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, 2013

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 Website, 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 24, 2013, there were 129,056,081 shares of the Registrant’s Class A common stock (including 7,115,597 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, 2013 of approximately 99.5% 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		42
Item 3. Quantitative and Qualitative Disclosures About Market Risk		75
Item 4. Controls and Procedures		75
Part II. Other Information
Item 1. Legal Proceedings		76
Item 1A. Risk Factors		76
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		76
Item 3. Defaults Upon Senior Securities		77
Item 4. Mine Safety Disclosures		77
Item 5. Other Information		77
Item 6. Exhibits		78
Signatures		84

i

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

	Page
Condensed Consolidated Statements of Financial Condition as of June 30, 2013 and December 31, 2012		2
Condensed Consolidated Statements of Operations for the three month and six month periods ended June  30, 2013 and 2012		4
Condensed Consolidated Statements of Comprehensive Income for the three month and six month periods ended June 30, 2013 and 2012		5
Condensed Consolidated Statements of Cash Flows for the six month periods ended June 30, 2013 and 2012		6
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the six month periods ended June 30, 2013 and 2012		7
Notes to Condensed Consolidated Financial Statements		9

1

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2013 AND DECEMBER 31, 2012

(UNAUDITED)

(dollars in thousands, except for per share data)

	June 30, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	601,485	$	850,190
Deposits with banks		344,839		292,494
Cash deposited with clearing organizations and other segregated cash		60,767		65,232
Receivables (net of allowance for doubtful accounts of $24,593 and $23,017 at June 30, 2013 and December 31, 2012, respectively):
Fees		391,762		400,529
Customers and other		117,902		53,713
Related parties		15,242		23,801
		524,906		478,043
Investments		449,364		414,673
Property (net of accumulated amortization and depreciation of $232,487 and $225,861 at June 30, 2013 and December 31, 2012, respectively)		241,949		225,033
Goodwill and other intangible assets (net of accumulated amortization of $37,162 and $35,281 at June 30, 2013 and December 31, 2012, respectively)		375,207		392,822
Other assets		322,712		268,406
Total Assets	$	2,921,229	$	2,986,893

See notes to condensed consolidated financial statements.

2

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

JUNE 30, 2013 AND DECEMBER 31, 2012

(UNAUDITED)

(dollars in thousands, except for per share data)

	June 30, 2013			December 31, 2012
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits and other customer payables	$	385,985		$	269,763
Accrued compensation and benefits		336,194			467,578
Senior debt		1,076,850			1,076,850
Capital lease obligations		16,168			17,863
Related party payables		4,759			3,648
Other liabilities		509,062			499,651
Total Liabilities		2,329,018			2,335,353
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, 2013 and December 31, 2012		–			–
Series B - no shares issued and outstanding		–			–
Common stock:
Class A, par value $.01 per share (500,000,000 shares authorized; 129,056,081 and 128,216,423 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively, including shares held by subsidiaries as indicated below)		1,290			1,282
Class B, par value $.01 per share (1 share authorized, issued and outstanding at June 30, 2013 and December 31, 2012)		–			–
Additional paid-in-capital		659,365			846,050
Retained earnings		193,958			182,647
Accumulated other comprehensive loss, net of tax		(141,489	)		(110,541	)
		713,124			919,438
Class A common stock held by subsidiaries, at cost (7,159,311 and 12,802,938 shares at June 30, 2013 and December 31, 2012, respectively)		(195,040	)		(349,782	)
Total Lazard Ltd Stockholders’ Equity		518,084			569,656
Noncontrolling interests		74,127			81,884
Total Stockholders’ Equity		592,211			651,540
Total Liabilities and Stockholders’ Equity	$	2,921,229		$	2,986,893

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, 2013 AND 2012

(UNAUDITED)

(dollars in thousands, except for per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
REVENUE
Investment banking and other advisory fees		$260,241		$240,306		$428,345		$513,847
Money management fees		234,921		201,642		466,058		406,203
Interest income		1,345		1,715		2,476		3,865
Other		14,209		13,568		35,895		39,777
Total revenue		510,716		457,231		932,774		963,692
Interest expense		20,311		20,321		40,466		40,743
Net revenue		490,405		436,910		892,308		922,949
OPERATING EXPENSES
Compensation and benefits		331,131		283,392		608,870		621,709
Occupancy and equipment		39,738		28,347		69,042		54,629
Marketing and business development		25,377		22,322		43,569		50,589
Technology and information services		20,134		21,275		43,114		41,668
Professional services		10,706		13,274		19,319		22,585
Fund administration and outsourced services		15,388		12,670		28,853		26,121
Amortization of intangible assets related to acquisitions		1,004		2,560		1,881		3,678
Other		5,989		8,537		15,125		19,614
Total operating expenses		449,467		392,377		829,773		840,593
OPERATING INCOME		40,938		44,533		62,535		82,356
Provision for income taxes		9,017		10,371		12,965		19,138
NET INCOME		31,921		34,162		49,570		63,218
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		568		3,341		2,857		6,845
NET INCOME ATTRIBUTABLE TO LAZARD LTD		$  31,353		$  30,821		$  46,713		$  56,373
ATTRIBUTABLE TO LAZARD LTD CLASS A COMMON STOCKHOLDERS:
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic		121,759,982		118,235,320		119,734,093		118,732,431
Diluted		132,464,296		134,636,935		132,639,928		135,615,557
NET INCOME PER SHARE OF COMMON STOCK:
Basic		$0.26		$0.26		$0.39		$0.47
Diluted		$0.24		$0.24		$0.36		$0.44
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK		$0.25		$0.20		$0.25		$0.36

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, 2013 AND 2012

(UNAUDITED)

(dollars in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
NET INCOME	$	31,921		$	34,162		$	49,570		$	63,218
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Currency translation adjustments		(18,334	)		(21,083	)		(30,767	)		(1,954	)
Amortization of interest rate hedge		263			263			527			527
Employee benefit plans:
Actuarial gain (loss) (net of tax benefit (expense) of $(84) and $1,443 for the three months ended June 30, 2013 and 2012, respectively, and $1,711 and $2,725 for the six months ended June 30, 2013 and 2012, respectively)		704			(3,457	)		(2,719	)		(6,054	)
Adjustment for items reclassified to earnings (net of tax expense of $400 and $281 for the three months ended June 30, 2013 and 2012, respectively, and $802 and $578 for the six months ended June 30, 2013 and 2012, respectively)		1,212			826			2,430			1,641
OTHER COMPREHENSIVE LOSS, NET OF TAX		(16,155	)		(23,451	)		(30,529	)		(5,840	)
COMPREHENSIVE INCOME		15,766			10,711			19,041			57,378
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		546			2,096			2,678			6,698
COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD LTD	$	15,220		$	8,615		$	16,363		$	50,680

See notes to condensed consolidated financial statements.

5

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2013 AND 2012

(UNAUDITED)

(dollars in thousands)

	Six Months Ended June 30,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	49,570		$	63,218
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		16,593			14,800
Amortization of deferred expenses, share-based incentive compensation and interest rate hedge		166,905			173,083
Amortization of intangible assets related to acquisitions		1,881			3,678
(Increase) decrease in operating assets:
Deposits with banks		(55,064	)		(47,391	)
Cash deposited with clearing organizations and other segregated cash		3,242			(4,583	)
Receivables-net		(54,872	)		17,417
Investments		(37,502	)		(58,317	)
Other assets		(91,386	)		(59,656	)
Increase (decrease) in operating liabilities:
Deposits and other payables		120,637			60,091
Accrued compensation and benefits and other liabilities		(106,446	)		(127,851	)
Net cash provided by operating activities		13,558			34,489
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property		(41,347	)		(48,941	)
Disposals of property		5,739			2,053
Net cash used in investing activities		(35,608	)		(46,888	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Contribution from noncontrolling interests		324			784
Excess tax benefits from share-based incentive compensation		2,211			–
Other financing activities		–			10
Payments for:
Capital lease obligations		(1,542	)		(1,336	)
Distributions to noncontrolling interests		(7,605	)		(13,462	)
Purchase of Class A common stock		(50,447	)		(152,413	)
Class A common stock dividends		(30,338	)		(43,011	)
Settlement of vested share-based incentive compensation		(119,782	)		(29,421	)
Other financing activities		(103	)		(59	)
Net cash used in financing activities		(207,282	)		(238,908	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(19,373	)		(1,246	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(248,705	)		(252,553	)
CASH AND CASH EQUIVALENTS—January 1		850,190			1,003,791
CASH AND CASH EQUIVALENTS—June 30	$	601,485		$	751,238

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, 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.

7

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2013

(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, 2013		7,921	$	–		128,216,424	$	1,282	$	846,050		$	182,647		$	(110,541	)		12,802,938		$	(349,782	)	$	569,656		$	81,884		$	651,540
Comprehensive income (loss):
Net income													46,713												46,713			2,857			49,570
Other comprehensive income (loss) - net of tax:
Currency translation adjustments																(30,587	)								(30,587	)		(180	)		(30,767	)
Amortization of interest rate hedge																524									524			3			527
Employee benefit plans:
Net actuarial loss																(2,704	)								(2,704	)		(15	)		(2,719	)
Adjustments for items reclassified to earnings																2,417									2,417			13			2,430
Comprehensive income																									16,363			2,678			19,041
Business acquisitions and related equity transactions:
Class A common stock issuable (including related amortization)										635															635			3			638
Delivery of Class A common stock (including dividend-equivalents)										(4,994)			(179)						(170,988)			5,173			–						–
Amortization of share-based incentive compensation										127,381															127,381			700			128,081
Dividend-equivalents										4,173			(4,276	)											(103	)					(103	)
Class A common stock dividends													(30,338	)											(30,338	)					(30,338	)
Purchase of Class A common stock																			1,434,657			(50,447)			(50,447	)					(50,447	)
Delivery of Class A common stock in connection with shared-based incentive compensation and related tax benefit of $862										(318,332	)		(609	)					(6,907,296	)		200,016			(118,925	)		5			(118,920	)
Class A common stock issued in exchange for Lazard Group common membership interests						839,658		8		(8	)														–						–
Distributions to noncontrolling interests, net																									–			(7,281	)		(7,281	)
Adjustments related to noncontrolling interests										4,460						(598	)								3,862			(3,862	)		–
Balance – June 30, 2013		7,921	$–			129,056,082	$	1,290	$	659,365		$	193,958		$	(141,489	)		7,159,311		$	(195,040	)	$	518,084		$	74,127		$	592,211

^(*) Includes 128,216,423 and 129,056,081 shares of the Company’s Class A common stock issued at January 1, 2013 and June 30, 2013, 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, governments, institutions, partnerships and individuals.

Lazard Ltd indirectly held approximately 99.5% and 98.8% of all outstanding Lazard Group common membership interests as of June 30, 2013 and December 31, 2012, 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 0.5% and 1.2% of the outstanding Lazard Group common membership interests as of June 30, 2013 and December 31, 2012, 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 0.5% and 1.2% of the voting power but no economic rights in the Company as of June 30, 2013 and December 31, 2012, respectively. 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 global investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.

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

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, and asset-liability management.

9

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “Form 10-K”). The accompanying December 31, 2012 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an assumed annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates.

The consolidated results of operations for the three month and six month periods ended June 30, 2013 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 such entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated.

2. RECENT ACCOUNTING DEVELOPMENTS

Offsetting (Netting) Assets and Liabilities—In the first quarter of 2013, the Company adopted the new disclosure requirements issued by the Financial Accounting Standards Board (the “FASB”) regarding the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments, including derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either (i) offset or (ii) subject to an enforceable master netting arrangement. The new

10

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

disclosures are designed to make financial statements prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards (“IFRS”) and will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013, with retrospective application required. The adoption of the new disclosure requirements did not have a material impact on the Company’s consolidated financial statements.

Reclassifications Out of Accumulated Other Comprehensive Income—In the first quarter of 2013, the Company adopted the FASB’s amended guidance regarding the presentation of amounts reclassified out of accumulated other comprehensive income. The amendment required that the amounts reclassified out of accumulated other comprehensive income be presented by component and disclosed where the respective line item was reported in the consolidated statement of operations. The amendment was to be applied prospectively, and is effective with interim and annual periods beginning after December 15, 2012, with early adoption permitted. The adoption of the amended guidance did not have a material impact on the Company’s consolidated financial statements.

3. RECEIVABLES

The Company’s receivables represent receivables from fees, customers and other and related parties.

Receivables are stated net of an estimated allowance for doubtful accounts of $24,593 and $23,017 at June 30, 2013 and December 31, 2012, respectively, for past due amounts and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute. The Company recorded bad debt expense (recoveries) of $1,694 and $1,842 for the three month and six month periods ended June 30, 2013, respectively, and $(133) and $1,148 for the three month and six month periods ended June 30, 2012, 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 $94 and $(266) for the three month and six month periods ended June 30, 2013, respectively, and $(283) and $158 for the three month and six month periods ended June 30, 2012, respectively. At June 30, 2013 and December 31, 2012, the Company had receivables past due or deemed uncollectible of $27,831 and $25,604, respectively.

Of the Company’s total receivables at June 30, 2013 and December 31, 2012, $74,632 and $76,481, respectively, represented interest-bearing financing fee receivables. Based upon our historical loss experience, the credit quality of the counterparties, and the lack of past due or uncollectible amounts, there was no allowance for doubtful accounts required at those dates related to such receivables.

The aggregate carrying amount of our non-interest bearing receivables of $450,274 and $401,562 at June 30, 2013 and December 31, 2012, respectively, approximates fair value.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

4. INVESTMENTS

The Company’s investments and securities sold, not yet purchased, consisted of the following at June 30, 2013 and December 31, 2012:

	June 30, 2013		December 31, 2012
Debt (including interest-bearing deposits of $514 and $578, respectively)	$	7,508	$	5,948
Equities		51,957		44,992
Funds:
Alternative investments (a)		45,739		57,890
Debt (a)		48,490		32,077
Equity (a)		175,736		154,310
Private equity		112,833		112,444
		382,798		356,721
Equity method		7,101		7,012
Total investments		449,364		414,673
Less:
Interest-bearing deposits		514		578
Equity method		7,101		7,012
Investments, at fair value	$	441,749	$	407,083
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	3,263	$	2,755

(a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $7,631, $31,013 and $121,408, respectively, at June 30, 2013 and $5,054, $18,615 and $76,907, respectively, at December 31, 2012, 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 12 of Notes to Condensed Consolidated Financial Statements).

Debt securities primarily consist of seed investments invested in debt securities held within separately managed accounts related to our Asset Management business and non-U.S. government debt securities.

Equities primarily consist of seed investments invested in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts related to our Asset Management business.

Interests in alternative investment funds primarily consist of interests in various Lazard-managed hedge funds and fund of funds.

Debt funds primarily consist of seed investments in funds related to our Asset Management business, which invest in debt securities, and amounts related to Lazard Fund Interests discussed above.

Equity funds primarily consist of seed investments in funds related to our Asset Management business, which are invested in equity securities, and amounts related to Lazard Fund Interests discussed above.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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) a fund targeting significant noncontrolling-stake investments in established private companies, (iii) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies and (iv) Lazard Australia Corporate Opportunities Fund 2 (“COF2”), a Lazard-managed Australian fund targeting Australasian mid-market investments.

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 totaled $9,685 and $11,490 at June 30, 2013 and December 31, 2012, respectively (see Note 10 of Notes to Condensed Consolidated Financial Statements).

During the three month and six month periods ended June 30, 2013 and 2012, the Company reported in revenue-other on its condensed consolidated statements of operations gross unrealized investment gains and losses pertaining to “trading” securities as follows (including, for the three month and six month periods ended June 30, 2012, restated amounts pertaining to certain non-broker dealer subsidiaries):

	Three Month Period Ended June 30,				Six Month Period Ended June 30,
	2013		2012		2013		2012
Gross unrealized investment gains	$	–	$	373	$	3,748	$	9,623
Gross unrealized investment losses	$	9,547	$	8,324	$	6,536	$	2,346

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 net asset value (“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 trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis, 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 non-U.S. Government and other debt securities are classified as Level 1 when their respective fair values are based on unadjusted quoted prices in active markets and are classified as Level 2 when their fair values are primarily based on prices as provided by external pricing services.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

The fair value of equities is classified as Level 1 or Level 3 as follows: marketable equity securities are classified as Level 1 and are valued based on the last trade price on the primary exchange for that security as provided by external pricing services; equity securities in private companies are generally classified as Level 3.

The fair value of investments in alternative investment funds 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 external fund administrators.

The fair value of investments in debt funds is classified as Level 1 when the fair values are primarily based on the reported closing price for the fund, and classified as Level 2 when the fair values are primarily based on NAV or its equivalent and are redeemable within the near term.

The fair value of investments in equity funds is classified as Level 1, 2 or 3 as follows: publicly traded asset management funds are classified as Level 1 and are valued based on the reported closing price for the fund; investments in asset management funds redeemable in the near term are classified as Level 2 and are valued at NAV or its equivalent, which is primarily determined based on information provided by external fund administrators; and funds valued based on NAV or its equivalent that are not redeemable within the near term are classified as Level 3.

The fair value of investments in private equity funds 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 value of interest rate swaps is 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 forfeitures. See Note 6 of Notes to Condensed Consolidated Financial Statements.

Where reported information regarding an investment is based on data received from external fund administrators or pricing services, the Company reviews such information and classifies the investment at the relevant level within the fair value hierarchy.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

The following tables present the classification of investments and certain other assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 within the fair value hierarchy:

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	1,093	$	5,901	$	–	$	6,994
Equities		51,320		–		637		51,957
Funds:
Alternative investments		–		45,728		11		45,739
Debt		48,486		4		–		48,490
Equity		169,072		6,664		–		175,736
Private equity		–		–		112,833		112,833
Derivatives		–		6,947		–		6,947
Total	$	269,971	$	65,244	$	113,481	$	448,696
Liabilities:
Securities sold, not yet purchased	$	3,263	$	–	$	–	$	3,263
Derivatives		–		152,514		–		152,514
Total	$	3,263	$	152,514	$	–	$	155,777
	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	1,443	$	3,927	$	–	$	5,370
Equities		44,802		–		190		44,992
Funds:
Alternative investments		–		54,433		3,457		57,890
Debt		32,073		4		–		32,077
Equity		145,231		9,069		10		154,310
Private equity		–		–		112,444		112,444
Derivatives		–		933		–		933
Total	$	223,549	$	68,366	$	116,101	$	408,016
Liabilities:
Securities sold, not yet purchased	$	2,696	$	59	$	–	$	2,755
Derivatives		–		102,492		–		102,492
Total	$	2,696	$	102,551	$	–	$	105,247

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, 2013 and 2012.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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, 2013 and 2012:

	Three Months Ended June 30, 2013
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	184	$	6	$	445	$	–		$	2		$	637
Alternative investment funds		1,304		34		–		(1,327	)		–			11
Private equity funds		110,496		3,056		3,259		(4,612	)		634			112,833
Total Level 3 Assets	$	111,984	$	3,096	$	3,704	$	(5,939	)	$	636		$	113,481
	Six Months Ended June 30, 2013
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	190	$	6	$	445	$	–		$	(4	)	$	637
Alternative investment funds		3,457		128		–		(3,574	)		–			11
Equity funds		10		–		–		(10	)		–			–
Private equity funds		112,444		3,738		3,259		(5,868	)		(740	)		112,833
Total Level 3 Assets	$	116,101	$	3,872	$	3,704	$	(9,452	)	$	(744	)	$	113,481

	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	$	217	$	5		$	–	$	(30	)	$	(11	)	$	181
Alternative investment funds		5,915		(38	)		–		(1,251	)		–			4,626
Private equity funds		116,563		4,786			56		(4,873	)		(2,541	)		113,991
Total Level 3 Assets	$	122,695	$	4,753		$	56	$	(6,154	)	$	(2,552	)	$	118,798

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

	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	$	211	$	5	$	–	$	(30	)	$	(5	)	$	181
Alternative investment funds		10,171		89		10		(5,644	)		–			4,626
Private equity funds		122,718		12,350		2,752		(22,745	)		(1,084	)		113,991
Total Level 3 Assets	$	133,100	$	12,444	$	2,762	$	(28,419	)	$	(1,089	)	$	118,798

(a) Earnings for the three month and six month periods ended June 30, 2013 and the three month and six month periods ended June 30, 2012 include net unrealized gains of $2,657, $3,327, $3,483 and $9,563, respectively.

Fair Value of Certain Investments Based on NAV—The Company’s Level 2 and Level 3 investments at June 30, 2013 and December 31, 2012 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, 2013
					% of Fair Value Not Redeemable	Estimated Liquidation Period of Investments Not Redeemable			Investments Redeemable
	Fair Value		Unfunded Commitments			% Next 5 Years	% 5-10 Years	% Thereafter	Redemption Frequency	Redemption Notice Period
Alternative investment funds	$	45,739	$	–	NA	NA	NA	NA	(a)		<30-120 days
Debt funds		4		–	NA	NA	NA	NA	(b)		30 days
Equity funds		6,664		–	NA	NA	NA	NA	(c)		<30-90 days
Private equity funds		112,833		27,649	100%	10%	38%	52%	NA		NA
Total	$	165,240	$	27,649

Redemption frequency as follows:

(a) daily (1%), weekly (11%), monthly (54%) and quarterly (34%)

(b) daily (100%)

(c) monthly (100%)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

	December 31, 2012
					% of Fair Value Not Redeemable	Estimated Liquidation Period of Investments Not Redeemable			Investments Redeemable
	Fair Value		Unfunded Commitments			% Next 5 Years	% 5-10 Years	% Thereafter	Redemption Frequency	Redemption Notice Period
Alternative investment funds	$	57,890	$	–	NA	NA	NA	NA	(a)	<30-120 days
Debt funds		4		–	NA	NA	NA	NA	(b)	30 days
Equity funds		9,079		–	2%	–%	–%	2%	(c)	30-120 days
Private equity funds		112,444		31,482	100%	13%	39%	48%	NA	NA
Total	$	179,417	$	31,482

Redemption frequency as follows:

(a) daily (10%), weekly (9%), monthly (38%) and quarterly (43%)

(b) daily (100%)

(c) daily (37%) and monthly (61%)

See Note 4 of Notes to Condensed Consolidated Financial Statements for discussion of significant investment strategies for investments valued based on NAV.

Investment Capital Funding Commitments—At June 30, 2013, the maximum unfunded commitments by the Company for capital contributions to investment funds related to (i) Corporate Partners II Limited (“CP II”), amounting to $1,940 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 $18,500, 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) COF2, amounting to $7,209, 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

18

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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 and other similar deferred compensation arrangements, which are reported in “revenue-other” in the consolidated statements of operations.

The tables below present the fair values of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair values of the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (see Note 12 of Notes to Condensed Consolidated Financial Statements) on the accompanying condensed consolidated statements of financial condition as of June 30, 2013 and December 31, 2012:

	June 30, 2013		December 31, 2012
Derivative Assets:
Forward foreign currency exchange rate contracts	$	626	$	893
Equity and fixed income swaps and other (a)		6,321		40
	$	6,947	$	933
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	1,289	$	322
Interest rate swaps		–		235
Equity and fixed income swaps (a)		–		4,342
Lazard Fund Interests and other similar deferred compensation arrangements		151,225		97,593
	$	152,514	$	102,492

(a) For equity and fixed income swaps, amounts represent the netting of gross derivative assets and liabilities of $6,332 and $11 as of June 30, 2013, respectively, and $0 and $4,342 as of December 31, 2012, respectively, for contracts with the same counterparty under legally enforceable master netting agreements. Such amounts are recorded “net” in “other assets”, with receivables for net cash collateral under such contracts of $4,574 and $15,304 as of June 30, 2013 and December 31, 2012, respectively.

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2013 and 2012, were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Forward foreign currency exchange rate contracts	$	(1,626	)	$	4,051	$	3,605		$	2,129
Lazard Fund Interests and other similar deferred compensation arrangements		3,477			2,856		(248	)		89
Equity and fixed income swaps and other		3,756			3,630		(352	)		(6,625	)
Total	$	5,607		$	10,537	$	3,005		$	(4,407	)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

7. PROPERTY

At June 30, 2013 and December 31, 2012, property consisted of the following:

	Estimated Depreciable Life in Years		June 30, 2013		December 31, 2012
Buildings		33	$	165,106	$	166,560
Leasehold improvements		3-20		156,915		143,408
Furniture and equipment		3-10		135,769		122,125
Construction in progress				16,646		18,801
Total				474,436		450,894
Less - accumulated depreciation and amortization				232,487		225,861
Property			$	241,949	$	225,033

8. GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at June 30, 2013 and December 31, 2012 are presented below:

	June 30, 2013		December 31, 2012
Goodwill	$	348,549	$	364,328
Other intangible assets (net of accumulated amortization)		26,658		28,494
	$	375,207	$	392,822

At June 30, 2013 and December 31, 2012, goodwill of $284,008 and $299,787, respectively, was attributable to the Company’s Financial Advisory segment and, at each such respective date, $64,541 of goodwill was attributable to the Company’s Asset Management segment.

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2013 and 2012 are as follows:

	Six Months Ended June 30,
	2013			2012
Balance, January 1	$	364,328		$	356,657
Business acquisition		1,440			4,272
Foreign currency translation adjustments		(17,219	)		64
Balance, June 30	$	348,549		$	360,993

20

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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, 2013 and December 31, 2012, by major intangible asset category, are as follows:

	June 30, 2013						December 31, 2012
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	30,740	$	10,726	$	20,014	$	30,740	$	10,678	$	20,062
Management fees, customer relationships and non-compete agreements		33,080		26,436		6,644		33,035		24,603		8,432
	$	63,820	$	37,162	$	26,658	$	63,775	$	35,281	$	28,494

Amortization expense of intangible assets for the three month and six month periods ended June 30, 2013 was $1,004 and $1,881, respectively, and for the three month and six month periods ended June 30, 2012 was $2,560 and $3,678, respectively. Estimated future amortization expense is as follows:

Year Ending December 31,	Amortization Expense (a)
2013 (July 1 through December 31)	$	6,761
2014		8,278
2015		6,438
2016		5,181
Total amortization expense	$	26,658

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

9. SENIOR DEBT

Senior debt was comprised of the following as of June 30, 2013 and December 31, 2012:

	Initial Principal Amount		Maturity Date		Annual Interest Rate			Outstanding As Of
								June 30, 2013		December 31, 2012
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		9/25/15		0.84	%		–		–
Total								$	1,076,850	$	1,076,850

On September 25, 2012, Lazard Group entered into a $150,000, three-year senior revolving credit facility with a group of lenders (the “Credit Facility”), which expires in September 2015. The Credit Facility replaced a similar revolving credit facility which was terminated as a condition to effectiveness of the Credit Facility. 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, 2013, the annual interest rate for a loan accruing interest (based on the Federal Funds overnight rate), including the applicable margin, was 0.84%. At June 30, 2013 and December 31, 2012, 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 contains customary terms and conditions, including certain financial covenants. In addition, the Credit Facility, the indenture and the supplemental indentures relating to Lazard Group’s senior notes, contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. As of June 30, 2013, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured.

As of June 30, 2013, the Company had approximately $262,000 in unused lines of credit available to it, including the Credit Facility, and unused lines of credit available to LFB of approximately $52,000 (at June 30, 2013 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, 2013 and December 31, 2012 is carried at historical amounts. At those dates, the fair value of such senior debt outstanding was approximately $1,180,000 and $1,207,000, respectively, and exceeded the aggregate carrying value by approximately $103,000 and $130,000, respectively. The fair value of the Company’s senior debt was based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

10. 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, 2013, LFB had $4,679 of such indemnifications and held $3,837 of collateral/counter-guarantees to secure these commitments. The Company believes the likelihood of loss with respect to these indemnities is remote. Accordingly, no liability is recorded in the condensed consolidated statement of financial condition.

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

The aggregate fair value of the consideration recognized by the Company at the acquisition date was $61,624. Such consideration consisted of (i) a one-time cash payment, (ii) 1,142,857 shares of Class A common stock (the “Initial Shares”) and (iii) up to 1,142,857 additional shares of Class A common stock (the “Earnout Shares”) that are subject to earnout criteria and payable over time. 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. As of June 30, 2013 and December 31, 2012, 1,371,992 and 1,209,154 shares, respectively, have been earned because applicable performance thresholds have been satisfied. Such shares are no longer subject to any contingencies. As of December 31, 2012, 686,004 of such shares have been settled, and no additional shares have been settled as of June 30, 2013.

22

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

Consideration Relating To Other Business Acquisitions—For a business acquired in 2013, the Company is obligated to issue a maximum of 107,617 shares of Class A common stock if certain performance thresholds are achieved.

For a business acquired in 2012, at December 31, 2012, 170,988 shares of Class A common stock (including dividend equivalent shares) were issuable on a non-contingent basis. Such shares were delivered in the first quarter of 2013. The Company is obligated to issue a maximum of 202,650 additional shares of Class A common stock if certain performance thresholds are achieved.

