Cover
Cover - shares | 9 Months Ended | ||||||
Sep. 30, 2023 | Oct. 20, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Document Information [Line Items] | |||||||
Document Type | 10-Q | ||||||
Document Quarterly Report | true | ||||||
Document Period End Date | Sep. 30, 2023 | ||||||
Document Transition Report | false | ||||||
Entity File Number | 333-126751 | ||||||
Entity Registrant Name | LAZARD GROUP LLC | ||||||
Entity Incorporation, State or Country Code | DE | ||||||
Entity Tax Identification Number | 51-0278097 | ||||||
Entity Address, Address Line One | 30 Rockefeller Plaza | ||||||
Entity Address, City or Town | New York | ||||||
Entity Address, State or Province | NY | ||||||
Entity Address, Postal Zip Code | 10112 | ||||||
City Area Code | 212 | ||||||
Local Phone Number | 632-6000 | ||||||
Entity Current Reporting Status | Yes | ||||||
Entity Interactive Data Current | Yes | ||||||
Entity Filer Category | Non-accelerated Filer | ||||||
Entity Small Business | false | ||||||
Entity Emerging Growth Company | false | ||||||
Entity Shell Company | false | ||||||
Entity Central Index Key | 0001326141 | ||||||
Current Fiscal Year End Date | --12-31 | ||||||
Document Fiscal Period Focus | Q3 | ||||||
Document Fiscal Year Focus | 2023 | ||||||
Amendment Flag | false | ||||||
Entity Common Stock, Shares Outstanding | 0 | ||||||
Subsidiaries of Lazard Ltd | |||||||
Document Information [Line Items] | |||||||
Managing Membership Interests Outstanding | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | ||
ASSETS | ||||
Cash and cash equivalents | $ 645,185 | $ 1,180,473 | ||
Deposits with banks and short-term investments | 319,382 | 779,246 | ||
Restricted cash | 34,038 | 625,381 | ||
Receivables (net of allowance for credit losses of $21,081 and $17,737 at September 30, 2023 and December 31, 2022, respectively): | ||||
Fees | 505,976 | 491,861 | ||
Customers and other | 126,157 | 160,898 | ||
Lazard Ltd subsidiaries | 78,343 | 74,005 | ||
Receivables | 710,476 | 726,764 | ||
Investments | 657,880 | 698,977 | ||
Property (net of accumulated amortization and depreciation of $404,280 and $393,595 at September 30, 2023 and December 31, 2022, respectively) | 229,595 | 250,037 | ||
Operating lease right-of-use assets | 412,353 | 430,665 | ||
Goodwill and other intangible assets (net of accumulated amortization of $67,666 and $67,621 at September 30, 2023 and December 31, 2022, respectively) | 373,054 | 356,459 | ||
Deferred tax assets | 47,188 | 37,601 | ||
Other assets | 436,700 | 376,196 | ||
Total Assets | 3,865,851 | 5,461,799 | ||
Liabilities: | ||||
Deposits and other customer payables | 462,841 | 921,834 | ||
Accrued compensation and benefits | 495,393 | 733,460 | ||
Operating lease liabilities | 491,193 | 512,730 | ||
Senior debt | 1,689,579 | 1,687,714 | ||
Payable to Lazard Ltd subsidiaries | 17,248 | 20,189 | ||
Deferred tax liabilities | 5,383 | 3,920 | ||
Other liabilities | 522,033 | 531,968 | ||
Total Liabilities | 3,683,670 | 4,411,815 | ||
Commitments and contingencies | ||||
Redeemable noncontrolling interests | 81,781 | 583,471 | ||
MEMBERS’ EQUITY | ||||
Members' equity (net of 25,317,277 and 26,774,550 shares of Lazard Ltd Class A common stock, at a cost of $937,728 and $993,065 at September 30, 2023 and December 31, 2022, respectively) | 332,607 | 638,956 | ||
Accumulated other comprehensive loss, net of tax | (277,590) | (280,587) | ||
Total Lazard Group LLC Members’ Equity | 55,017 | 358,369 | ||
Noncontrolling interests | 45,383 | 108,144 | ||
Total Members’ Equity | [1] | 100,400 | [2] | 466,513 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ 3,865,851 | $ 5,461,799 | ||
[1](*) At January 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests.[2](*) At July 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 21,081 | $ 17,737 |
Property, accumulated amortization and depreciation | 404,280 | 393,595 |
Other intangible assets, accumulated amortization | $ 67,666 | $ 67,621 |
Lazard Ltd common stock, shares (in shares) | 25,317,277,000 | 26,774,550,000 |
Lazard Ltd common stock, cost | $ 937,728 | $ 993,065 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
REVENUE | ||||
Interest income | $ 11,484 | $ 8,013 | $ 34,597 | $ 13,789 |
Other | 410 | 5,412 | 40,507 | (2,203) |
Total revenue | 543,258 | 743,283 | 1,766,203 | 2,118,079 |
Interest expense | 18,763 | 19,402 | 56,425 | 61,350 |
Net revenue | 524,495 | 723,881 | 1,709,778 | 2,056,729 |
OPERATING EXPENSES | ||||
Compensation and benefits | 364,060 | 418,140 | 1,380,814 | 1,175,662 |
Occupancy and equipment | 32,997 | 30,539 | 97,398 | 90,875 |
Marketing and business development | 20,752 | 19,585 | 72,014 | 56,287 |
Technology and information services | 46,858 | 44,534 | 142,182 | 124,437 |
Professional services | 18,150 | 15,236 | 61,700 | 46,077 |
Fund administration and outsourced services | 27,884 | 27,110 | 83,428 | 85,364 |
Amortization and other acquisition-related costs | 96 | 15 | 239 | 45 |
Other | 14,941 | 9,005 | 52,814 | 28,801 |
Total operating expenses | 525,738 | 564,164 | 1,890,589 | 1,607,548 |
OPERATING INCOME (LOSS) | (1,243) | 159,717 | (180,811) | 449,181 |
Provision (benefit) for income taxes | (29,374) | 20,535 | 67,405 | 55,533 |
NET INCOME (LOSS) | 28,131 | 139,182 | (248,216) | 393,648 |
LESS - NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (364) | 16,996 | 10,245 | 20,265 |
NET INCOME (LOSS) ATTRIBUTABLE TO LAZARD LTD | 28,495 | 122,186 | (258,461) | 373,383 |
Investment banking and other advisory fees | ||||
REVENUE | ||||
Revenue | 265,764 | 450,818 | 892,383 | 1,243,390 |
Asset management fees | ||||
REVENUE | ||||
Revenue | $ 265,600 | $ 279,040 | $ 798,716 | $ 863,103 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 28,131 | $ 139,182 | $ (248,216) | $ 393,648 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Currency translation adjustments before reclassification | (19,712) | (53,627) | (3,088) | (133,246) |
Adjustment for items reclassified to earnings | 2,472 | 138 | 2,500 | 265 |
Employee benefit plans: | ||||
Actuarial gain (loss) (net of tax expense of $1,195 and $1,832 for the three months ended September 30, 2023 and 2022, respectively, and $121 and $4,436 for the nine months ended September 30, 2023 and 2022, respectively) | 5,054 | 8,786 | (332) | 20,512 |
Adjustment for items reclassified to earnings (net of tax expense of $374 and $233 for the three months ended September 30, 2023 and 2022, respectively, and $1,135 and $748 for the nine months ended September 30, 2023 and 2022, respectively) | 1,580 | 1,162 | 3,916 | 2,816 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (10,606) | (43,541) | 2,996 | (109,653) |
COMPREHENSIVE INCOME (LOSS) | 17,525 | 95,641 | (245,220) | 283,995 |
LESS - COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (366) | 16,997 | 10,244 | 20,264 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO LAZARD GROUP LLC | $ 17,891 | $ 78,644 | $ (255,464) | $ 263,731 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) on actuarial gain (loss), employee benefit plans | $ 1,195 | $ 1,832 | $ 121 | $ 4,436 |
Tax expense, adjustment for items reclassified to earnings, employee benefit plans | $ (374) | $ (233) | $ 1,135 | $ 748 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET INCOME (LOSS) | $ (248,216) | $ 393,648 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property | 32,172 | 31,670 |
Noncash lease expense | 47,509 | 45,884 |
Currency translation adjustment reclassification | 2,500 | 265 |
Amortization of deferred expenses and share-based incentive compensation | 352,826 | 332,074 |
Amortization and other acquisition-related costs | 239 | 45 |
Deferred tax provision (benefit) | (10,280) | 2,449 |
Impairment of equity method investments and other receivables | 22,981 | 0 |
Impairment of assets associated with cost-saving initiatives | 8,561 | 0 |
Loss on LGAC liquidation | 17,929 | 0 |
(Increase) decrease in operating assets and increase (decrease) in operating liabilities: | ||
Receivables-net | 14,135 | 34,973 |
Investments | (100,714) | 236,275 |
Other assets | (26,546) | (69,708) |
Accrued compensation and benefits and other liabilities | (285,210) | (487,089) |
Net cash provided by (used in) operating activities | (172,114) | 520,486 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property | (19,505) | (24,986) |
Disposals of property | 352 | 272 |
Acquisition of business, net of cash acquired | (10,516) | 0 |
Other investing activities | 0 | (7,500) |
Net cash used in investing activities | (29,669) | (32,214) |
Proceeds from: | ||
Customer deposits, net | 0 | 281,360 |
Contributions from noncontrolling interests | 1,198 | 338 |
Other financing activities | 50 | 40 |
Payments for: | ||
Customer deposits, net | (466,658) | 0 |
Distributions to noncontrolling interests | (5,068) | (27,052) |
Distribution to redeemable noncontrolling interests in connection with LGAC redemption | (585,891) | 0 |
Purchase of Class A common stock | (102,051) | (612,175) |
Distributions to members | (120,184) | (140,845) |
Settlement of share-based incentive compensation in satisfaction of tax withholding requirements | (53,923) | (61,256) |
LFI Consolidated Funds redemptions | (36,816) | (11,296) |
Other financing activities | (10,186) | (10,844) |
Net cash used in financing activities | (1,379,529) | (581,730) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (5,183) | (353,865) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (1,586,495) | (447,323) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1 | 2,585,100 | 3,400,568 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—September 30 | $ 998,605 | $ 2,953,245 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION: | ||||
Cash and cash equivalents | $ 645,185 | $ 1,180,473 | ||
Deposits with banks and short-term investments | 319,382 | 779,246 | ||
Restricted cash | 34,038 | 625,381 | ||
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | $ 998,605 | $ 2,585,100 | $ 2,953,245 | $ 3,400,568 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Thousands | Total | Members' Equity | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total Lazard Ltd Stockholders’ Equity | Noncontrolling Interests | Redeemable Noncontrolling Interests | |
Balance at the beginning at Dec. 31, 2021 | [1] | $ 874,466 | $ 984,807 | $ (209,037) | $ 775,770 | $ 98,696 | $ 575,000 |
Comprehensive income (loss): | |||||||
Net income | 384,400 | 373,383 | 373,383 | 11,017 | 9,248 | ||
Other comprehensive income (loss) - net of tax | (109,653) | (109,652) | (109,652) | (1) | |||
Amortization of share-based incentive compensation | 201,102 | 201,102 | 201,102 | ||||
Contributions from (distributions to) members and noncontrolling interests, net | (167,559) | (140,845) | (140,845) | (26,714) | |||
Purchase of Class A common stock | (612,175) | (612,175) | (612,175) | ||||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit | (61,196) | (61,196) | (61,196) | ||||
LFI Consolidated Funds | 20,110 | 20,110 | |||||
Change in redemption value of redeemable noncontrolling interests | 5,753 | 4,027 | 4,027 | 1,726 | (5,753) | ||
Other | (10,785) | (10,785) | (10,785) | ||||
Balance at the end at Sep. 30, 2022 | [1],[2] | 524,463 | 738,318 | (318,689) | 419,629 | 104,834 | 578,495 |
Balance at the beginning at Jun. 30, 2022 | [2] | 610,976 | 784,121 | (275,147) | 508,974 | 102,002 | 575,710 |
Comprehensive income (loss): | |||||||
Net income | 135,440 | 122,186 | 122,186 | 13,254 | 3,742 | ||
Other comprehensive income (loss) - net of tax | (43,541) | (43,542) | (43,542) | 1 | |||
Amortization of share-based incentive compensation | 74,916 | 74,916 | 74,916 | ||||
Contributions from (distributions to) members and noncontrolling interests, net | (17,385) | 25 | 25 | (17,410) | |||
Purchase of Class A common stock | (236,990) | (236,990) | (236,990) | ||||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit | (2,516) | (2,516) | (2,516) | ||||
LFI Consolidated Funds | 6,702 | 6,702 | |||||
Change in redemption value of redeemable noncontrolling interests | 957 | 670 | 670 | 287 | (957) | ||
Other | (4,096) | (4,094) | (4,094) | (2) | |||
Balance at the end at Sep. 30, 2022 | [1],[2] | 524,463 | 738,318 | (318,689) | 419,629 | 104,834 | 578,495 |
Balance at the beginning at Dec. 31, 2022 | [3] | 466,513 | 638,956 | (280,587) | 358,369 | 108,144 | 583,471 |
Comprehensive income (loss): | |||||||
Net income | (253,765) | (258,461) | (258,461) | 4,696 | 5,549 | ||
Other comprehensive income (loss) - net of tax | 2,996 | 2,997 | 2,997 | (1) | |||
Amortization of share-based incentive compensation | 209,630 | 209,630 | 209,630 | ||||
Contributions from (distributions to) members and noncontrolling interests, net | (124,054) | (120,184) | (120,184) | (3,870) | |||
Purchase of Class A common stock | (102,051) | (102,051) | (102,051) | ||||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit | (53,914) | (53,914) | (53,914) | ||||
Class A common stock issuable | 1,775 | 1,775 | 1,775 | ||||
LFI Consolidated Funds | (74,164) | (74,164) | 78,063 | ||||
Change in redemption value of redeemable noncontrolling interests | (589) | (412) | (412) | (177) | 589 | ||
Distribution to redeemable noncontrolling interests | (585,891) | ||||||
Reversal to net loss of amounts previously charged to members' equity and noncontrolling interests | 17,929 | 13,195 | 13,195 | 4,734 | |||
Reversal of deferred offering costs liability | 20,125 | 14,087 | 14,087 | 6,038 | |||
Dividend equivalents | (9,334) | (9,334) | (9,334) | ||||
Other | (697) | (680) | (680) | (17) | |||
Balance at the end at Sep. 30, 2023 | [3],[4] | 100,400 | 332,607 | (277,590) | 55,017 | 45,383 | 81,781 |
Balance at the beginning at Jun. 30, 2023 | [4] | 78,017 | 302,566 | (266,986) | 35,580 | 42,437 | 83,583 |
Comprehensive income (loss): | |||||||
Net income | 31,382 | 28,495 | 28,495 | 2,887 | (3,251) | ||
Other comprehensive income (loss) - net of tax | (10,606) | (10,604) | (10,604) | (2) | |||
Amortization of share-based incentive compensation | 58,362 | 58,362 | 58,362 | ||||
Contributions from (distributions to) members and noncontrolling interests, net | (46,439) | (46,500) | (46,500) | 61 | |||
Purchase of Class A common stock | (2,954) | (2,954) | (2,954) | ||||
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit | (5,209) | (5,209) | (5,209) | ||||
LFI Consolidated Funds | 1,449 | ||||||
Dividend equivalents | (2,153) | (2,153) | (2,153) | ||||
Balance at the end at Sep. 30, 2023 | [3],[4] | $ 100,400 | $ 332,607 | $ (277,590) | $ 55,017 | $ 45,383 | $ 81,781 |
[1](*) At January 1, 2022 and September 30, 2022, in addition to profit participation interests, there were two managing member interests.[2](*) At July 1, 2022 and September 30, 2022, in addition to profit participation interests, there were two managing member interests.[3](*) At January 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests.[4](*) At July 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests. |
CONDENSED CONSOLIDATED STATEM_9
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related tax benefit of share-based incentive compensation on delivery of Class A common stock | $ 6 | $ 2 | $ 9 | $ 60 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ (10,606) | $ (43,541) | $ 2,996 | $ (109,653) |
Subsidiaries of Lazard Ltd | ||||
