10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2017

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  ☒    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  ☒    No  ☐

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

Large accelerated filer  ☒	Accelerated filer  ☐
Non-accelerated filer    ☐	Smaller reporting company  ☐
	Emerging growth company  ☐

If the Registrant is an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

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

As of April 21, 2017, there were 129,766,091 shares of the Registrant’s Class A common stock outstanding (including 7,157,305 shares held by subsidiaries).

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’s primary operating asset is its indirect ownership as of March 31, 2017 of all 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	35
Item 3. Quantitative and Qualitative Disclosures About Market Risk	60
Item 4. Controls and Procedures	61
Part II. Other Information
Item 1. Legal Proceedings	62
Item 1A. Risk Factors	62
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3. Defaults Upon Senior Securities	63
Item 4. Mine Safety Disclosures	63
Item 5. Other Information	63
Item 6. Exhibits	64
Signatures	67

i

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

	Page
Condensed Consolidated Statements of Financial Condition as of March 31, 2017 and December 31, 2016	2
Condensed Consolidated Statements of Operations for the three month periods ended March 31, 2017 and 2016	4
Condensed Consolidated Statements of Comprehensive Income for the three month periods ended March 31, 2017 and 2016	5
Condensed Consolidated Statements of Cash Flows for the three month periods ended March 31, 2017 and 2016	6
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three month periods ended March 31, 2017 and 2016	7
Notes to Condensed Consolidated Financial Statements	9

1

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MARCH 31, 2017 AND DECEMBER 31, 2016

(UNAUDITED)

(dollars in thousands, except for per share data)

	March 31,		December 31,
	2017		2016
ASSETS
Cash and cash equivalents	$	891,455	$	1,158,785
Deposits with banks and short-term investments		572,496		419,668
Cash deposited with clearing organizations and other segregated cash		33,687		29,030
Receivables (net of allowance for doubtful accounts of $29,662 and $16,386 at March 31,    2017 and December 31, 2016, respectively):
Fees		439,836		564,291
Customers and other		87,778		73,991
		527,614		638,282
Investments		382,074		459,422
Property (net of accumulated amortization and depreciation of $296,280 and $286,001    at March 31, 2017 and December 31, 2016, respectively)		206,143		209,021
Goodwill and other intangible assets (net of accumulated amortization of $60,909 and    $60,080 at March 31, 2017 and December 31, 2016, respectively)		387,908		382,024
Deferred tax assets		1,135,107		1,075,777
Other assets		248,774		184,499
Total Assets	$	4,385,258	$	4,556,508

See notes to condensed consolidated financial statements.

2

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MARCH 31, 2017 AND DECEMBER 31, 2016

(UNAUDITED)

(dollars in thousands, except for per share data)

	March 31,			December 31,
	2017			2016
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits and other customer payables	$	625,797		$	472,283
Accrued compensation and benefits		288,987			541,588
Senior debt		1,189,043			1,188,600
Tax receivable agreement obligation		512,874			513,610
Deferred tax liabilities		8,801			9,168
Capital lease obligations		6,913			7,205
Other liabilities		539,656			530,241
Total Liabilities		3,172,071			3,262,695
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Preferred stock, par value $.01 per share; 15,000,000 shares authorized:
Series A - no shares issued and outstanding		-			-
Series B - no shares issued and outstanding		-			-
Common stock:
Class A, par value $.01 per share (500,000,000 shares authorized;    129,766,091 shares issued at March 31, 2017 and December 31, 2016,    including shares held by subsidiaries as indicated below)		1,298			1,298
Additional paid-in-capital		608,073			688,231
Retained earnings		1,101,988			1,134,186
Accumulated other comprehensive loss, net of tax		(296,699	)		(314,222	)
		1,414,660			1,509,493
Class A common stock held by subsidiaries, at cost (6,879,471 and 7,628,786    shares at March 31, 2017 and December 31, 2016, respectively)		(261,583	)		(273,506	)
Total Lazard Ltd Stockholders’ Equity		1,153,077			1,235,987
Noncontrolling interests		60,110			57,826
Total Stockholders’ Equity		1,213,187			1,293,813
Total Liabilities and Stockholders’ Equity	$	4,385,258		$	4,556,508

See notes to condensed consolidated financial statements.

3

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2017 AND 2016

(UNAUDITED)

(dollars in thousands, except for per share data)

	Three Months Ended
	March 31,
	2017		2016
REVENUE
Investment banking and other advisory fees	$	334,916	$	265,143
Asset management fees		272,924		233,731
Interest income		1,654		1,372
Other		27,926		9,870
Total revenue		637,420		510,116
Interest expense		13,956		11,898
Net revenue		623,464		498,218
OPERATING EXPENSES
Compensation and benefits		361,801		297,210
Occupancy and equipment		27,484		27,007
Marketing and business development		19,752		19,688
Technology and information services		24,024		22,931
Professional services		11,462		9,762
Fund administration and outsourced services		15,913		13,435
Amortization and other acquisition-related costs		3,574		644
Other		9,257		9,164
Total operating expenses		473,267		399,841
OPERATING INCOME		150,197		98,377
Provision for income taxes		39,767		27,654
NET INCOME		110,430		70,723
LESS - NET INCOME ATTRIBUTABLE TO    NONCONTROLLING INTERESTS		2,877		3,900
NET INCOME ATTRIBUTABLE TO LAZARD LTD	$	107,553	$	66,823
ATTRIBUTABLE TO LAZARD LTD CLASS A       COMMON STOCKHOLDERS:
WEIGHTED AVERAGE SHARES OF COMMON STOCK      OUTSTANDING:
Basic		122,815,163		126,040,441
Diluted		132,689,375		132,891,284
NET INCOME PER SHARE OF COMMON STOCK:
Basic	$	0.88	$	0.53
Diluted	$	0.81	$	0.50
DIVIDENDS DECLARED PER SHARE OF      COMMON STOCK	$	1.58	$	1.55

See notes to condensed consolidated financial statements.

4

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2017 AND 2016

(UNAUDITED)

(dollars in thousands)

	Three Months Ended
	March 31,
	2017			2016
NET INCOME	$	110,430		$	70,723
OTHER COMPREHENSIVE INCOME (LOSS), NET OF    TAX:
Currency translation adjustments (including a tax benefit of $1,146 for    the three months ended March 31, 2016)		16,932			11,739
Employee benefit plans:
Actuarial loss (net of tax benefit of $261 and $70 for the    three months ended March 31, 2017 and  2016, respectively)		(495	)		(141	)
Adjustment for items reclassified to earnings (net of tax    expense of $276 and $393 for the three months ended    March 31, 2017 and 2016, respectively)		1,086			1,186
OTHER COMPREHENSIVE INCOME, NET OF TAX		17,523			12,784
COMPREHENSIVE INCOME		127,953			83,507
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO    NONCONTROLLING INTERESTS		2,877			3,900
COMPREHENSIVE INCOME ATTRIBUTABLE TO    LAZARD LTD	$	125,076		$	79,607

See notes to condensed consolidated financial statements.

5

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2017 AND 2016

(UNAUDITED)

(dollars in thousands)

	Three Months Ended
	March 31,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	110,430		$	70,723
Adjustments to reconcile net income to net cash provided by (used in)    operating activities:
Depreciation and amortization of property		7,662			8,389
Amortization of deferred expenses and share-based incentive compensation		92,766			117,140
Amortization and other acquisition-related costs		3,574			644
Deferred tax provision		17,520			11,586
(Increase) decrease in operating assets:
Deposits with banks and short-term investments		(146,251	)		19,498
Cash deposited with clearing organizations and other segregated cash		(4,533	)		1,474
Receivables-net		115,043			(11,757	)
Investments		66,979			86,169
Other assets		(73,026	)		(46,592	)
Increase (decrease) in operating liabilities:
Deposits and other payables		146,271			(2,729	)
Accrued compensation and benefits and other liabilities		(242,052	)		(354,436	)
Net cash (used in) provided by operating activities		94,383			(99,891	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property		(3,847	)		(5,454	)
Disposals of property		135			104
Net cash used in investing activities		(3,712	)		(5,350	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Contributions from noncontrolling interests		-			93
Excess tax benefits from share-based incentive compensation		-			2,720
Payments for:
Capital lease obligations		(396	)		(417	)
Distributions to noncontrolling interests		(1,001	)		(424	)
Payments under tax receivable agreement		(736	)		(10,086	)
Purchase of Class A common stock		(106,048	)		(83,140	)
Class A common stock dividends		(192,264	)		(194,382	)
Settlement of vested share-based incentive compensation		(61,478	)		(50,455	)
Other financing activities		(7,947	)		(1,614	)
Net cash used in financing activities		(369,870	)		(337,705	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		11,869			12,187
NET DECREASE IN CASH AND CASH EQUIVALENTS		(267,330	)		(430,759	)
CASH AND CASH EQUIVALENTS—January 1		1,158,785			1,132,083
CASH AND CASH EQUIVALENTS—March 31	$	891,455		$	701,324

See notes to condensed consolidated financial statements.

6

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2016

(UNAUDITED)

(dollars in thousands)

	Series A								Additional						Accumulated Other Comprehensive			Class A Common Stock						Total Lazard Ltd						Total
	Preferred Stock				Common Stock				Paid-In-			Retained			Income (Loss),			Held By Subsidiaries						Stockholders’			Noncontrolling			Stockholders’
	Shares		$		Shares		$		Capital			Earnings			Net of Tax			Shares			$			Equity			Interests			Equity
Balance - January 1, 2016		7,921	$	-		129,766,091	$	1,298	$	600,034		$	1,123,728		$	(234,356	)		4,253,381		$	(177,249	)	$	1,313,455		$	53,851		$	1,367,306
Comprehensive income:
Net income													66,823												66,823			3,900			70,723
Other comprehensive income - net    of tax																12,784									12,784						12,784
Amortization of share-based incentive    compensation										94,638															94,638						94,638
Dividend-equivalents										23,793			(25,361	)											(1,568	)					(1,568	)
Class A common stock dividends													(194,382	)											(194,382	)					(194,382	)
Purchase of Class A common stock																			2,424,571			(83,140	)		(83,140	)					(83,140	)
Delivery of Class A common stock in    connection with share-based incentive    compensation and related tax benefit    of $7,219										(192,121	)								(3,674,957	)		148,885			(43,236	)					(43,236	)
Distributions to noncontrolling interests,    net																									-			(331	)		(331	)
Other										(46	)														(46	)					(46	)
Balance - March 31, 2016		7,921	$	-		129,766,091	$	1,298	$	526,298		$	970,808		$	(221,572	)		3,002,995		$	(111,504	)	$	1,165,328		$	57,420		$	1,222,748

See notes to condensed consolidated financial statements.

7

LAZARD LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2017

(UNAUDITED)

(dollars in thousands)

					Additional						Accumulated Other Comprehensive			Class A Common Stock						Total Lazard Ltd						Total
	Common Stock				Paid-In-			Retained			Income (Loss),			Held By Subsidiaries						Stockholders’			Noncontrolling			Stockholders’
	Shares		$		Capital			Earnings			Net of Tax			Shares			$			Equity			Interests			Equity
Balance - January 1, 2017		129,766,091	$	1,298	$	688,231		$	1,134,186		$	(314,222	)		7,628,786		$	(273,506	)	$	1,235,987		$	57,826		$	1,293,813
Adjustment for the cumulative effect on prior    years from the adoption of new accounting    guidance related to share-based incentive    compensation									81,544												81,544						81,544
Balance, as adjusted - January 1, 2017		129,766,091		1,298		688,231			1,215,730			(314,222	)		7,628,786			(273,506	)		1,317,531			57,826			1,375,357
Comprehensive income:
Net income									107,553												107,553			2,877			110,430
Other comprehensive income - net of tax												17,523									17,523						17,523
Amortization of share-based incentive    compensation						77,527															77,527						77,527
Dividend-equivalents						25,977			(29,031	)											(3,054	)					(3,054	)
Class A common stock dividends									(192,264	)											(192,264	)					(192,264	)
Purchase of Class A common stock															2,464,967			(106,048	)		(106,048	)					(106,048	)
Delivery of Class A common stock in    connection with share-based incentive    compensation and related tax expense    of $4,287						(183,736	)								(3,214,282	)		117,971			(65,765	)					(65,765	)
Business acquisitions and related equity    transactions:
Class A common stock issuable    (including related amortization)						74															74						74
Distributions to noncontrolling interests, net																					-			(1,001	)		(1,001	)
Other																					-			408			408
Balance - March 31, 2017		129,766,091	$	1,298	$	608,073		$	1,101,988		$	(296,699	)		6,879,471		$	(261,583	)	$	1,153,077		$	60,110		$	1,213,187

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 100% of all outstanding Lazard Group common membership interests as of March 31, 2017 and December 31, 2016. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Amended and Restated Operating Agreement dated as of October 26, 2015, as amended (the “Operating Agreement”).

Lazard Ltd’s primary operating asset is its indirect ownership of the common membership interests of, and managing member interests in, Lazard Group, whose principal operating activities are included in two business segments:

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

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

In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness, certain contingent obligations, and assets and liabilities associated with Lazard Group’s Paris-based subsidiary Lazard Frères Banque SA (“LFB”).

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard 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, 2016. The accompanying December 31, 2016 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

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

The consolidated results of operations for the three month period ended March 31, 2017 are not indicative of the results to be expected for any future interim or annual period.

The condensed consolidated financial statements include Lazard Ltd, Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie

9

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

Financière Lazard Frères SAS (“CFLF”) along with its subsidiaries, LFB and Lazard Frères Gestion SAS (“LFG”), and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries.

The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates:

• Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs, and

• Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE.

When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings, or (ii) elects the option to measure at fair value. Intercompany transactions and balances have been eliminated.

2. RECENT ACCOUNTING DEVELOPMENTS

Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting—In March 2016, the Financial Accounting Standards Board (the “FASB”) issued new guidance regarding share-based incentive compensation. The new guidance includes several amendments which affect various aspects of the accounting for share-based incentive compensation transactions, including the income tax consequences, estimation of forfeitures, effect on earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this new guidance on January 1, 2017. The new guidance has since January 1, 2017 affected, and the Company expects that in future periods the new guidance will affect, the provision for income taxes for the delivery of stock under share-based incentive compensation arrangements, as well as the effective tax rate in the relevant periods, which could be material to the condensed consolidated statements of operations and the classification of cash flows in the relevant periods. The inclusion of excess tax benefits as an operating activity within the statement of cash flows was adopted on a prospective basis, with prior periods unadjusted. Based on the new guidance, the excess tax benefits are no longer included as assumed proceeds in the calculation of earnings per share under the treasury stock method on a prospective basis. Upon adoption of the new guidance, the Company also recorded deferred tax assets of $81,544, net of a valuation allowance of $12,090, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based incentive compensation arrangements, with an offsetting adjustment to retained earnings. With respect to forfeiture rates, the Company will continue to estimate the number of awards expected to be forfeited, rather than electing the option to account for forfeitures as they occur. See Note 14.

Revenue from Contracts with Customers—In May 2014, the FASB issued comprehensive new revenue recognition guidance. The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The guidance also changes the accounting for certain contract costs, including whether they may be offset against revenue in the condensed consolidated statements of operations. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. The guidance may be adopted using a full retrospective approach or a modified cumulative effect approach. During 2016, the FASB issued additional clarifications for certain aspects of the new revenue recognition guidance. The Company currently expects to adopt the revenue recognition guidance in the first quarter of 2018. The Company’s implementation efforts include the identification of revenue within the scope of the guidance and the evaluation of revenue contracts. The Company also continues to evaluate both the timing of revenue recognition and the presentation of certain contract costs.

Classification of Certain Cash Receipts and Cash Payments—In August and November 2016, the FASB issued updated guidance which clarifies how a company should classify certain cash receipts and cash payments on the statement of cash flows and clarifies that restricted cash should be included in the total of cash and cash equivalents on the statement of cash flows. The new guidance for both updates is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The new guidance is to be applied on a retrospective basis. The Company is currently evaluating the new guidance.

10

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

Clarifying the Definition of a Business—In January 2017, the FASB issued updated guidance to clarify the definition of a business within the context of business combinations. The updated guidance requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This updated guidance is expected to reduce the number of transactions that need to be further evaluated as business combinations. If further evaluation is necessary, the updated guidance will require that a business set include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The updated guidance will remove the evaluation of whether a market participant could replace missing elements. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and is to be applied on a prospective basis. The Company is currently evaluating the new guidance.

Compensation—Retirement Benefits—Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost—In March 2016, the FASB issued updated guidance on the presentation of net benefit cost in the statement of operations and the components eligible for capitalization. The new guidance requires that only the service cost component of net periodic pension cost and net periodic postretirement benefit cost be presented with other employee compensation costs in operating expenses. The other components of net benefit cost, including amortization of prior service cost, and gains and losses from settlements and curtailments, are to be included in non-operating expenses. The new guidance also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the new guidance.

Leases—In February 2016, the FASB issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial condition, (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and (iii) classify all cash payments within operating activities in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The new guidance is to be applied on a modified retrospective basis. The Company is currently evaluating the new guidance.

Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments—In June 2016, the FASB issued new guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The new guidance is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the new guidance.

Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment—In January 2017, the FASB issued updated guidance which eliminated Step 2 from the goodwill impairment test. Step 2 is the process of measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires entities to measure a goodwill impairment loss as the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the carrying amount of goodwill. The FASB also eliminated the requirements for entities that have reporting units with zero or negative carrying amounts to perform a qualitative assessment for the goodwill impairment test. Instead, those entities would be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for interim or annual goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the new guidance.

3. RECEIVABLES

The Company’s receivables represent fee receivables, amounts due from customers and other receivables.

11

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

Receivables are stated net of an estimated allowance for doubtful accounts, for past due amounts and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute.

Activity in the allowance for doubtful accounts for the three month periods ended March 31, 2017 and 2016 was as follows:

	Three Months Ended
	March 31,
	2017			2016
Beginning Balance	$	16,386		$	12,882
Bad debt expense, net of recoveries		13,651			514
Charge-offs, foreign currency translation and other adjustments		(375	)		(2,166	)
Ending Balance	$	29,662		$	11,230

Bad debt expense, net of recoveries is included in “investment banking and other advisory fees” on the condensed consolidated statements of operations.

At March 31, 2017 and December 31, 2016, the Company had receivables past due or deemed uncollectible of $42,489 and $22,212, respectively.

Of the Company’s fee receivables at March 31, 2017 and December 31, 2016, $63,119 and $76,133, respectively, represented interest-bearing financing receivables. Based upon our historical loss experience, the credit quality of the counterparties, and the lack of past due or uncollectible amounts, there was no allowance for doubtful accounts required at those dates related to such receivables.

The aggregate carrying amount of our non-interest bearing receivables of $464,495 and $562,149 at March 31, 2017 and December 31, 2016, respectively, approximates fair value.

4. INVESTMENTS

The Company’s investments and securities sold, not yet purchased, consist of the following at March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
Interest-bearing deposits	$	483	$	456
Equities		42,962		41,017
Funds:
Alternative investments (a)		31,046		32,441
Debt (a)		61,486		74,597
Equity (a)		135,926		188,268
Private equity		109,949		122,421
		338,407		417,727
Equity method		222		222
Total investments		382,074		459,422
Less:
Interest-bearing deposits		483		456
Equity method		222		222
Investments, at fair value	$	381,369	$	458,744
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	4,293	$	4,482

(a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $11,085, $24,004 and $71,552, respectively, at March 31, 2017 and $13,080, $37,869 and $128,219, respectively, at December 31, 2016, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar

12

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

deferred compensation arrangements. LFI represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12).

Interest-bearing deposits have original maturities of greater than three months but equal to or less than one year and are carried at cost that approximates fair value due to their short-term maturities.

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

Alternative investment funds primarily consist of interests in various Lazard-managed hedge funds, funds of funds and mutual funds.

Debt funds primarily consist of seed investments in funds related to our Asset Management business that invest in debt securities, amounts related to LFI discussed above and an investment in a Lazard-managed debt fund.

Equity funds primarily consist of seed investments in funds related to our Asset Management business that invest in equity securities, and amounts related to LFI discussed above.

Private equity investments include those owned by Lazard and those consolidated but not owned by Lazard. Private equity investments owned by Lazard are primarily comprised of investments in private equity funds. Such investments primarily include (i) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies, (ii) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies, and (iii) a fund targeting significant noncontrolling-stake investments in established private companies.

Private equity investments consolidated but not owned by Lazard relate to the economic interests that are owned by the management team and other investors in the Edgewater Funds (“Edgewater”).

During the three month periods ended March 31, 2017 and 2016, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to “trading” securities still held as of the reporting date as follows:

	Three Months Ended
	March 31,
	2017		2016
Net unrealized investment gains	$	13,180	$	5,315

5. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities—Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access.

Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data.

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis.

13

LAZARD LTD

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, debt funds and equity funds is classified as Level 1 when the fair values are primarily based on the publicly reported closing price for the fund.

The fair value of investments in private equity funds is classified as Level 2 for certain investments that were valued based on a probable transaction value as of the reporting date that differs from net asset value (“NAV”).

The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of the contingent consideration liability is classified as Level 3 and the estimated fair value of the liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods.Any change in the fair value is recognized in “amortization and other acquisition-related costs” in the condensed consolidated statement of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds. The contingent consideration liability is initially recorded at the estimated fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. See Note 10.

The fair value of derivatives entered into by the Company is classified as Level 2 and is based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair value of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 6.

Investments Measured at NAV—As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) private equity funds are not redeemable in the near term as a result of redemption restrictions.

14

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

The following tables present, as of March 31, 2017 and December 31, 2016, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient:

	March 31, 2017
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	41,425	$	-	$	1,537	$	-	$	42,962
Funds:
Alternative investments		23,999		-		-		7,047		31,046
Debt		61,480		-		-		6		61,486
Equity		135,884		-		-		42		135,926
Private equity		-		28,196		-		81,753		109,949
Derivatives		-		4,057		-		-		4,057
Total	$	262,788	$	32,253	$	1,537	$	88,848	$	385,426
Liabilities:
Securities sold, not yet purchased	$	4,293	$	-	$	-	$	-	$	4,293
Contingent consideration liability		-		-		25,104		-		25,104
Derivatives		-		179,023		-		-		179,023
Total	$	4,293	$	179,023	$	25,104	$	-	$	208,420

	December 31, 2016
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	39,509	$	-	$	1,508	$	-	$	41,017
Funds:
Alternative investments		25,316		-		-		7,125		32,441
Debt		74,591		-		-		6		74,597
Equity		188,229		-		-		39		188,268
Private equity		-		-		-		122,421		122,421
Derivatives		-		1,993		-		-		1,993
Total	$	327,645	$	1,993	$	1,508	$	129,591	$	460,737
Liabilities:
Securities sold, not yet purchased	$	4,482	$	-	$	-	$	-	$	4,482
Contingent consideration liability		-				22,608				22,608
Derivatives		-		182,223		-		-		182,223
Total	$	4,482	$	182,223	$	22,608	$	-	$	209,313

15

LAZARD LTD

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 and liabilities for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended March 31, 2017
	Beginning Balance		NetUnrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,508	$	2	$	-	$	(8	)	$	35	$	1,537
Total Level 3 Assets	$	1,508	$	2	$	-	$	(8	)	$	35	$	1,537
Liabilities:
Contingent consideration liability	$	22,608	$	2,745	$	-	$	(249	)	$	-	$	25,104
Total Level 3 Liabilities	$	22,608	$	2,745	$	-	$	(249	)	$	-	$	25,104

	Three Months Ended March 31, 2016
	Beginning Balance		NetUnrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,276	$	3	$	-	$	-	$	22	$	1,301
Total Level 3 Assets	$	1,276	$	3	$	-	$	-	$	22	$	1,301

(a) Earnings recorded in “other revenue” for investments in equities for the three month periods ended March 31, 2017 and 2016 include net unrealized gains of $0 and $3, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month period ended March 31, 2017 includes unrealized losses of $2,745.

There were no transfers between any of the Level 1, 2 and 3 categories in the fair value measurement hierarchy during the three month periods ended March 31, 2017 and 2016. Certain investments that were valued at NAV as of December 31, 2016 were transferred to Level 2 from the NAV category in the three months ended March 31, 2017, as these investments were valued based on a probable transaction value as of the reporting date that differs from NAV.

16

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

The following tables present, at March 31, 2017 and December 31, 2016, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

March 31, 2017

Estimated Liquidation Period of Investments Not Redeemable

Investments Redeemable

Fair Value

Unfunded Commitments

% of Fair Value Not Redeemable

% Next 5 Years

% 5-10 Years

% Thereafter

Redemption Frequency

Redemption Notice Period

Alternativeinvestment funds:

Hedge funds

$

5,974

$

-

NA

NA

NA

NA

(a)

<30-60 days

Funds of funds

505

-

NA

NA

NA

NA

(b)

<30-90 days

Other

568

-

NA

NA

NA

NA

(c)

<30-60 days

Debt funds

6

-

NA

NA

NA

NA

(d)

30 days

Equity funds

42

-

NA

NA

NA

NA

(e)

<30-90 days

Private equity funds:

Equity growth

81,753

9,183

(f)

100

%

14

%

40

%

46

%

NA

NA

Total

$

88,848

$

9,183

(a) weekly (48%), monthly (2%) and quarterly (50%)

(b) monthly (98%) and quarterly (2%)

(c) daily (6%) and monthly (94%)

(d) daily (100%)

(e) daily (18%), monthly (51%) and quarterly (31%)

(f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,904 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

December 31, 2016

Estimated Liquidation Period of Investments Not Redeemable

Investments Redeemable

Fair Value

Unfunded Commitments

% of Fair Value Not Redeemable

% Next 5 Years

% 5-10 Years

% Thereafter

Redemption Frequency

Redemption Notice Period

Alternativeinvestment funds:

Hedge funds

$

6,190

$

-

NA

NA

NA

NA

(a)

<30-60 days

Funds of funds

492

-

NA

NA

NA

NA

(b)

<30-90 days

Other

443

-

NA

NA

NA

NA

(c)

<30-60 days

Debt funds

6

-

NA

NA

NA

NA

(d)

30 days

Equity funds

39

-

NA

NA

NA

NA

(e)

<30-90 days

Private equity funds:

Equity growth

90,824

9,183

(f)

100

%

12

%

33

%

55

%

NA

NA

Mezzanine debt

31,597

-

100

%

-

-

100

%

NA

NA

Total

$

129,591

$

9,183

(a) weekly (73%), monthly (2%) and quarterly (25%)

(b) monthly (98%) and quarterly (2%)

(c) daily (7%) and monthly (93%)

(d) daily (100%)

(e) daily (19%), monthly (50%) and quarterly (31%)

(f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,886 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

17

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

Investment Capital Funding Commitments—At March 31, 2017, the Company’s maximum unfunded commitments for capital contributions to investment funds primarily arose from commitments to EGCP III, which amounted to $8,613. The investment period for EGCP III ended on October 12, 2016, after which point the Company’s obligation to fund capital contributions for new investments in EGCP III expired. The Company remains obligated until October 12, 2023 (or any earlier liquidation of EGCP III) to make capital contributions necessary to fund follow-on investments and to pay for fund expenses.

6. DERIVATIVES

The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, total return swap contracts on various equity and debt indices and other derivative contracts to economically hedge exposures to fluctuations in currency exchange rates, interest rates and equity and debt prices. The Company reports its derivative instruments separately as assets and liabilities unless a legal right of set-off exists under a master netting agreement enforceable by law. The Company’s derivative instruments are recorded at their fair value, and are included in “other assets” and “other liabilities” on the condensed consolidated statements of financial condition. Gains and losses on the Company’s derivative instruments are generally included in “interest income” and “interest expense”, respectively, or “revenue-other”, depending on the nature of the underlying item, in the condensed consolidated statements of operations.

In addition to the derivative instruments described above, the Company records derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements, the fair value of which is based on the value of the underlying investments, adjusted for estimated forfeitures, and is included in “accrued compensation and benefits” in the condensed consolidated statements of financial condition. Changes in the fair value of the derivative liabilities are included in “compensation and benefits” in the condensed consolidated statements of operations, the impact of which equally offsets the changes in the fair value of investments which are currently expected to be delivered upon settlement of LFI and other similar deferred compensation arrangements, which are reported in “revenue-other” in the condensed consolidated statements of operations.

The table below presents the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
Derivative Assets:
Forward foreign currency exchange rate contracts	$	3,937	$	1,993
Total return swaps and other (a)		120		-
	$	4,057	$	1,993
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	736	$	2,792
Total return swaps and other (a)		3,547		9,043
LFI and other similar deferred compensation arrangements		174,740		170,388
	$	179,023	$	182,223

(a) For total return swaps, amounts represent the netting of gross derivative assets and liabilities of $197 and $3,624 as of March 31, 2017, respectively, and $357 and $9,400 as of December 31, 2016, 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 $12,376 and $16,996 as of March 31, 2017 and December 31, 2016, respectively.