For a business acquired in 2011, the Company is obligated to pay earnout consideration if certain performance thresholds are achieved. The maximum potential earnout consideration payable by the Company cannot exceed $7,000. Through June 30, 2013, no cash payments relating to the earnout consideration were required.

Other Commitments—In the normal course of business, LFB enters into commitments to extend credit, predominately at variable interest rates. These commitments have varying expiration dates, 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. At June 30, 2013, these commitments were not material.

See Notes 5 and 13 of Notes to Condensed Consolidated Financial Statements for information regarding commitments relating to investment capital funding commitments 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, 2013, LFB had no such underwriting commitments.

In the opinion of management, the fulfillment of the commitments described herein will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

Legal—The Company is involved from time to time in judicial, regulatory and arbitration proceedings and inquiries concerning matters arising in connection with the conduct of our businesses, including proceedings initiated by former employees alleging wrongful termination. The Company reviews such matters on a case-by-case basis and establishes any required accrual if a loss is probable and the amount of such loss can be reasonably estimated. The Company experiences significant variation in its revenue and earnings on a quarterly basis. Accordingly, the results of any pending matter or matters could be significant when compared to the Company’s earnings in any particular fiscal quarter. The Company believes, however, based on currently available information, that the results of any pending matters, in the aggregate, will not have a material effect on its business or financial condition.

11. 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

23

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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, 2013 and 2012, 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,
	2013		2012
LAZ-MD Holdings	$	387	$	2,416
Subsidiaries of Lazard Ltd		30,338		43,011
	$	30,725	$	45,427

Pursuant to Lazard Group’s Operating Agreement, Lazard Group allocates and distributes to its members a substantial portion of its distributable profits in installments, as soon as practicable after the end of each fiscal year. Such installment distributions usually begin in February.

Exchanges of Lazard Group Common Membership Interests—During the six month periods ended June 30, 2013 and 2012, Lazard Ltd issued 839,658 and 186,701 shares of Class A common stock, respectively, in connection with the exchanges 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, April 2012 and October 2012 the Board of Directors of Lazard Ltd authorized, on a cumulative basis, the repurchase of up to $250,000, $125,000, $125,000 and $200,000, respectively, in aggregate cost of Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013, December 31, 2013 and December 31, 2014, 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, 2013, the Company made purchases of 1,434,657 Class A common shares, at an aggregate cost of $50,447 (no Lazard Group common membership interests were purchased during such six month period).

As of June 30, 2013, $103,619 of the current share repurchase amount authorized as of such date remained available under the share repurchase program, all of which expires December 31, 2014. In addition, under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and delivery of restricted Class A common stock, shares of Class A common stock may be withheld by the Company to cover its minimum statutory tax withholding requirements (see Note 12 of Notes to Condensed Consolidated Financial Statements).

24

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

Preferred Stock—Lazard Ltd has 15,000,000 authorized shares of preferred stock, par value $0.01 per share, inclusive of its Series A and Series B preferred stock. Series A and Series B preferred shares were issued in connection with certain prior year business acquisitions, are each non-participating securities convertible into Class A common stock and have no voting or dividend rights. As of both June 30, 2013 and December 31, 2012, 7,921 shares of Series A preferred stock were outstanding and no shares of Series B preferred stock were outstanding. At June 30, 2013, no shares of Series A preferred stock were convertible into shares of Class A common stock on a contingent or a non-contingent basis.

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The table below reflects the components of AOCI at June 30, 2013 and activity during the six month period then ended:

	Currency Translation Adjustments			Interest Rate Hedge			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2013	$	19,405		($	2,502	)	($	128,536	)	($	111,633	)	($	1,092	)	($	110,541	)
Activity January 1 to June 30, 2013:
Other comprehensive gain (loss) before reclassifications		(30,767	)		–			(2,719	)		(33,486	)		403			(33,889	)
Adjustments for items reclassified to earnings, net of tax		–			527			2,430			2,957			16			2,941
Net other comprehensive income (loss)		(30,767	)		527			(289	)		(30,529	)		419			(30,948	)
Balance, June 30, 2013	$	(11,362	)	$	(1,975	)	$	(128,825	)	$	(142,162	)	$	(673	)	$	(141,489	)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and six month periods ended June 30, 2013:

	Three Months Ended June 30,			Six Months Ended June 30,
	2013			2013
Amortization of interest rate hedge	$	263	(a)	$	527	(a)
Amortization expense relating to employee benefit plans		1,612	(b)		3,232	(b)
Less - tax expense		400			802
Net of tax		1,212			2,430
Total reclassifications, net of tax	$	1,475		$	2,957

(a) Included in “interest expense” on the condensed consolidated statements of operations.

(b) Included in the computation of net periodic benefit cost (see Note 13 of Notes to Condensed Consolidated Financial Statements). Such amount is included in “compensation and benefits” expense on the condensed consolidated statement of operations.

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.

25

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, 2013 and 2012:

	Lazard Ltd					LAZ-MD Holdings						Total Lazard Group Common Membership Interests
	Common Membership Interests		% Ownership			Common Membership Interests			% Ownership
Balance, January 1, 2012		123,009,311		94.8	%		6,756,779			5.2	%		129,766,090
Activity January 1 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
Balance, January 1, 2013		128,216,423		98.8	%		1,549,667			1.2	%		129,766,090
Activity January 1 to June 30, 2013:
Common membership interest activity in connection with:
Exchanges for Class A common stock		839,658					(839,658	)					–
Balance, June 30, 2013		129,056,081		99.5	%		710,009			0.5	%		129,766,090

The change in Lazard Ltd’s ownership in Lazard Group in the six month periods ended June 30, 2013 and 2012 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, 2013 and 2012 and noncontrolling interests as of June 30, 2013 and December 31, 2012 in the Company’s condensed consolidated financial statements:

	Net Income (Loss) Attributable To Noncontrolling Interests
	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Edgewater	$	287		$	1,698		$	2,653		$	3,872
LAZ-MD Holdings		305			1,694			497			3,019
Other		(24	)		(51	)		(293	)		(46	)
Total	$	568		$	3,341		$	2,857		$	6,845

	Noncontrolling Interests As Of
	June 30, 2013		December 31, 2012
Edgewater	$	71,020	$	75,262
LAZ-MD Holdings		2,248		5,405
Other		859		1,217
Total	$	74,127	$	81,884

26

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

Dividend Declared, July 2013—On July 24, 2013, the Board of Directors of Lazard Ltd declared a quarterly dividend of $0.25 per share on its Class A common stock, payable on August 23, 2013, to stockholders of record on August 6, 2013.

12. 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, 2013 and 2012, 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, RSUs 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 at 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 reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, PRSUs and restricted stock awards) and “professional services” expense (with respect to deferred stock units (“DSUs”)) within the Company’s accompanying condensed consolidated statements of operations:

	Three Months Ended June  30,				Six Months Ended June 30,
	2013		2012		2013		2012
Share-based incentive awards:
RSUs (a)	$	52,147	$	63,428	$	117,089	$	145,319
PRSUs		1,995		–		2,433		–
Restricted stock (b)		1,824		1,704		7,085		5,879
DSUs		1,403		1,218		1,474		1,288
Total	$	57,369	$	66,350	$	128,081	$	152,486

(a) Includes, during the three month and six month periods ended June 30, 2013, $4,644 and $9,099, respectively, relating to the Cost Saving Initiatives (see Note 14 of Notes to Condensed Consolidated Financial Statements).

(b) Includes, during the three month and six month periods ended June 30, 2013, $14 and $247, respectively, relating to the Cost Saving Initiatives.

27

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

The ultimate amount of compensation and benefits expense relating to share-based awards is dependent upon the actual number of shares of Class A common stock that vest. The Company periodically assesses the forfeiture rates used for such estimates. A change in estimated forfeiture rates results in a cumulative adjustment to previously recorded compensation and benefits expense and also would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described below.

For purposes of calculating diluted net income per share, RSU and restricted stock awards are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. PRSUs are included in the diluted weighted average shares of Class A common stock outstanding to the extent the performance conditions are met at the end of the reporting period, also using the “treasury stock” method.

The Company’s incentive plans are described below.

RSUs and DSUs

RSUs generally require future service as a condition for the delivery of the underlying shares of Class A common stock (unless the recipient is then eligible for retirement under the Company’s retirement policy) and convert into Class A common stock on a one-for-one basis after the stipulated vesting periods. The grant date fair value of the RSUs, net of an estimated forfeiture rate, is amortized over the vesting periods or requisite service periods (generally one-third after two years, and the remaining two-thirds after the third year), and is adjusted for actual forfeitures over such periods.

RSUs generally include a dividend participation right that provides that during vesting periods each RSU is attributed additional RSUs (or fractions thereof) equivalent to any ordinary quarterly dividends paid on Class A common stock during such period. During the six month periods ended June 30, 2013 and 2012, 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,
	2013			2012
Number of RSUs issued			131,669			310,756
Charges to retained earnings, net of estimated forfeitures		$	4,062		$	7,277

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 39,315 and 49,735 DSUs granted during the six month periods ended June 30, 2013 and 2012, respectively. Their remaining compensation is payable in cash, which they may elect to receive in the form of additional DSUs under the Directors’ Fee Deferral Unit Plan described below. DSUs are convertible into 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, 2013 and 2012.

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 in lieu of some or all of their cash fees. The number of DSUs that shall be granted to a Non-Executive Director pursuant to this election will equal the

28

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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, 2013 and 2012, 3,916 and 5,489 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, 2013 and 2012:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2013		21,481,131		$	33.92		204,496	$	31.47
Granted (including 131,669 RSUs relating to dividend participation)		4,689,312		$	36.95		43,231	$	34.09
Forfeited		(223,346	)	$	34.64		–		–
Vested		(8,589,999	)	$	34.99		–		–
Balance, June 30, 2013		17,357,098		$	34.20		247,727	$	31.93
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

In connection with RSUs which vested during the six month periods ended June 30, 2013 and 2012, the Company satisfied its minimum statutory tax withholding requirements in lieu of issuing 3,309,900 and 967,828 shares of Class A common stock in the respective six month periods. Accordingly, 5,280,099 and 2,664,104 shares of Class A common stock held by the Company were delivered during the six month periods ended June 30, 2013 and 2012, respectively.

During the fourth quarter of 2012, 958,213 RSUs were modified through forward purchase agreements into liability awards. Such liability awards were settled on March 1, 2013 for $28,612. During the six month period ended June 30, 2013, compensation expense of $1,690 was recorded for such liability awards.

As of June 30, 2013, unrecognized RSU compensation expense, adjusted for estimated forfeitures, was approximately $236,000, with such unrecognized compensation expense expected to be recognized over a weighted average period of approximately 1.5 years subsequent to June 30, 2013.

29

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, 2013 and 2012:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2013		1,972,609		$	34.85
Granted		368,736		$	36.74
Forfeited		(35,183	)	$	33.29
Vested		(1,727,121	)	$	36.00
Balance, June 30, 2013		579,041		$	32.73
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

In connection with shares of restricted Class A common stock that vested during the six month periods ended June 30, 2013 and 2012, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 17,915 and 28,129 shares of Class A common stock during the respective six month periods. Accordingly, 1,709,206 and 103,614 shares of Class A common stock held by the Company were delivered during the six month periods ended June 30, 2013 and 2012, respectively.

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, 2013, unrecognized restricted stock expense was approximately $11,000, with such expense to be recognized over a weighted average period of approximately 1.7 years subsequent to June 30, 2013.

PRSUs

During the six month period ended June 30, 2013, the Company granted 448,128 PRSUs. The PRSUs are subject to both performance-based and service-based vesting conditions. The number of shares of Class A common stock that a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance metrics that relate to the Company’s performance over the three-year period beginning on January 1, 2012 and ending on December 31, 2014. The target number of shares of Class A common stock subject to each PRSU is one; however, based on the achievement of the performance criteria, the number of shares of Class A common stock that may be received in connection with each PRSU can range from zero to three times the target number. The PRSUs granted in 2013 will vest 33% in March 2015 and 67% in March 2016, provided the applicable service and performance conditions are satisfied. In addition, the performance metrics applicable to each PRSU will be evaluated on an annual basis at the end of each fiscal year during the performance period and, if the Company has achieved a threshold level of performance with respect to the fiscal year, 25% of the target number of shares of Class A common stock subject to each PRSU will no longer be at risk of forfeiture based on the achievement of performance criteria. PRSUs generally include dividend participation rights.

30

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of Class A common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value of $36.11 per share. As of June 30, 2013, the total estimated unrecognized compensation expense for PRSUs granted in 2013 was approximately $14,000, and the Company expects to amortize such expense over a weighted-average period of approximately 1.9 years.

Lazard Fund Interests and Other Similar Deferred Compensation Arrangements

Commencing in February 2011, the Company granted Lazard Fund Interests to eligible employees. 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 (which are generally similar to the comparable periods for RSUs), 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.

The following is a summary of activity relating to Lazard Fund Interests and other similar deferred compensation arrangements during the six month periods ended June 30, 2013 and 2012:

	Prepaid Compensation Asset			Compensation   Liability
Balance, January 1, 2013	$	47,445		$	97,593
Granted		72,217			72,217
Settled		–			(19,107	)
Forfeited		(685	)		(859	)
Amortization		(30,226	)		–
Change in fair value related to:
Increase in fair value of underlying investments		–			248
Adjustment for estimated forfeitures		–			2,049
Other		(396	)		(916	)
Balance, June 30, 2013	$	88,355		$	151,225

	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		(16,985	)		–
Decrease in fair value of underlying investments		–			(89	)
Other		979			833
Balance, June 30, 2012	$	65,399		$	85,641

31

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 1.9 years subsequent to June 30, 2013.

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 month and six month periods ended June 30, 2013 and 2012:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Compensation expense:
Amortization, net of forfeitures (a)	$	19,052		$	10,800		$	32,101	$	16,985
Change in fair value of underlying investments		(3,477	)		(2,856	)		248		(89	)
Total	$	15,575		$	7,944		$	32,349	$	16,896

(a) Includes, during the three month and six month periods ended June 30, 2013, $1,748 and $2,665, respectively, relating to the Cost Saving Initiatives.

13. EMPLOYEE BENEFIT PLANS

The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”) and, in the U.S., a partially funded contributory post-retirement plan covering qualifying U.S. employees (the “medical plan” and together with the pension plans, the “post-retirement plans”). The Company also offers defined contribution plans. The post-retirement plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense on the 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 did not make a contribution to the U.S. pension plans during the six month period ended June 30, 2013.

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) agreed to 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, inclusive. 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 amounts in the account security arrangement at June 30, 2013 and December 31, 2012 of approximately $15,600 and $16,500, respectively, have

32

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

been recorded in “cash deposited with clearing organizations and other segregated cash” on the accompanying condensed consolidated statements of financial condition. Income on the account security arrangement accretes to the Company and is recorded in interest income.

During the six month period ended June 30, 2013, the Company contributed 1 million British pounds ($1,543 at June 30, 2013 exchange rates) to these U.K. pension plans, and no contributions were required to be made to other non-U.S. pension plans.

The following table summarizes the components of net periodic benefit cost related to the Company’s post-retirement plans for the three month and six month periods ended June 30, 2013 and 2012:

	Pension Plans						Medical Plan
	Three Months Ended June 30,
	2013			2012			2013		2012
Components of Net Benefit Cost (Credit):
Service cost	$	309		$	166		$	17	$	19
Interest cost		6,689			6,885			44		52
Expected return on plan assets		(6,585	)		(6,622	)		–		–
Amortization of:
Prior service cost		700			687			–		–
Net actuarial loss		912			420			–		–
Settlement loss (a)		–			886			–		–
Net benefit cost	$	2,025		$	2,422		$	61	$	71

	Pension Plans						Medical Plan
	Six Months Ended June 30,
	2013			2012			2013		2012
Components of Net Benefit Cost (Credit):
Service cost	$	623		$	338		$	27	$	30
Interest cost		13,442			13,787			91		105
Expected return on plan assets		(13,382	)		(13,294	)		–		–
Amortization of:
Prior service cost		1,406			1,388			–		–
Net actuarial loss		1,826			831			–		–
Settlement loss (a)		–			886			–		–
Net benefit cost	$	3,915		$	3,936		$	118	$	135

(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.

33

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

14. COST SAVING INITIATIVES

In October 2012, the Company announced cost saving initiatives (the “Cost Saving Initiatives”) relating to the Company’s operations. These initiatives include streamlining our corporate structure and consolidating support functions; realigning our investments into areas with potential for the greatest long-term return; the settlement of certain contractual obligations; occupancy cost reduction; and creating greater flexibility to retain and attract the best people and invest in new growth areas.

In connection with the Cost Saving Initiatives, the Company incurred pre-tax implementation expense, by segment, as reflected in the tables below:

	Financial Advisory		Asset Management		Corporate		Total
Three Month Period Ended June 30, 2013:
Compensation and benefits	$	25,352	$	–	$	1,376	$	26,728
Other		412		–		11,241		11,653
Total	$	25,764	$	–	$	12,617	$	38,381

	Financial Advisory		Asset Management			Corporate		Total
Six Month Period Ended June 30, 2013:
Compensation and benefits	$	45,746	$	236		$	5,417	$	51,399
Other		2,033		(1	)		11,272		13,304
Total	$	47,779	$	235		$	16,689	$	64,703

	Financial Advisory		Asset Management		Corporate		Total
Cumulative Through June 30, 2013:
Compensation and benefits	$	121,879	$	12,292	$	17,215	$	151,386
Other		3,432		732		11,729		15,893
Total	$	125,311	$	13,024	$	28,944	$	167,279

Expenses associated with the implementation of the Cost Saving Initiatives were completed during the second quarter of 2013.

Activity related to the obligations pursuant to the Cost Saving Initiatives during the six month period ended June 30, 2013 was as follows:

	Accrued Compensation and Benefits			Other Liabilities			Total
Balance, January 1, 2013	$	46,128		$	1,714		$	47,842
New charges		51,399			13,304			64,703
Less:
Non-cash charges		(12,007	)		(3,022	)		(15,029	)
Settlements		(40,031	)		(1,162	)		(41,193	)
Balance, June 30, 2013	$	45,489		$	10,834		$	56,323

34

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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 $9,017 and $12,965 for the three month and six month periods ended June 30, 2013, respectively, and $10,371 and $19,138 for the three month and six month periods ended June 30, 2012, respectively, representing effective tax rates of 22.0%, 20.7%, 23.3% and 23.2%, 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) taxes payable to foreign jurisdictions that are not offset against U.S. income taxes, (iii) foreign source income not subject to U.S. income taxes (including interest on intercompany financings), (iv) Lazard Group’s income from U.S. operations attributable to noncontrolling interests, and (v) 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. Based on the financial results for the applicable annual periods, there is no provision for such payments in the six month periods ended June 30, 2013 and 2012. 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.

35

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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, 2013 and 2012 are computed as described below.

Basic Net Income Per Share

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

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

Diluted Net Income Per Share

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

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

36

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

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, 2013 and 2012 are presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net income attributable to Lazard Ltd	$	31,353		$30,821	$	46,713		$56,373
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		–		2		–		2
Net income attributable to Lazard Ltd - basic		31,353		30,823		46,713		56,375
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 and exchangeable interests, net of tax		289		1,686		471		2,876
Net income attributable to Lazard Ltd - diluted		$31,642		$32,509		$47,184		$59,251
Weighted average number of shares of Class A common stock outstanding		121,028,696		117,478,380		118,975,340		118,079,120
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		731,286		756,940		758,753		653,311
Weighted average number of shares of Class A common stock outstanding - basic		121,759,982		118,235,320		119,734,093		118,732,431
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation and exchangeable interests		10,704,314		16,401,615		12,905,835		16,883,126
Weighted average number of shares of Class A common stock outstanding - diluted		132,464,296		134,636,935		132,639,928		135,615,557
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.26		$0.26		$0.39		$0.47
Diluted		$0.24		$0.24		$0.36		$0.44

37

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, 2013		December 31, 2012
Receivables
LFCM Holdings	$	14,232	$	20,529
Other		1,010		3,272
Total	$	15,242	$	23,801
Payables
LFCM Holdings	$	4,749	$	2,943
Other		10		705
Total	$	4,759	$	3,648

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, 2013, amounts recorded by Lazard Group relating to the administrative services agreement amounted to $300 and $932, respectively, and net referral fees for underwriting, private placement, M&A and restructuring transactions under the business alliance agreement amounted to $(970) and $(470), respectively. 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. 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, 2013 and December 31, 2012 include $8,568 and $14,299, 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 $5,664 and $6,230, respectively, related to referral fees for underwriting and private placement transactions. Payables to

38

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

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

LFCM Holdings and its subsidiaries at June 30, 2013 and December 31, 2012 include $4,749 and $2,943, respectively, primarily relating to referral fees for Financial Advisory transactions.

Other

Other receivables and payables at June 30, 2013 and December 31, 2012 primarily relate to referral fees for 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, at December 31, 2012, a related party loan.

LAZ-MD Holdings

Lazard Group provides certain administrative and support services to LAZ-MD Holdings through an administrative services agreement, 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, 2013, such charges amounted to $250 and $500, respectively. For the three month and six month periods ended June 30, 2012, 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 (6  ²/₃%) of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $100, whichever is greater. At June 30, 2013, LFNY’s regulatory net capital was $128,583, which exceeded the minimum requirement by $124,897.

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 Conduct Authority, which replaced the Financial Services Authority as the U.K. Subsidiaries’ regulator effective April 1, 2013. At June 30, 2013, the aggregate regulatory net capital of the U.K. Subsidiaries was $74,781, which exceeded the minimum requirement by $54,858.

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, 2013, the consolidated regulatory net capital of CFLF was $185,983, which exceeded the minimum requirement set for regulatory capital levels by $154,183.

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, 2013, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $103,267, which exceeded the minimum required capital by $76,657.

At June 30, 2013, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

39

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, which we continue to examine, LFB, as a European credit institution, is required to be supervised on a consolidated basis by another regulatory body, either in the U.S., by the Board of Governors of the Federal Reserve, or in the European Union. The Dodd-Frank Act and the rules and regulations that may be adopted thereunder (including regulations that have not yet been proposed) could affect us in other ways. We continue to monitor the possible effect of the implementation of alternatives available to us.

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, 2013 and 2012 was prepared using the following methodology:

• Revenue and expenses directly associated with each segment are included in determining operating income.

• Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

• Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors.

The Company allocates investment gains and losses, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

Each segment’s operating expenses include (i) compensation and benefits expenses incurred directly in support of the businesses and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, legal, facilities management and senior management activities.

40

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,
		2013(a)			2012			2013(a)			2012
Financial Advisory	Net Revenue	$	263,307		$	242,624		$	431,769		$	519,820
	Operating Expenses		239,766			231,200			456,674			481,097
	Operating Income (Loss)	$	23,541		$	11,424		$	(24,905	)	$	38,723
Asset Management	Net Revenue	$	245,499		$	211,053		$	489,524		$	425,580
	Operating Expenses		187,554			156,619			342,631			317,120
	Operating Income	$	57,945		$	54,434		$	146,893		$	108,460
Corporate	Net Revenue (Expense)	$	(18,401	)	$	(16,767	)	$	(28,985	)	$	(22,451	)
	Operating Expenses		22,147			4,558			30,468			42,376
	Operating Income (Loss)	$	(40,548	)	$	(21,325	)	$	(59,453	)	$	(64,827	)
Total	Net Revenue	$	490,405		$	436,910		$	892,308		$	922,949
	Operating Expenses		449,467			392,377			829,773			840,593
	Operating Income	$	40,938		$	44,533		$	62,535		$	82,356

(a) See Note 14 of Notes to Condensed Consolidated Financial Statements for information regarding the Cost Saving Initiatives, and the impact on each of the Company’s business segments during the three month and six month periods ended June 30, 2013.

	As Of
	June 30, 2013		December 31, 2012
Total Assets
Financial Advisory	$	722,702	$	793,007
Asset Management		539,662		566,677
Corporate		1,658,865		1,627,209
Total	$	2,921,229	$	2,986,893

41

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, 2012 (the “Form 10-K”). All references to “2013”, “2012”, “second quarter”, “first half” or “the period” refer to, as the context requires, the three month and six month periods ended June 30, 2013 and June 30, 2012.

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,” “target”, “goal” 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, business plans and initiatives 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,

• a decline in overall mergers and acquisitions (“M&A”) activity, our share of the M&A market or our assets under management (“AUM”),

• 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 and attract employees at current compensation levels.

These risks and uncertainties are not exhaustive. Other sections of the Form 10-K describe additional factors that could adversely affect 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,

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

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

• 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, the 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 AUM in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”). 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 one of the world’s preeminent financial advisory and asset management firms. 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 40 cities in key business and financial centers across 26 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.

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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.

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 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 global investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.

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

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, and asset-liability management.

Our consolidated net revenue was derived from the following segments:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Financial Advisory		54	%		56	%		48	%		56	%
Asset Management		50			48			55			46
Corporate		(4	)		(4	)		(3	)		(2	)
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 (see Note 10 of Notes to Condensed Consolidated Financial Statements), (ii) Lazard Australia Corporate Opportunities Fund 2 (“COF2”), a Lazard-managed Australian private equity fund targeting Australasian mid-market investments, (iii) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small-to mid-cap European companies and (iv) a private equity fund targeting significant noncontrolling-stake investments in established private companies. 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

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business segments. As our Financial Advisory revenues are primarily dependent on the successful completion of merger, acquisition, restructuring, capital raising or similar transactions, and our Asset 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.

Equity market indices at June 30, 2013 increased in the U.S. when compared to such indices at June 30, 2012, December 31, 2012 and March 31, 2013. Outside the U.S., equity market indices at June 30, 2013 generally increased as compared to June 30, 2012, but decreased when compared to December 31, 2012 and March 31, 2013. On an industry-wide basis, during the first half of 2013, the value of completed M&A transactions increased while the number of completed transactions decreased as compared to the corresponding prior year period. Global restructuring activity, as measured by the value and number of corporate defaults, increased in the first half of 2013 as compared to the same period last year, but remains low relative to historical levels.

In mid-2013, interest rates remain low relative to historical levels and corporate cash balances remain high. Global macroeconomic conditions appear to be improving but remain uncertain, especially with respect to Europe. The breadth of our businesses has mitigated the impact of the European financial crisis. Although completed European M&A activity declined in the first half of 2013 and contributed to the revenue decrease in our Financial Advisory business, we believe other advisory opportunities, including opportunities for our Sovereign Advisory and Capital Structure businesses, may offset the slowdown. In our Asset Management business, most of LAM’s European clients are invested with LAM primarily outside of Europe. Many of those who are invested in Europe are invested in European fixed income, which has not had a significant impact on our Asset Management business. Nonetheless, the business situation in Europe remains challenging. Despite volatility in emerging markets during the second quarter of 2013, we have experienced positive flows in our Emerging Markets debt and equity platforms.

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, and in October 2012 we announced a number of cost saving initiatives (the “cost saving initiatives”) relating to our operations. See “Cost Saving Initiatives” below and Note 14 of Notes to Condensed Consolidated Financial Statements.

Our outlook with respect to our Financial Advisory and Asset Management businesses is described below.

• Financial Advisory – In the near- to mid-term, we expect that the U.S. macroeconomic environment will likely 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. We continue to develop our range of advisory capabilities, in particular in Europe, with our Sovereign Advisory, Restructuring and Capital Structure businesses. 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. We recently integrated our Brazilian operations based in São Paulo. We also established the Lazard Africa initiative, to leverage our sovereign and corporate expertise in this rapidly growing region, for our clients in both developed and developing countries.

• Asset Management – Generally, we have seen increased investor demand across regions and investment platforms. 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

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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 recently extended the global footprint of our Asset Management business by opening new offices in Zurich and Singapore. 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 Markets Debt, Core Emerging Markets Equity, Emerging Markets Small Cap Equity, Real Estate, Managed Volatility Strategies and Asian Equities.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge continuously, 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, including the generation of stable revenue and earnings growth and stockholder returns, the prudent management of our costs and expenses, the efficient use of our assets and the return of capital to our stockholders.

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

Financial Advisory

As reflected in the following table, which sets forth global industry statistics for the second quarter and first half of 2013 and 2012, the value and number of completed and announced M&A transactions in the 2013 periods generally decreased compared to the corresponding periods in 2012.

	Three Months Ended June 30,							Six Months Ended June 30,
	2013		2012		% Incr / (Decr)			2013		2012		% Incr / (Decr)
	($ in billions)
Completed M&A Transactions:
Value	$	501	$	567		(12	)%	$	1,016	$	970		5	%
Number		5,924		7,380		(20	)%		12,640		15,030		(16	)%
Announced M&A Transactions:
Value	$	496	$	640		(23	)%	$	983	$	1,114		(12	)%
Number		8,180		9,659		(15	)%		17,015		19,202		(11	)%

Source: Thomson Reuters as of July 8, 2013.

Global restructuring activity during the first half of 2013, as measured by the value of debt defaults, increased from the corresponding period in 2012, with the number of issuers defaulting increasing to 40 in the first half of 2013, according to Moody’s Investors Service, Inc., as compared to 33 in the corresponding period of 2012.

