Schedule I - Condensed Financial Information of Registrant (Parent Company Only)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Of Parent Company Only Disclosure Abstract

Schedule I - Condensed Financial Information of Registrant (Parent Company Only)

LAZARD LTD

(parent company only)

CONDENSED STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31, 2019 AND 2018

(dollars in thousands, except per share data)

	December 31,
	2019			2018
ASSETS
Cash and cash equivalents	$	2,734		$	4,136
Investments in subsidiaries, equity method		(1,259,668	)		(1,275,357	)
Due from subsidiaries		1,872,940			2,191,915
Other assets		8			19
Total assets	$	616,014		$	920,713
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Due to subsidiaries	$	5,866		$	3,707
Other liabilities		157			155
Total liabilities		6,023			3,862
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;    112,766,091 and 129,766,091 shares issued at December 31, 2019    and 2018, respectively, including shares held by subsidiaries as    indicated below)		1,128			1,298
Additional paid-in-capital		41,020			750,692
Retained earnings		1,193,570			1,195,563
Accumulated other comprehensive loss, net of tax		(293,648	)		(273,818	)
		942,070			1,673,735
Class A common stock held by subsidiaries, at cost (8,513,493 and    17,574,805 shares at December 31, 2019 and 2018, respectively)		(332,079	)		(756,884	)
Total stockholders’ equity		609,991			916,851
Total liabilities and stockholders’ equity	$	616,014		$	920,713

LAZARD LTD

(parent company only)

CONDENSED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017

(dollars in thousands)

	Year Ended December 31,
	2019		2018		2017
REVENUE
Equity in earnings of subsidiaries	$	153,450	$	392,574	$	145,008
Interest and other income		135,220		136,399		110,381
Total revenue		288,670		528,973		255,389
OPERATING EXPENSES
Professional services		2,017		1,719		1,692
Other		153		129		114
Total operating expenses		2,170		1,848		1,806
NET INCOME	$	286,500	$	527,125	$	253,583

LAZARD LTD

(parent company only)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017

(dollars in thousands)

	Year Ended December 31,
	2019			2018			2017
NET INCOME	$	286,500		$	527,125		$	253,583
OTHER COMPREHENSIVE INCOME (LOSS), NET    OF TAX:
Currency translation adjustments		9,551			(46,601	)		71,668
Employee benefit plans:
Prior service costs (net of tax benefit of $17 and $543    for the years ended December 31, 2019 and 2018,    respectively)		(84	)		(2,653	)		-
Actuarial gain (loss) (net of tax expense (benefit) of    $(9,219), $131 and $(3,507) for the years ended    December 31, 2019, 2018 and 2017, respectively)		(34,014	)		(2,781	)		2,085
Adjustments for items reclassified to earnings (net of tax    expense of $1,167, $2,335 and $2,220 for the    years ended December 31, 2019, 2018 and 2017,    respectively)		4,717			10,735			7,951
OTHER COMPREHENSIVE INCOME (LOSS), NET OF    TAX		(19,830	)		(41,300	)		81,704
COMPREHENSIVE INCOME	$	266,670		$	485,825		$	335,287

LAZARD LTD

(parent company only)

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017

(dollars in thousands)

	Year Ended December 31,
	2019			2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	286,500		$	527,125		$	253,583
Adjustments to reconcile net income to net cash provided by    operating activities:
Equity in earnings of subsidiaries		(153,450	)		(392,574	)		(145,008	)
Dividends received from subsidiaries		88,400			189,786			63,822
Changes in due to/from subsidiaries		32,058			35,504			169,056
Changes in other operating assets and liabilities		14			13			27
Net cash provided by operating activities		253,522			359,854			341,480
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital contribution to subsidiaries		-			-			(25	)
Net cash used in investing activities		-			-			(25	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Class A common stock dividends		(254,924	)		(359,639	)		(341,450	)
Net cash used in financing activities		(254,924	)		(359,639	)		(341,450	)
Net increase (decrease) in cash and cash equivalents		(1,402	)		215			5
Cash and cash equivalents, January 1		4,136			3,921			3,916
Cash and cash equivalents, December 31	$	2,734		$	4,136		$	3,921

LAZARD LTD

(parent company only)

NOTES TO CONDENSED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

The accompanying Lazard Ltd condensed financial statements (the “Parent Company Financial Statements”), including the notes thereto, should be read in conjunction with the consolidated financial statements of Lazard Ltd and its subsidiaries (the “Company”) and the notes thereto.

The Parent Company Financial Statements as of December 31, 2019 and 2018, and for each of the three years in the period ended December 31, 2019, are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and the disclosures in the condensed financial statements. Management believes that the estimates utilized in the preparation of the condensed financial statements are reasonable. Actual results could differ materially from these estimates.

The Parent Company Financial Statements include investments in subsidiaries, accounted for under the equity method.