18

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2017 and 2016, were as follows:

	Three Months Ended
	March 31,
	2017			2016
Forward foreign currency exchange rate contracts	$	1,472		$	(7,300	)
LFI and other similar deferred compensation arrangements		(7,353	)		2,514
Total return swaps and other		(5,385	)		(699	)
Total	$	(11,266	)	$	(5,485	)

7. PROPERTY

At March 31, 2017 and December 31, 2016, property consisted of the following:

	Estimated Depreciable		March 31,		December 31,
	Life in Years		2017		2016
Buildings		33	$	134,711	$	132,821
Leasehold improvements	3-20			177,165		175,810
Furniture and equipment	3-10			180,120		172,353
Construction in progress				10,427		14,038
Total				502,423		495,022
Less - Accumulated depreciation and amortization				296,280		286,001
Property			$	206,143	$	209,021

8. GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at March 31, 2017 and December 31, 2016 are presented below:

	March 31,		December 31,
	2017		2016
Goodwill	$	379,808	$	373,117
Other intangible assets (net of accumulated amortization)		8,100		8,907
	$	387,908	$	382,024

At March 31, 2017 and December 31, 2016, goodwill of $315,267 and $308,576, 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 three month periods ended March 31, 2017 and 2016 are as follows:

	Three Months Ended
	March 31,
	2017		2016
Balance, January 1	$	373,117	$	320,761
Foreign currency translation adjustments		6,691		6,289
Balance, March 31	$	379,808	$	327,050

All changes in the carrying amount of goodwill for the three month periods ended March 31, 2017 and 2016 are attributable to the Company’s Financial Advisory segment.

19

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

The gross cost and accumulated amortization of other intangible assets as of March 31, 2017 and December 31, 2016, by major intangible asset category, are as follows:

	March 31, 2017						December 31, 2016
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	35,279	$	27,744	$	7,535	$	35,259	$	26,984	$	8,275
Management fees, customer relationships    and non-compete agreements		33,730		33,165		565		33,728		33,096		632
	$	69,009	$	60,909	$	8,100	$	68,987	$	60,080	$	8,907

Amortization expense of intangible assets, included in “amortization and other acquisition-related costs” in the condensed consolidated statements of operations, for the three month periods ended March 31, 2017 and 2016 was $829 and $644, respectively. Estimated future amortization expense is as follows:

Year Ending December 31,	Amortization Expense (a)
2017 (April 1 through December 31)	$	6,562
2018		1,412
2019		74
2020		52
Total amortization expense	$	8,100

(a) Approximately 26% of intangible asset amortization is attributable to a noncontrolling interest.

9. SENIOR DEBT

Senior debt is comprised of the following as of March 31, 2017 and December 31, 2016:

							Outstanding as of
	Initial			Annual			March 31, 2017						December 31, 2016
	Principal Amount		Maturity Date	Interest Rate(a)			Principal		Unamortized Debt Costs		Carrying Value		Principal		Unamortized Debt Costs		Carrying Value
Lazard Group 2020    Senior Notes		500,000	11/14/20		4.25	%	$	500,000	$	3,339	$	496,661	$	500,000	$	3,569	$	496,431
Lazard Group 2025    Senior Notes		400,000	2/13/25		3.75	%		400,000		3,714		396,286		400,000		3,833		396,167
Lazard Group 2027    Senior Notes		300,000	3/1/27		3.625	%		300,000		3,904		296,096		300,000		3,998		296,002
Total							$	1,200,000	$	10,957	$	1,189,043	$	1,200,000	$	11,400	$	1,188,600

(a) The effective interest rates of Lazard Group’s 4.25% senior notes due November 14, 2020 (the “2020 Notes”), Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”) and Lazard Group’s 3.625% senior notes due March 1, 2027  (the “2027 Notes”) are 4.43%, 3.87% and 3.76%, respectively.

On September 25, 2015, Lazard Group entered into an Amended and Restated Credit Agreement for a five-year $150,000 senior revolving credit facility with a group of lenders (the “Amended and Restated Credit Agreement”), which expires in September 2020. The Amended and Restated Credit Agreement amended and restated the previous credit agreement dated September 25, 2012. Borrowings under the Amended and Restated Credit Agreement generally will bear interest at LIBOR plus an applicable margin for specific interest periods determined based on Lazard Group’s highest credit rating from an internationally recognized credit agency. At March 31, 2017 and December 31, 2016, no amounts were outstanding under the Amended and Restated Credit Agreement.

20

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

The Amended and Restated Credit Agreement, the indenture and the supplemental indentures relating to Lazard Group’s senior notes contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. As of March 31, 2017, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured.

As of March 31, 2017, the Company had approximately $172,000 in unused lines of credit available to it, including the credit facility provided under the Amended and Restated Credit Agreement, and unused lines of credit available to LFB of approximately $21,000 (at March 31, 2017 exchange rates).

The Company’s senior debt at March 31, 2017 and December 31, 2016 is carried at historical amounts of $1,189,043 and $1,188,600, respectively. At those dates, the fair value of such senior debt was approximately $1,219,000 and $1,204,000, respectively. The fair value of the Company’s senior debt is based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

10. COMMITMENTS AND CONTINGENCIES

Leases—The Company has various leases and other contractual commitments arising in the ordinary course of business.

Guarantees—In the normal course of business, LFB provides indemnifications to third parties to protect them in the event of non-performance by its clients. At March 31, 2017, LFB had $3,174 of such indemnifications and held $3,092 of collateral/counter-guarantees to secure these commitments. The Company believes the likelihood of loss with respect to these indemnities is remote. Accordingly, no liability is recorded in the condensed consolidated statement of financial condition.

Business Acquisitions—For businesses acquired in 2016, consideration consists of (i) previously paid one-time cash payments, 60,817 shares of Class A common stock subject to non-compete provisions, and non-contingent interests exchangeable into 204,651 shares of Class A common stock, and (ii) up to 810,742 additional shares of Class A common stock that are subject to certain performance thresholds. As of March 31, 2017, none of the contingent shares had been earned.

Other Commitments—The Company has various other contractual commitments arising in the ordinary course of business. In addition, from time to time, each of LFB and LFNY may enter into underwriting commitments in which it will participate as an underwriter. At March 31, 2017, LFB and LFNY had no such underwriting commitments.

See Notes 5 and 13 for information regarding commitments relating to investment capital funding commitments and obligations to fund our pension plans, respectively.

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

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

21

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

11. STOCKHOLDERS’ EQUITY

Share Repurchase Program—During the three month period ended March 31, 2017 and since 2014, the Board of Directors of Lazard authorized the repurchase of Class A common stock as set forth in the table below:

Date	Repurchase Authorization		Expiration
April 2014	$	200,000	December31, 2015
February 2015	$	150,000	December31, 2016
January 2016	$	200,000	December31, 2017
April 2016	$	113,182	December31, 2017
November 2016	$	236,000	December31, 2018

The Company expects that the share repurchase program will primarily be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from quarter to quarter due to a variety of factors. Purchases with respect to such program are set forth in the table below:

Three Months Ended March 31:	Number of Shares Purchased		Average Price Per Share
2016		2,424,571	$	34.29
2017		2,464,967	$	43.02

During the three month periods ended March 31, 2017 and 2016, certain of our executive officers received Class A common stock in connection with the vesting of previously-granted deferred equity incentive awards. The vesting of such equity awards gave rise to a tax payable by the executive officers, and, consistent with our past practice, the Company purchased shares of Class A common stock from the executive officers equal in value to all or a portion of the estimated amount of such tax. In addition, during the three month period ended March 31, 2017, the Company purchased shares of Class A common stock from an executive officer. The aggregate value of all such purchases during the three month periods ended March 31, 2017 and 2016 was approximately $14,700 and $3,100, respectively.

As of March 31, 2017, a total of $249,078 of share repurchase authorization remained available under the Company’s share repurchase program, $13,078 of which will expire on December 31, 2017 and $236,000 of which will expire on December 31, 2018.

During the three month period ended March 31, 2017, the Company had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

Preferred Stock—Lazard Ltd has 15,000,000 authorized shares of preferred stock, par value $0.01 per share, inclusive of its Series A and Series B preferred stock. Series A and Series B preferred shares were issued in connection with certain prior year business acquisitions and were each non-participating securities convertible into Class A common stock, and had no voting or dividend rights. As of both March 31, 2017 and December 31, 2016, no shares of Series A or Series B preferred stock were outstanding.

22

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The tables below reflect the balances of each component of AOCI at March 31, 2017 and 2016 and activity during the three month periods then ended:

	Currency Translation Adjustments			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2017	$	(155,204	)	$	(159,020	)	$	(314,224	)	$	(2	)	$	(314,222	)
Activity January 1 to March 31, 2017:
Other comprehensive income (loss) before    reclassifications		16,932			(495	)		16,437			-			16,437
Adjustments for items reclassified to earnings,    net of tax					1,086			1,086			-			1,086
Net other comprehensive income		16,932			591			17,523			-			17,523
Balance, March 31, 2017	$	(138,272	)	$	(158,429	)	$	(296,701	)	$	(2	)	$	(296,699	)

	Currency Translation Adjustments			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2016	$	(97,284	)	$	(137,073	)	$	(234,357	)	$	(1	)	$	(234,356	)
Activity January 1 to March 31, 2016:
Other comprehensive income (loss) before    reclassifications		11,739			(141	)		11,598			-			11,598
Adjustments for items reclassified to earnings,    net of tax		-			1,186			1,186			-			1,186
Net other comprehensive income		11,739			1,045			12,784			-			12,784
Balance, March 31, 2016	$	(85,545	)	$	(136,028	)	$	(221,573	)	$	(1	)	$	(221,572	)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Amortization relating to employee benefit plans (a)	$	1,362	$	1,579
Less - related income taxes		276		393
Total reclassifications, net of tax	$	1,086	$	1,186

(a) Included in the computation of net periodic benefit cost (see Note 13). Such amounts are included in “compensation and benefits” expense on the condensed consolidated statements of operations.

Noncontrolling Interests—Noncontrolling interests principally represent interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own.

23

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

The tables below summarize net income attributable to noncontrolling interests for the three month periods ended March 31, 2017 and 2016 and noncontrolling interests as of March 31, 2017 and December 31, 2016 in the Company’s condensed consolidated financial statements:

	Net Income Attributable to Noncontrolling Interests
	Three Months Ended
	March 31,
	2017		2016
Edgewater	$	2,877	$	3,900

	Noncontrolling Interests as of
	March 31,		December 31,
	2017		2016
Edgewater	$	59,533	$	57,238
Other		577		588
Total	$	60,110	$	57,826

Dividends Declared, April 26, 2017—On April 26, 2017, the Board of Directors of Lazard declared a quarterly dividend of $0.41 per share on our Class A common stock, payable on May 19, 2017, to stockholders of record on May 8, 2017.

12. INCENTIVE PLANS

Share-Based Incentive Plan Awards

A description of Lazard Ltd’s 2008 Plan and 2005 Equity Incentive Plan (the “2005 Plan”) and activity with respect thereto during the three month periods ended March 31, 2017 and 2016 is presented below.

Shares Available Under the 2008 Plan and 2005 Plan

The 2008 Plan authorizes the issuance of shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and other share-based awards. Under the 2008 Plan, the maximum number of shares available is based on a formula that limits the aggregate number of shares that may, at any time, be subject to awards that are considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock.

The 2005 Plan authorized the issuance of up to 25,000,000 shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs and other share-based awards. Each RSU or similar award granted under the 2005 Plan represents a contingent right to receive one share of Class A common stock, at no cost to the recipient. The fair value of such awards is generally determined based on the closing market price of Class A common stock at the date of grant. The 2005 Plan expired in the second quarter of 2015, although unvested awards granted under the 2005 Plan remain outstanding and continue to be subject to its terms.

24

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

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 for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Share-based incentive awards:
RSUs	$	55,941	$	54,408
PRSUs		11,782		16,689
Restricted Stock		9,649		23,476
DSUs		155		65
Total	$	77,527	$	94,638

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

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

The Company’s share-based incentive plans and awards are described below.

RSUs and DSUs

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

RSUs generally include a dividend participation right that provides that during vesting periods each RSU is attributed additional RSUs (or fractions thereof) equivalent to any dividends paid on Class A common stock during such period. During the three month periods ended March 31, 2017 and 2016, 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:

	Three Months Ended
	March 31,
	2017		2016
Number of RSUs issued		613,795		700,651
Charges to retained earnings, net of estimated forfeitures	$	25,977	$	23,793

Non-executive members of the Board of Directors (“Non-Executive Directors”) receive approximately 55% of their annual compensation for service on the Board of Directors and its committees in the form of DSUs, which resulted in 1,551 DSUs granted during the three month period ended March 31, 2017.  Their remaining compensation is payable in cash, which they may elect to receive in the form of additional DSUs under the Directors’ Fee Deferral Unit Plan described below. DSUs are convertible into shares of Class A common stock at the time of cessation of service to the Board of Directors and, for purposes of calculating diluted net

25

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

income per share, are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. DSUs include a cash dividend participation right equivalent to dividends paid on Class A common stock.

The Company’s Directors’ Fee Deferral Unit Plan permits the Non-Executive Directors to elect to receive additional DSUs in lieu of some or all of their cash fees. The number of DSUs granted to a Non-Executive Director pursuant to this election will equal the value of cash fees that the applicable Non-Executive Director has elected to forego pursuant to such election, divided by the market value of a share of Class A common stock on the date immediately preceding the date of the grant. During the three month periods ended March 31, 2017 and 2016, 3,555 and 2,110 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 three month periods ended March 31, 2017 and 2016:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2017		11,698,138		$	40.65		276,725	$	36.05
Granted (including 613,795 RSUs relating to dividend    participation)		4,926,935		$	43.05		5,106	$	42.91
Forfeited		(19,077	)	$	39.88				-
Vested		(3,621,454	)	$	45.53				-
Balance, March 31, 2017		12,984,542		$	40.20		281,831	$	36.18
Balance, January 1, 2016		9,599,658		$	44.06		312,670	$	35.98
Granted (including 700,651 RSUs relating to dividend    participation)		6,140,020		$	34.54		2,110	$	31.47
Forfeited		(55,826	)	$	41.58		-		-
Vested		(4,100,192	)	$	39.12		-		-
Balance, March 31, 2016		11,583,660		$	40.78		314,780	$	35.95

In connection with RSUs that vested during the three month periods ended March 31, 2017 and 2016, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,229,531 and 1,327,399 shares of Class A common stock during such respective three month periods. Accordingly, 2,391,923 and 2,772,793 shares of Class A common stock held by the Company were delivered during the three month periods ended March 31, 2017 and 2016, respectively.

As of March 31, 2017, estimated unrecognized RSU compensation expense was approximately $260,079, with such expense expected to be recognized over a weighted average period of approximately 1.0 year subsequent to March 31, 2017.

26

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 three month periods ended March 31, 2017 and 2016:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,655,073		$	40.95
Granted		841,355		$	42.58
Forfeited		(11,087	)	$	41.38
Vested		(263,457	)	$	47.93
Balance, March 31, 2017		2,221,884		$	40.73
Balance, January 1, 2016		713,738		$	47.12
Granted		1,795,258		$	36.78
Forfeited		(25,662	)	$	39.89
Vested		(627,110	)	$	36.61
Balance, March 31, 2016		1,856,224		$	40.77

In connection with shares of restricted Class A common stock that vested during the three month periods ended March 31, 2017 and 2016, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 108,239 and 77,795 shares of Class A common stock during such respective three month periods. Accordingly, 155,218 and 549,315 shares of Class A common stock held by the Company were delivered during the three month periods ended March 31, 2017 and 2016, respectively.

The restricted stock awards include a cash dividend participation right equivalent to dividends paid on Class A common stock during the period, which will vest concurrently with the underlying restricted stock award. At March 31, 2017, estimated unrecognized restricted stock expense was approximately $55,675, with such expense to be recognized over a weighted average period of approximately 0.9 years subsequent to March 31, 2017.

PRSUs

PRSUs are RSUs that are subject to both performance-based and service-based vesting conditions. The number of shares of Class A common stock that a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance metrics that relate to the Company’s performance over a three-year period. The target number of shares of Class A common stock subject to each PRSU is one; however, based on the achievement of the performance criteria, the number of shares of Class A common stock that may be received in connection with each PRSU generally can range from zero to two times the target number.  PRSUs will vest on a single date three years following the date of the grant, provided the applicable service and performance conditions are satisfied. In addition, the performance metrics applicable to each PRSU will be evaluated on an annual basis at the end of each fiscal year during the performance period and, if the Company has achieved a threshold level of performance with respect to the fiscal year, 25% of the target number of shares of Class A common stock subject to each PRSU will no longer be at risk of forfeiture based on the achievement of performance criteria. PRSUs include dividend participation rights that provide that during vesting periods, the target number of PRSUs (or, following the relevant performance period, the actual number of shares of Class A common stock that are no longer subject to performance conditions) receive dividend equivalents at the same rate that dividends are paid on Class A common stock during such periods. These dividend equivalents are credited as RSUs that are not subject to the performance-based vesting criteria but are otherwise subject to the same restrictions as the underlying PRSUs to which they relate.

27

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

The following is a summary of activity relating to PRSUs during the three month periods ended March 31, 2017 and 2016:

	PRSUs			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,590,756		$	40.76
Granted (a)		458,113		$	43.76
Vested		(752,770	)	$	42.26
Balance, March 31, 2017		1,296,099		$	40.95
Balance, January 1, 2016		1,019,038		$	44.49
Granted (a)		627,956		$	32.91
Vested		(417,018	)	$	38.43
Balance, March 31, 2016		1,229,976		$	40.63

(a) Represents PRSU awards granted during the relevant year at the target payout level.

In connection with certain PRSUs that vested during the three month periods ended March 31, 2017 and 2016, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 85,629 and 64,169 shares of Class A common stock during such respective three month periods. Accordingly, 667,141 and 352,849 shares of Class A common stock held by the Company were delivered during the three month periods ended March 31, 2017 and 2016, respectively.

Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of Class A common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. As of March 31, 2017, the total estimated unrecognized compensation expense was approximately $20,853, and the Company expects to amortize such expense over a weighted-average period of approximately 0.7 years subsequent to March 31, 2017.

LFI and Other Similar Deferred Compensation Arrangements

Commencing in February 2011, the Company granted LFI to eligible employees. In connection with LFI and other similar deferred compensation arrangements, which generally require future service as a condition for vesting, the Company recorded a prepaid compensation asset and a corresponding compensation liability on the grant date based upon the fair value of the award. The prepaid asset is amortized on a straight-line basis over the applicable vesting periods or requisite service periods (which are generally similar to the comparable periods for RSUs), and is charged to “compensation and benefits” expense within the Company’s condensed consolidated statement of operations. LFI and similar deferred compensation arrangements that do not require future service are expensed immediately. The related compensation liability is accounted for at fair value as a derivative liability, which contemplates the impact of estimated forfeitures, and is adjusted for changes in fair value primarily related to changes in value of the underlying investments.

28

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the three month periods ended March 31, 2017 and 2016:

	Prepaid Compensation Asset			Compensation Liability
Balance, January 1, 2017	$	49,650		$	170,388
Granted		77,580			77,580
Settled		-			(81,559	)
Forfeited		(93	)		(133	)
Amortization		(12,491	)		-
Change in fair value related to:
Increase in fair value of underlying investments		-			7,353
Adjustment for estimated forfeitures		-			532
Other		(12	)		579
Balance, March 31, 2017	$	114,634		$	174,740

	Prepaid Compensation Asset			Compensation Liability
Balance, January 1, 2016	$	75,703		$	193,574
Granted		51,871			51,871
Settled		-			(64,488	)
Forfeited		(340	)		(681	)
Amortization		(19,436	)		-
Change in fair value related to:
Decrease in fair value of underlying investments		-			(2,514	)
Adjustment for estimated forfeitures	-				1,804
Other		132			913
Balance, March 31, 2016	$	107,930		$	180,479

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 1.0 year subsequent to March 31, 2017.

The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Amortization, net of forfeitures	$	12,983	$	20,899
Change in the fair value of underlying investments		7,353		(2,514	)
Total	$	20,336	$	18,385

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, until December 2016, in the U.S., a partially funded contributory medical post-retirement plan covering certain qualifying U.S. employees (the “medical plan” and together with the pension plans, the “post-retirement plans”). The Company also offers defined contribution plans to its employees. The post-retirement plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense on the condensed consolidated statements of operations.

29

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

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 (the “Trustees”). Management also evaluates from time to time whether to make voluntary contributions to the plans.

The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s post-retirement plans for the three month periods ended March 31, 2017 and 2016:

	Pension Plans						Medical Plan
	Three Months Ended March 31,
	2017			2016			2017		2016
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	340		$	307		$	-	$	4
Interest cost		3,981			5,213			-		45
Expected return on plan assets		(6,105	)		(7,166	)		-		-
Amortization of:
Prior service cost		30			590			-		-
Net actuarial loss (gain)		1,332			989			-		-
Net periodic benefit cost (credit)	$	(422	)	$	(67	)	$	-	$	49

14. INCOME TAXES

Lazard Ltd, through its subsidiaries, is subject to U.S. federal income taxes on all of its U.S. operating income, as well as on the portion of non-U.S. income attributable to its U.S. subsidiaries. In addition, Lazard Ltd, through its subsidiaries, is subject to state and local taxes on its income apportioned to various state and local jurisdictions. Outside the U.S., Lazard Group operates principally through subsidiary corporations that are subject to local income taxes in foreign jurisdictions. Lazard Group is also subject to New York City Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.

The Company recorded income tax provisions of $39,767 and $27,654 for the three month periods ended March 31, 2017 and 2016, respectively, representing effective tax rates of 26.5% and 28.1%, respectively. The difference between the U.S. federal statutory rate of 35.0% and the effective tax rates reflected above principally relates to (i) taxes payable to foreign jurisdictions that are not offset against U.S. income taxes, (ii) foreign source income (loss) not subject to U.S. income taxes (including interest on intercompany financings), (iii) change in the U.S. federal valuation allowance affecting the provision for income taxes, (iv) excess net tax benefit for share-based incentive compensation, and (v) U.S. state and local taxes, which are incremental to the U.S. federal statutory tax rate.

On January 1, 2017, the Company adopted new accounting guidance on share-based incentive compensation. Upon adoption, the Company recognized excess tax benefits of $7,356 from the vesting of share-based incentive compensation in the provision for income taxes in the condensed consolidated statements of operations for the three month period ended March 31, 2017. The Company also recorded deferred tax assets of $81,544, net of a valuation allowance of $12,090, as of January 1, 2017, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based incentive compensation, with an offsetting adjustment to retained earnings. See Note 2 for further information on the adoption of this new guidance.

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

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LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

15. NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company’s basic and diluted net income per share calculations for the three month periods ended March 31, 2017 and 2016 are computed as described below.

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods.

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.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock required to settle share-based incentive compensation.

The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month periods ended March 31, 2017 and 2016 are presented below:

	Three Months Ended
	March 31,
	2017		2016
Net income attributable to Lazard Ltd - basic	$	107,553	$	66,823
Net income attributable to Lazard Ltd - diluted	$	107,553	$	66,823
Weighted average number of shares of Class A common    stock outstanding		122,531,221		125,968,430
Add - adjustment for shares of Class A common stock    issuable on a non-contingent basis		283,942		72,011
Weighted average number of shares of Class A common    stock outstanding - basic		122,815,163		126,040,441
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A    common stock issuable from share-based    incentive compensation		9,874,212		6,850,843
Weighted average number of shares of Class A common stock    outstanding - diluted		132,689,375		132,891,284
Net income attributable to Lazard Ltd per share of Class    A common stock:
Basic	$	0.88	$	0.53
Diluted	$	0.81	$	0.50

16. RELATED PARTIES

Sponsored Funds

The Company serves as an investment advisor for certain affiliated investment companies and fund entities and receives management fees and, for the alternative investment funds, performance fees for providing such services. Investment advisory fees relating to such services were $140,577 and $118,910 for the three month periods ended March 31, 2017 and 2016, respectively, and

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LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $52,867 and $49,944 remained as receivables at March 31, 2017 and December 31, 2016, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition.

Tax Receivable Agreement

The Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “Amended and Restated Tax Receivable Agreement”), between Lazard and LTBP Trust, a Delaware statutory trust (the “Trust”), provides for the payment by our subsidiaries to the Trust of (i) approximately 45% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of certain increases in tax basis and of certain other tax benefits related to the Amended and Restated Tax Receivable Agreement, and (ii) an amount that we currently expect will approximate 85% of the cash tax savings that may arise from tax benefits attributable to payments under the Amended and Restated Tax Receivable Agreement. Our subsidiaries expect to benefit from the balance of cash savings, if any, in income tax that our subsidiaries realize. Any amount paid by our subsidiaries to the Trust will generally be distributed to the owners of the Trust, including our executive officers, in proportion to their beneficial interests in the Trust.

For purposes of the Amended and Restated Tax Receivable Agreement, cash savings in income and franchise tax will be computed by comparing our subsidiaries’ actual income and franchise tax liability to the amount of such taxes that our subsidiaries would have been required to pay had there been no increase in the tax basis of certain tangible and intangible assets of Lazard Group attributable to our subsidiaries’ interest in Lazard Group and had our subsidiaries not entered into the Amended and Restated Tax Receivable Agreement.  The term of the Amended and Restated Tax Receivable Agreement will continue until approximately 2033 or, if earlier, until all relevant tax benefits have been utilized or expired.

 The amount of the Amended and Restated Tax Receivable Agreement liability is an undiscounted amount based upon currently enacted tax laws, the current structure of the Company and various assumptions regarding potential future operating profitability. The assumptions reflected in the estimate involve significant judgment. As such, the actual amount and timing of payments under the Amended and Restated Tax Receivable Agreement could differ materially from our estimates. Any changes in the amount of the estimated liability would be recorded as a non-compensation expense in the condensed consolidated statement of operations. Adjustments, if necessary, to the related deferred tax assets would be recorded through the “provision (benefit) for income taxes”.

The cumulative liability relating to our obligations under the Amended and Restated Tax Receivable Agreement as of March 31, 2017 and December 31, 2016 was $512,874 and $513,610, respectively, and is recorded in “tax receivable agreement obligation” on the condensed consolidated statements of financial condition. The balance at March 31, 2017 reflects a payment made under the Amended and Restated Tax Receivable Agreement in the first quarter of 2017 of $736.

Other

See Note 11 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers.

17. REGULATORY AUTHORITIES

LFNY is a U.S. registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the 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. In addition, the ratio of aggregate indebtedness (as defined) to net capital may not exceed 15:1. At March 31, 2017, LFNY’s regulatory net capital was $79,663, which exceeded the minimum requirement by $74,877. LFNY’s aggregate indebtedness to net capital ratio was 0.90:1 as of March 31, 2017.

Certain U.K. subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (collectively, the “U.K. Subsidiaries”) are regulated by the Financial Conduct Authority. At March 31, 2017, the aggregate regulatory net capital of the U.K. Subsidiaries was $128,206, which exceeded the minimum requirement by $112,123.

32

LAZARD LTD

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

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

CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) for its banking activities conducted through its subsidiary, LFB. LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by LFG and other clients, and asset-liability management. The investment services activities of the Paris group, exercised through LFB and other subsidiaries of CFLF, primarily LFG (asset management), also are subject to regulation and supervision by the Autorité des Marchés Financiers. At March 31, 2017, the consolidated regulatory net capital of CFLF was $133,162, which exceeded the minimum requirement set for regulatory capital levels by $88,708. In addition, pursuant to the consolidated supervision rules in the European Union, LFB, in particular, as a French credit institution, is required to be supervised by a regulatory body, either in the U.S. or in the European Union. During the third quarter of 2013, the Company and the ACPR agreed on terms for the consolidated supervision of LFB and certain other non-Financial Advisory European subsidiaries of the Company (referred to herein, on a combined basis, as the “combined European regulated group”) under such rules. Under this supervision, the combined European regulated group is required to comply with minimum requirements for regulatory net capital to be reported on a quarterly basis and satisfy periodic financial and other reporting obligations. At December 31, 2016, the regulatory net capital of the combined European regulated group was $159,102, which exceeded the minimum requirement set for regulatory capital levels by $84,949. Additionally, the combined European regulated group, together with our European Financial Advisory entities, is required to perform an annual risk assessment and provide certain other information on a periodic basis, including financial reports and information relating to financial performance, balance sheet data and capital structure.

Certain other U.S. and non-U.S. subsidiaries are subject to various capital adequacy requirements promulgated by various regulatory and exchange authorities in the countries in which they operate. At March 31, 2017, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $120,725, which exceeded the minimum required capital by $94,924.

At March 31, 2017, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

Any new or expanded rules and regulations that may be adopted in countries in which we operate (including regulations that have not yet been proposed) could affect us in other ways.

18. SEGMENT INFORMATION

The Company’s reportable segments offer different products and services and are managed separately as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed to determine the allocation of resources and to assess its performance. The Company’s principal operating activities are included in its Financial Advisory and Asset Management business segments as described in Note 1 above. In addition, as described in Note 1, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month periods ended March 31, 2017 and 2016 is prepared using the following methodology:

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

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

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

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

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

33

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
		March 31,
		2017			2016
Financial Advisory	Net Revenue	$	335,812		$	266,014
	Operating Expenses		262,751			227,078
	Operating Income	$	73,061		$	38,936
Asset Management	Net Revenue	$	283,363		$	245,759
	Operating Expenses		188,751			175,161
	Operating Income	$	94,612		$	70,598
Corporate	Net Revenue	$	4,289		$	(13,555	)
	Operating Expenses		21,765			(2,398	)
	Operating Loss	$	(17,476	)	$	(11,157	)
Total	Net Revenue	$	623,464		$	498,218
	Operating Expenses		473,267			399,841
	Operating Income	$	150,197		$	98,377

	As Of
	March 31, 2017		December 31, 2016
Total Assets
Financial Advisory	$	828,374	$	907,035
Asset Management		572,915		645,653
Corporate		2,983,969		3,003,820
Total	$	4,385,258	$	4,556,508

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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, 2016 (the “Form 10-K”). All references to “2017,” “2016,” “first quarter,” “three months” or “the period” refer to, as the context requires, the three month periods ended March 31, 2017 and March 31, 2016.