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Asset Management

A comparison of major equity market indices at June 30, 2013, against such indices at March 31, 2013, December 31, 2012 and June 30, 2012, is shown in the table below.

	Percentage Changes June 30, 2013 vs.
	March 31, 2013			December 31, 2012			June 30, 2012
MSCI World Index		–	%		7	%		16	%
Euro Stoxx		(1	)%		(1	)%		15	%
MSCI Emerging Market		(9	)%		(11	)%		–	%
S&P 500		2	%		13	%		18	%

The fees that we receive for providing investment management and advisory services are primarily driven by the level of AUM and the nature of the AUM product mix. Accordingly, market movements, foreign currency volatility and changes in our AUM product mix will impact the level of revenues we receive from our Asset Management business when comparing periodic results. 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 correspond to the changes in global equity market indices. Our AUM at June 30, 2013 decreased 2% versus AUM at December 31, 2012 primarily due to net outflows, and our average AUM for the first half of 2013 increased 14% as compared to our average AUM for the corresponding period of 2012.

Cost Saving Initiatives

In October 2012, we announced cost saving initiatives which, at that time, were expected to result in approximately $125 million in annual savings from our compensation and non-compensation cost base. We currently expect total annual savings related to the cost saving initiatives to be approximately $160 million, which will be partially offset by investment in our business.

Approximately $120 million of the expected annual savings relate to compensation expense associated with our headcount, and approximately $40 million to non-compensation expense. We anticipate that more than two-thirds of these savings will be realized in 2013, with the full impact of all the savings reflected in our 2014 results.

Expenses associated with implementation of the cost saving initiatives were completed in the second quarter of 2013 and have been reflected in our financial results. These implementation expenses were approximately: $38 million in the second quarter of 2013; $26 million in the first quarter of 2013; and $103 million in the fourth quarter of 2012, for a total of approximately $167 million. Approximately 75% of the implementation expenses are expected to be paid in cash.

The cost saving initiatives are intended to improve our profitability with minimal impact on revenue growth. The initiatives include: streamlining our corporate structure and consolidating support functions; realigning our investments into areas with potential for the greatest long-term return; the settlement of certain contractual obligations; occupancy cost reduction; and creating greater flexibility to retain and attract the best people and invest in new growth areas.

See Note 14 of Notes to Condensed Consolidated Financial Statements.

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,

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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 clients. As noted above, the main driver of Asset Management net revenue is the level and product mix of AUM, which is generally influenced by the performance of the global equity markets and, to a lesser extent, fixed income markets, as well as 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, changes in product mix, or net client asset flows 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 investment funds, such as hedge funds and private equity funds, 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). The incentive fees received at the end of the measurement period are not subject to reversal or payback. Incentive fees on hedge funds are often subject to loss carryforward provisions in which losses incurred by the hedge funds in any year are applied against certain gains realized by the hedge funds in future periods before any incentive fees can be earned.

For private equity funds, incentive fees may be earned in the form of a “carried interest” if profits arising from realized investments exceed a specified threshold. Typically, such carried interest is ultimately calculated on a whole-fund basis and, therefore, clawback of carried interests during the life of the fund can occur. As a result, 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, principal investments in equities and alternative investment

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funds and “equity method” investments, net hedging activities, as well as gains and losses on investments held in connection with Lazard Fund Interests and 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 2013 represented (3)% of Lazard’s net revenue, total assets in the Corporate segment represented 57% of Lazard’s consolidated total assets as of June 30, 2013, which are attributable to investments in government bonds and money market funds, fixed income funds, alternative investment funds and other securities, private equity investments, cash and assets associated with LFB.

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, 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 12 of Notes to Condensed Consolidated Financial Statements), (iii) a provision for discretionary or guaranteed cash bonuses and profit pools and (iv) when applicable, severance payments. Compensation expense in any given period is dependent on many factors, including general economic and market conditions, our actual and forecasted 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 reconciliations and calculations with respect to “adjusted compensation and benefits expense” and related ratios 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 2013, 2012 and 2011 related to the 2012, 2011 and 2010 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 the rate at which we award deferred compensation. Based on a similar

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level and mix of revenues from our business as in 2012 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 59.4% for the year ended December 31, 2012. While we have implemented initiatives, including the cost saving initiatives announced in October 2012 (see “Cost Saving Initiatives” above), that we believe will assist us in attaining a ratio within this range, there can be no guarantee that such a ratio will be attained 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; however, 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 attaining 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), amortization of intangible assets related to acquisitions and, in the 2012 and 2013 periods, the relevant portions of the expense relating to the first quarter 2012 staff reductions and the implementation of the cost saving initiatives. Amortization of intangible assets relates primarily to the acquisition of Edgewater.

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 foreign taxes from 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 consist of amounts related to Edgewater’s management vehicles that the Company is deemed to control but not own and the amount attributable to LAZ-MD Holdings’ ownership interest in the net income of Lazard Group. See Note 11 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,
	2013			2012			2013			2012
	($ in thousands)
Net Revenue	$	490,405		$	436,910		$	892,308		$	922,949
Operating Expenses:
Compensation and benefits		331,131			283,392			608,870			621,709
Non-compensation		117,332			106,425			219,022			215,206
Amortization of intangible assets related to acquisitions		1,004			2,560			1,881			3,678
Total operating expenses		449,467			392,377			829,773			840,593
Operating Income		40,938			44,533			62,535			82,356
Provision for income taxes		9,017			10,371			12,965			19,138
Net Income		31,921			34,162			49,570			63,218
Less – Net Income Attributable to Noncontrolling Interests		568			3,341			2,857			6,845
Net Income Attributable to Lazard Ltd	$	31,353		$	30,821		$	46,713		$	56,373
Operating Income, As A % Of Net Revenue		8.3	%		10.2	%		7.0	%		8.9	%

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 are 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,
	2013			2012			2013			2012
	($ in thousands)
Operating Revenue
Net revenue	$	490,405		$	436,910		$	892,308		$	922,949
Add (deduct):
Other interest expense (a)		19,937			19,952			39,785			39,868
Revenue related to noncontrolling interests (b)		(2,458	)		(4,509	)		(6,780	)		(8,948	)
(Gains) losses on investments pertaining to Lazard Fund Interests (c)		3,477			2,856			(248	)		89
Operating revenue	$	511,361		$	455,209		$	925,065		$	953,958

(a) Interest expense (excluding interest expense incurred by LFB) is added back in determining operating revenue because such expense is not considered to be a cost directly related to the revenue of our business.

(b) Revenue related to the consolidation of noncontrolling interests is excluded from operating revenue 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 benefit expense, are excluded.

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	Three Months Ended  June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	($ in thousands)
Adjusted Compensation and Benefits Expense
Total compensation and benefits expense	$	331,131		$	283,392		$	608,870		$	621,709
Deduct:
Noncontrolling interests (a)		(1,063	)		(1,010	)		(2,184	)		(2,090	)
(Charges) credits pertaining to Lazard Fund Interests (b)		3,477			2,856			(248	)		89
Costs related to staff reductions (c)		–			–			–			(21,754	)
Cost saving initiatives (c)		(26,728	)		–			(51,399	)		–
Adjusted compensation and benefits expense	$	306,817		$	285,238		$	555,039		$	597,954
Adjusted compensation and benefits expense, as a % of Operating Revenue		60.0	%		62.7	%		60.0	%		62.7	%

(a) Expenses related to the consolidation of noncontrolling interests are excluded because, as is the case with operating revenue, Lazard 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 changes in the fair value of the underlying investments, which are excluded from operating revenue.

(c) Represents expenses related to the first quarter 2012 staff reductions and the cost saving initiatives announced by the Company in the fourth quarter of 2012 for (i) severance costs and benefit payments; (ii) the acceleration of unrecognized amortization expense of deferred incentive compensation previously granted to individuals whose employment was being terminated and (iii) the settlement of certain contractual obligations.

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	($ in thousands)
Adjusted Non-Compensation Expense
Total non-compensation expense	$	117,332		$	106,425		$	219,022		$	215,206
Deduct:
Noncontrolling interests (a)		(681	)		(658	)		(1,139	)		(1,299	)
Costs related to staff reductions (b)		–			–			–			(2,905	)
Cost saving initiatives (b)		(11,653	)		–			(13,304	)		–
Adjusted non-compensation expense	$	104,998		$	105,767		$	204,579		$	211,002
Adjusted non-compensation expense, as a % of Operating Revenue		20.5	%		23.2	%		22.1	%		22.1	%

(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 the first quarter 2012 staff reductions and the cost saving initiatives are excluded to enhance comparability of adjusted non-compensation expense between present, historical and future periods.

52

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	($ in thousands)
Earnings From Operations
Operating revenue	$	511,361		$	455,209		$	925,065		$	953,958
Deduct:
Adjusted compensation and benefits expense		(306,817	)		(285,238	)		(555,039	)		(597,954	)
Adjusted non-compensation expense		(104,998	)		(105,767	)		(204,579	)		(211,002	)
Earnings from operations	$	99,546		$	64,204		$	165,447		$	145,002
Earnings from operations, as a % of Operating Revenue		19.5	%		14.1	%		17.9	%		15.2	%

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

	Three Months Ended June  30,						Six Months Ended June 30,
	2013			2012			2013			2012
As a % of Net Revenue, by Revenue Category:
Investment banking and other advisory fees		53	%		55	%		48	%		56	%
Money management fees		48			46			52			44
Interest income		–			1			–			1
Other		3			3			4			4
Interest expense		(4	)		(5	)		(4	)		(5	)
Net Revenue		100	%		100	%		100	%		100	%

	As Of
	June 30, 2013(a)		March 31, 2013		December 31, 2012		June 30, 2012
Headcount:
Managing Directors:
Financial Advisory		138		146		151		153
Asset Management		74		76		75		77
Corporate		15		15		14		13
Other Employees:
Business segment professionals		1,072		1,097		1,108		1,105
All other professionals and support staff		1,105		1,132		1,165		1,199
Total		2,404		2,466		2,513		2,547

(a) As of June 30, 2013, a significant portion of the headcount reductions relating to the cost saving initiatives has been completed, with the remainder expected later in 2013. Such reductions may be partially offset by additional investments and, in the case of managing directors, promotions.

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, 2013 versus June 30, 2012

The Company reported net income attributable to Lazard Ltd in both the 2013 and 2012 periods of $31 million. The changes in the Company’s operating results during these periods are described below.

Net revenue in the 2013 period increased $53 million, or 12%, with operating revenue increasing $56 million, or 12%, as compared to the 2012 period. Fee revenue from investment banking and other advisory activities increased $20 million, or 8%, primarily due to increases in M&A and Other Advisory fees, partially offset by a decline in Restructuring revenue. The increase in M&A and Other Advisory fee revenue was primarily due to an increase in average fees paid in respect of transactions involving fees greater than $1 million. The decline in Restructuring revenue reflected a relatively low level of corporate defaults. Money management fees, including incentive fees, increased $33 million, or 17%, primarily reflecting a $17 billion, or 11%, increase in average AUM as compared to the 2012 period. In the aggregate, interest income, other revenue and interest expense remained substantially unchanged as compared to the 2012 period.

Compensation and benefits expense in the 2013 period increased $48 million, or 17%, compared to the 2012 period, and included a $27 million charge related to the cost saving initiatives. Excluding such charge, compensation and benefits expense increased $21 million, or 7%. Factors contributing to the increase included higher compensation costs driven by the increase in operating revenue, partially offset by lower headcount related to the cost saving initiatives and reduced amortization expense in the 2013 period associated with deferred incentive compensation awards related to 2008 deferred incentive compensation (the “2008 grant”). The 2008 grant, which had a comparatively longer, four year vesting period, affected amortization expense for the full year of 2012 but was fully vested as of March 1, 2013.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between interim periods, as described above), was $307 million in the 2013 period, an increase of $22 million, or 8%, when compared to $285 million in the 2012 period. The ratio of adjusted compensation and benefits expense to operating revenue was 60.0% for the 2013 period, as compared to 62.7% for the 2012 period. The second quarter 2013 ratio of adjusted compensation and benefits expense to operating revenue assumes, based on current market conditions, a ratio of awarded compensation and benefits expense to operating revenue of approximately 58.5% for the full year of 2013, as compared to 59.4% for the full year of 2012. 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 2013 period increased $11 million, or 10%, as compared to the 2012 period. Non-compensation expense in the 2013 period included a charge of $11 million related to the cost saving initiatives. When excluding such charge, as well as non-compensation costs relating to noncontrolling interests, adjusted non-compensation expense in the 2013 period was substantially unchanged. Decreases in (i) marketing and business development expense associated with lower expenses for travel, (ii) technology expense for market data and telecommunications and (iii) professional fees, all primarily attributable to the cost saving initiatives, were offset by deal-related costs, which were higher in the second quarter of 2013 as a result of transactions that closed in this period and by increased mutual fund servicing fees primarily related to the increase in AUM. The ratio of adjusted non-compensation expense to operating revenue was 20.5% in the 2013 period versus 23.2% in the 2012 period.

Amortization of intangible assets decreased by $2 million as compared to the 2012 period.

Operating income in the 2013 period (including the aggregate $38 million charge described above relating to the cost saving initiatives) decreased $4 million, or 8%, as compared to operating income in the 2012 period. Operating income, as a percentage of net revenue, was 8.3%, as compared to 10.2% in the 2012 period.

Earnings from operations increased $35 million, or 55%, when compared to the 2012 period, and, as a percentage of operating revenue, was 19.5% in the 2013 period, as compared to 14.1% in the 2012 period.

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The provision for income taxes decreased $1 million, or 13%, when compared to the 2012 period, and reflected an effective tax rate of 22.0%, as compared to 23.3% for the 2012 period. The decrease in the effective tax rate is primarily reflective of the change in the geographic mix of earnings.

Net income attributable to noncontrolling interests decreased $3 million in the 2013 period due to a lower level of income attributable to noncontrolling interests and a decrease in the level of noncontrolling ownership interest.

Six Months Ended June 30, 2013 versus June 30, 2012

The Company reported net income attributable to Lazard Ltd in the 2013 period of $47 million, as compared to net income of $56 million in the 2012 period. The changes in the Company’s operating results during these periods are described below.

Net revenue in the 2013 period decreased $31 million, or 3%, with operating revenue decreasing $29 million, or 3%, as compared to the 2012 period. Fee revenue from investment banking and other advisory activities decreased $86 million, or 17%, primarily due to decreases in M&A and Other Advisory fees and Restructuring revenue. The decrease in M&A and Other Advisory fee revenue was primarily due to lower average fees per transaction in the 2013 period as compared to the 2012 period, resulting from significant fees earned in the 2012 period related to our sovereign advisory and middle market businesses. The decline in Restructuring revenue reflected higher first-half 2012 revenue, which was driven by the closings of several large assignments in that period, and a relatively low level of corporate defaults. Money management fees, including incentive fees, increased $60 million, or 15%, principally reflecting a $20 billion, or 14%, increase in average AUM as compared to the 2012 period. In the aggregate, interest income, other revenue and interest expense reflected a decrease in net revenue of $5 million as compared to the 2012 period. Such decrease was primarily due to lower investment income in the 2013 period.

Compensation and benefits expense in the 2013 period decreased $13 million, or 2%, compared to the 2012 period, and included a $51 million charge related to the cost saving initiatives, as compared to a $22 million charge in the 2012 period related to the staff reductions. Excluding such charges, compensation and benefits expense decreased $42 million, or 7%, driven by the decline in operating revenue, lower headcount related to the cost saving initiatives and reduced amortization expense related to the 2008 grant.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between interim periods, as described above), was $555 million in the 2013 period, a decrease of $43 million, or 7%, when compared to $598 million in the 2012 period. The ratio of adjusted compensation and benefits expense to operating revenue was 60.0% for the 2013 period, as compared to 62.7% for the 2012 period. The first half 2013 ratio of adjusted compensation and benefits expense to operating revenue assumes, based on current market conditions, a ratio of awarded compensation and benefits expense to operating revenue of approximately 58.5% for the full year of 2013, as compared to 59.4% for the full year of 2012. 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, which primarily results from compensation awards related to 2010, 2011 and 2012 deferred compensation, will approximate $304 million for the full year of 2013, a decrease of $31 million as compared to $335 million for the year ended December 31, 2012. The expected reduction is primarily related to the 2008 grant. The 2008 grant had a comparatively longer, four-year vesting period and, together with compensation awards related to 2009, 2010 and 2011 deferred compensation, affected amortization expense for the full year of 2012. The 2008 grant was fully vested on March 1, 2013.

Non-compensation expense in the 2013 period increased $4 million, or 2%, as compared to the 2012 period and included a charge of $13 million related to the cost saving initiatives, as compared to a charge of $3 million

55

associated with the staff reductions in the first half of 2012. When excluding such charges, as well as non-compensation costs relating to noncontrolling interests, adjusted non-compensation expense in the 2013 period decreased $6 million, or 3%, as compared to the 2012 period, due to decreases in (i) marketing and business development expense associated with lower expenses for travel and other business development (ii) technology expense for telecommunications and (iii) professional fees, all primarily attributable to the cost saving initiatives. Other contributing factors were reduced deal-related costs, which were higher in the first half of 2012 as a result of transactions that closed in that period. Such decreases were partially offset by increased investments in technology, higher occupancy costs related to the amended lease and build-out of our Rockefeller Center facility and mutual fund servicing fees primarily related to the increase in AUM. The ratio of adjusted non-compensation expense to operating revenue was 22.1% in both the 2013 and the 2012 periods.

Amortization of intangible assets decreased $2 million, as compared to the 2012 period.

Operating income in the 2013 period (including the aggregate $64 million charge described above relating to the cost saving initiatives) decreased $20 million, or 24%, as compared to operating income in the 2012 period (including the $25 million charge in 2012 described above relating to the staff reductions). Operating income, as a percentage of net revenue, was 7.0%, as compared to 8.9% in the 2012 period.

Earnings from operations increased $20 million, or 14%, when compared to the 2012 period, and, as a percentage of operating revenue, was 17.9% in the 2013 period, as compared to 15.2% in the 2012 period.

The provision for income taxes decreased $6 million, or 32%, when compared to the 2012 period, and reflected an effective tax rate of 20.7%, as compared to 23.2% for the 2012 period. The decrease in the effective tax rate is primarily reflective of the change in the geographic mix of earnings.

Net income attributable to noncontrolling interests decreased $4 million in the 2013 period due to a lower level of income attributable to noncontrolling interests and a decrease in the level of noncontrolling ownership interest.

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.

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Financial Advisory

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	($ in thousands)
M&A and Other Advisory	$	218,488		$	195,383		$	339,244		$	387,994
Capital Raising		21,583			17,174			36,269			31,544
Total Strategic Advisory		240,071			212,557			375,513			419,538
Restructuring		23,236			30,067			56,256			100,282
Net Revenue		263,307			242,624			431,769			519,820
Operating Expenses(a)		239,766			231,200			456,674			481,097
Operating Income (Loss)	$	23,541		$	11,424		$	(24,905	)	$	38,723
Operating Income (Loss), As A Percentage Of Net Revenue		8.9	%		4.7	%		(5.8	)%		7.4	%

(a) 2013 includes $25,764 and $47,779 for the three month and six month periods, respectively, associated with the implementation of the cost saving initiatives. All periods include indirect support costs (including compensation and benefits expense and other operating expenses related thereto).

Net revenue trends in Financial Advisory for M&A and Other Advisory and Restructuring are generally correlated to the volume of completed industry-wide M&A transactions and restructuring transactions 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 non-public or sovereign advisory assignments. For example, the industry statistics for global M&A transactions described above reflect a 5% increase in the value of completed transactions in the first half of 2013 as compared to the corresponding 2012 period, which was driven primarily by a number of relatively high value transactions in the 2013 period, while the number of completed transactions in the 2013 period decreased 16% as compared to the 2012 period. Our M&A and Other Advisory revenue (which includes Sovereign and Capital Structure Advisory revenue) decreased 13% in the 2013 period as compared to the 2012 period.

Certain Lazard fee and transaction statistics are set forth below:

	Three Months Ended June  30,						Six Months Ended June 30,
	2013			2012			2013			2012
Lazard Statistics:
Number of Clients With Fees Greater Than $1 Million:
Total Financial Advisory		56			55			105			123
M&A and Strategic Advisory		46			44			80			90
Percentage of Total Financial Advisory Revenue from Top 10 Clients		39	%		44	%		26	%		31	%
Number of M&A Transactions Completed With Values Greater than $1 billion (a)		13			16			20			28

(a) Source: Thomson Reuters as of July 9, 2013.

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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,
	2013			2012			2013			2012
United States		64	%		68	%		63	%		61	%
Europe		33			21			33			32
Rest of World		3			11			4			7
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.

Three Months Ended June 30, 2013 versus June 30, 2012

Total Strategic Advisory net revenue, representing fees from M&A and Other Advisory and Capital Raising businesses, increased $28 million, or 13%, and Restructuring revenue decreased $7 million, or 23%, as compared to the 2012 period.

M&A and Other Advisory revenue increased $23 million, or 12%, and Capital Raising revenue increased by $5 million, or 26%, as compared to the 2012 period. The increase in M&A and Other Advisory revenue was primarily due to an increase in the average fees paid in respect of transactions involving fees greater than $1 million. Our major clients, which in the aggregate represented a significant portion of our M&A and Other Advisory revenue for the second quarter of 2013, included 3G Capital and Berkshire Hathaway, Anheuser-Busch InBev, CreXus Investment, Eurasian Natural Resources PLC, LNR Property, NV Energy, Permian Mud Service, Pireaus Bank, Qatar Holding and Utex Industries.

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 timing of which may not correspond to industry announced defaults. The decline in Restructuring revenue was generally in line with a relatively low level of corporate restructuring activity. Clients, which in the aggregate represented a significant portion of our Restructuring revenue in the 2013 period, included Consolis, Financial Guaranty Insurance, Official Committee of Unsecured Creditors of Ambac Financial Group and Oman Investment Fund.

Operating expenses increased $9 million, or 4%, as compared to the 2012 period, and included a $26 million charge in the 2013 period related to the cost saving initiatives. Excluding such charge, operating expenses decreased

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$17 million, or 7%. The primary contributors to the decrease were lower compensation and benefits expense due to headcount reductions related to the cost saving initiatives, a reduction in amortization expense associated with deferred compensation awards and decreased travel and communications expense related to the cost saving initiatives, partially offset by higher deal-related costs as a result of transactions that closed in the 2013 period as compared to the 2012 period.

Financial Advisory operating income in the 2013 period was $24 million (including the impact of the $26 million charge related to the cost saving initiatives), an increase of $13 million as compared to operating income of $11 million in the 2012 period and, as a percentage of net revenue, was 8.9% as compared to 4.7% in the 2012 period. Excluding the impact of such charge in the 2013 period, operating income in the 2013 period was $50 million, an increase of $39 million, as compared to operating income in the 2012 period.

Six Months Ended June 30, 2013 versus June 30, 2012

Total Strategic Advisory net revenue, representing fees from M&A and Other Advisory and Capital Raising businesses, decreased $44 million, or 10%, and Restructuring revenue decreased $44 million, or 44%, as compared to the 2012 period.

M&A and Other Advisory revenue decreased $49 million, or 13%, with Capital Raising revenue increasing $5 million, or 15%, as compared to the 2012 period. The decrease in M&A and Other Advisory revenue was primarily due to lower average fees per transaction in the 2013 period as compared to the 2012 period, resulting from significant fees earned in the 2012 period related to our sovereign advisory and middle markets businesses.

The decline in Restructuring revenue reflected higher first-half revenue in 2012, which was driven by the closings of several large assignments, and a relatively low level of corporate defaults.

Operating expenses decreased $24 million, or 5%, as compared to the 2012 period, and included a $48 million charge in the 2013 period related to the cost saving initiatives. Excluding such charge, operating expenses decreased $72 million, or 15%. The primary contributors to the decrease were lower compensation and benefits expense due to lower operating revenue, headcount reductions related to the cost saving initiatives, a reduction in amortization expense associated with deferred compensation awards, decreased travel and communications expense related to the cost saving initiatives and lower deal-related costs as a result of transactions that closed in the 2013 period as compared to the 2012 period, partially offset by higher occupancy costs related to the amended lease and build-out of our Rockefeller Center facility.

Financial Advisory operating loss in the 2013 period was $25 million (including the impact of the $48 million charge related to the cost saving initiatives), a decrease of $64 million as compared to operating income of $39 million in the 2012 period and, as a percentage of net revenue, was (5.8%) as compared to 7.4% in the 2012 period. Excluding the impact of such charge in the 2013 period, operating income was $23 million, a decrease of $16 million, as compared to operating income in the 2012 period.

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Asset Management

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

	As of
	June 30, 2013		December 31, 2012
	($ in millions)
AUM:
Equity Platforms:
Emerging Markets	$	43,146	$	44,623
Global		31,509		36,247
Local		28,807		30,890
Multi-Regional		30,879		26,411
Total Equity		134,341		138,171
Fixed Income Platforms:
International		10,290		10,980
Global		2,803		3,035
U.S.		3,422		3,549
Emerging Markets		6,441		5,154
Total Fixed Income		22,956		22,718
Alternative Investments		4,613		4,600
Private Equity		1,239		1,398
Cash Management		140		173
Total AUM	$	163,289	$	167,060

Average AUM for the 2013 and 2012 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,
	2013		2012		2013		2012
	($ in millions)
Average AUM	$	167,783	$	150,994	$	169,370	$	149,203

Total AUM at June 30, 2013 decreased $4 billion, or 2%, as compared to total AUM of $167 billion at December 31, 2012, primarily due to net outflows. Average AUM for the three month and six month periods ended June 30, 2013 was 11% and 14% higher, respectively, than that for the corresponding periods in 2012. Within the equity platform, Emerging Markets and Global represented 26% and 19%, respectively, of total AUM at June 30, 2013, as compared to 27% and 22%, respectively, as of December 31, 2012.

As of June 30, 2013, 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 approximately 10% of our AUM was managed on behalf of individual clients, which are principally family offices and individuals, and was substantially unchanged from the corresponding percentages at December 31, 2012.

As of June 30, 2013, AUM denominated in foreign currencies represented approximately 62% of our total AUM, substantially unchanged from the corresponding percentage at December 31, 2012. Foreign denominated AUM generally 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 2013 and 2012 periods:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	($ in millions)
AUM—Beginning of Period	$	171,965		$	156,708		$	167,060		$	141,039
Net Flows (a)		(4,127	)		1,137			(5,122	)		975
Market and Foreign Exchange Appreciation (Depreciation)		(4,549	)		(9,406	)		1,351			6,425
AUM—End of Period	$	163,289		$	148,439		$	163,289		$	148,439

(a) Includes inflows of $8,264 and $7,301 and outflows of $12,391 and $6,164 for the three month periods in 2013 and 2012, respectively, and inflows of $17,356 and $12,609 and outflows of $22,478 and $11,634 for the six month periods in 2013 and 2012, respectively.

During the first half of 2013, most of the inflows were attributable to the Emerging Markets and Multi-Regional equity platforms and the Emerging Markets fixed income platform. Most of the outflows in the 2013 period were attributable to the Global and Local equity platforms.

As of July 29, 2013, AUM was $169.3 billion, a $6.0 billion increase since June 30, 2013. The increase in AUM was due to market and foreign exchange appreciation of $5.1 billion and net inflows of $0.9 billion.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	($ in thousands)
Revenue:
Management Fees	$	217,700		$	195,223		$	437,692		$	395,083
Incentive Fees		15,849			3,704			24,643			6,300
Other Income		11,950			12,126			27,189			24,197
Net Revenue		245,499			211,053			489,524			425,580
Operating Expenses(a)		187,554			156,619			342,631			317,120
Operating Income	$	57,945		$	54,434		$	146,893		$	108,460
Operating Income, As A Percentage of Net Revenue		23.6	%		25.8	%		30.0	%		25.5	%

(a) In 2013, includes $0 and $235 for the three month and six month periods, respectively, associated with the implementation of the cost saving initiatives. All periods include 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 and distribute 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,
	2013			2012			2013			2012
United States		62	%		62	%		62	%		62	%
Europe		25			26			26			26
Rest of World		13			12			12			12
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 and other capital 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, 2013 versus June 30, 2012

Asset Management net revenue increased $34 million, or 16%, as compared to the 2012 period. Management fees increased $22 million, or 12%, as compared to the 2012 period, reflecting a $17 billion, or 11%, increase in average AUM. Incentive fees increased $12 million, or 328%, as compared to the 2012 period, primarily due to fees related to traditional investment products. Other revenue remained substantially unchanged.

Operating expenses increased $31 million, or 20%, as compared to the 2012 period, primarily due to an increase in compensation and benefits expense and mutual fund servicing fees.

Asset Management operating income in the 2013 period was $58 million, an increase of $4 million, or 6%, compared to operating income of $54 million in the 2012 period and, as a percentage of net revenue, was 23.6%, compared to 25.8% in the 2012 period.