Managing member interests (in shares) | 2 | 2 | 2 | 2 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization The accompanying condensed consolidated financial statements are those of Lazard Group LLC and its subsidiaries (collectively referred to as “Lazard Group”, “we” or the “Company”). Lazard Group is a Delaware limited liability company, which as of December 31, 2022 was governed by an Amended and Restated Operating Agreement dated as of February 4, 2019. Such operating agreement was subsequently amended and restated effective as of January 1, 2023 (as so amended and restated the “Operating Agreement”). Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”), including its indirect investment in Lazard Group, is one of the world’s preeminent financial advisory and asset management firms that specializes 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 September 30, 2023 and December 31, 2022. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group. Lazard Group’s 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 strategic and mergers and acquisitions (“M&A”) advisory, capital markets advisory, shareholder advisory, restructuring and liability management sovereign advisory, geopolitical advisory, and other strategic advisory matters and capital raising and placement, and • Asset Management, which offers a broad range of global investment solutions and investment and wealth 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 certain assets and liabilities associated with (i) Lazard Group’s Paris-based subsidiary, Lazard Frères Banque SA (“LFB”), and (ii) in 2022, a special purpose acquisition company that was sponsored by an affiliate of the Company, Lazard Growth Acquisition Corp. I (“LGAC”). Basis of Presentation The accompanying condensed consolidated financial statements of Lazard Group 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 Group’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying December 31, 2022 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 that 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 condensed consolidated 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 estimated annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates. The consolidated results of operations for the three month and nine month periods ended September 30, 2023 are not indicative of the results to be expected for any future interim or annual period. The condensed consolidated financial statements include 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 (see Note 19). 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 losses or (ii) elects the option to measure its investment at fair value. Intercompany transactions and balances have been eliminated. Lazard Growth Acquisition Corp. I In February 2021, LGAC consummated its $575,000 initial public offering (the “LGAC IPO”). LGAC is a dormant special purpose acquisition company, that was incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”). LGACo 1 LLC, a Delaware series limited liability company and the Company’s subsidiary, was the sponsor of LGAC. LGAC is considered to be a VIE. The Company holds a controlling financial interest in LGAC through the sponsor’s ownership of Class B founder shares of LGAC. As a result, both LGAC and the sponsor are consolidated in the Company’s financial statements. The proceeds from the LGAC IPO of $575,000 were held in a trust account, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds in the trust account to the LGAC shareholders in connection with the redemption of LGAC’s Class A ordinary shares, subject to certain conditions. The cash held in the trust account was recorded in “restricted cash” on the condensed consolidated statements of financial condition as of December 31, 2022. Transaction costs, which consisted of a net underwriting fee of $8,500, $20,125 of non-cash deferred underwriting fees (included in “other liabilities” on the condensed consolidated statements of financial condition as of December 31, 2022) and $852 of other offering costs, were charged against the gross proceeds of the LGAC IPO. “Redeemable noncontrolling interests” of $583,471 associated with the publicly held LGAC Class A ordinary shares were recorded on the Company’s condensed consolidated statements of financial condition as of December 31, 2022 at redemption value and classified as temporary equity. Changes in redemption value are recognized immediately as they occur and will adjust the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable noncontrolling interests shall be affected by credits or charges to members’ equity and noncontrolling interests attributable to certain members of LGACo 1 LLC based on pro rata ownership. The warrants exercisable for LGAC Class A ordinary shares that were issued in connection with the LGAC IPO (the “LGAC Warrants”) meet the definition of a liability under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815 and were classified as derivative liabilities which were remeasured at fair value at each balance sheet date until exercised or cancelled, with changes in fair value reported to earnings. See Note 6. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company disaggregates revenue based on its business segment results and believes that the following information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net Revenue: Financial Advisory (a) $ 266,156 $ 453,084 $ 895,313 $ 1,248,926 Asset Management: Management fees and other (b) $ 282,657 $ 277,202 $ 843,590 $ 872,351 Incentive fees (c) 2,198 21,595 13,622 54,098 Total Asset Management $ 284,855 $ 298,797 $ 857,212 $ 926,449 ___________________________________ (a) Financial Advisory is comprised of a wide array of financial advisory services regarding M&A advisory, capital markets advisory, shareholder advisory, restructuring and liability management, sovereign advisory, geopolitical advisory, and other strategic advisory and capital raising and placement work for clients. The benefits of these advisory services are generally transferred to the Company’s clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events. (b) Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of fund interests is a separate performance obligation within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed. (c) Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks. In addition to the above, contracts with clients include trade-based commission income, which is recognized at the point in time of execution and presented within other revenue. Such income may be earned by providing trade facilitation, execution, clearance and settlement, custody, and trade administration services to clients. With regard to the disclosure requirement for remaining performance obligations, the Company elected the practical expedients permitted in the guidance to (i) exclude contracts with a duration of one year or less; and (ii) exclude variable consideration, such as transaction completion and transaction announcement fees, that is allocated entirely to unsatisfied performance obligations. Excluded variable consideration typically relates to contracts with a duration of one year or less, and is generally constrained due to uncertainties. Therefore, when applying the practical expedients, amounts related to remaining performance obligations are not material to the Company’s financial statements. |
RECEIVABLES AND ALLOWANCE FOR C
RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES | RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES The Company’s receivables represent fee receivables, amounts due from customers and other receivables and amounts due from Lazard Ltd subsidiaries. Where applicable, receivables are stated net of an estimated allowance for credit losses determined in accordance with the current expected credit losses (“CECL”) model, for general credit risk of the overall portfolio and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute. Of the Company’s fee receivables at September 30, 2023 and December 31, 2022, $115,379 and $97,964, respectively, represented financing receivables for our Private Capital Advisory fees. At September 30, 2023 and December 31, 2022, customers and other receivables included $89,753 and $128,890, respectively, of customer loans, which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of both September 30, 2023 and December 31, 2022. The aggregate carrying amount of other fees and customers and other receivables and amounts due from Lazard Ltd subsidiaries was $505,344 and $499,910 at September 30, 2023 and December 31, 2022, respectively. Activity in the allowance for credit losses for the three month and nine month periods ended September 30, 2023 and 2022 was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Beginning Balance $ 27,095 $ 30,269 $ 17,737 $ 33,955 Bad debt expense (credit), net of reversals 2,267 (457) 13,287 (999) Charge-offs, foreign currency translation and other adjustments (8,281) (15,516) (9,943) (18,660) Ending Balance $ 21,081 $ 14,296 $ 21,081 $ 14,296 Bad debt expense, net of reversals represents the current period provision of expected credit losses and is included in “operating expenses — other” on the condensed consolidated statements of operations. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Schedule of Investments [Abstract] | |
INVESTMENTS | INVESTMENTS The Company’s investments consist of the following at September 30, 2023 and December 31, 2022: September 30, December 31, Debt $ 4,481 $ - Equities 40,659 43,889 Funds: Alternative investments (a) 60,210 56,947 Debt (a) 183,790 178,556 Equity (a) 324,239 350,282 Private equity 44,501 53,822 612,740 639,607 Investments, at fair value 657,880 683,496 Equity method investments - 15,481 Total investments $ 657,880 $ 698,977 ___________________________________ (a) Interests in alternative investment funds, debt funds and equity funds include investments, including those held by LFI Consolidated Funds (see Note 19), with fair values of $27,145, $168,624 and $262,223, respectively, at September 30, 2023 and $24,137, $142,632 and $266,528, respectively, at December 31, 2022, held in order to satisfy the Company’s obligation 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 interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12). Debt primarily consists of U.S. Treasury securities with original maturities at time of purchase of greater than three months and less than one year. Equities primarily consist of investments in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts to seed strategies and funds in our Asset Management business. Alternative investment funds primarily consist of interests in various Lazard-managed hedge funds, funds of funds and mutual funds. Such amounts primarily consist of investments in funds to seed strategies and funds in our Asset Management business and amounts related to LFI discussed above. Debt funds primarily consist of investments in funds to seed strategies and funds in 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 investments in funds to seed strategies and funds in 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 fund targeting significant noncontrolling-stake investments in established private companies and (iii) a seed investment in a fund that invests in sustainable private infrastructure opportunities. 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”). Equity method investments represent certain partnership interests accounted for under the equity method of accounting. During the three month and nine month periods ended September 30, 2023 and 2022, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to equity securities and trading debt securities still held as of the reporting date as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net unrealized investment gains (losses) $ (23,879) $ (31,093) $ 14,551 $ (134,091) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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 debt is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. 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 interests 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 based on the publicly reported closing price for the fund, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. The fair value of investments in certain private equity funds is classified as Level 3 for (i) certain investments that are valued based on the potential transaction value and (ii) when the acquisition price is considered the best measure of fair value. 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 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 fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. The fair value of derivatives entered into by the Company and classified as Level 1 is based on the listed market price of such instruments. The fair value of derivatives entered into by the Company and classified as Level 2 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 Net Asset Value (“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 September 30, 2023 and December 31, 2022, 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: September 30, 2023 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Debt $ 3,524 $ 957 $ - $ - $ 4,481 Equities 40,119 - 540 - 40,659 Funds: Alternative investments 15,534 - - 44,676 60,210 Debt 173,546 10,240 - 4 183,790 Equity 324,197 - - 42 324,239 Private equity - - 261 44,240 44,501 Derivatives - 3,678 - - 3,678 Total $ 556,920 $ 14,875 $ 801 $ 88,962 $ 661,558 Liabilities: Securities sold, not yet purchased $ 1,724 $ - $ - $ - $ 1,724 Contingent consideration liability - - 6,503 - 6,503 Derivatives - 342,483 - - 342,483 Total $ 1,724 $ 342,483 $ 6,503 $ - $ 350,710 December 31, 2022 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Equities $ 43,243 $ - $ 646 $ - $ 43,889 Funds: Alternative investments 27,073 - - 29,874 56,947 Debt 178,552 - - 4 178,556 Equity 350,242 - - 40 350,282 Private equity - - 18,772 35,050 53,822 Derivatives - 14,554 - - 14,554 Total $ 599,110 $ 14,554 $ 19,418 $ 64,968 $ 698,050 Liabilities: Securities sold, not yet purchased $ 4,651 $ - $ - $ - $ 4,651 Derivatives 115 327,045 - - 327,160 Total $ 4,766 $ 327,045 $ - $ - $ 331,811 The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month and nine month periods ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 Beginning Balance Net Unrealized/ Purchases/ Sales/ Foreign Ending Assets: Investments: Equities $ 642 $ (95) $ - $ - $ (7) $ 540 Private equity funds 268 - - - (7) 261 Total Level 3 assets $ 910 $ (95) $ - $ - $ (14) $ 801 Liabilities: Contingent consideration liability $ 6,422 $ 81 $ - $ - $ - $ 6,503 Total Level 3 liabilities $ 6,422 $ 81 $ - $ - $ - $ 6,503 Nine Months Ended September 30, 2023 Beginning Net Unrealized/ Purchases/Acquisitions/ Sales/ Foreign Ending Assets: Investments: Equities $ 646 $ (81) $ - $ - $ (25) $ 540 Private equity funds 18,772 - - (18,508) (3) 261 Total Level 3 assets $ 19,418 $ (81) $ - $ (18,508) $ (28) $ 801 Liabilities: Contingent consideration liability (c) $ - $ 194 $ 7,754 $ (1,445) $ - $ 6,503 Total Level 3 liabilities $ - $ 194 $ 7,754 $ (1,445) $ - $ 6,503 Three Months Ended September 30, 2022 Beginning Net Unrealized/ Purchases/ Sales/ Foreign Ending Assets: Investments: Equities $ 542 $ 28 $ - $ - $ (41) $ 529 Private equity funds 256 - - - (16) 240 Total Level 3 assets $ 798 $ 28 $ - $ - $ (57) $ 769 Nine Months Ended September 30, 2022 Beginning Net Unrealized/ Purchases/ Sales/ Foreign Ending Assets: Investments: Equities $ 578 $ 35 $ - $ - $ (84) $ 529 Private equity funds 293 - - (13) (40) 240 Total Level 3 assets $ 871 $ 35 $ - $ (13) $ (124) $ 769 __________________________________ (a) Earnings recorded in “other revenue” for investments in Level 3 assets for the three month and nine month periods ended September 30, 2023 and 2022 include net unrealized gains (losses) of $(76), $(62), $28 and $35, respectively. Unrealized losses of $81 and $194 were recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2023. (b) Transfers out of Level 3 private equity funds in the nine month period ended September 30, 2023 reflect investments valued at NAV as of September 30, 2023. (c) For the nine month period ended September 30, 2023, acquisitions represent the initial recognition of the contingent consideration liability (noncash transaction), and settlements represent aggregate cash and noncash settlement of contingent consideration after the acquisition date. There were no other transfers into or out of Level 3 within the fair value hierarchy during the three month and nine month periods ended September 30, 2023 and 2022. The following tables present, at September 30, 2023 and December 31, 2022, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2023 Investments Redeemable NAV Unfunded Commitments % of Redemption Frequency Redemption Notice Period Alternative investment funds: Hedge funds $ 44,022 $ - NA (a) 30-60 days Other 654 - NA (b) <30-30 days Debt funds 4 - NA (c) <30 days Equity funds 42 - NA (d) <30-60 days Private equity funds: Equity growth 44,240 5,547 (e) 100 % (f) NA NA Total $ 88,962 $ 5,547 ___________________________________ (a) monthly (73%) and quarterly (27%) (b) daily (5%) and monthly (95%) (c) daily (100%) (d) monthly (33%) and annually (67%) (e) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $10,206 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. (f) Distributions from each fund will be received as the underlying investments of the funds are liquidated. December 31, 2022 Investments Redeemable NAV Unfunded % of Redemption Redemption Alternative investment funds: Hedge funds $ 29,259 $ - NA (a) 30-60 days Other 615 - NA (b) <30-30 days Debt funds 4 - NA (c) <30 days Equity funds 40 - NA (d) <30-60 days Private equity funds: Equity growth 35,050 5,455 (e) 100 % (f) NA NA Total $ 64,968 $ 5,455 ___________________________________ (a) monthly (68%) and quarterly (32%) (b) daily (5%) and monthly (95%) (c) daily (100%) (d) monthly (35%) and annually (65%) (e) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $8,003 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. (f) Distributions from each fund will be received as the underlying investments of the funds are liquidated. Investment Capital Funding Commitments —At September 30, 2023, the Company’s maximum unfunded commitments for capital contributions to investment funds primarily arose from commitments to EGCP III, which amounted to $5,028. 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. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The tables below present 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 September 30, 2023 and December 31, 2022. Notional amounts provide an indication of the volume of the Company's derivative activity. Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the condensed consolidated statements of financial condition where the Company has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the condensed consolidated statements of financial condition, and those derivative assets and liabilities are shown separately in the table below. In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition. September 30, 2023 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 1,985 $ 151,496 $ 1,979 $ 207,558 Total return swaps and other 4,042 79,756 2,270 54,754 LFI and other similar deferred compensation arrangements - - 340,583 357,133 Total gross derivatives 6,027 $ 231,252 344,832 $ 619,445 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts (79) (83) Total return swaps and other (2,270) (2,265) Net derivatives in "other assets" and "other liabilities" 3,678 342,484 Amounts not netted (a): Cash collateral - (1,692) Securities collateral - - $ 3,678 $ 340,792 December 31, 2022 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 1,356 $ 170,103 $ 921 $ 128,098 Total return swaps and other 13,427 155,026 72 1,398 LGAC Warrants - - 115 11,500 LFI and other similar deferred compensation arrangements - - 326,282 338,126 Total gross derivatives 14,783 $ 325,129 327,390 $ 479,122 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts (157) (158) Total return swaps and other (72) (72) Net derivatives in "other assets" and "other liabilities" 14,554 327,160 Amounts not netted (a): Cash collateral - - Securities collateral - - $ 14,554 $ 327,160 ___________________________________ (a) Amounts are subject to master netting arrangements but do not meet the criteria for netting on the condensed consolidated statements of financial condition under U.S. GAAP. For some counterparties, the collateral amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the total amount reported is limited to the net derivative assets and net derivative liabilities balances with that counterparty. Net gains (losses) with respect to derivative instruments (included 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 and nine month periods ended September 30, 2023 and 2022, were as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Forward foreign currency exchange rate contracts $ (984) $ 2,650 $ (1,684) $ 8,260 LFI and other similar deferred compensation arrangements 10,598 16,180 (15,530) 65,601 LGAC Warrants - 2,300 115 9,430 Total return swaps and other 6,523 7,177 (4,907) 32,676 Total $ 16,137 $ 28,307 $ (22,006) $ 115,967 See Note 1 for additional information on LGAC Warrants. |
