44	$ 0.91
Class A common stock [Member]
Company's basic and diluted net income per share and weighted average shares outstanding
Add - adjustment associated with Class A common stock issuable on a non-contingent basis	2	103	2	199
Adjustments to income relating to interest expense and changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests, net of tax	1,686	4,649	2,876	9,074
Net income attributable to Lazard Ltd - diluted	$ 32,509	$ 66,756	$ 59,251	$ 126,284
Weighted average number of shares common stock outstanding	117,478,380	115,326,051	118,079,120	113,503,750
Add - adjustment for shares common stock issuable on a non-contingent basis	756,940	3,781,335	653,311	3,717,320
Weighted average number of shares common stock outstanding - basic	118,235,320	119,107,386	118,732,431	117,221,070
Add - dilutive effect, as applicable, of: Weighted average number of incremental shares of common stock issuable from share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests	16,401,615	20,240,547	16,883,126	21,748,193
Weighted average number of shares of Class A common stock outstanding - diluted	134,636,935	139,347,933	135,615,557	138,969,263
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic	$ 0.26	$ 0.52	$ 0.47	$ 1.00
Diluted	$ 0.24	$ 0.48	$ 0.44	$ 0.91

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Incentive Plans (Details 4) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Summary of Fund Interests and Other Similar Deferred Compensation Arrangements
Prepaid Compensation Asset, Balance January 1, 2012	$ 17,782
Prepaid Compensation Asset, Granted	64,631
Prepaid Compensation Asset, Settled
Prepaid compensation asset forfeited	(1,008)
Prepaid Compensation Asset, Amortization (including grants of awards to retirement-eligible recipients)	(16,985)
Prepaid Compensation Asset, Decrease in fair value
Prepaid Compensation Asset, Foreign currency translation and other adjustments	979
Prepaid Compensation Asset, Balance, June 30, 2012	65,399
Compensation liability, Balance January 1, 2012	29,900
Compensation liability, Granted	64,631
Compensation liability, Settled	(8,641)
Compensation liability forfeited	(993)
Compensation liability, Amortization (including grants of awards to retirement-eligible recipients)
Compensation liability, Increase in fair value	(89)
Compensation liability, Foreign currency translation and other adjustments	833
Compensation liability, Balance, June 30, 2012	$ 85,641

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Goodwill and Other Intangible Assets (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Changes in the carrying amount of goodwill
Balance, January 1	$ 356,657	$ 313,229
Business acquisitions	4,272
Foreign currency translation adjustments	64	7,182
Balance, June 30	$ 360,993	$ 320,411

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Employee Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Pension Plans [Member]
Components of net benefit cost
Service cost	$ 166	$ 169	$ 338	$ 332
Interest cost	6,885	7,092	13,787	14,159
Expected return on plan assets	(6,622)	(7,644)	(13,294)	(15,266)
Amortization of:
Prior service cost	687	762	1,388	1,502
Net actuarial loss	420	66	831	129
Settlements loss	886		886
Net periodic benefit cost	2,422	445	3,936	856
Post-Retirement Medical Plans [Member]
Components of net benefit cost
Service cost	19	19	30	34
Interest cost	52	69	105	139
Expected return on plan assets
Amortization of:
Prior service cost
Net actuarial loss
Net periodic benefit cost	$ 71	$ 88	$ 135	$ 173

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Related Parties (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
LFCM Holdings [Member]
Related Parties (Textual) [Abstract]
Amounts recorded relating to the administrative services agreement	$ 702	$ 578	$ 1,515	$ 1,192
Amounts recorded relating to net referral fees for underwriting, private placement, and restructuring transactions	3,552	6,200	4,366	13,147
Amount receivables related to administrative and support services and reimbursement of expenses	3,825		3,825		11,862
Amount receivable related to referral fees for underwriting and private placement transactions	6,591		6,591		2,928
Payables relating to certain advances and referral fees	6,189		6,189		2,060
Amounts payables related to tax receivable agreement					2,790
LAZ-MD Holdings [Member]
Related Parties (Textual) [Abstract]
Revenue from administrative services	$ 187	$ 187	$ 375	$ 375
MBA Lazard Holdings S.A. [Member]
Related Parties (Textual) [Abstract]
Percentage of ownership	50.00%		50.00%

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Employee Benefit Plans (Details Textual)	3 Months Ended		6 Months Ended				3 Months Ended		6 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2012 GBP (£)	Jun. 30, 2011 USD ($)	Dec. 31, 2011 USD ($)	Jun. 30, 2012 Payments From 2014 Through 2020 [Member] GBP (£)	Jun. 30, 2012 U.S. Pension Plans [Member] USD ($)	Jun. 30, 2012 U.S. Pension Plans [Member] GBP (£)	Dec. 31, 2011 U.S. Pension Plans [Member] GBP (£)
Defined Benefit Plan Disclosure [Line Items]
Employer contribution in current fiscal year						$ 3,687,000				£ 2,300,000
Additional contribution to plan assets from escrow account							1,000,000
Company's contribution to U.K. pension plans			1,576,000						1,000,000
Total acturial losses								1,935,000
Settlements loss								886,000
Net charges to OCI	(3,457,000)	55,000	(6,054,000)		(3,630,000)			1,049,000
Employee Benefit Plans (Textual) [Abstract]
Contribution each year from 2012 through 2020				1,000,000
Pension contributions			700,000
Amend and extend existing escrow				10,200,000
Aggregate amount in account security arrangement	16,000,000		16,000,000
Contributions to other non-U.S. pension plans

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Incentive Plans (Details 2) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
RSUs [Member]
Schedule of Activity Relating To RSUs and DSUs
Units, Beginning Balance	20,751,829	22,108,635
Units, Granted/Exchanged	7,847,541	6,309,310
Units, Forfeited	(311,601)	(223,365)
Units, Vested	(3,631,932)	(7,616,386)
Units, Ending Balance	24,655,837	20,578,194
Weighted Average Grant Date Fair Value, Beginning Balance	$ 36.84	$ 35.67
Weighted Average Grant Date Fair Value, Granted	$ 27.51	$ 44.93
Weighted Average Grant Date Fair Value, Forfeited	$ 35.46	$ 37.90
Weighted Average Grant Date Fair Value, Vested	$ 33.83	$ 39.21
Weighted Average Grant Date Fair Value, Ending Balance	$ 34.32	$ 37.18
DSUs [Member]
Schedule of Activity Relating To RSUs and DSUs
Units, Beginning Balance	140,660	121,737
Units, Granted/Exchanged	55,224	29,801
Units, Forfeited
Units, Vested		(16,120)
Units, Ending Balance	195,884	135,418
Weighted Average Grant Date Fair Value, Beginning Balance	$ 34.83	$ 34.46
Weighted Average Grant Date Fair Value, Granted	$ 23.32	$ 37.72
Weighted Average Grant Date Fair Value, Forfeited
Weighted Average Grant Date Fair Value, Vested		$ 34.76
Weighted Average Grant Date Fair Value, Ending Balance	$ 31.58	$ 35.14

XML

Net Income Per Share of Class A Common Stock

6 Months Ended

Jun. 30, 2012

Net Income Per Share of Class A Common Stock [Abstract]

NET INCOME PER SHARE OF CLASS A COMMON STOCK

16. NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company’s basic and diluted net income per share calculations for the three month and six month periods ended June 30, 2012 and 2011 are computed as described below.

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods, plus applicable adjustments to such net income associated with the inclusion of shares of Class A common stock issuable on a non-contingent basis.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods, plus applicable adjustments to such shares associated with shares of Class A common stock issuable on a non-contingent basis.

Diluted Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods as in the basic net income per share calculation described above, plus, to the extent applicable and dilutive, (i) interest expense on convertible debt, (ii) changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt and convertible preferred stock and, on an “as-if-exchanged” basis, amounts applicable to LAZ-MD Holdings exchangeable interests and (iii) income tax related to (i) and (ii) above.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock to settle share-based incentive compensation, convertible debt, convertible preferred stock and LAZ-MD Holdings exchangeable interests, using the “treasury stock” method, the “if converted” method or the “as-if-exchanged” basis, as applicable.

The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month and six month periods ended June 30, 2012 and 2011 are presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net income attributable to Lazard Ltd		$30,821		$62,004		$56,373		$117,011
Add - adjustment associated with Class A common stock issuable on a non-contingent basis		2		103		2		199
Net income attributable to Lazard Ltd - basic		30,823		62,107		56,375		117,210
Add - dilutive effect, as applicable, of:
Adjustments to income relating to interest expense and changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests, net of tax		1,686		4,649		2,876		9,074
Net income attributable to Lazard Ltd - diluted		$32,509		$66,756		$59,251		$126,284
Weighted average number of shares of Class A common stock outstanding		117,478,380		115,326,051		118,079,120		113,503,750
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		756,940		3,781,335		653,311		3,717,320
Weighted average number of shares of Class A common stock outstanding - basic		118,235,320		119,107,386		118,732,431		117,221,070
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation, convertible debt in 2011, convertible preferred stock and exchangeable interests		16,401,615		20,240,547		16,883,126		21,748,193
Weighted average number of shares of Class A common stock outstanding - diluted		134,636,935		139,347,933		135,615,557		138,969,263
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.26		$0.52		$0.47		$1.00
Diluted		$0.24		$0.48		$0.44		$0.91

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Fair Value of Certain Investments Based on NAV
Fair Value	$ 206,754	$ 185,970
Unfunded Commitments	35,726	52,197
Equities [Member]
Fair Value of Certain Investments Based on NAV
Fair Value	43,908	40,512
% of Fair Value Not Redeemable	2.00%	2.00%
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years	1.00%	1.00%
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years	0.00%	0.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter	1.00%	1.00%
Investments Redeemable, Redemption Frequency	Quarterly	Quarterly
Investments Redeemable, Redemption Notice Period	60 Days	60 Days
Interests in alternative asset management funds [Member]
Fair Value of Certain Investments Based on NAV
Fair Value	36,500	20,600
% of Fair Value Not Redeemable	0.00%	0.00%
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years	0.00%	0.00%
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years	0.00%	0.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter	0.00%	0.00%
Investments Redeemable, Redemption Frequency	Quarterly	Quarterly
Investments Redeemable, Redemption Notice Period	>90 Days	> 90 Days
Fixed Income Funds [Member]
Fair Value of Certain Investments Based on NAV
Fair Value	13,954	3,582
% of Fair Value Not Redeemable	0.00%	0.00%
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years	0.00%	0.00%
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years	0.00%	0.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter	0.00%	0.00%
Investments Redeemable, Redemption Frequency	Monthly	Monthly
Investments Redeemable, Redemption Notice Period	60 Days	60 Days
Private equity [Member]
Fair Value of Certain Investments Based on NAV
Fair Value	112,392	121,276
Unfunded Commitments	$ 35,726	$ 52,197
% of Fair Value Not Redeemable	100.00%	100.00%
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years	25.00%	33.00%
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years	35.00%	28.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter	40.00%	39.00%

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Organization and Basis of Presentation (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2012 Segment	Jun. 30, 2012 Lazard Group [Member]	Dec. 31, 2011 Lazard Group [Member]	Jun. 30, 2012 LAZ-MD Holdings LLC [Member]	Dec. 31, 2011 LAZ-MD Holdings LLC [Member]	Jun. 30, 2012 Class A common stock [Member]	Dec. 31, 2011 Class A common stock [Member]	Jun. 30, 2012 Class B common stock [Member]	Dec. 31, 2011 Class B common stock [Member]	Jun. 30, 2012 Class B common stock [Member] LAZ-MD Holdings LLC [Member]	Dec. 31, 2011 Class B common stock [Member] LAZ-MD Holdings LLC [Member]
Organization And Basis of Presentation [Line Items]
Common membership voting power held										5.10%	5.20%
Common membership interests held		94.90%	94.80%	5.10%	5.20%
Common stock, par value						$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, shares outstanding								1	1	1
Common stock, shares issued						123,196,012	123,009,311	1	1	1
Organization and Basis of Presentation (Textual) [Abstract]
Number of business segments	2
Governing Operating Agreement, Date	May 10, 2005

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Incentive Plans (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
RSUs [Member]
Disclosure Of Compensation Related Costs Share Based Payments (Textual) [Abstract]
Dividend participation rights	310,756,000	140,613,000
Company satisfied employees' tax obligations in lieu of issuing vested stock	967,828	2,226,829
Unrecognized compensation expense for Restricted Stock and Restricted Stock Units	$ 311,000
Unrecognized compensation expense, years	1 year 4 months 24 days
DSUs [Member]
Disclosure Of Compensation Related Costs Share Based Payments (Textual) [Abstract]
Portion of annual compensation elected to be paid in DSUs in lieu of cash	49,735,000	26,859,000
Delivery of common stock associated with stock awards	5,489,000	2,942,000
Company satisfied employees' withholding taxes in lieu delivering, shares	28,129,000
Restricted Stock [Member]
Disclosure Of Compensation Related Costs Share Based Payments (Textual) [Abstract]
Unrecognized compensation expense for Restricted Stock and Restricted Stock Units	$ 10,000
Unrecognized compensation expense, years	1 year 10 months 24 days
Company satisfied employees' withholding taxes in lieu delivering, shares		68,866,000
Class A common stock [Member]
Disclosure Of Compensation Related Costs Share Based Payments (Textual) [Abstract]
Shares authorized pertaining to share based compensation arrangements, 2005 Plan	25,000,000
Company satisfied employees' tax obligations in lieu of issuing vested stock	2,664,104	5,389,557
Company satisfied employees' withholding taxes in lieu delivering, shares	103,614,000	258,372,000
Non-Executive Members [Member]
Disclosure Of Compensation Related Costs Share Based Payments (Textual) [Abstract]
Percentage of annual compensation received by directors in the form of DSUs	55.00%
Awarded Under 2008 Plan [Member] | Class A common stock [Member]
Disclosure Of Compensation Related Costs Share Based Payments (Textual) [Abstract]
Percentage of outstanding Class A common stock	30.00%
Lazard Fund Interest [Member]
Disclosure Of Compensation Related Costs Share Based Payments (Textual) [Abstract]
Amortization of prepaid compensation asset, weighted average recognition period, years	2 years 1 month 6 days

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Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2012

Incentive Plans [Abstract]

Summary of the impact of share-based incentive plans on compensation and benefits expense

The following is a summary of the impact of share-based incentive plans on “compensation and benefits” expense within the Company’s accompanying condensed consolidated statements of operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Share-based incentive compensation:
RSUs		$63,428	$	57,552		$145,319	$	142,410
Deferred stock units (“DSUs”)		1,218		1,068		1,288		1,124
Restricted stock		1,704		356		5,879		8,999
Total		$66,350	$	58,976		$152,486	$	152,533

Schedule of issuance of RSUs and charges to retained earnings

	Six Months Ended June 30,
	2012		2011
Number of RSUs issued		310,756		140,613
Charges to retained earnings, net of estimated forfeitures		$7,277		$5,337