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,” “could,” “would,” “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 global or regional financial markets;

• a decline in our revenues, for example due to 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 and this Form 10-Q 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:

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

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

• ability to offset stockholder dilution through share repurchases;

• possible or assumed future results of operations and operating cash flows;

• strategies and investment policies;

• financing plans and the availability of short-term borrowing;

• competitive position;

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

• potential growth opportunities available to our businesses;

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• recruitment and retention of our managing directors and employees;

• potential levels of compensation expense, including awarded compensation and benefits expense and adjusted compensation and benefits expense, and non-compensation expense;

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

• likelihood of success and impact of litigation;

• expected tax rates, including effective tax rates;

• changes in interest and tax rates;

• availability of certain tax benefits, including certain potential deductions;

• potential impact of certain events or circumstances on our financial statements;

• changes in foreign currency exchange 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 website, its twitter account (twitter.com/Lazard) and other social media sites 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 our Asset Management business. Investors can link to Lazard Ltd, Lazard Group and their operating company websites through http://www.lazard.com. Our websites and social media sites 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 43 cities in key business and financial centers across 27 countries throughout North America, Europe, Asia, Australia, the Middle East, and Central and South America.

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

We operate in cyclical businesses across multiple geographies, industries and asset classes. In recent years, we have expanded our geographic reach, bolstered our industry expertise and continued to build in growth areas. Companies, government bodies and investors seek independent advice with a geographic perspective, deep understanding of capital structure, informed research and knowledge of global, regional and local 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, corporate preparedness and various other financial matters, and

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

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In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness, certain contingent obligations, and assets and liabilities associated with Lazard Group’s Paris-based subsidiary, Lazard Frères Banque SA (“LFB”).

Our consolidated net revenue was derived from the following segments:

	Three Months Ended
	March 31,
	2017			2016
Financial Advisory		54	%		53	%
Asset Management		45			49
Corporate		1			(2	)
Total		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, historically, investments through (i) Edgewater, our Chicago-based private equity firm, (ii) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies and (iii) a fund targeting significant noncontrolling-stake investments in established private companies. We also make investments to seed our Asset Management strategies.

Business Environment and Outlook

Economic and global financial market conditions can materially affect our financial performance. As described above, our principal sources of revenue are derived from activities in our Financial Advisory and Asset Management business segments. As our Financial Advisory revenues are 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 for developed and emerging markets at March 31, 2017 generally increased as compared to such indices at March 31, 2016 and December 31, 2016. In the global M&A markets during the first quarter of 2017, the value and number of all completed M&A transactions decreased as compared to the same period in the prior year, as did the value of the subset of such transactions involving values greater than $500 million. During the same time, the value of all announced M&A transactions, including the subset of such transactions involving values greater than $500 million, increased. During the first quarter of 2017, global restructuring activity, as measured by the number of corporate defaults, decreased as compared to the first quarter of 2016, primarily due to a lower level of defaults in the commodity sectors.

On an ongoing basis, regional, macroeconomic and geopolitical factors, including any potential regional tax or regulatory reform, may impact our business. However, despite political uncertainties, overall, the global macroeconomic outlook for the near- to mid-term appears positive. The U.S. economy appears to be healthy, and the European economy seems to continue to recover. Corporate cash balances remain high, and interest rates remain low for companies with strong credit ratings. Although market volatility may affect our business from time to time, the longer-term trends appear to remain favorable for both of our businesses.

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

• Financial Advisory—The fundamentals for continued M&A activity appear to remain in place. Demand continues for expert, independent strategic advice that can be levered across geographies and our range of advisory capabilities. The global scale and breadth of our Financial Advisory business allows us to advise on large, complex cross-border transactions across a variety of industries. In addition, we believe our businesses throughout the emerging markets position us for growth in these markets, while enhancing our relationships with, and the services that we can provide to, clients in other economies. In the third quarter of 2016, we expanded our North American Financial Advisory business through the acquisition of an independent financial advisory firm based in Canada. In addition, in October 2016, we acquired the portion of MBA Lazard that we did not previously own, thereby fully integrating our Latin American operations. We believe that these transactions have augmented the strength of our Financial Advisory business throughout the Americas.

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• Asset Management—In the short to intermediate term, we expect most investor demand 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 slowly expand. Given our diversified investment platform and our ability to provide investment solutions for a global mix of clients, we believe we are positioned to benefit from growth that may occur in the asset management industry. We are continually developing and seeding new investment strategies that extend our existing platforms. Recent examples of growth initiatives include the following investment strategies: European Long/Short Equity, various Quantitative Equity strategies, various Multi-Asset strategies, a Real Assets strategy, and a Global Equity Franchise strategy.

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 Item 1A, “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 growth, earnings growth and shareholder returns, the prudent management of our costs and expenses, the efficient use of our assets and the return of capital to our shareholders.

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 M&A industry statistics, the value and number of all completed transactions, including the value of completed transactions with values greater than $500 million, decreased in the first quarter of 2017 as compared to 2016. With respect to announced M&A transactions, the value of all transactions, including announced transactions with values greater than $500 million, increased in the first quarter of 2017 as compared to 2016.

	Three Months Ended
	March 31,
	2017		2016		% Incr / (Decr)
	($ in billions)
Completed M&A Transactions:
All deals:
Value	$	794	$	904		(12	)%
Number		9,009		9,954		(9	)%
Deals Greater than $500 million:
Value	$	602	$	685		(12	)%
Number		270		270		0	%
Announced M&A Transactions:
All deals:
Value	$	811	$	743		9	%
Number		9,686		10,034		(3	)%
Deals Greater than $500 million:
Value	$	597	$	522		14	%
Number		272		245		11	%

Source: Dealogic as of April 5, 2017.

Global restructuring activity during the first quarter of 2017, as measured by the number of corporate defaults, decreased as compared to the first quarter of 2016. The number of defaulting issuers decreased to 21 in the first quarter of 2017, according to Moody’s Investors Service, Inc., as compared to 33 in the first quarter of 2016, primarily due to a lower level of defaults in the commodity sectors.

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Net revenue trends in Financial Advisory for M&A and Strategic Advisory and Restructuring are generally correlated to the level 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, our M&A and Strategic Advisory revenue, which includes M&A Advisory, Capital Advisory, Capital Raising and Sovereign Advisory revenue, increased 11% in the first quarter of 2017 as compared to 2016. The industry statistics for global M&A transactions described above reflect a 12% and 9% decrease in the value and number, respectively, of all completed transactions in the first quarter of 2017 as compared to 2016. For M&A deals with values greater than $500 million, the value and number of completed transactions in the first quarter of 2017 decreased 12% and was unchanged, respectively, as compared to 2016. In addition, with respect to our restructuring activity, revenue increased 105% in the first quarter of 2017 as compared to 2016, in contrast to a 36% decrease in global default activity in the first quarter of 2017 as compared to 2016.

Asset Management

The percentage change in major equity market indices at March 31, 2017, as compared to such indices at December 31, 2016, and at March 31, 2016, is shown in the table below.

	Percentage Changes March 31, 2017 vs.
	December 31, 2016			March 31, 2016
MSCI World Index		6	%		12	%
Euro Stoxx		6	%		17	%
MSCI Emerging Market		11	%		15	%
S&P 500		6	%		15	%

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 exchange rate 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. Movements in AUM during the period generally reflect the changes in equity market indices. Our AUM at March 31, 2017 increased 9% versus AUM at December 31, 2016, primarily due to market and foreign exchange appreciation and net inflows. Average AUM for the first quarter of 2017 increased 12% as compared to average AUM in the first quarter of 2016 and 3% as compared to the fourth quarter of 2016.

Financial Statement Overview

Net Revenue

The majority of Lazard’s Financial Advisory net revenue historically has been earned from the successful completion of M&A transactions, strategic advisory matters, restructuring and capital structure advisory services, capital raising and similar transactions. The main drivers of Financial Advisory net revenue are overall M&A activity, the level of corporate debt defaults and the environment for capital raising activities, particularly in the industries and geographic markets in which Lazard focuses. In some client engagements, often those involving financially distressed companies, revenue is earned in the form of retainers and similar fees that are contractually agreed upon with each client for each assignment and are not necessarily linked to the completion of a transaction. In addition, Lazard also earns fees from providing strategic advice to clients, with such fees not being dependent on a specific transaction, and may also earn fees in connection with public and private securities offerings. 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 Lazard Asset Management LLC (together with its subsidiaries, “LAM”), Lazard Frères Gestion SAS (“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

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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 and 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 or a redemption occurs 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 interest 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” related to our Asset Management business, principal investments in private equity funds and “equity method” investments, net of hedging activities, as well as gains and losses on investments held in connection with Lazard Fund Interests (“LFI”) and 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.

Although Corporate segment net revenue during 2017 is not significant compared to Lazard’s net revenue, total assets in the Corporate segment represented 68% of Lazard’s consolidated total assets as of March 31, 2017, which are attributable to cash and cash equivalents, investments in debt and equity securities, interests in alternative investment, debt, equity and private equity funds, deferred tax assets and certain assets associated with LFB. LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by LFG and other clients, and asset-liability management.

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 2008 Incentive Compensation Plan (the “2008 Plan”), and (b) LFI 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, estimated forfeiture rates, 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 annual cost of compensation and provide the most meaningful basis for comparison of compensation and benefits expense between present, historical and future years.

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“Awarded compensation and benefits expense” for a given year is calculated using “adjusted compensation and benefits expense,” also a non-U.S. GAAP measure, as modified by the following items:

• we deduct amortization expense recorded for accounting principles generally accepted in the United States of America (“U.S. GAAP”) purposes in the fiscal year associated with deferred incentive compensation awards;

• we add incentive compensation with respect to the fiscal year, which is comprised of:

(i) the deferred incentive compensation awards granted in the year-end compensation process with respect to the fiscal year (e.g., deferred incentive compensation awards granted in 2017 related to the 2016 year-end compensation process), including Performance-based restricted stock unit (“PRSU”) awards (based on the target payout level);

(ii) the portion of investments in people (e.g., “sign-on” bonuses or retention awards) and other special deferred incentive compensation awards that is applicable to the fiscal year the award becomes effective; and

(iii) amounts in excess of the target payout level for PRSU awards at the end of their respective performance periods; 

• we reduce the amounts in (i), (ii) and (iii) above by an estimate of future forfeitures with respect to such awards; and

• we adjust for year-end foreign exchange fluctuations.

Compensation and benefits expense is the largest component of our operating expenses. We seek to maintain discipline with respect to compensation, including the rate at which we award deferred compensation. Our goal is to maintain a ratio of awarded compensation and benefits expense to operating revenue and a ratio of adjusted compensation and benefits expense to operating revenue over the cycle in the mid-to-high-50s percentage range, which compares to 55.8% and 56.5%, respectively, for the year ended December 31, 2016. While we have implemented policies and initiatives that we believe will assist us in maintaining ratios within this range, there can be no guarantee that we will continue to maintain such ratios, 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 resulting from, for example, a decrease in M&A activity, our share of the M&A market or our AUM levels, changes in the mix of revenues from our businesses or various other factors could prevent us from achieving this goal.

Our 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.

We believe that “adjusted non-compensation expense,” a non-U.S. GAAP measure, provides a more meaningful basis for our investors to assess our operating results. For calculations with respect to “adjusted non-compensation expense”, see the table under “Consolidated Results of Operations” below.

Our operating expenses also include “amortization and other acquisition-related costs”, which includes the change in fair value of the contingent consideration associated with business acquisitions.

Provision for Income Taxes

Lazard Ltd, through its subsidiaries, is subject to U.S. federal income taxes on all of its U.S. operating income, as well as on the portion of non-U.S. income attributable to its U.S. subsidiaries. In addition, Lazard Ltd, through its subsidiaries, is subject to state and local taxes on its income apportioned to various state and local jurisdictions. Outside the U.S., Lazard Group operates principally through subsidiary corporations that are subject to local income taxes in foreign jurisdictions. Lazard Group is also subject to Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City (see Note 14 of Notes to Condensed Consolidated Financial Statements for additional information).

See “Critical Accounting Policies and Estimates—Income Taxes” below and Notes 14 and 16 of Notes to Condensed Consolidated Financial Statements for additional information regarding income taxes and the tax receivable agreement obligation.

Noncontrolling Interests

Noncontrolling interests primarily consist of amounts related to Edgewater’s management vehicles that the Company is deemed to control but not own. See Note 11 of Notes to Condensed Consolidated Financial Statements for information regarding the Company’s noncontrolling interests.

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Consolidated Results of Operations

Lazard’s condensed 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 stockholders’ equity. Foreign currency remeasurement gains and losses on transactions in non-functional currencies are included in the condensed consolidated statements of operations.

A portion of our net revenue is derived from transactions that are denominated in currencies other than the U.S. Dollar. Since the middle of 2014, the value of the U.S. Dollar has strengthened against many other major currencies. As a result, net revenue for the three month period ended March 31, 2017 was negatively impacted in comparison to the prior year period. The majority of the negative impact was offset by the positive impact of the exchange rate movements on our operating expenses denominated in currencies other than the U.S. Dollar.

The condensed consolidated financial statements are prepared in conformity with 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
	March 31,
	2017			2016
	($ in thousands)
Net Revenue	$	623,464		$	498,218
Operating Expenses:
Compensation and benefits		361,801			297,210
Non-compensation		107,892			101,987
Amortization and other acquisition-related costs		3,574			644
Total operating expenses		473,267			399,841
Operating Income		150,197			98,377
Provision for income taxes		39,767			27,654
Net Income		110,430			70,723
Less - Net Income Attributable to Noncontrolling Interests		2,877			3,900
Net Income Attributable to Lazard Ltd	$	107,553		$	66,823
Operating Income, as a % of net revenue		24.1	%		19.7	%

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
	March 31,
	2017			2016
	($ in thousands)
Operating Revenue:
Net revenue	$	623,464		$	498,218
Adjustments:
Interest expense (a)		13,265			11,546
Revenue related to noncontrolling interests (b)		(4,942	)		(6,212	)
(Gains) losses on investments pertaining to LFI (c)		(7,353	)		2,514
Operating revenue	$	624,434		$	506,066

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(a) Interest expense (excluding interest expense incurred by LFB) is added back in determining operating revenue because such expense relates to corporate financing activities and 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) Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements for which a corresponding equal amount is excluded from compensation and benefits expense.

	Three Months Ended
	March 31,
	2017			2016
	($ in thousands)
Adjusted Compensation and Benefits Expense:
Total compensation and benefits expense	$	361,801		$	297,210
Adjustments:
Noncontrolling interests (a)		(1,643	)		(1,752	)
(Charges) credits pertaining to LFI (b)		(7,353	)		2,514
Adjusted compensation and benefits expense	$	352,805		$	297,972
Adjusted compensation and benefits expense, as a % of operating revenue		56.5	%		58.9	%

(a) Expenses related to the consolidation of noncontrolling interests are excluded because Lazard has no economic interest in such amounts.

(b) Represents changes in fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards for which a corresponding equal amount is excluded from operating revenue.

	Three Months Ended
	March 31,
	2017			2016
	($ in thousands)
Adjusted Non-Compensation Expense:
Total non-compensation expense	$	107,892		$	101,987
Adjustments:
Noncontrolling interests (a)		(422	)		(398	)
Adjusted non-compensation expense	$	107,470		$	101,589
Adjusted non-compensation expense, as a % of operating  revenue		17.2	%		20.1	%

(a) Expenses related to the consolidation of noncontrolling interests are excluded because the Company has no economic interest in such amounts.

	Three Months Ended
	March 31,
	2017			2016
	($ in thousands)
Earnings From Operations:
Operating revenue	$	624,434		$	506,066
Deduct:
Adjusted compensation and benefits expense		(352,805	)		(297,972	)
Adjusted non-compensation expense		(107,470	)		(101,589	)
Earnings from operations	$	164,159		$	106,505
Earnings from operations, as a % of operating revenue		26.3	%		21.0	%

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Headcount information is set forth below:

	As of
	March 31, 2017		December 31, 2016		March 31, 2016
Headcount:
Managing Directors:
Financial Advisory		159		149		146
Asset Management		97		92		96
Corporate		22		20		20
Total Managing Directors		278		261		262
Other Employees:
Business segment professionals		1,273		1,276		1,174
All other professionals and support staff		1,255		1,244		1,193
Total		2,806		2,781		2,629

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.

Three Months Ended March 31, 2017 versus March 31, 2016

The Company reported net income attributable to Lazard Ltd of $108 million, as compared to net income of $67 million in the 2016 period. The changes in the Company’s operating results during these periods are described below.

Net revenue increased $125 million, or 25%, with operating revenue increasing $118 million, or 23%, as compared to the 2016 period. Fee revenue from investment banking and other advisory activities increased $70 million, or 26%, as compared to the 2016 period, due to an increase in Restructuring and M&A and Strategic Advisory revenue. Asset management fees, including incentive fees, increased $39 million, or 17%, as compared to the 2016 period, primarily due to an increase in average AUM. In the aggregate, interest income, other revenue and interest expense increased $16 million as compared to the 2016 period, primarily due to gains in the 2017 period attributable to investments held in connection with LFI.

Compensation and benefits expense increased $65 million, or 22%, as compared to the 2016 period, primarily due to an increase in discretionary compensation associated with increased operating revenue and an increase in charges pertaining to LFI.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $353 million, an increase of $55 million, or 18%, as compared to $298 million in the 2016 period. The ratio of adjusted compensation and benefits expense to operating revenue was 56.5% for the 2017 period, as compared to 58.9% for the 2016 period and 56.5% for full-year 2016.

Non-compensation expense increased $6 million, or 6%, as compared to the 2016 period. Adjusted non-compensation expense, which excludes non-compensation costs relating to noncontrolling interests, increased $6 million, or 6%, as compared to the 2016 period. The ratio of adjusted non-compensation expense to operating revenue was 17.2% for the 2017 period, as compared to 20.1% in the 2016 period.

Amortization and other acquisition-related costs increased $3 million as compared to the 2016 period, primarily due to the change in the fair market value of contingent consideration.

Operating income increased $52 million, or 53%, as compared to the 2016 period.

Earnings from operations increased $58 million, or 54%, as compared to the 2016 period, and, as a percentage of operating revenue, was 26.3%, as compared to 21.0% in the 2016 period.

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The provision for income taxes reflects an effective tax rate of 26.5%, as compared to 28.1% for the 2016 period. The effective tax rate decreased primarily due to the Company’s adoption of new accounting guidance on share-based incentive compensation and reflects the change in the geographic mix of earnings. See Notes 2 and 14 of Notes to Condensed Consolidated Financial Statements.

Net income attributable to noncontrolling interests decreased $1 million, or 26%, as compared to the 2016 period.

Business Segments

The following is a discussion of net revenue and operating income for the Company’s segments: Financial Advisory, Asset Management and Corporate. Each segment’s operating expenses include (i) compensation and benefits expenses that are incurred directly in support of the segment and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourcing, and indirect support costs (including compensation and benefits expense and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, human resources, legal, information technology, 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.

Effective January 1, 2017, the Company’s reporting by geographic region was transitioned from the Company’s previously disclosed North America, Europe and rest of the world regions to the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific.  Comparable prior year information has been recast to reflect our revised geographic presentation.

Financial Advisory

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

	Three Months Ended
	March 31,
	2017			2016
	($ in thousands)
Net Revenue	$	335,812		$	266,014
Operating Expenses		262,751			227,078
Operating Income	$	73,061		$	38,936
Operating Income, as a % of net revenue		21.8	%		14.6	%

Certain Lazard fee and transaction statistics for the Financial Advisory segment are set forth below:

	Three Months Ended
	March 31,
	2017			2016
Lazard Statistics:
Number of clients with fees greater than $1 million:
Total Financial Advisory		65			66
M&A and Strategic Advisory		55			60
Percentage of total Financial Advisory net revenue from top 10 clients		46	%		35	%
Number of M&A transactions completed with values greater than $500 million (a)		24			19

(a) Source: Dealogic as of April 5, 2017.

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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 Americas (primarily in the U.S. and Latin America), EMEA (primarily in the U.K., France, Italy, Spain and Germany) and the Asia Pacific region (primarily in Australia) and therefore may not be reflective of the geography in which the clients are located.

	Three Months Ended
	March 31,
	2017			2016
Americas		65	%		67	%
EMEA		32			31
Asia Pacific		3			2
Total		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 operating 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 March 31, 2017 versus March 31, 2016

Financial Advisory net revenue increased $70 million, or 26%, as compared to the 2016 period. M&A and Strategic Advisory net revenue was $248 million, an increase of $25 million, or 11%, as compared to $223 million in the 2016 period. Restructuring revenue was $88 million, an increase of $45 million, or 105%, as compared to $43 million in the 2016 period. The increase in M&A and Strategic Advisory revenue was primarily due to an increase in the average transaction fee with respect to completed transactions involving fees greater than $1 million as compared to the 2016 period. Clients which in the aggregate represented a significant portion of our M&A and Strategic Advisory revenue in the 2017 period included Air Products, Harman, Sanofi and Värde Partners.

Restructuring revenue in the 2017 period primarily reflected the closing of large assignments, including a continued high level of activity in the U.S energy sector. Clients which in the aggregate represented a significant portion of our Restructuring revenue in the 2017 period included Linn Energy, Peabody Energy, Shelf Drilling and Stone Energy.

Operating expenses increased $36 million, or 16%, as compared to the 2016 period, primarily due to an increase in discretionary compensation and benefits expense associated with increased operating revenue.

Financial Advisory operating income was $73 million, an increase of $34 million, or 88%, as compared to operating income of $39 million in the 2016 period and, as a percentage of net revenue, was 21.8%, as compared to 14.6% in the 2016 period.

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Asset Management

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

	As of
	March 31, 2017		December 31, 2016
	($ in millions)
AUM by Asset Class:
Equity:
Emerging Markets	$	46,563	$	41,363
Global		34,520		30,567
Local		38,390		36,243
Multi-Regional		59,506		54,668
Total Equity		178,979		162,841
Fixed Income:
Emerging Markets		16,539		15,580
Global		3,646		3,483
Local		4,299		4,245
Multi-Regional		7,734		7,847
Total Fixed Income		32,218		31,155
Alternative Investments		2,420		2,422
Private Equity		1,285		1,253
Cash Management		276		239
Total AUM	$	215,178	$	197,910

Total AUM at March 31, 2017 was $215 billion, an increase of $17 billion, or 9%, as compared to total AUM of $198 billion at December 31, 2016, primarily due to market and foreign exchange appreciation and net inflows. Average AUM for the first quarter of 2017 increased 12% as compared to the first quarter of 2016 and 3% as compared to the fourth quarter of 2016.

As of March 31, 2017, approximately 88% 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 12% of our AUM was managed on behalf of individual client relationships, which are principally with family offices and individuals, and was unchanged from the corresponding percentages at December 31, 2016.

As of March 31, 2017, AUM with foreign currency exposure represented approximately 72% of our total AUM as compared to 70% at December 31, 2016. AUM with foreign currency exposure generally declines in value with the strengthening of the U.S. Dollar and increases in value as the U.S. Dollar weakens, with all other factors held constant.

The following is a summary of changes in AUM by asset class for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended March 31, 2017
	AUM Beginning Balance		Inflows (a)		Outflows (a)			Net Flows			Market Value Appreciation/ (Depreciation)		Foreign Exchange Appreciation/ (Depreciation)		AUM Ending Balance
	($ in millions)
Equity	$	162,841	$	11,785	$	(8,296	)	$	3,489		$	10,223	$	2,426	$	178,979
Fixed Income		31,155		1,660		(1,830	)		(170	)		850		383		32,218
Other		3,914		334		(350	)		(16	)		57		26		3,981
Total	$	197,910	$	13,779	$	(10,476	)	$	3,303		$	11,130	$	2,835	$	215,178

(a) Inflows in the Equity asset class were primarily attributable to the Multi-Regional, Global and Emerging Markets equity platforms, and inflows in the Fixed Income asset class were primarily attributable to the Emerging Markets and Multi-Regional platforms. Outflows in the Equity asset class were primarily attributable to the Multi-Regional, Global and Emerging Markets equity platforms, and outflows in the Fixed Income asset class were primarily attributable to the Multi-Regional and Emerging Markets platforms.

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	Three Months Ended March 31, 2016
	AUM Beginning Balance		Inflows		Outflows			Net Flows			Market Value Appreciation/ (Depreciation)			Foreign Exchange Appreciation/ (Depreciation)		AUM Ending Balance
	($ in millions)
Equity	$	151,495	$	8,042	$	(6,989	)	$	1,053		$	286		$	2,978	$	155,812
Fixed Income		30,387		1,324		(2,719	)		(1,395	)		441			937		30,370
Other		4,498		442		(461	)		(19	)		(118	)		11		4,372
Total	$	186,380	$	9,808	$	(10,169	)	$	(361	)	$	609		$	3,926	$	190,554

As of April 24, 2017, AUM was $219.3 billion, a $4.1 billion increase since March 31, 2017. The increase in AUM was due to market appreciation of $2.7 billion, foreign exchange appreciation of $1.4 billion and net inflows of $24 million.

Average AUM for the three month periods ended March 31, 2017 and 2016 for each significant asset class is set forth below. Average AUM generally represents the average of the monthly ending AUM balances for the period.

	Three Months Ended
	March 31,
	2017		2016
	($ in millions)
Average AUM by Asset Class:
Equity	$	170,863	$	149,969
Fixed Income		31,436		30,253
Alternative Investments		2,670		3,435
Private Equity		1,196		869
Cash Management		264		275
Total Average AUM	$	206,429	$	184,801

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

	Three Months Ended
	March 31,
	2017			2016
	($ in thousands)
Net Revenue	$	283,363		$	245,759
Operating Expenses		188,751			175,161
Operating Income	$	94,612		$	70,598
Operating Income, as a % of net revenue		33.4	%		28.7	%

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
	March 31,
	2017			2016
Americas		59	%		59	%
EMEA		31			30
Asia Pacific		10			11
Total		100	%		100	%

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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 March 31, 2017 versus March 31, 2016

Asset Management net revenue increased $38 million, or 15%, as compared to the 2016 period. Management fees and other revenue was $276 million, an increase of $32 million, or 13%, as compared to $244 million in the 2016 period, primarily due to an increase in average AUM. Incentive fees were $7 million, an increase of $5 million as compared to $2 million in the 2016 period.

Operating expenses increased $14 million, or 8%, as compared to the 2016 period, primarily due to increases in compensation and benefits expense related to an increase in discretionary compensation associated with increased operating revenue.

Asset Management operating income was $95 million, an increase of $24 million, or 34%, as compared to operating income of $71 million in the 2016 period and, as a percentage of net revenue, was 33.4%, as compared to 28.7% in the 2016 period.

Corporate

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

	Three Months Ended
	March 31,
	2017			2016
	($ in thousands)
Interest Income	$	764		$	832
Interest Expense		(13,456	)		(11,869	)
Net Interest (Expense)		(12,692	)		(11,037	)
Other Revenue (Expense)		16,981			(2,518	)
Net Revenue (Expense)		4,289			(13,555	)
Operating Expenses (Credit)		21,765			(2,398	)
Operating Income (Loss)	$	(17,476	)	$	(11,157	)

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 March 31, 2017 versus March 31, 2016

Net interest expense increased $2 million, or 15%, as compared to the 2016 period.

Other revenue increased $19 million as compared to the 2016 period, primarily due to gains in the 2017 period attributable to investments held in connection with LFI.

Operating expenses increased $24 million as compared to the 2016 period, primarily due to an increase in compensation and benefits expense, including an increase in charges pertaining to LFI.

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 and Strategic Advisory and Asset 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 Capital Advisory (which we historically referred to as Private Fund Advisory) activities are generally collected over a four-year period from billing and typically include an interest component.

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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. The Company also paid a special dividend in February 2017 and February 2016.

Summary of Cash Flows:

	Three Months Ended
	March 31,
	2017			2016
	($ in millions)
Cash Provided By (Used In):
Operating activities:
Net income	$	110.4		$	70.7
Adjustments to reconcile net income to net cash provided by operating activities (a)		121.6			137.7
Other operating activities (b)		(137.6	)		(308.3	)
Net cash provided by (used in) operating activities		94.4			(99.9	)
Investing activities		(3.7	)		(5.4	)
Financing activities (c)		(370.0	)		(337.7	)
Effect of exchange rate changes		12.0			12.2
Net Decrease in Cash and Cash Equivalents		(267.3	)		(430.8	)
Cash and Cash Equivalents:
Beginning of Period		1,158.8			1,132.1
End of Period	$	891.5		$	701.3

(a) Consists of the following:

	Three Months Ended
	March 31,
	2017		2016
	($ in millions)
Depreciation and amortization of property	$	7.7	$	8.4
Amortization of deferred expenses and stock units		92.8		117.1
Deferred tax provision (benefit)		17.5		11.6
Amortization and other acquisition-related costs		3.6		0.6
Total	$	121.6	$	137.7

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

(c) Consists primarily of purchases of shares of Class A common stock, tax withholdings related to the settlement of vested restricted stock units (“RSUs”), vested restricted stock awards and vested PRSUs, 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 periods. 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.

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.