PROPERTY, NET
PROPERTY, NET | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, NET | PROPERTY, NET At September 30, 2023 and December 31, 2022, property consisted of the following: Estimated September 30, December 31, Buildings 33 $ 163,900 $ 135,103 Leasehold improvements 3-20 224,556 207,285 Furniture and equipment 3-10 232,150 235,684 Construction in progress 13,269 65,560 Total 633,875 643,632 Less - Accumulated depreciation and amortization 404,280 393,595 Property, net $ 229,595 $ 250,037 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets at September 30, 2023 and December 31, 2022 are presented below: September 30, December 31, Goodwill $ 373,009 $ 356,369 Other intangible assets (net of accumulated amortization) 45 90 $ 373,054 $ 356,459 At September 30, 2023 and December 31, 2022, goodwill of $291,739 and $291,828, respectively, was attributable to the Company’s Financial Advisory segment and, goodwill of $81,270 and $64,541, respectively, was attributable to the Company’s Asset Management segment. Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2023 and 2022 are as follows: Nine Months Ended 2023 2022 Balance, January 1 $ 356,369 $ 357,187 Acquisition of business 16,729 - Foreign currency translation adjustments (89) (1,956) Balance, September 30 $ 373,009 $ 355,231 The acquisition in the nine month period ended September 30, 2023 was attributable to the Company’s Asset Management segment. All other changes in the carrying amount of goodwill for the nine month periods ended September 30, 2023 and 2022 are attributable to the Company’s Financial Advisory segment. |
SENIOR DEBT
SENIOR DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SENIOR DEBT | SENIOR DEBT Senior debt is comprised of the following as of September 30, 2023 and December 31, 2022: Outstanding as of September 30, 2023 December 31, 2022 Initial Maturity Annual Principal Unamortized Carrying Principal Unamortized Carrying Lazard Group $ 400,000 2/13/25 3.75 % $ 400,000 $ 649 $ 399,351 $ 400,000 $ 1,003 $ 398,997 Lazard Group 300,000 3/1/27 3.625 % 300,000 1,333 298,667 300,000 1,625 298,375 Lazard Group 500,000 9/19/28 4.50 % 500,000 4,225 495,775 500,000 4,864 495,136 Lazard Group 500,000 3/11/29 4.375 % 500,000 4,214 495,786 500,000 4,794 495,206 Total $ 1,700,000 $ 10,421 $ 1,689,579 $ 1,700,000 $ 12,286 $ 1,687,714 __________________________ (a) The effective interest rates of Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”), Lazard Group’s 3.625% senior notes due March 1, 2027 (the “2027 Notes”), Lazard Group’s 4.50% senior notes due September 19, 2028 (the “2028 Notes”) and Lazard Group’s 4.375% senior notes due March 11, 2029 (the “2029 Notes”) are 3.87%, 3.76%, 4.67% and 4.53%, respectively. The Company’s senior debt at September 30, 2023 and December 31, 2022 is carried at their principal balances outstanding, net of unamortized debt costs. At those dates, the fair value of such senior debt was approximately $1,586,000 and $1,602,000, 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. On June 6, 2023, Lazard Group entered into a Second Amended and Restated Credit Agreement with a group of lenders for a five-year, $200,000 senior revolving credit facility expiring in June 2028 (the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement amended and restated the three-year, $200,000 senior revolving credit facility that was due to expire in July 2023 (the “Previous Credit Agreement”) in its entirety. Borrowings under the Second Amended and Restated Credit Agreement generally will bear interest at adjusted term SOFR plus an applicable margin for specific interest periods determined based on Lazard Group’s highest credit rating from an internationally recognized credit agency. The Second Amended and Restated Credit Agreement contains certain covenants, events of default and other customary provisions, including customary benchmark-replacement mechanics. At September 30, 2023 and December 31, 2022, no amounts were outstanding under the Second Amended and Restated Credit Agreement and the Previous Credit Agreement, respectively. As of September 30, 2023, the Company had approximately $209,000 in unused lines of credit available to it, including the credit facility provided under the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement and 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 September 30, 2023, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees —A subsidiary of LAM guaranteed a revolving credit facility of an unconsolidated fund expiring on October 1, 2023. At September 30, 2023, the maximum amount of future payments under such guarantee is $10,000. Other Commitments —From time to time, LFB and LFNY may enter into underwriting commitments in which they will participate as an underwriter. At September 30, 2023, 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. The fulfillment of the commitments described herein should 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, governmental, 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 may experience significant variation in its revenue and earnings on a quarterly basis. Accordingly, the results of any pending matter or matters could be significant when compared to the Company’s earnings in any particular 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. |
MEMBERS_ EQUITY AND REDEEMABLE
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS | MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS Lazard Group Distributions —Distributions in respect of Lazard Group’s common membership interests are allocated to the holders of such interests in accordance with the provisions of the Operating Agreement. Such distributions primarily represent amounts necessary to fund (i) any dividends Lazard Ltd may declare on its Class A common stock (“common stock”), the only class of common stock of Lazard outstanding, and (ii) tax distributions in respect of income taxes that Lazard Ltd’s subsidiaries incur. During the nine month periods ended September 30, 2023 and 2022, Lazard Group distributed $120,184 and $140,845, respectively, to the subsidiaries of Lazard Ltd. In addition, in March 2023 and February 2022, Lazard Group distributed 1,521,620 and 1,902,756 shares of common stock, respectively, to one of its managing members, which is a subsidiary of Lazard Ltd, in non-cash transactions, in connection with the settlement of profits interest participation rights during the nine month periods ended September 30, 2023 and 2022, respectively (see Note 12). There was no impact on total members’ equity resulting from such distributions. Pursuant to Lazard Group’s Operating Agreement, Lazard Group allocates and distributes to its members a substantial portion of its distributable profits in installments as soon as practicable after the end of each fiscal year. Such installment distributions usually begin in February. Share Repurchase Program —Since 2021 and through the nine month period ended September 30, 2023, the Board of Directors of Lazard authorized the repurchase of common stock as set forth in the table below: Date Repurchase Expiration April 2021 $ 300,000 December 31, 2022 February 2022 $ 300,000 December 31, 2024 July 2022 $ 500,000 December 31, 2024 The Company expects that the share repurchase program will continue to be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2018 Incentive Compensation Plan, as amended (the “2018 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 period to period due to a variety of factors. Purchases with respect to such program are set forth in the table below: Nine Months Ended September 30: Number of Average 2022 17,249,880 $ 35.49 2023 2,782,662 $ 36.67 During the nine month periods ended September 30, 2023 and 2022, certain of our executive officers received common stock in connection with the vesting or settlement of previously-granted deferred equity incentive awards. The vesting or settlement 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 common stock from certain of our executive officers equal in value to all or a portion of the estimated amount of such tax. In addition, during the nine month periods ended September 30, 2023 and 2022, the Company purchased shares of common stock from certain of our executive officers. The aggregate value of all such purchases during the nine month periods ended September 30, 2023 and 2022 was approximately $11,100 and $16,500, respectively. Such shares of common stock are reported at cost. As of September 30, 2023, a total of $200,095 of share repurchase authorization remained available under Lazard Ltd’s share repurchase program, which authorization will expire on December 31, 2024. During the nine month period ended September 30, 2023, Lazard Ltd 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. Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax —The tables below reflect the balances of each component of AOCI at September 30, 2023 and 2022 and activity during the three month and nine month periods then ended: Three Months Ended September 30, 2023 Currency Employee Total Amount Total Balance, July 1, 2023 $ (123,450) $ (143,533) $ (266,983) $ 3 $ (266,986) Activity: Other comprehensive income (loss) before reclassifications (19,712) 5,054 (14,658) (2) (14,656) Adjustments for items reclassified to earnings, net of tax 2,472 1,580 4,052 - 4,052 Net other comprehensive income (loss) (17,240) 6,634 (10,606) (2) (10,604) Balance, September 30, 2023 $ (140,690) $ (136,899) $ (277,589) $ 1 $ (277,590) Nine Months Ended September 30, 2023 Currency Employee Total Amount Total Balance, January 1, 2023 $ (140,102) $ (140,483) $ (280,585) $ 2 $ (280,587) Activity: Other comprehensive loss before reclassifications (3,088) (332) (3,420) (1) (3,419) Adjustments for items reclassified to earnings, net of tax 2,500 3,916 6,416 - 6,416 Net other comprehensive income (loss) (588) 3,584 2,996 (1) 2,997 Balance, September 30, 2023 $ (140,690) $ (136,899) $ (277,589) $ 1 $ (277,590) Three Months Ended September 30, 2022 Currency Employee Total Amount Total Balance, July 1, 2022 $ (155,847) $ (119,300) $ (275,147) $ - $ (275,147) Activity: Other comprehensive income (loss) before reclassifications (53,627) 8,786 (44,841) 1 (44,842) Adjustments for items reclassified to earnings, net of tax 138 1,162 1,300 - 1,300 Net other comprehensive income (loss) (53,489) 9,948 (43,541) 1 (43,542) Balance, September 30, 2022 $ (209,336) $ (109,352) $ (318,688) $ 1 $ (318,689) Nine Months Ended September 30, 2022 Currency Employee Total Amount Total Balance, January 1, 2022 $ (76,355) $ (132,680) $ (209,035) $ 2 $ (209,037) Activity: Other comprehensive income (loss) before reclassifications (133,246) 20,512 (112,734) (1) (112,733) Adjustments for items reclassified to earnings, net of tax 265 2,816 3,081 - 3,081 Net other comprehensive income (loss) (132,981) 23,328 (109,653) (1) (109,652) Balance, September 30, 2022 $ (209,336) $ (109,352) $ (318,688) $ 1 $ (318,689) The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and nine month periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Currency translation losses (a) $ 2,472 $ 138 $ 2,500 $ 265 Employee benefit plans: Amortization relating to employee benefit plans (b) $ 1,954 $ 1,395 5,051 3,564 Less - related income taxes 374 233 1,135 748 1,580 1,162 3,916 2,816 Total reclassifications, net of tax $ 4,052 $ 1,300 $ 6,416 $ 3,081 __________________________ (a) Represents currency translation losses reclassified from AOCI associated with closing of certain of our offices. Such amounts are included in “revenue—other” on the condensed consolidated statements of operations. (b) Included in the computation of net periodic benefit cost (see Note 13). Such amounts are included in “operating expenses—other” on the condensed consolidated statements of operations. Noncontrolling Interests —Noncontrolling interests principally represent (i) interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own, (ii) LGAC interests (see Note 1) and (iii) consolidated VIE interests held by employees (see Note 19). The tables below summarize net income (loss) attributable to noncontrolling interests for the three month and nine month periods ended September 30, 2023 and 2022 and noncontrolling interests as of September 30, 2023 and December 31, 2022 in the Company’s condensed consolidated financial statements: Net Income (Loss) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Edgewater $ 2,885 $ 18,209 $ 4,557 $ 28,715 LFI Consolidated Funds (3,251) (5,237) 3,718 (18,393) LGAC - 4,023 1,968 9,941 Other 2 1 2 2 Total $ (364) $ 16,996 $ 10,245 $ 20,265 Noncontrolling Interests as of September 30, December 31, Edgewater $ 45,371 $ 44,681 LFI Consolidated Funds - 74,164 LGAC - (10,714) Other 12 13 Total $ 45,383 $ 108,144 Redeemable Noncontrolling Interests —Redeemable noncontrolling interests principally represent LGAC interests as of December 31, 2022 (see Note 1) and consolidated VIE interests held by employees as of September 30, 2023 (see Note 19). Consolidated VIE interests held by employees (vested LFI awards), which may be redeemed at any time at |
INCENTIVE PLANS
INCENTIVE PLANS | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
INCENTIVE PLANS | INCENTIVE PLANS Share-Based Incentive Plan Awards A description of Lazard Ltd’s 2018 Plan, 2008 Incentive Compensation Plan (the “2008 Plan”) and 2005 Equity Incentive Plan (the “2005 Plan”) and activity with respect thereto during the three month and nine month periods ended September 30, 2023 and 2022 is presented below. Shares Available Under the 2018 Plan, 2008 Plan and 2005 Plan The 2018 Plan became effective on April 24, 2018 and was amended on April 29, 2021 to increase the aggregate number of shares authorized for issuance under the 2018 Plan by 20,000,000 shares. The 2018 Plan replaced the 2008 Plan, which was terminated on April 24, 2018. The 2018 Plan originally authorized issuance of up to 30,000,000 shares of common stock, plus any shares of common stock that were subject to outstanding awards under the 2008 Plan as of March 14, 2018 that are forfeited, canceled or settled in cash following April 24, 2018, which was the date that the 2018 Plan was approved by our shareholders. Such shares may be issued pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), restricted stock awards (“RSAs”), profits interest participation rights, including performance-based restricted participation units (“PRPUs”) and stock performance-based restricted participation units (“SPRPUs”), and other share-based awards. The 2008 Plan authorized the issuance of shares of common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs, PRSUs and other share-based awards. Under the 2008 Plan, the maximum number of shares available was based on a formula that limited the aggregate number of shares that could, at any time, be subject to awards that were considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of common stock. The 2008 Plan was terminated on April 24, 2018 although outstanding deferred stock unit (“DSU”) awards granted under the 2008 Plan before its termination continue to be subject to its terms. The 2005 Plan authorized the issuance of up to 25,000,000 shares of common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs and other share-based awards. The 2005 Plan expired in the second quarter of 2015, although outstanding DSU awards granted under the 2005 Plan before its expiration 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, RSAs and profits interest participation rights, including PRPUs and SPRPUs) and “professional services” expense (with respect to DSUs) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Share-based incentive awards: RSUs $ 41,085 $ 37,061 $ 136,772 $ 98,012 PRSUs 569 498 1,920 1,387 RSAs 5,742 6,420 21,117 19,197 Profits interest participation rights 10,815 30,762 48,077 80,454 DSUs 75 88 872 1,026 Total $ 58,286 $ 74,829 $ 208,758 $ 200,076 Compensation and benefits expense relating to share-based awards with service and/or performance conditions is reversed if the awards are forfeited due to these conditions not being met. Compensation and benefits expense relating to share-based awards with market conditions is not reversed if these awards are forfeited based solely on failing to meet such market conditions. 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 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. 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 common stock (unless the recipient is then eligible for retirement under the Company’s retirement policy) and convert into shares of common stock on a one-for-one basis after the stipulated vesting periods. The grant date fair value of the RSUs, net of an estimated forfeiture rate, is amortized over the 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 the applicable vesting period, each RSU is attributed additional RSUs equivalent to any dividends paid on common stock during such period. During the nine month period ended September 30, 2023, dividend participation rights required the issuance of 515,420 RSUs. Non-executive members of the Board of Directors of Lazard Group, who are the same Non-Executive Directors of Lazard Ltd (“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 43,999 DSUs being granted during the nine month period ended September 30, 2023. 