Schedule of Activity Relating to RSUs and DSUs

The following is a summary of activity relating to RSUs and DSUs during the six month periods ended June 30, 2012 and 2011:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units			Weighted Average Grant Date Fair Value
Balance, January 1, 2012		20,751,829		$	36.84		140,660		$	34.83
Granted (including 310,756 RSUs relating to dividend participation)		7,847,541		$	27.51		55,224		$	23.32
Forfeited		(311,601	)	$	35.46		–			–
Vested		(3,631,932	)	$	33.83		–			–
Balance, June 30, 2012		24,655,837		$	34.32		195,884		$	31.58
Balance January 1, 2011		22,108,635		$	35.67		121,737		$	34.46
Granted (including 140,613 RSUs relating to dividend participation)		6,309,310		$	44.93		29,801		$	37.72
Forfeited		(223,365	)	$	37.90		–			–
Vested		(7,616,386	)	$	39.21		(16,120	)	$	34.76
Balance, June 30, 2011		20,578,194		$	37.18		135,418		$	35.14

Summary of Activity Related to Shares of Restricted Class A Common Stock

The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the six month periods ended June 30, 2012 and 2011:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2012		95,332		$	37.63
Granted/Exchanged		577,323		$	29.25
Forfeited		(18,921	)	$	29.51
Vested		(131,743	)	$	28.63
Balance, June 30, 2012		521,991		$	30.93
Balance, January 1, 2011		95,332		$	37.63
Granted		327,238		$	43.70
Vested		(327,238	)	$	43.70
Balance, June 30, 2011		95,332		$	37.63

Summary of Fund Interests and Other Similar Deferred Compensation Arrangements

The following is a summary of activity relating to Lazard Fund Interests and other similar deferred compensation arrangements during the six month period ended June 30, 2012:

	Prepaid Compensation Asset			Compensation   Liability
Balance, January 1, 2012	$	17,782		$	29,900
Granted		64,631			64,631
Settled		–			(8,641)
Forfeited		(1,008)			(993)
Amortization (including grants of awards to retirement-eligible recipients)		(16,985	)		–
Decrease in fair value		–			(89	)
Other		979			833
Balance, June 30, 2012	$	65,399		$	85,641

Summary of the impact of Fund Interests and other similar deferred compensation

	Three Months Ended June  30,					Six Months Ended June 30,
	2012			2011		2012			2011
Amortization (including grants of awards to retirement-eligible recipients)		$10,800			$2,413		$16,985			$5,054
Change in fair value of compensation liability		(2,856	)		–		(89	)		–
Total		$7,944			$2,413		$16,896			$5,054

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Derivatives (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair values of the Company's derivative instruments
Derivative Assets	$ 4,449	$ 7,131
Derivative Liabilities	87,495	30,713
Forward foreign currency exchange rate contracts [Member]
Fair values of the Company's derivative instruments
Derivative Assets	1,084	4,245
Derivative Liabilities	1,491	445
Interest rate swaps [Member]
Fair values of the Company's derivative instruments
Derivative Liabilities	247	277
Equity and fixed income swaps [Member]
Fair values of the Company's derivative instruments
Derivative Liabilities	116	91
Equity and fixed income swaps and other [Member]
Fair values of the Company's derivative instruments
Derivative Assets	3,365	2,886
Lazard Fund Interests and other similar deferred compensation arrangements [Member]
Fair values of the Company's derivative instruments
Derivative Liabilities	$ 85,641	$ 29,900

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Stockholders' Equity (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Net income attributable to noncontrolling interests
Net Income (Loss) Attributable To Noncontrolling Interests	$ 3,341	$ 9,562	$ 6,845	$ 14,538
Noncontrolling interests	121,983		121,983		140,713
LAZ-MD Holdings [Member]
Net income attributable to noncontrolling interests
Net Income (Loss) Attributable To Noncontrolling Interests	1,694	4,012	3,019	7,746
Noncontrolling interests	34,506		34,506		31,954
Edgewater [Member]
Net income attributable to noncontrolling interests
Net Income (Loss) Attributable To Noncontrolling Interests	1,698	5,882	3,872	6,905
Noncontrolling interests	86,235		86,235		91,713
Other Noncontrolling Interests [Member]
Net income attributable to noncontrolling interests
Net Income (Loss) Attributable To Noncontrolling Interests	(51)	(332)	(46)	(113)
Noncontrolling interests	$ 1,242		$ 1,242		$ 17,046

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Senior Debt (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Senior debt
Senior debt, Outstanding	$ 1,076,850	$ 1,076,850
Lazard Group 7.125% Senior Notes [Member]
Senior debt
Senior Debt, Initial Principal Amount	550,000
Senior Debt, Maturity Date	May 15, 2015
Senior Debt, Annual Interest Rate	7.125%
Senior debt, Outstanding	528,500	528,500
Lazard Group 6.85% Senior Notes [Member]
Senior debt
Senior Debt, Initial Principal Amount	600,000
Senior Debt, Maturity Date	Jun. 15, 2017
Senior Debt, Annual Interest Rate	6.85%
Senior debt, Outstanding	548,350	548,350
Lazard Group Credit Facility [Member]
Senior debt
Senior Debt, Initial Principal Amount	$ 150,000
Senior Debt, Maturity Date	Apr. 29, 2013
Senior Debt, Annual Interest Rate	1.92%

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Investments (Details Textual) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Investment (Textual) [Abstract]
Lazard Fund Interests in Equities	$ 73,174	$ 19,857
Lazard Fund Interests in alternative asset management funds	3,512	2,256
Lazard Fund Interests in fixed income funds	20,237	5,212
Economic interests that are owned by the leadership team and other investors in the Edgewater Funds	$ 19,932	$ 18,502

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (Unaudited) (Common Stock, USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012		Jun. 30, 2011		Dec. 31, 2011		Dec. 31, 2010
Common stock, issued	123,196,013	[1]	120,426,322	[2]	123,009,312	[1]	119,697,937	[2]
Class A common stock
Common stock, issued	123,196,012		120,426,321		123,009,311		119,697,936
Share-based incentive compensation and related tax benefits	$ 972		$ 2,178
Class B common stock
Common stock, issued	1		1		1		1

[1] Includes 123,009,311 and 123,196,012 shares of the Company's Class A common stock issued at January 1, 2012 and June 30, 2012, respectively, and 1 share of the Company's Class B common stock issued at each such date.

[2] Includes 119,697,936 and 120,426,321 shares of the Company's Class A common stock issued at January 1, 2011 and June 30, 2011, respectively, and 1 share of the Company's Class B common stock issued at each such date.

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Senior Debt (Details Textual) (USD $) In Thousands, unless otherwise specified					6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 LFB [Member]	Jun. 30, 2012 Edgewater [Member]	Jun. 30, 2012 Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Senior Debt, Maturity Date					Apr. 01, 2013
Revolving Credit Facility annual interest rate					1.92%
Unused line of credit facility available	$ 299,000		$ 88,000	$ 55,000
Senior Debt (Textual) [Abstract]
Senior revolving credit facility over next 3 years	150,000
Fair value of senior debt	1,186,000	1,138,000
Fair value of senior debt in excess of the aggregate carrying value	109,000	61,000
Outstanding Credit Facility	$ 0	$ 0

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Receivables - Net (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Receivables Net (Textual) [Abstract]
Allowance for doubtful accounts receivables	$ 20,756		$ 20,756		$ 19,450
Bad debt expense (recoveries)	(133)	2,463	1,148	3,430
Charge-offs, foreign currency translation and other adjustments	(283)	(1,435)	158	(1,922)
Receivables deemed past due or uncollectible	$ 22,857		$ 22,857		$ 22,785

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Recent Accounting Developments (Policies)

6 Months Ended

Jun. 30, 2012

RECENT ACCOUNTING DEVELOPMENTS [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2011 (the “Form 10-K”). The accompanying December 31, 2011 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. 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 six month periods ended June 30, 2012 are not necessarily indicative of the results to be expected for any future interim or annual period.

The condensed consolidated financial statements include Lazard Ltd, Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”) along with its subsidiaries, LFB and LFG, and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries.

The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities (“VIEs”) where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company is the general partner, unless the presumption of control is overcome. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated.

Fair Value Measurements

Fair Value Measurements—In the first quarter of 2012, the Company adopted the amended fair value measurement guidance issued by the Financial Accounting Standards Board (the “FASB”), which the FASB stated was designed to achieve common fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”). Although many of the changes for U.S. GAAP purposes are clarifications of existing guidance or wording changes to align with IFRS, additional disclosures about fair value measurements are required, including (i) a quantitative disclosure of the unobservable inputs and assumptions used in the measurement, (ii) the valuation processes used and the sensitivity of fair value measurements related to investments categorized within Level 3 of the hierarchy of fair value measurements to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any, and (iii) the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial condition but for which the fair value is required to be disclosed. The amended fair value measurement guidance became effective for interim and annual periods beginning after December 15, 2011 and is applied prospectively. The adoption of the amended fair value measurement guidance did not have a material impact on the Company’s consolidated financial statements, primarily because substantially all Level 3 assets are carried at net asset value (“NAV”) or its equivalent.

Other Comprehensive Income

Other Comprehensive Income—In the first quarter of 2012, the Company adopted the FASB’s amended guidance regarding the presentation of comprehensive income, which the FASB stated was designed to improve comparability, consistency and transparency. The amendment required that all changes in comprehensive income be presented either in (i) a single continuous statement of comprehensive income or in (ii) two separate but consecutive statements. The amendment was to be applied retrospectively and is effective with interim and annual periods beginning after December 15, 2011, with early adoption permitted. The Company elected the two-statement method.

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Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

SEGMENT INFORMATION

19. 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 two business segments as described in Note 1 above - Financial Advisory and Asset Management. In addition, as described in Note 1 above, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month and six month periods ended June 30, 2012 and 2011 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 revenue, 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, 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 June 30,						Six Months Ended June 30,
		2012			2011			2012			2011
Financial Advisory
	Net Revenue	$	242,624		$	249,191		$	519,820		$	478,036
	Operating Expenses		231,200			214,217			481,097			427,783
	Operating Income	$	11,424		$	34,974		$	38,723		$	50,253
Asset Management
	Net Revenue	$	211,053		$	244,855		$	425,580		$	471,708
	Operating Expenses		156,619			160,914			317,120			310,118
	Operating Income	$	54,434		$	83,941		$	108,460		$	161,590
Corporate
	Net Revenue	$	(16,767	)	$	(16,754	)	$	(22,451	)	$	(34,429	)
	Operating Expenses		4,558			12,959			42,376			14,766
	Operating Loss	$	(21,325	)	$	(29,713	)	$	(64,827	)	$	(49,195	)
Total
	Net Revenue	$	436,910		$	477,292		$	922,949		$	915,315
	Operating Expenses		392,377			388,090			840,593			752,667
	Operating Income	$	44,533		$	89,202		$	82,356		$	162,648

	As Of
	June 30, 2012		December 31, 2011
Total Assets
Financial Advisory	$	747,456	$	767,699
Asset Management		491,239		583,524
Corporate		1,739,159		1,730,713
Total	$	2,977,854	$	3,081,936

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Goodwill and Other Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Components of goodwill and other intangible assets
Goodwill	$ 360,993	$ 356,657	$ 320,411	$ 313,229
Other intangible assets (net of accumulated amortization)	33,175	36,442
Goodwill and other intangible assets, Total	$ 394,168	$ 393,099

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Investments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Company's investments and securities sold, not yet purchased
Debt	$ 20,270	$ 36,966
Equities	212,314	156,053
Other	207,099	185,502
Total	439,683	378,521
Investments, at fair value	427,525	364,634
Interest-bearing deposits (included in "debt" above)	2,715	2,834
Securities sold, not yet purchased, at fair value (included in "other liabilities")	1,097	4,282
Fixed Income Funds [Member]
Company's investments and securities sold, not yet purchased
Other	47,165	31,121
Interests in alternative asset management funds [Member]
Company's investments and securities sold, not yet purchased
Other	36,500	20,610
Private equity [Member]
Company's investments and securities sold, not yet purchased
Other	113,991	122,718
Equity Method Investments [Member]
Company's investments and securities sold, not yet purchased
Other	$ 9,443	$ 11,053

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Investments (Tables)

6 Months Ended

Jun. 30, 2012

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 June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
Debt	$	20,270	$	36,966
Equities (a)		212,314		156,053
Other:
Interests in alternative asset management funds (a)		36,500		20,610
Fixed income funds (a)		47,165		31,121
Private equity		113,991		122,718
Equity method investments		9,443		11,053
		207,099		185,502
Total		439,683		378,521
Less:
Interest-bearing deposits (included in “debt” above)		2,715		2,834
Equity method investments		9,443		11,053
Investments, at fair value	$	427,525	$	364,634
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	1,097	$	4,282

(a) Equities, interests in alternative asset management funds and fixed income funds include investments with fair values of $73,174, $3,512 and $20,237, respectively, at June 30, 2012 and $19,857, $2,256 and $5,212, respectively, at December 31, 2011, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“Lazard Fund Interests”) and other similar deferred compensation arrangements. Lazard Fund Interests represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds (see Notes 6 and 13 of Notes to Condensed Consolidated Financial Statements).

Recognized gross investment gains and losses on investments

During the three month and six month periods ended June 30, 2012 and 2011, the Company recognized gross investment gains and losses in “revenue-other” on its condensed consolidated statements of operations as follows:

	Three Month Period Ended  June 30,				Six Month Period  Ended June 30,
	2012		2011		2012		2011
Gross investment gains	$	1,715	$	8,830	$	29,359	$	15,205
Gross investment losses	$	3,052	$	2,235	$	4,036	$	3,251

Schedule of trading securities gross unrealized investment gains and losses

The table above includes gross unrealized investment gains and losses pertaining to “trading” securities as follows:
	Three Month Period Ended June 30,				Six Month Period Ended June 30,
	2012		2011		2012		2011
Gross unrealized investment gains	$	373	$	641	$	1,418	$	1,214
Gross unrealized investment losses	$	1,721	$	193	$	1,721	$	313

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis

The following tables present the categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011 into the three-level fair value hierarchy in accordance with fair value measurement disclosure requirements:

	June 30, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	13,302	$	4,253	$	–	$	17,555
Equities		168,187		43,936		191		212,314
Other (excluding equity method investments):
Interests in alternative asset management funds		–		31,884		4,616		36,500
Fixed income funds		33,211		13,954		–		47,165
Private equity		–		–		113,991		113,991
Derivatives		–		4,449		–		4,449
Total	$	214,700	$	98,476	$	118,798	$	431,974
Liabilities:
Securities sold, not yet purchased	$	1,097	$	–	$	–	$	1,097
Derivatives		–		87,495		–		87,495
Total	$	1,097	$	87,495	$	–	$	88,592
	December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	17,111	$	17,021	$	–	$	34,132
Equities		115,380		37,332		3,341		156,053
Other (excluding equity method investments):
Interests in alternative asset management funds		–		13,569		7,041		20,610
Fixed income funds		27,539		3,582		–		31,121
Private equity		–		–		122,718		122,718
Derivatives		–		7,131		–		7,131
Total	$	160,030	$	78,635	$	133,100	$	371,765
Liabilities:
Securities sold, not yet purchased	$	4,282	$	–	$	–	$	4,282
Derivatives		–		30,713		–		30,713
Total	$	4,282	$	30,713	$	–	$	34,995

Summary of changes in fair value of the Company's Level 3 assets

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets for the three month and six month periods ended June 30, 2012 and 2011:

	Three Months Ended June 30, 2012
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)			Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	227	$	5		$	–	$	(30	)	$	(11	)	$	191
Interests in alternative asset management funds		5,905		(38	)		10		(1,261	)		–			4,616
Private equity		116,563		4,786			56		(4,873	)		(2,541	)		113,991
Total Level 3 Assets	$	122,695	$	4,753		$	66	$	(6,164	)	$	(2,552	)	$	118,798

	Six Months Ended June 30, 2012
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	3,341	$	5	$	10	$	(3,160	)	$	(5	)	$	191
Interests in alternative asset management funds		7,041		89		10		(2,524	)		–			4,616
Private equity		122,718		12,350		2,752		(22,745	)		(1,084	)		113,991
Total Level 3 Assets	$	133,100	$	12,444	$	2,772	$	(28,429	)	$	(1,089	)	$	118,798

	Three Months Ended June 30, 2011
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Investments:
Equities	$	129	$	3	$	–	$	–		$	3	$	135
Private equity		171,487		3,545		922		(2,052	)		802		174,704
Total Level 3 Assets	$	171,616	$	3,548	$	922	$	(2,052	)	$	805	$	174,839

	Six Months Ended June 30, 2011
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Investments:
Equities	$	316	$	3	$	–	$	(195	)	$	11	$	135
Private equity		163,482		3,824		13,075		(9,160	)		3,483		174,704
Total Level 3 Assets	$	163,798	$	3,827	$	13,075	$	(9,355	)	$	3,494	$	174,839

(a) Earnings for the three month and six month periods ended June 30, 2012 and three month and six month periods ended June 30, 2011 include net unrealized gains of $3,483, $9,563, $3,538 and $3,817, respectively.