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Liquidity is also affected by the level of deposits and other customer payables, principally at LFB. To the extent that such deposits and other customer payables rise or fall, this has a corresponding impact on liquidity held at LFB, with the majority of such amounts generally being recorded in “deposits with banks and short-term investments”, or in “investments” for interest-bearing deposits having original maturities of greater than three months. In the three month period ended March 31, 2017, as reflected on the condensed consolidated statements of financial condition, both “deposits with banks and short-term investments” and “deposits and other customer payables” increased as compared to December 31, 2016, due to a higher level of LFB customer-related demand deposits, primarily from clients and funds managed by LFG.

Lazard’s condensed 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 stockholders’ equity. Foreign currency remeasurement gains and losses on transactions in non-functional currencies are included on the condensed 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 matters relating to liquidity and to compliance with regulatory net capital requirements. At March 31, 2017, Lazard had approximately $891 million of cash, with such amount including approximately $446 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, we expect that no material amount of additional U.S. income taxes would be recognized upon receipt of dividends or distributions of such earnings from our foreign operations.

We maintain lines of credit in excess of anticipated liquidity requirements. As of March 31, 2017, Lazard had approximately $172 million in unused lines of credit available to it, including a $150 million, five-year, senior revolving credit facility with a group of lenders that expires in September 2020 (the “Amended and Restated Credit Agreement”) (see “—Financing Activities” below) and unused lines of credit available to LFB of approximately $21 million (at March 31, 2017 exchange rates).

The Amended and Restated Credit Agreement 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 Amended and Restated Credit Agreement 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 March 31, 2017 and December 31, 2016. 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.

		Outstanding as of
		March 31, 2017						December 31, 2016
Senior Debt	Maturity Date	Principal		Unamortized Debt Costs		Carrying Value		Principal		Unamortized Debt Costs		Carrying Value
		($ in millions)
Lazard Group 2020 Senior Notes	2020	$	500.0	$	3.4	$	496.6	$	500.0	$	3.6	$	496.4
Lazard Group 2025 Senior Notes	2025		400.0		3.7		396.3		400.0		3.8		396.2
Lazard Group 2027 Senior Notes	2027		300.0		3.9		296.1		300.0		4.0		296.0
		$	1,200.0	$	11.0	$	1,189.0	$	1,200.0	$	11.4	$	1,188.6

Lazard’s annual cash flow generated from operations historically has been sufficient to enable it to meet its annual obligations. 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.

As long as the lenders’ commitments remain in effect, any loan pursuant to the Amended and Restated Credit Agreement remains outstanding and unpaid or any other amount is due to the lending bank group, the Amended and Restated Credit Agreement includes financial covenants that require that Lazard Group not permit (i) its Consolidated Leverage Ratio (as defined in the Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be greater than 3.25 to 1.00 or

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(ii) its Consolidated Interest Coverage Ratio (as defined in the Amended and Restated Credit Agreement) 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 March 31, 2017, Lazard Group was in compliance with such ratios, with its Consolidated Leverage Ratio being 1.27 to 1.00 and its Consolidated Interest Coverage Ratio being 19.35 to 1.00. In any event, no amounts were outstanding under the Amended and Restated Credit Agreement as of March 31, 2017.

In addition, the Amended and Restated Credit Agreement, 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 March 31, 2017, 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 March 31, 2017, total stockholders’ equity was $1,213 million, as compared to $1,294 million at December 31, 2016, including $1,153 million and $1,236 million attributable to Lazard Ltd on the respective dates. The net activity in stockholders’ equity during the three month period ended March 31, 2017 is reflected in the table below (in millions of dollars):

Stockholders’ Equity - January 1, 2017	$	1,294
Adjustment for the cumulative effect on prior years from the adoption of new    accounting guidance related to share-based incentive compensation		81
Balance, as adjusted, January 1, 2017		1,375
Increase (decrease) due to:
Net income		110
Other comprehensive income		18
Amortization of share-based incentive compensation		78
Purchase of Class A common stock		(106	)
Settlement of share-based incentive compensation (a)		(66	)
Class A common stock dividends		(192	)
Distributions to noncontrolling interests, net		(1	)
Other - net		(3	)
Stockholders’ Equity - March 31, 2017	$	1,213

(a) The tax withholding portion of share-based compensation is settled in cash, not shares.

The Board of Directors of Lazard has issued a series of authorizations to repurchase Class A common stock, which help offset the dilutive effect of our share-based incentive compensation plans. During a given year the Company intends to repurchase at least as many shares as it expects to ultimately issue pursuant to such compensation plans in respect of year-end incentive compensation attributable to the prior year. The rate at which the Company purchases shares in connection with this annual objective may vary from quarter to quarter due to a variety of factors. Purchases with respect to such program are set forth in the table below:

Three Months Ended March 31,	Number of Shares		Average Price Per Share
2016		2,424,571	$	34.29
2017		2,464,967	$	43.02

As of March 31, 2017, a total of $249 million of share repurchase authorization remained available under the Company’s share repurchase program, $13 million of which will expire on December 31, 2017 and $236 million of which will expire on December 31, 2018.

During the three month period ended March 31, 2017, the Company had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

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

See Notes 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 17 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 our Form 10-K.

Contractual Obligations

The following table sets forth information relating to Lazard’s contractual obligations as of March 31, 2017:

	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)	$	1,513,042	$	47,125	$	94,250	$	573,000	$	798,667
Operating leases (exclusive of $44,471 of    committed sublease income)		813,670		76,453		138,506		124,312		474,399
Capital leases (including interest)		6,947		6,893		54
Investment capital funding commitments (b)		9,183		9,183
Total (c)	$	2,342,842	$	139,654	$	232,810	$	697,312	$	1,273,066

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

(b) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,904 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. 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.

(c) The table above excludes contingent obligations, given the inability to make a reasonably reliable estimate of the timing of the amounts of any such payments. The table above also excludes any possible payments for uncertain tax positions and payments pursuant to the Company’s tax receivable agreement, given that the actual amount and timing of payments under the tax receivable agreement could differ materially from our estimates. At March 31, 2017, a tax receivable agreement obligation of $512,874 was recorded on the condensed consolidated statements of financial condition. See “Critical Accounting Policies and Estimates—Income Taxes” below. See also Notes 10, 12, 13, 14 and 16 of Notes to Condensed Consolidated Financial Statements regarding information in connection with commitments, incentive plans, employee benefit plans, income taxes and tax receivable agreement obligations, respectively.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our condensed consolidated financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in conformity with U.S. GAAP. The preparation of Lazard’s condensed 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, income taxes (including the impact on the tax receivable agreement obligation), 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.

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Lazard believes that the critical accounting policies set forth below comprise the most significant estimates and judgments used in the preparation of its condensed 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 reasonably assured.

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 Capital 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.

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 periods 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 its respective jurisdiction. In addition to estimating actual current tax liabilities for these jurisdictions, we also must account for the tax effects of differences between the financial reporting and tax reporting of items, such as basis adjustments, compensation and benefits expense, and depreciation and amortization. Differences which 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, any valuation allowance recorded against our deferred tax assets and our unrecognized tax benefits.

We recognize a deferred tax asset 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, 2016, on a consolidated basis, we recorded gross deferred tax assets of approximately $1.23 billion, with such amount partially offset by a valuation allowance of approximately $70 million (as described below).

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, taking into account all available

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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.

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, magnitude and duration of any past losses and current operating results;

• 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 objectively verifiable evidence and will generally outweigh a projection of future taxable income.

Certain of our tax-paying entities have individually experienced losses on a cumulative three year basis or have tax attributes that may expire unused. In addition, one of our tax-paying entities has recorded a valuation allowance on substantially all of its deferred tax assets due to the combined effect of operating losses in certain subsidiaries of that entity as well as foreign taxes that together substantially offset any U.S. tax liability. Taking into account all available information, we cannot determine that it is more likely than not that deferred tax assets held by these entities will be realized. Consequently, we have recorded valuation allowances on $70 million of deferred tax assets held by these entities as of December 31, 2016.

We record tax positions taken or expected to be taken in a tax return based upon our estimates regarding 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, we recognize 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.

On January 1, 2017, we adopted new accounting guidance on share-based incentive compensation. Upon adoption, we recognized excess tax benefits of $7.4 million from the vesting of share-based incentive compensation in the provision for income taxes in the condensed consolidated statements of operations for the three month period ended March 31, 2017. Upon adoption of the new guidance, we also recorded deferred tax assets of $81.5 million, net of a valuation allowance of $12.1 million, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based incentive compensation, with an offsetting adjustment to retained earnings. See Notes 2 and 14 of Notes to Condensed Consolidated Financial Statements for further information on the adoption of this new guidance. The new guidance has since January 1, 2017 affected, and the Company expects that in future periods the new guidance will affect, the provision for income taxes for the delivery of stock under share-based incentive compensation arrangements, as well as the effective tax rate in the relevant periods, which could be material to the condensed consolidated statements of operations and the classification of cash flows in the relevant periods.

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 Item 1A, “Risk Factors” in our Form 10-K and Note 14 of Notes to Condensed Consolidated Financial Statements for additional information related to income taxes.

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Amended and Restated Tax Receivable Agreement

During the period ended June 30, 2015, we released substantially all of our valuation allowance against deferred tax assets. As a result, we accrued a corresponding liability during the period ended June 30, 2015 for amounts relating to the Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “Amended and Restated Tax Receivable Agreement”), between Lazard and LTBP Trust (the “Trust”). See Note 16 of Notes to Condensed Consolidated Financial Statements for additional information regarding the Amended and Restated Tax Receivable Agreement.

The amount of the Amended and Restated Tax Receivable Agreement liability is an undiscounted amount based upon currently enacted tax laws, the current structure of the Company and various assumptions regarding potential future operating profitability. The assumptions reflected in the estimate involve significant judgment. As such, the actual amount and timing of payments under the Amended and Restated Tax Receivable Agreement could differ materially from our estimates. Any changes in the amount of the estimated liability would be recorded as a non-compensation expense in the condensed consolidated statement of operations. Adjustments, if necessary, to the related deferred tax assets would be recorded through income tax expense.

The cumulative liability relating to our obligations under the Amended and Restated Tax Receivable Agreement recorded as of March 31, 2017 and December 31, 2016 was $513 million and $514 million, respectively, and is recorded in “tax receivable agreement obligation” on the condensed consolidated statements of financial condition.

Investments

Investments consist primarily of interest-bearing deposits, debt and equity securities, interests in alternative investment, debt, equity and private equity funds and investments accounted for under the equity method of accounting.

These investments, with the exception of interest-bearing deposits and equity method investments, are carried at fair value on the condensed consolidated statements of financial condition, and any increases or decreases in the fair value of these investments are reflected in earnings. The fair value of investments is generally based upon market prices or the net asset value (“NAV”) or its equivalent for investments in funds. See Note 5 of Notes to Condensed Consolidated Financial Statements for additional information on the measurement of the fair value of investments.

Lazard is subject to market and credit risk on investments held. As such, 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.

Data relating to investments is set forth below:

	March 31, 2017		December 31, 2016
	($ in thousands)
Seed investments by asset class:
Equities (a)	$	105,800	$	99,669
Fixed income		17,107		16,406
Alternative investments		18,531		18,172
Total seed investments		141,438		134,247
Other investments owned:
Private equity (b)		90,318		96,089
Interest-bearing deposits (c)		483		456
Fixed income and other		23,341		22,908
Total other investments owned		114,142		119,453
Subtotal		255,580		253,700
Add:
Equity method (d)		222		222
Private equity consolidated, not owned (e)		19,631		26,332
LFI (f)		106,641		179,168
Total investments	$	382,074	$	459,422

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(a) At March 31, 2017 and December 31, 2016, seed investments in directly owned equity securities were invested as follows:

	March 31, 2017			December 31, 2016
Percentage invested in:
Financials		26	%		30	%
Consumer		28			28
Industrial		14			13
Technology		14			12
Other		18			17
Total		100	%		100	%

(b) Private equity investments include investments related to certain legacy businesses and co-investments in private equity funds managed by our Asset Management business. Co-investments owned were $39 million and $34 million as of March 31, 2017 and December 31, 2016, respectively.

(c) Short- to medium-term interest rates generally turned negative in Europe during 2014 and remain very low in many other countries and regions throughout the world. In the normal course of asset and liability management activities, the Company attempts to minimize negative interest rates on its cash investments. Interest-bearing deposits generally provide positive yields when held to maturity, while also generally allowing immediate penalty-free withdrawal at any time (with less or no interest earned in such case).

(d) Represents investments accounted for under the equity method of accounting.

(e) Represents private equity investments 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 condensed consolidated statements of financial condition.

(f) Composed of investments held in connection with LFI and other similar deferred compensation arrangements. The market risk associated with such investments is equally offset by the market risk associated with the derivative liability with respect to awards expected to vest. 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.

At March 31, 2017 and December 31, 2016, total investments with a fair value of $381 million and $459 million, respectively, included $89 million and $130 million, respectively, or 23% and 28%, respectively, of investments that were classified using NAV or its equivalent as a practical expedient. See Notes 4 and 5 of Notes to Condensed Consolidated Financial Statements for additional information regarding investments measured at fair value, including the levels of fair value within which such measurements of fair value fall.

As of March 31, 2017 and December 31, 2016, the Company held seed investments of approximately $141 million and $134 million, respectively. Seed investments held in entities in which the Company maintained a controlling interest were $34 million in six entities as of March 31, 2017, as compared to $41 million in six entities as of December 31, 2016.

As of March 31, 2017 and December 31, 2016, the Company did not consolidate or deconsolidate any seed investment entities. As such, 100% of the recorded balance of seed investments as of March 31, 2017 and December 31, 2016 represented the Company’s economic interest in the seed investments. See “—Consolidation of Variable Interest Entities” below for more information on the Company’s policy regarding the consolidation of seed investment entities.

For additional information regarding risks associated with our investments, see “Risk Management—Investments” below as well as Item 1A, “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.

Assets Under Management

AUM primarily consists of debt and equity instruments, which have a value that is readily available based on either prices quoted on a recognized exchange or prices provided by external pricing services.

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Prices of equity and debt securities and other instruments that comprise our AUM are provided by well-recognized, independent, third-party vendors. Such third-party vendors rely on prices provided by external pricing services which are obtained from recognized exchanges or markets, or, for certain fixed income securities, from an evaluated bid or other similarly sourced price.

Either directly, or through our third-party vendors, we perform a variety of regular due diligence procedures on our pricing service providers. Those procedures include oversight by our internal operations group, review of the pricing service providers’ internal control frameworks, review of the pricing service providers’ valuation methodologies, reconciliation to client custodial account values and comparison of significant pricing differences.

Goodwill

In accordance with current accounting guidance, goodwill has an indefinite life and is tested for impairment annually, as of November 1, or more frequently if circumstances indicate impairment may have occurred. The Company performs 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.

Consolidation

The condensed 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 the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”) under U.S. GAAP.

• Voting Interest Entities. VOEs 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 VOE if it holds a majority of the voting interest in such VOE.

• Variable Interest Entities. VIEs are entities that lack one or more of the characteristics of a VOE. 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 required to consolidate a VIE if we are the primary beneficiary having (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE.

Lazard’s involvement with various entities that are VOEs or VIEs primarily arises from investment management contracts with fund entities in our Asset Management business. Lazard is not required to consolidate such entities because, with the exception of certain seed investments, as discussed below, we do not hold more than an inconsequential equity interest in such entities and we do not hold other variable interests (including our investment management agreements, which do not meet the definition of variable interests) in such entities.

Lazard makes seed investments in certain entities that are considered VOEs and often require consolidation as a result of our investment. The impact of seed investment entities that require consolidation on the condensed consolidated financial statements, including any consolidation or deconsolidation of such entities, is not material to our financial statements. Our exposure to loss from entities in which we have made seed investments is limited to the extent of our investment in, or investment commitment to, such entities. See “Critical Accounting Policies and Estimates—Investments” above for more information regarding our investments.

Generally, when the Company initially invests to seed an investment entity, the Company is the majority owner of the entity. Our majority ownership in seed investment entities represents a controlling interest, except when we are the general partner in such entities and the third-party investors have the right to replace the general partner. To the extent material, we consolidate seed investment entities in which we own a controlling interest, and we would deconsolidate any such entity when we no longer have a controlling interest in such entity.

Risk Management

Investments

The Company has investments in a variety of asset classes, primarily debt and equity securities, and interests in alternative investments, debt, equity and private equity funds. The Company makes investments primarily to seed strategies in our Asset Management business or to reduce exposure arising from LFI and other similar deferred compensation arrangements. The Company measures its net economic exposure to market and other risks arising from investments that it owns, excluding (i) investments held in

58

connection with LFI and other similar deferred compensation arrangements, (ii) investments in funds owned entirely by the noncontrolling interest holders of certain acquired entities and (iii) interest-bearing deposits over 90 days that allow daily withdrawals without principal penalties.

Risk sensitivities include the effects of economic hedging. For equity market price risk, investment portfolios and their corresponding hedges are beta-adjusted to the All-Country World equity index. Fair value and sensitivity measurements presented herein are based on various portfolio exposures at a particular point in time and may not be representative of future results. Risk exposures may change as a result of ongoing portfolio activities and changing market conditions, among other things.

Equity Market Price Risk—At March 31, 2017 and December 31, 2016, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $112 million and $110 million, respectively. The Company hedges market exposure arising from a significant portion of our equity investment portfolios by entering into total return swaps. The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $0.8 million and $1.0 million in the carrying value of such investments as of March 31, 2017 and December 31, 2016, respectively, including the effect of the hedging transactions.

Interest Rate/Credit Spread Risk—At March 31, 2017 and December 31, 2016, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $57 million and $53 million, respectively. The Company hedges market exposure arising from a portion of our debt investment portfolios by entering into total return swaps. The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a decrease of approximately $1.1 million and $0.9 million in the carrying value of such investments as of March 31, 2017 and December 31, 2016, respectively, including the effect of the hedging transactions.

Foreign Exchange Rate Risk—At March 31, 2017 and December 31, 2016, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities, was $68 million and $64 million, respectively. A significant portion of the Company’s foreign currency exposure related to our equity and debt investment portfolios is hedged through the aforementioned total return swaps. The Company estimates that a 10% adverse change in foreign exchange rates versus the U.S. Dollar would result in a decrease of approximately $2.0 million and $1.7 million in the carrying value of such investments as of March 31, 2017 and December 31, 2016, respectively, including the effect of the hedging transactions.

Private Equity—The Company invests in private equity primarily as a part of its co-investment activities and in connection with certain legacy businesses. At March 31, 2017 and December 31, 2016, the Company’s exposure to changes in fair value of such investments was approximately $90 million and $96 million, respectively. The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $9.0 million and $9.6 million in the carrying value of such investments as of March 31, 2017 and December 31, 2016, respectively.

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, among other things, and specifically provide for exposures where we determine the receivables are impaired. At March 31, 2017, total receivables amounted to $528 million, net of an allowance for doubtful accounts of $30 million. As of that date, Financial Advisory and Asset Management fees, and customer receivables comprised 83% and 17% of total receivables, respectively. At December 31, 2016, total receivables amounted to $638 million, net of an allowance for doubtful accounts of $16 million. As of that date, Financial Advisory and Asset Management fees, and customer receivables comprised 88% and 12% of total receivables, respectively. At March 31, 2017 and December 31, 2016, the Company had receivables past due or deemed uncollectible of approximately $42 million and $22 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 (primarily for clients of LFG). At March 31, 2017 and December 31, 2016, customer receivables included $47 million and $51 million of LFB loans, respectively, with such loans being fully collateralized and closely monitored for counterparty creditworthiness.

Credit Concentrations

To reduce the exposure to concentrations of credit, the Company monitors large exposures to individual counterparties.

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Risks Related to Derivatives

Lazard enters into forward foreign currency exchange contracts and interest rate swaps to hedge exposures to currency exchange rates and interest rates and uses total return swap contracts on various equity and debt indices 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 $4 million and $2 million at March 31, 2017 and December 31, 2016, respectively, and derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to LFI and other similar deferred compensation arrangements, amounted to $4 million and $12 million at such respective dates.

The Company also records derivative liabilities relating to its obligations pertaining to LFI 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 expected to be delivered upon settlement of LFI awards. Derivative liabilities relating to LFI amounted to $175 million and $170 million at March 31, 2017 and December 31, 2016, respectively.

Risks Related to Cash and Cash Equivalents and Corporate Indebtedness

A significant portion of the Company’s indebtedness has fixed interest rates, while its cash and cash equivalents generally have market interest rates. Based on account balances as of March 31, 2017, Lazard estimates that its annual operating income relating to cash and cash equivalents would increase by approximately $9 million in the event interest rates were to increase by 1% and decrease by approximately $9 million if rates were to decrease by 1%.

As of March 31, 2017, the Company’s cash and cash equivalents totaled approximately $891 million. Substantially all of the Company’s cash and cash equivalents were invested in (i) highly liquid institutional money market funds (a significant majority of which were invested solely in U.S. Government or agency money market funds), (ii) in short-term interest bearing and non-interest bearing accounts at a number of leading banks throughout the world, and (iii) 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.

Operational Risk

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, employee misconduct, business interruptions, fraud, including fraud perpetrated by third parties, 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 policies designed to help protect the Company against accidental loss and losses that 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”.

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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 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 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 for the year ended December 31, 2016.

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

None.

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 first quarter of 2017. 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
January 1 – January 31, 2017
Share Repurchase Program (1)		451,269	$	40.83		451,269	$	336.7	million
Employee Transactions (2)		-				-		-
February 1 – February 28, 2017
Share Repurchase Program (1)		344,938	$	43.05		344,938	$	321.8	million
Employee Transactions (2)		588,132	$	43.40		-		-
March 1 – March 31, 2017
Share Repurchase Program (1)		1,668,760	$	43.61		1,668,760	$	249.1	million
Employee Transactions (2)		835,267	$	43.04		-		-
Total
Share Repurchase Program (1)		2,464,967	$	43.02		2,464,967	$	249.1	million
Employee Transactions (2)		1,423,399	$	43.19		-		-

(1) During the three months ended March 31, 2017 and since 2014, the Board of Directors of Lazard authorized the repurchase of Class A common stock as set forth in the table below.

Date	Repurchase Authorization		Expiration
April 2014	$	200,000	December 31, 2015
February 2015	$	150,000	December 31, 2016
January 2016	$	200,000	December 31, 2017
April 2016	$	113,182	December 31, 2017
November 2016	$	236,000	December 31, 2018

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A significant portion of the Company’s purchases under the share repurchase program are used to offset a portion of the shares that have been or will be issued under the 2008 Plan. Purchases under the share repurchase program may be made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from quarter to quarter due to a variety of factors. Amounts shown in this line item include repurchases of Class A common stock 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 2008 Plan, upon the vesting of RSUs, PRSUs, DSUs 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 March 31, 2017, the Company satisfied such obligations in lieu of issuing (i) 1,315,160 shares of Class A common stock upon the vesting of 4,374,224 RSUs and PRSUs and (ii) 108,239 shares of Class A common stock upon the vesting of 263,457 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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PART IV

Item 6.       Exhibits

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	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).
4.4	Fifth Supplemental Indenture, dated as of November 14, 2013, between Lazard Group LLC and The Bank of New York Mellon, 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 November 14, 2013).
4.5	Sixth Supplemental Indenture, dated as of February 13, 2015, between Lazard Group LLC and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K (File No. 001-32492) filed on February 13, 2015).
4.6	Form of Senior Note (included in Exhibits 4.3, 4.4 and 4.5).
10.1	Amended and Restated Operating Agreement of Lazard Group LLC, dated as of October 26, 2015 (incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on October 28, 2015).
10.2	Amendment No.1 to Amended and Restated Operating Agreement of Lazard Group LLC, dated as of October 27, 2016 (incorporated by reference to Exhibit 10.2 to Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on October 28, 2016).
10.3	Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015, by and among Ltd Sub A, Ltd Sub B and LTBP Trust (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on October 28, 2015).
10.4	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).
10.5	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).
10.6	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).

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10.7*	Lazard Ltd 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).
10.8*	Lazard Ltd 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).
10.9*	Lazard Ltd 2016 French Sub-plan (incorporated by reference to Annex B to the Registrant’s Definitive Proxy Statement on Schedule 14A (File No. 001-32492) filed on March 10, 2016).
10.10*	Amended and Restated Agreement relating to Retention and Noncompetition and Other Covenants, dated as of March 9, 2016, by and among the Registrant, Lazard Group LLC and Kenneth M. Jacobs (incorporated by reference to Exhibit 10.9 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 27, 2016).
10.11*	Amended and Restated Agreement relating to Retention and Noncompetition and Other Covenants, dated as of March 9, 2016, by and among the Registrant, Lazard Group LLC and Ashish Bhutani (incorporated by reference to Exhibit 10.10 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 27, 2016).
10.12*	Amended and Restated Agreement relating to Retention and Noncompetition and Other Covenants, dated as of March 9, 2016, by and among the Registrant, Lazard Group LLC and Matthieu Bucaille (incorporated by reference to Exhibit 10.11 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 27, 2016).
10.13*	Amended and Restated Agreement relating to Retention and Noncompetition and Other Covenants, dated as of March 9, 2016, by and among the Registrant, Lazard Group LLC and Scott D. Hoffman (incorporated by reference to Exhibit 10.12 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 27, 2016).
10.14*	Amended and Restated Agreement relating to Retention and Noncompetition and Other Covenants, dated as of March 9, 2016, by and among the Registrant, Lazard Group LLC and Alexander F. Stern (incorporated by reference to Exhibit 10.13 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on April 27, 2016).
10.15*	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).
10.16*	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).
10.17*	Form of Agreement evidencing a grant of Deferred Cash Award to Executive Officers (incorporated by reference to Exhibit 10.42 to the Registrant’s Annual Report (File No. 001-32492) on Form 10-K filed on March 2, 2009).
10.18*	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).
10.19	Amended and Restated Credit Agreement, dated as of September 25, 2015, among Lazard Group LLC, the Banks from time to time parties thereto, and Citibank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.27 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on October 28, 2015).
10.20*	Form of Agreement evidencing a grant of Lazard Fund Interests to Named Executive Officers (incorporated by reference to Exhibit 10.55 to the Registrant’s Quarterly Report (File No. 001-32492) on Form 10-Q filed on May 1, 2013).
10.21*	Form of Agreement evidencing a February 20, 2014 grant of Performance-Based Stock Units 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 May 6, 2014).
10.22*	Agreement between the Company and Kenneth M. Jacobs, dated as of February 20, 2014, evidencing a grant of Performance-Based Stock Units 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 May 6, 2014).
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.

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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.

66

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.

Dated: May 1, 2017

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

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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.

	Three Months
	Ended			Year Ended December 31,
	March 31, 2017			2016			2015				2014		2013			2012
	(dollars in thousands)
Operating income (loss)	$	150,197		$	517,461		$	(16,620	)		$	519,465	$	216,807		$	123,885
Add—Fixed charges		20,028			73,654			75,109				86,066		103,668			106,470
Operating income before fixed charges	$	170,225		$	591,115		$	58,489			$	605,531	$	320,475		$	230,355
Fixed Charges:
Interest (b)	$	13,956		$	50,292		$	51,159			$	62,570	$	79,381		$	81,565
Other (c)		6,072			23,362			23,950				23,496		24,287			24,905
Total fixed charges	$	20,028		$	73,654		$	75,109			$	86,066	$	103,668		$	106,470
Ratio of earnings to fixed charges		8.50	(d)		8.03	(e)		-		(f)		7.04	3.09		(g)	2.16		(h)
Deficiency in the coverage of operating income   (loss) before fixed charges to total fixed charges							$	16,620

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 three months ended March 31, 2017 is presented after giving effect to a charge of $2,745 of acquisition-related costs. Excluding the impact of such charges, the ratio of earnings to fixed charges would have been 8.64.

(e) Operating income for the year ended December 31, 2016 is presented after giving effect to a charge of (i) $3,148 associated with the redemption of the remaining portion of the 2017 Notes, (ii) $599 excess interest expense due to the period of time between the issuance of the 2027 Notes and the settlement of the redemption of the 2017 Notes, (iii) $34,092 of acquisition-related costs and (iv) $12,668 gain on the acquisition of MBA Lazard (which resulted from the increase in the fair value of the Company’s investment in MBA Lazard prior to the acquisition). Excluding the impact of such charges, the ratio of earnings to fixed charges would have been 8.43.

(f) Operating income for the year ended December 31, 2015 is presented after giving effect to a charge of (i) $60,219 associated with the redemption of $450 million of the 2017 Notes, (ii) $2,655 excess interest expense due to the period of time between the issuance of the 2025 Notes and the settlement of the redemption of the 2017 Notes, (iii) $12,203 relating to a private equity revenue adjustment and (iv) $542,270 relating to the provision pursuant to the tax receivable agreement. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 8.95. The Company’s net income for the year ended December 31, 2015, which was affected by a significant income tax benefit during such period, was $992,932.

(g) Operating income for the year ended December 31, 2013 is presented after giving effect to a charge of (i) $64,703 associated with the cost saving initiatives announced by the Company in October 2012, (ii) $54,087 pertaining to the refinancing of the 2015 Notes and the issuance of the 2020 Notes and (iii) $12,203 relating to private equity incentive compensation. Excluding the impact of such charge, the ratio of earnings to fixed charges would have been 4.35.

(h) 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.