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 common stock at the time of cessation of service to the Board of Directors. DSUs include a cash dividend participation right equivalent to dividends paid on common stock. Lazard Ltd’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 common stock on the date immediately preceding the date of the grant. During the nine month period ended September 30, 2023, 14,415 DSUs 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 nine month period ended September 30, 2023: RSUs DSUs Units Weighted Units Weighted Balance, January 1, 2023 9,022,917 $ 37.97 400,820 $ 37.66 Granted (including 515,420 RSUs relating to dividend participation) 5,496,350 $ 36.51 58,414 $ 29.87 Forfeited (127,546) $ 33.34 - $ - Settled (3,359,950) $ 41.65 (134,744) $ 36.21 Balance, September 30, 2023 11,031,771 $ 36.17 324,490 $ 36.86 The weighted-average grant date fair value of RSUs granted in the nine month periods ended September 30, 2023 and 2022 was $36.51 and $33.64, respectively. The weighted-average grant date fair value of DSUs granted in the nine month periods ended September 30, 2023 and 2022 was $29.87 and $35.53, respectively. In connection with RSUs that settled during the nine month period ended September 30, 2023, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,204,403 shares of common stock during such nine month period. Accordingly, 2,155,547 shares of common stock held by the Company were delivered during the nine month period ended September 30, 2023. As of September 30, 2023, estimated unrecognized RSU compensation expense was $156,284, with such expense expected to be recognized over a weighted average period of approximately 1.0 year subsequent to September 30, 2023. RSAs The following is a summary of activity related to RSAs associated with compensation arrangements during the nine month period ended September 30, 2023: RSAs Weighted Balance, January 1, 2023 1,266,424 $ 36.99 Granted (including 71,900 relating to dividend participation) 646,979 $ 37.65 Forfeited (12,447) $ 38.35 Settled (660,282) $ 39.27 Balance, September 30, 2023 1,240,674 $ 36.10 The weighted-average grant date fair value of RSAs granted in the nine month periods ended September 30, 2023 and 2022 was $37.65 and $33.31, respectively. In connection with RSAs that settled during the nine month period ended September 30, 2023, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 268,402 shares of common stock during such nine month period. Accordingly, 391,880 shares of common stock held by the Company were delivered during the nine month period ended September 30, 2023. RSAs granted in 2023 generally include a dividend participation right that provides that during the applicable vesting period each RSA is attributed additional RSAs equivalent to any dividends paid on common stock during such period. During the nine month period ended September 30, 2023, dividend participation rights required the issuance of 71,900 RSAs. At September 30, 2023, estimated unrecognized RSAs expense was $20,050, with such expense to be recognized over a weighted average period of approximately 0.9 years subsequent to September 30, 2023. PRSUs PRSUs are RSUs that are subject to performance-based and service-based vesting conditions, and beginning with awards granted in February 2021, a market-based condition. The number of shares of common stock that a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance-based and market-based metrics that relate to Lazard Ltd’s performance over a three-year period. The target number of shares of common stock subject to each PRSU is one; however, based on the achievement of both the performance-based and market-based criteria, the number of shares of common stock that may be received will range from zero to 2.4 times the target number. PRSUs will vest on a single date approximately three years following the date of the grant, provided the applicable service and performance conditions are satisfied. PRSUs include dividend participation rights that are subject to the same vesting restrictions (including performance criteria) as the underlying PRSUs to which they relate and are settled in cash at the same rate that dividends are paid on common stock. The following is a summary of activity relating to PRSUs during the nine month period ended September 30, 2023: PRSUs Weighted Balance, January 1, 2023 94,690 $ 39.27 Balance, September 30, 2023 94,690 $ 39.27 The weighted-average grant date fair value of PRSUs granted in the nine month period ended September 30, 2022 was $35.44. Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of 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 September 30, 2023, the total estimated unrecognized compensation expense was $1,754, and the Company expects to amortize such expense over a weighted-average period of approximately 0.5 years subsequent to September 30, 2023. Profits Interest Participation Rights Profits interest participation rights are equity incentive awards that, subject to certain conditions, may be exchanged for shares of common stock pursuant to the 2018 Plan. The Company has granted profits interest participation rights subject to service-based and performance-based vesting criteria and other conditions, and beginning in February 2021, incremental market-based vesting criteria, which we refer to as performance-based restricted participation units (“PRPUs”), to certain of our executive officers. The Company has also granted profits interest participation rights subject to service-based vesting criteria and other conditions, but not the performance-based and incremental market-based vesting criteria associated with PRPUs, to a limited number of other senior employees, including in March 2023 to certain of our executive officers. In August 2023, the Company granted profits interest participation rights, SPRPUs, to certain of our executive officers that are eligible to vest in three tranches, each subject to service-based vesting criteria and the achievement of specified common stock price milestones measured as of a specified anniversary of the grant date. Profits interest participation rights, with the exception of SPRPUs, as explained below, generally provide for vesting approximately three years following the grant date, so long as applicable conditions have been satisfied. Profits interest participation rights are a class of membership interests in the Company that are intended to qualify as “profits interests” for U.S. federal income tax purposes, and are recorded within members’ equity in the Company’s condensed consolidated statements of financial condition. The profits interest participation rights generally allow the recipient to realize value only to the extent that (i) the service-based vesting conditions and, if applicable, the performance-based and incremental market-based conditions, or stock price milestones, are satisfied, and (ii) an amount of economic appreciation in the assets of the Company occurs as necessary to satisfy certain partnership tax rules (referred to as the “Minimum Value Condition”), otherwise the profits interest participation rights will be forfeited. Upon satisfaction of such conditions, profits interest participation rights that are in parity with the value of common stock will be exchanged on a one-for-one basis for shares of common stock. If forfeited based solely on failing to meet the Minimum Value Condition, or, if applicable, stock price milestones, the associated compensation expense would not be reversed. With regard to the profits interest participation rights granted in February 2020, the Minimum Value Condition was met during the year ended December 31, 2021. On March 8, 2023, the profits interest participation rights granted in February 2020, for which the Minimum Value Condition and other vesting conditions were satisfied, were exchanged on a one-for-one basis for shares of common stock. Like outstanding RSUs and similar awards, profits interest participation rights are subject to continued employment and other conditions and restrictions and are forfeited if those conditions and restrictions are not fulfilled. More specifically, vesting of profits interest participation rights are subject to compliance with restrictive covenants including non-compete, non-solicitation of clients, no hire of employees and confidentiality, which are similar to those applicable to PRSUs and RSUs. In addition, profits interest participation rights must satisfy the Minimum Value Condition. The number of shares of common stock that a recipient will receive upon the exchange of a PRPU award is calculated by reference to applicable performance-based conditions and, beginning with PRPUs granted in 2021, incremental market-based conditions and only result in value to the recipient to the extent the conditions are satisfied. The target number of shares of common stock subject to each PRPU is one. Based on the achievement of performance criteria, as determined by the Compensation Committee, the number of shares of common stock that may be received in connection with the PRPU awards granted prior to February 2021 will range from zero to two times the target number. For the PRPU awards granted beginning in February 2021, subject to both performance-based and incremental market-based criteria, the number of shares that may be received will range from zero to 2.4 times the target number. Unless applicable conditions are satisfied during the three year performance period, and the Minimum Value Condition is satisfied within five years following the grant date, all PRPUs will be forfeited, and the recipients will not be entitled to any such awards. SPRPUs are eligible to vest in three tranches (each, a “Tranche”) based on the achievement of service conditions and Tranche-specific common stock price milestones measured as of a specified anniversary of the date of grant, as described below. Their aggregate fair value at the grant date, which based on the estimated probability of achieving the common stock price milestones is approximately $33,900, is amortized over the requisite service periods. SPRPUs will vest: • 20% if, three years following the date of grant, Lazard Ltd’s common stock price has appreciated 25% above the average trailing 30 consecutive day stock price preceding the date of grant (the “Grant Date Stock Price”); • 40% if, five years following the date of grant, Lazard Ltd’s common stock price has appreciated 50% above the Grant Date Stock Price; • and the remainder of the SPRPUs will vest if, seven years following the date of grant, the Lazard Ltd’s common stock price has appreciated 100% above the Grant Date Stock Price. Each Tranche is subject to the executive’s continued employment through the applicable anniversary of the date of grant and requires that the applicable common stock price milestone is sustained for any 30 consecutive day period prior to the anniversary of the date of grant of the applicable Tranche (the “Expiration Date”). If the vesting conditions, as described above, are not achieved as of the Expiration Date, all SPRPUs in such Tranche will be forfeited. The following is a summary of activity relating to all profits interest participation rights, including PRPUs and SPRPUs, during the nine month period ended September 30, 2023: Profits Interest Participation Rights Weighted Balance, January 1, 2023 4,131,628 $ 40.15 Granted 3,488,074 $ 22.47 Forfeited (16,695) $ 43.23 Settled (1,521,620) $ 42.17 Balance, September 30, 2023 (a) 6,081,387 $ 29.50 __________________________ (a) Table includes 1,474,002 PRPUs and 2,250,000 SPRPUs as of September 30, 2023. This includes 2,447,224 PRPUs as of January 1, 2023, net of 973,222 PRPUs settled and 2,250,000 SPRPUs granted during the nine month period ended September 30, 2023. The balance as of September 30, 2023 reflects the target number of PRPUs granted in February 2021 and March 2022. There were no PRPUs granted during the nine month period ended September 30, 2023. The weighted average grant date fair values for PRPUs and other profits interest participation rights outstanding as of January 1, 2023 were $40.29 and $39.96, respectively. The weighted average grant date fair values for SPRPUs and other profits interest participation rights granted during the nine month period ended September 30, 2023 was $15.06 and $35.94, respectively. The weighted average grant date fair values for other profits interest participation rights forfeited during the nine month period ended September 30, 2023 was $43.23. The weighted average grant date fair values for PRPUs and other profits interest participation rights settled during the nine month period ended September 30, 2023 were $41.76 and $42.89, respectively. The weighted average grant date fair values for PRPUs, SPRPUs and other profits interest participation rights outstanding as of September 30, 2023 were $39.31, $15.06 and $37.14, respectively. The weighted average grant date fair value of profits interest participation rights, including PRPUs and SPRPUs, granted in the nine month periods ended September 30, 2023 and 2022 was $22.47 and $34.53, respectively. Compensation expense recognized for profits interest participation rights, including PRPUs, is determined by multiplying the number of shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. Compensation expense recognized for SPRPUs is determined by multiplying the number of shares of common stock underlying such awards by the grant date fair value. As of September 30, 2023, the total estimated unrecognized compensation expense of all profits interest participation rights, including PRPUs and SPRPUs was $57,590 and the Company expects to amortize such expense over a weighted-average period of approximately 1.9 years subsequent to September 30, 2023. LFI and Other Similar Deferred Compensation Arrangements In connection with LFI and other similar deferred compensation arrangements, granted to eligible employees, 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 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 nine month period ended September 30, 2023: Prepaid Compensation Balance, January 1, 2023 $ 112,124 $ 326,282 Granted 159,981 159,981 Settled - (167,526) Amortization and the impact of forfeitures (126,169) 7,285 Change in fair value of underlying investments - 15,530 Other 109 (969) Balance, September 30, 2023 $ 146,045 $ 340,583 The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.9 years subsequent to September 30, 2023. 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 and nine month periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Amortization and the impact of forfeitures $ 41,368 $ 41,956 $ 133,454 $ 125,210 Change in the fair value of underlying investments (10,598) (16,180) 15,530 (65,601) Total $ 30,770 $ 25,776 $ 148,984 $ 59,609 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 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”). The Company also offers defined contribution plans to its employees. The pension 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 for the service cost component, and “operating expenses — other” for the other components of benefit costs 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. 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 pension plans for the three month and nine month periods ended September 30, 2023 and 2022: Pension Plans Three Months Ended September 30, 2023 2022 Components of Net Periodic Benefit Cost (Credit): Service cost $ 74 $ 116 Interest cost 5,322 2,642 Expected return on plan assets (6,068) (5,808) Amortization of: Prior service cost 28 25 Net actuarial loss 1,926 1,370 Settlement loss 791 380 Net periodic benefit cost (credit) $ 2,073 $ (1,275) Pension Plans Nine Months Ended September 30, 2023 2022 Components of Net Periodic Benefit Cost (Credit): Service cost $ 256 $ 386 Interest cost 15,746 8,459 Expected return on plan assets (17,916) (18,627) Amortization of: Prior service cost 81 80 Net actuarial loss (gain) 4,970 3,484 Settlement loss 2,333 1,223 Net periodic benefit cost (credit) $ 5,470 $ (4,995) |
COST-SAVING INITIATIVES
COST-SAVING INITIATIVES | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