Six Months Ended June 30, 2013 versus June 30, 2012

Asset Management net revenue increased $64 million, or 15%, as compared to the 2012 period. Management fees increased $43 million, or 11%, as compared to the 2012 period, reflecting a $20 billion, or 14%, increase in average AUM. Incentive fees increased $18 million, or 291%, as compared to the 2012 period, primarily due to fees related to traditional investment products. Other revenue increased $3 million, or 12%, as compared to the 2012 period, primarily due to higher commissions as a result of increased market activity.

Operating expenses increased $26 million, or 8%, as compared to the 2012 period, primarily due to an increase in compensation and benefits expense and mutual fund servicing fees.

Asset Management operating income in the 2013 period was $147 million, an increase of $38 million, or 35%, compared to operating income of $109 million in the 2012 period and, as a percentage of net revenue, was 30.0%, compared to 25.5% in the 2012 period.

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Corporate

The following table summarizes the reported operating results attributable to the Corporate segment:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	($ in thousands)
Interest Income	$	926		$	1,010		$	1,643		$	1,641
Interest Expense		(20,310	)		(20,320	)		(40,461	)		(40,742	)
Net Interest (Expense)		(19,384	)		(19,310	)		(38,818	)		(39,101	)
Other Revenue		983			2,543			9,833			16,650
Net Revenue (Expense)		(18,401	)		(16,767	)		(28,985	)		(22,451	)
Operating Expenses (a)		22,147			4,558			30,468			42,376
Operating Loss	$	(40,548	)	$	(21,325	)	$	(59,453	)	$	(64,827	)

(a) Includes (i) in 2013, $12,617 and $16,689 for the three month and six month periods, respectively, associated with the implementation of the cost saving initiatives, and (ii) in the six month period of 2012, $24,659 relating to the staff reductions.

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, 2013 versus June 30, 2012

Net interest expense was substantially unchanged as compared to the 2012 period.

Other revenue decreased $2 million, or 61%, as compared to the 2012 period, primarily due to decreased net investment gains.

Operating expenses in the 2013 period increased $17 million, as compared to the 2012 period, and included a charge of $12 million associated with the cost saving initiatives. Excluding the impact of such charge, operating expenses in the 2013 period increased $5 million, as compared to the 2012 period, primarily due to higher compensation and benefits expense.

Six Months Ended June 30, 2013 versus June 30, 2012

Net interest expense was substantially unchanged as compared to the 2012 period.

Other revenue decreased $7 million, or 41%, as compared to the 2012 period, primarily due to decreased net investment gains.

Operating expenses in the 2013 period decreased $12 million, or 28%, compared to the 2012 period, and included in the 2013 period a charge of $16 million associated with the cost saving initiatives, while the 2012 period included a charge of $25 million related to staff reductions. Excluding the impact of such charges, operating expenses in the 2013 period decreased $4 million, or 22%, as compared to the 2012 period, primarily due to lower compensation and benefits expense as a result of headcount reductions relating to the cost saving initiatives and lower amortization expense related to deferred compensation awards, partially offset by increased investments in technology.

Cash Flows

The Company’s cash flows are influenced primarily 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, Other Advisory, and Asset

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Management fees are generally 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. In addition, during the first half of 2013, the Company made cash payments, including severance payments, associated with the cost saving initiatives (see “Cost Saving Initiatives” above and Note 14 of Notes to Condensed Consolidated Financial Statements), with the remaining cash payments expected to be paid primarily during the second half of 2013.

Summary of Cash Flows:

	Six Months Ended  June 30,
	2013			2012
	($ in millions)
Cash Provided By (Used In):
Operating activities:
Net income	$	49.6		$	63.2
Noncash charges (a)		185.4			191.6
Other operating activities (b)		(221.4	)		(220.3	)
Net cash provided by operating activities		13.6			34.5
Investing activities		(35.6	)		(46.9	)
Financing activities (c)		(207.3	)		(238.9	)
Effect of exchange rate changes		(19.4	)		(1.3	)
Net Decrease in Cash and Cash Equivalents		(248.7	)		(252.6	)
Cash and Cash Equivalents:
Beginning of Period		850.2			1,003.8
End of Period	$	601.5		$	751.2
(a)    Consists of the following:
Depreciation and amortization of property	$	16.6		$	14.8
Amortization of deferred expenses, stock units and interest rate hedge		166.9			173.1
Amortization of intangible assets related to acquisitions		1.9			3.7
Total	$	185.4		$	191.6

(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 (“RSUs”), Class A common stock dividends and distributions to noncontrolling interest holders.

Liquidity and Capital Resources

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

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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. Liquidity has also been impacted by cash payments, including severance payments, associated with the cost saving initiatives (see “Cost Saving Initiatives” above and Note 14 of Notes to Condensed Consolidated Financial Statements), with the remaining cash payments expected to be paid primarily during the second half of 2013.

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, 2013, Lazard had approximately $601 million of cash, with such amount including approximately $282 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, 2013, Lazard had approximately $262 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 September 2015 (the “Credit Facility”) (see “—Financing Activities” below) and unused lines of credit available to LFB of approximately $52 million (at June 30, 2013 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, 2013 and December 31, 2012. 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, 2013		December 31, 2012
		($ 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 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, 2013, Lazard Group was in compliance with such ratios, with its Consolidated Leverage Ratio being 1.79 to 1.00 and its Consolidated Interest Coverage Ratio being 8.68 to 1.00. In any event, no amounts were outstanding under the Credit Facility as of June 30, 2013.

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, 2013, 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 9 of Notes to Condensed Consolidated Financial Statements for additional information regarding senior debt.

Stockholders’ Equity

At June 30, 2013, total stockholders’ equity was $592 million, as compared to $652 million at December 31, 2012, including $518 million and $570 million attributable to Lazard Ltd on the respective dates. The net activity in stockholders’ equity during the six month period ended June 30, 2013 is reflected in the table below (in millions of dollars):

Stockholders’ Equity—January 1, 2013	$	652
Increase (decrease) due to:
Net income		50
Amortization of share-based incentive compensation		128
Purchase of Class A common stock		(50	)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $1		(120	)
Class A common stock dividends		(31	)
Distributions to noncontrolling interests, net		(7	)
AOCI (including noncontrolling interests’ portion thereof)(a)		(30	)
Stockholders’ Equity—June 30, 2013	$	592
(a) Includes:
Net foreign currency translation adjustments	$	(31	)
Employee benefit plans and other adjustments		1
Total	$	(30	)

In February 2011, October 2011, April 2012 and October 2012 the Board of Directors of Lazard Ltd authorized the repurchase of up to $250 million, $125 million, $125 million and $200 million, respectively, in aggregate cost of Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013, December 31, 2013 and December 31, 2014, respectively. The Company’s prior share

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repurchase authorizations expired on December 31, 2009 and December 31, 2011, respectively. During the six month period ended June 30, 2013 the Company repurchased 1,434,657 shares of Class A common stock, at an aggregate cost of $50 million (no Lazard Group common membership interests were purchased during such six month period). Furthermore, in order to help offset the dilutive effect of our share-based incentive compensation plans, during a given year Lazard intends to repurchase at least as many shares as it expects to ultimately issue pursuant to such plans in respect of year-end incentive compensation attributable to the prior year.

As of June 30, 2013, $104 million of the current share repurchase amount authorized as of such date remained available under the share repurchase program, all of which expires on December 31, 2014.

Under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of RSUs, performance-based restricted stock units (“PRSUs”) and delivery of restricted Class A common stock, shares of Class A common stock may be withheld by the Company to meet the minimum statutory tax withholding requirements. In that regard, during the six month period ended June 30, 2013, the Company withheld $120 million to satisfy its withholding tax obligations for certain employees on vested RSUs and delivery of restricted Class A common stock in lieu of issuing 3,327,815 shares of Class A common stock.

The Company plans to continue 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 Note 11 and 12 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, 2013:

	Contractual Obligations Payment 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)	$	1,302,410	$	75,218	$	641,280	$	585,912		–
Operating Leases (excluding $154,165 of sublease income)		1,031,146		81,742		150,360		134,959		664,085
Capital Leases (including interest)		18,871		3,120		5,561		10,190		–
Investment Capital Funding Commitments (b)		27,649		27,649		–		–		–
Total (c)	$	2,380,076	$	187,729	$	797,201	$	731,061	$	664,085

(a) See Note 9 of Notes to Condensed Consolidated Financial Statements.

(b) See Note 5 of Notes to Condensed Consolidated Financial Statements. These amounts are generally due on demand and therefore are presented in the “less than 1 year” category.

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(c) The table above excludes contingent obligations, as well as any possible payments for uncertain tax positions, and payments pursuant to the Company’s tax receivable agreement, given the inability to estimate the possible amounts and timing of any such payments. See Notes 10, 12, 13 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, including judgments regarding 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” for a description of our revenue recognition policies on such fees).

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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Compensation Liabilities

Annual discretionary compensation represents a significant portion of our annual compensation and benefits expense. We allocate the estimated amount of such annual discretionary compensation to interim periods in proportion to the amount of operating revenue earned in such period based on an assumed annual ratio of awarded compensation and benefits expense to operating revenue. See “Financial Statement Overview—Operating Expenses” for more information on our periodic compensation and benefits expense.

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. Differences that are temporary in nature result in deferred tax assets and liabilities. Significant judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities as discussed below, any valuation allowance recorded against our deferred tax assets and our unrecognized tax benefits.

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, 2012, on a consolidated basis, we recorded gross deferred tax assets of approximately $1.41 billion.

Subsequent to the initial 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 three year periods ended December 31, 2012 and June 30, 2013, certain of our tax-paying entities have individually experienced minimal profits on a cumulative basis during such periods and losses in 2012, primarily due to permanent differences between net income and taxable income at such entities. Considering the recent operating results of such entities and the other factors listed below, we recorded a valuation allowance of approximately $1.24 billion on our deferred tax assets as of December 31, 2012 and have not changed our assessment regarding the level of valuation allowance as of June 30, 2013.

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 carryback 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 magnitude of any past losses and current operating results,

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• 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.

As mentioned previously, certain of our tax-paying entities have individually experienced minimal profits on a cumulative basis over the past several years and losses in 2012. If these entities achieve sustainable levels of profitability in the future, we believe that the valuation allowance recorded against our deferred tax assets at such entities could be reduced significantly. If any significant 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, 2012 are approximately $705 million related to certain basis step-ups and approximately $196 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 owners of Lazard prior to the separation. 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.

The Company records tax positions taken or expected to be taken in a tax return based upon the amount that is more likely than not to be realized or paid, including in connection with the resolution of any related appeals or other legal processes. Accordingly, the Company recognizes liabilities for certain unrecognized tax benefits based on the amounts that are more likely than not to be settled with the relevant taxing authority. Such liabilities are evaluated periodically as new information becomes available and any changes in the amounts of such liabilities are recorded as adjustments to “income tax expense.” Liabilities for unrecognized tax benefits involve significant judgment and the ultimate resolution of such matters may be materially different from our estimates.

In addition to the discussion above regarding deferred tax assets and associated valuation allowances, as well as unrecognized tax benefit liability estimates, 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.

See “Risk Factors” and Note 17 of Notes to Consolidated Financial Statements in our Form 10-K for additional information related to income taxes.

Investments

Investments consist primarily of debt and equity securities, and interests in alternative investment, debt, equity and private equity funds.

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 “accumulated other comprehensive income (loss), net of tax” (“AOCI”), to the extent designated as “available-for-sale” securities until

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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. The Company holds no “available-for-sale” or “held-to-maturity” securities.

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.

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

	June 30, 2013(a)						December 31, 2012(a)
	$			%			$			%
Debt securities (b)	$	8			2	%	$	6			1	%
Equity securities (net of $3 and $3 of securities sold, not yet purchased, at June 30, 2013 and December 31, 2012, respectively) (c)		48			11			42			10
Alternative investment funds (d)		46			10			58			14
Debt funds (e)		48			11			32			8
Equity funds (f)		176			39			154			37
Private equity funds owned (g)		103			23			101			25
Other (h)		17			4			19			5
Net investments	$	446			100	%	$	412			100	%
Total assets	$	2,921					$	2,987
Net investments, as a percentage of total assets		15	%					14	%

(a) Includes investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements, with an aggregate fair value of $160 million and $101 million at June 30, 2013 and December 31, 2012, 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 invested in debt securities held within separately managed accounts related to our Asset Management business and non-U.S. government debt securities.

(c) Equity securities primarily consist of seed investments invested in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts related to our Asset Management business.

At June 30, 2013 and December 31, 2012, investments in marketable equity securities were invested as follows:

	June 30, 2013			December 31, 2012
Percentage invested in:
Consumer		32	%		31	%
Financials		37			34
Energy		6			9
Industrial		11			12
Basic materials		5			7
Other		9			7
Total		100	%		100	%

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(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 diversified and may incorporate particular strategies; however, there are no investments in funds with a single sector strategy.

(e) Debt funds primarily consist of seed investments in funds related to our Asset Management business, which invest in debt securities, and amounts related to Lazard Fund Interests discussed above.

(f) Equity funds primarily consist of seed investments in funds related to our Asset Management business, which are invested in equity securities, and amounts relating to Lazard Fund Interests discussed above.

(g) Comprised primarily 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) a fund targeting significant noncontrolling-stake investments in established private companies; (iii) Edgewater Growth Capital Partners III, L.P. a fund primarily making growth equity and buyout investments in middle market companies and (iv) COF 2, a Lazard-managed Australian fund targeting Australasian mid-market investments.

(h) 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, 2013 and December 31, 2012, $113 million and $116 million, respectively, of our total investments at a fair value of $446 million and $412 million, respectively, or 25% and 28%, respectively, were classified as Level 3 assets. Substantially all of our Level 3 investments at both dates are priced based on NAV or its equivalent. During the six month periods ended June 30, 2013 and 2012, gains of approximately $3 million and $12 million, respectively, were recognized in “revenue-other” on the consolidated statement 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 fluctuations in the fair value of 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, primarily 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 8 of Notes to Condensed Consolidated Financial Statements for additional information regarding goodwill.

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Consolidation of Variable Interest Entities

The consolidated financial statements include the accounts of Lazard Group and entities in which it has a controlling interest. Lazard determines whether it has a controlling interest in an entity by first evaluating whether such 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.

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, where appropriate, 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, 2013, total receivables amounted to $525 million, net of an allowance for doubtful accounts of $25 million. As of that date, Financial Advisory and Asset Management fees, and customer and related party receivables comprised 75%, 22% and 3% of total receivables, respectively. At December 31, 2012, total receivables amounted to $478 million, net of an allowance for doubtful accounts of $23 million. As of that date, Financial Advisory and Asset Management fees, and customer and related party receivables comprised 84%, 11% and 5% of total receivables, respectively. At June 30, 2013 and December 31, 2012, the Company had receivables past due or deemed uncollectible of approximately $28 million and $26 million, respectively. 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, 2013 and December 31, 2012, customer receivables included $17 million and $14 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, 2013, LFB’s commitments to lend, which are fully collateralized and generally contain requirements for the counterparty to maintain a minimum collateral level, were not significant.

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, 2013, excluding inter-bank counterparties, LFB had no exposure to an individual counterparty that exceeded $6 million. With respect to activities outside LFB, as of June 30, 2013 the Company’s largest individual counterparty exposure was a Financial Advisory fee receivable of $15 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 seed investments related to our Asset Management business. Derivative contracts are recorded at fair value. Derivative assets amounted to $7 million and $1 million at June 30, 2013 and December 31, 2012, respectively, and derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to Lazard Fund Interests and other similar deferred compensation arrangements, amounted to $1 million and $5 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 $151 million and $98 million at June 30, 2013 and December 31, 2012, respectively.

In addition, LFB enters into interest rate swaps, forward foreign currency 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, 2013, we do not believe that the impact of potential significant movements in either the currency or interest rate markets on LFB’s positions would 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, 2013, Lazard estimates that its annual operating income relating to cash and short-term investments and corporate indebtedness would increase by approximately $6 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, 2013, the Company’s cash and cash equivalents totaled approximately $601 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), in short-term interest earning accounts at a number of leading banks throughout the world and in short-term certificates of deposit from such banks. Cash and cash equivalents are constantly monitored. On a regular basis, management reviews its investment profile as well as the credit profile of its list of depositor banks in order to adjust any deposit or investment thresholds as necessary.

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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 experiences significant variation in its revenue and earnings on a quarterly basis. Accordingly, the results of any pending matter or matters could be significant when compared to the Company’s earnings in any particular fiscal quarter. The Company believes, however, based on currently available information, that the results of any pending matters, in the aggregate, will not have a material effect on its business or financial condition.

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 13, 2013, Lazard Ltd issued 839,658 shares of Class A common stock in reliance on Section 4(2) of the Securities Act of 1933 in connection with the exchange of 839,658 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 2013. 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, 2013 – April 30, 2013
Share Repurchase Program (1)		15,500	$	33.39		15,500	$123.4 million
Employee Transactions (2)		7,980	$	35.82		–	$       –
May 1, 2013 – May 31, 2013
Share Repurchase Program (1)		588,000	$	33.61		588,000	$103.6 million
Employee Transactions (2)		13,757	$	32.67		–	$       –
June 1, 2013 – June 30, 2013
Share Repurchase Program (1)		–	$	–		–	$103.6 million
Employee Transactions (2)		62,485	$	33.50		–	$       –
Total
Share Repurchase Program (1)		603,500	$	33.60		603,500	$103.6 million
Employee Transactions (2)		84,222	$	33.58		–	$       –

(1) As disclosed in more detail in Note 11 of Notes to Condensed Consolidated Financial Statements, in February 2011, October 2011, April 2012 and October 2012, the Board of Directors of Lazard Ltd authorized, on a cumulative basis, the repurchase of up to an additional $250 million, $125 million, $125 million and $200 million, respectively, in aggregate cost of Lazard Ltd Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013, December 31, 2013 and December 31, 2014, respectively. The share repurchase program is used primarily

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to offset a 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 include repurchases of Class A common stock (no Lazard Group common membership interests were purchased during the second quarter of 2013) and exclude the shares of Class A common stock withheld by the Company to meet the minimum statutory tax withholding requirements as described below.

(2) Under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of RSUs, PRSUs and delivery of restricted Class A common stock, shares of Class A common stock may be withheld by the Company to meet the minimum statutory tax withholding requirements. During the three month period ended June 30, 2013, the Company satisfied such obligations in lieu of issuing (i) 78,615 shares of Class A common stock upon the vesting of 321,255 RSUs and (ii) 5,607 shares of Class A common stock upon the vesting of 11,846 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	First Supplemental 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 4.2 to Lazard Group LLC’s Registration Statement (File No. 333-126751) on Form S-4 filed on July 21, 2005).
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 Notes (included in Exhibits 4.3 and 4.4).

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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).
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).

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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, 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 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*	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).
10.25*	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).
10.26*	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).
10.27*	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).

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10.28*	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).
10.29*	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).
10.30*	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).
10.31*	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).
10.32*	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).
10.33	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).
10.34	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).
10.35*	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).
10.36*	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).
10.37*	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).
10.38*	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).
10.39*	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).

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10.40*	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).
10.41*	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).
10.42	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).
10.43	Senior Revolving Credit Agreement, dated as of September 25, 2012, among Lazard Group LLC, the Banks from time to time parties thereto, and Citibank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.47 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on November 1, 2012).
10.44*	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).
10.45*	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).
10.46*	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).
10.47*	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).
10.48*	Second Amendment, dated as of October 24, 2012, to the Agreement relating to Retention and Noncompetition and Other Covenants, dated as of March 18, 2005 and amended on March 23, 2010, among the Registrant, Lazard Group LLC and Kenneth M. Jacobs (incorporated by reference to Exhibit 10.52 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on November 1, 2012).
10.49*	Second Amendment, dated as of March 14, 2013, to the Agreement Relating to Retention and Noncompetition and Other Covenants dated as of March 15, 2005 and amended on August 2, 2011, among the Registrant, Lazard Group LLC and Ashish Bhutani (incorporated by reference to Exhibit 10.50 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2013).
10.50*	Second Amendment, dated as of March 14, 2013, to the Agreement Relating to Retention and Noncompetition and Other Covenants dated as of October 4, 2004 and amended on April 1, 2011, among the Registrant, Lazard Group LLC and Matthieu Bucaille (incorporated by reference to Exhibit 10.51 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2013).
10.51*	Second Amendment, dated as of March 14, 2013, to the Agreement Relating to Retention and Noncompetition and Other Covenants dated as of May 4, 2005 and amended on May 7, 2008 and February 23, 2011, among the Registrant, Lazard Group LLC and Scott D. Hoffman (incorporated by reference to Exhibit 10.52 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2013).

82

10.52*	Second Amendment, dated as of March 14, 2013, to the Agreement Relating to Retention and Noncompetition and Other Covenants dated as of October 4, 2004 and amended on March 23, 2010, among the Registrant, Lazard Group LLC and Alexander F. Stern (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, 2013).
10.53*	Form of Agreement evidencing a grant of Performance-Based Stock Units under the 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.54 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2013).
10.54*	Form of Agreement evidencing a grant of Lazard Fund Interests to Named Executive Officers 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, 2013).
10.55*	Form of Agreement evidencing a grant of Restricted Stock Units to Named Executive Officers under the 2008 Incentive Compensation Plan (incorporated by reference to Exhibit 10.56 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 30, 2013).
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.

83

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 30, 2013

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

84

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, 2013			Year Ended December 31,
				2012			2011		2010			2009			2008
	(dollars in thousands)
Operating income (loss)	$	62,535		$	123,885		$	235,499	$	243,650		$	(182,234	)	$	25,140
Add—Fixed charges		53,074			106,470			110,919		117,119			127,398			160,154
Operating income (loss) before fixed charges	$	115,609		$	230,355		$	346,418	$	360,769		$	(54,836	)	$	185,294
Fixed Charges:
Interest (b)	$	40,466		$	81,565		$	90,126	$	97,709		$	107,890		$	139,899
Other (c)		12,608			24,905			20,793		19,410			19,508			20,255
Total fixed charges	$	53,074		$	106,470		$	110,919	$	117,119		$	127,398		$	160,154
Ratio of earnings to fixed charges		2.18	(d)		2.16	(e)		3.12		3.08	(f)		–	(g)		1.16	(h)
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 six month period ended June 30, 2013 is presented after giving effect to a charge of $64,703 associated with the cost saving initiatives announced by the Company in October, 2012. Excluding the impact of such charge, the ratio of earnings to fixed charges would have been 3.40.

(e) Operating income for the year ended December 31, 2012 is presented after giving effect to (i) a charge in the first quarter of $24,659 relating to 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, and (ii) a charge in the fourth quarter of $102,576 associated with the cost saving initiatives announced by the Company in October, 2012. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 3.36.

(f) 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.

(g) 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.

(h) 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, 2013 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 30, 2013

/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, 2013 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 30, 2013

/s/    Matthieu Bucaille

Matthieu Bucaille

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

July 30, 2013

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, 2013 (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 30, 2013

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, 2013 (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.

XML

Cost Saving Initiatives - Activity Related to Obligations Pursuant to Cost Saving Initiatives (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 47,842
New charges	64,703
Non-cash charges	(15,029)
Settlements	(41,193)
Ending Balance	56,323
Accrued Compensation and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	46,128
New charges	51,399
Non-cash charges	(12,007)
Settlements	(40,031)
Ending Balance	45,489
Other Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	1,714
New charges	13,304
Non-cash charges	(3,022)
Settlements	(1,162)
Ending Balance	$ 10,834

XML

Incentive Plans - Schedule of Issuance of RSUs and Charges to Retained Earnings (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of RSUs issued	131,669	310,756
Charges to retained earnings, net of estimated forfeitures	$ 4,062	$ 7,277

XML

Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Parenthetical) (Detail) (RSUs [Member])	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend participation rights	131,669	310,756

XML

Segment Information - Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
Net Revenue (Expense)	$ 490,405	$ 436,910	$ 892,308	$ 922,949
Operating Expenses	449,467	392,377	829,773	840,593
Operating Income (Loss)	40,938	44,533	62,535	82,356
Total Assets
Total Assets	2,921,229		2,921,229		2,986,893
Financial Advisory [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Revenue (Expense)	263,307	242,624	431,769	519,820
Operating Expenses	239,766	231,200	456,674	481,097
Operating Income (Loss)	23,541	11,424	(24,905)	38,723
Total Assets
Total Assets	722,702		722,702		793,007
Asset Management [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Revenue (Expense)	245,499	211,053	489,524	425,580
Operating Expenses	187,554	156,619	342,631	317,120
Operating Income (Loss)	57,945	54,434	146,893	108,460
Total Assets
Total Assets	539,662		539,662		566,677
Corporate [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Revenue (Expense)	(18,401)	(16,767)	(28,985)	(22,451)
Operating Expenses	22,147	4,558	30,468	42,376
Operating Income (Loss)	(40,548)	(21,325)	(59,453)	(64,827)
Total Assets
Total Assets	$ 1,658,865		$ 1,658,865		$ 1,627,209

XML

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

8. GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at June 30, 2013 and December 31, 2012 are presented below:

	June 30, 2013		December 31, 2012
Goodwill	$	348,549	$	364,328
Other intangible assets (net of accumulated amortization)		26,658		28,494
	$	375,207	$	392,822

At June 30, 2013 and December 31, 2012, goodwill of $284,008 and $299,787, respectively, was attributable to the Company’s Financial Advisory segment and, at each such respective date, $64,541 of goodwill was attributable to the Company’s Asset Management segment.

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2013 and 2012 are as follows:

	Six Months Ended June 30,
	2013			2012
Balance, January 1	$	364,328		$	356,657
Business acquisition		1,440			4,272
Foreign currency translation adjustments		(17,219	)		64
Balance, June 30	$	348,549		$	360,993

The gross cost and accumulated amortization of other intangible assets as of June 30, 2013 and December 31, 2012, by major intangible asset category, are as follows:

	June 30, 2013						December 31, 2012
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	30,740	$	10,726	$	20,014	$	30,740	$	10,678	$	20,062
Management fees, customer relationships and non-compete agreements		33,080		26,436		6,644		33,035		24,603		8,432
	$	63,820	$	37,162	$	26,658	$	63,775	$	35,281	$	28,494

Amortization expense of intangible assets for the three month and six month periods ended June 30, 2013 was $1,004 and $1,881, respectively, and for the three month and six month periods ended June 30, 2012 was $2,560 and $3,678, respectively. Estimated future amortization expense is as follows:

Year Ending December 31,	Amortization Expense (a)
2013 (July 1 through December 31)	$	6,761
2014		8,278
2015		6,438
2016		5,181
Total amortization expense	$	26,658

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

XML

Fair Value Measurements - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified			6 Months Ended		6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 EGCP III [Member]	Jun. 30, 2013 EGCP III [Member] Maximum [Member]	Jun. 30, 2013 COF2 [Member]	Jun. 30, 2013 COF2 [Member] Maximum [Member]	Jun. 30, 2013 Corporate Partners II Limited [Member]	Jun. 30, 2013 Corporate Partners II Limited [Member] Maximum [Member]
Fair Value Measurements [Line Items]
Unfunded Commitments	$ 27,649	$ 31,482		$ 18,500		$ 7,209		$ 1,940
End of the investment period			Oct. 12, 2016		Nov. 11, 2016		Feb. 25, 2017
Remaining commitment date			Oct. 12, 2023			Nov. 11, 2019

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
REVENUE
Investment banking and other advisory fees	$ 260,241	$ 240,306	$ 428,345	$ 513,847
Money management fees	234,921	201,642	466,058	406,203
Interest income	1,345	1,715	2,476	3,865
Other	14,209	13,568	35,895	39,777
Total revenue	510,716	457,231	932,774	963,692
Interest expense	20,311	20,321	40,466	40,743
Net revenue	490,405	436,910	892,308	922,949
OPERATING EXPENSES
Compensation and benefits	331,131	283,392	608,870	621,709
Occupancy and equipment	39,738	28,347	69,042	54,629
Marketing and business development	25,377	22,322	43,569	50,589
Technology and information services	20,134	21,275	43,114	41,668
Professional services	10,706	13,274	19,319	22,585
Fund administration and outsourced services	15,388	12,670	28,853	26,121
Amortization of intangible assets related to acquisitions	1,004	2,560	1,881	3,678
Other	5,989	8,537	15,125	19,614
Total operating expenses	449,467	392,377	829,773	840,593
OPERATING INCOME	40,938	44,533	62,535	82,356
Provision for income taxes	9,017	10,371	12,965	19,138
NET INCOME	31,921	34,162	49,570	63,218
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	568	3,341	2,857	6,845
NET INCOME ATTRIBUTABLE TO LAZARD LTD	$ 31,353	$ 30,821	$ 46,713	$ 56,373
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic	121,759,982	118,235,320	119,734,093	118,732,431
Diluted	132,464,296	134,636,935	132,639,928	135,615,557
NET INCOME PER SHARE OF COMMON STOCK:
Basic	$ 0.26	$ 0.26	$ 0.39	$ 0.47
Diluted	$ 0.24	$ 0.24	$ 0.36	$ 0.44
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$ 0.25	$ 0.20	$ 0.25	$ 0.36

XML

Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Organization and Basis of Presentation

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

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

Lazard Ltd indirectly held approximately 99.5% and 98.8% of all outstanding Lazard Group common membership interests as of June 30, 2013 and December 31, 2012, 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 0.5% and 1.2% of the outstanding Lazard Group common membership interests as of June 30, 2013 and December 31, 2012, 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 0.5% and 1.2% of the voting power but no economic rights in the Company as of June 30, 2013 and December 31, 2012, respectively. 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 global investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.