Fair value of certain investments based on NAV

Fair Value of Certain Investments Based on NAV—The Company’s Level 2 and Level 3 investments at June 30, 2012 and December 31, 2011 include certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value. Information with respect thereto was as follows:

	June 30, 2012
					% of			Estimated Liquidation Period of Investments Not Redeemable									Investments Redeemable
	Fair Value		Unfunded Commitments		Fair Value Not Redeemable			% Next 5 Years			% 5-10 Years			% Thereafter			Redemption Frequency	Redemption Notice Period
Equity funds	$	43,908	$	–		2	%		1	%		0	%		1	%	Quarterly	60 Days
Interests in alternative asset management funds		36,500		–		0	%		0	%		0	%		0	%	Quarterly	>90 Days
Fixed income funds		13,954		–		0	%		0	%		0	%		0	%	Monthly	60 Days
Private equity funds		112,392		35,726		100	%		25	%		35	%		40	%	NA	NA
Total	$	206,754	$	35,726
	December 31, 2011
					% of			Estimated Liquidation Period of Investments Not Redeemable									Investments Redeemable
	Fair Value		Unfunded Commitments		Fair Value Not Redeemable			% Next 5 Years			% 5-10 Years			% Thereafter			Redemption Frequency	Redemption Notice Period
Equity funds	$	40,512	$	–		2	%		1	%		0	%		1	%	Quarterly	60 Days
Interests in alternative asset management funds		20,600		–		0	%		0	%		0	%		0	%	Quarterly	>90 Days
Fixed income funds		3,582		–		0	%		0	%		0	%		0	%	Monthly	60 Days
Private equity funds		121,276		52,197		100	%		33	%		28	%		39	%	NA	NA
Total	$	185,970	$	52,197

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $) In Thousands, unless otherwise specified		Total	Series A Preferred stock	Common Stock		Additional Paid-In-Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net of Tax	Class A Common Stock Held By a Subsidiary	Total Lazard Ltd Stockholders' Equity	Noncontrolling Interests
Beginning balance at Dec. 31, 2010		$ 796,117		$ 1,197		$ 758,841	$ 166,468	$ (46,158)	$ (227,950)	$ 652,398	$ 143,719
Beginning balance (in shares) at Dec. 31, 2010			22,021	119,697,937	[1]				6,847,508
Comprehensive income (loss):
Net income		131,549					117,011			117,011	14,538
Other comprehensive income (loss) - net of tax:
Currency translation adjustments		32,174						30,418		30,418	1,756
Amortization of interest rate hedge		527						498		498	29
Employee benefit plans:
Net actuarial loss		(3,630)						(3,434)		(3,434)	(196)
Adjustments for items reclassified to earnings		1,114						1,054		1,054	60
Comprehensive income		161,734								145,547	16,187
Business acquisitions and related equity transactions:
Class A common stock issued/issuable (including related amortization)		4,420				4,180				4,180	240
Amortization of share-based incentive compensation		152,533				144,261				144,261	8,272
Dividend-equivalents		(35)				5,958	(5,991)			(33)	(2)
Class A common stock dividends		(32,855)					(32,855)			(32,855)
Purchase of Class A common stock		(126,237)							(126,237)	(126,237)
Purchase of Class A common stock (in shares)									3,156,416
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefits of $972 and $2,178 for 2012 and 2011, respectively		(88,457)				(282,956)			194,424	(88,532)	75
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefits (in shares)									(5,664,049)
Repurchase of common membership interests from LAZ-MD Holdings		(794)				(751)				(751)	(43)
Class A common stock issued in exchange for Lazard Group common membership interests, Value				7		(7)
Class A common stock issued in exchange for Lazard Group common membership interests (in shares)	[1]			728,385
Adjustment related to the change in Lazard Ltd's ownership in Lazard Group		(1,580)				(1,580)				(1,580)
Distributions to noncontrolling interests, net		(7,054)									(7,054)
Adjustments related to noncontrolling interests						14,323		(205)		14,118	(14,118)
Ending balance at Jun. 30, 2011		857,792		1,204		642,269	244,633	(17,827)	(159,763)	710,516	147,276
Ending balance (in shares) at Jun. 30, 2011			22,021	120,426,322	[1]				4,339,875
Beginning balance at Dec. 31, 2011		866,856		1,230		659,013	258,646	(88,364)	(104,382)	726,143	140,713
Beginning balance (in shares) at Dec. 31, 2011			7,921	123,009,312	[2]				3,492,017
Comprehensive income (loss):
Net income		63,218					56,373			56,373	6,845
Other comprehensive income (loss) - net of tax:
Currency translation adjustments		(1,954)						(2,004)		(2,004)	50
Amortization of interest rate hedge		527						500		500	27
Employee benefit plans:
Net actuarial loss		(6,054)						(5,747)		(5,747)	(307)
Adjustments for items reclassified to earnings		1,641						1,558		1,558	83
Comprehensive income		57,378								50,680	6,698
Business acquisitions and related equity transactions:
Class A common stock issued/issuable (including related amortization)		3,018				2,865				2,865	153
Amortization of share-based incentive compensation		152,486				144,766				144,766	7,720
Dividend-equivalents		(52)				7,277	(7,326)			(49)	(3)
Class A common stock dividends		(43,011)					(43,011)			(43,011)
Purchase of Class A common stock		(152,413)							(152,413)	(152,413)
Purchase of Class A common stock (in shares)									5,706,592
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefits of $972 and $2,178 for 2012 and 2011, respectively		(30,393)				(119,757)			89,413	(30,344)	(49)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefits (in shares)									(2,808,832)
Class A common stock issued in exchange for Lazard Group common membership interests, Value				2		(2)
Class A common stock issued in exchange for Lazard Group common membership interests (in shares)	[2]			186,701
Distributions to noncontrolling interests, net		(12,678)									(12,678)
Deconsolidation of investment companies		(14,783)									(14,783)
Adjustments related to noncontrolling interests						5,902		(114)		5,788	(5,788)
Ending balance at Jun. 30, 2012		$ 826,408		$ 1,232		$ 700,064	$ 264,682	$ (94,171)	$ (167,382)	$ 704,425	$ 121,983
Ending balance (in shares) at Jun. 30, 2012			7,921	123,196,013	[2]				6,389,777

[1] Includes 119,697,936 and 120,426,321 shares of the Company's Class A common stock issued at January 1, 2011 and June 30, 2011, respectively, and 1 share of the Company's Class B common stock issued at each such date.

[2] Includes 123,009,311 and 123,196,012 shares of the Company's Class A common stock issued at January 1, 2012 and June 30, 2012, respectively, and 1 share of the Company's Class B common stock issued at each such date.

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Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives [Abstract]

Fair Value of Derivatives Reported on Consolidated Statements of Financial Condition

The table below represents the fair values 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 Lazard Fund Interests and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 13 of Notes to Condensed Consolidated Financial Statements) on the accompanying condensed consolidated statements of financial condition as of June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
Derivative Assets:
Forward foreign currency exchange rate contracts		$1,084	$	4,245
Equity and fixed income swaps and other		3,365		2,886
Total		$4,449	$	7,131
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	1,491	$	445
Interest rate swaps		247		277
Equity and fixed income swaps		116		91
Lazard Fund Interests and other similar deferred compensation arrangements (see Note 13)		85,641		29,900
Total	$	87,495	$	30,713

Net Gains (Losses) With Respect to Derivative Instruments Not Designated as Hedging Instruments

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (reported in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2012 and 2011, by type of derivative, were as follows:

	Three Months Ended June 30,					Six Months Ended June  30,
	2012		2011			2012			2011
Forward foreign currency exchange rate contracts	$	4,051	$	(3,139	)	$	2,129		$	(9,397	)
Equity and fixed income swaps and other		3,630		(432	)		(6,625	)		(2,721	)
Lazard Fund Interests and other similar deferred compensation arrangements		2,856		–			89			–
Total	$	10,537	$	(3,571	)	$	(4,407	)	$	(12,118	)

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Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Schedule of Segment's Contribution With Respect To Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets
Net Revenue	$ 436,910	$ 477,292	$ 922,949	$ 915,315
Operating Expenses	392,377	388,090	840,593	752,667
Operating Income (loss)	44,533	89,202	82,356	162,648
Total Assets	2,977,854		2,977,854		3,081,936
Financial Advisory [Member]
Schedule of Segment's Contribution With Respect To Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets
Net Revenue	242,624	249,191	519,820	478,036
Operating Expenses	231,200	214,217	481,097	427,783
Operating Income (loss)	11,424	34,974	38,723	50,253
Total Assets	747,456		747,456		767,699
Asset Management [Member]
Schedule of Segment's Contribution With Respect To Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets
Net Revenue	211,053	244,855	425,580	471,708
Operating Expenses	156,619	160,914	317,120	310,118
Operating Income (loss)	54,434	83,941	108,460	161,590
Total Assets	491,239		491,239		583,524
Corporate [Member]
Schedule of Segment's Contribution With Respect To Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets
Net Revenue	(16,767)	(16,754)	(22,451)	(34,429)
Operating Expenses	4,558	12,959	42,376	14,766
Operating Income (loss)	(21,325)	(29,713)	(64,827)	(49,195)
Total Assets	$ 1,739,159		$ 1,739,159		$ 1,730,713

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Related Parties (Tables)

6 Months Ended

Jun. 30, 2012

Related Parties [Abstract]

Schedule of amounts receivable from and payable to related parties

Amounts receivable from, and payable to, related parties are set forth below:

	June 30, 2012		December 31, 2011
Receivables
LFCM Holdings		$10,416		$14,790
Other		3,686		3,711
Total		$14,102		$18,501
Payables
LFCM Holdings		$  6,189		$  4,850
Other		891		1,225
Total		$  7,080		$  6,075

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Derivatives (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ 10,537	$ (3,571)	$ (4,407)	$ (12,118)
Forward foreign currency exchange rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	4,051	(3,139)	2,129	(9,397)
Equity and fixed income swaps and other [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	3,630	(432)	(6,625)	(2,721)
Lazard Fund Interests and other similar deferred compensation arrangements [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ 2,856		$ 89

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Incentive Plans (Details 3) (Restricted Stock [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Restricted Stock [Member]
Summary of Activity Related to Shares of Restricted Class A Common Stock
Units, Beginning Balance	95,332	95,332
Units, Granted/Exchanged	577,323	327,238
Units, Forfeited	(18,921)
Units, Vested	(131,743)	(327,238)
Units, Ending Balance	521,991	95,332
Weighted Average Grant Date Fair Value, Beginning Balance	$ 37.63	$ 37.63
Weighted Average Grant Date Fair Value, Granted	$ 29.25	$ 43.70
Weighted Average Grant Date Fair Value, Forfeited	$ 29.51
Weighted Average Grant Date Fair Value, Vested	$ 28.63	$ 43.70
Weighted Average Grant Date Fair Value, Ending Balance	$ 30.93	$ 37.63

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Condensed Consolidated Statements of Financial Condition (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 751,238	$ 1,003,791
Deposits with banks	324,355	286,037
Cash deposited with clearing organizations and other segregated cash	78,774	75,506
Receivables (net of allowance for doubtful accounts of $20,756 and $19,450 at June 30, 2012 and December 31, 2011, respectively):
Fees	388,588	402,843
Customers and other	80,790	83,111
Related parties	14,102	18,501
Total receivables, net	483,480	504,455
Investments	439,683	378,521
Property (net of accumulated amortization and depreciation of $261,690 and $266,673 at June 30, 2012 and December 31, 2011, respectively)	198,289	168,429
Goodwill and other intangible assets (net of accumulated amortization of $30,600 and $26,922 at June 30, 2012 and December 31, 2011, respectively)	394,168	393,099
Other assets	307,867	272,098
Total assets	2,977,854	3,081,936
Liabilities:
Deposits and other customer payables	338,514	288,427
Accrued compensation and benefits	251,120	383,513
Senior debt	1,076,850	1,076,850
Capital lease obligations	18,293	20,084
Related party payables	7,080	6,075
Other liabilities	459,589	440,131
Total liabilities	2,151,446	2,215,080
Commitments and contingencies
Common stock:
Additional paid-in-capital	700,064	659,013
Retained earnings	264,682	258,646
Accumulated other comprehensive loss, net of tax	(94,171)	(88,364)
Stockholders' equity subtotal before common stock held by subsidiary and Noncontrolling Interests, total	871,807	830,525
Total Lazard Ltd stockholders' equity	704,425	726,143
Noncontrolling interests	121,983	140,713
Total stockholders' equity	826,408	866,856
Total liabilities and stockholders' equity	2,977,854	3,081,936
Class A common stock
Common stock:
Common stock	1,232	1,230
Common stock held by subsidiary	(167,382)	(104,382)
Class B common stock
Common stock:
Common stock
Series A Preferred stock
Preferred stock:
Preferred stock
Series B Preferred stock
Preferred stock:
Preferred stock

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Investments (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Gross investment gains and losses
Gross investment gains	$ 1,715	$ 8,830	$ 29,359	$ 15,205
Gross investment losses	$ 3,052	$ 2,235	$ 4,036	$ 3,251

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Tax benefit (expense)	$ 1,443	$ (29)	$ 2,725	$ 1,906
Tax expense associated with adjustment for item reclassified to earnings	$ 281	$ 262	$ 578	$ 517

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Goodwill and Other Intangible Assets (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Estimated future amortization expense
2012 (July 1 through December 31)	$ 2,641
2013	9,372
2014	8,901
2015	6,953
2016	5,308
Total amortization expense	$ 33,175
Intangible asset amortization attributable to noncontrolling interest, percentage	45.00%

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Senior Debt (Tables)

6 Months Ended

Jun. 30, 2012

Senior Debt [Abstract]

Senior debt

Senior debt is comprised of the following as of June 30, 2012 and December 31, 2011:

	Initial Principal Amount				Annual Interest Rate			Outstanding As Of
			Maturity Date					June 30, 2012		December 31, 2011
Lazard Group 7.125% Senior Notes	$	550,000		5/15/15		7.125	%	$	528,500	$	528,500
Lazard Group 6.85% Senior Notes		600,000		6/15/17		6.85	%		548,350		548,350
Lazard Group Credit Facility		150,000		4/29/13		1.92	%		–		–
Total								$	1,076,850	$	1,076,850

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Stockholders' Equity (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss), Net of Tax
Currency translation adjustments	$ 1,765	$ 3,719
Interest rate hedge	(3,030)	(3,557)
Employee benefit plans	(97,050)	(92,637)
Total AOCI	(98,315)	(92,475)
Less amount attributable to noncontrolling interests	(4,144)	(4,111)
Total Lazard Ltd AOCI	$ (94,171)	$ (88,364)

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Incentive Plans

6 Months Ended

Jun. 30, 2012

Incentive Plans [Abstract]

INCENTIVE PLANS

13. INCENTIVE PLANS

Share-Based Incentive Plan Awards

A description of Lazard Ltd’s 2005 Plan and 2008 Plan and activity with respect thereto during the six month periods ended June 30, 2012 and 2011 is presented below.