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 March 31, 2017 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: May 1, 2017

/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 March 31, 2017 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: May 1, 2017

/s/ Matthieu Bucaille

Matthieu Bucaille

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

May 1, 2017

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 March 31, 2017 (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

May 1, 2017

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 March 31, 2017 (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

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 21, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
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		129,766,091
Subsidiaries of Lazard Ltd [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		7,157,305

XML

Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 891,455	$ 1,158,785
Deposits with banks and short-term investments	572,496	419,668
Cash deposited with clearing organizations and other segregated cash	33,687	29,030
Receivables (net of allowance for doubtful accounts of $29,662 and $16,386 at March 31, 2017 and December 31, 2016, respectively):
Fees	439,836	564,291
Customers and other	87,778	73,991
Total receivables, net	527,614	638,282
Investments	382,074	459,422
Property (net of accumulated amortization and depreciation of $296,280 and $286,001 at March 31, 2017 and December 31, 2016, respectively)	206,143	209,021
Goodwill and other intangible assets (net of accumulated amortization of $60,909 and $60,080 at March 31, 2017 and December 31, 2016, respectively)	387,908	382,024
Deferred tax assets	1,135,107	1,075,777
Other assets	248,774	184,499
Total Assets	4,385,258	4,556,508
Liabilities:
Deposits and other customer payables	625,797	472,283
Accrued compensation and benefits	288,987	541,588
Senior debt	1,189,043	1,188,600
Deferred tax liabilities	8,801	9,168
Capital lease obligations	6,913	7,205
Other liabilities	539,656	530,241
Total Liabilities	3,172,071	3,262,695
Commitments and contingencies
Common stock:
Class A, par value $.01 per share (500,000,000 shares authorized; 129,766,091 shares issued at March 31, 2017 and December 31, 2016, including shares held by subsidiaries as indicated below)	1,298	1,298
Additional paid-in-capital	608,073	688,231
Retained earnings	1,101,988	1,134,186
Accumulated other comprehensive loss, net of tax	(296,699)	(314,222)
Stockholders' equity subtotal before common stock held by subsidiaries and Noncontrolling interests, total	1,414,660	1,509,493
Class A common stock held by subsidiaries, at cost (6,879,471 and 7,628,786 shares at March 31, 2017 and December 31, 2016, respectively)	(261,583)	(273,506)
Total Lazard Ltd Stockholders’ Equity	1,153,077	1,235,987
Noncontrolling interests	60,110	57,826
Total Stockholders’ Equity	1,213,187	1,293,813
Total Liabilities and Stockholders’ Equity	4,385,258	4,556,508
LTBP Trust [Member]
Liabilities:
Tax receivable agreement obligation	512,874	513,610
Series A Preferred Stock [Member]
Preferred stock:
Preferred stock
Series B Preferred Stock [Member]
Preferred stock:
Preferred stock

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Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts receivables	$ 29,662	$ 16,386
Property, accumulated amortization and depreciation	296,280	286,001
Other intangible assets, accumulated amortization	$ 60,909	$ 60,080
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	15,000,000	15,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	129,766,091	129,766,091
Common stock held by subsidiaries, shares	6,879,471	7,628,786
Series A Preferred Stock [Member]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

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Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
REVENUE
Investment banking and other advisory fees	$ 334,916	$ 265,143
Asset management fees	272,924	233,731
Interest income	1,654	1,372
Other	27,926	9,870
Total revenue	637,420	510,116
Interest expense	13,956	11,898
Net revenue	623,464	498,218
OPERATING EXPENSES
Compensation and benefits	361,801	297,210
Occupancy and equipment	27,484	27,007
Marketing and business development	19,752	19,688
Technology and information services	24,024	22,931
Professional services	11,462	9,762
Fund administration and outsourced services	15,913	13,435
Amortization and other acquisition-related costs	3,574	644
Other	9,257	9,164
Total operating expenses	473,267	399,841
OPERATING INCOME	150,197	98,377
Provision for income taxes	39,767	27,654
NET INCOME	110,430	70,723
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	2,877	3,900
NET INCOME ATTRIBUTABLE TO LAZARD LTD	$ 107,553	$ 66,823
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic	122,815,163	126,040,441
Diluted	132,689,375	132,891,284
NET INCOME PER SHARE OF COMMON STOCK:
Basic	$ 0.88	$ 0.53
Diluted	0.81	0.50
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$ 1.58	$ 1.55

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
NET INCOME	$ 110,430	$ 70,723
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Currency translation adjustments (including a tax benefit of $1,146 for the three months ended March 31, 2016)	16,932	11,739
Employee benefit plans:
Actuarial loss (net of tax benefit of $261 and $70 for the three months ended March 31, 2017 and 2016, respectively)	(495)	(141)
Adjustment for items reclassified to earnings (net of tax expense of $276 and $393 for the three months ended March 31, 2017 and 2016, respectively)	1,086	1,186
OTHER COMPREHENSIVE INCOME, NET OF TAX	17,523	12,784
COMPREHENSIVE INCOME	127,953	83,507
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	2,877	3,900
COMPREHENSIVE INCOME ATTRIBUTABLE TO LAZARD LTD	$ 125,076	$ 79,607

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Currency translation adjustments, tax benefit		$ 1,146
Tax benefit on actuarial loss, employee benefit plans	$ 261	70
Tax expense, adjustment for items reclassified to earnings, employee benefit plans	$ 276	$ 393

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 110,430	$ 70,723
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of property	7,662	8,389
Amortization of deferred expenses and share-based incentive compensation	92,766	117,140
Amortization and other acquisition-related costs	3,574	644
Deferred tax provision	17,520	11,586
(Increase) decrease in operating assets:
Deposits with banks and short-term investments	(146,251)	19,498
Cash deposited with clearing organizations and other segregated cash	(4,533)	1,474
Receivables-net	115,043	(11,757)
Investments	66,979	86,169
Other assets	(73,026)	(46,592)
Increase (decrease) in operating liabilities:
Deposits and other payables	146,271	(2,729)
Accrued compensation and benefits and other liabilities	(242,052)	(354,436)
Net cash (used in) provided by operating activities	94,383	(99,891)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property	(3,847)	(5,454)
Disposals of property	135	104
Net cash used in investing activities	(3,712)	(5,350)
Proceeds from:
Contributions from noncontrolling interests		93
Excess tax benefits from share-based incentive compensation		2,720
Payments for:
Capital lease obligations	(396)	(417)
Distributions to noncontrolling interests	(1,001)	(424)
Payments under tax receivable agreement	(736)	(10,086)
Purchase of Class A common stock	(106,048)	(83,140)
Class A common stock dividends	(192,264)	(194,382)
Settlement of vested share-based incentive compensation	(61,478)	(50,455)
Other financing activities	(7,947)	(1,614)
Net cash used in financing activities	(369,870)	(337,705)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	11,869	12,187
NET DECREASE IN CASH AND CASH EQUIVALENTS	(267,330)	(430,759)
CASH AND CASH EQUIVALENTS—January 1	1,158,785	1,132,083
CASH AND CASH EQUIVALENTS—March 31	$ 891,455	$ 701,324

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Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In-Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss), Net of Tax [Member]	Class A Common Stock Held By Subsidiaries [Member]	Total Lazard Ltd Stockholders' Equity [Member]	Noncontrolling Interests [Member]	Series A Preferred Stock [Member]
Balance at Dec. 31, 2015	$ 1,367,306	$ 1,298	$ 600,034	$ 1,123,728	$ (234,356)	$ (177,249)	$ 1,313,455	$ 53,851
Balance (in shares) at Dec. 31, 2015		129,766,091				4,253,381			7,921
Comprehensive income:
Net income	70,723			66,823			66,823	3,900
Other comprehensive income - net of tax	12,784				12,784		12,784
Amortization of share-based incentive compensation	94,638		94,638				94,638
Dividend-equivalents	(1,568)		23,793	(25,361)			(1,568)
Class A common stock dividends	(194,382)			(194,382)			(194,382)
Purchase of Class A common stock	$ (83,140)					$ (83,140)	(83,140)
Purchase of Class A common stock (in shares)	2,424,571					2,424,571
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense / benefit	$ (43,236)		(192,121)			$ 148,885	(43,236)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense / benefit (in shares)						(3,674,957)
Business acquisitions and related equity transactions:
Distributions to noncontrolling interests, net	(331)							(331)
Other	(46)		(46)				(46)
Balance at Mar. 31, 2016	1,222,748	$ 1,298	526,298	970,808	(221,572)	$ (111,504)	1,165,328	57,420
Balance (in shares) at Mar. 31, 2016		129,766,091				3,002,995			7,921
Balance at Dec. 31, 2016	1,293,813	$ 1,298	688,231	1,134,186	(314,222)	$ (273,506)	1,235,987	57,826
Balance (in shares) at Dec. 31, 2016		129,766,091				7,628,786
Adjustment for the cumulative effect on prior years from the adoption of new accounting guidance related to share-based incentive compensation at Dec. 31, 2016	81,544			81,544			81,544
Balance, as adjusted at Dec. 31, 2016	1,375,357	$ 1,298	688,231	1,215,730	(314,222)	$ (273,506)	1,317,531	57,826
Comprehensive income:
Net income	110,430			107,553			107,553	2,877
Other comprehensive income - net of tax	17,523				17,523		17,523
Amortization of share-based incentive compensation	77,527		77,527				77,527
Dividend-equivalents	(3,054)		25,977	(29,031)			(3,054)
Class A common stock dividends	(192,264)			(192,264)			(192,264)
Purchase of Class A common stock	$ (106,048)					$ (106,048)	(106,048)
Purchase of Class A common stock (in shares)	2,464,967					2,464,967
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense / benefit	$ (65,765)		(183,736)			$ 117,971	(65,765)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax expense / benefit (in shares)						(3,214,282)
Business acquisitions and related equity transactions:
Class A common stock issuable (including related amortization)	74		74				74
Distributions to noncontrolling interests, net	(1,001)							(1,001)
Other	408							408
Balance at Mar. 31, 2017	$ 1,213,187	$ 1,298	$ 608,073	$ 1,101,988	$ (296,699)	$ (261,583)	$ 1,153,077	$ 60,110
Balance (in shares) at Mar. 31, 2017		129,766,091				6,879,471

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Stockholders Equity [Abstract]
Tax expense (benefit) related to delivery of Class A Common Stock in connection with share-based incentive compensation	$ 4,287	$ (7,219)

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

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

Lazard Ltd indirectly held 100% of all outstanding Lazard Group common membership interests as of March 31, 2017 and December 31, 2016. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Amended and Restated Operating Agreement dated as of October 26, 2015, as amended (the “Operating Agreement”).

Lazard Ltd’s primary operating asset is its indirect ownership of the common membership interests of, and managing member interests in, Lazard Group, whose principal operating activities are included in two business segments:

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

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

In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness, certain contingent obligations, and assets and liabilities associated with Lazard Group’s Paris-based subsidiary Lazard Frères Banque SA (“LFB”).

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard 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, 2016. The accompanying December 31, 2016 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

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

The consolidated results of operations for the three month period ended March 31, 2017 are not indicative of the results to be expected for any future interim or annual period.

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

The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates:

• Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs, and

• Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE.

When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings, or (ii) elects the option to measure at fair value. Intercompany transactions and balances have been eliminated.

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Recent Accounting Developments

3 Months Ended

Mar. 31, 2017

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Developments

2. RECENT ACCOUNTING DEVELOPMENTS

Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting—In March 2016, the Financial Accounting Standards Board (the “FASB”) issued new guidance regarding share-based incentive compensation. The new guidance includes several amendments which affect various aspects of the accounting for share-based incentive compensation transactions, including the income tax consequences, estimation of forfeitures, effect on earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this new guidance on January 1, 2017. The new guidance has since January 1, 2017 affected, and the Company expects that in future periods the new guidance will affect, the provision for income taxes for the delivery of stock under share-based incentive compensation arrangements, as well as the effective tax rate in the relevant periods, which could be material to the condensed consolidated statements of operations and the classification of cash flows in the relevant periods. The inclusion of excess tax benefits as an operating activity within the statement of cash flows was adopted on a prospective basis, with prior periods unadjusted. Based on the new guidance, the excess tax benefits are no longer included as assumed proceeds in the calculation of earnings per share under the treasury stock method on a prospective basis. Upon adoption of the new guidance, the Company also recorded deferred tax assets of $81,544, net of a valuation allowance of $12,090, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based incentive compensation arrangements, with an offsetting adjustment to retained earnings. With respect to forfeiture rates, the Company will continue to estimate the number of awards expected to be forfeited, rather than electing the option to account for forfeitures as they occur. See Note 14.

Revenue from Contracts with Customers—In May 2014, the FASB issued comprehensive new revenue recognition guidance. The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The guidance also changes the accounting for certain contract costs, including whether they may be offset against revenue in the condensed consolidated statements of operations. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. The guidance may be adopted using a full retrospective approach or a modified cumulative effect approach. During 2016, the FASB issued additional clarifications for certain aspects of the new revenue recognition guidance. The Company currently expects to adopt the revenue recognition guidance in the first quarter of 2018. The Company’s implementation efforts include the identification of revenue within the scope of the guidance and the evaluation of revenue contracts. The Company also continues to evaluate both the timing of revenue recognition and the presentation of certain contract costs.

Classification of Certain Cash Receipts and Cash Payments—In August and November 2016, the FASB issued updated guidance which clarifies how a company should classify certain cash receipts and cash payments on the statement of cash flows and clarifies that restricted cash should be included in the total of cash and cash equivalents on the statement of cash flows. The new guidance for both updates is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The new guidance is to be applied on a retrospective basis. The Company is currently evaluating the new guidance.

Clarifying the Definition of a Business—In January 2017, the FASB issued updated guidance to clarify the definition of a business within the context of business combinations. The updated guidance requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This updated guidance is expected to reduce the number of transactions that need to be further evaluated as business combinations. If further evaluation is necessary, the updated guidance will require that a business set include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The updated guidance will remove the evaluation of whether a market participant could replace missing elements. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and is to be applied on a prospective basis. The Company is currently evaluating the new guidance.

Compensation—Retirement Benefits—Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost—In March 2016, the FASB issued updated guidance on the presentation of net benefit cost in the statement of operations and the components eligible for capitalization. The new guidance requires that only the service cost component of net periodic pension cost and net periodic postretirement benefit cost be presented with other employee compensation costs in operating expenses. The other components of net benefit cost, including amortization of prior service cost, and gains and losses from settlements and curtailments, are to be included in non-operating expenses. The new guidance also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the new guidance.

Leases—In February 2016, the FASB issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial condition, (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and (iii) classify all cash payments within operating activities in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The new guidance is to be applied on a modified retrospective basis. The Company is currently evaluating the new guidance.

Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments—In June 2016, the FASB issued new guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The new guidance is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the new guidance.

Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment—In January 2017, the FASB issued updated guidance which eliminated Step 2 from the goodwill impairment test. Step 2 is the process of measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires entities to measure a goodwill impairment loss as the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the carrying amount of goodwill. The FASB also eliminated the requirements for entities that have reporting units with zero or negative carrying amounts to perform a qualitative assessment for the goodwill impairment test. Instead, those entities would be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for interim or annual goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the new guidance.

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Receivables

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Receivables

3. RECEIVABLES

The Company’s receivables represent fee receivables, amounts due from customers and other receivables.

Receivables are stated net of an estimated allowance for doubtful accounts, for past due amounts and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute.

Activity in the allowance for doubtful accounts for the three month periods ended March 31, 2017 and 2016 was as follows:

	Three Months Ended
	March 31,
	2017			2016
Beginning Balance	$	16,386		$	12,882
Bad debt expense, net of recoveries		13,651			514
Charge-offs, foreign currency translation and other adjustments		(375	)		(2,166	)
Ending Balance	$	29,662		$	11,230

Bad debt expense, net of recoveries is included in “investment banking and other advisory fees” on the condensed consolidated statements of operations.

At March 31, 2017 and December 31, 2016, the Company had receivables past due or deemed uncollectible of $42,489 and $22,212, respectively.

Of the Company’s fee receivables at March 31, 2017 and December 31, 2016, $63,119 and $76,133, respectively, represented interest-bearing financing receivables. Based upon our historical loss experience, the credit quality of the counterparties, and the lack of past due or uncollectible amounts, there was no allowance for doubtful accounts required at those dates related to such receivables.

The aggregate carrying amount of our non-interest bearing receivables of $464,495 and $562,149 at March 31, 2017 and December 31, 2016, respectively, approximates fair value.

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Investments

3 Months Ended

Mar. 31, 2017

Investments Schedule [Abstract]

Investments

4. INVESTMENTS

The Company’s investments and securities sold, not yet purchased, consist of the following at March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
Interest-bearing deposits	$	483	$	456
Equities		42,962		41,017
Funds:
Alternative investments (a)		31,046		32,441
Debt (a)		61,486		74,597
Equity (a)		135,926		188,268
Private equity		109,949		122,421
		338,407		417,727
Equity method		222		222
Total investments		382,074		459,422
Less:
Interest-bearing deposits		483		456
Equity method		222		222
Investments, at fair value	$	381,369	$	458,744
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	4,293	$	4,482

(a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $11,085, $24,004 and $71,552, respectively, at March 31, 2017 and $13,080, $37,869 and $128,219, respectively, at December 31, 2016, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12).

Interest-bearing deposits have original maturities of greater than three months but equal to or less than one year and are carried at cost that approximates fair value due to their short-term maturities.

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

Alternative investment funds primarily consist of interests in various Lazard-managed hedge funds, funds of funds and mutual funds.

Debt funds primarily consist of seed investments in funds related to our Asset Management business that invest in debt securities, amounts related to LFI discussed above and an investment in a Lazard-managed debt fund.

Equity funds primarily consist of seed investments in funds related to our Asset Management business that invest in equity securities, and amounts related to LFI discussed above.

Private equity investments include those owned by Lazard and those consolidated but not owned by Lazard. Private equity investments owned by Lazard are primarily comprised of investments in private equity funds. Such investments primarily include (i) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies, (ii) a mezzanine fund, which invests in mezzanine debt of a diversified selection of small- to mid-cap European companies, and (iii) a fund targeting significant noncontrolling-stake investments in established private companies.

Private equity investments consolidated but not owned by Lazard relate to the economic interests that are owned by the management team and other investors in the Edgewater Funds (“Edgewater”).

During the three month periods ended March 31, 2017 and 2016, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to “trading” securities still held as of the reporting date as follows:

	Three Months Ended
	March 31,
	2017		2016
Net unrealized investment gains	$	13,180	$	5,315

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Fair Value Measurements

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities—Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access.

Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data.

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis.

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

The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are primarily based on the publicly reported closing price for the fund.

The fair value of investments in private equity funds is classified as Level 2 for certain investments that were valued based on a probable transaction value as of the reporting date that differs from net asset value (“NAV”).

The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of the contingent consideration liability is classified as Level 3 and the estimated fair value of the liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods.Any change in the fair value is recognized in “amortization and other acquisition-related costs” in the condensed consolidated statement of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds. The contingent consideration liability is initially recorded at the estimated fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. See Note 10.

The fair value of derivatives entered into by the Company is classified as Level 2 and is based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair value of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 6.

Investments Measured at NAV—As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) private equity funds are not redeemable in the near term as a result of redemption restrictions.

The following tables present, as of March 31, 2017 and December 31, 2016, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient:

	March 31, 2017
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	41,425	$	-	$	1,537	$	-	$	42,962
Funds:
Alternative investments		23,999		-		-		7,047		31,046
Debt		61,480		-		-		6		61,486
Equity		135,884		-		-		42		135,926
Private equity		-		28,196		-		81,753		109,949
Derivatives		-		4,057		-		-		4,057
Total	$	262,788	$	32,253	$	1,537	$	88,848	$	385,426
Liabilities:
Securities sold, not yet purchased	$	4,293	$	-	$	-	$	-	$	4,293
Contingent consideration liability		-		-		25,104		-		25,104
Derivatives		-		179,023		-		-		179,023
Total	$	4,293	$	179,023	$	25,104	$	-	$	208,420

	December 31, 2016
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	39,509	$	-	$	1,508	$	-	$	41,017
Funds:
Alternative investments		25,316		-		-		7,125		32,441
Debt		74,591		-		-		6		74,597
Equity		188,229		-		-		39		188,268
Private equity		-		-		-		122,421		122,421
Derivatives		-		1,993		-		-		1,993
Total	$	327,645	$	1,993	$	1,508	$	129,591	$	460,737
Liabilities:
Securities sold, not yet purchased	$	4,482	$	-	$	-	$	-	$	4,482
Contingent consideration liability		-				22,608				22,608
Derivatives		-		182,223		-		-		182,223
Total	$	4,482	$	182,223	$	22,608	$	-	$	209,313

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended March 31, 2017
	Beginning Balance		NetUnrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,508	$	2	$	-	$	(8	)	$	35	$	1,537
Total Level 3 Assets	$	1,508	$	2	$	-	$	(8	)	$	35	$	1,537
Liabilities:
Contingent consideration liability	$	22,608	$	2,745	$	-	$	(249	)	$	-	$	25,104
Total Level 3 Liabilities	$	22,608	$	2,745	$	-	$	(249	)	$	-	$	25,104

	Three Months Ended March 31, 2016
	Beginning Balance		NetUnrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,276	$	3	$	-	$	-	$	22	$	1,301
Total Level 3 Assets	$	1,276	$	3	$	-	$	-	$	22	$	1,301

(a) Earnings recorded in “other revenue” for investments in equities for the three month periods ended March 31, 2017 and 2016 include net unrealized gains of $0 and $3, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month period ended March 31, 2017 includes unrealized losses of $2,745.

There were no transfers between any of the Level 1, 2 and 3 categories in the fair value measurement hierarchy during the three month periods ended March 31, 2017 and 2016. Certain investments that were valued at NAV as of December 31, 2016 were transferred to Level 2 from the NAV category in the three months ended March 31, 2017, as these investments were valued based on a probable transaction value as of the reporting date that differs from NAV.

The following tables present, at March 31, 2017 and December 31, 2016, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

March 31, 2017

Estimated Liquidation Period of Investments Not Redeemable

Investments Redeemable

Fair Value

Unfunded Commitments

% of Fair Value Not Redeemable

% Next 5 Years

% 5-10 Years

% Thereafter

Redemption Frequency

Redemption Notice Period

Alternativeinvestment funds:

Hedge funds

$

5,974

$

-

NA

NA

NA

NA

(a)

<30-60 days

Funds of funds

505

-

NA

NA

NA

NA

(b)

<30-90 days

Other

568

-

NA

NA

NA

NA

(c)

<30-60 days

Debt funds

6

-

NA

NA

NA

NA

(d)

30 days

Equity funds

42

-

NA

NA

NA

NA

(e)

<30-90 days

Private equity funds:

Equity growth

81,753

9,183

(f)

100

%

14

%

40

%

46

%

NA

NA

Total

$

88,848

$

9,183

(a) weekly (48%), monthly (2%) and quarterly (50%)

(b) monthly (98%) and quarterly (2%)

(c) daily (6%) and monthly (94%)

(d) daily (100%)

(e) daily (18%), monthly (51%) and quarterly (31%)

(f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,904 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

December 31, 2016

Estimated Liquidation Period of Investments Not Redeemable

Investments Redeemable

Fair Value

Unfunded Commitments

% of Fair Value Not Redeemable

% Next 5 Years

% 5-10 Years

% Thereafter

Redemption Frequency

Redemption Notice Period

Alternativeinvestment funds:

Hedge funds

$

6,190

$

-

NA

NA

NA

NA

(a)

<30-60 days

Funds of funds

492

-

NA

NA

NA

NA

(b)

<30-90 days

Other

443

-

NA

NA

NA

NA

(c)

<30-60 days

Debt funds

6

-

NA

NA

NA

NA

(d)

30 days

Equity funds

39

-

NA

NA

NA

NA

(e)

<30-90 days

Private equity funds:

Equity growth

90,824

9,183

(f)

100

%

12

%

33

%

55

%

NA

NA

Mezzanine debt

31,597

-

100

%

-

-

100

%

NA

NA

Total

$

129,591

$

9,183

(a) weekly (73%), monthly (2%) and quarterly (25%)

(b) monthly (98%) and quarterly (2%)

(c) daily (7%) and monthly (93%)

(d) daily (100%)

(e) daily (19%), monthly (50%) and quarterly (31%)

(f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,886 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

Investment Capital Funding Commitments—At March 31, 2017, the Company’s maximum unfunded commitments for capital contributions to investment funds primarily arose from commitments to EGCP III, which amounted to $8,613. The investment period for EGCP III ended on October 12, 2016, after which point the Company’s obligation to fund capital contributions for new investments in EGCP III expired. The Company remains obligated until October 12, 2023 (or any earlier liquidation of EGCP III) to make capital contributions necessary to fund follow-on investments and to pay for fund expenses.

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Derivatives

3 Months Ended

Mar. 31, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

6. DERIVATIVES

The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, total return swap contracts on various equity and debt indices and other derivative contracts to economically hedge exposures to fluctuations in currency exchange rates, interest rates and equity and debt prices. The Company reports its derivative instruments separately as assets and liabilities unless a legal right of set-off exists under a master netting agreement enforceable by law. The Company’s derivative instruments are recorded at their fair value, and are included in “other assets” and “other liabilities” on the condensed consolidated statements of financial condition. Gains and losses on the Company’s derivative instruments are generally included in “interest income” and “interest expense”, respectively, or “revenue-other”, depending on the nature of the underlying item, in the condensed consolidated statements of operations.

In addition to the derivative instruments described above, the Company records derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements, the fair value of which is based on the value of the underlying investments, adjusted for estimated forfeitures, and is included in “accrued compensation and benefits” in the condensed consolidated statements of financial condition. Changes in the fair value of the derivative liabilities are included in “compensation and benefits” in the condensed consolidated statements of operations, the impact of which equally offsets the changes in the fair value of investments which are currently expected to be delivered upon settlement of LFI and other similar deferred compensation arrangements, which are reported in “revenue-other” in the condensed consolidated statements of operations.

The table below presents the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
Derivative Assets:
Forward foreign currency exchange rate contracts	$	3,937	$	1,993
Total return swaps and other (a)		120		-
	$	4,057	$	1,993
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	736	$	2,792
Total return swaps and other (a)		3,547		9,043
LFI and other similar deferred compensation arrangements		174,740		170,388
	$	179,023	$	182,223

(a) For total return swaps, amounts represent the netting of gross derivative assets and liabilities of $197 and $3,624 as of March 31, 2017, respectively, and $357 and $9,400 as of December 31, 2016, 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 $12,376 and $16,996 as of March 31, 2017 and December 31, 2016, respectively.

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2017 and 2016, were as follows:

	Three Months Ended
	March 31,
	2017			2016
Forward foreign currency exchange rate contracts	$	1,472		$	(7,300	)
LFI and other similar deferred compensation arrangements		(7,353	)		2,514
Total return swaps and other		(5,385	)		(699	)
Total	$	(11,266	)	$	(5,485	)

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Property

3 Months Ended

Mar. 31, 2017

Property Plant And Equipment [Abstract]

Property

7. PROPERTY

At March 31, 2017 and December 31, 2016, property consisted of the following:

	Estimated Depreciable		March 31,		December 31,
	Life in Years		2017		2016
Buildings		33	$	134,711	$	132,821
Leasehold improvements	3-20			177,165		175,810
Furniture and equipment	3-10			180,120		172,353
Construction in progress				10,427		14,038
Total				502,423		495,022
Less - Accumulated depreciation and amortization				296,280		286,001
Property			$	206,143	$	209,021

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016 are presented below:

	March 31,		December 31,
	2017		2016
Goodwill	$	379,808	$	373,117
Other intangible assets (net of accumulated amortization)		8,100		8,907
	$	387,908	$	382,024

At March 31, 2017 and December 31, 2016, goodwill of $315,267 and $308,576, 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 three month periods ended March 31, 2017 and 2016 are as follows:

	Three Months Ended
	March 31,
	2017		2016
Balance, January 1	$	373,117	$	320,761
Foreign currency translation adjustments		6,691		6,289
Balance, March 31	$	379,808	$	327,050

All changes in the carrying amount of goodwill for the three month periods ended March 31, 2017 and 2016 are attributable to the Company’s Financial Advisory segment.

The gross cost and accumulated amortization of other intangible assets as of March 31, 2017 and December 31, 2016, by major intangible asset category, are as follows:

	March 31, 2017						December 31, 2016
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	35,279	$	27,744	$	7,535	$	35,259	$	26,984	$	8,275
Management fees, customer relationships    and non-compete agreements		33,730		33,165		565		33,728		33,096		632
	$	69,009	$	60,909	$	8,100	$	68,987	$	60,080	$	8,907

Amortization expense of intangible assets, included in “amortization and other acquisition-related costs” in the condensed consolidated statements of operations, for the three month periods ended March 31, 2017 and 2016 was $829 and $644, respectively. Estimated future amortization expense is as follows:

Year Ending December 31,	Amortization Expense (a)
2017 (April 1 through December 31)	$	6,562
2018		1,412
2019		74
2020		52
Total amortization expense	$	8,100

(a) Approximately 26% of intangible asset amortization is attributable to a noncontrolling interest.