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

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, and asset-liability management.

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “Form 10-K”). The accompanying December 31, 2012 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an assumed annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates.

The consolidated results of operations for the three month and six month periods ended June 30, 2013 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 such entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated.

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Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [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 $9,017 and $12,965 for the three month and six month periods ended June 30, 2013, respectively, and $10,371 and $19,138 for the three month and six month periods ended June 30, 2012, respectively, representing effective tax rates of 22.0%, 20.7%, 23.3% and 23.2%, 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) taxes payable to foreign jurisdictions that are not offset against U.S. income taxes, (iii) foreign source income not subject to U.S. income taxes (including interest on intercompany financings), (iv) Lazard Group’s income from U.S. operations attributable to noncontrolling interests, and (v) 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. Based on the financial results for the applicable annual periods, there is no provision for such payments in the six month periods ended June 30, 2013 and 2012. 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 - Lazard Group Distributed Amounts to LAZ-MD Holdings and Subsidiaries of Lazard Ltd (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Schedule Of Group Distributions [Line Items]
Total distributed by Lazard Group	$ 30,338	$ 43,011
LAZ-MD Holdings [Member]
Schedule Of Group Distributions [Line Items]
Total distributed by Lazard Group	387	2,416
Subsidiaries of Lazard Ltd [Member]
Schedule Of Group Distributions [Line Items]
Total distributed by Lazard Group	30,338	43,011
Lazard Ltd [Member]
Schedule Of Group Distributions [Line Items]
Total distributed by Lazard Group	$ 30,725	$ 45,427

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Derivatives - Net Gains (Losses) with Respect to Derivative Instruments Not Designated as Hedging Instruments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ 5,607	$ 10,537	$ 3,005	$ (4,407)
Forward Foreign Currency Exchange Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	(1,626)	4,051	3,605	2,129
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	3,477	2,856	(248)	89
Equity and Fixed Income Swaps and Other [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ 3,756	$ 3,630	$ (352)	$ (6,625)

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Senior Debt

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Senior Debt

9. SENIOR DEBT

Senior debt was comprised of the following as of June 30, 2013 and December 31, 2012:

	Initial Principal Amount		Maturity Date		Annual Interest Rate			Outstanding As Of
								June 30, 2013		December 31, 2012
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		9/25/15		0.84	%		–		–
Total								$	1,076,850	$	1,076,850

On September 25, 2012, Lazard Group entered into a $150,000, three-year senior revolving credit facility with a group of lenders (the “Credit Facility”), which expires in September 2015. The Credit Facility replaced a similar revolving credit facility which was terminated as a condition to effectiveness of the Credit Facility. 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, 2013, the annual interest rate for a loan accruing interest (based on the Federal Funds overnight rate), including the applicable margin, was 0.84%. At June 30, 2013 and December 31, 2012, no amounts were outstanding under the Credit Facility.

The Credit Facility contains customary terms and conditions, including certain financial covenants. In addition, the Credit Facility, the indenture and the supplemental indentures relating to Lazard Group’s senior notes, contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. As of June 30, 2013, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured.

As of June 30, 2013, the Company had approximately $262,000 in unused lines of credit available to it, including the Credit Facility, and unused lines of credit available to LFB of approximately $52,000 (at June 30, 2013 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, 2013 and December 31, 2012 is carried at historical amounts. At those dates, the fair value of such senior debt outstanding was approximately $1,180,000 and $1,207,000, respectively, and exceeded the aggregate carrying value by approximately $103,000 and $130,000, respectively. The fair value of the Company’s senior debt was based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

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Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Taxes [Line Items]
Provisions for income tax	$ 9,017	$ 10,371	$ 12,965	$ 19,138
Effective income tax rates	22.00%	23.30%	20.70%	23.20%
U.S. federal statutory income tax rate			35.00%
LFCM Holdings [Member]
Income Taxes [Line Items]
Percentage of cash savings required to pay under the tax receivable agreement			85.00%

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Investments - Schedule of Trading Securities Gross Unrealized Investment Gains and Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Investments Debt And Equity Securities [Abstract]
Gross unrealized investment gains		$ 373	$ 3,748	$ 9,623
Gross unrealized investment losses	$ 9,547	$ 8,324	$ 6,536	$ 2,346

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Incentive Plans - Summary of Fund Interests and Other Similar Deferred Compensation Arrangements (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Prepaid Compensation Asset, Beginning Balance	$ 47,445	$ 17,782
Prepaid Compensation Asset, Granted	72,217	64,631
Prepaid Compensation Asset, Settled
Prepaid Compensation Asset, Forfeited	(685)	(1,008)
Prepaid Compensation Asset, Amortization	(30,226)	(16,985)
Prepaid Compensation Asset, Increase (Decrease) in fair value of underlying investments
Prepaid Compensation Asset, Adjustment for estimated forfeitures
Prepaid Compensation Asset, Other	(396)	979
Prepaid Compensation Asset, Ending Balance	88,355	65,399
Compensation Liability, Beginning Balance	97,593	29,900
Compensation Liability, Granted	72,217	64,631
Compensation Liability, Settled	(19,107)	(8,641)
Compensation Liability, Forfeited	(859)	(993)
Compensation Liability, Amortization
Compensation Liability, Increase (Decrease) in fair value of underlying investments	248	(89)
Compensation Liability, Adjustment for estimated forfeitures	2,049
Compensation Liability, Other	(916)	833
Compensation Liability, Ending Balance	$ 151,225	$ 85,641

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Property - Property-Net (Detail) (USD $) In Thousands, unless otherwise specified											6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Buildings [Member]	Dec. 31, 2012 Buildings [Member]	Jun. 30, 2013 Leasehold Improvements [Member]	Dec. 31, 2012 Leasehold Improvements [Member]	Jun. 30, 2013 Furniture and Equipment [Member]	Dec. 31, 2012 Furniture and Equipment [Member]	Jun. 30, 2013 Construction in Progress [Member]	Dec. 31, 2012 Construction in Progress [Member]	Jun. 30, 2013 Minimum [Member] Leasehold Improvements [Member]	Jun. 30, 2013 Minimum [Member] Furniture and Equipment [Member]	Jun. 30, 2013 Maximum [Member] Buildings [Member]	Jun. 30, 2013 Maximum [Member] Leasehold Improvements [Member]	Jun. 30, 2013 Maximum [Member] Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 474,436	$ 450,894	$ 165,106	$ 166,560	$ 156,915	$ 143,408	$ 135,769	$ 122,125	$ 16,646	$ 18,801
Less - accumulated depreciation and amortization	232,487	225,861
Property	$ 241,949	$ 225,033
Property, Plant and Equipment, Useful Life											3 years	3 years	33 years	20 years	10 years

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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2013

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

The following table summarizes the components of net periodic benefit cost related to the Company’s post-retirement plans for the three month and six month periods ended June 30, 2013 and 2012:

	Pension Plans						Medical Plan
	Three Months Ended June 30,
	2013			2012			2013		2012
Components of Net Benefit Cost (Credit):
Service cost	$	309		$	166		$	17	$	19
Interest cost		6,689			6,885			44		52
Expected return on plan assets		(6,585	)		(6,622	)		–		–
Amortization of:
Prior service cost		700			687			–		–
Net actuarial loss		912			420			–		–
Settlement loss (a)		–			886			–		–
Net benefit cost	$	2,025		$	2,422		$	61	$	71

	Pension Plans						Medical Plan
	Six Months Ended June 30,
	2013			2012			2013		2012
Components of Net Benefit Cost (Credit):
Service cost	$	623		$	338		$	27	$	30
Interest cost		13,442			13,787			91		105
Expected return on plan assets		(13,382	)		(13,294	)		–		–
Amortization of:
Prior service cost		1,406			1,388			–		–
Net actuarial loss		1,826			831			–		–
Settlement loss (a)		–			886			–		–
Net benefit cost	$	3,915		$	3,936		$	118	$	135

(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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Regulatory Authorities

6 Months Ended

Jun. 30, 2013

Banking And Thrift [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 (6  ²/₃%) of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $100, whichever is greater. At June 30, 2013, LFNY’s regulatory net capital was $128,583, which exceeded the minimum requirement by $124,897.

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 Conduct Authority, which replaced the Financial Services Authority as the U.K. Subsidiaries’ regulator effective April 1, 2013. At June 30, 2013, the aggregate regulatory net capital of the U.K. Subsidiaries was $74,781, which exceeded the minimum requirement by $54,858.

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, 2013, the consolidated regulatory net capital of CFLF was $185,983, which exceeded the minimum requirement set for regulatory capital levels by $154,183.

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, 2013, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $103,267, which exceeded the minimum required capital by $76,657.

At June 30, 2013, 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, which we continue to examine, LFB, as a European credit institution, is required to be supervised on a consolidated basis by another regulatory body, either in the U.S., by the Board of Governors of the Federal Reserve, or in the European Union. The Dodd-Frank Act and the rules and regulations that may be adopted thereunder (including regulations that have not yet been proposed) could affect us in other ways. We continue to monitor the possible effect of the implementation of alternatives available to us.

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Related Parties

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Parties

17. RELATED PARTIES

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

	June 30, 2013		December 31, 2012
Receivables
LFCM Holdings	$	14,232	$	20,529
Other		1,010		3,272
Total	$	15,242	$	23,801
Payables
LFCM Holdings	$	4,749	$	2,943
Other		10		705
Total	$	4,759	$	3,648

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, 2013, amounts recorded by Lazard Group relating to the administrative services agreement amounted to $300 and $932, respectively, and net referral fees for underwriting, private placement, M&A and restructuring transactions under the business alliance agreement amounted to $(970) and $(470), respectively. 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. 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, 2013 and December 31, 2012 include $8,568 and $14,299, 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 $5,664 and $6,230, respectively, related to referral fees for underwriting and private placement transactions. Payables to LFCM Holdings and its subsidiaries at June 30, 2013 and December 31, 2012 include $4,749 and $2,943, respectively, primarily relating to referral fees for Financial Advisory transactions.

Other

Other receivables and payables at June 30, 2013 and December 31, 2012 primarily relate to referral fees for 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, at December 31, 2012, a related party loan.

LAZ-MD Holdings

Lazard Group provides certain administrative and support services to LAZ-MD Holdings through an administrative services agreement, 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, 2013, such charges amounted to $250 and $500, respectively. For the three month and six month periods ended June 30, 2012, such charges amounted to $187 and $375, respectively.

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Investments - Company's Investments and Securities Sold, Not Yet Purchased (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Interest-bearing deposits	$ 514	$ 578
Lazard Fund Interests in equities	121,408	76,907
Lazard Fund Interests in alternative investments	7,631	5,054
Lazard Fund Interests in debt	$ 31,013	$ 18,615

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Components of Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets at June 30, 2013 and December 31, 2012 are presented below:

	June 30, 2013		December 31, 2012
Goodwill	$	348,549	$	364,328
Other intangible assets (net of accumulated amortization)		26,658		28,494
	$	375,207	$	392,822

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2013 and 2012 are as follows:

	Six Months Ended June 30,
	2013			2012
Balance, January 1	$	364,328		$	356,657
Business acquisition		1,440			4,272
Foreign currency translation adjustments		(17,219	)		64
Balance, June 30	$	348,549		$	360,993

Gross Cost and Accumulated Amortization of Other Intangible Assets

The gross cost and accumulated amortization of other intangible assets as of June 30, 2013 and December 31, 2012, by major intangible asset category, are as follows:

	June 30, 2013						December 31, 2012
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	30,740	$	10,726	$	20,014	$	30,740	$	10,678	$	20,062
Management fees, customer relationships and non-compete agreements		33,080		26,436		6,644		33,035		24,603		8,432
	$	63,820	$	37,162	$	26,658	$	63,775	$	35,281	$	28,494

Estimated Future Amortization Expense

Amortization expense of intangible assets for the three month and six month periods ended June 30, 2013 was $1,004 and $1,881, respectively, and for the three month and six month periods ended June 30, 2012 was $2,560 and $3,678, respectively. Estimated future amortization expense is as follows:

Year Ending December 31,	Amortization Expense (a)
2013 (July 1 through December 31)	$	6,761
2014		8,278
2015		6,438
2016		5,181
Total amortization expense	$	26,658

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

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

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Company's Basic and Diluted Net Income Per Share and Weighted Average Shares Outstanding

The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month and six month periods ended June 30, 2013 and 2012 are presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net income attributable to Lazard Ltd	$	31,353		$30,821	$	46,713		$56,373
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		–		2		–		2
Net income attributable to Lazard Ltd - basic		31,353		30,823		46,713		56,375
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 and exchangeable interests, net of tax		289		1,686		471		2,876
Net income attributable to Lazard Ltd - diluted		$31,642		$32,509		$47,184		$59,251
Weighted average number of shares of Class A common stock outstanding		121,028,696		117,478,380		118,975,340		118,079,120
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		731,286		756,940		758,753		653,311
Weighted average number of shares of Class A common stock outstanding - basic		121,759,982		118,235,320		119,734,093		118,732,431
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation and exchangeable interests		10,704,314		16,401,615		12,905,835		16,883,126
Weighted average number of shares of Class A common stock outstanding - diluted		132,464,296		134,636,935		132,639,928		135,615,557
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.26		$0.26		$0.39		$0.47
Diluted		$0.24		$0.24		$0.36		$0.44

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Fair Value Measurements - Classification of Investments and Certain Other Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equities	$ 51,957	$ 44,992
Derivatives	6,947	933
Securities sold, not yet purchased	3,263	2,755
Derivatives	152,514	102,492
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equities	51,957	44,992
Derivatives	6,947	933
Total Assets	448,696	408,016
Securities sold, not yet purchased	3,263	2,755
Derivatives	152,514	102,492
Total Liabilities	155,777	105,247
Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	6,994	5,370
Alternative Investments Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	45,739	57,890
Debt Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	48,490	32,077
Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	175,736	154,310
Private Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	112,833	112,444
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equities	51,320	44,802
Derivatives
Total Assets	269,971	223,549
Securities sold, not yet purchased	3,263	2,696
Derivatives
Total Liabilities	3,263	2,696
Level 1 [Member] | Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,093	1,443
Level 1 [Member] | Alternative Investments Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Level 1 [Member] | Debt Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	48,486	32,073
Level 1 [Member] | Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	169,072	145,231
Level 1 [Member] | Private Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equities
Derivatives	6,947	933
Total Assets	65,244	68,366
Securities sold, not yet purchased		59
Derivatives	152,514	102,492
Total Liabilities	152,514	102,551
Level 2 [Member] | Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	5,901	3,927
Level 2 [Member] | Alternative Investments Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	45,728	54,433
Level 2 [Member] | Debt Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	4	4
Level 2 [Member] | Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	6,664	9,069
Level 2 [Member] | Private Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equities	637	190
Derivatives
Total Assets	113,481	116,101
Securities sold, not yet purchased
Derivatives
Total Liabilities
Level 3 [Member] | Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Level 3 [Member] | Alternative Investments Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	11	3,457
Level 3 [Member] | Debt Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Level 3 [Member] | Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments		10
Level 3 [Member] | Private Equity Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 112,833	$ 112,444

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Classification of Investments and Certain Other Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the classification of investments and certain other assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 within the fair value hierarchy:

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	1,093	$	5,901	$	–	$	6,994
Equities		51,320		–		637		51,957
Funds:
Alternative investments		–		45,728		11		45,739
Debt		48,486		4		–		48,490
Equity		169,072		6,664		–		175,736
Private equity		–		–		112,833		112,833
Derivatives		–		6,947		–		6,947
Total	$	269,971	$	65,244	$	113,481	$	448,696
Liabilities:
Securities sold, not yet purchased	$	3,263	$	–	$	–	$	3,263
Derivatives		–		152,514		–		152,514
Total	$	3,263	$	152,514	$	–	$	155,777
	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	1,443	$	3,927	$	–	$	5,370
Equities		44,802		–		190		44,992
Funds:
Alternative investments		–		54,433		3,457		57,890
Debt		32,073		4		–		32,077
Equity		145,231		9,069		10		154,310
Private equity		–		–		112,444		112,444
Derivatives		–		933		–		933
Total	$	223,549	$	68,366	$	116,101	$	408,016
Liabilities:
Securities sold, not yet purchased	$	2,696	$	59	$	–	$	2,755
Derivatives		–		102,492		–		102,492
Total	$	2,696	$	102,551	$	–	$	105,247

Summary of Changes in Fair Value of 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, 2013 and 2012:

	Three Months Ended June 30, 2013
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	184	$	6	$	445	$	–		$	2		$	637
Alternative investment funds		1,304		34		–		(1,327	)		–			11
Private equity funds		110,496		3,056		3,259		(4,612	)		634			112,833
Total Level 3 Assets	$	111,984	$	3,096	$	3,704	$	(5,939	)	$	636		$	113,481
	Six Months Ended June 30, 2013
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	190	$	6	$	445	$	–		$	(4	)	$	637
Alternative investment funds		3,457		128		–		(3,574	)		–			11
Equity funds		10		–		–		(10	)		–			–
Private equity funds		112,444		3,738		3,259		(5,868	)		(740	)		112,833
Total Level 3 Assets	$	116,101	$	3,872	$	3,704	$	(9,452	)	$	(744	)	$	113,481

	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	$	217	$	5		$	–	$	(30	)	$	(11	)	$	181
Alternative investment funds		5,915		(38	)		–		(1,251	)		–			4,626
Private equity funds		116,563		4,786			56		(4,873	)		(2,541	)		113,991
Total Level 3 Assets	$	122,695	$	4,753		$	56	$	(6,154	)	$	(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	$	211	$	5		$	–	$	(30	)	$	(5	)	$	181
Alternative investment funds		10,171		89			10		(5,644	)		–			4,626
Private equity funds		122,718		12,350			2,752		(22,745	)		(1,084	)		113,991
Total Level 3 Assets	$	133,100	$	12,444		$	2,762	$	(28,419	)	$	(1,089	)	$	118,798

(a) Earnings for the three month and six month periods ended June 30, 2013 and the three month and six month periods ended June 30, 2012 include net unrealized gains of $2,657, $3,327, $3,483 and $9,563, 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, 2013 and December 31, 2012 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, 2013
					% of Fair Value Not Redeemable	Estimated Liquidation Period of Investments Not Redeemable			Investments Redeemable
	Fair Value		Unfunded Commitments			% Next 5 Years	% 5-10 Years	% Thereafter	Redemption Frequency	Redemption Notice Period
Alternative investment funds	$	45,739	$	–	NA	NA	NA	NA	(a)		<30-120 days
Debt funds		4		–	NA	NA	NA	NA	(b)		30 days
Equity funds		6,664		–	NA	NA	NA	NA	(c)		<30-90 days
Private equity funds		112,833		27,649	100%	10%	38%	52%	NA		NA
Total	$	165,240	$	27,649

Redemption frequency as follows:

(a) daily (1%), weekly (11%), monthly (54%) and quarterly (34%)

(b) daily (100%)

(c) monthly (100%)

	December 31, 2012
					% of Fair Value Not Redeemable	Estimated Liquidation Period of Investments Not Redeemable			Investments Redeemable
	Fair Value		Unfunded Commitments			% Next 5 Years	% 5-10 Years	% Thereafter	Redemption Frequency	Redemption Notice Period
Alternative investment funds	$	57,890	$	–	NA	NA	NA	NA	(a)	<30-120 days
Debt funds		4		–	NA	NA	NA	NA	(b)	30 days
Equity funds		9,079		–	2%	–%	–%	2%	(c)	30-120 days
Private equity funds		112,444		31,482	100%	13%	39%	48%	NA	NA
Total	$	179,417	$	31,482

Redemption frequency as follows:

(a) daily (10%), weekly (9%), monthly (38%) and quarterly (43%)

(b) daily (100%)

(c) daily (37%) and monthly (61%)

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Senior Debt - Senior Debt (Detail) (USD $) In Thousands, unless otherwise specified				6 Months Ended		6 Months Ended		6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Sep. 25, 2012	Jun. 30, 2013 Lazard Group 7.125% Senior Notes [Member]	Dec. 31, 2012 Lazard Group 7.125% Senior Notes [Member]	Jun. 30, 2013 Lazard Group 6.85% Senior Notes [Member]	Dec. 31, 2012 Lazard Group 6.85% Senior Notes [Member]	Jun. 30, 2013 Lazard Group Credit Facility [Member]	Dec. 31, 2012 Lazard Group Credit Facility [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, Initial Principal Amount			$ 150,000					$ 150,000
Senior Debt, Maturity Date				May 15, 2015		Jun. 15, 2017		Sep. 25, 2015
Revolving Credit Facility, Annual Interest Rate								0.84%
Senior Debt, Initial Principal Amount				550,000		600,000
Senior Debt, Annual Interest Rate				7.125%		6.85%
Senior debt, Outstanding	$ 1,076,850	$ 1,076,850		$ 528,500	$ 528,500	$ 548,350	$ 548,350

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Stockholders' Equity - Net Income Attributable to Noncontrolling Interests (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Change In Ownership Interest [Line Items]
Net Income (Loss) Attributable To Noncontrolling Interests	$ 568	$ 3,341	$ 2,857	$ 6,845
Noncontrolling interests	74,127		74,127		81,884
Edgewater [Member]
Change In Ownership Interest [Line Items]
Net Income (Loss) Attributable To Noncontrolling Interests	287	1,698	2,653	3,872
Noncontrolling interests	71,020		71,020		75,262
LAZ-MD Holdings [Member]
Change In Ownership Interest [Line Items]
Net Income (Loss) Attributable To Noncontrolling Interests	305	1,694	497	3,019
Noncontrolling interests	2,248		2,248		5,405
Other [Member]
Change In Ownership Interest [Line Items]
Net Income (Loss) Attributable To Noncontrolling Interests	(24)	(51)	(293)	(46)
Noncontrolling interests	$ 859		$ 859		$ 1,217

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Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible asset amortization attributable to noncontrolling interest, percentage	45.00%

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Organization and Basis of Presentation - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013 Segment	Jun. 30, 2013 Class B Common Stock [Member]	Dec. 31, 2012 Class B Common Stock [Member]	Jun. 30, 2013 Class A Common Stock [Member]	Dec. 31, 2012 Class A Common Stock [Member]	Jun. 30, 2013 Lazard Ltd [Member]	Dec. 31, 2012 Lazard Ltd [Member]	Jun. 30, 2013 LAZ-MD Holdings LLC [Member]	Dec. 31, 2012 LAZ-MD Holdings LLC [Member]	Jun. 30, 2013 LAZ-MD Holdings LLC [Member] Class B Common Stock [Member]	Dec. 31, 2012 LAZ-MD Holdings LLC [Member] Class B Common Stock [Member]
Organization And Basis Of Presentation [Line Items]
Percentage of common membership interests held							99.50%	98.80%	0.50%	1.20%
Governing Operating Agreement, date	May 10, 2005
Common membership voting power held											0.50%	1.20%
Common stock, par value			$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, shares outstanding			1	1	129,056,081	128,216,423					1
Common stock, shares issued			1	1	129,056,081	128,216,423					1
Number of business segments		2

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Stockholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (110,541)
Other comprehensive gain (loss) before reclassifications	(33,889)
Adjustments for items reclassified to earnings, net of tax	2,941
Net other comprehensive income (loss)	(30,948)
Ending balance	(141,489)
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	19,405
Other comprehensive gain (loss) before reclassifications	(30,767)
Adjustments for items reclassified to earnings, net of tax
Net other comprehensive income (loss)	(30,767)
Ending balance	(11,362)
Interest Rate Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(2,502)
Other comprehensive gain (loss) before reclassifications
Adjustments for items reclassified to earnings, net of tax	527
Net other comprehensive income (loss)	527
Ending balance	(1,975)
Employee Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(128,536)
Other comprehensive gain (loss) before reclassifications	(2,719)
Adjustments for items reclassified to earnings, net of tax	2,430
Net other comprehensive income (loss)	(289)
Ending balance	(128,825)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(111,633)
Other comprehensive gain (loss) before reclassifications	(33,486)
Adjustments for items reclassified to earnings, net of tax	2,957
Net other comprehensive income (loss)	(30,529)
Ending balance	(142,162)
Noncontrolling Interests [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(1,092)
Other comprehensive gain (loss) before reclassifications	403
Adjustments for items reclassified to earnings, net of tax	16
Net other comprehensive income (loss)	419
Ending balance	$ (673)

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Net Income Per Share of Class A Common Stock

6 Months Ended

Jun. 30, 2013

Earnings Per Share [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, 2013 and 2012 are computed as described below.

Basic Net Income Per Share

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

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

Diluted Net Income Per Share

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

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods, as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock to settle share-based incentive compensation and LAZ-MD Holdings exchangeable interests, using the “treasury stock” 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, 2013 and 2012 are presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net income attributable to Lazard Ltd	$	31,353		$30,821	$	46,713		$56,373
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		–		2		–		2
Net income attributable to Lazard Ltd - basic		31,353		30,823		46,713		56,375
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 and exchangeable interests, net of tax		289		1,686		471		2,876
Net income attributable to Lazard Ltd - diluted		$31,642		$32,509		$47,184		$59,251
Weighted average number of shares of Class A common stock outstanding		121,028,696		117,478,380		118,975,340		118,079,120
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		731,286		756,940		758,753		653,311
Weighted average number of shares of Class A common stock outstanding - basic		121,759,982		118,235,320		119,734,093		118,732,431
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation and exchangeable interests		10,704,314		16,401,615		12,905,835		16,883,126
Weighted average number of shares of Class A common stock outstanding - diluted		132,464,296		134,636,935		132,639,928		135,615,557
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.26		$0.26		$0.39		$0.47
Diluted		$0.24		$0.24		$0.36		$0.44

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement Of Partners Capital [Abstract]
Tax benefit (expense) on actuarial loss, employee benefit plans	$ (84)	$ 1,443	$ 1,711	$ 2,725
Tax expense, adjustment for items reclassified to earnings, employee benefit plans	$ 400	$ 281	$ 802	$ 578

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Thousands, except Share data, unless otherwise specified		Total USD ($)	Series A Preferred Stock [Member]	Common Stock [Member] USD ($)		Additional Paid-In-Capital [Member] USD ($)	Retained Earnings [Member] USD ($)	Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] USD ($)	Class A Common Stock Held By Subsidiaries [Member] USD ($)	Total Lazard Ltd Stockholders' Equity [Member] USD ($)	Noncontrolling Interests [Member] USD ($)
Balance at Dec. 31, 2011		$ 866,856		$ 1,230		$ 659,013	$ 258,646	$ (88,364)	$ (104,382)	$ 726,143	$ 140,713
Balance (in shares) at Dec. 31, 2011			7,921	123,009,312	[1]				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 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 benefit and tax expense		(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 benefit and tax expense (in shares)									(2,808,832)
Class A common stock issued in exchange for Lazard Group common membership interests				2		(2)
Class A common stock issued in exchange for Lazard Group common membership interests (in shares)	[1]			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)
Balance at Jun. 30, 2012		826,408		1,232		700,064	264,682	(94,171)	(167,382)	704,425	121,983
Balance (in shares) at Jun. 30, 2012			7,921	123,196,013	[1]				6,389,777
Balance at Dec. 31, 2012		651,540		1,282		846,050	182,647	(110,541)	(349,782)	569,656	81,884
Balance (in shares) at Dec. 31, 2012			7,921	128,216,424	[2]				12,802,938
Comprehensive income (loss):
NET INCOME		49,570					46,713			46,713	2,857
Other comprehensive income (loss) - net of tax:
Currency translation adjustments		(30,767)						(30,587)		(30,587)	(180)
Amortization of interest rate hedge		527						524		524	3
Employee benefit plans:
Net actuarial loss		(2,719)						(2,704)		(2,704)	(15)
Adjustments for items reclassified to earnings		2,430						2,417		2,417	13
COMPREHENSIVE INCOME		19,041								16,363	2,678
Business acquisitions and related equity transactions:
Class A common stock issuable (including related amortization)		638				635				635	3
Delivery of Class A common stock (including dividend-equivalents)						(4,994)	(179)		5,173
Delivery of Class A common stock, shares									(170,988)
Amortization of share-based incentive compensation		128,081				127,381				127,381	700
Dividend-equivalents		(103)				4,173	(4,276)			(103)
Class A common stock dividends		(30,338)					(30,338)			(30,338)
Purchase of Class A common stock		(50,447)							(50,447)	(50,447)
Purchase of Class A common stock (in shares)									1,434,657
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit and tax expense		(118,920)				(318,332)	(609)		200,016	(118,925)	5
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit and tax expense (in shares)									(6,907,296)
Class A common stock issued in exchange for Lazard Group common membership interests				8		(8)
Class A common stock issued in exchange for Lazard Group common membership interests (in shares)	[2]			839,658
Distributions to noncontrolling interests, net		(7,281)									(7,281)
Adjustments related to noncontrolling interests						4,460		(598)		3,862	(3,862)
Balance at Jun. 30, 2013		$ 592,211		$ 1,290		$ 659,365	$ 193,958	$ (141,489)	$ (195,040)	$ 518,084	$ 74,127
Balance (in shares) at Jun. 30, 2013			7,921	129,056,082	[2]				7,159,311

[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 128,216,423 and 129,056,081 shares of the Company's Class A common stock issued at January 1, 2013 and June 30, 2013, respectively, and 1 share of the Company's Class B common stock issued at each such date.