Shares Available Under the 2005 Plan and 2008 Plan

The 2005 Plan authorizes 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, restricted stock, restricted stock units and other equity-based awards. Each stock unit or similar award granted under the 2005 Plan represents a contingent right to receive one share of Class A common stock, at no cost to the recipient. The fair value of such awards is generally determined based on the closing market price of Class A common stock on the day prior to the date of grant.

In addition to the shares available under the 2005 Plan, additional shares of Class A common stock are available under the 2008 Plan. The maximum number of shares available under the 2008 Plan is based on a formula that limits the aggregate number of shares that may, at any time, be subject to awards that are considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock (treating, for this purpose, the then-outstanding exchangeable interests of LAZ-MD Holdings on a “fully-exchanged” basis as described in the 2008 Plan).

The following is a summary of the impact of share-based incentive plans on “compensation and benefits” expense within the Company’s accompanying condensed consolidated statements of operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Share-based incentive compensation:
RSUs		$63,428	$	57,552		$145,319	$	142,410
Deferred stock units (“DSUs”)		1,218		1,068		1,288		1,124
Restricted stock		1,704		356		5,879		8,999
Total		$66,350	$	58,976		$152,486	$	152,533

The Company’s incentive plans are described below.

Restricted and Deferred Stock Units

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 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, and, for purposes of calculating diluted net income per share, RSUs are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method.

RSUs issued subsequent to December 31, 2005 generally include a dividend participation right that provides that during vesting periods each RSU is attributed additional RSUs (or fractions thereof) equivalent to any ordinary quarterly dividends paid on Class A common stock during such period. During the six month periods ended June 30, 2012 and 2011, issuances of RSUs pertaining to such dividend participation rights and respective charges to “retained earnings”, net of estimated forfeitures (with corresponding credits to “additional paid-in-capital”) consisted of the following:

	Six Months Ended June 30,
	2012		2011
Number of RSUs issued		310,756		140,613
Charges to retained earnings, net of estimated forfeitures		$7,277		$5,337

Non-Executive members of the Board of 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 49,735 and 26,859 DSUs granted during the six month periods ended June 30, 2012 and 2011, respectively. Their remaining compensation is payable in cash, which they may elect to receive in the form of additional DSUs under the Director’s Fee Deferral Unit Plan described below. DSUs are convertible into Class A common stock at the time of cessation of service to the Board, and, for purposes of calculating diluted net income per share, are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. DSUs include a cash dividend participation right equivalent to any ordinary quarterly dividends paid on Class A common stock, and resulted in nominal cash payments for the six month periods ended June 30, 2012 and 2011.

On May 9, 2006, the Board of Directors adopted the Directors’ Fee Deferral Unit Plan, which allows the Company’s Non-Executive Directors to elect to receive additional DSUs pursuant to the 2005 Plan in lieu of some or all of their cash fees. The number of DSUs that will be 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 on which the foregone cash fees would otherwise have been paid. During the six month periods ended June 30, 2012 and 2011, 5,489 and 2,942 DSUs, respectively, had been granted pursuant to such Plan.

DSU awards are expensed at their fair value on their date of grant, inclusive of amounts related to the Directors’ Fee Deferral Unit Plan.

The following is a summary of activity relating to RSUs and DSUs during the six month periods ended June 30, 2012 and 2011:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units			Weighted Average Grant Date Fair Value
Balance, January 1, 2012		20,751,829		$	36.84		140,660		$	34.83
Granted (including 310,756 RSUs relating to dividend participation)		7,847,541		$	27.51		55,224		$	23.32
Forfeited		(311,601	)	$	35.46		–			–
Vested		(3,631,932	)	$	33.83		–			–
Balance, June 30, 2012		24,655,837		$	34.32		195,884		$	31.58
Balance January 1, 2011		22,108,635		$	35.67		121,737		$	34.46
Granted (including 140,613 RSUs relating to dividend participation)		6,309,310		$	44.93		29,801		$	37.72
Forfeited		(223,365	)	$	37.90		–			–
Vested		(7,616,386	)	$	39.21		(16,120	)	$	34.76
Balance, June 30, 2011		20,578,194		$	37.18		135,418		$	35.14

In connection with RSUs which vested during the six month periods ended June 30, 2012 and 2011, the Company satisfied certain employees’ tax obligations in lieu of issuing 967,828 and 2,226,829 shares of Class A common stock in the respective six month periods. Accordingly, 2,664,104 and 5,389,557 shares of Class A common stock held by the Company were delivered during the six month periods ended June 30, 2012 and 2011, respectively.

As of June 30, 2012, unrecognized RSU compensation expense, adjusted for estimated forfeitures, was approximately $311,000, with such unrecognized compensation expense expected to be recognized over a weighted average period of approximately 1.4 years subsequent to June 30, 2012. The ultimate amount of such expense is dependent upon the actual number of RSUs that vest. The Company periodically assesses the forfeiture rates used for such estimates. A change in estimated forfeiture rates would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described herein.

Restricted Stock

The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the six month periods ended June 30, 2012 and 2011:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2012		95,332		$	37.63
Granted/Exchanged		577,323		$	29.25
Forfeited		(18,921	)	$	29.51
Vested		(131,743	)	$	28.63
Balance, June 30, 2012		521,991		$	30.93
Balance, January 1, 2011		95,332		$	37.63
Granted		327,238		$	43.70
Vested		(327,238	)	$	43.70
Balance, June 30, 2011		95,332		$	37.63

In connection with shares of restricted Class A common stock that vested during the six month periods ended June 30, 2012 and 2011, the Company satisfied certain employees’ tax obligations in lieu of delivering 28,129 and 68,866 shares of Class A common stock during the respective periods. Accordingly, 103,614 and 258,372 shares of Class A common stock held by the Company were delivered during the respective six month periods.

The awards include a cash dividend participation right equivalent to any ordinary quarterly dividends paid on Class A common stock during the period, which will vest concurrently with the underlying restricted stock award. At June 30, 2012, unrecognized restricted stock expense was approximately $10,000, with such expense to be recognized over a weighted average period of approximately 1.9 years subsequent to June 30, 2012.

For purposes of calculating diluted net income per share, such awards are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method.

Lazard Fund Interests and Other Similar Deferred Compensation Arrangements

Commencing in February 2011, the Company granted to eligible employees Lazard Fund Interests. In connection with the Lazard Fund Interests 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, and is charged to “compensation and benefits” expense within the Company’s consolidated statement of operations. Lazard Fund Interests 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. Such changes in the fair value of the derivative liability are recorded to “compensation and benefits” expense within the Company’s consolidated statements of operations, the impact of which equally offsets the changes in fair value of investments which are currently expected to be delivered upon settlement of Lazard Fund Interests awards, which is reported in “revenue-other” in the consolidated statement of operations (see Note 6 of Notes to Condensed Consolidated Financial Statements).

The following is a summary of activity relating to Lazard Fund Interests and other similar deferred compensation arrangements during the six month period ended June 30, 2012:

	Prepaid Compensation Asset			Compensation   Liability
Balance, January 1, 2012	$	17,782		$	29,900
Granted		64,631			64,631
Settled		–			(8,641)
Forfeited		(1,008)			(993)
Amortization (including grants of awards to retirement-eligible recipients)		(16,985	)		–
Decrease in fair value		–			(89	)
Other		979			833
Balance, June 30, 2012	$	65,399		$	85,641

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 2.1 years subsequent to June 30, 2012.

The following is a summary of the impact of Lazard Fund Interests and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three and six month periods ended June 30, 2012 and 2011:

	Three Months Ended June  30,					Six Months Ended June 30,
	2012			2011		2012			2011
Amortization (including grants of awards to retirement-eligible recipients)		$10,800			$2,413		$16,985			$5,054
Change in fair value of compensation liability		(2,856	)		–		(89	)		–
Total		$7,944			$2,413		$16,896			$5,054

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

Lazard Group distributed amounts to LAZ-MD Holdings and the subsidiaries of Lazard Ltd

During the six month periods ended June 30, 2012 and 2011, Lazard Group distributed the following amounts to LAZ-MD Holdings and the subsidiaries of Lazard Ltd (none of which related to tax distributions):

	Six Months Ended June 30,
	2012		2011
LAZ-MD Holdings	$	2,416	$	2,174
Subsidiaries of Lazard Ltd		43,011		32,855
Total	$	45,427	$	35,029

Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The components of AOCI at June 30, 2012 and December 31, 2011 are as follows:

	June 30,			December 31,
	2012			2011
Currency translation adjustments	$	1,765		$	3,719
Interest rate hedge		(3,030	)		(3,557	)
Employee benefit plans		(97,050	)		(92,637	)
Total AOCI		(98,315	)		(92,475	)
Less amount attributable to noncontrolling interests		(4,144	)		(4,111	)
Total Lazard Ltd AOCI	$	(94,171	)	$	(88,364	)

Changes in ownership interests

The following tables summarize the changes in ownership interests in Lazard Group held by Lazard Ltd and LAZ-MD Holdings during the six month periods ended June 30, 2012, and 2011:

	Lazard Ltd					LAZ-MD Holdings						Total Lazard Group Common Membership Interests
	Common Membership Interests		% Ownership			Common Membership Interests			% Ownership
Balance, January 1, 2011		119,697,936		94.0	%		7,652,625			6.0	%		127,350,561
Activity January 1, 2011 to June 30, 2011:
Common membership interest activity in connection with:
Exchanges for Class A common stock		728,385					(728,385	)					–
Repurchase of common membership interests from LAZ-MD Holdings		–					(19,032	)					(19,032	)
Balance, June 30, 2011		120,426,321		94.6	%		6,905,208			5.4	%		127,331,529
Balance, January 1, 2012		123,009,311		94.8	%		6,756,779			5.2	%		129,766,090
Activity January 1, 2012 to June 30, 2012:
Common membership interest activity in connection with:
Exchanges for Class A common stock		186,701					(186,701)						–
Balance, June 30, 2012		123,196,012		94.9	%		6,570,078			5.1	%		129,766,090

Net income attributable to noncontrolling interests

The tables below summarize net income attributable to noncontrolling interests for the three month and six month periods ended June 30, 2012 and 2011 and noncontrolling interests as of June 30, 2012 and December 31, 2011 in the Company’s accompanying condensed consolidated financial statements:

	Net Income (Loss) Attributable To Noncontrolling Interests
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
LAZ-MD Holdings		$1,694		$	4,012		$	3,019		$	7,746
Edgewater		1,698			5,882			3,872			6,905
Other		(51	)		(332	)		(46	)		(113	)
Total		$3,341		$	9,562		$	6,845		$	14,538

	Noncontrolling Interests As Of
	June 30, 2012		December 31, 2011
LAZ-MD Holdings	$	34,506	$	31,954
Edgewater		86,235		91,713
Other		1,242		17,046
Total	$	121,983	$	140,713

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

INCOME TAXES

15. INCOME TAXES

As a result of its indirect investment in Lazard Group, Lazard Ltd, through certain of its subsidiaries, is subject to U.S. federal income taxes on its portion of Lazard Group’s operating income. 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. In addition, Lazard Group is subject to New York City Unincorporated Business Tax (“UBT”) which is attributable to Lazard Group’s operations apportioned to New York City. UBT is incremental to the U.S. federal statutory tax rate. Outside the U.S., Lazard Group operates principally through subsidiary corporations that are subject to local income taxes.

The Company recorded income tax provisions of $10,371 and $19,138 for the three month and six month periods ended June 30, 2012, respectively, and $17,636 and $31,099 for the three month and six month periods ended June 30, 2011, respectively, representing effective tax rates of 23.3%, 23.2%, 19.8% and 19.1%, respectively. The difference between the U.S. federal statutory rate of 35.0% 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) foreign source income (loss) not subject to U.S. income taxes, (iii) Lazard Group’s income from U.S. operations attributable to noncontrolling interests and (iv) U.S. state and local taxes (primarily UBT), which are incremental to the U.S. federal statutory tax rate.

Substantially all of Lazard’s foreign operations are conducted in “pass-through” entities for U.S. income tax purposes and the Company provides for U.S. income taxes on a current basis for substantially all of those earnings. The repatriation of prior earnings attributable to “non-pass-through” entities would not result in the recognition of a material amount of additional U.S. income taxes.

Tax Receivable Agreement

The redemption of historical partner interests in connection with the Company’s separation and recapitalization that occurred in May 2005 and subsequent exchanges of LAZ-MD Holdings exchangeable interests for shares of Class A common stock have resulted, and future exchanges of LAZ-MD Holdings exchangeable interests for shares of Class A common stock may result, in increases in the tax basis of the tangible and intangible assets of Lazard Group. The tax receivable agreement dated as of May 10, 2005 with LFCM Holdings LLC (“LFCM Holdings”) requires the Company to pay LFCM Holdings 85% of the cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes as a result of the above-mentioned increases in tax basis. The Company calculates this provision annually and includes such amounts in operating expenses on its consolidated statements of operations once the results of operations for the full year are known. As a result, there is no provision for such payments in the six month periods ended June 30, 2012 and 2011. If any provision is required pursuant to the tax receivable agreement, such amount would be fully offset by a reduction in the Company’s income tax expense.