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Senior Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Senior Debt

9. SENIOR DEBT

Senior debt is comprised of the following as of March 31, 2017 and December 31, 2016:

							Outstanding as of
	Initial			Annual			March 31, 2017						December 31, 2016
	Principal Amount		Maturity Date	Interest Rate(a)			Principal		Unamortized Debt Costs		Carrying Value		Principal		Unamortized Debt Costs		Carrying Value
Lazard Group 2020    Senior Notes		500,000	11/14/20		4.25	%	$	500,000	$	3,339	$	496,661	$	500,000	$	3,569	$	496,431
Lazard Group 2025    Senior Notes		400,000	2/13/25		3.75	%		400,000		3,714		396,286		400,000		3,833		396,167
Lazard Group 2027    Senior Notes		300,000	3/1/27		3.625	%		300,000		3,904		296,096		300,000		3,998		296,002
Total							$	1,200,000	$	10,957	$	1,189,043	$	1,200,000	$	11,400	$	1,188,600

(a) The effective interest rates of Lazard Group’s 4.25% senior notes due November 14, 2020 (the “2020 Notes”), Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”) and Lazard Group’s 3.625% senior notes due March 1, 2027  (the “2027 Notes”) are 4.43%, 3.87% and 3.76%, respectively.

On September 25, 2015, Lazard Group entered into an Amended and Restated Credit Agreement for a five-year $150,000 senior revolving credit facility with a group of lenders (the “Amended and Restated Credit Agreement”), which expires in September 2020. The Amended and Restated Credit Agreement amended and restated the previous credit agreement dated September 25, 2012. Borrowings under the Amended and Restated Credit Agreement generally will bear interest at LIBOR plus an applicable margin for specific interest periods determined based on Lazard Group’s highest credit rating from an internationally recognized credit agency. At March 31, 2017 and December 31, 2016, no amounts were outstanding under the Amended and Restated Credit Agreement.

The Amended and Restated Credit Agreement, the indenture and the supplemental indentures relating to Lazard Group’s senior notes contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. As of March 31, 2017, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured.

As of March 31, 2017, the Company had approximately $172,000 in unused lines of credit available to it, including the credit facility provided under the Amended and Restated Credit Agreement, and unused lines of credit available to LFB of approximately $21,000 (at March 31, 2017 exchange rates).

The Company’s senior debt at March 31, 2017 and December 31, 2016 is carried at historical amounts of $1,189,043 and $1,188,600, respectively. At those dates, the fair value of such senior debt was approximately $1,219,000 and $1,204,000, respectively. The fair value of the Company’s senior debt is based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. COMMITMENTS AND CONTINGENCIES

Leases—The Company has various leases and other contractual commitments arising in the ordinary course of business.

Guarantees—In the normal course of business, LFB provides indemnifications to third parties to protect them in the event of non-performance by its clients. At March 31, 2017, LFB had $3,174 of such indemnifications and held $3,092 of collateral/counter-guarantees to secure these commitments. The Company believes the likelihood of loss with respect to these indemnities is remote. Accordingly, no liability is recorded in the condensed consolidated statement of financial condition.

Business Acquisitions—For businesses acquired in 2016, consideration consists of (i) previously paid one-time cash payments, 60,817 shares of Class A common stock subject to non-compete provisions, and non-contingent interests exchangeable into 204,651 shares of Class A common stock, and (ii) up to 810,742 additional shares of Class A common stock that are subject to certain performance thresholds. As of March 31, 2017, none of the contingent shares had been earned.

Other Commitments—The Company has various other contractual commitments arising in the ordinary course of business. In addition, from time to time, each of LFB and LFNY may enter into underwriting commitments in which it will participate as an underwriter. At March 31, 2017, LFB and LFNY had no such underwriting commitments.

See Notes 5 and 13 for information regarding commitments relating to investment capital funding commitments and obligations to fund our pension plans, respectively.

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

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

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Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Stockholders' Equity

11. STOCKHOLDERS’ EQUITY

Share Repurchase Program—During the three month period ended March 31, 2017 and since 2014, the Board of Directors of Lazard authorized the repurchase of Class A common stock as set forth in the table below:

Date	Repurchase Authorization		Expiration
April 2014	$	200,000	December31, 2015
February 2015	$	150,000	December31, 2016
January 2016	$	200,000	December31, 2017
April 2016	$	113,182	December31, 2017
November 2016	$	236,000	December31, 2018

The Company expects that the share repurchase program will primarily be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from quarter to quarter due to a variety of factors. Purchases with respect to such program are set forth in the table below:

Three Months Ended March 31:	Number of Shares Purchased		Average Price Per Share
2016		2,424,571	$	34.29
2017		2,464,967	$	43.02

During the three month periods ended March 31, 2017 and 2016, certain of our executive officers received Class A common stock in connection with the vesting of previously-granted deferred equity incentive awards. The vesting of such equity awards gave rise to a tax payable by the executive officers, and, consistent with our past practice, the Company purchased shares of Class A common stock from the executive officers equal in value to all or a portion of the estimated amount of such tax. In addition, during the three month period ended March 31, 2017, the Company purchased shares of Class A common stock from an executive officer. The aggregate value of all such purchases during the three month periods ended March 31, 2017 and 2016 was approximately $14,700 and $3,100, respectively.

As of March 31, 2017, a total of $249,078 of share repurchase authorization remained available under the Company’s share repurchase program, $13,078 of which will expire on December 31, 2017 and $236,000 of which will expire on December 31, 2018.

During the three month period ended March 31, 2017, the Company had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

Preferred Stock—Lazard Ltd has 15,000,000 authorized shares of preferred stock, par value $0.01 per share, inclusive of its Series A and Series B preferred stock. Series A and Series B preferred shares were issued in connection with certain prior year business acquisitions and were each non-participating securities convertible into Class A common stock, and had no voting or dividend rights. As of both March 31, 2017 and December 31, 2016, no shares of Series A or Series B preferred stock were outstanding.

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The tables below reflect the balances of each component of AOCI at March 31, 2017 and 2016 and activity during the three month periods then ended:

	Currency Translation Adjustments			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2017	$	(155,204	)	$	(159,020	)	$	(314,224	)	$	(2	)	$	(314,222	)
Activity January 1 to March 31, 2017:
Other comprehensive income (loss) before    reclassifications		16,932			(495	)		16,437			-			16,437
Adjustments for items reclassified to earnings,    net of tax					1,086			1,086			-			1,086
Net other comprehensive income		16,932			591			17,523			-			17,523
Balance, March 31, 2017	$	(138,272	)	$	(158,429	)	$	(296,701	)	$	(2	)	$	(296,699	)

	Currency Translation Adjustments			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2016	$	(97,284	)	$	(137,073	)	$	(234,357	)	$	(1	)	$	(234,356	)
Activity January 1 to March 31, 2016:
Other comprehensive income (loss) before    reclassifications		11,739			(141	)		11,598			-			11,598
Adjustments for items reclassified to earnings,    net of tax		-			1,186			1,186			-			1,186
Net other comprehensive income		11,739			1,045			12,784			-			12,784
Balance, March 31, 2016	$	(85,545	)	$	(136,028	)	$	(221,573	)	$	(1	)	$	(221,572	)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Amortization relating to employee benefit plans (a)	$	1,362	$	1,579
Less - related income taxes		276		393
Total reclassifications, net of tax	$	1,086	$	1,186

(a) Included in the computation of net periodic benefit cost (see Note 13). Such amounts are included in “compensation and benefits” expense on the condensed consolidated statements of operations.

Noncontrolling Interests—Noncontrolling interests principally represent interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own.

The tables below summarize net income attributable to noncontrolling interests for the three month periods ended March 31, 2017 and 2016 and noncontrolling interests as of March 31, 2017 and December 31, 2016 in the Company’s condensed consolidated financial statements:

	Net Income Attributable to Noncontrolling Interests
	Three Months Ended
	March 31,
	2017		2016
Edgewater	$	2,877	$	3,900

	Noncontrolling Interests as of
	March 31,		December 31,
	2017		2016
Edgewater	$	59,533	$	57,238
Other		577		588
Total	$	60,110	$	57,826

Dividends Declared, April 26, 2017—On April 26, 2017, the Board of Directors of Lazard declared a quarterly dividend of $0.41 per share on our Class A common stock, payable on May 19, 2017, to stockholders of record on May 8, 2017.

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Incentive Plans

3 Months Ended

Mar. 31, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Incentive Plans

12. INCENTIVE PLANS

Share-Based Incentive Plan Awards

A description of Lazard Ltd’s 2008 Plan and 2005 Equity Incentive Plan (the “2005 Plan”) and activity with respect thereto during the three month periods ended March 31, 2017 and 2016 is presented below.

Shares Available Under the 2008 Plan and 2005 Plan

The 2008 Plan authorizes the issuance of shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and other share-based awards. Under the 2008 Plan, the maximum number of shares available is based on a formula that limits the aggregate number of shares that may, at any time, be subject to awards that are considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock.

The 2005 Plan authorized the issuance of up to 25,000,000 shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs and other share-based awards. Each RSU or similar award granted under the 2005 Plan represents a contingent right to receive one share of Class A common stock, at no cost to the recipient. The fair value of such awards is generally determined based on the closing market price of Class A common stock at the date of grant. The 2005 Plan expired in the second quarter of 2015, although unvested awards granted under the 2005 Plan remain outstanding and continue to be subject to its terms.

The following reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, PRSUs and restricted stock awards) and “professional services” expense (with respect to deferred stock units (“DSUs”)) within the Company’s accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Share-based incentive awards:
RSUs	$	55,941	$	54,408
PRSUs		11,782		16,689
Restricted Stock		9,649		23,476
DSUs		155		65
Total	$	77,527	$	94,638

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

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

The Company’s share-based incentive plans and awards are described below.

RSUs and DSUs

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

RSUs generally include a dividend participation right that provides that during vesting periods each RSU is attributed additional RSUs (or fractions thereof) equivalent to any dividends paid on Class A common stock during such period. During the three month periods ended March 31, 2017 and 2016, 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:

	Three Months Ended
	March 31,
	2017		2016
Number of RSUs issued		613,795		700,651
Charges to retained earnings, net of estimated forfeitures	$	25,977	$	23,793

Non-executive members of the Board of Directors (“Non-Executive Directors”) receive approximately 55% of their annual compensation for service on the Board of Directors and its committees in the form of DSUs, which resulted in 1,551 DSUs granted during the three month period ended March 31, 2017.  Their remaining compensation is payable in cash, which they may elect to receive in the form of additional DSUs under the Directors’ Fee Deferral Unit Plan described below. DSUs are convertible into shares of Class A common stock at the time of cessation of service to the Board of Directors and, for purposes of calculating diluted net income per share, are included in the diluted weighted average shares of Class A common stock outstanding using the “treasury stock” method. DSUs include a cash dividend participation right equivalent to dividends paid on Class A common stock.

The Company’s Directors’ Fee Deferral Unit Plan permits the Non-Executive Directors to elect to receive additional DSUs in lieu of some or all of their cash fees. The number of DSUs granted to a Non-Executive Director pursuant to this election will equal the value of cash fees that the applicable Non-Executive Director has elected to forego pursuant to such election, divided by the market value of a share of Class A common stock on the date immediately preceding the date of the grant. During the three month periods ended March 31, 2017 and 2016, 3,555 and 2,110 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 three month periods ended March 31, 2017 and 2016:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2017		11,698,138		$	40.65		276,725	$	36.05
Granted (including 613,795 RSUs relating to dividend    participation)		4,926,935		$	43.05		5,106	$	42.91
Forfeited		(19,077	)	$	39.88				-
Vested		(3,621,454	)	$	45.53				-
Balance, March 31, 2017		12,984,542		$	40.20		281,831	$	36.18
Balance, January 1, 2016		9,599,658		$	44.06		312,670	$	35.98
Granted (including 700,651 RSUs relating to dividend    participation)		6,140,020		$	34.54		2,110	$	31.47
Forfeited		(55,826	)	$	41.58		-		-
Vested		(4,100,192	)	$	39.12		-		-
Balance, March 31, 2016		11,583,660		$	40.78		314,780	$	35.95

In connection with RSUs that vested during the three month periods ended March 31, 2017 and 2016, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,229,531 and 1,327,399 shares of Class A common stock during such respective three month periods. Accordingly, 2,391,923 and 2,772,793 shares of Class A common stock held by the Company were delivered during the three month periods ended March 31, 2017 and 2016, respectively.

As of March 31, 2017, estimated unrecognized RSU compensation expense was approximately $260,079, with such expense expected to be recognized over a weighted average period of approximately 1.0 year subsequent to March 31, 2017.

Restricted Stock

The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the three month periods ended March 31, 2017 and 2016:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,655,073		$	40.95
Granted		841,355		$	42.58
Forfeited		(11,087	)	$	41.38
Vested		(263,457	)	$	47.93
Balance, March 31, 2017		2,221,884		$	40.73
Balance, January 1, 2016		713,738		$	47.12
Granted		1,795,258		$	36.78
Forfeited		(25,662	)	$	39.89
Vested		(627,110	)	$	36.61
Balance, March 31, 2016		1,856,224		$	40.77

In connection with shares of restricted Class A common stock that vested during the three month periods ended March 31, 2017 and 2016, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 108,239 and 77,795 shares of Class A common stock during such respective three month periods. Accordingly, 155,218 and 549,315 shares of Class A common stock held by the Company were delivered during the three month periods ended March 31, 2017 and 2016, respectively.

The restricted stock awards include a cash dividend participation right equivalent to dividends paid on Class A common stock during the period, which will vest concurrently with the underlying restricted stock award. At March 31, 2017, estimated unrecognized restricted stock expense was approximately $55,675, with such expense to be recognized over a weighted average period of approximately 0.9 years subsequent to March 31, 2017.

PRSUs

PRSUs are RSUs that are subject to both performance-based and service-based vesting conditions. The number of shares of Class A common stock that a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance metrics that relate to the Company’s performance over a three-year period. The target number of shares of Class A common stock subject to each PRSU is one; however, based on the achievement of the performance criteria, the number of shares of Class A common stock that may be received in connection with each PRSU generally can range from zero to two times the target number. PRSUs will vest on a single date three years following the date of the grant, provided the applicable service and performance conditions are satisfied. In addition, the performance metrics applicable to each PRSU will be evaluated on an annual basis at the end of each fiscal year during the performance period and, if the Company has achieved a threshold level of performance with respect to the fiscal year, 25% of the target number of shares of Class A common stock subject to each PRSU will no longer be at risk of forfeiture based on the achievement of performance criteria. PRSUs include dividend participation rights that provide that during vesting periods, the target number of PRSUs (or, following the relevant performance period, the actual number of shares of Class A common stock that are no longer subject to performance conditions) receive dividend equivalents at the same rate that dividends are paid on Class A common stock during such periods. These dividend equivalents are credited as RSUs that are not subject to the performance-based vesting criteria but are otherwise subject to the same restrictions as the underlying PRSUs to which they relate.

The following is a summary of activity relating to PRSUs during the three month periods ended March 31, 2017 and 2016:

	PRSUs			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,590,756		$	40.76
Granted (a)		458,113		$	43.76
Vested		(752,770	)	$	42.26
Balance, March 31, 2017		1,296,099		$	40.95
Balance, January 1, 2016		1,019,038		$	44.49
Granted (a)		627,956		$	32.91
Vested		(417,018	)	$	38.43
Balance, March 31, 2016		1,229,976		$	40.63

(a) Represents PRSU awards granted during the relevant year at the target payout level.

In connection with certain PRSUs that vested during the three month periods ended March 31, 2017 and 2016, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 85,629 and 64,169 shares of Class A common stock during such respective three month periods. Accordingly, 667,141 and 352,849 shares of Class A common stock held by the Company were delivered during the three month periods ended March 31, 2017 and 2016, respectively.

Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of Class A common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. As of March 31, 2017, the total estimated unrecognized compensation expense was approximately $20,853, and the Company expects to amortize such expense over a weighted-average period of approximately 0.7 years subsequent to March 31, 2017.

LFI and Other Similar Deferred Compensation Arrangements

Commencing in February 2011, the Company granted LFI to eligible employees. In connection with LFI and other similar deferred compensation arrangements, which generally require future service as a condition for vesting, the Company recorded a prepaid compensation asset and a corresponding compensation liability on the grant date based upon the fair value of the award. The prepaid asset is amortized on a straight-line basis over the applicable vesting periods or requisite service periods (which are generally similar to the comparable periods for RSUs), and is charged to “compensation and benefits” expense within the Company’s condensed consolidated statement of operations. LFI and similar deferred compensation arrangements that do not require future service are expensed immediately. The related compensation liability is accounted for at fair value as a derivative liability, which contemplates the impact of estimated forfeitures, and is adjusted for changes in fair value primarily related to changes in value of the underlying investments.

The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the three month periods ended March 31, 2017 and 2016:

	Prepaid Compensation Asset			Compensation Liability
Balance, January 1, 2017	$	49,650		$	170,388
Granted		77,580			77,580
Settled		-			(81,559	)
Forfeited		(93	)		(133	)
Amortization		(12,491	)		-
Change in fair value related to:
Increase in fair value of underlying investments		-			7,353
Adjustment for estimated forfeitures		-			532
Other		(12	)		579
Balance, March 31, 2017	$	114,634		$	174,740

	Prepaid Compensation Asset			Compensation Liability
Balance, January 1, 2016	$	75,703		$	193,574
Granted		51,871			51,871
Settled		-			(64,488	)
Forfeited		(340	)		(681	)
Amortization		(19,436	)		-
Change in fair value related to:
Decrease in fair value of underlying investments		-			(2,514	)
Adjustment for estimated forfeitures	-				1,804
Other		132			913
Balance, March 31, 2016	$	107,930		$	180,479

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 1.0 year subsequent to March 31, 2017.

The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Amortization, net of forfeitures	$	12,983	$	20,899
Change in the fair value of underlying investments		7,353		(2,514	)
Total	$	20,336	$	18,385

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2017

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, until December 2016, in the U.S., a partially funded contributory medical post-retirement plan covering certain qualifying U.S. employees (the “medical plan” and together with the pension plans, the “post-retirement plans”). The Company also offers defined contribution plans to its employees. The post-retirement plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense on the condensed consolidated statements of operations.

Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees (the “Trustees”). Management also evaluates from time to time whether to make voluntary contributions to the plans.

The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s post-retirement plans for the three month periods ended March 31, 2017 and 2016:

	Pension Plans						Medical Plan
	Three Months Ended March 31,
	2017			2016			2017		2016
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	340		$	307		$	-	$	4
Interest cost		3,981			5,213			-		45
Expected return on plan assets		(6,105	)		(7,166	)		-		-
Amortization of:
Prior service cost		30			590			-		-
Net actuarial loss (gain)		1,332			989			-		-
Net periodic benefit cost (credit)	$	(422	)	$	(67	)	$	-	$	49

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Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

14. INCOME TAXES

Lazard Ltd, through its subsidiaries, is subject to U.S. federal income taxes on all of its U.S. operating income, as well as on the portion of non-U.S. income attributable to its U.S. subsidiaries. In addition, Lazard Ltd, through its subsidiaries, is subject to state and local taxes on its income apportioned to various state and local jurisdictions. Outside the U.S., Lazard Group operates principally through subsidiary corporations that are subject to local income taxes in foreign jurisdictions. Lazard Group is also subject to New York City Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.

The Company recorded income tax provisions of $39,767 and $27,654 for the three month periods ended March 31, 2017 and 2016, respectively, representing effective tax rates of 26.5% and 28.1%, respectively. The difference between the U.S. federal statutory rate of 35.0% and the effective tax rates reflected above principally relates to (i) taxes payable to foreign jurisdictions that are not offset against U.S. income taxes, (ii) foreign source income (loss) not subject to U.S. income taxes (including interest on intercompany financings), (iii) change in the U.S. federal valuation allowance affecting the provision for income taxes, (iv) excess net tax benefit for share-based incentive compensation, and (v) U.S. state and local taxes, which are incremental to the U.S. federal statutory tax rate.

On January 1, 2017, the Company adopted new accounting guidance on share-based incentive compensation. Upon adoption, the Company recognized excess tax benefits of $7,356 from the vesting of share-based incentive compensation in the provision for income taxes in the condensed consolidated statements of operations for the three month period ended March 31, 2017. The Company also recorded deferred tax assets of $81,544, net of a valuation allowance of $12,090, as of January 1, 2017, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based incentive compensation, with an offsetting adjustment to retained earnings. See Note 2 for further information on the adoption of this new guidance.

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

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Net Income Per Share of Class A Common Stock

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Net Income Per Share of Class A Common Stock

15. NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company’s basic and diluted net income per share calculations for the three month periods ended March 31, 2017 and 2016 are computed as described below.

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods.

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.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock required to settle share-based incentive compensation.

The calculations of the Company’s basic and diluted net income per share and weighted average shares outstanding for the three month periods ended March 31, 2017 and 2016 are presented below:

	Three Months Ended
	March 31,
	2017		2016
Net income attributable to Lazard Ltd - basic	$	107,553	$	66,823
Net income attributable to Lazard Ltd - diluted	$	107,553	$	66,823
Weighted average number of shares of Class A common    stock outstanding		122,531,221		125,968,430
Add - adjustment for shares of Class A common stock    issuable on a non-contingent basis		283,942		72,011
Weighted average number of shares of Class A common    stock outstanding - basic		122,815,163		126,040,441
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A    common stock issuable from share-based    incentive compensation		9,874,212		6,850,843
Weighted average number of shares of Class A common stock    outstanding - diluted		132,689,375		132,891,284
Net income attributable to Lazard Ltd per share of Class    A common stock:
Basic	$	0.88	$	0.53
Diluted	$	0.81	$	0.50

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Related Parties

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related Parties

16. RELATED PARTIES

Sponsored Funds

The Company serves as an investment advisor for certain affiliated investment companies and fund entities and receives management fees and, for the alternative investment funds, performance fees for providing such services. Investment advisory fees relating to such services were $140,577 and $118,910 for the three month periods ended March 31, 2017 and 2016, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $52,867 and $49,944 remained as receivables at March 31, 2017 and December 31, 2016, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition.

Tax Receivable Agreement

The Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “Amended and Restated Tax Receivable Agreement”), between Lazard and LTBP Trust, a Delaware statutory trust (the “Trust”), provides for the payment by our subsidiaries to the Trust of (i) approximately 45% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of certain increases in tax basis and of certain other tax benefits related to the Amended and Restated Tax Receivable Agreement, and (ii) an amount that we currently expect will approximate 85% of the cash tax savings that may arise from tax benefits attributable to payments under the Amended and Restated Tax Receivable Agreement. Our subsidiaries expect to benefit from the balance of cash savings, if any, in income tax that our subsidiaries realize. Any amount paid by our subsidiaries to the Trust will generally be distributed to the owners of the Trust, including our executive officers, in proportion to their beneficial interests in the Trust.

For purposes of the Amended and Restated Tax Receivable Agreement, cash savings in income and franchise tax will be computed by comparing our subsidiaries’ actual income and franchise tax liability to the amount of such taxes that our subsidiaries would have been required to pay had there been no increase in the tax basis of certain tangible and intangible assets of Lazard Group attributable to our subsidiaries’ interest in Lazard Group and had our subsidiaries not entered into the Amended and Restated Tax Receivable Agreement.  The term of the Amended and Restated Tax Receivable Agreement will continue until approximately 2033 or, if earlier, until all relevant tax benefits have been utilized or expired.

 The amount of the Amended and Restated Tax Receivable Agreement liability is an undiscounted amount based upon currently enacted tax laws, the current structure of the Company and various assumptions regarding potential future operating profitability. The assumptions reflected in the estimate involve significant judgment. As such, the actual amount and timing of payments under the Amended and Restated Tax Receivable Agreement could differ materially from our estimates. Any changes in the amount of the estimated liability would be recorded as a non-compensation expense in the condensed consolidated statement of operations. Adjustments, if necessary, to the related deferred tax assets would be recorded through the “provision (benefit) for income taxes”.

The cumulative liability relating to our obligations under the Amended and Restated Tax Receivable Agreement as of March 31, 2017 and December 31, 2016 was $512,874 and $513,610, respectively, and is recorded in “tax receivable agreement obligation” on the condensed consolidated statements of financial condition. The balance at March 31, 2017 reflects a payment made under the Amended and Restated Tax Receivable Agreement in the first quarter of 2017 of $736.

Other

See Note 11 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers.

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Regulatory Authorities

3 Months Ended

Mar. 31, 2017

Regulatory Capital Requirements [Abstract]

Regulatory Authorities

17. REGULATORY AUTHORITIES

LFNY is a U.S. registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the 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. In addition, the ratio of aggregate indebtedness (as defined) to net capital may not exceed 15:1. At March 31, 2017, LFNY’s regulatory net capital was $79,663, which exceeded the minimum requirement by $74,877. LFNY’s aggregate indebtedness to net capital ratio was 0.90:1 as of March 31, 2017.

Certain U.K. subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (collectively, the “U.K. Subsidiaries”) are regulated by the Financial Conduct Authority. At March 31, 2017, the aggregate regulatory net capital of the U.K. Subsidiaries was $128,206, which exceeded the minimum requirement by $112,123.

CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) for its banking activities conducted through its subsidiary, LFB. LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by LFG and other clients, and asset-liability management. The investment services activities of the Paris group, exercised through LFB and other subsidiaries of CFLF, primarily LFG (asset management), also are subject to regulation and supervision by the Autorité des Marchés Financiers. At March 31, 2017, the consolidated regulatory net capital of CFLF was $133,162, which exceeded the minimum requirement set for regulatory capital levels by $88,708. In addition, pursuant to the consolidated supervision rules in the European Union, LFB, in particular, as a French credit institution, is required to be supervised by a regulatory body, either in the U.S. or in the European Union. During the third quarter of 2013, the Company and the ACPR agreed on terms for the consolidated supervision of LFB and certain other non-Financial Advisory European subsidiaries of the Company (referred to herein, on a combined basis, as the “combined European regulated group”) under such rules. Under this supervision, the combined European regulated group is required to comply with minimum requirements for regulatory net capital to be reported on a quarterly basis and satisfy periodic financial and other reporting obligations. At December 31, 2016, the regulatory net capital of the combined European regulated group was $159,102, which exceeded the minimum requirement set for regulatory capital levels by $84,949. Additionally, the combined European regulated group, together with our European Financial Advisory entities, is required to perform an annual risk assessment and provide certain other information on a periodic basis, including financial reports and information relating to financial performance, balance sheet data and capital structure.

Certain other U.S. and non-U.S. subsidiaries are subject to various capital adequacy requirements promulgated by various regulatory and exchange authorities in the countries in which they operate. At March 31, 2017, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $120,725, which exceeded the minimum required capital by $94,924.

At March 31, 2017, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

Any new or expanded rules and regulations that may be adopted in countries in which we operate (including regulations that have not yet been proposed) could affect us in other ways.

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Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

18. SEGMENT INFORMATION

The Company’s reportable segments offer different products and services and are managed separately as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed to determine the allocation of resources and to assess its performance. The Company’s principal operating activities are included in its Financial Advisory and Asset Management business segments as described in Note 1 above. In addition, as described in Note 1, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month periods ended March 31, 2017 and 2016 is prepared using the following methodology:

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

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

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

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

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

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

		Three Months Ended
		March 31,
		2017			2016
Financial Advisory	Net Revenue	$	335,812		$	266,014
	Operating Expenses		262,751			227,078
	Operating Income	$	73,061		$	38,936
Asset Management	Net Revenue	$	283,363		$	245,759
	Operating Expenses		188,751			175,161
	Operating Income	$	94,612		$	70,598
Corporate	Net Revenue	$	4,289		$	(13,555	)
	Operating Expenses		21,765			(2,398	)
	Operating Loss	$	(17,476	)	$	(11,157	)
Total	Net Revenue	$	623,464		$	498,218
	Operating Expenses		473,267			399,841
	Operating Income	$	150,197		$	98,377

	As Of
	March 31, 2017		December 31, 2016
Total Assets
Financial Advisory	$	828,374	$	907,035
Asset Management		572,915		645,653
Corporate		2,983,969		3,003,820
Total	$	4,385,258	$	4,556,508

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Organization and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization

Organization

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

Lazard Ltd indirectly held 100% of all outstanding Lazard Group common membership interests as of March 31, 2017 and December 31, 2016. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group, which is governed by an Amended and Restated Operating Agreement dated as of October 26, 2015, as amended (the “Operating Agreement”).

Lazard Ltd’s primary operating asset is its indirect ownership of the common membership interests of, and managing member interests in, Lazard Group, whose principal operating activities are included in two business segments:

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

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

In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness, certain contingent obligations, and assets and liabilities associated with Lazard Group’s Paris-based subsidiary Lazard Frères Banque SA (“LFB”).

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard 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, 2016. The accompanying December 31, 2016 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

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

The consolidated results of operations for the three month period ended March 31, 2017 are not indicative of the results to be expected for any future interim or annual period.

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

The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates:

• Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs, and

• Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE.

When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings, or (ii) elects the option to measure at fair value. Intercompany transactions and balances have been eliminated.

Recent Accounting Developments

Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting—In March 2016, the Financial Accounting Standards Board (the “FASB”) issued new guidance regarding share-based incentive compensation. The new guidance includes several amendments which affect various aspects of the accounting for share-based incentive compensation transactions, including the income tax consequences, estimation of forfeitures, effect on earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this new guidance on January 1, 2017. The new guidance has since January 1, 2017 affected, and the Company expects that in future periods the new guidance will affect, the provision for income taxes for the delivery of stock under share-based incentive compensation arrangements, as well as the effective tax rate in the relevant periods, which could be material to the condensed consolidated statements of operations and the classification of cash flows in the relevant periods. The inclusion of excess tax benefits as an operating activity within the statement of cash flows was adopted on a prospective basis, with prior periods unadjusted. Based on the new guidance, the excess tax benefits are no longer included as assumed proceeds in the calculation of earnings per share under the treasury stock method on a prospective basis. Upon adoption of the new guidance, the Company also recorded deferred tax assets of $81,544, net of a valuation allowance of $12,090, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based incentive compensation arrangements, with an offsetting adjustment to retained earnings. With respect to forfeiture rates, the Company will continue to estimate the number of awards expected to be forfeited, rather than electing the option to account for forfeitures as they occur. See Note 14.