COST-SAVING INITIATIVES | COST-SAVING INITIATIVESThe Company is conducting firm-wide cost-saving initiatives over the course of 2023. Expenses and losses associated with the cost-saving initiatives for the three month and nine month periods ended September 30, 2023 consisted of the following: Three Months Ended September 30, 2023 Financial Advisory Asset Management Corporate Total Severance and other employee $ (529) $ 4,190 $ 4,772 $ 8,433 Technology asset impairments 56 515 - 571 Foreign exchange related losses 2,507 - 2,483 4,990 Other 1,469 28 42 1,539 Total $ 3,503 $ 4,733 $ 7,297 $ 15,533 Nine Months Ended September 30, 2023 Financial Advisory Asset Management Corporate Total Severance and other employee $ 86,254 $ 44,958 $ 31,309 $ 162,521 Technology asset impairments 144 7,812 - 7,956 Foreign exchange related losses 2,507 - 2,483 4,990 Other 1,991 308 1,952 4,251 Total $ 90,896 $ 53,078 $ 35,744 $ 179,718 Activity related to the obligations pursuant to the cost-saving initiatives during the nine month period ended September 30, 2023 was as follows: Accrued Compensation and Benefits Other Total Balance, January 1, 2023 $ - $ - $ - Total expenses 162,521 17,197 179,718 Less: Noncash expenses (a) 30,050 11,069 41,119 Payments and settlements 71,446 4,825 76,271 Balance, September 30, 2023 $ 61,025 $ 1,303 $ 62,328 ___________________________________ (a) Noncash expenses reflected in “accrued compensation and benefits” activity principally represents accelerated amortization of deferred incentive compensation awards. Noncash expenses reflected in “other” activity principally relates to technology asset impairments and certain foreign exchange related losses. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Although a portion of Lazard Group’s income is subject to U.S. federal income taxes, Lazard Group primarily operates in the U.S. as a limited liability company that is treated as a partnership for U.S. federal income tax purposes. As a result, Lazard Group’s income from its U.S. operations is generally not subject to U.S. federal income taxes because such income is attributable to its partners. Lazard Group, 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.The Company recorded income tax provision (benefit) of $(29,374) and $67,405 for the three month and nine month periods ended September 30, 2023, respectively, and $20,535 and $55,533 for the three month and nine month periods ended September 30, 2022, respectively, representing effective tax rates of 2,363.2%, (37.3)%, 12.9% and 12.4%, respectively. The difference between the U.S. federal statutory rate of 21.0% and the effective tax rates reflected above principally relates to (i) Lazard Group primarily operating as a limited liability company in the U.S., (ii) taxes payable to foreign jurisdictions, (iii) the tax impact of differences in the value of share based incentive compensation and other discrete items, (iv) change in the valuation allowance affecting the provision for income taxes and (v) U.S. state and local taxes, which are incremental to the U.S. federal statutory tax rate. |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | 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-based incentive fees for providing such services. Investment advisory fees relating to such services were $135,899 and $405,269 for the three month and nine month periods ended September 30, 2023, respectively, and $159,749 and $458,462 for the three month and nine month periods ended September 30, 2022, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $57,040 and $57,283 remained as receivables at September 30, 2023 and December 31, 2022, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition. Other See Note 11 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers. |
REGULATORY AUTHORITIES
REGULATORY AUTHORITIES | 9 Months Ended |
Sep. 30, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY AUTHORITIES | 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 $5, whichever is greater. In addition, the ratio of aggregate indebtedness (as defined) to net capital may not exceed 15:1. At September 30, 2023, LFNY’s regulatory net capital was $73,105, which exceeded the minimum requirement by $69,493. LFNY’s aggregate indebtedness to net capital ratio was 0.74:1 as of September 30, 2023. 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 September 30, 2023, the aggregate regulatory net capital of the U.K. Subsidiaries was $174,572, which exceeded the minimum requirement by $111,142. 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 (asset management) and other clients, and asset-liability management. The investment services activities exercised through LFB and other subsidiaries of CFLF, primarily LFG, also are subject to regulation and supervision by the Autorité des Marchés Financiers. At June 30, 2023, the consolidated regulatory net capital of CFLF was $154,143, which exceeded the minimum requirement set for regulatory capital levels by $68,939. 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 June 30, 2023, the regulatory net capital of the combined European regulated group was $180,261, which exceeded the minimum requirement set for regulatory capital levels by $86,449. 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 September 30, 2023, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $141,320, which exceeded the minimum required capital by $114,703. At September 30, 2023, each of these subsidiaries individually was in compliance with its regulatory capital requirements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 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. 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 and nine month periods ended September 30, 2023 and 2022 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 records other revenue, 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 Nine Months Ended 2023 2022 2023 2022 Financial Advisory Net Revenue $ 266,156 $ 453,084 $ 895,313 $ 1,248,926 Operating Expenses 294,848 337,025 1,057,506 947,466 Operating Income (Loss) $ (28,692) $ 116,059 $ (162,193) $ 301,460 Asset Management Net Revenue $ 284,855 $ 298,797 $ 857,212 $ 926,449 Operating Expenses 232,011 233,614 749,281 707,676 Operating Income $ 52,844 $ 65,183 $ 107,931 $ 218,773 Corporate Net Revenue (Loss) $ (26,516) $ (28,000) $ (42,747) $ (118,646) Operating Expenses (Credit) (1,121) (6,475) 83,802 (47,594) Operating Loss $ (25,395) $ (21,525) $ (126,549) $ (71,052) Total Net Revenue $ 524,495 $ 723,881 $ 1,709,778 $ 2,056,729 Operating Expenses 525,738 564,164 1,890,589 1,607,548 Operating Income (Loss) $ (1,243) $ 159,717 $ (180,811) $ 449,181 As Of September 30, 2023 December 31, 2022 Total Assets Financial Advisory $ 1,013,299 $ 1,074,278 Asset Management 828,890 978,083 Corporate 2,023,662 3,409,438 Total $ 3,865,851 $ 5,461,799 |
CONSOLIDATED VIEs
CONSOLIDATED VIEs | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
CONSOLIDATED VIEs | CONSOLIDATED VIEs The Company’s consolidated VIEs as of September 30, 2023 and December 31, 2022 include LGAC (see Note 1) and certain funds (“LFI Consolidated Funds”) that were established for the benefit of employees participating in the Company’s existing LFI deferred compensation arrangement. Lazard invests in these funds and is the investment manager and is therefore deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds. The assets of LFI Consolidated Funds, except as it relates to $112,773 and $115,666 of LFI held by Lazard Group as of September 30, 2023 and December 31, 2022, respectively, can only be used to settle the obligations of LFI Consolidated Funds. The Company’s consolidated VIE assets and liabilities for LFI Consolidated Funds as reflected in the condensed consolidated statements of financial condition consist of the following at September 30, 2023 and December 31, 2022. September 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 3,224 $ 3,644 Customers and other receivables 1,789 240 Investments 190,511 186,300 Other assets 737 622 Total assets $ 196,261 $ 190,806 LIABILITIES Deposits and other customer payables $ 1,307 $ 528 Other liabilities 400 448 Total liabilities $ 1,707 $ 976 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 28,495 | $ 122,186 | $ (258,461) | $ 373,383 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization The accompanying condensed consolidated financial statements are those of Lazard Group LLC and its subsidiaries (collectively referred to as “Lazard Group”, “we” or the “Company”). Lazard Group is a Delaware limited liability company, which as of December 31, 2022 was governed by an Amended and Restated Operating Agreement dated as of February 4, 2019. Such operating agreement was subsequently amended and restated effective as of January 1, 2023 (as so amended and restated the “Operating Agreement”). Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”), including its indirect investment in Lazard Group, is one of the world’s preeminent financial advisory and asset management firms that specializes 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 September 30, 2023 and December 31, 2022. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group. Lazard Group’s 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 strategic and mergers and acquisitions (“M&A”) advisory, capital markets advisory, shareholder advisory, restructuring and liability management sovereign advisory, geopolitical advisory, and other strategic advisory matters and capital raising and placement, and • Asset Management, which offers a broad range of global investment solutions and investment and wealth 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 certain assets and liabilities associated with (i) Lazard Group’s Paris-based subsidiary, Lazard Frères Banque SA (“LFB”), and (ii) in 2022, a special purpose acquisition company that was sponsored by an affiliate of the Company, Lazard Growth Acquisition Corp. I (“LGAC”). |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Lazard Group 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 Group’s Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying December 31, 2022 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 that 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 condensed consolidated 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 estimated annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates. The consolidated results of operations for the three month and nine month periods ended September 30, 2023 are not indicative of the results to be expected for any future interim or annual period. The condensed consolidated financial statements include 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 (see Note 19). 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 losses or (ii) elects the option to measure its investment at fair value. Intercompany transactions and balances have been eliminated. |
Revenue Recognition | The Company disaggregates revenue based on its business segment results and believes that the following information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net Revenue: Financial Advisory (a) $ 266,156 $ 453,084 $ 895,313 $ 1,248,926 Asset Management: Management fees and other (b) $ 282,657 $ 277,202 $ 843,590 $ 872,351 Incentive fees (c) 2,198 21,595 13,622 54,098 Total Asset Management $ 284,855 $ 298,797 $ 857,212 $ 926,449 ___________________________________ (a) Financial Advisory is comprised of a wide array of financial advisory services regarding M&A advisory, capital markets advisory, shareholder advisory, restructuring and liability management, sovereign advisory, geopolitical advisory, and other strategic advisory and capital raising and placement work for clients. The benefits of these advisory services are generally transferred to the Company’s clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events. (b) Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of fund interests is a separate performance obligation within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed. (c) Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks. |
Receivables and Allowance for Credit Losses | The Company’s receivables represent fee receivables, amounts due from customers and other receivables and amounts due from Lazard Ltd subsidiaries. Where applicable, receivables are stated net of an estimated allowance for credit losses determined in accordance with the current expected credit losses (“CECL”) model, for general credit risk of the overall portfolio and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute. |
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 debt is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. 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 interests 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 based on the publicly reported closing price for the fund, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. The fair value of investments in certain private equity funds is classified as Level 3 for (i) certain investments that are valued based on the potential transaction value and (ii) when the acquisition price is considered the best measure of fair value. 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 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 fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. The fair value of derivatives entered into by the Company and classified as Level 1 is based on the listed market price of such instruments. The fair value of derivatives entered into by the Company and classified as Level 2 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 Net Asset Value (“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. |
Derivatives | Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the condensed consolidated statements of financial condition where the Company has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the condensed consolidated statements of financial condition, and those derivative assets and liabilities are shown separately in the table below. In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition. |
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. Management also evaluates from time to time whether to make voluntary contributions to the plans. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
Schedule of Revenue Based on Business Segment Results | The Company disaggregates revenue based on its business segment results and believes that the following information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net Revenue: Financial Advisory (a) $ 266,156 $ 453,084 $ 895,313 $ 1,248,926 Asset Management: Management fees and other (b) $ 282,657 $ 277,202 $ 843,590 $ 872,351 Incentive fees (c) 2,198 21,595 13,622 54,098 Total Asset Management $ 284,855 $ 298,797 $ 857,212 $ 926,449 ___________________________________ (a) Financial Advisory is comprised of a wide array of financial advisory services regarding M&A advisory, capital markets advisory, shareholder advisory, restructuring and liability management, sovereign advisory, geopolitical advisory, and other strategic advisory and capital raising and placement work for clients. The benefits of these advisory services are generally transferred to the Company’s clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events. (b) Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of fund interests is a separate performance obligation within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed. (c) Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks. |
RECEIVABLES AND ALLOWANCE FOR_2
RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Activity in Allowance for Credit Losses | Three Months Ended Nine Months Ended 2023 2022 2023 2022 Beginning Balance $ 27,095 $ 30,269 $ 17,737 $ 33,955 Bad debt expense (credit), net of reversals 2,267 (457) 13,287 (999) Charge-offs, foreign currency translation and other adjustments (8,281) (15,516) (9,943) (18,660) Ending Balance $ 21,081 $ 14,296 $ 21,081 $ 14,296 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Schedule of Investments [Abstract] | |
Schedule of Investments and Securities Sold, not yet Purchased | The Company’s investments consist of the following at September 30, 2023 and December 31, 2022: September 30, December 31, Debt $ 4,481 $ - Equities 40,659 43,889 Funds: Alternative investments (a) 60,210 56,947 Debt (a) 183,790 178,556 Equity (a) 324,239 350,282 Private equity 44,501 53,822 612,740 639,607 Investments, at fair value 657,880 683,496 Equity method investments - 15,481 Total investments $ 657,880 $ 698,977 ___________________________________ (a) Interests in alternative investment funds, debt funds and equity funds include investments, including those held by LFI Consolidated Funds (see Note 19), with fair values of $27,145, $168,624 and $262,223, respectively, at September 30, 2023 and $24,137, $142,632 and $266,528, respectively, at December 31, 2022, held in order to satisfy the Company’s obligation 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 interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12). |
Schedule of Equity Securities and Trading Debt Securities Net Unrealized Investment Gains and Losses | During the three month and nine month periods ended September 30, 2023 and 2022, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to equity securities and trading debt securities still held as of the reporting date as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net unrealized investment gains (losses) $ (23,879) $ (31,093) $ 14,551 $ (134,091) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present, as of September 30, 2023 and December 31, 2022, 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: September 30, 2023 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Debt $ 3,524 $ 957 $ - $ - $ 4,481 Equities 40,119 - 540 - 40,659 Funds: Alternative investments 15,534 - - 44,676 60,210 Debt 173,546 10,240 - 4 183,790 Equity 324,197 - - 42 324,239 Private equity - - 261 44,240 44,501 Derivatives - 3,678 - - 3,678 Total $ 556,920 $ 14,875 $ 801 $ 88,962 $ 661,558 Liabilities: Securities sold, not yet purchased $ 1,724 $ - $ - $ - $ 1,724 Contingent consideration liability - - 6,503 - 6,503 Derivatives - 342,483 - - 342,483 Total $ 1,724 $ 342,483 $ 6,503 $ - $ 350,710 December 31, 2022 Level 1 Level 2 Level 3 NAV Total Assets: Investments: Equities $ 43,243 $ - $ 646 $ - $ 43,889 Funds: Alternative investments 27,073 - - 29,874 56,947 Debt 178,552 - - 4 178,556 Equity 350,242 - - 40 350,282 Private equity - - 18,772 35,050 53,822 Derivatives - 14,554 - - 14,554 Total $ 599,110 $ 14,554 $ 19,418 $ 64,968 $ 698,050 Liabilities: Securities sold, not yet purchased $ 4,651 $ - $ - $ - $ 4,651 Derivatives 115 327,045 - - 327,160 Total $ 4,766 $ 327,045 $ - $ - $ 331,811 |