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Stockholders' Equity (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	3 Months Ended		6 Months Ended					1 Months Ended			6 Months Ended
	Jul. 31, 2012	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 LAZ-MD Holdings LLC [Member]	Dec. 31, 2011 LAZ-MD Holdings LLC [Member]	Apr. 30, 2012 Class A common stock [Member]	Oct. 31, 2011 Class A common stock [Member]	Feb. 28, 2011 Class A common stock [Member]	Jun. 30, 2012 Class A common stock [Member]	Jun. 30, 2011 Class A common stock [Member]	Jun. 30, 2012 Series A Preferred Stock [Member]	Dec. 31, 2011 Series A Preferred Stock [Member]	Jun. 30, 2012 Series B Preferred Stock [Member]	Dec. 31, 2011 Series B Preferred Stock [Member]
Schedule Of Capitalization Equity [Line Items]
Stock/membership interest repurchase program authorized amount									$ 125,000	$ 125,000	$ 250,000	$ 184,730
Shares in exchange of a like number of common membership interests				186,701									728,385
Number of shares/common membership interests purchased				0								5,706,592
Aggregate cost of shares/common membership interests purchased				0								152,413
Preferred stock, shares authorized		15,000,000		15,000,000		15,000,000
Preferred stock, par value		$ 0.01		$ 0.01		$ 0.01
Preferred stock, shares outstanding														7,921	7,921
Percentage of common membership interests and corresponding voting interests in subsidiary by noncontrolling interests							5.10%	5.20%
Stockholders Equity Note (Textual) [Abstract]
Dividends declared per share of common stock	$ 0.20	$ 0.20	$ 0.16	$ 0.36	$ 0.285
Payments of Ordinary Dividends, Common Stock				$ 43,011	$ 32,855
Dividend Declare Date				Jul. 25, 2012
Dividend Payable Date				Aug. 24, 2012
Dividend Date of Record				Aug. 06, 2012

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 63,218	$ 131,549
Noncash items included in net income:
Depreciation and amortization of property	14,800	11,820
Amortization of deferred expenses, share-based incentive compensation and interest rate hedge	173,083	164,713
Amortization of intangible assets related to acquisitions	3,678	3,180
(Increase) decrease in operating assets:
Deposits with banks	(47,391)	132,672
Cash deposited with clearing organizations and other segregated cash	(4,583)	(845)
Receivables-net	17,417	52,477
Investments	(58,317)	(13,164)
Other assets	(59,656)	12,237
Increase (decrease) in operating liabilities:
Deposits and other payables	60,091	(112,956)
Accrued compensation and benefits and other liabilities	(127,851)	(366,816)
Net cash provided by operating activities	34,489	14,867
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property	(48,941)	(5,676)
Disposals of property	2,053	199
Net cash used in investing activities	(46,888)	(5,477)
Proceeds from:
Contribution from noncontrolling interests	784	980
Excess tax benefits from share-based incentive compensation	0	2,848
Other financing activities	10	1,688
Payments for:
Capital lease obligations	(1,336)	(1,397)
Distributions to noncontrolling interests	(13,462)	(8,034)
Repurchase of common membership interests from members of LAZ-MD Holdings	0	(794)
Purchase of Class A common stock	(152,413)	(126,237)
Class A common stock dividends	(43,011)	(32,855)
Settlement of vested share-based incentive compensation	(29,421)	(90,635)
Other financing activities	(59)	(46)
Net cash used in financing activities	(238,908)	(254,482)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(1,246)	19,409
NET DECREASE IN CASH AND CASH EQUIVALENTS	(252,553)	(225,683)
CASH AND CASH EQUIVALENTS-January 1	1,003,791	1,209,695
CASH AND CASH EQUIVALENTS-June 30	$ 751,238	$ 984,012

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Condensed Consolidated Statements of Financial Condition (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Allowance for doubtful accounts receivables	$ 20,756	$ 19,450
Property, accumulated amortization and depreciation	261,690	266,673
Goodwill and other intangible assets, accumulated amortization	$ 30,600	$ 26,922
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares outstanding
Class A common stock
Common stock held by subsidiaries, shares	6,389,777	3,492,017
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	123,196,012	123,009,311
Series A Preferred stock
Preferred stock, shares issued	7,921	7,921
Preferred stock, shares outstanding	7,921	7,921
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1	1
Common stock, shares issued	1	1
Common stock, shares outstanding	1	1
Series B Preferred stock
Preferred stock, shares issued
Preferred stock, shares outstanding

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Property - Net

6 Months Ended

Jun. 30, 2012

Property - Net [Abstract]

PROPERTY-NET

8. PROPERTY-NET

At June 30, 2012 and December 31, 2011 property-net consists of the following:

	Estimated Depreciable Life in Years		June 30, 2012		December 31, 2011
Buildings		33	$	158,939	$	164,168
Leasehold improvements		5 - 20		167,957		159,191
Furniture and equipment		3 - 10		108,025		85,396
Construction in progress				25,058		26,347
Total				459,979		435,102
Less – Accumulated depreciation and amortization				261,690		266,673
Property-net			$	198,289	$	168,429

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Jul. 25, 2012 Subsidiaries of Lazard Ltd	Jul. 25, 2012 Class A common stock	Jul. 25, 2012 Class B common stock
Entity Registrant Name	Lazard Ltd
Entity Central Index Key	0001311370
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		6,970,705	123,196,012	1

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Other Intangible Assets [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

9. GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at June 30, 2012 and December 31, 2011 are presented below:

	June 30,		December 31,
	2012		2011
Goodwill	$	360,993	$	356,657
Other intangible assets (net of accumulated amortization)		33,175		36,442
Total	$	394,168	$	393,099

At June 30, 2012 and December 31, 2011, goodwill of $296,452 and $292,116, respectively, was attributable to the Company’s Financial Advisory segment and, at such respective dates, $64,541 of goodwill was attributable to the Company’s Asset Management segment.

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2012, and 2011 are as follows:

	Six Months Ended June 30,
	2012		2011
Balance, January 1	$	356,657	$	313,229
Business acquisitions		4,272		–
Foreign currency translation adjustments		64		7,182
Balance, June 30	$	360,993	$	320,411

The gross cost and accumulated amortization of other intangible assets as of June 30, 2012 and December 31, 2011, by major intangible asset category, are as follows:

	June 30, 2012						December 31, 2011
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	30,740	$	8,510	$	22,230	$	30,740	$	7,122	$	23,618
Management fees, customer relationships and non-compete agreements		33,035		22,090		10,945		32,624		19,800		12,824
Total	$	63,775	$	30,600	$	33,175	$	63,364	$	26,922	$	36,442

Amortization expense of intangible assets for the three month and six month periods ended June 30, 2012 was $2,560 and $3,678, respectively, and for the three month and six month periods ended June 30, 2011 was $1,706 and $3,180, respectively. Estimated future amortization expense is as follows:

Year Ending December 31,	Future Amortization Expense (a)
2012 (July 1 through December 31)	$	2,641
2013		9,372
2014		8,901
2015		6,953
2016		5,308
Total	$	33,175

(a) Approximately 45% of intangible asset amortization is attributable to a noncontrolling interest.

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Related Parties (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of amounts receivable from and payable to related parties
Amounts receivables from related parties	$ 14,102	$ 18,501
Amounts payables to related parties	7,080	6,075
LFCM Holdings [Member]
Schedule of amounts receivable from and payable to related parties
Amounts receivables from related parties	10,416	14,790
Amounts payables to related parties	6,189	4,850
Other [Member]
Schedule of amounts receivable from and payable to related parties
Amounts receivables from related parties	3,686	3,711
Amounts payables to related parties	$ 891	$ 1,225

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
REVENUE
Investment banking and other advisory fees	$ 240,306	$ 243,096	$ 513,847	$ 463,423
Money management fees	201,642	230,906	406,203	445,598
Interest income	1,715	4,363	3,865	7,855
Other	13,568	22,240	39,777	45,070
Total revenue	457,231	500,605	963,692	961,946
Interest expense	20,321	23,313	40,743	46,631
Net revenue	436,910	477,292	922,949	915,315
OPERATING EXPENSES
Compensation and benefits	283,392	286,480	621,709	556,479
Occupancy and equipment	28,347	22,977	54,629	45,685
Marketing and business development	22,322	20,879	50,589	38,990
Technology and information services	21,275	20,582	41,668	40,149
Professional services	13,274	13,120	22,585	22,961
Fund administration and outsourced services	12,670	13,507	26,121	26,758
Amortization of intangible assets related to acquisitions	2,560	1,706	3,678	3,180
Other	8,537	8,839	19,614	18,465
Total operating expenses	392,377	388,090	840,593	752,667
OPERATING INCOME	44,533	89,202	82,356	162,648
Provision for income taxes	10,371	17,636	19,138	31,099
NET INCOME	34,162	71,566	63,218	131,549
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	3,341	9,562	6,845	14,538
NET INCOME ATTRIBUTABLE TO LAZARD LTD	$ 30,821	$ 62,004	$ 56,373	$ 117,011
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic	118,235,320	119,107,386	118,732,431	117,221,070
Diluted	134,636,935	139,347,933	135,615,557	138,969,263
NET INCOME PER SHARE OF COMMON STOCK:
Basic	$ 0.26	$ 0.52	$ 0.47	$ 1.00
Diluted	$ 0.24	$ 0.48	$ 0.44	$ 0.91
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$ 0.20	$ 0.16	$ 0.36	$ 0.285

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Receivables - Net

6 Months Ended

Jun. 30, 2012

Receivables - Net [Abstract]

RECEIVABLES - NET

3. RECEIVABLES - NET

The Company’s “receivables - net” represents receivables from fees, customers and other and related parties.

Receivables are stated net of an estimated allowance for doubtful accounts of $20,756 and $19,450 at June 30, 2012 and December 31, 2011, respectively, for past due amounts and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute. The Company recorded net bad debt expense (recoveries) of $(133) and $1,148 for the three month and six month periods ended June 30, 2012, respectively, and $2,463 and $3,430 for the three month and six month periods ended June 30, 2011, respectively. In addition, the Company recorded charge-offs, foreign currency translation and other adjustments, which resulted in a net increase (decrease) to the allowance for doubtful accounts of $(283) and $158 for the three month and six month periods ended June 30, 2012, respectively, and $(1,435) and $(1,922) for the three month and six month periods ended June 30, 2011, respectively. At June 30, 2012 and December 31, 2011, the Company had receivables deemed past due or uncollectible of $22,857 and $22,785, respectively.

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Recent Accounting Developments

6 Months Ended

Jun. 30, 2012

RECENT ACCOUNTING DEVELOPMENTS [Abstract]

RECENT ACCOUNTING DEVELOPMENTS

2. RECENT ACCOUNTING DEVELOPMENTS

Fair Value Measurements—In the first quarter of 2012, the Company adopted the amended fair value measurement guidance issued by the Financial Accounting Standards Board (the “FASB”), which the FASB stated was designed to achieve common fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”). Although many of the changes for U.S. GAAP purposes are clarifications of existing guidance or wording changes to align with IFRS, additional disclosures about fair value measurements are required, including (i) a quantitative disclosure of the unobservable inputs and assumptions used in the measurement, (ii) the valuation processes used and the sensitivity of fair value measurements related to investments categorized within Level 3 of the hierarchy of fair value measurements to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any, and (iii) the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial condition but for which the fair value is required to be disclosed. The amended fair value measurement guidance became effective for interim and annual periods beginning after December 15, 2011 and is applied prospectively. The adoption of the amended fair value measurement guidance did not have a material impact on the Company’s consolidated financial statements, primarily because substantially all Level 3 assets are carried at net asset value (“NAV”) or its equivalent.

Other Comprehensive Income—In the first quarter of 2012, the Company adopted the FASB’s amended guidance regarding the presentation of comprehensive income, which the FASB stated was designed to improve comparability, consistency and transparency. The amendment required that all changes in comprehensive income be presented either in (i) a single continuous statement of comprehensive income or in (ii) two separate but consecutive statements. The amendment was to be applied retrospectively and is effective with interim and annual periods beginning after December 15, 2011, with early adoption permitted. The Company elected the two-statement method.

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2012

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

14. EMPLOYEE BENEFIT PLANS

The Company provides retirement and other post-retirement benefits to certain of its employees through defined contribution and defined benefit pension plans and other post-retirement plans. These plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense on the consolidated statements of operations.

Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ Trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans. The Company made a contribution to the U.S. pension plans during the six month period ended June 30, 2012 of approximately $700.

On April 30, 2012, the Company and the Trustees of the U.K. pension plans concluded the December 31, 2010 triennial valuations of the plans. In connection with such valuations and a previously negotiated agreement with the Trustees, the Company and the Trustees agreed upon pension funding terms (the “agreement”) (which superseded the terms of an agreement reached in June 2009 with respect to the previous triennial valuation as of December 31, 2007) whereby the Company: (i) made a contribution in December 2011 to the plans of 2.3 million British pounds ($3,687 at December 31, 2011 exchange rates) from a previously established escrow account, (ii) will make contributions of 1 million British pounds during each year from 2012 through 2020 inclusive and (iii) amended the previous escrow arrangement into an account security arrangement covering 10.2 million British pounds, committing to make annual contributions of 1 million British pounds into such account security arrangement during each year from 2014 through 2020. It was further agreed that, to the extent that the value of the plans’ assets falls short of the funding target for June 1, 2020 that has been agreed upon with the Trustees, the assets from the account security arrangement would be released into the plans at that date. Additionally, the Company agreed to fund the expenses of administering the plans, including certain regulator levies and the cost of other professional advisors to the plans. The terms of the agreement are subject to adjustment based on the results of subsequent triennial valuations. The aggregate amount in the account security arrangement at June 30, 2012 of approximately $16,000 has been recorded in “cash deposited with clearing organizations and other segregated cash” on the accompanying condensed consolidated statement of financial condition. Income on the escrow balance accretes to the Company and is recorded in interest income.

During the six month period ended June 30, 2012, the Company contributed 1 million British pounds ($1,576 at June 30, 2012 exchange rates) to these U.K. pension plans, and no contributions were made to other non-U.S. pension plans.

The following table summarizes the components of net periodic benefit cost for the three month and six month periods ended June 30, 2012 and 2011:

	Pension Plans						Post-Retirement Medical Plans
	Three Months Ended June 30,
	2012			2011			2012		2011
Components of Net Periodic Benefit Cost:
Service cost	$	166		$	169		$	19	$	19
Interest cost		6,885			7,092			52		69
Expected return on plan assets		(6,622	)		(7,644	)		–		–
Amortization of:
Prior service cost		687			762			–		–
Net actuarial loss		420			66			–		–
Settlement loss (a)		886			–			–		–
Net periodic benefit cost	$	2,422		$	445		$	71	$	88

	Pension Plans						Post-Retirement Medical Plans
	Six Months Ended June 30,
	2012			2011			2012		2011
Components of Net Periodic Benefit Cost:
Service cost	$	338		$	332		$	30	$	34
Interest cost		13,787			14,159			105		139
Expected return on plan assets		(13,294	)		(15,266	)		–		–
Amortization of:
Prior service cost		1,388			1,502			–		–
Net actuarial loss		831			129			–		–
Settlement loss (a)		886			–			–		–
Net periodic benefit cost	$	3,936		$	856		$	135	$	173

(a) During the three month period ended June 30, 2012, the Company’s pension plans in the U.S. made lump sum benefit payments in excess of the plans’ annual service and interest costs, which, under U.S. GAAP, requires that the plans’ obligations and assets be remeasured. The remeasurement of the plans resulted in the recognition of actuarial losses totaling $1,935 recorded in “other comprehensive income (loss), net of tax” (“OCI”), which, combined with a settlement loss of $886 recognized in “compensation and benefits” expense, resulted in a net charge to OCI of $1,049.