Revenue from Contracts with Customers—In May 2014, the FASB issued comprehensive new revenue recognition guidance. The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The guidance also changes the accounting for certain contract costs, including whether they may be offset against revenue in the condensed consolidated statements of operations. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. The guidance may be adopted using a full retrospective approach or a modified cumulative effect approach. During 2016, the FASB issued additional clarifications for certain aspects of the new revenue recognition guidance. The Company currently expects to adopt the revenue recognition guidance in the first quarter of 2018. The Company’s implementation efforts include the identification of revenue within the scope of the guidance and the evaluation of revenue contracts. The Company also continues to evaluate both the timing of revenue recognition and the presentation of certain contract costs.

Classification of Certain Cash Receipts and Cash Payments—In August and November 2016, the FASB issued updated guidance which clarifies how a company should classify certain cash receipts and cash payments on the statement of cash flows and clarifies that restricted cash should be included in the total of cash and cash equivalents on the statement of cash flows. The new guidance for both updates is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The new guidance is to be applied on a retrospective basis. The Company is currently evaluating the new guidance.

Clarifying the Definition of a Business—In January 2017, the FASB issued updated guidance to clarify the definition of a business within the context of business combinations. The updated guidance requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This updated guidance is expected to reduce the number of transactions that need to be further evaluated as business combinations. If further evaluation is necessary, the updated guidance will require that a business set include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The updated guidance will remove the evaluation of whether a market participant could replace missing elements. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and is to be applied on a prospective basis. The Company is currently evaluating the new guidance.

Compensation—Retirement Benefits—Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost—In March 2016, the FASB issued updated guidance on the presentation of net benefit cost in the statement of operations and the components eligible for capitalization. The new guidance requires that only the service cost component of net periodic pension cost and net periodic postretirement benefit cost be presented with other employee compensation costs in operating expenses. The other components of net benefit cost, including amortization of prior service cost, and gains and losses from settlements and curtailments, are to be included in non-operating expenses. The new guidance also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the new guidance.

Leases—In February 2016, the FASB issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial condition, (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and (iii) classify all cash payments within operating activities in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The new guidance is to be applied on a modified retrospective basis. The Company is currently evaluating the new guidance.

Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments—In June 2016, the FASB issued new guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The new guidance is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the new guidance.

Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment—In January 2017, the FASB issued updated guidance which eliminated Step 2 from the goodwill impairment test. Step 2 is the process of measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires entities to measure a goodwill impairment loss as the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the carrying amount of goodwill. The FASB also eliminated the requirements for entities that have reporting units with zero or negative carrying amounts to perform a qualitative assessment for the goodwill impairment test. Instead, those entities would be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for interim or annual goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the new guidance.

Derivative Instruments

The Company enters into forward foreign currency exchange rate contracts, interest rate swaps, interest rate futures, total return swap contracts on various equity and debt indices and other derivative contracts to economically hedge exposures to fluctuations in currency exchange rates, interest rates and equity and debt prices. The Company reports its derivative instruments separately as assets and liabilities unless a legal right of set-off exists under a master netting agreement enforceable by law. The Company’s derivative instruments are recorded at their fair value, and are included in “other assets” and “other liabilities” on the condensed consolidated statements of financial condition. Gains and losses on the Company’s derivative instruments are generally included in “interest income” and “interest expense”, respectively, or “revenue-other”, depending on the nature of the underlying item, in the condensed consolidated statements of operations.

In addition to the derivative instruments described above, the Company records derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements, the fair value of which is based on the value of the underlying investments, adjusted for estimated forfeitures, and is included in “accrued compensation and benefits” in the condensed consolidated statements of financial condition. Changes in the fair value of the derivative liabilities are included in “compensation and benefits” in the condensed consolidated statements of operations, the impact of which equally offsets the changes in the fair value of investments which are currently expected to be delivered upon settlement of LFI and other similar deferred compensation arrangements, which are reported in “revenue-other” in the condensed consolidated statements of operations.

Fair Value Measurement Policy

Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities—Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access.

Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data.

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis.

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

The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are primarily based on the publicly reported closing price for the fund.

The fair value of investments in private equity funds is classified as Level 2 for certain investments that were valued based on a probable transaction value as of the reporting date that differs from net asset value (“NAV”).

The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of the contingent consideration liability is classified as Level 3 and the estimated fair value of the liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods.Any change in the fair value is recognized in “amortization and other acquisition-related costs” in the condensed consolidated statement of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds. The contingent consideration liability is initially recorded at the estimated fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. See Note 10.

The fair value of derivatives entered into by the Company is classified as Level 2 and is based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair value of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 6.

Investments Measured at NAV—As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) private equity funds are not redeemable in the near term as a result of redemption restrictions.

Share-Based Incentive Plan Awards

Share-Based Incentive Plan Awards

A description of Lazard Ltd’s 2008 Plan and 2005 Equity Incentive Plan (the “2005 Plan”) and activity with respect thereto during the three month periods ended March 31, 2017 and 2016 is presented below.

Shares Available Under the 2008 Plan and 2005 Plan

The 2008 Plan authorizes the issuance of shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”) and other share-based awards. Under the 2008 Plan, the maximum number of shares available is based on a formula that limits the aggregate number of shares that may, at any time, be subject to awards that are considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of Class A common stock.

The 2005 Plan authorized the issuance of up to 25,000,000 shares of Class A common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs and other share-based awards. Each RSU or similar award granted under the 2005 Plan represents a contingent right to receive one share of Class A common stock, at no cost to the recipient. The fair value of such awards is generally determined based on the closing market price of Class A common stock at the date of grant. The 2005 Plan expired in the second quarter of 2015, although unvested awards granted under the 2005 Plan remain outstanding and continue to be subject to its terms.

Employer Contributions to Pension Plans

Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees (the “Trustees”). Management also evaluates from time to time whether to make voluntary contributions to the plans.

Computation of Basic and Diluted Net Income per Share

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods.

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.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock required to settle share-based incentive compensation.

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Receivables (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Schedule of Activity in Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts for the three month periods ended March 31, 2017 and 2016 was as follows:

	Three Months Ended
	March 31,
	2017			2016
Beginning Balance	$	16,386		$	12,882
Bad debt expense, net of recoveries		13,651			514
Charge-offs, foreign currency translation and other adjustments		(375	)		(2,166	)
Ending Balance	$	29,662		$	11,230

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Investments (Tables)

3 Months Ended

Mar. 31, 2017

Investments Schedule [Abstract]

Company's Investments and Securities Sold, Not Yet Purchased

The Company’s investments and securities sold, not yet purchased, consist of the following at March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
Interest-bearing deposits	$	483	$	456
Equities		42,962		41,017
Funds:
Alternative investments (a)		31,046		32,441
Debt (a)		61,486		74,597
Equity (a)		135,926		188,268
Private equity		109,949		122,421
		338,407		417,727
Equity method		222		222
Total investments		382,074		459,422
Less:
Interest-bearing deposits		483		456
Equity method		222		222
Investments, at fair value	$	381,369	$	458,744
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	4,293	$	4,482

(a) Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $11,085, $24,004 and $71,552, respectively, at March 31, 2017 and $13,080, $37,869 and $128,219, respectively, at December 31, 2016, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12).

Schedule of Trading Securities Net Unrealized Investment Gains and Losses

During the three month periods ended March 31, 2017 and 2016, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to “trading” securities still held as of the reporting date as follows:

	Three Months Ended
	March 31,
	2017		2016
Net unrealized investment gains	$	13,180	$	5,315

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

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

The following tables present, as of March 31, 2017 and December 31, 2016, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient:

	March 31, 2017
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	41,425	$	-	$	1,537	$	-	$	42,962
Funds:
Alternative investments		23,999		-		-		7,047		31,046
Debt		61,480		-		-		6		61,486
Equity		135,884		-		-		42		135,926
Private equity		-		28,196		-		81,753		109,949
Derivatives		-		4,057		-		-		4,057
Total	$	262,788	$	32,253	$	1,537	$	88,848	$	385,426
Liabilities:
Securities sold, not yet purchased	$	4,293	$	-	$	-	$	-	$	4,293
Contingent consideration liability		-		-		25,104		-		25,104
Derivatives		-		179,023		-		-		179,023
Total	$	4,293	$	179,023	$	25,104	$	-	$	208,420

	December 31, 2016
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	39,509	$	-	$	1,508	$	-	$	41,017
Funds:
Alternative investments		25,316		-		-		7,125		32,441
Debt		74,591		-		-		6		74,597
Equity		188,229		-		-		39		188,268
Private equity		-		-		-		122,421		122,421
Derivatives		-		1,993		-		-		1,993
Total	$	327,645	$	1,993	$	1,508	$	129,591	$	460,737
Liabilities:
Securities sold, not yet purchased	$	4,482	$	-	$	-	$	-	$	4,482
Contingent consideration liability		-				22,608				22,608
Derivatives		-		182,223		-		-		182,223
Total	$	4,482	$	182,223	$	22,608	$	-	$	209,313

Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended March 31, 2017
	Beginning Balance		NetUnrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,508	$	2	$	-	$	(8	)	$	35	$	1,537
Total Level 3 Assets	$	1,508	$	2	$	-	$	(8	)	$	35	$	1,537
Liabilities:
Contingent consideration liability	$	22,608	$	2,745	$	-	$	(249	)	$	-	$	25,104
Total Level 3 Liabilities	$	22,608	$	2,745	$	-	$	(249	)	$	-	$	25,104

	Three Months Ended March 31, 2016
	Beginning Balance		NetUnrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,276	$	3	$	-	$	-	$	22	$	1,301
Total Level 3 Assets	$	1,276	$	3	$	-	$	-	$	22	$	1,301

(a) Earnings recorded in “other revenue” for investments in equities for the three month periods ended March 31, 2017 and 2016 include net unrealized gains of $0 and $3, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month period ended March 31, 2017 includes unrealized losses of $2,745.

Fair Value of Certain Investments Based on NAV

The following tables present, at March 31, 2017 and December 31, 2016, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

March 31, 2017

Estimated Liquidation Period of Investments Not Redeemable

Investments Redeemable

Fair Value

Unfunded Commitments

% of Fair Value Not Redeemable

% Next 5 Years

% 5-10 Years

% Thereafter

Redemption Frequency

Redemption Notice Period

Alternativeinvestment funds:

Hedge funds

$

5,974

$

-

NA

NA

NA

NA

(a)

<30-60 days

Funds of funds

505

-

NA

NA

NA

NA

(b)

<30-90 days

Other

568

-

NA

NA

NA

NA

(c)

<30-60 days

Debt funds

6

-

NA

NA

NA

NA

(d)

30 days

Equity funds

42

-

NA

NA

NA

NA

(e)

<30-90 days

Private equity funds:

Equity growth

81,753

9,183

(f)

100

%

14

%

40

%

46

%

NA

NA

Total

$

88,848

$

9,183

(a) weekly (48%), monthly (2%) and quarterly (50%)

(b) monthly (98%) and quarterly (2%)

(c) daily (6%) and monthly (94%)

(d) daily (100%)

(e) daily (18%), monthly (51%) and quarterly (31%)

(f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,904 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

December 31, 2016

Estimated Liquidation Period of Investments Not Redeemable

Investments Redeemable

Fair Value

Unfunded Commitments

% of Fair Value Not Redeemable

% Next 5 Years

% 5-10 Years

% Thereafter

Redemption Frequency

Redemption Notice Period

Alternativeinvestment funds:

Hedge funds

$

6,190

$

-

NA

NA

NA

NA

(a)

<30-60 days

Funds of funds

492

-

NA

NA

NA

NA

(b)

<30-90 days

Other

443

-

NA

NA

NA

NA

(c)

<30-60 days

Debt funds

6

-

NA

NA

NA

NA

(d)

30 days

Equity funds

39

-

NA

NA

NA

NA

(e)

<30-90 days

Private equity funds:

Equity growth

90,824

9,183

(f)

100

%

12

%

33

%

55

%

NA

NA

Mezzanine debt

31,597

-

100

%

-

-

100

%

NA

NA

Total

$

129,591

$

9,183

(a) weekly (73%), monthly (2%) and quarterly (25%)

(b) monthly (98%) and quarterly (2%)

(c) daily (7%) and monthly (93%)

(d) daily (100%)

(e) daily (19%), monthly (50%) and quarterly (31%)

(f) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,886 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

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Derivatives (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition

The table below presents the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
Derivative Assets:
Forward foreign currency exchange rate contracts	$	3,937	$	1,993
Total return swaps and other (a)		120		-
	$	4,057	$	1,993
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	736	$	2,792
Total return swaps and other (a)		3,547		9,043
LFI and other similar deferred compensation arrangements		174,740		170,388
	$	179,023	$	182,223

(a) For total return swaps, amounts represent the netting of gross derivative assets and liabilities of $197 and $3,624 as of March 31, 2017, respectively, and $357 and $9,400 as of December 31, 2016, 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 $12,376 and $16,996 as of March 31, 2017 and December 31, 2016, respectively.

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

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2017 and 2016, were as follows:

	Three Months Ended
	March 31,
	2017			2016
Forward foreign currency exchange rate contracts	$	1,472		$	(7,300	)
LFI and other similar deferred compensation arrangements		(7,353	)		2,514
Total return swaps and other		(5,385	)		(699	)
Total	$	(11,266	)	$	(5,485	)

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Property (Tables)

3 Months Ended

Mar. 31, 2017

Property Plant And Equipment [Abstract]

Components of Property

At March 31, 2017 and December 31, 2016, property consisted of the following:

	Estimated Depreciable		March 31,		December 31,
	Life in Years		2017		2016
Buildings		33	$	134,711	$	132,821
Leasehold improvements	3-20			177,165		175,810
Furniture and equipment	3-10			180,120		172,353
Construction in progress				10,427		14,038
Total				502,423		495,022
Less - Accumulated depreciation and amortization				296,280		286,001
Property			$	206,143	$	209,021

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Components of Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets at March 31, 2017 and December 31, 2016 are presented below:

	March 31,		December 31,
	2017		2016
Goodwill	$	379,808	$	373,117
Other intangible assets (net of accumulated amortization)		8,100		8,907
	$	387,908	$	382,024

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the three month periods ended March 31, 2017 and 2016 are as follows:

	Three Months Ended
	March 31,
	2017		2016
Balance, January 1	$	373,117	$	320,761
Foreign currency translation adjustments		6,691		6,289
Balance, March 31	$	379,808	$	327,050

Gross Cost and Accumulated Amortization of Other Intangible Assets

The gross cost and accumulated amortization of other intangible assets as of March 31, 2017 and December 31, 2016, by major intangible asset category, are as follows:

	March 31, 2017						December 31, 2016
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	35,279	$	27,744	$	7,535	$	35,259	$	26,984	$	8,275
Management fees, customer relationships    and non-compete agreements		33,730		33,165		565		33,728		33,096		632
	$	69,009	$	60,909	$	8,100	$	68,987	$	60,080	$	8,907

Estimated Future Amortization Expense

Estimated future amortization expense is as follows:

Year Ending December 31,	Amortization Expense (a)
2017 (April 1 through December 31)	$	6,562
2018		1,412
2019		74
2020		52
Total amortization expense	$	8,100

(a) Approximately 26% of intangible asset amortization is attributable to a noncontrolling interest.

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Senior Debt (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Senior Debt

Senior debt is comprised of the following as of March 31, 2017 and December 31, 2016:

							Outstanding as of
	Initial			Annual			March 31, 2017						December 31, 2016
	Principal Amount		Maturity Date	Interest Rate(a)			Principal		Unamortized Debt Costs		Carrying Value		Principal		Unamortized Debt Costs		Carrying Value
Lazard Group 2020    Senior Notes		500,000	11/14/20		4.25	%	$	500,000	$	3,339	$	496,661	$	500,000	$	3,569	$	496,431
Lazard Group 2025    Senior Notes		400,000	2/13/25		3.75	%		400,000		3,714		396,286		400,000		3,833		396,167
Lazard Group 2027    Senior Notes		300,000	3/1/27		3.625	%		300,000		3,904		296,096		300,000		3,998		296,002
Total							$	1,200,000	$	10,957	$	1,189,043	$	1,200,000	$	11,400	$	1,188,600

(a) The effective interest rates of Lazard Group’s 4.25% senior notes due November 14, 2020 (the “2020 Notes”), Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”) and Lazard Group’s 3.625% senior notes due March 1, 2027  (the “2027 Notes”) are 4.43%, 3.87% and 3.76%, respectively.

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Schedule of Share Repurchase Authorized by Board of Directors

Share Repurchase Program—During the three month period ended March 31, 2017 and since 2014, the Board of Directors of Lazard authorized the repurchase of Class A common stock as set forth in the table below:

Date	Repurchase Authorization		Expiration
April 2014	$	200,000	December31, 2015
February 2015	$	150,000	December31, 2016
January 2016	$	200,000	December31, 2017
April 2016	$	113,182	December31, 2017
November 2016	$	236,000	December31, 2018

Schedule Of Share Repurchase Program

The Company expects that the share repurchase program will primarily be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2008 Incentive Compensation Plan (the “2008 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from quarter to quarter due to a variety of factors. Purchases with respect to such program are set forth in the table below:

Three Months Ended March 31:	Number of Shares Purchased		Average Price Per Share
2016		2,424,571	$	34.29
2017		2,464,967	$	43.02

Accumulated Other Comprehensive Income (Loss), Net of Tax

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)—The tables below reflect the balances of each component of AOCI at March 31, 2017 and 2016 and activity during the three month periods then ended:

	Currency Translation Adjustments			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2017	$	(155,204	)	$	(159,020	)	$	(314,224	)	$	(2	)	$	(314,222	)
Activity January 1 to March 31, 2017:
Other comprehensive income (loss) before    reclassifications		16,932			(495	)		16,437			-			16,437
Adjustments for items reclassified to earnings,    net of tax					1,086			1,086			-			1,086
Net other comprehensive income		16,932			591			17,523			-			17,523
Balance, March 31, 2017	$	(138,272	)	$	(158,429	)	$	(296,701	)	$	(2	)	$	(296,699	)

	Currency Translation Adjustments			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Ltd AOCI
Balance, January 1, 2016	$	(97,284	)	$	(137,073	)	$	(234,357	)	$	(1	)	$	(234,356	)
Activity January 1 to March 31, 2016:
Other comprehensive income (loss) before    reclassifications		11,739			(141	)		11,598			-			11,598
Adjustments for items reclassified to earnings,    net of tax		-			1,186			1,186			-			1,186
Net other comprehensive income		11,739			1,045			12,784			-			12,784
Balance, March 31, 2016	$	(85,545	)	$	(136,028	)	$	(221,573	)	$	(1	)	$	(221,572	)

Adjustments for Items Reclassified Out of AOCI

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Amortization relating to employee benefit plans (a)	$	1,362	$	1,579
Less - related income taxes		276		393
Total reclassifications, net of tax	$	1,086	$	1,186

(a) Included in the computation of net periodic benefit cost (see Note 13). Such amounts are included in “compensation and benefits” expense on the condensed consolidated statements of operations.

Net Income Attributable to Noncontrolling Interests

The tables below summarize net income attributable to noncontrolling interests for the three month periods ended March 31, 2017 and 2016 and noncontrolling interests as of March 31, 2017 and December 31, 2016 in the Company’s condensed consolidated financial statements:

	Net Income Attributable to Noncontrolling Interests
	Three Months Ended
	March 31,
	2017		2016
Edgewater	$	2,877	$	3,900

	Noncontrolling Interests as of
	March 31,		December 31,
	2017		2016
Edgewater	$	59,533	$	57,238
Other		577		588
Total	$	60,110	$	57,826

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Incentive Plans (Tables)

3 Months Ended

Mar. 31, 2017

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 for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Share-based incentive awards:
RSUs	$	55,941	$	54,408
PRSUs		11,782		16,689
Restricted Stock		9,649		23,476
DSUs		155		65
Total	$	77,527	$	94,638

Schedule of Issuance of RSUs and Charges to Retained Earnings

During the three month periods ended March 31, 2017 and 2016, 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:

	Three Months Ended
	March 31,
	2017		2016
Number of RSUs issued		613,795		700,651
Charges to retained earnings, net of estimated forfeitures	$	25,977	$	23,793

Summary of LFI and Other Similar Deferred Compensation Arrangements

The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the three month periods ended March 31, 2017 and 2016:

	Prepaid Compensation Asset			Compensation Liability
Balance, January 1, 2017	$	49,650		$	170,388
Granted		77,580			77,580
Settled		-			(81,559	)
Forfeited		(93	)		(133	)
Amortization		(12,491	)		-
Change in fair value related to:
Increase in fair value of underlying investments		-			7,353
Adjustment for estimated forfeitures		-			532
Other		(12	)		579
Balance, March 31, 2017	$	114,634		$	174,740

	Prepaid Compensation Asset			Compensation Liability
Balance, January 1, 2016	$	75,703		$	193,574
Granted		51,871			51,871
Settled		-			(64,488	)
Forfeited		(340	)		(681	)
Amortization		(19,436	)		-
Change in fair value related to:
Decrease in fair value of underlying investments		-			(2,514	)
Adjustment for estimated forfeitures	-				1,804
Other		132			913
Balance, March 31, 2016	$	107,930		$	180,479

The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month periods ended March 31, 2017 and 2016:

	Three Months Ended
	March 31,
	2017		2016
Amortization, net of forfeitures	$	12,983	$	20,899
Change in the fair value of underlying investments		7,353		(2,514	)
Total	$	20,336	$	18,385

Restricted Stock Units and Deferred Stock Units [Member]

Schedule of Activity Relating to Share-based Awards

The following is a summary of activity relating to RSUs and DSUs during the three month periods ended March 31, 2017 and 2016:

	RSUs					DSUs
	Units			Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2017		11,698,138		$	40.65		276,725	$	36.05
Granted (including 613,795 RSUs relating to dividend    participation)		4,926,935		$	43.05		5,106	$	42.91
Forfeited		(19,077	)	$	39.88				-
Vested		(3,621,454	)	$	45.53				-
Balance, March 31, 2017		12,984,542		$	40.20		281,831	$	36.18
Balance, January 1, 2016		9,599,658		$	44.06		312,670	$	35.98
Granted (including 700,651 RSUs relating to dividend    participation)		6,140,020		$	34.54		2,110	$	31.47
Forfeited		(55,826	)	$	41.58		-		-
Vested		(4,100,192	)	$	39.12		-		-
Balance, March 31, 2016		11,583,660		$	40.78		314,780	$	35.95

Restricted Stock Awards Class A [Member]

Schedule of Activity Relating to Share-based Awards

The following is a summary of activity related to shares of restricted Class A common stock associated with compensation arrangements during the three month periods ended March 31, 2017 and 2016:

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,655,073		$	40.95
Granted		841,355		$	42.58
Forfeited		(11,087	)	$	41.38
Vested		(263,457	)	$	47.93
Balance, March 31, 2017		2,221,884		$	40.73
Balance, January 1, 2016		713,738		$	47.12
Granted		1,795,258		$	36.78
Forfeited		(25,662	)	$	39.89
Vested		(627,110	)	$	36.61
Balance, March 31, 2016		1,856,224		$	40.77

PRSUs [Member]

Schedule of Activity Relating to Share-based Awards

The following is a summary of activity relating to PRSUs during the three month periods ended March 31, 2017 and 2016:

	PRSUs			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,590,756		$	40.76
Granted (a)		458,113		$	43.76
Vested		(752,770	)	$	42.26
Balance, March 31, 2017		1,296,099		$	40.95
Balance, January 1, 2016		1,019,038		$	44.49
Granted (a)		627,956		$	32.91
Vested		(417,018	)	$	38.43
Balance, March 31, 2016		1,229,976		$	40.63

(a) Represents PRSU awards granted during the relevant year at the target payout level.

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2017

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost (Credit)

The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s post-retirement plans for the three month periods ended March 31, 2017 and 2016:

	Pension Plans						Medical Plan
	Three Months Ended March 31,
	2017			2016			2017		2016
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	340		$	307		$	-	$	4
Interest cost		3,981			5,213			-		45
Expected return on plan assets		(6,105	)		(7,166	)		-		-
Amortization of:
Prior service cost		30			590			-		-
Net actuarial loss (gain)		1,332			989			-		-
Net periodic benefit cost (credit)	$	(422	)	$	(67	)	$	-	$	49

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

3 Months Ended

Mar. 31, 2017

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 periods ended March 31, 2017 and 2016 are presented below:

	Three Months Ended
	March 31,
	2017		2016
Net income attributable to Lazard Ltd - basic	$	107,553	$	66,823
Net income attributable to Lazard Ltd - diluted	$	107,553	$	66,823
Weighted average number of shares of Class A common    stock outstanding		122,531,221		125,968,430
Add - adjustment for shares of Class A common stock    issuable on a non-contingent basis		283,942		72,011
Weighted average number of shares of Class A common    stock outstanding - basic		122,815,163		126,040,441
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A    common stock issuable from share-based    incentive compensation		9,874,212		6,850,843
Weighted average number of shares of Class A common stock    outstanding - diluted		132,689,375		132,891,284
Net income attributable to Lazard Ltd per share of Class    A common stock:
Basic	$	0.88	$	0.53
Diluted	$	0.81	$	0.50

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

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

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

		Three Months Ended
		March 31,
		2017			2016
Financial Advisory	Net Revenue	$	335,812		$	266,014
	Operating Expenses		262,751			227,078
	Operating Income	$	73,061		$	38,936
Asset Management	Net Revenue	$	283,363		$	245,759
	Operating Expenses		188,751			175,161
	Operating Income	$	94,612		$	70,598
Corporate	Net Revenue	$	4,289		$	(13,555	)
	Operating Expenses		21,765			(2,398	)
	Operating Loss	$	(17,476	)	$	(11,157	)
Total	Net Revenue	$	623,464		$	498,218
	Operating Expenses		473,267			399,841
	Operating Income	$	150,197		$	98,377

	As Of
	March 31, 2017		December 31, 2016
Total Assets
Financial Advisory	$	828,374	$	907,035
Asset Management		572,915		645,653
Corporate		2,983,969		3,003,820
Total	$	4,385,258	$	4,556,508

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Organization and Basis of Presentation - Additional Information (Detail) - Segment	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Organization And Basis Of Presentation [Line Items]
Governing operating agreement, date	Oct. 26, 2015
Number of business segments	2
Lazard Group LLC [Member]
Organization And Basis Of Presentation [Line Items]
Percentage of common membership interests held	100.00%	100.00%

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Recent Accounting Developments - Additional Information (Detail) - Adjustments for New Accounting Principle [Member] $ in Thousands	Jan. 01, 2017 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax assets recorded for previously unrecognized excess tax benefits on share-based payment awards	$ 81,544
Deferred tax assets, valuation allowance	$ 12,090

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Receivables - Schedule of Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Allowance For Doubtful Accounts Receivable Rollforward
Allowance for doubtful accounts receivables, Beginning balance	$ 16,386	$ 12,882
Bad debt expense, net of recoveries	13,651	514
Charge-offs, foreign currency translation and other adjustments	(375)	(2,166)
Allowance for doubtful accounts receivables, Ending balance	$ 29,662	$ 11,230

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Receivables - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables past due or deemed uncollectible	$ 42,489,000	$ 22,212,000
Interest-bearing financing fee receivables	63,119,000	76,133,000
Allowance for doubtful accounts receivables	29,662,000	16,386,000	$ 11,230,000	$ 12,882,000
Aggregate carrying amount of non-interest bearing receivables	464,495,000	562,149,000
Financing Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts receivables	$ 0	$ 0

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Investments - Company's Investments and Securities Sold, Not Yet Purchased (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Total investments	$ 382,074	$ 459,422
Equity method	222	222
Investments, at fair value	381,369	458,744
Securities sold, not yet purchased, at fair value (included in "other liabilities")	4,293	4,482
Interest-bearing Deposits [Member]
Schedule of Investments [Line Items]
Total investments	483	456
Equities [Member]
Schedule of Investments [Line Items]
Total investments	42,962	41,017
Alternative Investment Funds [Member]
Schedule of Investments [Line Items]
Total investments	31,046	32,441
Investments, at fair value	31,046	32,441
Debt Funds [Member]
Schedule of Investments [Line Items]
Total investments	61,486	74,597
Investments, at fair value	61,486	74,597
Equity Funds [Member]
Schedule of Investments [Line Items]
Total investments	135,926	188,268
Investments, at fair value	135,926	188,268
Private Equity Funds [Member]
Schedule of Investments [Line Items]
Total investments	109,949	122,421
Investments, at fair value	109,949	122,421
Funds Total [Member]
Schedule of Investments [Line Items]
Total investments	$ 338,407	$ 417,727

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Investments - Company's Investments and Securities Sold, Not Yet Purchased (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Investments [Line Items]
Investments	$ 382,074	$ 459,422
Alternative Investment Funds [Member]
Schedule of Investments [Line Items]
Investments	31,046	32,441
Alternative Investment Funds [Member] | Lazard Fund Interests [Member]
Schedule of Investments [Line Items]
Investments	11,085	13,080
Debt Funds [Member]
Schedule of Investments [Line Items]
Investments	61,486	74,597
Debt Funds [Member] | Lazard Fund Interests [Member]
Schedule of Investments [Line Items]
Investments	24,004	37,869
Equity Funds [Member]
Schedule of Investments [Line Items]
Investments	135,926	188,268
Equity Funds [Member] | Lazard Fund Interests [Member]
Schedule of Investments [Line Items]
Investments	$ 71,552	$ 128,219