Schedule 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 and nine month periods ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 Beginning Balance Net Unrealized/ Purchases/ Sales/ Foreign Ending Assets: Investments: Equities $ 642 $ (95) $ - $ - $ (7) $ 540 Private equity funds 268 - - - (7) 261 Total Level 3 assets $ 910 $ (95) $ - $ - $ (14) $ 801 Liabilities: Contingent consideration liability $ 6,422 $ 81 $ - $ - $ - $ 6,503 Total Level 3 liabilities $ 6,422 $ 81 $ - $ - $ - $ 6,503 Nine Months Ended September 30, 2023 Beginning Net Unrealized/ Purchases/Acquisitions/ Sales/ Foreign Ending Assets: Investments: Equities $ 646 $ (81) $ - $ - $ (25) $ 540 Private equity funds 18,772 - - (18,508) (3) 261 Total Level 3 assets $ 19,418 $ (81) $ - $ (18,508) $ (28) $ 801 Liabilities: Contingent consideration liability (c) $ - $ 194 $ 7,754 $ (1,445) $ - $ 6,503 Total Level 3 liabilities $ - $ 194 $ 7,754 $ (1,445) $ - $ 6,503 Three Months Ended September 30, 2022 Beginning Net Unrealized/ Purchases/ Sales/ Foreign Ending Assets: Investments: Equities $ 542 $ 28 $ - $ - $ (41) $ 529 Private equity funds 256 - - - (16) 240 Total Level 3 assets $ 798 $ 28 $ - $ - $ (57) $ 769 Nine Months Ended September 30, 2022 Beginning Net Unrealized/ Purchases/ Sales/ Foreign Ending Assets: Investments: Equities $ 578 $ 35 $ - $ - $ (84) $ 529 Private equity funds 293 - - (13) (40) 240 Total Level 3 assets $ 871 $ 35 $ - $ (13) $ (124) $ 769 __________________________________ (a) Earnings recorded in “other revenue” for investments in Level 3 assets for the three month and nine month periods ended September 30, 2023 and 2022 include net unrealized gains (losses) of $(76), $(62), $28 and $35, respectively. Unrealized losses of $81 and $194 were recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month and nine month periods ended September 30, 2023. (b) Transfers out of Level 3 private equity funds in the nine month period ended September 30, 2023 reflect investments valued at NAV as of September 30, 2023. (c) For the nine month period ended September 30, 2023, acquisitions represent the initial recognition of the contingent consideration liability (noncash transaction), and settlements represent aggregate cash and noncash settlement of contingent consideration after the acquisition date. |
Schedule of Fair Value of Certain Investments Based on NAV | The following tables present, at September 30, 2023 and December 31, 2022, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value: September 30, 2023 Investments Redeemable NAV Unfunded Commitments % of Redemption Frequency Redemption Notice Period Alternative investment funds: Hedge funds $ 44,022 $ - NA (a) 30-60 days Other 654 - NA (b) <30-30 days Debt funds 4 - NA (c) <30 days Equity funds 42 - NA (d) <30-60 days Private equity funds: Equity growth 44,240 5,547 (e) 100 % (f) NA NA Total $ 88,962 $ 5,547 ___________________________________ (a) monthly (73%) and quarterly (27%) (b) daily (5%) and monthly (95%) (c) daily (100%) (d) monthly (33%) and annually (67%) (e) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $10,206 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. (f) Distributions from each fund will be received as the underlying investments of the funds are liquidated. December 31, 2022 Investments Redeemable NAV Unfunded % of Redemption Redemption Alternative investment funds: Hedge funds $ 29,259 $ - NA (a) 30-60 days Other 615 - NA (b) <30-30 days Debt funds 4 - NA (c) <30 days Equity funds 40 - NA (d) <30-60 days Private equity funds: Equity growth 35,050 5,455 (e) 100 % (f) NA NA Total $ 64,968 $ 5,455 ___________________________________ (a) monthly (68%) and quarterly (32%) (b) daily (5%) and monthly (95%) (c) daily (100%) (d) monthly (35%) and annually (65%) (e) Unfunded commitments to private equity investments consolidated but not owned by Lazard of $8,003 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. (f) Distributions from each fund will be received as the underlying investments of the funds are liquidated. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition | The tables below present 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 September 30, 2023 and December 31, 2022. Notional amounts provide an indication of the volume of the Company's derivative activity. Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the condensed consolidated statements of financial condition where the Company has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the condensed consolidated statements of financial condition, and those derivative assets and liabilities are shown separately in the table below. In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition. September 30, 2023 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 1,985 $ 151,496 $ 1,979 $ 207,558 Total return swaps and other 4,042 79,756 2,270 54,754 LFI and other similar deferred compensation arrangements - - 340,583 357,133 Total gross derivatives 6,027 $ 231,252 344,832 $ 619,445 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts (79) (83) Total return swaps and other (2,270) (2,265) Net derivatives in "other assets" and "other liabilities" 3,678 342,484 Amounts not netted (a): Cash collateral - (1,692) Securities collateral - - $ 3,678 $ 340,792 December 31, 2022 Derivative Assets Derivative Liabilities Fair Value Notional Fair Value Notional Forward foreign currency exchange rate contracts $ 1,356 $ 170,103 $ 921 $ 128,098 Total return swaps and other 13,427 155,026 72 1,398 LGAC Warrants - - 115 11,500 LFI and other similar deferred compensation arrangements - - 326,282 338,126 Total gross derivatives 14,783 $ 325,129 327,390 $ 479,122 Counterparty and cash collateral netting: Forward foreign currency exchange rate contracts (157) (158) Total return swaps and other (72) (72) Net derivatives in "other assets" and "other liabilities" 14,554 327,160 Amounts not netted (a): Cash collateral - - Securities collateral - - $ 14,554 $ 327,160 ___________________________________ (a) Amounts are subject to master netting arrangements but do not meet the criteria for netting on the condensed consolidated statements of financial condition under U.S. GAAP. For some counterparties, the collateral amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the total amount reported is limited to the net derivative assets and net derivative liabilities balances with that counterparty. |
Schedule of Net Gains and (Losses) With Respect To Derivative Instruments (Including Derivatives Not Designed As Hedging Instruments) | Net gains (losses) with respect to derivative instruments (included 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 and nine month periods ended September 30, 2023 and 2022, were as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Forward foreign currency exchange rate contracts $ (984) $ 2,650 $ (1,684) $ 8,260 LFI and other similar deferred compensation arrangements 10,598 16,180 (15,530) 65,601 LGAC Warrants - 2,300 115 9,430 Total return swaps and other 6,523 7,177 (4,907) 32,676 Total $ 16,137 $ 28,307 $ (22,006) $ 115,967 |
PROPERTY, NET (Tables)
PROPERTY, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property | At September 30, 2023 and December 31, 2022, property consisted of the following: Estimated September 30, December 31, Buildings 33 $ 163,900 $ 135,103 Leasehold improvements 3-20 224,556 207,285 Furniture and equipment 3-10 232,150 235,684 Construction in progress 13,269 65,560 Total 633,875 643,632 Less - Accumulated depreciation and amortization 404,280 393,595 Property, net $ 229,595 $ 250,037 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Components of Goodwill and Other Intangible Assets | The components of goodwill and other intangible assets at September 30, 2023 and December 31, 2022 are presented below: September 30, December 31, Goodwill $ 373,009 $ 356,369 Other intangible assets (net of accumulated amortization) 45 90 $ 373,054 $ 356,459 |
Schedule Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2023 and 2022 are as follows: Nine Months Ended 2023 2022 Balance, January 1 $ 356,369 $ 357,187 Acquisition of business 16,729 - Foreign currency translation adjustments (89) (1,956) Balance, September 30 $ 373,009 $ 355,231 |
SENIOR DEBT (Tables)
SENIOR DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Debt | Senior debt is comprised of the following as of September 30, 2023 and December 31, 2022: Outstanding as of September 30, 2023 December 31, 2022 Initial Maturity Annual Principal Unamortized Carrying Principal Unamortized Carrying Lazard Group $ 400,000 2/13/25 3.75 % $ 400,000 $ 649 $ 399,351 $ 400,000 $ 1,003 $ 398,997 Lazard Group 300,000 3/1/27 3.625 % 300,000 1,333 298,667 300,000 1,625 298,375 Lazard Group 500,000 9/19/28 4.50 % 500,000 4,225 495,775 500,000 4,864 495,136 Lazard Group 500,000 3/11/29 4.375 % 500,000 4,214 495,786 500,000 4,794 495,206 Total $ 1,700,000 $ 10,421 $ 1,689,579 $ 1,700,000 $ 12,286 $ 1,687,714 __________________________ (a) The effective interest rates of Lazard Group’s 3.75% senior notes due February 13, 2025 (the “2025 Notes”), Lazard Group’s 3.625% senior notes due March 1, 2027 (the “2027 Notes”), Lazard Group’s 4.50% senior notes due September 19, 2028 (the “2028 Notes”) and Lazard Group’s 4.375% senior notes due March 11, 2029 (the “2029 Notes”) are 3.87%, 3.76%, 4.67% and 4.53%, respectively. |
MEMBERS_ EQUITY AND REDEEMABL_2
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Share Repurchase Authorized by Board of Directors | Share Repurchase Program —Since 2021 and through the nine month period ended September 30, 2023, the Board of Directors of Lazard authorized the repurchase of common stock as set forth in the table below: Date Repurchase Expiration April 2021 $ 300,000 December 31, 2022 February 2022 $ 300,000 December 31, 2024 July 2022 $ 500,000 December 31, 2024 |
Schedule of Shares Repurchased Under the Share Repurchase Program | The Company expects that the share repurchase program will continue to be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2018 Incentive Compensation Plan, as amended (the “2018 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 period to period due to a variety of factors. Purchases with respect to such program are set forth in the table below: Nine Months Ended September 30: Number of Average 2022 17,249,880 $ 35.49 2023 2,782,662 $ 36.67 |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax —The tables below reflect the balances of each component of AOCI at September 30, 2023 and 2022 and activity during the three month and nine month periods then ended: Three Months Ended September 30, 2023 Currency Employee Total Amount Total Balance, July 1, 2023 $ (123,450) $ (143,533) $ (266,983) $ 3 $ (266,986) Activity: Other comprehensive income (loss) before reclassifications (19,712) 5,054 (14,658) (2) (14,656) Adjustments for items reclassified to earnings, net of tax 2,472 1,580 4,052 - 4,052 Net other comprehensive income (loss) (17,240) 6,634 (10,606) (2) (10,604) Balance, September 30, 2023 $ (140,690) $ (136,899) $ (277,589) $ 1 $ (277,590) Nine Months Ended September 30, 2023 Currency Employee Total Amount Total Balance, January 1, 2023 $ (140,102) $ (140,483) $ (280,585) $ 2 $ (280,587) Activity: Other comprehensive loss before reclassifications (3,088) (332) (3,420) (1) (3,419) Adjustments for items reclassified to earnings, net of tax 2,500 3,916 6,416 - 6,416 Net other comprehensive income (loss) (588) 3,584 2,996 (1) 2,997 Balance, September 30, 2023 $ (140,690) $ (136,899) $ (277,589) $ 1 $ (277,590) Three Months Ended September 30, 2022 Currency Employee Total Amount Total Balance, July 1, 2022 $ (155,847) $ (119,300) $ (275,147) $ - $ (275,147) Activity: Other comprehensive income (loss) before reclassifications (53,627) 8,786 (44,841) 1 (44,842) Adjustments for items reclassified to earnings, net of tax 138 1,162 1,300 - 1,300 Net other comprehensive income (loss) (53,489) 9,948 (43,541) 1 (43,542) Balance, September 30, 2022 $ (209,336) $ (109,352) $ (318,688) $ 1 $ (318,689) Nine Months Ended September 30, 2022 Currency Employee Total Amount Total Balance, January 1, 2022 $ (76,355) $ (132,680) $ (209,035) $ 2 $ (209,037) Activity: Other comprehensive income (loss) before reclassifications (133,246) 20,512 (112,734) (1) (112,733) Adjustments for items reclassified to earnings, net of tax 265 2,816 3,081 - 3,081 Net other comprehensive income (loss) (132,981) 23,328 (109,653) (1) (109,652) Balance, September 30, 2022 $ (209,336) $ (109,352) $ (318,688) $ 1 $ (318,689) |
Schedule of Adjustments for Items Reclassified From AOCI | The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and nine month periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Currency translation losses (a) $ 2,472 $ 138 $ 2,500 $ 265 Employee benefit plans: Amortization relating to employee benefit plans (b) $ 1,954 $ 1,395 5,051 3,564 Less - related income taxes 374 233 1,135 748 1,580 1,162 3,916 2,816 Total reclassifications, net of tax $ 4,052 $ 1,300 $ 6,416 $ 3,081 __________________________ (a) Represents currency translation losses reclassified from AOCI associated with closing of certain of our offices. Such amounts are included in “revenue—other” on the condensed consolidated statements of operations. (b) Included in the computation of net periodic benefit cost (see Note 13). Such amounts are included in “operating expenses—other” on the condensed consolidated statements of operations. |
Schedule of Net Income (Loss) Attributable to Noncontrolling Interests | The tables below summarize net income (loss) attributable to noncontrolling interests for the three month and nine month periods ended September 30, 2023 and 2022 and noncontrolling interests as of September 30, 2023 and December 31, 2022 in the Company’s condensed consolidated financial statements: Net Income (Loss) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Edgewater $ 2,885 $ 18,209 $ 4,557 $ 28,715 LFI Consolidated Funds (3,251) (5,237) 3,718 (18,393) LGAC - 4,023 1,968 9,941 Other 2 1 2 2 Total $ (364) $ 16,996 $ 10,245 $ 20,265 Noncontrolling Interests as of September 30, December 31, Edgewater $ 45,371 $ 44,681 LFI Consolidated Funds - 74,164 LGAC - (10,714) Other 12 13 Total $ 45,383 $ 108,144 |
INCENTIVE PLANS (Tables)
INCENTIVE PLANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule 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, RSAs and profits interest participation rights, including PRPUs and SPRPUs) and “professional services” expense (with respect to DSUs) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Share-based incentive awards: RSUs $ 41,085 $ 37,061 $ 136,772 $ 98,012 PRSUs 569 498 1,920 1,387 RSAs 5,742 6,420 21,117 19,197 Profits interest participation rights 10,815 30,762 48,077 80,454 DSUs 75 88 872 1,026 Total $ 58,286 $ 74,829 $ 208,758 $ 200,076 |
Schedule 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 nine month period ended September 30, 2023: Prepaid Compensation Balance, January 1, 2023 $ 112,124 $ 326,282 Granted 159,981 159,981 Settled - (167,526) Amortization and the impact of forfeitures (126,169) 7,285 Change in fair value of underlying investments - 15,530 Other 109 (969) Balance, September 30, 2023 $ 146,045 $ 340,583 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 and nine month periods ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Amortization and the impact of forfeitures $ 41,368 $ 41,956 $ 133,454 $ 125,210 Change in the fair value of underlying investments (10,598) (16,180) 15,530 (65,601) Total $ 30,770 $ 25,776 $ 148,984 $ 59,609 |
RSUs and DSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity relating to RSUs and DSUs during the nine month period ended September 30, 2023: RSUs DSUs Units Weighted Units Weighted Balance, January 1, 2023 9,022,917 $ 37.97 400,820 $ 37.66 Granted (including 515,420 RSUs relating to dividend participation) 5,496,350 $ 36.51 58,414 $ 29.87 Forfeited (127,546) $ 33.34 - $ - Settled (3,359,950) $ 41.65 (134,744) $ 36.21 Balance, September 30, 2023 11,031,771 $ 36.17 324,490 $ 36.86 |
RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity related to RSAs associated with compensation arrangements during the nine month period ended September 30, 2023: RSAs Weighted Balance, January 1, 2023 1,266,424 $ 36.99 Granted (including 71,900 relating to dividend participation) 646,979 $ 37.65 Forfeited (12,447) $ 38.35 Settled (660,282) $ 39.27 Balance, September 30, 2023 1,240,674 $ 36.10 |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity relating to PRSUs during the nine month period ended September 30, 2023: PRSUs Weighted Balance, January 1, 2023 94,690 $ 39.27 Balance, September 30, 2023 94,690 $ 39.27 |
Profits interest participation rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Activity Relating to Share-based Awards | The following is a summary of activity relating to all profits interest participation rights, including PRPUs and SPRPUs, during the nine month period ended September 30, 2023: Profits Interest Participation Rights Weighted Balance, January 1, 2023 4,131,628 $ 40.15 Granted 3,488,074 $ 22.47 Forfeited (16,695) $ 43.23 Settled (1,521,620) $ 42.17 Balance, September 30, 2023 (a) 6,081,387 $ 29.50 __________________________ (a) Table includes 1,474,002 PRPUs and 2,250,000 SPRPUs as of September 30, 2023. This includes 2,447,224 PRPUs as of January 1, 2023, net of 973,222 PRPUs settled and 2,250,000 SPRPUs granted during the nine month period ended September 30, 2023. The balance as of September 30, 2023 reflects the target number of PRPUs granted in February 2021 and March 2022. There were no PRPUs granted during the nine month period ended September 30, 2023. The weighted average grant date fair values for PRPUs and other profits interest participation rights outstanding as of January 1, 2023 were $40.29 and $39.96, respectively. The weighted average grant date fair values for SPRPUs and other profits interest participation rights granted during the nine month period ended September 30, 2023 was $15.06 and $35.94, respectively. The weighted average grant date fair values for other profits interest participation rights forfeited during the nine month period ended September 30, 2023 was $43.23. The weighted average grant date fair values for PRPUs and other profits interest participation rights settled during the nine month period ended September 30, 2023 were $41.76 and $42.89, respectively. The weighted average grant date fair values for PRPUs, SPRPUs and other profits interest participation rights outstanding as of September 30, 2023 were $39.31, $15.06 and $37.14, respectively. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s pension plans for the three month and nine month periods ended September 30, 2023 and 2022: Pension Plans Three Months Ended September 30, 2023 2022 Components of Net Periodic Benefit Cost (Credit): Service cost $ 74 $ 116 Interest cost 5,322 2,642 Expected return on plan assets (6,068) (5,808) Amortization of: Prior service cost 28 25 Net actuarial loss 1,926 1,370 Settlement loss 791 380 Net periodic benefit cost (credit) $ 2,073 $ (1,275) Pension Plans Nine Months Ended September 30, 2023 2022 Components of Net Periodic Benefit Cost (Credit): Service cost $ 256 $ 386 Interest cost 15,746 8,459 Expected return on plan assets (17,916) (18,627) Amortization of: Prior service cost 81 80 Net actuarial loss (gain) 4,970 3,484 Settlement loss 2,333 1,223 Net periodic benefit cost (credit) $ 5,470 $ (4,995) |
