Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

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 December 31, 2017 and 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:

	December 31, 2017
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Debt	$	6	$	-	$	-	$	-	$	6
Equities		43,665		-		1,592		-		45,257
Funds:
Alternative investments		17,353		-		-		3,640		20,993
Debt		84,071		-		-		6		84,077
Equity		199,565		-		-		53		199,618
Private equity		-		-		-		76,679		76,679
Derivatives		-		3,732		-		-		3,732
Total	$	344,660	$	3,732	$	1,592	$	80,378	$	430,362
Liabilities:
Securities sold, not yet purchased	$	7,338	$	-	$	-	$	-	$	7,338
Contingent consideration liability		-		-		28,941		-		28,941
Derivatives		-		198,417		-		-		198,417
Total	$	7,338	$	198,417	$	28,941	$	-	$	234,696

	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 years ended December 31, 2017, 2016 and 2015:

	Year Ended December 31, 2017
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions/ Settlements			Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,508	$	14	$	1,661	$	(1,669	)	$	78	$	1,592
Total Level 3 Assets	$	1,508	$	14	$	1,661	$	(1,669	)	$	78	$	1,592

Liabilities:
Contingent consideration liability	$	22,608	$	6,582	$	-	$	(249	)	$	-	$	28,941
Total Level 3 Liabilities	$	22,608	$	6,582	$	-	$	(249	)	$	-	$	28,941

	Year Ended December 31, 2016
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions/ Settlements			Foreign Currency Translation Adjustments			Ending Balance
Assets:
Investments:
Equities	$	1,276	$	248	$	-	$	-		$	(16	)	$	1,508
Total Level 3 Assets	$	1,276	$	248	$	-	$	-		$	(16	)	$	1,508

Liabilities:
Contingent consideration liability	$	-	$	32,725	$	19,950	$	(30,067	)	$	-		$	22,608
Total Level 3 Liabilities	$	-	$	32,725	$	19,950	$	(30,067	)	$	-		$	22,608

	Year Ended December 31, 2015
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions/ Settlements		Foreign Currency Translation Adjustments			Ending Balance
Assets:
Investments:
Equities	$	1,315	$	14	$	-	$	-	$	(53	)	$	1,276
Total Level 3 Assets	$	1,315	$	14	$	-	$	-	$	(53	)	$	1,276

(a)

Earnings recorded in “other revenue” for investments in equities for the years ended December 31, 2017, 2016 and 2015 include net unrealized gains of $12, $243 and $14, respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the years ended December 31, 2017 and 2016 include unrealized losses of $6,582 and $2,658, respectively, and, for the year ended December 31, 2016, realized losses of $30,067 due to the change in the fair value of contingent consideration associated with the Edgewater business acquisition.

Financial Instruments Not Measured at Fair Value

Financial Instruments Not Measured at Fair Value—The tables below present the carrying value, fair value and fair value hierarchy category of certain financial instruments as of December 31, 2017 and 2016 that are not measured at fair value in the Company’s consolidated statement of financial condition, and excludes certain financial instruments such as equity method investments.

	December 31, 2017
			Fair Value Measurements Using:
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	1,483,836	$	1,483,836	$	1,483,836	$	-	$	-
Deposits with banks and short-term investments		935,431		935,431		935,431		-		-
Cash deposited with clearing organizations and other segregated cash		35,539		35,539		35,539		-		-
Interest-bearing financing receivables		80,536		82,492		-		-		82,492
Interest-bearing deposits (included within investments)		556		556		556		-		-
Financial Liabilities:
Deposits and other customer payables	$	992,338	$	992,338	$	992,338	$	-	$	-
Senior debt		1,190,383		1,230,254		-		1,230,254		-

	December 31, 2016
			Fair Value Measurements Using:
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	1,158,785	$	1,158,785	$	1,158,785	$	-	$	-
Deposits with banks and short-term investments		419,668		419,668		419,668		-		-
Cash deposited with clearing organizations and other segregated cash		29,030		29,030		29,030		-		-
Interest-bearing financing receivables		76,133		78,072		-		-		78,072
Interest-bearing deposits (included within investments)		456		456		456		-		-
Financial Liabilities:
Deposits and other customer payables	$	472,283	$	472,283	$	472,283	$	-	$	-
Senior debt		1,188,600		1,204,171		-		1,204,171		-

Fair Value of Certain Investments Based on NAV

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

December 31, 2017

Estimated Liquidation Period of

Investments Not Redeemable

Investments

Redeemable

Fair Value

Unfunded

Commitments

% of

Fair Value

Not

Redeemable

5 Years

5-10

Years

Thereafter

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

2,517

(a)

<30-60 days

Funds of funds

528

(b)

<30-90 days

Other

595

(c)

<30-60 days

Debt funds

(d)

30 days

Equity funds

(e)

<30-90 days

Private equity funds:

Equity growth

76,679

10,300

(f)

100

Total

80,378

10,300

(a)	weekly (3%), monthly (5%) and quarterly (92%)

(b)	monthly (97%) and quarterly (3%)

(c)	daily (6%) and monthly (94%)

(d)	daily (100%)

(e)	daily (18%), monthly (50%) and quarterly (32%)

(f)	Unfunded commitments to private equity investments consolidated but not owned by Lazard of $5,902 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

5 Years

5-10

Years

Thereafter

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

6,190

(a)

<30-60 days

Funds of funds

492

(b)

<30-90 days

Other

443

(c)

<30-60 days

Debt funds

(d)

30 days

Equity funds

(e)

<30-90 days

Private equity funds:

Equity growth

90,824

9,183

(f)

100

Mezzanine debt

31,597

100

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.