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Recent Accounting Developments

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Recent Accounting Developments

2. RECENT ACCOUNTING DEVELOPMENTS

Offsetting (Netting) Assets and Liabilities—In the first quarter of 2013, the Company adopted the new disclosure requirements issued by the Financial Accounting Standards Board (the “FASB”) regarding the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments, including derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either (i) offset or (ii) subject to an enforceable master netting arrangement. The new disclosures are designed to make financial statements prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards (“IFRS”) and will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013, with retrospective application required. The adoption of the new disclosure requirements did not have a material impact on the Company’s consolidated financial statements.

Reclassifications Out of Accumulated Other Comprehensive Income—In the first quarter of 2013, the Company adopted the FASB’s amended guidance regarding the presentation of amounts reclassified out of accumulated other comprehensive income. The amendment required that the amounts reclassified out of accumulated other comprehensive income be presented by component and disclosed where the respective line item was reported in the consolidated statement of operations. The amendment was to be applied prospectively, and is effective with interim and annual periods beginning after December 15, 2012, with early adoption permitted. The adoption of the amended guidance did not have a material impact on the Company’s consolidated financial statements.

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Incentive Plans - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended						6 Months Ended							3 Months Ended	6 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013 Non-Executive [Member]	Jun. 30, 2013 Lazard Fund Interests [Member]	Jun. 30, 2013 March 2015 [Member]	Jun. 30, 2013 March 2016 [Member]	Jun. 30, 2013 Class A Common Stock [Member]	Jun. 30, 2013 Class A Common Stock [Member] Awarded under 2008 Plan [Member]	Jun. 30, 2013 Class A Common Stock [Member] RSUs [Member]	Jun. 30, 2012 Class A Common Stock [Member] RSUs [Member]	Jun. 30, 2013 DSUs [Member]	Jun. 30, 2012 DSUs [Member]	Jun. 30, 2013 RSUs [Member]	Jun. 30, 2012 RSUs [Member]	Dec. 31, 2012 RSUs [Member] Liability Awards [Member]	Jun. 30, 2013 RSUs [Member] Liability Awards [Member]	Mar. 31, 2013 RSUs [Member] Liability Awards [Member]	Jun. 30, 2013 Restricted Stock [Member]	Jun. 30, 2012 Restricted Stock [Member]	Jun. 30, 2013 Restricted Stock [Member] Class A Common Stock [Member]	Jun. 30, 2012 Restricted Stock [Member] Class A Common Stock [Member]	Jun. 30, 2013 PRSUs [Member]	Jun. 30, 2013 PRSUs [Member] Executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized pertaining to share based compensation arrangements, 2005 Plan						25,000,000
Percentage of outstanding Class A common stock							30.00%
Percentage of annual compensation received by directors in the form of DSUs		55.00%
Portion of annual compensation elected to be paid in DSUs in lieu of cash										39,315	49,735
Units granted under the directors deferred unit plan										3,916	5,489
Withholding taxes in lieu of share delivery								3,309,900	967,828								17,915	28,129
Delivery of common stock associated with stock awards								5,280,099	2,664,104
Forward purchase agreements														958,213
Liability awards, compensation expense															$ 1,690
Liability awards																28,612
Unrecognized compensation expense												236,000					11,000
Unrecognized compensation expense, years												1 year 6 months					1 year 8 months 12 days
Common stock delivered by company, shares																			1,709,206	103,614
Shares granted										43,231	55,224	4,689,312	7,847,541									448,128
Percentage of shares vested				33.00%	67.00%
Percentage of target number of shares subject to each PRSU no longer subject to forfeiture due to threshold level of performance being achieved	25.00%
Weighted Average Grant Date Fair Value, Granted										$ 34.09	$ 23.32	$ 36.95	$ 27.51								$ 36.11
Unrecognized compensation expense																					$ 14,000
Amortization of prepaid compensation asset, weighted average recognition period, years			1 year 10 months 24 days																		1 year 10 months 24 days

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Class A Common Stock [Member]	Dec. 31, 2012 Class A Common Stock [Member]	Jun. 30, 2012 Class A Common Stock [Member]	Dec. 31, 2011 Class A Common Stock [Member]	Jun. 30, 2013 Class B Common Stock [Member]	Dec. 31, 2012 Class B Common Stock [Member]	Jun. 30, 2012 Class B Common Stock [Member]	Dec. 31, 2011 Class B Common Stock [Member]
Tax benefit or expenses related to delivery of Class A Common Stock in connection with share-based incentive compensation	$ 862	$ 972
Common stock, issued			129,056,081	128,216,423	123,196,012	123,009,311	1	1	1	1

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Related Parties (Tables)

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Amounts Receivable from and Payable to Related Parties

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

	June 30, 2013		December 31, 2012
Receivables
LFCM Holdings	$	14,232	$	20,529
Other		1,010		3,272
Total	$	15,242	$	23,801
Payables
LFCM Holdings	$	4,749	$	2,943
Other		10		705
Total	$	4,759	$	3,648

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Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [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, 2013 and 2012 was prepared using the following methodology:

• Revenue and expenses directly associated with each segment are included in determining operating income.

• Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

• Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors.

The Company allocates investment gains and losses, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

Each segment’s operating expenses include (i) compensation and benefits expenses incurred directly in support of the businesses and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, 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,
		2013(a)			2012			2013(a)			2012
Financial Advisory	Net Revenue	$	263,307		$	242,624		$	431,769		$	519,820
	Operating Expenses		239,766			231,200			456,674			481,097
	Operating Income (Loss)	$	23,541		$	11,424		$	(24,905	)	$	38,723
Asset Management	Net Revenue	$	245,499		$	211,053		$	489,524		$	425,580
	Operating Expenses		187,554			156,619			342,631			317,120
	Operating Income	$	57,945		$	54,434		$	146,893		$	108,460
Corporate	Net Revenue (Expense)	$	(18,401	)	$	(16,767	)	$	(28,985	)	$	(22,451	)
	Operating Expenses		22,147			4,558			30,468			42,376
	Operating Income (Loss)	$	(40,548	)	$	(21,325	)	$	(59,453	)	$	(64,827	)
Total	Net Revenue	$	490,405		$	436,910		$	892,308		$	922,949
	Operating Expenses		449,467			392,377			829,773			840,593
	Operating Income	$	40,938		$	44,533		$	62,535		$	82,356

(a) See Note 14 of Notes to Condensed Consolidated Financial Statements for information regarding the Cost Saving Initiatives, and the impact on each of the Company’s business segments during the three month and six month periods ended June 30, 2013.

	As Of
	June 30, 2013		December 31, 2012
Total Assets
Financial Advisory	$	722,702	$	793,007
Asset Management		539,662		566,677
Corporate		1,658,865		1,627,209
Total	$	2,921,229	$	2,986,893

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Derivatives (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Value of Derivatives Reported on Consolidated Statements of Financial Condition

The tables below present the fair values of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair values of the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (see Note 12 of Notes to Condensed Consolidated Financial Statements) on the accompanying condensed consolidated statements of financial condition as of June 30, 2013 and December 31, 2012:

	June 30, 2013		December 31, 2012
Derivative Assets:
Forward foreign currency exchange rate contracts	$	626	$	893
Equity and fixed income swaps and other (a)		6,321		40
	$	6,947	$	933
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	1,289	$	322
Interest rate swaps		–		235
Equity and fixed income swaps (a)		–		4,342
Lazard Fund Interests and other similar deferred compensation arrangements		151,225		97,593
	$	152,514	$	102,492

(a) For equity and fixed income swaps, amounts represent the netting of gross derivative assets and liabilities of $6,332 and $11 as of June 30, 2013, respectively, and $0 and $4,342 as of December 31, 2012, respectively, for contracts with the same counterparty under legally enforceable master netting agreements. Such amounts are recorded “net” in “other assets”, with receivables for net cash collateral under such contracts of $4,574 and $15,304 as of June 30, 2013 and December 31, 2012, respectively.

Net Gains (Losses) with Respect to Derivative Instruments not Designated as Hedging Instruments

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2013 and 2012, were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Forward foreign currency exchange rate contracts	$	(1,626	)	$	4,051	$	3,605		$	2,129
Lazard Fund Interests and other similar deferred compensation arrangements		3,477			2,856		(248	)		89
Equity and fixed income swaps and other		3,756			3,630		(352	)		(6,625	)
Total	$	5,607		$	10,537	$	3,005		$	(4,407	)

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Stockholders' Equity - Changes in Ownership Interests (Detail)	6 Months Ended
	Jun. 30, 2013 Lazard Ltd [Member]	Jun. 30, 2012 Lazard Ltd [Member]	Jun. 30, 2013 LAZ-MD Holdings [Member]	Jun. 30, 2012 LAZ-MD Holdings [Member]	Jun. 30, 2013 Total Lazard Group Common Membership Interests [Member]	Dec. 31, 2012 Total Lazard Group Common Membership Interests [Member]	Jun. 30, 2012 Total Lazard Group Common Membership Interests [Member]	Dec. 31, 2011 Total Lazard Group Common Membership Interests [Member]
Change In Ownership Interest [Line Items]
Beginning balance (in shares)	128,216,423	123,009,311	1,549,667	6,756,779	129,766,090	129,766,090	129,766,090	129,766,090
Common membership interest activity in connection with Exchanges for Class A common stock	839,658	186,701	(839,658)	(186,701)
Ending balance (in shares)	129,056,081	123,196,012	710,009	6,570,078	129,766,090	129,766,090	129,766,090	129,766,090
Percentage of Ownership, Beginning Balance	98.80%	94.80%	1.20%	5.20%
Percentage of Ownership, Ending Balance	99.50%	94.90%	0.50%	5.10%

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Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Impact of Share-Based Incentive Plans on Compensation and Benefits Expense

The following reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, PRSUs and restricted stock awards) and “professional services” expense (with respect to deferred stock units (“DSUs”)) within the Company’s accompanying condensed consolidated statements of operations:

	Three Months Ended June  30,				Six Months Ended June 30,
	2013		2012		2013		2012
Share-based incentive awards:
RSUs (a)	$	52,147	$	63,428	$	117,089	$	145,319
PRSUs		1,995		–		2,433		–
Restricted stock (b)		1,824		1,704		7,085		5,879
DSUs		1,403		1,218		1,474		1,288
Total	$	57,369	$	66,350	$	128,081	$	152,486

(a) Includes, during the three month and six month periods ended June 30, 2013, $4,644 and $9,099, respectively, relating to the Cost Saving Initiatives (see Note 14 of Notes to Condensed Consolidated Financial Statements).

(b) Includes, during the three month and six month periods ended June 30, 2013, $14 and $247, respectively, relating to the Cost Saving Initiatives.

Schedule of Issuance of RSUs and Charges to Retained Earnings

         During the six month periods ended June 30, 2013 and 2012, 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,
	2013			2012
Number of RSUs issued			131,669			310,756
Charges to retained earnings, net of estimated forfeitures		$	4,062		$	7,277

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, 2013 and 2012:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2013		21,481,131		$	33.92		204,496	$	31.47
Granted (including 131,669 RSUs relating to dividend participation)		4,689,312		$	36.95		43,231	$	34.09
Forfeited		(223,346	)	$	34.64		–		–
Vested		(8,589,999	)	$	34.99		–		–
Balance, June 30, 2013		17,357,098		$	34.20		247,727	$	31.93
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

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, 2013 and 2012:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2013		1,972,609		$	34.85
Granted		368,736		$	36.74
Forfeited		(35,183	)	$	33.29
Vested		(1,727,121	)	$	36.00
Balance, June 30, 2013		579,041		$	32.73
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

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 periods ended June 30, 2013 and 2012:

	Prepaid Compensation Asset			Compensation   Liability
Balance, January 1, 2013	$	47,445		$	97,593
Granted		72,217			72,217
Settled		–			(19,107	)
Forfeited		(685	)		(859	)
Amortization		(30,226	)		–
Change in fair value related to:
Increase in fair value of underlying investments		–			248
Adjustment for estimated forfeitures		–			2,049
Other		(396	)		(916	)
Balance, June 30, 2013	$	88,355		$	151,225

	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		(16,985	)		–
Decrease in fair value of underlying investments		–			(89	)
Other		979			833
Balance, June 30, 2012	$	65,399		$	85,641

Summary of Impact of Fund Interests and Other Similar Deferred Compensation Arrangements

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 month and six month periods ended June 30, 2013 and 2012:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Compensation expense:
Amortization, net of forfeitures (a)	$	19,052		$	10,800		$	32,101	$	16,985
Change in fair value of underlying investments		(3,477	)		(2,856	)		248		(89	)
Total	$	15,575		$	7,944		$	32,349	$	16,896

(a) Includes, during the three month and six month periods ended June 30, 2013, $1,748 and $2,665, respectively, relating to the Cost Saving Initiatives.

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Stockholders' Equity - Gains (Losses) Reclassified Out of AOCI (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Less - tax expense	$ 9,017	$ 10,371	$ 12,965	$ 19,138
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax	1,475		2,957
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Hedge [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of interest rate hedge	263		527
Reclassification out of Accumulated Other Comprehensive Income [Member] | Employee Benefit Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization expense relating to employee benefit plans	1,612		3,232
Less - tax expense	400		802
Net of tax	$ 1,212		$ 2,430

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Derivatives - Fair Value of Derivatives Reported on Consolidated Statements of Financial Condition (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Gross assets for equity and fixed income swaps	$ 6,332	$ 0
Gross liabilities for equity and fixed income swaps	11	4,342
Cash collateral pledged for equity and fixed income swaps	$ 4,574	$ 15,304

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Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Fair Value Measurements Summary Of Changes In Fair Value Of Level Three Assets [Line Items]
Beginning Balance	$ 111,984	$ 122,695	$ 116,101	$ 133,100
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	3,096	4,753	3,872	12,444
Purchases/Acquisitions	3,704	56	3,704	2,762
Sales/Dispositions	(5,939)	(6,154)	(9,452)	(28,419)
Foreign Currency Translation Adjustments	636	(2,552)	(744)	(1,089)
Ending Balance	113,481	118,798	113,481	118,798
Equities [Member]
Fair Value Measurements Summary Of Changes In Fair Value Of Level Three Assets [Line Items]
Beginning Balance	184	217	190	211
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	6	5	6	5
Purchases/Acquisitions	445		445
Sales/Dispositions		(30)		(30)
Foreign Currency Translation Adjustments	2	(11)	(4)	(5)
Ending Balance	637	181	637	181
Alternative investment funds [Member]
Fair Value Measurements Summary Of Changes In Fair Value Of Level Three Assets [Line Items]
Beginning Balance	1,304	5,915	3,457	10,171
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	34	(38)	128	89
Purchases/Acquisitions				10
Sales/Dispositions	(1,327)	(1,251)	(3,574)	(5,644)
Foreign Currency Translation Adjustments
Ending Balance	11	4,626	11	4,626
Equity Funds [Member]
Fair Value Measurements Summary Of Changes In Fair Value Of Level Three Assets [Line Items]
Beginning Balance			10
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other
Purchases/Acquisitions
Sales/Dispositions			(10)
Foreign Currency Translation Adjustments
Ending Balance
Private Equity Funds [Member]
Fair Value Measurements Summary Of Changes In Fair Value Of Level Three Assets [Line Items]
Beginning Balance	110,496	116,563	112,444	122,718
Net Unrealized/Realized Gains (Losses) Included In Revenue-Other	3,056	4,786	3,738	12,350
Purchases/Acquisitions	3,259	56	3,259	2,752
Sales/Dispositions	(4,612)	(4,873)	(5,868)	(22,745)
Foreign Currency Translation Adjustments	634	(2,541)	(740)	(1,084)
Ending Balance	$ 112,833	$ 113,991	$ 112,833	$ 113,991

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Investments - Company's Investments and Securities Sold, Not Yet Purchased (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Funds	$ 382,798	$ 356,721
Equities	51,957	44,992
Equity method	7,101	7,012
Total investments	449,364	414,673
Interest-bearing deposits	514	578
Investments, at fair value	441,749	407,083
Securities sold, not yet purchased, at fair value (included in "other liabilities")	3,263	2,755
Debt Funds [Member]
Schedule of Investments [Line Items]
Funds	48,490	32,077
Debt [Member]
Schedule of Investments [Line Items]
Funds	7,508	5,948
Alternative Investments Funds [Member]
Schedule of Investments [Line Items]
Funds	45,739	57,890
Equity Funds [Member]
Schedule of Investments [Line Items]
Funds	175,736	154,310
Private Equity Funds [Member]
Schedule of Investments [Line Items]
Funds	$ 112,833	$ 112,444

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Allowance for doubtful accounts receivables	$ 24,593	$ 23,017
Property, accumulated amortization and depreciation	232,487	225,861
Goodwill and other intangible assets, accumulated amortization	$ 37,162	$ 35,281
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	15,000,000	15,000,000
Series A Preferred Stock [Member]
Preferred stock, shares issued	7,921	7,921
Preferred stock, shares outstanding	7,921	7,921
Series B Preferred Stock [Member]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	129,056,081	128,216,423
Common stock, shares outstanding	129,056,081	128,216,423
Common stock held by subsidiaries, shares	7,159,311	12,802,938
Class B Common Stock [Member]
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

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [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 net asset value (“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 trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis, 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 non-U.S. Government and other debt securities are classified as Level 1 when their respective fair values are based on unadjusted quoted prices in active markets and are classified as Level 2 when their fair values are primarily based on prices as provided by external pricing services.

The fair value of equities is classified as Level 1 or Level 3 as follows: marketable equity securities are classified as Level 1 and are valued based on the last trade price on the primary exchange for that security as provided by external pricing services; equity securities in private companies are generally classified as Level 3.

The fair value of investments in alternative investment funds 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 external fund administrators.

The fair value of investments in debt funds is classified as Level 1 when the fair values are primarily based on the reported closing price for the fund, and classified as Level 2 when the fair values are primarily based on NAV or its equivalent and are redeemable within the near term.

The fair value of investments in equity funds is classified as Level 1, 2 or 3 as follows: publicly traded asset management funds are classified as Level 1 and are valued based on the reported closing price for the fund; investments in asset management funds redeemable in the near term are classified as Level 2 and are valued at NAV or its equivalent, which is primarily determined based on information provided by external fund administrators; and funds valued based on NAV or its equivalent that are not redeemable within the near term are classified as Level 3.

The fair value of investments in private equity funds 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 value of interest rate swaps is 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 forfeitures. See Note 6 of Notes to Condensed Consolidated Financial Statements.

Where reported information regarding an investment is based on data received from external fund administrators or pricing services, the Company reviews such information and classifies the investment at the relevant level within the fair value hierarchy.

The following tables present the classification of investments and certain other assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 within the fair value hierarchy:

	June 30, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	1,093	$	5,901	$	–	$	6,994
Equities		51,320		–		637		51,957
Funds:
Alternative investments		–		45,728		11		45,739
Debt		48,486		4		–		48,490
Equity		169,072		6,664		–		175,736
Private equity		–		–		112,833		112,833
Derivatives		–		6,947		–		6,947
Total	$	269,971	$	65,244	$	113,481	$	448,696
Liabilities:
Securities sold, not yet purchased	$	3,263	$	–	$	–	$	3,263
Derivatives		–		152,514		–		152,514
Total	$	3,263	$	152,514	$	–	$	155,777
	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Debt (excluding interest-bearing deposits)	$	1,443	$	3,927	$	–	$	5,370
Equities		44,802		–		190		44,992
Funds:
Alternative investments		–		54,433		3,457		57,890
Debt		32,073		4		–		32,077
Equity		145,231		9,069		10		154,310
Private equity		–		–		112,444		112,444
Derivatives		–		933		–		933
Total	$	223,549	$	68,366	$	116,101	$	408,016
Liabilities:
Securities sold, not yet purchased	$	2,696	$	59	$	–	$	2,755
Derivatives		–		102,492		–		102,492
Total	$	2,696	$	102,551	$	–	$	105,247

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, 2013 and 2012.

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, 2013 and 2012:

	Three Months Ended June 30, 2013
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	184	$	6	$	445	$	–		$	2		$	637
Alternative investment funds		1,304		34		–		(1,327	)		–			11
Private equity funds		110,496		3,056		3,259		(4,612	)		634			112,833
Total Level 3 Assets	$	111,984	$	3,096	$	3,704	$	(5,939	)	$	636		$	113,481
	Six Months Ended June 30, 2013
	Beginning Balance		Net  Unrealized/ Realized Gains (Losses) Included In Revenue- Other (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments			Ending Balance
Investments:
Equities	$	190	$	6	$	445	$	–		$	(4	)	$	637
Alternative investment funds		3,457		128		–		(3,574	)		–			11
Equity funds		10		–		–		(10	)		–			–
Private equity funds		112,444		3,738		3,259		(5,868	)		(740	)		112,833
Total Level 3 Assets	$	116,101	$	3,872	$	3,704	$	(9,452	)	$	(744	)	$	113,481

	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	$	217	$	5		$	–	$	(30	)	$	(11	)	$	181
Alternative investment funds		5,915		(38	)		–		(1,251	)		–			4,626
Private equity funds		116,563		4,786			56		(4,873	)		(2,541	)		113,991
Total Level 3 Assets	$	122,695	$	4,753		$	56	$	(6,154	)	$	(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	$	211	$	5		$	–	$	(30	)	$	(5	)	$	181
Alternative investment funds		10,171		89			10		(5,644	)		–			4,626
Private equity funds		122,718		12,350			2,752		(22,745	)		(1,084	)		113,991
Total Level 3 Assets	$	133,100	$	12,444		$	2,762	$	(28,419	)	$	(1,089	)	$	118,798

(a) Earnings for the three month and six month periods ended June 30, 2013 and the three month and six month periods ended June 30, 2012 include net unrealized gains of $2,657, $3,327, $3,483 and $9,563, respectively.

Fair Value of Certain Investments Based on NAV—The Company’s Level 2 and Level 3 investments at June 30, 2013 and December 31, 2012 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, 2013
					% of Fair Value Not Redeemable	Estimated Liquidation Period of Investments Not Redeemable			Investments Redeemable
	Fair Value		Unfunded Commitments			% Next 5 Years	% 5-10 Years	% Thereafter	Redemption Frequency	Redemption Notice Period
Alternative investment funds	$	45,739	$	–	NA	NA	NA	NA	(a)		<30-120 days
Debt funds		4		–	NA	NA	NA	NA	(b)		30 days
Equity funds		6,664		–	NA	NA	NA	NA	(c)		<30-90 days
Private equity funds		112,833		27,649	100%	10%	38%	52%	NA		NA
Total	$	165,240	$	27,649

Redemption frequency as follows:

(a) daily (1%), weekly (11%), monthly (54%) and quarterly (34%)

(b) daily (100%)

(c) monthly (100%)

	December 31, 2012
					% of Fair Value Not Redeemable	Estimated Liquidation Period of Investments Not Redeemable			Investments Redeemable
	Fair Value		Unfunded Commitments			% Next 5 Years	% 5-10 Years	% Thereafter	Redemption Frequency	Redemption Notice Period
Alternative investment funds	$	57,890	$	–	NA	NA	NA	NA	(a)	<30-120 days
Debt funds		4		–	NA	NA	NA	NA	(b)	30 days
Equity funds		9,079		–	2%	–%	–%	2%	(c)	30-120 days
Private equity funds		112,444		31,482	100%	13%	39%	48%	NA	NA
Total	$	179,417	$	31,482

Redemption frequency as follows:

(a) daily (10%), weekly (9%), monthly (38%) and quarterly (43%)

(b) daily (100%)

(c) daily (37%) and monthly (61%)

See Note 4 of Notes to Condensed Consolidated Financial Statements for discussion of significant investment strategies for investments valued based on NAV.

Investment Capital Funding Commitments—At June 30, 2013, the maximum unfunded commitments by the Company for capital contributions to investment funds related to (i) Corporate Partners II Limited (“CP II”), amounting to $1,940 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 $18,500, 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) COF2, amounting to $7,209, 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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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement Of Partners Capital [Abstract]
NET INCOME	$ 31,921	$ 34,162	$ 49,570	$ 63,218
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Currency translation adjustments	(18,334)	(21,083)	(30,767)	(1,954)
Amortization of interest rate hedge	263	263	527	527
Employee benefit plans:
Actuarial gain (loss) (net of tax benefit (expense) of $(84) and $1,443 for the three months ended June 30, 2013 and 2012, respectively, and $1,711 and $2,725 for the six months ended June 30, 2013 and 2012, respectively)	704	(3,457)	(2,719)	(6,054)
Adjustment for items reclassified to earnings (net of tax expense of $400 and $281 for the three months ended June 30, 2013 and 2012, respectively, and $802 and $578 for the six months ended June 30, 2013 and 2012, respectively)	1,212	826	2,430	1,641
OTHER COMPREHENSIVE LOSS, NET OF TAX	(16,155)	(23,451)	(30,529)	(5,840)
COMPREHENSIVE INCOME	15,766	10,711	19,041	57,378
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	546	2,096	2,678	6,698
COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD LTD	$ 15,220	$ 8,615	$ 16,363	$ 50,680

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Goodwill and Other Intangible Assets - Components of Goodwill and Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 348,549	$ 364,328	$ 360,993	$ 356,657
Other intangible assets (net of accumulated amortization)	26,658	28,494
Goodwill and other intangible assets, Total	$ 375,207	$ 392,822

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 601,485	$ 850,190
Deposits with banks	344,839	292,494
Cash deposited with clearing organizations and other segregated cash	60,767	65,232
Receivables (net of allowance for doubtful accounts of $24,593 and $23,017 at June 30, 2013 and December 31, 2012, respectively):
Fees	391,762	400,529
Customers and other	117,902	53,713
Related parties	15,242	23,801
Total receivables, net	524,906	478,043
Investments	449,364	414,673
Property (net of accumulated amortization and depreciation of $232,487 and $225,861 at June 30, 2013 and December 31, 2012, respectively)	241,949	225,033
Goodwill and other intangible assets (net of accumulated amortization of $37,162 and $35,281 at June 30, 2013 and December 31, 2012, respectively)	375,207	392,822
Other assets	322,712	268,406
Total Assets	2,921,229	2,986,893
Liabilities:
Deposits and other customer payables	385,985	269,763
Accrued compensation and benefits	336,194	467,578
Senior debt	1,076,850	1,076,850
Capital lease obligations	16,168	17,863
Related party payables	4,759	3,648
Other liabilities	509,062	499,651
Total Liabilities	2,329,018	2,335,353
Commitments and contingencies
Common stock:
Additional paid-in-capital	659,365	846,050
Retained earnings	193,958	182,647
Accumulated other comprehensive loss, net of tax	(141,489)	(110,541)
Stockholders' equity subtotal before common stock held by subsidiary and Noncontrolling interests, total	713,124	919,438
Total Lazard Ltd Stockholders' Equity	518,084	569,656
Noncontrolling interests	74,127	81,884
Total Stockholders' Equity	592,211	651,540
Total Liabilities and Stockholders' Equity	2,921,229	2,986,893
Series A Preferred Stock [Member]
Preferred stock, par value $.01 per share; 15,000,000 shares authorized:
Preferred stock
Series B Preferred Stock [Member]
Preferred stock, par value $.01 per share; 15,000,000 shares authorized:
Preferred stock
Class A Common Stock [Member]
Common stock:
Common stock	1,290	1,282
Class A common stock held by subsidiaries, at cost	(195,040)	(349,782)
Class B Common Stock [Member]
Common stock:
Common stock

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Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Fair Value Disclosures [Abstract]
Net unrealized gains	$ 2,657	$ 3,483	$ 3,327	$ 9,563

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Incentive Plans - Summary of Activity Related to Shares of Restricted Class A Common Stock (Detail) (Restricted Stock [Member], USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units, Beginning Balance	1,972,609	95,332
Units, Granted/Exchanged	368,736	577,323
Units, Forfeited	(35,183)	(18,921)
Units, Vested	(1,727,121)	(131,743)
Units, Ending Balance	579,041	521,991
Weighted Average Grant Date Fair Value, Beginning Balance	$ 34.85	$ 37.63
Weighted Average Grant Date Fair Value, Granted/Exchanged	$ 36.74	$ 29.25
Weighted Average Grant Date Fair Value, Forfeited	$ 33.29	$ 29.51
Weighted Average Grant Date Fair Value, Vested	$ 36.00	$ 28.63
Weighted Average Grant Date Fair Value, Ending Balance	$ 32.73	$ 30.93

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Incentive Plans - Summary of Impact of Share-Based Incentive Plans on Compensation and Benefits Expense (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Staff reductions and Cost Saving Initiatives	$ 14	$ 247
RSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Staff reductions and Cost Saving Initiatives	$ 4,644	$ 9,099

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Organization and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Organization

Organization

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

Lazard Ltd indirectly held approximately 99.5% and 98.8% of all outstanding Lazard Group common membership interests as of June 30, 2013 and December 31, 2012, 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 0.5% and 1.2% of the outstanding Lazard Group common membership interests as of June 30, 2013 and December 31, 2012, 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 0.5% and 1.2% of the voting power but no economic rights in the Company as of June 30, 2013 and December 31, 2012, respectively. 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 global investment solutions and investment management services in equity and fixed income strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.