COST-SAVING INITIATIVES (Tables
COST-SAVING INITIATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activities Related to Cost Savings Initiatives | Expenses and losses associated with the cost-saving initiatives for the three month and nine month periods ended September 30, 2023 consisted of the following: Three Months Ended September 30, 2023 Financial Advisory Asset Management Corporate Total Severance and other employee $ (529) $ 4,190 $ 4,772 $ 8,433 Technology asset impairments 56 515 - 571 Foreign exchange related losses 2,507 - 2,483 4,990 Other 1,469 28 42 1,539 Total $ 3,503 $ 4,733 $ 7,297 $ 15,533 Nine Months Ended September 30, 2023 Financial Advisory Asset Management Corporate Total Severance and other employee $ 86,254 $ 44,958 $ 31,309 $ 162,521 Technology asset impairments 144 7,812 - 7,956 Foreign exchange related losses 2,507 - 2,483 4,990 Other 1,991 308 1,952 4,251 Total $ 90,896 $ 53,078 $ 35,744 $ 179,718 Activity related to the obligations pursuant to the cost-saving initiatives during the nine month period ended September 30, 2023 was as follows: Accrued Compensation and Benefits Other Total Balance, January 1, 2023 $ - $ - $ - Total expenses 162,521 17,197 179,718 Less: Noncash expenses (a) 30,050 11,069 41,119 Payments and settlements 71,446 4,825 76,271 Balance, September 30, 2023 $ 61,025 $ 1,303 $ 62,328 ___________________________________ (a) Noncash expenses reflected in “accrued compensation and benefits” activity principally represents accelerated amortization of deferred incentive compensation awards. Noncash expenses reflected in “other” activity principally relates to technology asset impairments and certain foreign exchange related losses. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets | Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Financial Advisory Net Revenue $ 266,156 $ 453,084 $ 895,313 $ 1,248,926 Operating Expenses 294,848 337,025 1,057,506 947,466 Operating Income (Loss) $ (28,692) $ 116,059 $ (162,193) $ 301,460 Asset Management Net Revenue $ 284,855 $ 298,797 $ 857,212 $ 926,449 Operating Expenses 232,011 233,614 749,281 707,676 Operating Income $ 52,844 $ 65,183 $ 107,931 $ 218,773 Corporate Net Revenue (Loss) $ (26,516) $ (28,000) $ (42,747) $ (118,646) Operating Expenses (Credit) (1,121) (6,475) 83,802 (47,594) Operating Loss $ (25,395) $ (21,525) $ (126,549) $ (71,052) Total Net Revenue $ 524,495 $ 723,881 $ 1,709,778 $ 2,056,729 Operating Expenses 525,738 564,164 1,890,589 1,607,548 Operating Income (Loss) $ (1,243) $ 159,717 $ (180,811) $ 449,181 As Of September 30, 2023 December 31, 2022 Total Assets Financial Advisory $ 1,013,299 $ 1,074,278 Asset Management 828,890 978,083 Corporate 2,023,662 3,409,438 Total $ 3,865,851 $ 5,461,799 |
CONSOLIDATED VIEs (Tables)
CONSOLIDATED VIEs (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Schedule of Consolidated VIE Assets and Liabilities | The Company’s consolidated VIE assets and liabilities for LFI Consolidated Funds as reflected in the condensed consolidated statements of financial condition consist of the following at September 30, 2023 and December 31, 2022. September 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 3,224 $ 3,644 Customers and other receivables 1,789 240 Investments 190,511 186,300 Other assets 737 622 Total assets $ 196,261 $ 190,806 LIABILITIES Deposits and other customer payables $ 1,307 $ 528 Other liabilities 400 448 Total liabilities $ 1,707 $ 976 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION - Additional Information (Details) | 1 Months Ended | 9 Months Ended | ||
Feb. 23, 2023 USD ($) | Feb. 28, 2021 USD ($) | Sep. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | |
Organization And Basis Of Presentation [Line Items] | ||||
Number of business segments | Segment | 2 | |||
Redeemable noncontrolling interests | $ 81,781,000 | $ 583,471,000 | ||
LGAC Warrants | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Redemption rights and liquidating distributions relating to LGAC warrants | 0 | |||
LGAC | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Initial public offering (LGAC) | $ 575,000,000 | |||
Redeemable noncontrolling interests | $ 583,471,000 | |||
Assets held-in-trust, noncurrent | $ 585,891,000 | |||
LGAC | Other Revenue | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Losses on dissolution | $ 17,929,000 | |||
LGAC | Net Underwriting Fee | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Net underwriting fee | 8,500,000 | |||
LGAC | Other Offering Cost | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Other offering costs | 852,000 | |||
LGAC | Non-cash Deferred Underwriting Fees | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Deferred costs | $ 20,125,000 | |||
Lazard Group LLC | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Percentage of common membership interests held (as a percent) | 100% | 100% |
REVENUE RECOGNITION - (Detail)
REVENUE RECOGNITION - (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financial Advisory | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 266,156 | $ 453,084 | $ 895,313 | $ 1,248,926 |
Asset Management | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 284,855 | 298,797 | 857,212 | 926,449 |
Asset Management | Management Fees And Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 282,657 | 277,202 | 843,590 | 872,351 |
Asset Management | Incentive Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 2,198 | $ 21,595 | $ 13,622 | $ 54,098 |
RECEIVABLES AND ALLOWANCE FOR_3
RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 27,095 | $ 30,269 | $ 17,737 | $ 33,955 |
Bad debt expense (credit), net of reversals | 2,267 | (457) | 13,287 | (999) |
Charge-offs, foreign currency translation and other adjustments | (8,281) | (15,516) | (9,943) | (18,660) |
Ending Balance | $ 21,081 | $ 14,296 | $ 21,081 | $ 14,296 |
RECEIVABLES AND ALLOWANCE FOR_4
RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables | $ 115,379 | $ 97,964 |
Customers and other receivables | 126,157 | 160,898 |
Carrying amount | 505,344 | 499,910 |
Customer and Other Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customer loans | $ 89,753 | $ 128,890 |
INVESTMENTS - Schedule of Inves
INVESTMENTS - Schedule of Investments and Securities Sold, not yet Purchased (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Investments | $ 657,880 | $ 698,977 |
Investments, at fair value | 657,880 | 683,496 |
Equity method investments | 0 | 15,481 |
Debt | ||
Schedule of Investments [Line Items] | ||
Investments | 4,481 | 0 |
Equities | ||
Schedule of Investments [Line Items] | ||
Investments | 40,659 | 43,889 |
Alternative investments | ||
Schedule of Investments [Line Items] | ||
Investments | 60,210 | 56,947 |
Alternative investments | Lazard Fund Interests | Lazard Group LLC | ||
Schedule of Investments [Line Items] | ||
Investments | 27,145 | 24,137 |
Debt | ||
Schedule of Investments [Line Items] | ||
Investments | 183,790 | 178,556 |
Debt | Lazard Fund Interests | Lazard Group LLC | ||
Schedule of Investments [Line Items] | ||
Investments | 168,624 | 142,632 |
Equity | ||
Schedule of Investments [Line Items] | ||
Investments | 324,239 | 350,282 |
Equity | Lazard Fund Interests | Lazard Group LLC | ||
Schedule of Investments [Line Items] | ||
Investments | 262,223 | 266,528 |
Private equity | ||
Schedule of Investments [Line Items] | ||
Investments | 44,501 | 53,822 |
Funds Total | ||
Schedule of Investments [Line Items] | ||
Investments | $ 612,740 | $ 639,607 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) - Debt - U.S. Treasury Securities | 9 Months Ended |
Sep. 30, 2023 | |
Minimum | |
Schedule of Investments [Line Items] | |
US treasury securities maturity period | 3 months |
Maximum | |
Schedule of Investments [Line Items] | |
US treasury securities maturity period | 1 year |
INVESTMENTS - Schedule of Equit
INVESTMENTS - Schedule of Equity Securities and Trading Debt Securities Net Unrealized Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Trading, Gain (Loss) [Abstract] | ||||
Net unrealized investment gains (losses) | $ (23,879) | $ (31,093) | $ 14,551 | $ (134,091) |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | $ 657,880 | $ 683,496 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | $ 3,678 | $ 14,554 |
Assets, fair value disclosure | 661,558 | 698,050 |
Securities sold, not yet purchased | 1,724 | 4,651 |
Contingent consideration liability | 6,503 | |
Derivative Liability | 342,483 | 327,160 |
Total of liabilities measured at fair value | 350,710 | 331,811 |
Fair Value, Measurements, Recurring | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 4,481 | |
Fair Value, Measurements, Recurring | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 40,659 | 43,889 |
Fair Value, Measurements, Recurring | Alternative investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 60,210 | 56,947 |
Fair Value, Measurements, Recurring | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 183,790 | 178,556 |
Fair Value, Measurements, Recurring | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 324,239 | 350,282 |
Fair Value, Measurements, Recurring | Private equity | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 44,501 | 53,822 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets, fair value disclosure | 556,920 | 599,110 |
Securities sold, not yet purchased | 1,724 | 4,651 |
Derivative Liability | 115 | |
Total of liabilities measured at fair value | 1,724 | 4,766 |
Fair Value, Measurements, Recurring | Level 1 | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 3,524 | |
Fair Value, Measurements, Recurring | Level 1 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 40,119 | 43,243 |
Fair Value, Measurements, Recurring | Level 1 | Alternative investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 15,534 | 27,073 |
Fair Value, Measurements, Recurring | Level 1 | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 173,546 | 178,552 |
Fair Value, Measurements, Recurring | Level 1 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 324,197 | 350,242 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 3,678 | 14,554 |
Assets, fair value disclosure | 14,875 | 14,554 |
Derivative Liability | 342,483 | 327,045 |
Total of liabilities measured at fair value | 342,483 | 327,045 |
Fair Value, Measurements, Recurring | Level 2 | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 957 | |
Fair Value, Measurements, Recurring | Level 2 | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 10,240 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets, fair value disclosure | 801 | 19,418 |
Contingent consideration liability | 6,503 | |
Total of liabilities measured at fair value | 6,503 | |
Fair Value, Measurements, Recurring | Level 3 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 540 | 646 |
Fair Value, Measurements, Recurring | Level 3 | Private equity | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 261 | 18,772 |
Fair Value, Measurements, Recurring | NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets, fair value disclosure | 88,962 | 64,968 |
Fair Value, Measurements, Recurring | NAV | Alternative investments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 44,676 | 29,874 |
Fair Value, Measurements, Recurring | NAV | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 4 | 4 |
Fair Value, Measurements, Recurring | NAV | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | 42 | 40 |
Fair Value, Measurements, Recurring | NAV | Private equity | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Investments, at fair value | $ 44,240 | $ 35,050 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Changes in Fair Value of Company's Level 3 Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Assets: | ||||
Beginning Balance | $ 910 | $ 798 | $ 19,418 | $ 871 |
Net Unrealized/ Realized Gains/Losses Included In Earnings | (95) | 28 | (81) | 35 |
Purchases/ Issuances | 0 | 0 | 0 | 0 |
Sales/ Settlements/ Transfers | 0 | 0 | (18,508) | (13) |
Foreign Currency Translation Adjustments | (14) | (57) | (28) | (124) |
Ending Balance | $ 801 | $ 769 | $ 801 | $ 769 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other | Other |
Liabilities: | ||||
Beginning Balance | $ 6,422 | $ 0 | ||
Net Unrealized/ Realized Gains/Losses Included In Earnings | 81 | 194 | ||
Purchases/ Issuances | 0 | 7,754 | ||
Sales/ Settlements/ Transfers | 0 | (1,445) | ||
Foreign Currency Translation Adjustments | 0 | 0 | ||
Ending Balance | 6,503 | 6,503 | ||
Level 3 | ||||
Liabilities: | ||||
Unrealized gains (losses) on assets | (76) | $ 28 | (62) | $ 35 |
Unrealized losses on liability | 81 | 194 | ||
Contingent consideration liability | ||||
Liabilities: | ||||
Beginning Balance | 6,422 | 0 | ||
Net Unrealized/ Realized Gains/Losses Included In Earnings | 81 | 194 | ||
Purchases/ Issuances | 0 | 7,754 | ||
Sales/ Settlements/ Transfers | 0 | (1,445) | ||
Foreign Currency Translation Adjustments | 0 | 0 | ||
Ending Balance | 6,503 | 6,503 | ||
Equities | ||||
Assets: | ||||
Beginning Balance | 642 | 542 | 646 | 578 |
Net Unrealized/ Realized Gains/Losses Included In Earnings | (95) | 28 | (81) | 35 |
Purchases/ Issuances | 0 | 0 | 0 | 0 |
Sales/ Settlements/ Transfers | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustments | (7) | (41) | (25) | (84) |
Ending Balance | 540 | 529 | 540 | 529 |
Private equity | ||||
Assets: | ||||
Beginning Balance | 268 | 256 | 18,772 | 293 |
Net Unrealized/ Realized Gains/Losses Included In Earnings | 0 | 0 | 0 | 0 |
Purchases/ Issuances | 0 | 0 | 0 | 0 |
Sales/ Settlements/ Transfers | 0 | 0 | (18,508) | (13) |
Foreign Currency Translation Adjustments | (7) | (16) | (3) | (40) |
Ending Balance | $ 261 | $ 240 | $ 261 | $ 240 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Option Quantitative Disclosures [Line Items] | |||||
Transfers into or out of Level 3 in the fair value measurement hierarchy | $ 0 | $ 0 | $ 0 | $ 0 | |
Unfunded commitments | 5,547,000 | 5,547,000 | $ 5,455,000 | ||
EGCP III | |||||
Fair Value Option Quantitative Disclosures [Line Items] | |||||
Unfunded commitments | $ 5,028,000 | $ 5,028,000 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Fair Value of Certain Investments Based on NAV (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
NAV | $ 88,962 | $ 64,968 |
Unfunded Commitments | 5,547 | 5,455 |
Hedge funds | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
NAV | $ 44,022 | $ 29,259 |
Hedge funds | Minimum | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | 30 days |
Hedge funds | Maximum | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 60 days | 60 days |
Hedge funds | Monthly | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments redeemable (as percent) | 73% | 68% |
Hedge funds | Quarterly | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments redeemable (as percent) | 27% | 32% |
Other | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
NAV | $ 654 | $ 615 |
Other | Minimum | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | 30 days |
Other | Maximum | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | 30 days |
Other | Monthly | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments redeemable (as percent) | 95% | 95% |
Other | Daily | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments redeemable (as percent) | 5% | 5% |
Debt | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
NAV | $ 4 | $ 4 |
Redemption Notice Period | 30 days | 30 days |
Debt | Daily | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments redeemable (as percent) | 100% | 100% |
Equity | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
NAV | $ 42 | $ 40 |
Equity | Minimum | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | 30 days |
Equity | Maximum | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 60 days | 60 days |
Equity | Monthly | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments redeemable (as percent) | 33% | 35% |
Equity | Annually | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Investments redeemable (as percent) | 67% | 65% |
Private equity | Equity growth | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
NAV | $ 44,240 | $ 35,050 |
Unfunded Commitments | $ 5,547 | $ 5,455 |
Fair value not redeemable (as percent) | 100% | 100% |
Private equity | Consolidated But Not Owned | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 10,206 | $ 8,003 |
DERIVATIVES - Fair Values of De
DERIVATIVES - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 6,027 | $ 14,783 |
Derivative assets, amounts not netted: cash collateral | 0 | 0 |
Derivative assets, amounts not netted: securities collateral | 0 | 0 |