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Senior Debt

6 Months Ended

Jun. 30, 2012

Senior Debt [Abstract]

SENIOR DEBT

10. SENIOR DEBT

Senior debt is comprised of the following as of June 30, 2012 and December 31, 2011:

	Initial Principal Amount				Annual Interest Rate			Outstanding As Of
			Maturity Date					June 30, 2012		December 31, 2011
Lazard Group 7.125% Senior Notes	$	550,000		5/15/15		7.125	%	$	528,500	$	528,500
Lazard Group 6.85% Senior Notes		600,000		6/15/17		6.85	%		548,350		548,350
Lazard Group Credit Facility		150,000		4/29/13		1.92	%		–		–
Total								$	1,076,850	$	1,076,850

Lazard Group has in place a $150,000, three-year senior revolving credit facility with a group of lenders (the “Credit Facility”), which expires in April, 2013. Interest rates under the Credit Facility vary and are based on either a Federal Funds rate or a Eurodollar rate, in each case plus an applicable margin. As of June 30, 2012, the annual interest rate for a loan accruing interest (based on the Federal Funds overnight rate), including the applicable margin, was 1.92%. At June 30, 2012 and December 31, 2011, no amounts were outstanding under the Credit Facility.

The Credit Facility, as amended, contains customary terms and conditions, including certain financial covenants. In addition, the Credit Facility, as well as the indenture and the supplemental indentures relating to Lazard Group’s senior notes, contain certain covenants, events of default and other customary provisions, including, where applicable, a customary make-whole provision in the event of early redemption. As of June 30, 2012, the Company was in compliance with all of these provisions. All of the Company’s senior debt obligations are unsecured.

As of June 30, 2012, the Company had approximately $299,000 in unused lines of credit available to it, including the Credit Facility, and unused lines of credit available to LFB of approximately $88,000 (at June 30, 2012, exchange rates) and Edgewater of $55,000. In addition, LFB has access to the Eurosystem Covered Bond Purchase Program of the Banque de France.

The Company’s senior debt at June 30, 2012 and December 31, 2011 is recorded at historical amounts. At those dates, the fair value of such senior debt outstanding was approximately $1,186,000 and $1,138,000, respectively, and exceeded the aggregate carrying value by approximately $109,000 and $61,000, respectively. The fair value of the Company’s senior debt was estimated using a discounted cash flow analysis based on the Company’s current borrowing rates for similar types of borrowing arrangements or based on market quotations, where available. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

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Derivatives

6 Months Ended

Jun. 30, 2012

Derivatives [Abstract]

DERIVATIVES

6. DERIVATIVES

The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, equity and fixed income swaps and other derivative contracts to hedge exposures to fluctuations in currency exchange rates, interest rates and equity and debt markets. 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 consolidated statements of financial condition. Gains and losses on the Company’s derivative instruments not designated as hedging instruments are included in “interest income” and “interest expense”, respectively, or “revenue-other”, depending on the nature of the underlying item, on the consolidated statements of operations.

In addition to the derivative instruments described above, the Company records derivative liabilities relating to its obligations pertaining to Lazard Fund Interests awards 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 consolidated statements of financial condition. Changes in the fair value of the derivative liabilities are included in “compensation and benefits” in the 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 Lazard Fund Interests awards, which is reported in “revenue-other” in the consolidated statements of operations.

The table below represents the fair values 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 Lazard Fund Interests and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 13 of Notes to Condensed Consolidated Financial Statements) on the accompanying condensed consolidated statements of financial condition as of June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
Derivative Assets:
Forward foreign currency exchange rate contracts		$1,084	$	4,245
Equity and fixed income swaps and other		3,365		2,886
Total		$4,449	$	7,131
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	1,491	$	445
Interest rate swaps		247		277
Equity and fixed income swaps		116		91
Lazard Fund Interests and other similar deferred compensation arrangements (see Note 13)		85,641		29,900
Total	$	87,495	$	30,713

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 Lazard Fund Interests and other similar deferred compensation arrangements (reported in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2012 and 2011, by type of derivative, were as follows:

	Three Months Ended June 30,					Six Months Ended June  30,
	2012		2011			2012			2011
Forward foreign currency exchange rate contracts	$	4,051	$	(3,139	)	$	2,129		$	(9,397	)
Equity and fixed income swaps and other		3,630		(432	)		(6,625	)		(2,721	)
Lazard Fund Interests and other similar deferred compensation arrangements		2,856		–			89			–
Total	$	10,537	$	(3,571	)	$	(4,407	)	$	(12,118	)

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Goodwill and Other Intangible Assets (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Goodwill [Line Items]
Goodwill	$ 360,993	$ 320,411	$ 360,993	$ 320,411	$ 356,657	$ 313,229
Goodwill and Other Intangible Assets (Textual) [Abstract]
Amortization of intangible assets related to acquisitions	2,560	1,706	3,678	3,180
Financial Advisory Segment [Member]
Goodwill [Line Items]
Goodwill	296,452		296,452		292,116
Asset Management Segment [Member]
Goodwill [Line Items]
Goodwill	$ 64,541		$ 64,541

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Investments

6 Months Ended

Jun. 30, 2012

Investments [Abstract]

INVESTMENTS

4. INVESTMENTS

The Company’s investments and securities sold, not yet purchased, consist of the following at June 30, 2012 and December 31, 2011:

	June 30,		December 31,
	2012		2011
Debt	$	20,270	$	36,966
Equities (a)		212,314		156,053
Other:
Interests in alternative asset management funds (a)		36,500		20,610
Fixed income funds (a)		47,165		31,121
Private equity		113,991		122,718
Equity method investments		9,443		11,053
		207,099		185,502
Total		439,683		378,521
Less:
Interest-bearing deposits (included in “debt” above)		2,715		2,834
Equity method investments		9,443		11,053
Investments, at fair value	$	427,525	$	364,634
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	1,097	$	4,282

(a) Equities, interests in alternative asset management funds and fixed income funds include investments with fair values of $73,174, $3,512 and $20,237, respectively, at June 30, 2012 and $19,857, $2,256 and $5,212, respectively, at December 31, 2011, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“Lazard Fund Interests”) and other similar deferred compensation arrangements. Lazard Fund Interests represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds (see Notes 6 and 13 of Notes to Condensed Consolidated Financial Statements).

Debt securities primarily consist of seed investments in Asset Management products and U.S. and non-U.S. government debt securities.

Equities primarily consist of (i) seed investments in Asset Management products, which in turn invest in marketable equity securities of large-, mid- and small-cap domestic, international and global companies and include investments in public and private asset management funds managed both by LAM and third-party asset managers and (ii) amounts relating to Lazard Fund Interests discussed above.

Interests in alternative asset management funds primarily consist of general partner (“GP”) interests in various Lazard-managed alternative asset management funds.

Fixed income funds primarily consist of (i) seed investments in Asset Management products, which invest in fixed income securities and (ii) amounts relating to Lazard Fund Interests 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) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies, (ii) Corporate Partners II Limited (“CP II”), a private equity fund targeting significant noncontrolling-stake investments in established public and private companies, (iii) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a private equity fund primarily making equity and buyout investments in lower middle market companies, (iv) Lazard Senior Housing Partners LP (“Senior Housing”), which targets controlling interests in companies and assets in the senior housing, extended-stay hotel and shopping center sectors, and (v) Lazard Australia Corporate Opportunities Fund 2 (“COF 2”), a Lazard-managed Australian private equity fund.

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”) which aggregated $19,932 and $18,502 at June 30, 2012 and December 31, 2011, respectively.

During the three month and six month periods ended June 30, 2012 and 2011, the Company recognized gross investment gains and losses in “revenue-other” on its condensed consolidated statements of operations as follows:

	Three Month Period Ended  June 30,				Six Month Period  Ended June 30,
	2012		2011		2012		2011
Gross investment gains	$	1,715	$	8,830	$	29,359	$	15,205
Gross investment losses	$	3,052	$	2,235	$	4,036	$	3,251

The table above includes gross unrealized investment gains and losses pertaining to “trading” securities as follows:
	Three Month Period Ended June 30,				Six Month Period Ended June 30,
	2012		2011		2012		2011
Gross unrealized investment gains	$	373	$	641	$	1,418	$	1,214
Gross unrealized investment losses	$	1,721	$	193	$	1,721	$	313

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Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

5. FAIR VALUE MEASUREMENTS

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, (ii) assets valued based on NAV or its equivalent redeemable at the measurement date or within the near term without redemption restrictions, or (iii) 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 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, as well as assets valued based on NAV or its equivalent, but not redeemable within the near term as a result of redemption restrictions.

The Company’s investments in U.S. and non-U.S. Government and other debt securities are considered Level 1 assets when their respective fair values are based on unadjusted quoted prices in active markets and are considered Level 2 assets when their fair values are primarily based on prices as provided by external pricing services.

The fair value of equities is principally classified as Level 1, Level 2 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; public asset management funds are classified as Level 1 and are valued based on the reported closing price for the fund; investments in private asset management funds redeemable in the near term are classified as Level 2 and valued at NAV or its equivalent, which is primarily determined based on information provided by fund managers and, secondarily, from external pricing services to the extent managed by LAM; and Level 3 represents equities valued based on NAV or its equivalent that are not redeemable within the near term.

The fair value of interests in alternative asset management funds is classified as either Level 2 or Level 3 depending on the time frame of any applicable redemption restriction, and is valued at NAV or its equivalent, which is primarily determined based on information provided by fund managers and, secondarily, from external pricing services to the extent managed by LAM.

The Company’s investments in fixed income funds are considered Level 1 assets when the fair values are based on the reported closing price for the fund or Level 2 assets when the fair values are primarily based on broker quotes as provided by external pricing services.

The fair value of private equity investments is classified as Level 3, and is primarily based on NAV or its equivalent. Such investments are not redeemable within the near term.

The fair values of derivatives entered into by the Company are classified as Level 2 and are based on the values of the related underlying assets, indices or reference rates as follows - the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the currency from the trade date to settlement date; the fair value of equity and fixed income swaps is based on the change in fair values of the related underlying equity security, financial instrument or index and a specified notional holding; the fair values of interest rate swaps are based on the interest rate yield curve; and the fair value of derivative liabilities related to Lazard Fund Interests and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for estimated forfeitures.

Where information reported is based on broker quotes, the Company generally obtains one quote/price per instrument. Where information reported is based on data received from fund managers or from external pricing services, the Company reviews such information to ascertain at which level within the fair value hierarchy to classify the investment.

The following tables present the categorization of investments and certain other assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011 into the three-level fair value hierarchy in accordance with fair value measurement disclosure requirements:

	June 30, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	13,302	$	4,253	$	–	$	17,555
Equities		168,187		43,936		191		212,314
Other (excluding equity method investments):
Interests in alternative asset management funds		–		31,884		4,616		36,500
Fixed income funds		33,211		13,954		–		47,165
Private equity		–		–		113,991		113,991
Derivatives		–		4,449		–		4,449
Total	$	214,700	$	98,476	$	118,798	$	431,974
Liabilities:
Securities sold, not yet purchased	$	1,097	$	–	$	–	$	1,097
Derivatives		–		87,495		–		87,495
Total	$	1,097	$	87,495	$	–	$	88,592
	December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	17,111	$	17,021	$	–	$	34,132
Equities		115,380		37,332		3,341		156,053
Other (excluding equity method investments):
Interests in alternative asset management funds		–		13,569		7,041		20,610
Fixed income funds		27,539		3,582		–		31,121
Private equity		–		–		122,718		122,718
Derivatives		–		7,131		–		7,131
Total	$	160,030	$	78,635	$	133,100	$	371,765
Liabilities:
Securities sold, not yet purchased	$	4,282	$	–	$	–	$	4,282
Derivatives		–		30,713		–		30,713
Total	$	4,282	$	30,713	$	–	$	34,995

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 six month periods ended June 30, 2012 and 2011.

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets for the three month and six month periods ended June 30, 2012 and 2011:

	Three Months Ended June 30, 2012
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)			Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	227	$	5		$	–	$	(30	)	$	(11	)	$	191
Interests in alternative asset management funds		5,905		(38	)		10		(1,261	)		–			4,616
Private equity		116,563		4,786			56		(4,873	)		(2,541	)		113,991
Total Level 3 Assets	$	122,695	$	4,753		$	66	$	(6,164	)	$	(2,552	)	$	118,798

	Six Months Ended June 30, 2012
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	3,341	$	5	$	10	$	(3,160	)	$	(5	)	$	191
Interests in alternative asset management funds		7,041		89		10		(2,524	)		–			4,616
Private equity		122,718		12,350		2,752		(22,745	)		(1,084	)		113,991
Total Level 3 Assets	$	133,100	$	12,444	$	2,772	$	(28,429	)	$	(1,089	)	$	118,798

	Three Months Ended June 30, 2011
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Investments:
Equities	$	129	$	3	$	–	$	–		$	3	$	135
Private equity		171,487		3,545		922		(2,052	)		802		174,704
Total Level 3 Assets	$	171,616	$	3,548	$	922	$	(2,052	)	$	805	$	174,839

	Six Months Ended June 30, 2011
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Investments:
Equities	$	316	$	3	$	–	$	(195	)	$	11	$	135
Private equity		163,482		3,824		13,075		(9,160	)		3,483		174,704
Total Level 3 Assets	$	163,798	$	3,827	$	13,075	$	(9,355	)	$	3,494	$	174,839

(a) Earnings for the three month and six month periods ended June 30, 2012 and three month and six month periods ended June 30, 2011 include net unrealized gains of $3,483, $9,563, $3,538 and $3,817, respectively.

Fair Value of Certain Investments Based on NAV—The Company’s Level 2 and Level 3 investments at June 30, 2012 and December 31, 2011 include certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value. Information with respect thereto was as follows:

	June 30, 2012
					% of			Estimated Liquidation Period of Investments Not Redeemable									Investments Redeemable
	Fair Value		Unfunded Commitments		Fair Value Not Redeemable			% Next 5 Years			% 5-10 Years			% Thereafter			Redemption Frequency	Redemption Notice Period
Equity funds	$	43,908	$	–		2	%		1	%		0	%		1	%	Quarterly	60 Days
Interests in alternative asset management funds		36,500		–		0	%		0	%		0	%		0	%	Quarterly	>90 Days
Fixed income funds		13,954		–		0	%		0	%		0	%		0	%	Monthly	60 Days
Private equity funds		112,392		35,726		100	%		25	%		35	%		40	%	NA	NA
Total	$	206,754	$	35,726
	December 31, 2011
					% of			Estimated Liquidation Period of Investments Not Redeemable									Investments Redeemable
	Fair Value		Unfunded Commitments		Fair Value Not Redeemable			% Next 5 Years			% 5-10 Years			% Thereafter			Redemption Frequency	Redemption Notice Period
Equity funds	$	40,512	$	–		2	%		1	%		0	%		1	%	Quarterly	60 Days
Interests in alternative asset management funds		20,600		–		0	%		0	%		0	%		0	%	Quarterly	>90 Days
Fixed income funds		3,582		–		0	%		0	%		0	%		0	%	Monthly	60 Days
Private equity funds		121,276		52,197		100	%		33	%		28	%		39	%	NA	NA
Total	$	185,970	$	52,197

Investment Capital Funding Commitments—At June 30, 2012, the current maximum unfunded commitments by the Company for capital contributions to investment funds related to (i) CP II, amounting to $2,124 for potential “follow-on investments” and/or for fund expenses through the earlier of February 25, 2017 or the liquidation of the fund, (ii) EGCP III, amounting to $25,673 through the earlier of October 12, 2016 (i.e., the end of the investment period) for investments and/or expenses (with a portion of the undrawn amount of such commitment as of that date remaining committed until October 12, 2023 in respect of “follow-on investments” and/or fund expenses) or the liquidation of the fund and (iii) COF 2, amounting to $7,929, through the earlier of November 11, 2016 (i.e., the end of the investment period) for investments and/or fund expenses (with a portion of the undrawn amount of such commitment as of that date remaining committed until November 11, 2019 in respect of “follow-on investments” and/or fund expenses) or the liquidation of the fund.