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

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, and asset-liability management.

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard Ltd have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Ltd’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “Form 10-K”). The accompanying December 31, 2012 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an assumed annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates.

The consolidated results of operations for the three month and six month periods ended June 30, 2013 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 such entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of earnings or losses of the entity. Intercompany transactions and balances have been eliminated.

Offsetting (Netting) Assets and Liabilities

Offsetting (Netting) Assets and Liabilities—In the first quarter of 2013, the Company adopted the new disclosure requirements issued by the Financial Accounting Standards Board (the “FASB”) regarding the nature of an entity’s rights of setoff and related arrangements associated with its financial instruments, including derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either (i) offset or (ii) subject to an enforceable master netting arrangement. The new disclosures are designed to make financial statements prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards (“IFRS”) and will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013, with retrospective application required. The adoption of the new disclosure requirements did not have a material impact on the Company’s consolidated financial statements.

Reclassifications out of Accumulated Other Comprehensive Income

Reclassifications Out of Accumulated Other Comprehensive Income—In the first quarter of 2013, the Company adopted the FASB’s amended guidance regarding the presentation of amounts reclassified out of accumulated other comprehensive income. The amendment required that the amounts reclassified out of accumulated other comprehensive income be presented by component and disclosed where the respective line item was reported in the consolidated statement of operations. The amendment was to be applied prospectively, and is effective with interim and annual periods beginning after December 15, 2012, with early adoption permitted. The adoption of the amended guidance did not have a material impact on the Company’s consolidated financial statements.

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Cost Saving Initiatives

6 Months Ended

Jun. 30, 2013

Restructuring And Related Activities [Abstract]

Cost Saving Initiatives

14. COST SAVING INITIATIVES

In October 2012, the Company announced cost saving initiatives (the “Cost Saving Initiatives”) relating to the Company’s operations. These initiatives include streamlining our corporate structure and consolidating support functions; realigning our investments into areas with potential for the greatest long-term return; the settlement of certain contractual obligations; occupancy cost reduction; and creating greater flexibility to retain and attract the best people and invest in new growth areas.

In connection with the Cost Saving Initiatives, the Company incurred pre-tax implementation expense, by segment, as reflected in the tables below:

	Financial Advisory		Asset Management		Corporate		Total
Three Month Period Ended June 30, 2013:
Compensation and benefits	$	25,352	$	–	$	1,376	$	26,728
Other		412		–		11,241		11,653
Total	$	25,764	$	–	$	12,617	$	38,381

	Financial Advisory		Asset Management			Corporate		Total
Six Month Period Ended June 30, 2013:
Compensation and benefits	$	45,746	$	236		$	5,417	$	51,399
Other		2,033		(1	)		11,272		13,304
Total	$	47,779	$	235		$	16,689	$	64,703

	Financial Advisory		Asset Management		Corporate		Total
Cumulative Through June 30, 2013:
Compensation and benefits	$	121,879	$	12,292	$	17,215	$	151,386
Other		3,432		732		11,729		15,893
Total	$	125,311	$	13,024	$	28,944	$	167,279

Expenses associated with the implementation of the Cost Saving Initiatives were completed during the second quarter of 2013.

Activity related to the obligations pursuant to the Cost Saving Initiatives during the six month period ended June 30, 2013 was as follows:

	Accrued Compensation and Benefits			Other Liabilities			Total
Balance, January 1, 2013	$	46,128		$	1,714		$	47,842
New charges		51,399			13,304			64,703
Less:
Non-cash charges		(12,007	)		(3,022	)		(15,029	)
Settlements		(40,031	)		(1,162	)		(41,193	)
Balance, June 30, 2013	$	45,489		$	10,834		$	56,323

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Receivables - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Receivables, Net [Line Items]
Allowance for doubtful accounts receivables	$ 24,593		$ 24,593		$ 23,017
Bad debt expense, (recoveries)	1,694	(133)	1,842	1,148
Charge-offs, foreign currency translation and other adjustments	94	(283)	(266)	158
Interest-bearing financing fee receivables	74,632		74,632		76,481
Aggregate carrying amount of non-interest bearing receivables	450,274		450,274		401,562
Trade Receivables [Member]
Receivables, Net [Line Items]
Allowance for doubtful accounts receivables	24,593		24,593		23,017
Receivables past due or deemed uncollectible	27,831		27,831		25,604
Financing Receivables [Member]
Receivables, Net [Line Items]
Allowance for doubtful accounts receivables	$ 0		$ 0		$ 0

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Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Detail) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units, Beginning Balance	21,481,131	20,751,829
Units, Granted	4,689,312	7,847,541
Units, Forfeited	(223,346)	(311,601)
Units, Vested	(8,589,999)	(3,631,932)
Units, Ending Balance	17,357,098	24,655,837
Weighted Average Grant Date Fair Value, Beginning Balance	$ 33.92	$ 36.84
Weighted Average Grant Date Fair Value, Granted	$ 36.95	$ 27.51
Weighted Average Grant Date Fair Value, Forfeited	$ 34.64	$ 35.46
Weighted Average Grant Date Fair Value, Vested	$ 34.99	$ 33.83
Weighted Average Grant Date Fair Value, Ending Balance	$ 34.20	$ 34.32
DSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units, Beginning Balance	204,496	140,660
Units, Granted	43,231	55,224
Units, Forfeited
Units, Vested
Units, Ending Balance	247,727	195,884
Weighted Average Grant Date Fair Value, Beginning Balance	$ 31.47	$ 34.83
Weighted Average Grant Date Fair Value, Granted	$ 34.09	$ 23.32
Weighted Average Grant Date Fair Value, Forfeited
Weighted Average Grant Date Fair Value, Vested
Weighted Average Grant Date Fair Value, Ending Balance	$ 31.93	$ 31.58

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Derivatives - Fair Value of Derivatives Reported on Consolidated Statements of Financial Condition (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 6,947	$ 933
Derivative Liabilities	152,514	102,492
Forward Foreign Currency Exchange Rate Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	626	893
Derivative Liabilities	1,289	322
Equity and Fixed Income Swaps and Other [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	6,321	40
Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities		235
Equity and Fixed Income Swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities		4,342
Lazard Fund Interests and Other Similar Deferred Compensation Arrangements [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 151,225	$ 97,593

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Senior Debt - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Sep. 25, 2012
Debt Instrument [Line Items]
Senior revolving credit facility over next 3 years			$ 150,000
Duration of senior revolving credit facility, in years			3 years
Outstanding credit facility	0	0
Unused lines of credit available	262,000
Fair value of senior debt	1,180,000	1,207,000
Senior Debt [Member]
Debt Instrument [Line Items]
Fair value of senior debt in excess of the aggregate carrying amount	103,000	130,000
LFB [Member]
Debt Instrument [Line Items]
Unused lines of credit available	52,000
Edgewater [Member]
Debt Instrument [Line Items]
Unused lines of credit available	$ 55,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Expiration date of credit facility	Sep. 25, 2015
Revolving credit facility annual interest rate	0.84%

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Cost Saving Initiatives (Tables)

6 Months Ended

Jun. 30, 2013

Restructuring And Related Activities [Abstract]

Schedule of Pre-Tax Implementation Expense and Cumulative Expenses

In connection with the Cost Saving Initiatives, the Company incurred pre-tax implementation expense, by segment, as reflected in the tables below:

	Financial Advisory		Asset Management		Corporate		Total
Three Month Period Ended June 30, 2013:
Compensation and benefits	$	25,352	$	–	$	1,376	$	26,728
Other		412		–		11,241		11,653
Total	$	25,764	$	–	$	12,617	$	38,381

	Financial Advisory		Asset Management			Corporate		Total
Six Month Period Ended June 30, 2013:
Compensation and benefits	$	45,746	$	236		$	5,417	$	51,399
Other		2,033		(1	)		11,272		13,304
Total	$	47,779	$	235		$	16,689	$	64,703

	Financial Advisory		Asset Management		Corporate		Total
Cumulative Through June 30, 2013:
Compensation and benefits	$	121,879	$	12,292	$	17,215	$	151,386
Other		3,432		732		11,729		15,893
Total	$	125,311	$	13,024	$	28,944	$	167,279

Activity Related to Obligations Pursuant to Cost Saving Initiatives

Activity related to the obligations pursuant to the Cost Saving Initiatives during the six month period ended June 30, 2013 was as follows:

	Accrued Compensation and Benefits			Other Liabilities			Total
Balance, January 1, 2013	$	46,128		$	1,714		$	47,842
New charges		51,399			13,304			64,703
Less:
Non-cash charges		(12,007	)		(3,022	)		(15,029	)
Settlements		(40,031	)		(1,162	)		(41,193	)
Balance, June 30, 2013	$	45,489		$	10,834		$	56,323

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Senior Debt (Tables)

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Senior Debt

Senior debt was comprised of the following as of June 30, 2013 and December 31, 2012:

	Initial Principal Amount		Maturity Date		Annual Interest Rate			Outstanding As Of
								June 30, 2013		December 31, 2012
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		9/25/15		0.84	%		–		–
Total								$	1,076,850	$	1,076,850

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Lazard Group Distributed Amounts to LAZ-MD Holdings and Subsidiaries of Lazard Ltd

During the six month periods ended June 30, 2013 and 2012, 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,
	2013		2012
LAZ-MD Holdings	$	387	$	2,416
Subsidiaries of Lazard Ltd		30,338		43,011
	$	30,725	$	45,427

Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The table below reflects the components of AOCI at June 30, 2013 and activity during the six month period then ended:

	Currency Translation Adjustments			Interest Rate Hedge			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2013	$	19,405		($	2,502	)	($	128,536	)	($	111,633	)	($	1,092	)	($	110,541	)
Activity January 1 to June 30, 2013:
Other comprehensive gain (loss) before reclassifications		(30,767	)		–			(2,719	)		(33,486	)		403			(33,889	)
Adjustments for items reclassified to earnings, net of tax		–			527			2,430			2,957			16			2,941
Net other comprehensive income (loss)		(30,767	)		527			(289	)		(30,529	)		419			(30,948	)
Balance, June 30, 2013	$	(11,362	)	$	(1,975	)	$	(128,825	)	$	(142,162	)	$	(673	)	$	(141,489	)

Gains (Losses) Reclassified Out of AOCI

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and six month periods ended June 30, 2013:

	Three Months Ended June 30,			Six Months Ended June 30,
	2013			2013
Amortization of interest rate hedge	$	263	(a)	$	527	(a)
Amortization expense relating to employee benefit plans		1,612	(b)		3,232	(b)
Less - tax expense		400			802
Net of tax		1,212			2,430
Total reclassifications, net of tax	$	1,475		$	2,957

(a) Included in “interest expense” on the condensed consolidated statements of operations.

(b) Included in the computation of net periodic benefit cost (see Note 13 of Notes to Condensed Consolidated Financial Statements). Such amount is included in “compensation and benefits” expense on the condensed consolidated statement of operations.

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, 2013 and 2012:

	Lazard Ltd					LAZ-MD Holdings						Total Lazard Group Common Membership Interests
	Common Membership Interests		% Ownership			Common Membership Interests			% Ownership
Balance, January 1, 2012		123,009,311		94.8	%		6,756,779			5.2	%		129,766,090
Activity January 1 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
Balance, January 1, 2013		128,216,423		98.8	%		1,549,667			1.2	%		129,766,090
Activity January 1 to June 30, 2013:
Common membership interest activity in connection with:
Exchanges for Class A common stock		839,658					(839,658	)					–
Balance, June 30, 2013		129,056,081		99.5	%		710,009			0.5	%		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, 2013 and 2012 and noncontrolling interests as of June 30, 2013 and December 31, 2012 in the Company’s condensed consolidated financial statements:

	Net Income (Loss) Attributable To Noncontrolling Interests
	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Edgewater	$	287		$	1,698		$	2,653		$	3,872
LAZ-MD Holdings		305			1,694			497			3,019
Other		(24	)		(51	)		(293	)		(46	)
Total	$	568		$	3,341		$	2,857		$	6,845

	Noncontrolling Interests As Of
	June 30, 2013		December 31, 2012
Edgewater	$	71,020	$	75,262
LAZ-MD Holdings		2,248		5,405
Other		859		1,217
Total	$	74,127	$	81,884

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Investments

6 Months Ended

Jun. 30, 2013

Investments Schedule [Abstract]

Investments

4. INVESTMENTS

The Company’s investments and securities sold, not yet purchased, consisted of the following at June 30, 2013 and December 31, 2012:

	June 30, 2013		December 31, 2012
Debt (including interest-bearing deposits of $514 and $578, respectively)	$	7,508	$	5,948
Equities		51,957		44,992
Funds:
Alternative investments (a)		45,739		57,890
Debt (a)		48,490		32,077
Equity (a)		175,736		154,310
Private equity		112,833		112,444
		382,798		356,721
Equity method		7,101		7,012
Total investments		449,364		414,673
Less:
Interest-bearing deposits		514		578
Equity method		7,101		7,012
Investments, at fair value	$	441,749	$	407,083
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	3,263	$	2,755

(a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $7,631, $31,013 and $121,408, respectively, at June 30, 2013 and $5,054, $18,615 and $76,907, respectively, at December 31, 2012, 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 12 of Notes to Condensed Consolidated Financial Statements).

Debt securities primarily consist of seed investments invested in debt securities held within separately managed accounts related to our Asset Management business and non-U.S. government debt securities.

Equities primarily consist of seed investments invested in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts related to our Asset Management business.

Interests in alternative investment funds primarily consist of interests in various Lazard-managed hedge funds and fund of funds.

Debt funds primarily consist of seed investments in funds related to our Asset Management business, which invest in debt securities, and amounts related to Lazard Fund Interests discussed above.

Equity funds primarily consist of seed investments in funds related to our Asset Management business, which are invested in equity securities, and amounts related 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) a fund targeting significant noncontrolling-stake investments in established private companies, (iii) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies and (iv) Lazard Australia Corporate Opportunities Fund 2 (“COF2”), a Lazard-managed Australian fund targeting Australasian mid-market investments.

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 totaled $9,685 and $11,490 at June 30, 2013 and December 31, 2012, respectively (see Note 10 of Notes to Condensed Consolidated Financial Statements).

During the three month and six month periods ended June 30, 2013 and 2012, the Company reported in revenue-other on its condensed consolidated statements of operations gross unrealized investment gains and losses pertaining to “trading” securities as follows (including, for the three month and six month periods ended June 30, 2012, restated amounts pertaining to certain non-broker dealer subsidiaries):

	Three Month Period Ended June 30,				Six Month Period Ended June 30,
	2013		2012		2013		2012
Gross unrealized investment gains	$	–	$	373	$	3,748	$	9,623
Gross unrealized investment losses	$	9,547	$	8,324	$	6,536	$	2,346

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Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
2013	$ 6,761
2014	8,278
2015	6,438
2016	5,181
Total amortization expense	$ 26,658

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Related Parties - Amounts Receivable from and Payable to Related Parties (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Related Party Transaction [Line Items]
Amounts receivables from related parties	$ 15,242	$ 23,801
Amounts payables to related parties	4,759	3,648
LFCM Holdings [Member]
Related Party Transaction [Line Items]
Amounts receivables from related parties	14,232	20,529
Amounts payables to related parties	4,749	2,943
Other [Member]
Related Party Transaction [Line Items]
Amounts receivables from related parties	1,010	3,272
Amounts payables to related parties	$ 10	$ 705

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Investments (Tables)

6 Months Ended

Jun. 30, 2013

Investments Schedule [Abstract]

Company's Investments and Securities Sold, Not Yet Purchased

The Company’s investments and securities sold, not yet purchased, consisted of the following at June 30, 2013 and December 31, 2012:

	June 30, 2013		December 31, 2012
Debt (including interest-bearing deposits of $514 and $578, respectively)	$	7,508	$	5,948
Equities		51,957		44,992
Funds:
Alternative investments (a)		45,739		57,890
Debt (a)		48,490		32,077
Equity (a)		175,736		154,310
Private equity		112,833		112,444
		382,798		356,721
Equity method		7,101		7,012
Total investments		449,364		414,673
Less:
Interest-bearing deposits		514		578
Equity method		7,101		7,012
Investments, at fair value	$	441,749	$	407,083
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	3,263	$	2,755

(a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $7,631, $31,013 and $121,408, respectively, at June 30, 2013 and $5,054, $18,615 and $76,907, respectively, at December 31, 2012, 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 12 of Notes to Condensed Consolidated Financial Statements).

Schedule of Trading Securities Gross Unrealized Investment Gains and Losses

During the three month and six month periods ended June 30, 2013 and 2012, the Company reported in revenue-other on its condensed consolidated statements of operations gross unrealized investment gains and losses pertaining to “trading” securities as follows (including, for the three month and six month periods ended June 30, 2012, restated amounts pertaining to certain non-broker dealer subsidiaries):

	Three Month Period Ended June 30,				Six Month Period Ended June 30,
	2013		2012		2013		2012
Gross unrealized investment gains	$	–	$	373	$	3,748	$	9,623
Gross unrealized investment losses	$	9,547	$	8,324	$	6,536	$	2,346

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets

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,
		2013(a)			2012			2013(a)			2012
Financial Advisory	Net Revenue	$	263,307		$	242,624		$	431,769		$	519,820
	Operating Expenses		239,766			231,200			456,674			481,097
	Operating Income (Loss)	$	23,541		$	11,424		$	(24,905	)	$	38,723
Asset Management	Net Revenue	$	245,499		$	211,053		$	489,524		$	425,580
	Operating Expenses		187,554			156,619			342,631			317,120
	Operating Income	$	57,945		$	54,434		$	146,893		$	108,460
Corporate	Net Revenue (Expense)	$	(18,401	)	$	(16,767	)	$	(28,985	)	$	(22,451	)
	Operating Expenses		22,147			4,558			30,468			42,376
	Operating Income (Loss)	$	(40,548	)	$	(21,325	)	$	(59,453	)	$	(64,827	)
Total	Net Revenue	$	490,405		$	436,910		$	892,308		$	922,949
	Operating Expenses		449,467			392,377			829,773			840,593
	Operating Income	$	40,938		$	44,533		$	62,535		$	82,356

(a) See Note 14 of Notes to Condensed Consolidated Financial Statements for information regarding the Cost Saving Initiatives, and the impact on each of the Company’s business segments during the three month and six month periods ended June 30, 2013.

	As Of
	June 30, 2013		December 31, 2012
Total Assets
Financial Advisory	$	722,702	$	793,007
Asset Management		539,662		566,677
Corporate		1,658,865		1,627,209
Total	$	2,921,229	$	2,986,893

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Property

6 Months Ended

Jun. 30, 2013

Property Plant And Equipment [Abstract]

Property

7. PROPERTY

At June 30, 2013 and December 31, 2012, property consisted of the following:

	Estimated Depreciable Life in Years		June 30, 2013		December 31, 2012
Buildings		33	$	165,106	$	166,560
Leasehold improvements		3-20		156,915		143,408
Furniture and equipment		3-10		135,769		122,125
Construction in progress				16,646		18,801
Total				474,436		450,894
Less - accumulated depreciation and amortization				232,487		225,861
Property			$	241,949	$	225,033

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Regulatory Authorities - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
LFNY [Member]
Regulatory Authorities [Line Items]
Specified fixed percentage, minimum required capital	6.67%
Minimum net capital requirement as defined under securities exchange act	$ 100
Regulatory net capital	128,583
Regulatory capital in excess of minimum requirement	124,897
U.K. Subsidiaries [Member]
Regulatory Authorities [Line Items]
Regulatory net capital	74,781
Regulatory capital in excess of minimum requirement	54,858
CFLF [Member]
Regulatory Authorities [Line Items]
Regulatory net capital	185,983
Regulatory capital in excess of minimum requirement	154,183
Other U.S. and Non-U.S. Subsidiaries [Member]
Regulatory Authorities [Line Items]
Regulatory net capital	103,267
Regulatory capital in excess of minimum requirement	$ 76,657

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Incentive Plans - Summary of Impact of Share-Based Incentive Plans on Compensation and Benefits Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Share-based incentive awards:
Share-based incentive awards	$ 57,369	$ 66,350	$ 128,081	$ 152,486
RSUs [Member]
Share-based incentive awards:
Share-based incentive awards	52,147	63,428	117,089	145,319
PRSUs [Member]
Share-based incentive awards:
Share-based incentive awards	1,995		2,433
Restricted Stock [Member]
Share-based incentive awards:
Share-based incentive awards	1,824	1,704	7,085	5,879
DSUs [Member]
Share-based incentive awards:
Share-based incentive awards	$ 1,403	$ 1,218	$ 1,474	$ 1,288

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Receivables

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Receivables

3. RECEIVABLES

The Company’s receivables represent receivables from fees, customers and other and related parties.

Receivables are stated net of an estimated allowance for doubtful accounts of $24,593 and $23,017 at June 30, 2013 and December 31, 2012, respectively, for past due amounts and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute. The Company recorded bad debt expense (recoveries) of $1,694 and $1,842 for the three month and six month periods ended June 30, 2013, respectively, and $(133) and $1,148 for the three month and six month periods ended June 30, 2012, 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 $94 and $(266) for the three month and six month periods ended June 30, 2013, respectively, and $(283) and $158 for the three month and six month periods ended June 30, 2012, respectively. At June 30, 2013 and December 31, 2012, the Company had receivables past due or deemed uncollectible of $27,831 and $25,604, respectively.

Of the Company’s total receivables at June 30, 2013 and December 31, 2012, $74,632 and $76,481, respectively, represented interest-bearing financing fee receivables. Based upon our historical loss experience, the credit quality of the counterparties, and the lack of past due or uncollectible amounts, there was no allowance for doubtful accounts required at those dates related to such receivables.

The aggregate carrying amount of our non-interest bearing receivables of $450,274 and $401,562 at June 30, 2013 and December 31, 2012, respectively, approximates fair value.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 49,570	$ 63,218
Noncash items included in net income:
Depreciation and amortization of property	16,593	14,800
Amortization of deferred expenses, share-based incentive compensation and interest rate hedge	166,905	173,083
Amortization of intangible assets related to acquisitions	1,881	3,678
(Increase) decrease in operating assets:
Deposits with banks	(55,064)	(47,391)
Cash deposited with clearing organizations and other segregated cash	3,242	(4,583)
Receivables-net	(54,872)	17,417
Investments	(37,502)	(58,317)
Other assets	(91,386)	(59,656)
Increase (decrease) in operating liabilities:
Deposits and other payables	120,637	60,091
Accrued compensation and benefits and other liabilities	(106,446)	(127,851)
Net cash provided by operating activities	13,558	34,489
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property	(41,347)	(48,941)
Disposals of property	5,739	2,053
Net cash used in investing activities	(35,608)	(46,888)
Proceeds from:
Contribution from noncontrolling interests	324	784
Excess tax benefits from share-based incentive compensation	2,211
Other financing activities	0	10
Payments for:
Capital lease obligations	(1,542)	(1,336)
Distributions to noncontrolling interests	(7,605)	(13,462)
Purchase of Class A common stock	(50,447)	(152,413)
Class A common stock dividends	(30,338)	(43,011)
Settlement of vested share-based incentive compensation	(119,782)	(29,421)
Other financing activities	(103)	(59)
Net cash used in financing activities	(207,282)	(238,908)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(19,373)	(1,246)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(248,705)	(252,553)
CASH AND CASH EQUIVALENTS-January 1	850,190	1,003,791
CASH AND CASH EQUIVALENTS-June 30	$ 601,485	$ 751,238

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Related Parties - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended										3 Months Ended		6 Months Ended
	Jun. 30, 2013 LFCM Holdings [Member]	Jun. 30, 2012 LFCM Holdings [Member]	Jun. 30, 2013 LFCM Holdings [Member]	Jun. 30, 2012 LFCM Holdings [Member]	Jun. 30, 2013 LFCM Holdings [Member] Administrative and Support Services and Others [Member]	Dec. 31, 2012 LFCM Holdings [Member] Administrative and Support Services and Others [Member]	Jun. 30, 2013 LFCM Holdings [Member] Referral Fees for Underwriting and Private Placement Transactions [Member]	Dec. 31, 2012 LFCM Holdings [Member] Referral Fees for Underwriting and Private Placement Transactions [Member]	Jun. 30, 2013 LFCM Holdings [Member] Advances and Referral Fees [Member]	Dec. 31, 2012 LFCM Holdings [Member] Advances and Referral Fees [Member]	Jun. 30, 2013 MBA Lazard Holdings S.A. [Member]	Dec. 31, 2012 MBA Lazard Holdings S.A. [Member]	Jun. 30, 2013 LAZ-MD Holdings [Member] Administrative Services Agreement [Member]	Jun. 30, 2012 LAZ-MD Holdings [Member] Administrative Services Agreement [Member]	Jun. 30, 2013 LAZ-MD Holdings [Member] Administrative Services Agreement [Member]	Jun. 30, 2012 LAZ-MD Holdings [Member] Administrative Services Agreement [Member]
Related Party Transaction [Line Items]
Amounts recorded relating to the administrative services agreement	$ 300	$ 702	$ 932	$ 1,515									$ 250	$ 187	$ 500	$ 375
Amounts recorded relating to net referral fees for underwriting, private placement, and restructuring transactions	(970)	3,552	(470)	4,366
Receivables from related party					8,568	14,299	5,664	6,230
Payables to related party									$ 4,749	$ 2,943
Percentage of ownership											50.00%	50.00%

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Fair Value Measurements - Fair Value of Certain Investments Based on NAV (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 165,240	$ 179,417
Unfunded Commitments	27,649	31,482
Alternative investment funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	45,739	57,890
Alternative investment funds [Member] | Daily [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Frequency	daily (1%)	daily (10%)
Alternative investment funds [Member] | Weekly [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Frequency	weekly (11%)	weekly (9%)
Alternative investment funds [Member] | Monthly [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Frequency	monthly (54%)	monthly (38%)
Alternative investment funds [Member] | Quarterly [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Frequency	quarterly (34%)	quarterly (43%)
Alternative investment funds [Member] | Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	30 days	30 days
Alternative investment funds [Member] | Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	120 days	120 days
Debt Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	30 days	30 days
Fair Value	4	4
Debt Funds [Member] | Daily [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Frequency	daily (100%)	daily (100%)
Equity Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	6,664	9,079
% of Fair Value Not Redeemable		2.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter		2.00%
Equity Funds [Member] | Daily [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Frequency		daily (37%)
Equity Funds [Member] | Monthly [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Frequency	monthly (100%)	monthly (61%)
Equity Funds [Member] | Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	30 days	30 days
Equity Funds [Member] | Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	90 days	120 days
Private Equity Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	112,833	112,444
Unfunded Commitments	$ 27,649	$ 31,482
% of Fair Value Not Redeemable	100.00%	100.00%
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years	10.00%	13.00%
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years	38.00%	39.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter	52.00%	48.00%

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Investments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule Of Investments [Abstract]
Economic interests that are owned by management team and other investors in the Edgewater Funds	$ 9,685	$ 11,490

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Incentive Plans - Summary of Impact of Fund Interests and Other Similar Deferred Compensation Arrangements (Parenthetical) (Detail) (Lazard Fund Interests and other similar deferred compensation arrangements [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Lazard Fund Interests and other similar deferred compensation arrangements [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Staff reductions and Cost Saving Initiatives	$ 1,748	$ 2,665

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Property (Tables)

6 Months Ended

Jun. 30, 2013

Property Plant And Equipment [Abstract]

Property-Net

At June 30, 2013 and December 31, 2012, property consisted of the following: 

	Estimated Depreciable Life in Years		June 30, 2013		December 31, 2012
Buildings		33	$	165,106	$	166,560
Leasehold improvements		3-20		156,915		143,408
Furniture and equipment		3-10		135,769		122,125
Construction in progress				16,646		18,801
Total				474,436		450,894
Less - accumulated depreciation and amortization				232,487		225,861
Property			$	241,949	$	225,033

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Incentive Plans - Summary of Impact of Fund Interests and Other Similar Deferred Compensation Arrangements (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Compensation expense:
Amortization, net of forfeitures	$ 19,052	$ 10,800	$ 32,101	$ 16,985
Change in fair value of underlying investments	(3,477)	(2,856)	248	(89)
Total	$ 15,575	$ 7,944	$ 32,349	$ 16,896