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Investments - Additional Information (Detail) - Interest-bearing Deposits [Member]	3 Months Ended
	Mar. 31, 2017
Minimum [Member]
Schedule of Investments [Line Items]
Interest-bearing deposits maturity period	3 months
Maximum [Member]
Schedule of Investments [Line Items]
Interest-bearing deposits maturity period	1 year

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Investments - Schedule of Trading Securities Net Unrealized Investment Gains and Losses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net Realized Or Unrealized Gain Loss On Trading Securities [Abstract]
Net unrealized investment gains	$ 13,180	$ 5,315

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Fair Value Measurements - Schedule of Classification of Investments and Certain Other Assets and Liabilities Measured at Fair Value on Recurring Basis and Investments Measured at NAV (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 381,369	$ 458,744
Total Derivative Assets	4,057	1,993
Total investments measured at fair value	385,426	460,737
Securities sold, not yet purchased	4,293	4,482
Contingent consideration liability	25,104	22,608
Total Derivative Liabilities	179,023	182,223
Total of Liabilities Measured at Fair Value	208,420	209,313
Fair Value, Measurements, Nonrecurring [Member] | NAV [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments measured at fair value	88,848	129,591
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments measured at fair value	262,788	327,645
Securities sold, not yet purchased	4,293	4,482
Total of Liabilities Measured at Fair Value	4,293	4,482
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Derivative Assets	4,057	1,993
Total investments measured at fair value	32,253	1,993
Total Derivative Liabilities	179,023	182,223
Total of Liabilities Measured at Fair Value	179,023	182,223
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total investments measured at fair value	1,537	1,508
Contingent consideration liability	25,104	22,608
Total of Liabilities Measured at Fair Value	25,104	22,608
Equities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	42,962	41,017
Equities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	41,425	39,509
Equities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,537	1,508
Alternative Investment Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	31,046	32,441
Alternative Investment Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,047	7,125
Alternative Investment Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	23,999	25,316
Debt Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	61,486	74,597
Debt Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	6	6
Debt Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	61,480	74,591
Equity Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	135,926	188,268
Equity Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	42	39
Equity Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	135,884	188,229
Private Equity Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	109,949	122,421
Private Equity Funds [Member] | Fair Value, Measurements, Nonrecurring [Member] | NAV [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	81,753	$ 122,421
Private Equity Funds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 28,196

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Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Assets:
Beginning Balance	$ 1,508	$ 1,276
Net Unrealized/Realized Gains/Losses Included In Earnings	2	3
Purchases/Acquisitions	0	0
Sales/Dispositions	(8)	0
Foreign Currency Translation Adjustments	35	22
Ending Balance	1,537	1,301
Liabilities:
Beginning Balance	22,608
Net Unrealized/Realized Gains/Losses Included In Earnings	2,745
Purchases/Acquisitions	0
Sales/Dispositions	(249)
Foreign Currency Translation Adjustments	0
Ending Balance	25,104
Contingent Consideration Liability [Member]
Liabilities:
Beginning Balance	22,608
Net Unrealized/Realized Gains/Losses Included In Earnings	2,745
Purchases/Acquisitions	0
Sales/Dispositions	(249)
Foreign Currency Translation Adjustments	0
Ending Balance	25,104
Equities [Member]
Assets:
Beginning Balance	1,508	1,276
Net Unrealized/Realized Gains/Losses Included In Earnings	2	3
Purchases/Acquisitions	0	0
Sales/Dispositions	(8)	0
Foreign Currency Translation Adjustments	35	22
Ending Balance	$ 1,537	$ 1,301

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Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equities [Member]
Fair Value of Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Net unrealized gains	$ 0	$ 3
Contingent Consideration Liability [Member]
Fair Value of Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items]
Net unrealized losses	$ 2,745

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Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Fair Value Option Quantitative Disclosures [Line Items]
Transfers between Level 1, 2 and 3 in fair value measurement hierarchy	$ 0	$ 0
Unfunded Commitments	9,183,000		$ 9,183,000
EGCP III [Member]
Fair Value Option Quantitative Disclosures [Line Items]
Unfunded Commitments	$ 8,613,000
End of the investment period	Oct. 12, 2016
Remaining obligation date	Oct. 12, 2023

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Fair Value Measurements - Fair Value of Certain Investments Based on NAV (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 88,848	$ 129,591
Unfunded Commitments	9,183	9,183
Hedge Funds [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 5,974	$ 6,190
Hedge Funds [Member] | Weekly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	48.00%	73.00%
Hedge Funds [Member] | Monthly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	2.00%	2.00%
Hedge Funds [Member] | Quarterly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	50.00%	25.00%
Hedge Funds [Member] | Minimum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	30 days	30 days
Hedge Funds [Member] | Maximum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	60 days	60 days
Funds of Funds [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 505	$ 492
Funds of Funds [Member] | Monthly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	98.00%	98.00%
Funds of Funds [Member] | Quarterly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	2.00%	2.00%
Funds of Funds [Member] | Minimum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	30 days	30 days
Funds of Funds [Member] | Maximum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	90 days	90 days
Other [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 568	$ 443
Other [Member] | Monthly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	94.00%	93.00%
Other [Member] | Daily [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	6.00%	7.00%
Other [Member] | Minimum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	30 days	30 days
Other [Member] | Maximum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	60 days	60 days
Debt Funds [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 6	$ 6
Investments Redeemable, Redemption Notice Period	30 days	30 days
Debt Funds [Member] | Daily [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	100.00%	100.00%
Equity Funds [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 42	$ 39
Equity Funds [Member] | Monthly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	51.00%	50.00%
Equity Funds [Member] | Quarterly [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	31.00%	31.00%
Equity Funds [Member] | Daily [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Percent	18.00%	19.00%
Equity Funds [Member] | Minimum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	30 days	30 days
Equity Funds [Member] | Maximum [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Investments Redeemable, Redemption Notice Period	90 days	90 days
Private Equity Funds [Member] | Equity Growth [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 81,753	$ 90,824
Unfunded Commitments	$ 9,183	$ 9,183
% of Fair Value Not Redeemable	100.00%	100.00%
Estimated Liquidation Period of Investments Not Redeemable, % Next 5 Years	14.00%	12.00%
Estimated Liquidation Period of Investments Not Redeemable, % 5-10 Years	40.00%	33.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter	46.00%	55.00%
Private Equity Funds [Member] | Mezzanine Debt [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value		$ 31,597
% of Fair Value Not Redeemable		100.00%
Estimated Liquidation Period of Investments Not Redeemable, % Thereafter		100.00%

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Fair Value Measurements - Fair Value of Certain Investments Based on NAV (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments	$ 9,183	$ 9,183
Private Equity Funds [Member] | Consolidated But Not Owned [Member]
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments	$ 6,904	$ 6,886

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Derivatives - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 4,057	$ 1,993
Derivative Liabilities	179,023	182,223
Forward Foreign Currency Exchange Rate Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	3,937	1,993
Derivative Liabilities	736	2,792
Total Return Swaps and Other [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	120
Derivative Liabilities	3,547	9,043
LFI and Other Similar Deferred Compensation Arrangements [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 174,740	$ 170,388

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Derivatives - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Gross derivative liability	$ 174,740	$ 170,388	$ 180,479	$ 193,574
Total Return Swaps [Member]
Derivatives, Fair Value [Line Items]
Gross derivative assets	197	357
Gross derivative liability	3,624	9,400
Cash collateral pledged for total return swaps	$ 12,376	$ 16,996

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Derivatives - Net Gains (Losses) with Respect to Derivative Instruments Not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ (11,266)	$ (5,485)
Forward Foreign Currency Exchange Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	1,472	(7,300)
LFI and Other Similar Deferred Compensation Arrangements [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	(7,353)	2,514
Total Return Swaps and Other [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ (5,385)	$ (699)

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Property - Components of Property (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 502,423	$ 495,022
Less - Accumulated depreciation and amortization	296,280	286,001
Property	206,143	209,021
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 134,711	132,821
Property, plant and equipment, useful life	33 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 177,165	175,810
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	20 years
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 180,120	172,353
Furniture and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Furniture and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 10,427	$ 14,038

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Goodwill and Other Intangible Assets - Components of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 379,808	$ 373,117	$ 327,050	$ 320,761
Other intangible assets (net of accumulated amortization)	8,100	8,907
Goodwill and other intangible assets, Total	$ 387,908	$ 382,024

XML

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 379,808	$ 327,050	$ 373,117	$ 320,761
Amortization of intangible assets	829	$ 644
Financial Advisory Segment [Member]
Goodwill And Intangible Assets [Line Items]
Goodwill	315,267		308,576
Asset Management Segment [Member]
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 64,541		$ 64,541

XML

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Beginning Balance	$ 373,117	$ 320,761
Foreign currency translation adjustments	6,691	6,289
Ending Balance	$ 379,808	$ 327,050

XML

Goodwill and Other Intangible Assets - Gross Cost and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, Gross Cost	$ 69,009	$ 68,987
Other intangible assets, accumulated amortization	60,909	60,080
Other intangible assets, Net Carrying Amount	8,100	8,907
Success/Performance Fees [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, Gross Cost	35,279	35,259
Other intangible assets, accumulated amortization	27,744	26,984
Other intangible assets, Net Carrying Amount	7,535	8,275
Management Fees, Customer Relationships and Non-Compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, Gross Cost	33,730	33,728
Other intangible assets, accumulated amortization	33,165	33,096
Other intangible assets, Net Carrying Amount	$ 565	$ 632

XML

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands	Mar. 31, 2017 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2017 (April 1 through December 31)	$ 6,562
2018	1,412
2019	74
2020	52
Total amortization expense	$ 8,100

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Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Percentage of intangible asset amortization attributable to non-controlling interests	26.00%

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Senior Debt - Senior Debt (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Senior Debt, Outstanding Principal	$ 1,200,000,000	$ 1,200,000,000
Senior Debt, Outstanding Unamortized Debt Costs	10,957,000	11,400,000
Senior Debt, Outstanding Carrying Value	1,189,043,000	1,188,600,000
Lazard Group 4.25% Senior Notes [Member]
Debt Instrument [Line Items]
Senior Debt, Initial Principal Amount	$ 500,000,000
Senior Debt, Maturity Date	Nov. 14, 2020
Senior Debt, Annual Interest Rate	4.25%
Senior Debt, Outstanding Principal	$ 500,000,000	500,000,000
Senior Debt, Outstanding Unamortized Debt Costs	3,339,000	3,569,000
Senior Debt, Outstanding Carrying Value	496,661,000	496,431,000
Lazard Group 3.75% Senior Notes [Member]
Debt Instrument [Line Items]
Senior Debt, Initial Principal Amount	$ 400,000,000
Senior Debt, Maturity Date	Feb. 13, 2025
Senior Debt, Annual Interest Rate	3.75%
Senior Debt, Outstanding Principal	$ 400,000,000	400,000,000
Senior Debt, Outstanding Unamortized Debt Costs	3,714,000	3,833,000
Senior Debt, Outstanding Carrying Value	396,286,000	396,167,000
Lazard Group 3.625% Senior Notes [Member]
Debt Instrument [Line Items]
Senior Debt, Initial Principal Amount	$ 300,000,000
Senior Debt, Maturity Date	Mar. 01, 2027
Senior Debt, Annual Interest Rate	3.625%
Senior Debt, Outstanding Principal	$ 300,000,000	300,000,000
Senior Debt, Outstanding Unamortized Debt Costs	3,904,000	3,998,000
Senior Debt, Outstanding Carrying Value	$ 296,096,000	$ 296,002,000

XML

Senior Debt - Senior Debt (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2017
Lazard Group 4.25% Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes interest rate	4.25%
Original Maturity Date	Nov. 14, 2020
Effective interest rates of senior notes	4.43%
Lazard Group 3.75% Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes interest rate	3.75%
Original Maturity Date	Feb. 13, 2025
Effective interest rates of senior notes	3.87%
Lazard Group 3.625% Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes interest rate	3.625%
Original Maturity Date	Mar. 01, 2027
Effective interest rates of senior notes	3.76%

XML

Senior Debt - Additional Information (Detail) - USD ($)	Sep. 25, 2015	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Senior debt		$ 1,189,043,000	$ 1,188,600,000
Unused Lines of Credit [Member]
Debt Instrument [Line Items]
Unused lines of credit		172,000,000
Senior Debt [Member]
Debt Instrument [Line Items]
Senior debt		1,189,043,000	1,188,600,000
Fair value of senior debt		1,219,000,000	1,204,000,000
LFB [Member] | Unused Lines of Credit [Member]
Debt Instrument [Line Items]
Unused lines of credit		21,000,000
Amended and Restated Credit Agreement [Member]
Debt Instrument [Line Items]
Senior revolving credit facility	$ 150,000,000
Duration of senior revolving credit facility, in years	5 years
Expiration of credit facility	2020-09
Outstanding credit facility		$ 0	$ 0

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Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2016	Mar. 31, 2017
Other Commitments [Line Items]
Guarantees indemnifications		$ 3,174,000
Collateral/counter-guarantees		3,092,000
LFB [Member]
Other Commitments [Line Items]
Other commitments		0
LFNY [Member]
Other Commitments [Line Items]
Other commitments		$ 0
Business Acquisitions [Member]
Other Commitments [Line Items]
Number of contingent additional shares earned		0
Business Acquisitions [Member] | Class A Common Stock [Member]
Other Commitments [Line Items]
Common stock issued and issuable	60,817
Business Acquisitions [Member] | Class A Common Stock [Member] | Non-Contingent [Member]
Other Commitments [Line Items]
Common stock issued and issuable	204,651
Business Acquisitions [Member] | Class A Common Stock [Member] | Maximum [Member]
Other Commitments [Line Items]
Contingent shares issuable upon satisfaction of performance thresholds	810,742

XML

Stockholders' Equity - Schedule of Share Repurchase Authorized by Board of Directors (Detail)	3 Months Ended
	Mar. 31, 2017 USD ($)
April, 2014 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 200,000,000
Expiration	Dec. 31, 2015
February, 2015 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 150,000,000
Expiration	Dec. 31, 2016
January, 2016 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 200,000,000
Expiration	Dec. 31, 2017
April, 2016 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 113,182,000
Expiration	Dec. 31, 2017
November, 2016 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 236,000,000
Expiration	Dec. 31, 2018

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Stockholders' Equity - Schedule of Share Repurchase Program (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Repurchase Program [Abstract]
Number of Shares Purchased	2,464,967	2,424,571
Average Price Per Share	$ 43.02	$ 34.29

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Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Apr. 26, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Schedule Of Stockholders Equity [Line Items]
Shares repurchased, value		$ 106,048	$ 83,140
Share repurchase remaining authorization		$ 249,078
Preferred stock, shares authorized		15,000,000		15,000,000
Preferred stock, par value		$ 0.01		$ 0.01
Dividend declared per share of common stock		$ 1.58	$ 1.55
Subsequent Event [Member]
Schedule Of Stockholders Equity [Line Items]
Dividend declared per share of common stock	$ 0.41
Dividend payable date	May 19, 2017
Dividend date of record	May 08, 2017
Dividend declare date	Apr. 26, 2017
January and April, 2016 [Member]
Schedule Of Stockholders Equity [Line Items]
Share repurchase remaining authorization		$ 13,078
Share repurchase authorization expiration date		Dec. 31, 2017
November, 2016 [Member]
Schedule Of Stockholders Equity [Line Items]
Share repurchase remaining authorization		$ 236,000
Share repurchase authorization expiration date		Dec. 31, 2018
Series A Preferred Stock [Member]
Schedule Of Stockholders Equity [Line Items]
Preferred stock, shares outstanding		0		0
Series B Preferred Stock [Member]
Schedule Of Stockholders Equity [Line Items]
Preferred stock, shares outstanding		0		0
Executive Officers [Member] | Class A Common Stock [Member]
Schedule Of Stockholders Equity [Line Items]
Shares repurchased, value		$ 14,700	$ 3,100

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Stockholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 1,293,813	$ 1,367,306
Other comprehensive income (loss) before reclassifications	16,437	11,598
Adjustments for items reclassified to earnings, net of tax	1,086	1,186
OTHER COMPREHENSIVE INCOME, NET OF TAX	17,523	12,784
Balance	1,213,187	1,222,748
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(155,204)	(97,284)
Other comprehensive income (loss) before reclassifications	16,932	11,739
OTHER COMPREHENSIVE INCOME, NET OF TAX	16,932	11,739
Balance	(138,272)	(85,545)
Employee Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(159,020)	(137,073)
Other comprehensive income (loss) before reclassifications	(495)	(141)
Adjustments for items reclassified to earnings, net of tax	1,086	1,186
OTHER COMPREHENSIVE INCOME, NET OF TAX	591	1,045
Balance	(158,429)	(136,028)
Total AOCI [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(314,224)	(234,357)
Balance	(296,701)	(221,573)
AOCI Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(2)	(1)
Balance	(2)	(1)
Total Lazard LTD AOCI [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(314,222)	(234,356)
Other comprehensive income (loss) before reclassifications	16,437	11,598
Adjustments for items reclassified to earnings, net of tax	1,086	1,186
OTHER COMPREHENSIVE INCOME, NET OF TAX	17,523	12,784
Balance	$ (296,699)	$ (221,572)

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Stockholders' Equity - Adjustments for Items Reclassified Out of AOCI (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications, net of tax	$ 1,086	$ 1,186
Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Amortization relating to employee benefit plans	1,362	1,579
Less - related income taxes	276	393
Total reclassifications, net of tax	$ 1,086	$ 1,186

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Stockholders' Equity - Net Income Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Change In Ownership Interest [Line Items]
Net Income Attributable to Noncontrolling Interests	$ 2,877	$ 3,900
Noncontrolling interests	60,110		$ 57,826
Edgewater [Member]
Change In Ownership Interest [Line Items]
Net Income Attributable to Noncontrolling Interests	2,877	$ 3,900
Noncontrolling interests	59,533		57,238
Other [Member]
Change In Ownership Interest [Line Items]
Noncontrolling interests	$ 577		$ 588

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Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Lazard Fund Interests [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, years	1 year
Non-Executive [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of annual compensation received by directors in the form of DSUs	55.00%
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock conversion basis	one-for-one
Grant date fair value, amortized periods	generally one-third after two years, and the remaining two-thirds after the third year
Unrecognized compensation expense	$ 260,079
Unrecognized compensation expense, years	1 year
DSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual compensation paid in DSUs	1,551
Units granted under the directors deferred unit plan	3,555	2,110
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 55,675
Unrecognized compensation expense, years	10 months 24 days
PRSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 20,853
Unrecognized compensation expense, years	8 months 12 days
Percentage of target number of shares subject to each PRSU no longer subject to forfeiture due to threshold level of performance being achieved	25.00%
Descriptions of vesting period associated with PRSUs	PRSUs will vest on a single date three years following the date of the grant
Vesting period of PRSUs granted	3 years
PSRU's target share distribution for Class A common stock, description	The target number of shares of Class A common stock subject to each PRSU is one; however, based on the achievement of the performance criteria, the number of shares of Class A common stock that may be received in connection with each PRSU generally can range from zero to two times the target number.
Class A Common Stock [Member] | RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Withholding taxes in lieu of share delivery	1,229,531	1,327,399
Delivery of common stock associated with stock awards	2,391,923	2,772,793
Class A Common Stock [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Withholding taxes in lieu of share delivery	108,239	77,795
Delivery of common stock associated with stock awards	155,218	549,315
Class A Common Stock [Member] | PRSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Withholding taxes in lieu of share delivery	85,629	64,169
Delivery of common stock associated with stock awards	667,141	352,849
Class A Common Stock [Member] | Awarded Under 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding Class A common stock	30.00%
Class A Common Stock [Member] | 2005 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized pertaining to share based compensation arrangements, 2005 Plan	25,000,000

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Incentive Plans - Summary of Impact of Share-Based Incentive Plans on Compensation and Benefits Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based incentive awards:
Share-based incentive awards	$ 77,527	$ 94,638
RSUs [Member]
Share-based incentive awards:
Share-based incentive awards	55,941	54,408
PRSUs [Member]
Share-based incentive awards:
Share-based incentive awards	11,782	16,689
Restricted Stock [Member]
Share-based incentive awards:
Share-based incentive awards	9,649	23,476
DSUs [Member]
Share-based incentive awards:
Share-based incentive awards	$ 155	$ 65

XML

Incentive Plans - Schedule of Issuance of RSUs and Charges to Retained Earnings (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of RSUs issued	613,795	700,651
Charges to retained earnings, net of estimated forfeitures	$ 25,977	$ 23,793

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Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
RSUs [Member]
Share-based compensation arrangement by share-based payment award [Line Items]
Units, Beginning Balance	11,698,138	9,599,658
Units, Granted	4,926,935	6,140,020
Units, Forfeited	(19,077)	(55,826)
Units, Vested	(3,621,454)	(4,100,192)
Units, Ending Balance	12,984,542	11,583,660
Weighted Average Grant Date Fair Value, Beginning Balance	$ 40.65	$ 44.06
Weighted Average Grant Date Fair Value, Granted	43.05	34.54
Weighted Average Grant Date Fair Value, Forfeited	39.88	41.58
Weighted Average Grant Date Fair Value, Vested	45.53	39.12
Weighted Average Grant Date Fair Value, Ending Balance	$ 40.20	$ 40.78
DSUs [Member]
Share-based compensation arrangement by share-based payment award [Line Items]
Units, Beginning Balance	276,725	312,670
Units, Granted	5,106	2,110
Units, Ending Balance	281,831	314,780
Weighted Average Grant Date Fair Value, Beginning Balance	$ 36.05	$ 35.98
Weighted Average Grant Date Fair Value, Granted	42.91	31.47
Weighted Average Grant Date Fair Value, Ending Balance	$ 36.18	$ 35.95

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Incentive Plans - Schedule of Activity Relating to RSUs and DSUs (Parenthetical) (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Dividend participation rights	613,795	700,651

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Incentive Plans - Summary of Activity Related to Shares of Restricted Class A Common Stock (Detail) - Restricted Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based compensation arrangement by share-based payment award [Line Items]
Units, Beginning Balance	1,655,073	713,738
Units, Granted	841,355	1,795,258
Units, Forfeited	(11,087)	(25,662)
Units, Vested	(263,457)	(627,110)
Units, Ending Balance	2,221,884	1,856,224
Weighted Average Grant Date Fair Value, Beginning Balance	$ 40.95	$ 47.12
Weighted Average Grant Date Fair Value, Granted	42.58	36.78
Weighted Average Grant Date Fair Value, Forfeited	41.38	39.89
Weighted Average Grant Date Fair Value, Vested	47.93	36.61
Weighted Average Grant Date Fair Value, Ending Balance	$ 40.73	$ 40.77

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Incentive Plans - Summary of Activity Relating to PRSUs (Detail) - PRSUs [Member] - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based compensation arrangement by share-based payment award [Line Items]
Units, Beginning Balance	1,590,756	1,019,038
Units, Granted	458,113	627,956
Units, Vested	(752,770)	(417,018)
Units, Ending Balance	1,296,099	1,229,976
Weighted Average Grant Date Fair Value, Beginning Balance	$ 40.76	$ 44.49
Weighted Average Grant Date Fair Value, Granted	43.76	32.91
Weighted Average Grant Date Fair Value, Vested	42.26	38.43
Weighted Average Grant Date Fair Value, Ending Balance	$ 40.95	$ 40.63

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Incentive Plans - Summary of LFI and Other Similar Deferred Compensation Arrangements (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Deferred Compensation Arrangements [Abstract]
Prepaid Compensation Asset, Beginning Balance	$ 49,650	$ 75,703
Prepaid Compensation Asset, Granted	77,580	51,871
Prepaid Compensation Asset, Forfeited	(93)	(340)
Prepaid Compensation Asset, Amortization	(12,491)	(19,436)
Prepaid Compensation Asset, Other	(12)	132
Prepaid Compensation Asset, Ending Balance	114,634	107,930
Compensation Liability, Beginning Balance	170,388	193,574
Compensation Liability, Granted	77,580	51,871
Compensation Liability, Settled	(81,559)	(64,488)
Compensation Liability, Forfeited	(133)	(681)
Compensation Liability, Increase (Decrease) in fair value of underlying investments	7,353	(2,514)
Compensation Liability, Adjustment for estimated forfeitures	532	1,804
Compensation Liability, Other	579	913
Compensation Liability, Ending Balance	$ 174,740	$ 180,479

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Incentive Plans - Summary of Impact of LFI and Other Similar Deferred Compensation Arrangements (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation [Abstract]
Amortization, net of forfeitures	$ 12,983	$ 20,899
Change in the fair value of underlying investments	7,353	(2,514)
Total	$ 20,336	$ 18,385

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Employee Benefit Plans - Components of Net Periodic Benefit Cost (Credit) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Pension Plans [Member]
Components of Net Periodic Benefit Cost (Credit):
Service cost	$ 340	$ 307
Interest cost	3,981	5,213
Expected return on plan assets	(6,105)	(7,166)
Amortization of:
Prior service cost	30	590
Net actuarial loss (gain)	1,332	989
Net periodic benefit cost (credit)	$ (422)	(67)
Medical Plan [Member]
Components of Net Periodic Benefit Cost (Credit):
Service cost		4
Interest cost		45
Amortization of:
Net periodic benefit cost (credit)		$ 49

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jan. 01, 2017
Income Tax [Line Items]
Income tax provisions (benefits)	$ 39,767	$ 27,654
Effective income tax rates	26.50%	28.10%
U.S. federal statutory income tax rate	35.00%
Adjustments for New Accounting Principle [Member]
Income Tax [Line Items]
Income tax provisions (benefits)	$ 7,356
Deferred tax assets recorded for previously unrecognized excess tax benefits on share-based payment awards			$ 81,544
Deferred tax assets, valuation allowance			$ 12,090

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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 ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income attributable to Lazard Ltd - basic	$ 107,553	$ 66,823
Net income attributable to Lazard Ltd - diluted	$ 107,553	$ 66,823
Weighted average number of shares of Class A common stock outstanding	122,531,221	125,968,430
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis	283,942	72,011
Weighted average number of shares of Class A common stock outstanding - basic	122,815,163	126,040,441
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation	9,874,212	6,850,843
Weighted average number of shares of Class A common stock outstanding - diluted	132,689,375	132,891,284
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic	$ 0.88	$ 0.53
Diluted	$ 0.81	$ 0.50

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Related Parties - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Oct. 26, 2015	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Asset management fees		$ 272,924	$ 233,731
Fees receivable		439,836		$ 564,291
Payments under tax receivable agreement		736	10,086
Sponsored Funds [Member]
Related Party Transaction [Line Items]
Asset management fees		140,577	$ 118,910
Fees receivable		52,867		49,944
LTBP Trust [Member]
Related Party Transaction [Line Items]
Amount of cash savings in income or franchise tax that would be realized as a result of increases in tax basis and certain other tax benefits related to the amended and restated tax receivable agreement	45.00%
Cash tax saving that may arise from tax benefits attributable to payments under the amended and restated tax receivable agreement	85.00%
Cumulative liability relating to obligations under Amended and Restated Tax Receivable Agreement		512,874		$ 513,610
Payments under tax receivable agreement		$ 736

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Regulatory Authorities - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
LFNY [Member]
Regulatory Requirements [Line Items]
Specified fixed percentage, minimum required capital	6.67%
Minimum net capital requirement as defined under exchange act	$ 100,000
Regulatory capital	79,663,000
Regulatory capital in excess of minimum requirement	$ 74,877,000
Aggregate indebtedness to net capital ratio	0.90
LFNY [Member] | Maximum [Member]
Regulatory Requirements [Line Items]
Aggregate indebtedness to net capital ratio	15
U.K. Subsidiaries [Member]
Regulatory Requirements [Line Items]
Regulatory capital	$ 128,206,000
Regulatory capital in excess of minimum requirement	112,123,000
CFLF [Member]
Regulatory Requirements [Line Items]
Regulatory capital	133,162,000
Regulatory capital in excess of minimum requirement	88,708,000
Combined European Regulated Group [Member]
Regulatory Requirements [Line Items]
Regulatory capital		$ 159,102,000
Regulatory capital in excess of minimum requirement		$ 84,949,000
Other U.S. and Non-U.S. Subsidiaries [Member]
Regulatory Requirements [Line Items]
Regulatory capital	120,725,000
Regulatory capital in excess of minimum requirement	$ 94,924,000

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Segment Information - Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net Revenue	$ 623,464	$ 498,218
Operating Expenses	473,267	399,841
Operating Income (Loss)	150,197	98,377
Total Assets	4,385,258		$ 4,556,508
Operating Segments [Member] | Financial Advisory Segment [Member]
Segment Reporting Information [Line Items]
Net Revenue	335,812	266,014
Operating Expenses	262,751	227,078
Operating Income (Loss)	73,061	38,936
Total Assets	828,374		907,035
Operating Segments [Member] | Asset Management Segment [Member]
Segment Reporting Information [Line Items]
Net Revenue	283,363	245,759
Operating Expenses	188,751	175,161
Operating Income (Loss)	94,612	70,598
Total Assets	572,915		645,653
Corporate [Member]
Segment Reporting Information [Line Items]
Net Revenue	4,289	(13,555)
Operating Expenses	21,765	(2,398)
Operating Income (Loss)	(17,476)	$ (11,157)
Total Assets	$ 2,983,969		$ 3,003,820