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Business Acquisitions

6 Months Ended

Jun. 30, 2012

Business Acquisitions [Abstract]

BUSINESS ACQUISITIONS

7. BUSINESS ACQUISITIONS

On July 15, 2009, the Company established a private equity business with Edgewater. Edgewater manages funds primarily focused on buy-out and growth equity investments in middle market companies. The acquisition was structured as a purchase by Lazard Group of interests in a holding company that in turn owns interests in the general partner and management company entities of the current Edgewater private equity funds (the “Edgewater Acquisition”). Following the Edgewater Acquisition, Edgewater’s management team retained a substantial economic interest in such entities. Edgewater’s activities are recorded in the Company’s Asset Management segment.

The aggregate fair value of the consideration recognized by the Company at the acquisition date was $61,624. Such consideration consisted of (i) a one-time cash payment, (ii) 1,142,857 shares of Class A common stock (the “Initial Shares”) and (iii) up to 1,142,857 additional shares of Class A common stock subject to earnout criteria and payable over time (the “Earnout Shares”). The Initial Shares are subject to forfeiture provisions that lapse only upon the achievement of certain performance thresholds and transfer restrictions during the four year period ending December 2014. The Earnout Shares will be issued only if certain performance thresholds are met. On December 30, 2011, 285,715 Initial Shares and 57,287 Earnout Shares became unrestricted or were otherwise delivered.

In prior years, the Company made certain other business acquisitions. These purchases were effected through an exchange of a combination of cash, Class A common stock, and by Lazard Ltd issuing shares of non-participating convertible Series A and Series B preferred stock, which were each convertible into Class A common stock. In connection with such acquisitions, as of both June 30, 2012 and December 31, 2011, 47,474 shares of Class A common stock were issuable on a non-contingent basis. At June 30, 2012, no shares of Series A preferred stock were convertible into shares of Class A common stock on a contingent or a non-contingent basis. See Note 12 of Notes to Condensed Consolidated Financial Statements for additional information relating to preferred stock.

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Stockholders' Equity (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Lazard Group distributed amounts to LAZ-MD Holdings and the subsidiaries of Lazard Ltd
Amounts distributed by Lazard Group	$ 45,427	$ 35,029
LAZ-MD Holdings [Member]
Lazard Group distributed amounts to LAZ-MD Holdings and the subsidiaries of Lazard Ltd
Amounts distributed by Lazard Group	2,416	2,174
Subsidiaries of Lazard Ltd [Member]
Lazard Group distributed amounts to LAZ-MD Holdings and the subsidiaries of Lazard Ltd
Amounts distributed by Lazard Group	$ 43,011	$ 32,855

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Stockholders' Equity (Details 2)	6 Months Ended			6 Months Ended
	Jun. 30, 2011	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Lazard Ltd [Member]	Jun. 30, 2011 Lazard Ltd [Member]	Jun. 30, 2012 LAZ-MD Holdings [Member]	Jun. 30, 2011 LAZ-MD Holdings [Member]
Ownership Interest Roll Forward
Beginning balance (in shares)	127,350,561	129,766,090	129,766,090	123,009,311	119,697,936	6,756,779	7,652,625
Percentage of Ownership, Beginning Balance				94.80%	94.00%	5.20%	6.00%
Common membership interest activity in connection with: Exchanges for Class A common stock				186,701	728,385	(186,701)	(728,385)
Repurchase of common membership interests from LAZ-MD Holdings	(19,032)						(19,032)
Ending balance (in shares)	127,331,529	129,766,090	129,766,090	123,196,012	120,426,321	6,570,078	6,905,208
Percentage of Ownership, Ending Balance				94.90%	94.60%	5.10%	5.40%

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Commitments and Contingencies (Details Textual) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Commitments and Contingencies (Textual) [Abstract]
Guarantees indemnifications	$ 5,000
Collateral/counter-guarantees	4,000
Other commitments	$ 22,000

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2012

Goodwill and Other Intangible Assets [Abstract]

Components of goodwill and other intangible assets

The components of goodwill and other intangible assets at June 30, 2012 and December 31, 2011 are presented below:

	June 30,		December 31,
	2012		2011
Goodwill	$	360,993	$	356,657
Other intangible assets (net of accumulated amortization)		33,175		36,442
Total	$	394,168	$	393,099

Changes in the carrying amount of goodwill

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2012, and 2011 are as follows:

	Six Months Ended June 30,
	2012		2011
Balance, January 1	$	356,657	$	313,229
Business acquisitions		4,272		–
Foreign currency translation adjustments		64		7,182
Balance, June 30	$	360,993	$	320,411

Gross cost and accumulated amortization of other intangible assets

The gross cost and accumulated amortization of other intangible assets as of June 30, 2012 and December 31, 2011, by major intangible asset category, are as follows:

	June 30, 2012						December 31, 2011
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	30,740	$	8,510	$	22,230	$	30,740	$	7,122	$	23,618
Management fees, customer relationships and non-compete agreements		33,035		22,090		10,945		32,624		19,800		12,824
Total	$	63,775	$	30,600	$	33,175	$	63,364	$	26,922	$	36,442

Estimated future amortization expense

Year Ending December 31,	Future Amortization Expense (a)
2012 (July 1 through December 31)	$	2,641
2013		9,372
2014		8,901
2015		6,953
2016		5,308
Total	$	33,175

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Fair Value Measurements (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Fair Value, Option, Quantitative Disclosures [Line Items]
Unfunded Commitments	$ 35,726		$ 35,726		$ 52,197
Fair Value Measurements (Textual) [Abstract]
Net unrealized gain	3,483	3,538	9,563	3,817
EGCP III [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
End of the investment period			Oct. 12, 2016
CP II [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
End of the investment period			Feb. 25, 2017
Private equity [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Unfunded Commitments	35,726		35,726		52,197
Maximum [Member] | EGCP III [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Unfunded Commitments	25,673		25,673
Remaining commitment date			Oct. 12, 2023
Maximum [Member] | CP II [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Unfunded Commitments	2,124		2,124
Maximum [Member] | COF 2 [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Unfunded Commitments	$ 7,929		$ 7,929
Remaining commitment date			Nov. 11, 2019
Minimum [Member] | COF 2 [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Remaining commitment date			Nov. 11, 2016

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Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

12. STOCKHOLDERS’ EQUITY

Lazard Group Distributions—As previously described, Lazard Group’s common membership interests are held by subsidiaries of Lazard Ltd and by LAZ-MD Holdings. Pursuant to provisions of the Operating Agreement, Lazard Group distributions in respect of its common membership interests are allocated to the holders of such interests on a pro rata basis. Such distributions 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 and the members of LAZ-MD Holdings incur as a result of holding Lazard Group common membership interests.

During the six month periods ended June 30, 2012 and 2011, Lazard Group distributed the following amounts to LAZ-MD Holdings and the subsidiaries of Lazard Ltd (none of which related to tax distributions):

	Six Months Ended June 30,
	2012		2011
LAZ-MD Holdings	$	2,416	$	2,174
Subsidiaries of Lazard Ltd		43,011		32,855
Total	$	45,427	$	35,029

Pursuant to the 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.

Exchange of Lazard Group Common Membership Interests— During the six month periods ended June 30, 2012 and 2011, Lazard Ltd issued 186,701 and 728,385 shares of Class A common stock, respectively, in connection with the exchange of a like number of Lazard Group common membership interests (received from members of LAZ-MD Holdings in exchange for a like number of LAZ-MD Holdings exchangeable interests).

See “Noncontrolling Interests” below for additional information regarding Lazard Ltd’s and LAZ-MD Holdings’ ownership interests in Lazard Group.

Share Repurchase Program—In February 2011, October 2011 and April 2012, the Board of Directors of Lazard Ltd authorized, on a cumulative basis, the repurchase of up to $250,000, $125,000 and $125,000, respectively, in aggregate cost of Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013 and December 31, 2013, respectively. The Company’s prior share repurchase authorizations expired on December 31, 2009 and December 31, 2011. The Company expects that the share repurchase program, with respect to the Class A common stock, will continue to be used, among other ways, to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2005 Equity Incentive Plan (the “2005 Plan”) and the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”). Pursuant to such authorizations, purchases have been made in the open market or through privately negotiated transactions. During the six month period ended June 30, 2012, the Company purchased 5,706,592 shares of Class A common stock, at an aggregate cost of $152,413 (no Lazard Group common membership interests were purchased during such six month period).

As of June 30, 2012, $184,730 of the current aggregate share repurchase amount authorized as of such date remained available under the share repurchase program, all of which expires on December 31, 2013. In addition, under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of restricted stock units (“RSUs”), shares of Class A common stock may be withheld by the Company to cover the recipient’s estimated income tax liability (see Note 13 of Notes to Condensed Consolidated Financial Statements).

During the first half of 2012, the Company had written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 in place, pursuant to which it effected stock repurchases through the open market.

Preferred Stock—Lazard Ltd has 15,000,000 authorized shares of preferred stock, par value $0.01 per share, inclusive of its Series A preferred stock and Series B preferred stock. The Series A and Series B preferred shares are each non-participating securities that are or were each convertible into Class A common stock, and have no voting or dividend rights. As of both June 30, 2012 and December 31, 2011, 7,921 shares of Series A preferred stock were outstanding, and no shares of Series B preferred stock were outstanding at such respective dates.

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The components of AOCI at June 30, 2012 and December 31, 2011 are as follows:

	June 30,			December 31,
	2012			2011
Currency translation adjustments	$	1,765		$	3,719
Interest rate hedge		(3,030	)		(3,557	)
Employee benefit plans		(97,050	)		(92,637	)
Total AOCI		(98,315	)		(92,475	)
Less amount attributable to noncontrolling interests		(4,144	)		(4,111	)
Total Lazard Ltd AOCI	$	(94,171	)	$	(88,364	)

Noncontrolling Interests—Noncontrolling interests principally represent interests held in (i) Lazard Group by LAZ-MD Holdings and (ii) Edgewater’s management vehicles that the Company is deemed to control, but does not own.

As of June 30, 2012 and December 31, 2011, LAZ-MD Holdings held approximately 5.1% and 5.2%, respectively, of the outstanding Lazard Group common membership interests. Subject to certain limitations, LAZ-MD Holdings’ interests in Lazard Group are exchangeable for Class A common stock.

The following tables summarize the changes in ownership interests in Lazard Group held by Lazard Ltd and LAZ-MD Holdings during the six month periods ended June 30, 2012, and 2011:

	Lazard Ltd					LAZ-MD Holdings						Total Lazard Group Common Membership Interests
	Common Membership Interests		% Ownership			Common Membership Interests			% Ownership
Balance, January 1, 2011		119,697,936		94.0	%		7,652,625			6.0	%		127,350,561
Activity January 1, 2011 to June 30, 2011:
Common membership interest activity in connection with:
Exchanges for Class A common stock		728,385					(728,385	)					–
Repurchase of common membership interests from LAZ-MD Holdings		–					(19,032	)					(19,032	)
Balance, June 30, 2011		120,426,321		94.6	%		6,905,208			5.4	%		127,331,529
Balance, January 1, 2012		123,009,311		94.8	%		6,756,779			5.2	%		129,766,090
Activity January 1, 2012 to June 30, 2012:
Common membership interest activity in connection with:
Exchanges for Class A common stock		186,701					(186,701)						–
Balance, June 30, 2012		123,196,012		94.9	%		6,570,078			5.1	%		129,766,090

The change in Lazard Ltd’s ownership in Lazard Group in the six month periods ended June 30, 2012 and 2011 did not materially impact Lazard Ltd’s stockholders’ equity.

The tables below summarize net income attributable to noncontrolling interests for the three month and six month periods ended June 30, 2012 and 2011 and noncontrolling interests as of June 30, 2012 and December 31, 2011 in the Company’s accompanying condensed consolidated financial statements:

	Net Income (Loss) Attributable To Noncontrolling Interests
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
LAZ-MD Holdings		$1,694		$	4,012		$	3,019		$	7,746
Edgewater		1,698			5,882			3,872			6,905
Other		(51	)		(332	)		(46	)		(113	)
Total		$3,341		$	9,562		$	6,845		$	14,538

	Noncontrolling Interests As Of
	June 30, 2012		December 31, 2011
LAZ-MD Holdings	$	34,506	$	31,954
Edgewater		86,235		91,713
Other		1,242		17,046
Total	$	121,983	$	140,713

Dividend Declared, July, 2012—On July 25, 2012, the Board of Directors of Lazard Ltd declared a quarterly dividend of $0.20 per share on its Class A common stock, payable on August 24, 2012, to stockholders of record on August 6, 2012.

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Related Parties

6 Months Ended

Jun. 30, 2012

Related Parties [Abstract]

RELATED PARTIES

17. RELATED PARTIES

Amounts receivable from, and payable to, related parties are set forth below:

	June 30, 2012		December 31, 2011
Receivables
LFCM Holdings		$10,416		$14,790
Other		3,686		3,711
Total		$14,102		$18,501
Payables
LFCM Holdings		$  6,189		$  4,850
Other		891		1,225
Total		$  7,080		$  6,075

LFCM Holdings

LFCM Holdings owns and operates the capital markets business and fund management activities, as well as other specified non-operating assets and liabilities, that were transferred to it by Lazard Group (referred to as the “separated businesses”) in May 2005 and is owned by various current and former working members, including certain of Lazard’s current and former managing directors (which also include the Company’s executive officers) who were or are also members of LAZ-MD Holdings. In addition to the master separation agreement dated as of May 10, 2005, by and among Lazard Ltd, Lazard Group, LAZ-MD Holdings and LFCM Holdings (the “master separation agreement”), which effected the separation and recapitalization that occurred in May 2005, LFCM Holdings entered into certain agreements that addressed various business matters associated with the separation, including agreements related to administrative and support services (the “administrative services agreement”), employee benefits, insurance matters and licensing. In addition, LFCM Holdings and Lazard Group entered into a business alliance agreement (the “business alliance agreement”). Certain of these agreements are described in more detail in the Company’s Form 10-K.

For the three month and six month periods ended June 30, 2012, amounts recorded by Lazard Group relating to the administrative services agreement amounted to $702 and $1,515, respectively, and net referral fees for underwriting, private placement, M&A and restructuring transactions under the business alliance agreement amounted to $3,552 and $4,366, respectively. For the three month and six month periods ended June 30, 2011, amounts recorded by Lazard Group relating to the administrative services agreement amounted to $578 and $1,192, respectively, and net referral fees for underwriting, private placement, M&A and restructuring transactions under the business alliance agreement amounted to $6,200 and $13,147, respectively. Amounts relating to the administrative services agreement are reported as reductions to operating expenses. Net referral fees for underwriting transactions under the business alliance agreement are reported in “revenue-other”. Net referral fees for private placement, M&A and restructuring transactions under the business alliance agreement are reported in advisory fee revenue.