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Net Income Per Share of Class A Common Stock - Company's Basic and Diluted Net Income Per Share and Weighted Average Shares Outstanding (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share Basic And Diluted [Line Items]
Net income attributable to Lazard Ltd	$ 31,353	$ 30,821	$ 46,713	$ 56,373
Net income attributable to Lazard Ltd - basic	31,353	30,823	46,713	56,375
Weighted average number of shares of Class A common stock outstanding - basic	121,759,982	118,235,320	119,734,093	118,732,431
Weighted average number of shares of Class A common stock outstanding - diluted	132,464,296	134,636,935	132,639,928	135,615,557
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic	$ 0.26	$ 0.26	$ 0.39	$ 0.47
Diluted	$ 0.24	$ 0.24	$ 0.36	$ 0.44
Class A Common Stock [Member]
Earnings Per Share Basic And Diluted [Line Items]
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis	0	2	0	2
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 and exchangeable interests, net of tax	289	1,686	471	2,876
Net income attributable to Lazard Ltd - diluted	$ 31,642	$ 32,509	$ 47,184	$ 59,251
Weighted average number of shares of Class A common stock outstanding	121,028,696	117,478,380	118,975,340	118,079,120
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis	731,286	756,940	758,753	653,311
Weighted average number of shares of Class A common stock outstanding - basic	121,759,982	118,235,320	119,734,093	118,732,431
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation and exchangeable interests	10,704,314	16,401,615	12,905,835	16,883,126
Weighted average number of shares of Class A common stock outstanding - diluted	132,464,296	134,636,935	132,639,928	135,615,557
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic	$ 0.26	$ 0.26	$ 0.39	$ 0.47
Diluted	$ 0.24	$ 0.24	$ 0.36	$ 0.44

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Commitments and Contingencies - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	6 Months Ended	12 Months Ended
	Jul. 15, 2009	Jun. 30, 2013	Dec. 31, 2012
Contingencies And Commitments [Line Items]
Guarantees indemnifications		$ 4,679
Collateral/counter-guarantees		3,837
Aggregate fair value of consideration recognized by the company at acquisition date	61,624
Earnout shares earned		1,371,992	1,209,154
Earnout shares became settled		0	686,004
Maximum earn-out consideration payable over all years		$ 7,000	$ 7,000
Initial Shares [Member]
Contingencies And Commitments [Line Items]
Initial shares issued at acquisition	1,142,857
Shares Issued And Subject To Earnout Criteria [Member]
Contingencies And Commitments [Line Items]
Initial shares issued at acquisition	1,142,857
Class A Common Stock [Member]
Contingencies And Commitments [Line Items]
Common stock issuable on contingent basis		107,617
Common stock issuable on non-contingent basis			170,988
Class A Common Stock [Member] | Maximum [Member]
Contingencies And Commitments [Line Items]
Common stock issuable on contingent basis		202,650	202,650

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Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]
Goodwill	$ 348,549	$ 360,993	$ 348,549	$ 360,993	$ 364,328	$ 356,657
Amortization expense of intangible assets	1,004	2,560	1,881	3,678
Financial Advisory Segment [Member]
Goodwill [Line Items]
Goodwill	284,008		284,008		299,787
Asset Management Segment [Member]
Goodwill [Line Items]
Goodwill	$ 64,541		$ 64,541		$ 64,541

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Employee Benefit Plans - Additional Information (Detail)			6 Months Ended			12 Months Ended		6 Months Ended
	Jun. 30, 2013 USD ($)	Dec. 31, 2012 USD ($)	Jun. 30, 2013 Other Non-U.S. Pension Plans [Member] USD ($)	Jun. 30, 2013 U.K. pension plans [Member] USD ($)	Jun. 30, 2013 U.K. pension plans [Member] GBP (£)	Dec. 31, 2011 U.K. pension plans [Member] USD ($)	Dec. 31, 2011 U.K. pension plans [Member] GBP (£)	Jun. 30, 2013 U.S. Pension Plans [Member] USD ($)	Jun. 30, 2013 Payments from 2014 through 2020 [Member] GBP (£)	Jun. 30, 2013 Payments from 2012 through 2020 [Member] GBP (£)
Defined Benefit Plan Disclosure [Line Items]
Contribution related to the pension plan						$ 3,687,000	£ 2,300,000	$ 0
Additional contribution to plan assets or escrow account									1,000,000	1,000,000
Amended amount from previous escrow arrangement							10,200,000
Aggregate amount in account security arrangement	15,600,000	16,500,000
Company contribution to pension plans			$ 0	$ 1,543,000	£ 1,000,000

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. COMMITMENTS AND CONTINGENCIES

Leases—The Company has various leases and other contractual commitments arising in the ordinary course of business. 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, 2013, LFB had $4,679 of such indemnifications and held $3,837 of collateral/counter-guarantees to secure these commitments. The Company believes the likelihood of loss with respect to these indemnities is remote. Accordingly, no liability is recorded in the condensed consolidated statement of financial condition.

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

The aggregate fair value of the consideration recognized by the Company at the acquisition date was $61,624. Such consideration consisted of (i) a one-time cash payment, (ii) 1,142,857 shares of Class A common stock (the “Initial Shares”) and (iii) up to 1,142,857 additional shares of Class A common stock (the “Earnout Shares”) that are subject to earnout criteria and payable over time. 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. As of June 30, 2013 and December 31, 2012, 1,371,992 and 1,209,154 shares, respectively, have been earned because applicable performance thresholds have been satisfied. Such shares are no longer subject to any contingencies. As of December 31, 2012, 686,004 of such shares have been settled, and no additional shares have been settled as of June 30, 2013.

Consideration Relating To Other Business Acquisitions—For a business acquired in 2013, the Company is obligated to issue a maximum of 107,617 shares of Class A common stock if certain performance thresholds are achieved.

For a business acquired in 2012, at December 31, 2012, 170,988 shares of Class A common stock (including dividend equivalent shares) were issuable on a non-contingent basis. Such shares were delivered in the first quarter of 2013. The Company is obligated to issue a maximum of 202,650 additional shares of Class A common stock if certain performance thresholds are achieved.

For a business acquired in 2011, the Company is obligated to pay earnout consideration if certain performance thresholds are achieved. The maximum potential earnout consideration payable by the Company cannot exceed $7,000. Through June 30, 2013, no cash payments relating to the earnout consideration were required.

Other Commitments—In the normal course of business, LFB enters into commitments to extend credit, predominately at variable interest rates. These commitments have varying expiration dates, 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. At June 30, 2013, these commitments were not material.

See Notes 5 and 13 of Notes to Condensed Consolidated Financial Statements for information regarding commitments relating to investment capital funding commitments 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, 2013, LFB had no such underwriting commitments.

In the opinion of management, the fulfillment of the commitments described herein will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

Legal—The Company is involved from time to time in judicial, regulatory and arbitration proceedings and inquiries concerning matters arising in connection with the conduct of our businesses, including proceedings initiated by former employees alleging wrongful termination. The Company reviews such matters on a case-by-case basis and establishes any required accrual if a loss is probable and the amount of such loss can be reasonably estimated. The Company experiences significant variation in its revenue and earnings on a quarterly basis. Accordingly, the results of any pending matter or matters could be significant when compared to the Company’s earnings in any particular fiscal quarter. The Company believes, however, based on currently available information, that the results of any pending matters, in the aggregate, will not have a material effect on its business or financial condition.

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Derivatives

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

6. DERIVATIVES

The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, 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 and other similar deferred compensation arrangements, which are reported in “revenue-other” in the consolidated statements of operations.

The tables below present the fair values of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair values of the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (see Note 12 of Notes to Condensed Consolidated Financial Statements) on the accompanying condensed consolidated statements of financial condition as of June 30, 2013 and December 31, 2012:

	June 30, 2013		December 31, 2012
Derivative Assets:
Forward foreign currency exchange rate contracts	$	626	$	893
Equity and fixed income swaps and other (a)		6,321		40
	$	6,947	$	933
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	1,289	$	322
Interest rate swaps		–		235
Equity and fixed income swaps (a)		–		4,342
Lazard Fund Interests and other similar deferred compensation arrangements		151,225		97,593
	$	152,514	$	102,492

(a) For equity and fixed income swaps, amounts represent the netting of gross derivative assets and liabilities of $6,332 and $11 as of June 30, 2013, respectively, and $0 and $4,342 as of December 31, 2012, respectively, for contracts with the same counterparty under legally enforceable master netting agreements. Such amounts are recorded “net” in “other assets”, with receivables for net cash collateral under such contracts of $4,574 and $15,304 as of June 30, 2013 and December 31, 2012, respectively.

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2013 and 2012, were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Forward foreign currency exchange rate contracts	$	(1,626	)	$	4,051	$	3,605		$	2,129
Lazard Fund Interests and other similar deferred compensation arrangements		3,477			2,856		(248	)		89
Equity and fixed income swaps and other		3,756			3,630		(352	)		(6,625	)
Total	$	5,607		$	10,537	$	3,005		$	(4,407	)

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Stockholders' Equity - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended			6 Months Ended				1 Months Ended				6 Months Ended	1 Months Ended					6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2013 Lazard Ltd [Member]	Jun. 30, 2012 Lazard Ltd [Member]	Jun. 30, 2013 Series A Preferred Stock [Member]	Dec. 31, 2012 Series A Preferred Stock [Member]	Oct. 31, 2012 Class A Common Stock [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, 2013 Class A Common Stock [Member]	Jul. 24, 2013 Class A Common Stock [Member] Subsequent Event [Member]	Oct. 31, 2012 Share Repurchase Program [Member]	Apr. 30, 2012 Share Repurchase Program [Member]	Oct. 31, 2011 Share Repurchase Program [Member]	Feb. 28, 2011 Share Repurchase Program [Member]	Jun. 30, 2013 Share Repurchase Program [Member]
Schedule Of Stockholders Equity [Line Items]
Shares in exchange of a like number of common membership interests						839,658	186,701
Stock/membership interest repurchase program authorized amount																$ 200,000	$ 125,000	$ 125,000	$ 250,000
Share repurchase program expiration date										Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014
Number of shares/common membership interests purchased during current year														1,434,657
Aggregate cost of shares/common membership interests purchased														50,447
Share repurchase amount unused																				$ 103,619
Authorized shares of preferred stock	15,000,000		15,000,000		15,000,000
Par value of preferred stock	$ 0.01		$ 0.01		$ 0.01
Outstanding shares of preferred stock								7,921	7,921
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$ 0.25	$ 0.20	$ 0.25	$ 0.36											$ 0.25
Dividend payable date															Aug. 23, 2013
Dividend date of record															Aug. 06, 2013
Dividend declare date															Jul. 24, 2013

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2013

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

13. EMPLOYEE BENEFIT PLANS

The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”) and, in the U.S., a partially funded contributory post-retirement plan covering qualifying U.S. employees (the “medical plan” and together with the pension plans, the “post-retirement plans”). The Company also offers defined contribution plans. The post-retirement plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense on the 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 did not make a contribution to the U.S. pension plans during the six month period ended June 30, 2013.

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) agreed to 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, inclusive. 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 amounts in the account security arrangement at June 30, 2013 and December 31, 2012 of approximately $15,600 and $16,500, respectively, have been recorded in “cash deposited with clearing organizations and other segregated cash” on the accompanying condensed consolidated statements of financial condition. Income on the account security arrangement accretes to the Company and is recorded in interest income.

During the six month period ended June 30, 2013, the Company contributed 1 million British pounds ($1,543 at June 30, 2013 exchange rates) to these U.K. pension plans, and no contributions were required to be made to other non-U.S. pension plans.

The following table summarizes the components of net periodic benefit cost related to the Company’s post-retirement plans for the three month and six month periods ended June 30, 2013 and 2012:

	Pension Plans						Medical Plan
	Three Months Ended June 30,
	2013			2012			2013		2012
Components of Net Benefit Cost (Credit):
Service cost	$	309		$	166		$	17	$	19
Interest cost		6,689			6,885			44		52
Expected return on plan assets		(6,585	)		(6,622	)		–		–
Amortization of:
Prior service cost		700			687			–		–
Net actuarial loss		912			420			–		–
Settlement loss (a)		–			886			–		–
Net benefit cost	$	2,025		$	2,422		$	61	$	71

	Pension Plans						Medical Plan
	Six Months Ended June 30,
	2013			2012			2013		2012
Components of Net Benefit Cost (Credit):
Service cost	$	623		$	338		$	27	$	30
Interest cost		13,442			13,787			91		105
Expected return on plan assets		(13,382	)		(13,294	)		–		–
Amortization of:
Prior service cost		1,406			1,388			–		–
Net actuarial loss		1,826			831			–		–
Settlement loss (a)		–			886			–		–
Net benefit cost	$	3,915		$	3,936		$	118	$	135

(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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Stockholders' Equity

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Stockholders' Equity

11. 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, 2013 and 2012, 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,
	2013		2012
LAZ-MD Holdings	$	387	$	2,416
Subsidiaries of Lazard Ltd		30,338		43,011
	$	30,725	$	45,427

Pursuant to Lazard Group’s Operating Agreement, Lazard Group allocates and distributes to its members a substantial portion of its distributable profits in installments, as soon as practicable after the end of each fiscal year. Such installment distributions usually begin in February.

Exchanges of Lazard Group Common Membership Interests—During the six month periods ended June 30, 2013 and 2012, Lazard Ltd issued 839,658 and 186,701 shares of Class A common stock, respectively, in connection with the exchanges 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, April 2012 and October 2012 the Board of Directors of Lazard Ltd authorized, on a cumulative basis, the repurchase of up to $250,000, $125,000, $125,000 and $200,000, respectively, in aggregate cost of Class A common stock and Lazard Group common membership interests through December 31, 2012, December 31, 2013, December 31, 2013 and December 31, 2014, 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, 2013, the Company made purchases of 1,434,657 Class A common shares, at an aggregate cost of $50,447 (no Lazard Group common membership interests were purchased during such six month period).

As of June 30, 2013, $103,619 of the current share repurchase amount authorized as of such date remained available under the share repurchase program, all of which expires December 31, 2014. In addition, under the terms of the 2005 Plan and the 2008 Plan, upon the vesting of restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and delivery of restricted Class A common stock, shares of Class A common stock may be withheld by the Company to cover its minimum statutory tax withholding requirements (see Note 12 of Notes to Condensed Consolidated Financial Statements).

Preferred Stock—Lazard Ltd has 15,000,000 authorized shares of preferred stock, par value $0.01 per share, inclusive of its Series A and Series B preferred stock. Series A and Series B preferred shares were issued in connection with certain prior year business acquisitions, are each non-participating securities convertible into Class A common stock and have no voting or dividend rights. As of both June 30, 2013 and December 31, 2012, 7,921 shares of Series A preferred stock were outstanding and no shares of Series B preferred stock were outstanding. At June 30, 2013, no shares of Series A preferred stock were convertible into shares of Class A common stock on a contingent or a non-contingent basis.

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The table below reflects the components of AOCI at June 30, 2013 and activity during the six month period then ended:

	Currency Translation Adjustments			Interest Rate Hedge			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2013	$	19,405		($	2,502	)	($	128,536	)	($	111,633	)	($	1,092	)	($	110,541	)
Activity January 1 to June 30, 2013:
Other comprehensive gain (loss) before reclassifications		(30,767	)		–			(2,719	)		(33,486	)		403			(33,889	)
Adjustments for items reclassified to earnings, net of tax		–			527			2,430			2,957			16			2,941
Net other comprehensive income (loss)		(30,767	)		527			(289	)		(30,529	)		419			(30,948	)
Balance, June 30, 2013	$	(11,362	)	$	(1,975	)	$	(128,825	)	$	(142,162	)	$	(673	)	$	(141,489	)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and six month periods ended June 30, 2013:

	Three Months Ended June 30,			Six Months Ended June 30,
	2013			2013
Amortization of interest rate hedge	$	263	(a)	$	527	(a)
Amortization expense relating to employee benefit plans		1,612	(b)		3,232	(b)
Less - tax expense		400			802
Net of tax		1,212			2,430
Total reclassifications, net of tax	$	1,475		$	2,957

(a) Included in “interest expense” on the condensed consolidated statements of operations.

(b) Included in the computation of net periodic benefit cost (see Note 13 of Notes to Condensed Consolidated Financial Statements). Such amount is included in “compensation and benefits” expense on the condensed consolidated statement of operations.

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.

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, 2013 and 2012:

	Lazard Ltd					LAZ-MD Holdings						Total Lazard Group Common Membership Interests
	Common Membership Interests		% Ownership			Common Membership Interests			% Ownership
Balance, January 1, 2012		123,009,311		94.8	%		6,756,779			5.2	%		129,766,090
Activity January 1 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
Balance, January 1, 2013		128,216,423		98.8	%		1,549,667			1.2	%		129,766,090
Activity January 1 to June 30, 2013:
Common membership interest activity in connection with:
Exchanges for Class A common stock		839,658					(839,658	)					–
Balance, June 30, 2013		129,056,081		99.5	%		710,009			0.5	%		129,766,090

The change in Lazard Ltd’s ownership in Lazard Group in the six month periods ended June 30, 2013 and 2012 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, 2013 and 2012 and noncontrolling interests as of June 30, 2013 and December 31, 2012 in the Company’s condensed consolidated financial statements:

	Net Income (Loss) Attributable To Noncontrolling Interests
	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Edgewater	$	287		$	1,698		$	2,653		$	3,872
LAZ-MD Holdings		305			1,694			497			3,019
Other		(24	)		(51	)		(293	)		(46	)
Total	$	568		$	3,341		$	2,857		$	6,845

	Noncontrolling Interests As Of
	June 30, 2013		December 31, 2012
Edgewater	$	71,020	$	75,262
LAZ-MD Holdings		2,248		5,405
Other		859		1,217
Total	$	74,127	$	81,884

Dividend Declared, July 2013—On July 24, 2013, the Board of Directors of Lazard Ltd declared a quarterly dividend of $0.25 per share on its Class A common stock, payable on August 23, 2013, to stockholders of record on August 6, 2013.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Jul. 24, 2013 Class A Common Stock [Member]	Jul. 24, 2013 Subsidiaries of Lazard Ltd [Member]	Jul. 24, 2013 Class B Common Stock [Member]
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	LAZ
Entity Registrant Name	LAZARD LTD
Entity Central Index Key	0001311370
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		129,056,081	7,115,597	1

XML

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Pension Plans [Member]
Components of Net Benefit Cost (Credit):
Service cost	$ 309	$ 166	$ 623	$ 338
Interest cost	6,689	6,885	13,442	13,787
Expected return on plan assets	(6,585)	(6,622)	(13,382)	(13,294)
Amortization of:
Prior service cost	700	687	1,406	1,388
Net actuarial loss	912	420	1,826	831
Settlement loss		886		886
Net benefit cost	2,025	2,422	3,915	3,936
Medical Plan [Member]
Components of Net Benefit Cost (Credit):
Service cost	17	19	27	30
Interest cost	44	52	91	105
Expected return on plan assets
Amortization of:
Prior service cost
Net actuarial loss
Settlement loss
Net benefit cost	$ 61	$ 71	$ 118	$ 135

XML

Incentive Plans

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Incentive Plans

12. 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, 2013 and 2012, 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, RSUs 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 at 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 reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, PRSUs and restricted stock awards) and “professional services” expense (with respect to deferred stock units (“DSUs”)) within the Company’s accompanying condensed consolidated statements of operations:

	Three Months Ended June  30,				Six Months Ended June 30,
	2013		2012		2013		2012
Share-based incentive awards:
RSUs (a)	$	52,147	$	63,428	$	117,089	$	145,319
PRSUs		1,995		–		2,433		–
Restricted stock (b)		1,824		1,704		7,085		5,879
DSUs		1,403		1,218		1,474		1,288
Total	$	57,369	$	66,350	$	128,081	$	152,486

(a) Includes, during the three month and six month periods ended June 30, 2013, $4,644 and $9,099, respectively, relating to the Cost Saving Initiatives (see Note 14 of Notes to Condensed Consolidated Financial Statements).

(b) Includes, during the three month and six month periods ended June 30, 2013, $14 and $247, respectively, relating to the Cost Saving Initiatives.

The ultimate amount of compensation and benefits expense relating to share-based awards is dependent upon the actual number of shares of Class A common stock that vest. The Company periodically assesses the forfeiture rates used for such estimates. A change in estimated forfeiture rates results in a cumulative adjustment to previously recorded compensation and benefits expense and also would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described below.

For purposes of calculating diluted net income per share, RSU and restricted stock awards are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. PRSUs are included in the diluted weighted average shares of Class A common stock outstanding to the extent the performance conditions are met at the end of the reporting period, also using the “treasury stock” method.

The Company’s incentive plans are described below.

RSUs and DSUs

RSUs generally require future service as a condition for the delivery of the underlying shares of Class A common stock (unless the recipient is then eligible for retirement under the Company’s retirement policy) and convert into Class A common stock on a one-for-one basis after the stipulated vesting periods. The grant date fair value of the RSUs, net of an estimated forfeiture rate, is amortized over the vesting periods or requisite service periods (generally one-third after two years, and the remaining two-thirds after the third year), and is adjusted for actual forfeitures over such periods.

RSUs generally include a dividend participation right that provides that during vesting periods each RSU is attributed additional RSUs (or fractions thereof) equivalent to any ordinary quarterly dividends paid on Class A common stock during such period. During the six month periods ended June 30, 2013 and 2012, 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,
	2013			2012
Number of RSUs issued			131,669			310,756
Charges to retained earnings, net of estimated forfeitures		$	4,062		$	7,277

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 39,315 and 49,735 DSUs granted during the six month periods ended June 30, 2013 and 2012, respectively. Their remaining compensation is payable in cash, which they may elect to receive in the form of additional DSUs under the Directors’ Fee Deferral Unit Plan described below. DSUs are convertible into 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, 2013 and 2012.

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 in lieu of some or all of their cash fees. The number of DSUs that shall 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, 2013 and 2012, 3,916 and 5,489 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, 2013 and 2012:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2013		21,481,131		$	33.92		204,496	$	31.47
Granted (including 131,669 RSUs relating to dividend participation)		4,689,312		$	36.95		43,231	$	34.09
Forfeited		(223,346	)	$	34.64		–		–
Vested		(8,589,999	)	$	34.99		–		–
Balance, June 30, 2013		17,357,098		$	34.20		247,727	$	31.93
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

In connection with RSUs which vested during the six month periods ended June 30, 2013 and 2012, the Company satisfied its minimum statutory tax withholding requirements in lieu of issuing 3,309,900 and 967,828 shares of Class A common stock in the respective six month periods. Accordingly, 5,280,099 and 2,664,104 shares of Class A common stock held by the Company were delivered during the six month periods ended June 30, 2013 and 2012, respectively.

During the fourth quarter of 2012, 958,213 RSUs were modified through forward purchase agreements into liability awards. Such liability awards were settled on March 1, 2013 for $28,612. During the six month period ended June 30, 2013, compensation expense of $1,690 was recorded for such liability awards.

As of June 30, 2013, unrecognized RSU compensation expense, adjusted for estimated forfeitures, was approximately $236,000, with such unrecognized compensation expense expected to be recognized over a weighted average period of approximately 1.5 years subsequent to June 30, 2013.

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, 2013 and 2012:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2013		1,972,609		$	34.85
Granted		368,736		$	36.74
Forfeited		(35,183	)	$	33.29
Vested		(1,727,121	)	$	36.00
Balance, June 30, 2013		579,041		$	32.73
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

In connection with shares of restricted Class A common stock that vested during the six month periods ended June 30, 2013 and 2012, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 17,915 and 28,129 shares of Class A common stock during the respective six month periods. Accordingly, 1,709,206 and 103,614 shares of Class A common stock held by the Company were delivered during the six month periods ended June 30, 2013 and 2012, respectively.

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, 2013, unrecognized restricted stock expense was approximately $11,000, with such expense to be recognized over a weighted average period of approximately 1.7 years subsequent to June 30, 2013.

PRSUs

During the six month period ended June 30, 2013, the Company granted 448,128 PRSUs. The PRSUs are subject to both performance-based and service-based vesting conditions. The number of shares of Class A common stock that a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance metrics that relate to the Company’s performance over the three-year period beginning on January 1, 2012 and ending on December 31, 2014. The target number of shares of Class A common stock subject to each PRSU is one; however, based on the achievement of the performance criteria, the number of shares of Class A common stock that may be received in connection with each PRSU can range from zero to three times the target number. The PRSUs granted in 2013 will vest 33% in March 2015 and 67% in March 2016, provided the applicable service and performance conditions are satisfied. In addition, the performance metrics applicable to each PRSU will be evaluated on an annual basis at the end of each fiscal year during the performance period and, if the Company has achieved a threshold level of performance with respect to the fiscal year, 25% of the target number of shares of Class A common stock subject to each PRSU will no longer be at risk of forfeiture based on the achievement of performance criteria. PRSUs generally include dividend participation rights.

Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of Class A common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value of $36.11 per share. As of June 30, 2013, the total estimated unrecognized compensation expense for PRSUs granted in 2013 was approximately $14,000, and the Company expects to amortize such expense over a weighted-average period of approximately 1.9 years.

Lazard Fund Interests and Other Similar Deferred Compensation Arrangements

Commencing in February 2011, the Company granted Lazard Fund Interests to eligible employees. 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 (which are generally similar to the comparable periods for RSUs), 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.

The following is a summary of activity relating to Lazard Fund Interests and other similar deferred compensation arrangements during the six month periods ended June 30, 2013 and 2012:

	Prepaid Compensation Asset			Compensation   Liability
Balance, January 1, 2013	$	47,445		$	97,593
Granted		72,217			72,217
Settled		–			(19,107	)
Forfeited		(685	)		(859	)
Amortization		(30,226	)		–
Change in fair value related to:
Increase in fair value of underlying investments		–			248
Adjustment for estimated forfeitures		–			2,049
Other		(396	)		(916	)
Balance, June 30, 2013	$	88,355		$	151,225

	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		(16,985	)		–
Decrease in fair value of underlying investments		–			(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 1.9 years subsequent to June 30, 2013.

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 month and six month periods ended June 30, 2013 and 2012:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Compensation expense:
Amortization, net of forfeitures (a)	$	19,052		$	10,800		$	32,101	$	16,985
Change in fair value of underlying investments		(3,477	)		(2,856	)		248		(89	)
Total	$	15,575		$	7,944		$	32,349	$	16,896

(a) Includes, during the three month and six month periods ended June 30, 2013, $1,748 and $2,665, respectively, relating to the Cost Saving Initiatives.

XML

Goodwill and Other Intangible Assets - Gross Cost and Accumulated Amortization of Other Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Intangible Assets [Line Items]
Other intangible assets, Gross Cost	$ 63,820	$ 63,775
Other intangible assets, Accumulated Amortization	37,162	35,281
Other intangible assets, Net Carrying Amount	26,658	28,494
Success\Performance Fees [Member]
Intangible Assets [Line Items]
Other intangible assets, Gross Cost	30,740	30,740
Other intangible assets, Accumulated Amortization	10,726	10,678
Other intangible assets, Net Carrying Amount	20,014	20,062
Management Fees, Customer Relationships and Non-Compete Agreements [Member]
Intangible Assets [Line Items]
Other intangible assets, Gross Cost	33,080	33,035
Other intangible assets, Accumulated Amortization	26,436	24,603
Other intangible assets, Net Carrying Amount	$ 6,644	$ 8,432

XML

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Business Combinations [Abstract]
Beginning Balance	$ 364,328	$ 356,657
Business acquisition	1,440	4,272
Foreign currency translation adjustments	(17,219)	64
Ending Balance	$ 348,549	$ 360,993

XML

Cost Saving Initiatives - Schedule of Pre-Tax Implementation Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	$ 38,381	$ 64,703
Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	26,728	51,399
Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	11,653	13,304
Cumulative [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		167,279
Cumulative [Member] | Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		151,386
Cumulative [Member] | Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		15,893
Operating Segments [Member] | Financial Advisory [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	25,764	47,779
Operating Segments [Member] | Financial Advisory [Member] | Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	25,352	45,746
Operating Segments [Member] | Financial Advisory [Member] | Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	412	2,033
Operating Segments [Member] | Asset Management [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		235
Operating Segments [Member] | Asset Management [Member] | Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		236
Operating Segments [Member] | Asset Management [Member] | Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		(1)
Operating Segments [Member] | Corporate [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	12,617	16,689
Operating Segments [Member] | Corporate [Member] | Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	1,376	5,417
Operating Segments [Member] | Corporate [Member] | Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date	11,241	11,272
Operating Segments [Member] | Cumulative [Member] | Financial Advisory [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		125,311
Operating Segments [Member] | Cumulative [Member] | Financial Advisory [Member] | Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		121,879
Operating Segments [Member] | Cumulative [Member] | Financial Advisory [Member] | Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		3,432
Operating Segments [Member] | Cumulative [Member] | Asset Management [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		13,024
Operating Segments [Member] | Cumulative [Member] | Asset Management [Member] | Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		12,292
Operating Segments [Member] | Cumulative [Member] | Asset Management [Member] | Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		732
Operating Segments [Member] | Cumulative [Member] | Corporate [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		28,944
Operating Segments [Member] | Cumulative [Member] | Corporate [Member] | Compensation and Benefits [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		17,215
Operating Segments [Member] | Cumulative [Member] | Corporate [Member] | Other [Member]
Restructuring and Related Cost [Abstract]
Restructuring and Related Cost, Cost Incurred to Date		$ 11,729