Receivables from LFCM Holdings and its subsidiaries as of June 30, 2012 and December 31, 2011 include $3,825 and $11,862, respectively, related to administrative and support services, and other receivables which include sublease income and reimbursement of expenses incurred on behalf of LFCM Holdings, and $6,591 and $2,928, respectively, related to referral fees for underwriting and private placement transactions. Payables to LFCM Holdings and its subsidiaries at June 30, 2012 and December 31, 2011 consist of $6,189 and $2,060, respectively, principally relating to certain advances and referral fees for Financial Advisory transactions and, at December 31, 2011, obligations pursuant to the tax receivable agreement of $2,790 (see Note 15 of Notes to Condensed Consolidated Financial Statements).

Other

Other receivables and payables at June 30, 2012 and December 31, 2011 primarily relate to referral fees for restructuring and M&A transactions with MBA Lazard Holdings S.A. and its affiliates, an Argentina-based group in which the Company has a 50% ownership interest, and a related party loan.

LAZ-MD Holdings

Lazard Group provides selected administrative and support services to LAZ-MD Holdings through the administrative services agreement as discussed above, with such services generally to be provided until December 31, 2014 unless terminated earlier because of a change in control of either party. Lazard Group charges LAZ-MD Holdings for these services based on Lazard Group’s cost allocation methodology and, for the three month and six month periods ended June 30, 2012, such charges amounted to $187 and $375, respectively. For the three month and six month periods ended June 30, 2011, such charges amounted to $187 and $375, respectively.

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Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of changes in fair value of the Company's Level 3 assets
Beginning Balance	$ 122,695	$ 171,616	$ 133,100	$ 163,798
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	4,753	3,548	12,444	3,827
Purchases/Acquisitions	66	922	2,772	13,075
Sales/Dispositions	(6,164)	(2,052)	(28,429)	(9,355)
Foreign Currency Translation Adjustments	(2,552)	805	(1,089)	3,494
Ending Balance	118,798	174,839	118,798	174,839
Equities [Member]
Summary of changes in fair value of the Company's Level 3 assets
Beginning Balance	227	129	3,341	316
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	5	3	5	3
Purchases/Acquisitions			10
Sales/Dispositions	(30)		(3,160)	(195)
Foreign Currency Translation Adjustments	(11)	3	(5)	11
Ending Balance	191	135	191	135
Interests in alternative asset management funds [Member]
Summary of changes in fair value of the Company's Level 3 assets
Beginning Balance	5,905		7,041
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	(38)		89
Purchases/Acquisitions	10		10
Sales/Dispositions	(1,261)		(2,524)
Ending Balance	4,616		4,616
Private equity [Member]
Summary of changes in fair value of the Company's Level 3 assets
Beginning Balance	116,563	171,487	122,718	163,482
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	4,786	3,545	12,350	3,824
Purchases/Acquisitions	56	922	2,752	13,075
Sales/Dispositions	(4,873)	(2,052)	(22,745)	(9,160)
Foreign Currency Translation Adjustments	(2,541)	802	(1,084)	3,483
Ending Balance	$ 113,991	$ 174,704	$ 113,991	$ 174,704

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Schedule of 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 June 30,						Six Months Ended June 30,
		2012			2011			2012			2011
Financial Advisory
	Net Revenue	$	242,624		$	249,191		$	519,820		$	478,036
	Operating Expenses		231,200			214,217			481,097			427,783
	Operating Income	$	11,424		$	34,974		$	38,723		$	50,253
Asset Management
	Net Revenue	$	211,053		$	244,855		$	425,580		$	471,708
	Operating Expenses		156,619			160,914			317,120			310,118
	Operating Income	$	54,434		$	83,941		$	108,460		$	161,590
Corporate
	Net Revenue	$	(16,767	)	$	(16,754	)	$	(22,451	)	$	(34,429	)
	Operating Expenses		4,558			12,959			42,376			14,766
	Operating Loss	$	(21,325	)	$	(29,713	)	$	(64,827	)	$	(49,195	)
Total
	Net Revenue	$	436,910		$	477,292		$	922,949		$	915,315
	Operating Expenses		392,377			388,090			840,593			752,667
	Operating Income	$	44,533		$	89,202		$	82,356		$	162,648

	As Of
	June 30, 2012		December 31, 2011
Total Assets
Financial Advisory	$	747,456	$	767,699
Asset Management		491,239		583,524
Corporate		1,739,159		1,730,713
Total	$	2,977,854	$	3,081,936

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidated Statements of Comprehensive Income [Abstract]
NET INCOME	$ 34,162	$ 71,566	$ 63,218	$ 131,549
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Currency translation adjustments	(21,083)	8,436	(1,954)	32,174
Amortization of interest rate hedge	263	263	527	527
Employee benefit plans:
Net actuarial gain (loss) (net of tax benefit (expense) of $1,443 and $(29) for the three months ended June 30, 2012 and 2011, respectively, and $2,725 and $1,906 for the six months ended June 30, 2012 and 2011, respectively)	(3,457)	55	(6,054)	(3,630)
Adjustment for items reclassified to earnings (net of tax expense of $281 and $262 for the three months ended June 30, 2012 and 2011, respectively, and $578 and $517 for the six months ended June 30, 2012 and 2011, respectively)	826	566	1,641	1,114
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(23,451)	9,320	(5,840)	30,185
COMPREHENSIVE INCOME	10,711	80,886	57,378	161,734
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	2,096	9,942	6,698	16,187
COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD LTD	$ 8,615	$ 70,944	$ 50,680	$ 145,547

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Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2012

Organization and Basis of Presentation [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”, “Lazard”, “we” or the “Company”), including Lazard Ltd’s indirect investment in Lazard Group LLC, a Delaware limited liability company (collectively referred to, together with its subsidiaries, as “Lazard Group”), is one of the world’s preeminent financial advisory and asset management firms and has long specialized in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, partnerships, institutions, governments and individuals.

Lazard Ltd indirectly held approximately 94.9% and 94.8% of all outstanding Lazard Group common membership interests as of June 30, 2012 and December 31, 2011, respectively. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Operating Agreement dated as of May 10, 2005, as amended (the “Operating Agreement”). LAZ-MD Holdings LLC (“LAZ-MD Holdings”), an entity owned by Lazard Group’s current and former managing directors, held approximately 5.1% and 5.2% of the outstanding Lazard Group common membership interests as of June 30, 2012 and December 31, 2011, respectively. Additionally, LAZ-MD Holdings was the sole owner of the one issued and outstanding share of Lazard Ltd’s Class B common stock (the “Class B common stock”) which provided LAZ-MD Holdings with approximately 5.1% and 5.2% of the voting power but no economic rights in the Company as of such respective dates. Subject to certain limitations, LAZ-MD Holdings’ interests in Lazard Group are exchangeable for Lazard Ltd Class A common stock, par value $0.01 per share (“Class A common stock”).

Our sole operating asset is our indirect ownership of common membership interests of Lazard Group and our managing member interest of Lazard Group, whose principal operating activities are included in two business segments:

• Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding mergers and acquisitions (“M&A”) and other strategic matters, restructurings, capital structure, capital raising and various other financial matters, and

• Asset Management, which offers a broad range of investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients globally.

In addition, we record selected other activities in our Corporate segment, including management of cash, certain investments and the commercial banking activities of Lazard Group’s Paris-based Lazard Frères Banque SA (“LFB”). We also record outstanding indebtedness in our Corporate segment.

LFB is a registered bank regulated by the Autorité de Contrôle Prudentiel. It is engaged primarily in commercial and private banking services for clients and funds managed by Lazard Frères Gestion SAS (“LFG”) and other clients, investment banking activities, including participation in underwritten offerings of securities in France, asset-liability management and limited trading in securities and foreign exchange.

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2011 (the “Form 10-K”). The accompanying December 31, 2011 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. 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 six month periods ended June 30, 2012 are not necessarily indicative of the results to be expected for any future interim or annual period.

The condensed consolidated financial statements include Lazard Ltd, Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”) along with its subsidiaries, LFB and LFG, and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries.

The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities (“VIEs”) where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company is the general partner, unless the presumption of control is overcome. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated.

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Goodwill and Other Intangible Assets (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Gross cost and accumulated amortization of other intangible assets
Other intangible assets, Gross Cost	$ 63,775	$ 63,364
Other intangible assets, Accumulated Amortization	30,600	26,922
Other intangible assets, Net Carrying Amount	33,175	36,442
Success/Performance Fees [Member]
Gross cost and accumulated amortization of other intangible assets
Other intangible assets, Gross Cost	30,740	30,740
Other intangible assets, Accumulated Amortization	8,510	7,122
Other intangible assets, Net Carrying Amount	22,230	23,618
Management Fees, Customer Relationships and Non-Compete Agreements [Member]
Gross cost and accumulated amortization of other intangible assets
Other intangible assets, Gross Cost	33,035	32,624
Other intangible assets, Accumulated Amortization	22,090	19,800
Other intangible assets, Net Carrying Amount	$ 10,945	$ 12,824

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Regulatory Authorities (Details Textual) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Regulatory Authorities (Textual) [Abstract]
Minimum capital requirement is defined as -A fixed percentage of total aggregate indebtedness recorded in the FOCUS report or $100 whichever is greater	$ 100
LFNY [Member]
Regulatory Authorities [Line Items]
Regulatory net capital	74,299
Regulatory capital in excess of minimum requirement	68,933
U.K. Subsidiaries [Member]
Regulatory Authorities [Line Items]
Regulatory net capital	130,437
Regulatory capital in excess of minimum requirement	106,893
CFLF [Member]
Regulatory Authorities [Line Items]
Regulatory net capital	168,117
Regulatory capital in excess of minimum requirement	75,989
Other U.S. And Non-U.S. Subsidiaries [Member]
Regulatory Authorities [Line Items]
Regulatory net capital	107,826
Regulatory capital in excess of minimum requirement	$ 84,178

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Incentive Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of the impact of share-based incentive plans on compensation and benefits expense
Share-based incentive compensation	$ 66,350	$ 58,976	$ 152,486	$ 152,533
RSUs [Member]
Summary of the impact of share-based incentive plans on compensation and benefits expense
Share-based incentive compensation	63,428	57,552	145,319	142,410
DSUs [Member]
Summary of the impact of share-based incentive plans on compensation and benefits expense
Share-based incentive compensation	1,218	1,068	1,288	1,124
Restricted Stock [Member]
Summary of the impact of share-based incentive plans on compensation and benefits expense
Share-based incentive compensation	$ 1,704	$ 356	$ 5,879	$ 8,999

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Regulatory Authorities

6 Months Ended

Jun. 30, 2012

Regulatory Authorities [Abstract]

REGULATORY AUTHORITIES

18. 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 of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $100, whichever is greater. At June 30, 2012, LFNY’s regulatory net capital was $74,299, which exceeded the minimum requirement by $68,933.

Certain U.K. subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (the “U.K. Subsidiaries”) are regulated by the Financial Services Authority. At June 30, 2012, the aggregate regulatory net capital of the U.K. Subsidiaries was $130,437, which exceeded the minimum requirement by $106,893.

CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel for its banking activities conducted through its subsidiary, LFB. In addition, the investment services activities of the Paris group, exercised through LFB and other subsidiaries of CFLF, primarily LFG (asset management), are subject to regulation and supervision by the Autorité des Marchés Financiers. At June 30, 2012, the consolidated regulatory net capital of CFLF was $168,117, which exceeded the minimum requirement set for regulatory capital levels by $75,989.

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 June 30, 2012, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $107,826, which exceeded the minimum required capital by an aggregate of $84,178.

At June 30, 2012, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

Lazard Ltd had been subject to supervision by the SEC as a Supervised Investment Bank Holding Company (“SIBHC”). As a SIBHC, Lazard Ltd was subject to group-wide supervision, which required it to compute allowable capital and risk allowances on a consolidated basis. However, pursuant to Section 617 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the SEC’s SIBHC program was eliminated on July 21, 2011. Pursuant to relevant rules in the European Union, Lazard Ltd is required to be supervised by another regulatory body, either in the U.S., by the Board of Governors of the Federal Reserve, or the European Union, which we are examining. The Dodd-Frank Act and the rules and regulations that may be adopted thereunder (including regulations that have not yet been proposed) could have other effects on us. We continue to monitor the process as such rules are proposed and adopted.

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Incentive Plans (Details 5) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Compensation expense:
Amortization (including grants of awards to retirement-eligible recipients)	$ 10,800	$ 2,413	$ 16,985	$ 5,054
Change in fair value of compensation liability	(2,856)		(89)
Total	$ 7,944	$ 2,413	$ 16,896	$ 5,054

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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2012

Employee Benefit Plans [Abstract]

Components of net benefit cost

The following table summarizes the components of net periodic benefit cost for the three month and six month periods ended June 30, 2012 and 2011:

	Pension Plans						Post-Retirement Medical Plans
	Three Months Ended June 30,
	2012			2011			2012		2011
Components of Net Periodic Benefit Cost:
Service cost	$	166		$	169		$	19	$	19
Interest cost		6,885			7,092			52		69
Expected return on plan assets		(6,622	)		(7,644	)		–		–
Amortization of:
Prior service cost		687			762			–		–
Net actuarial loss		420			66			–		–
Settlement loss (a)		886			–			–		–
Net periodic benefit cost	$	2,422		$	445		$	71	$	88

	Pension Plans						Post-Retirement Medical Plans
	Six Months Ended June 30,
	2012			2011			2012		2011
Components of Net Periodic Benefit Cost:
Service cost	$	338		$	332		$	30	$	34
Interest cost		13,787			14,159			105		139
Expected return on plan assets		(13,294	)		(15,266	)		–		–
Amortization of:
Prior service cost		1,388			1,502			–		–
Net actuarial loss		831			129			–		–
Settlement loss (a)		886			–			–		–
Net periodic benefit cost	$	3,936		$	856		$	135	$	173

(a) During the three month period ended June 30, 2012, the Company’s pension plans in the U.S. made lump sum benefit payments in excess of the plans’ annual service and interest costs, which, under U.S. GAAP, requires that the plans’ obligations and assets be remeasured. The remeasurement of the plans resulted in the recognition of actuarial losses totaling $1,935 recorded in “other comprehensive income (loss), net of tax” (“OCI”), which, combined with a settlement loss of $886 recognized in “compensation and benefits” expense, resulted in a net charge to OCI of $1,049.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

11. COMMITMENTS AND CONTINGENCIES

Leases—The Company has various leases and other contractual commitments arising in the ordinary course of business. In the opinion of management, the fulfillment of such commitments, in accordance with their terms, will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

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 June 30, 2012, LFB had approximately $5,000 of such indemnifications and held approximately $4,000 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 consolidated statement of financial condition.

Other Commitments—In the normal course of business, LFB enters into commitments to extend credit, predominately at variable interest rates. Such commitments at June 30, 2012 aggregated approximately $22,000. These commitments have varying expiration dates and are fully collateralized and generally contain requirements for the counterparty to maintain a minimum collateral level. These commitments may not represent future cash requirements as they may expire without being drawn upon.

See Notes 5, 7 and 14 of Notes to Condensed Consolidated Financial Statements for information regarding commitments relating to investment capital funding commitments, business acquisitions and obligations to fund our pension plans, respectively.

The Company has various other contractual commitments arising in the ordinary course of business. In addition, from time to time, LFB enters into underwriting commitments in which it participates as a joint underwriter. The settlement of such transactions are not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations. At June 30, 2012, LFB had no such underwriting commitments.

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 does experience 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.