Derivative assets, fair value, total | 3,678 | 14,554 |
Derivative assets, notional amount | 231,252 | 325,129 |
Derivative liabilities, fair value | 344,832 | 327,390 |
Derivative liabilities, amounts not netted: cash collateral | (1,692) | 0 |
Derivative liabilities, amounts not netted: securities collateral | 0 | 0 |
Derivative liabilities, fair value, total | 340,792 | 327,160 |
Derivative liabilities, notional | 619,445 | 479,122 |
Forward foreign currency exchange rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 1,985 | 1,356 |
Derivative assets, fair value counterparty and cash collateral netting | (79) | (157) |
Derivative assets, notional amount | 151,496 | 170,103 |
Derivative liabilities, fair value | 1,979 | 921 |
Derivative liabilities, fair value, counterparty and cash collateral netting | (83) | (158) |
Derivative liabilities, notional | 207,558 | 128,098 |
Total return swaps and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 4,042 | 13,427 |
Derivative assets, fair value counterparty and cash collateral netting | (2,270) | (72) |
Derivative assets, notional amount | 79,756 | 155,026 |
Derivative liabilities, fair value | 2,270 | 72 |
Derivative liabilities, fair value, counterparty and cash collateral netting | (2,265) | (72) |
Derivative liabilities, notional | 54,754 | 1,398 |
LGAC Warrants | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | |
Derivative assets, notional amount | 0 | |
Derivative liabilities, fair value | 115 | |
Derivative liabilities, notional | 11,500 | |
LFI and other similar deferred compensation arrangements | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 0 |
Derivative assets, notional amount | 0 | 0 |
Derivative liabilities, fair value | 340,583 | 326,282 |
Derivative liabilities, notional | 357,133 | 338,126 |
Net derivatives in "other assets" and "other liabilities" | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, net derivatives | 3,678 | 14,554 |
Derivative liabilities, net derivatives | $ 342,484 | $ 327,160 |
DERIVATIVES - Net Gains (Losses
DERIVATIVES - Net Gains (Losses) with Respect to Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ 16,137 | $ 28,307 | $ (22,006) | $ 115,967 |
Forward foreign currency exchange rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total return swaps and other | (984) | 2,650 | (1,684) | 8,260 |
LFI and other similar deferred compensation arrangements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total return swaps and other | 10,598 | 16,180 | (15,530) | 65,601 |
LGAC Warrants | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total return swaps and other | 0 | 2,300 | 115 | 9,430 |
Total return swaps and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total return swaps and other | $ 6,523 | $ 7,177 | $ (4,907) | $ 32,676 |
PROPERTY, NET - Components of P
PROPERTY, NET - Components of Property (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 633,875 | $ 643,632 |
Less - Accumulated depreciation and amortization | 404,280 | 393,595 |
Property, net | $ 229,595 | 250,037 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Depreciable Life in Years | 33 years | |
Property, plant and equipment, gross | $ 163,900 | 135,103 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 224,556 | 207,285 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Depreciable Life in Years | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Depreciable Life in Years | 20 years | |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 232,150 | 235,684 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Depreciable Life in Years | 3 years | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Depreciable Life in Years | 10 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 13,269 | $ 65,560 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Components of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 373,009 | $ 356,369 | $ 355,231 | $ 357,187 |
Other intangible assets (net of accumulated amortization) | 45 | 90 | ||
Goodwill and other intangible assets, total | $ 373,054 | $ 356,459 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 373,009 | $ 355,231 | $ 373,009 | $ 355,231 | $ 356,369 | $ 357,187 |
Amortization and other acquisition-related costs | 15 | $ 15 | 45 | $ 45 | ||
Financial Advisory | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | 291,739 | 291,739 | 291,828 | |||
Asset Management | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 81,270 | $ 81,270 | $ 64,541 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 356,369 | $ 357,187 |
Acquisition of business | 16,729 | 0 |
Foreign currency translation adjustments | (89) | (1,956) |
Ending balance | $ 373,009 | $ 355,231 |
SENIOR DEBT - Senior Debt (Deta
SENIOR DEBT - Senior Debt (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Principal | $ 1,700,000,000 | $ 1,700,000,000 |
Unamortized Debt Costs | 10,421,000 | 12,286,000 |
Carrying Value | 1,689,579,000 | 1,687,714,000 |
Lazard Group 2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Initial Principal Amount | $ 400,000,000 | |
Maturity Date | Feb. 13, 2025 | |
Annual interest rate | 3.75% | |
Principal | $ 400,000,000 | 400,000,000 |
Unamortized Debt Costs | 649,000 | 1,003,000 |
Carrying Value | $ 399,351,000 | 398,997,000 |
Effective interest rates of senior notes (as a percent) | 3.87% | |
Lazard Group 2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Initial Principal Amount | $ 300,000,000 | |
Maturity Date | Mar. 01, 2027 | |
Annual interest rate | 3.625% | |
Principal | $ 300,000,000 | 300,000,000 |
Unamortized Debt Costs | 1,333,000 | 1,625,000 |
Carrying Value | $ 298,667,000 | 298,375,000 |
Effective interest rates of senior notes (as a percent) | 3.76% | |
Lazard Group 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Initial Principal Amount | $ 500,000,000 | |
Maturity Date | Sep. 19, 2028 | |
Annual interest rate | 4.50% | |
Principal | $ 500,000,000 | 500,000,000 |
Unamortized Debt Costs | 4,225,000 | 4,864,000 |
Carrying Value | $ 495,775,000 | 495,136,000 |
Effective interest rates of senior notes (as a percent) | 4.67% | |
Lazard Group 2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Initial Principal Amount | $ 500,000,000 | |
Maturity Date | Mar. 11, 2029 | |
Annual interest rate | 4.375% | |
Principal | $ 500,000,000 | 500,000,000 |
Unamortized Debt Costs | 4,214,000 | 4,794,000 |
Carrying Value | $ 495,786,000 | $ 495,206,000 |
Effective interest rates of senior notes (as a percent) | 4.53% |
SENIOR DEBT - Additional Inform
SENIOR DEBT - Additional Information (Details) - USD ($) | 1 Months Ended | |||
Jun. 06, 2023 | Jul. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Second Amended And Restated Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit, initiation date | Jun. 06, 2023 | |||
Duration of senior revolving credit facility (in years) | 5 years | |||
Senior revolving credit facility | $ 200,000,000 | |||
Line of credit, expiration date | Jun. 06, 2028 | |||
Previous Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Duration of senior revolving credit facility (in years) | 3 years | |||
Senior revolving credit facility | $ 200,000,000 | |||
Line of credit, expiration date | Jul. 31, 2023 | |||
Unused Lines of Credit | ||||
Debt Instrument [Line Items] | ||||
Unused lines of credit | $ 209,000,000 | |||
Senior Debt | ||||
Debt Instrument [Line Items] | ||||
Fair value of senior debt | $ 1,586,000,000 | $ 1,602,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | Sep. 30, 2023 USD ($) |
Other Commitments [Line Items] | |
Maximum future payments under the guarantee | $ 10,000,000 |
LFB | |
Other Commitments [Line Items] | |
Other commitments | 0 |
LFNY | |
Other Commitments [Line Items] | |
Other commitments | $ 0 |
MEMBERS_ EQUITY AND REDEEMABL_3
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Feb. 28, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Aggregate value of all shares repurchased | $ 2,954 | $ 236,990 | $ 102,051 | $ 612,175 | ||
Share repurchase remaining authorization | 200,095 | $ 200,095 | ||||
Expiration | Dec. 31, 2024 | |||||
Lazard Ltd Subsidiaries | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Distribution to members | $ 120,184 | $ 140,845 | $ 120,184 | 140,845 | ||
Lazard Ltd Subsidiaries | Management | Common Stock | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Number of shares distributed to Ltd subsidiaries (in shares) | 1,521,620 | 1,902,756 | ||||
Executive Officers | Common Stock | ||||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||||
Aggregate value of all shares repurchased | $ 11,100 | $ 16,500 |
MEMBERS_ EQUITY AND REDEEMABL_4
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - Share Repurchase Authorized by Board of Directors (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |
Expiration | Dec. 31, 2024 |
April 2021 | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchase Authorization | $ 300,000,000 |
Expiration | Dec. 31, 2022 |
February 2022 | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchase Authorization | $ 300,000,000 |
Expiration | Dec. 31, 2024 |
July 2022 | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchase Authorization | $ 500,000,000 |
Expiration | Dec. 31, 2024 |
MEMBERS_ EQUITY AND REDEEMABL_5
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - Shares Repurchased Under the Share Repurchase Program (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||
Number of shares purchased (in shares) | 2,782,662 | 17,249,880 |
Average price per share (in usd per share) | $ 36.67 | $ 35.49 |
MEMBERS_ EQUITY AND REDEEMABL_6
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at the beginning | $ 78,017 | [1] | $ 610,976 | [2] | $ 466,513 | [3] | $ 874,466 | [4] |
Other comprehensive income (loss) before reclassifications | (14,658) | (44,841) | (3,420) | (112,734) | ||||
Adjustments for items reclassified to earnings, net of tax | 4,052 | 1,300 | 6,416 | 3,081 | ||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (10,606) | (43,541) | 2,996 | (109,653) | ||||
Balance at the end | 100,400 | [1],[3] | 524,463 | [2],[4] | 100,400 | [1],[3] | 524,463 | [2],[4] |
Currency Translation Adjustments | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at the beginning | (123,450) | (155,847) | (140,102) | (76,355) | ||||
Other comprehensive income (loss) before reclassifications | (19,712) | (53,627) | (3,088) | (133,246) | ||||
Adjustments for items reclassified to earnings, net of tax | 2,472 | 138 | 2,500 | 265 | ||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (17,240) | (53,489) | (588) | (132,981) | ||||
Balance at the end | (140,690) | (209,336) | (140,690) | (209,336) | ||||
Employee Benefit Plans | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at the beginning | (143,533) | (119,300) | (140,483) | (132,680) | ||||
Other comprehensive income (loss) before reclassifications | 5,054 | 8,786 | (332) | 20,512 | ||||
Adjustments for items reclassified to earnings, net of tax | 1,580 | 1,162 | 3,916 | 2,816 | ||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 6,634 | 9,948 | 3,584 | 23,328 | ||||
Balance at the end | (136,899) | (109,352) | (136,899) | (109,352) | ||||
Total AOCI | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at the beginning | (266,983) | (275,147) | (280,585) | (209,035) | ||||
Balance at the end | (277,589) | (318,688) | (277,589) | (318,688) | ||||
Amount Attributable to Noncontrolling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at the beginning | 3 | 0 | 2 | 2 | ||||
Other comprehensive income (loss) before reclassifications | (2) | 1 | (1) | (1) | ||||
Adjustments for items reclassified to earnings, net of tax | 0 | 0 | 0 | 0 | ||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (2) | 1 | (1) | (1) | ||||
Balance at the end | 1 | 1 | 1 | 1 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance at the beginning | (266,986) | [1] | (275,147) | [2] | (280,587) | [3] | (209,037) | [4] |
Other comprehensive income (loss) before reclassifications | (14,656) | (44,842) | (3,419) | (112,733) | ||||
Adjustments for items reclassified to earnings, net of tax | 4,052 | 1,300 | 6,416 | 3,081 | ||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (10,604) | (43,542) | 2,997 | (109,652) | ||||
Balance at the end | $ (277,590) | [1],[3] | $ (318,689) | [2],[4] | $ (277,590) | [1],[3] | $ (318,689) | [2],[4] |
[1](*) At July 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests.[2](*) At July 1, 2022 and September 30, 2022, in addition to profit participation interests, there were two managing member interests.[3](*) At January 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests.[4](*) At January 1, 2022 and September 30, 2022, in addition to profit participation interests, there were two managing member interests. |
MEMBERS_ EQUITY AND REDEEMABL_7
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - Adjustments for Items Reclassified From AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassifications, net of tax | $ 4,052 | $ 1,300 | $ 6,416 | $ 3,081 |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassifications, net of tax | 2,472 | 138 | 2,500 | 265 |
Employee Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization relating to employee benefit plans | 1,954 | 1,395 | 5,051 | 3,564 |
Less - related income taxes | 374 | 233 | 1,135 | 748 |
Total reclassifications, net of tax | $ 1,580 | $ 1,162 | $ 3,916 | $ 2,816 |
MEMBERS_ EQUITY AND REDEEMABL_8
MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - Net Income (Loss) Attributable to Noncontrolling Interests and Noncontrolling Interests at the End of the Period (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net Income (Loss) Attributable to Noncontrolling Interests | $ (364) | $ 16,996 | $ 10,245 | $ 20,265 | |
Noncontrolling interests | 45,383 | 45,383 | $ 108,144 | ||
LFI Consolidated Funds | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net Income (Loss) Attributable to Noncontrolling Interests | (3,251) | (5,237) | 3,718 | (18,393) | |
Noncontrolling interests | 0 | 0 | 74,164 | ||
Edgewater | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net Income (Loss) Attributable to Noncontrolling Interests | 2,885 | 18,209 | 4,557 | 28,715 | |
Noncontrolling interests | 45,371 | 45,371 | 44,681 | ||
LGAC | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net Income (Loss) Attributable to Noncontrolling Interests | 0 | 4,023 | 1,968 | 9,941 | |
Noncontrolling interests | 0 | 0 | (10,714) | ||
Other | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net Income (Loss) Attributable to Noncontrolling Interests | 2 | $ 1 | 2 | $ 2 | |
Noncontrolling interests | $ 12 | $ 12 | $ 13 |
INCENTIVE PLANS - Additional In
INCENTIVE PLANS - Additional Information (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | ||||
Apr. 29, 2021 shares | Apr. 24, 2018 shares | Sep. 30, 2023 USD ($) d $ / shares shares | Sep. 30, 2022 $ / shares | Aug. 31, 2023 tranche | |
Lazard Fund Interests | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense (in years) | 10 months 24 days | ||||
Non-Executive | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual compensation received by directors in the form of DSUs (as percent) | 55% | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of dividend participation rights issued | 515,420 | ||||
Units granted (in shares) | 5,496,350 | ||||
Weighted average grant date fair value, granted (in USD per share) | $ / shares | $ 36.51 | $ 33.64 | |||
Unrecognized compensation expense | $ | $ 156,284 | ||||
Unrecognized compensation expense (in years) | 1 year | ||||
RSUs | Three Years Following Date of Grant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting ( as a percent) | 33.33% | ||||
RSUs | Five Years Following Date of Grant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting ( as a percent) | 66.67% | ||||
DSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units granted (in shares) | 58,414 | ||||
Weighted average grant date fair value, granted (in USD per share) | $ / shares | $ 29.87 | 35.53 | |||
DSUs | Non-Executive | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units granted (in shares) | 43,999 | ||||
Units granted under the directors deferred unit plan (in shares) | 14,415 | ||||
RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units granted (in shares) | 646,979 | ||||
Weighted average grant date fair value, granted (in USD per share) | $ / shares | $ 37.65 | 33.31 | |||
Unrecognized compensation expense | $ | $ 20,050 | ||||
Unrecognized compensation expense (in years) | 10 months 24 days | ||||
Dividend participation rights issued (in shares) | 71,900 | ||||
PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value, granted (in USD per share) | $ / shares | 35.44 | ||||
Unrecognized compensation expense | $ | $ 1,754 | ||||
Unrecognized compensation expense (in years) | 6 months | ||||
Vesting period (in years) | 3 years | ||||
PRSUs | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target number of shares, multiplier | 0 | ||||
PRSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target number of shares, multiplier | 2.4 | ||||
Profits interest participation rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock conversion basis | one-for-one | ||||
Units granted (in shares) | 3,488,074 | ||||
Weighted average grant date fair value, granted (in USD per share) | $ / shares | $ 22.47 | $ 34.53 | |||
Unrecognized compensation expense | $ | $ 57,590 | ||||
Unrecognized compensation expense (in years) | 1 year 10 months 24 days | ||||
SPRPUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units granted (in shares) | 2,250,000 | ||||
Award vesting, number of tranches | tranche | 3 | ||||
Common stock price, number of consecutive days | d | 30 | ||||
SPRPUs | Scenario, Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period, fair value | $ | $ 33,900 | ||||
SPRPUs | Three Years Following Date of Grant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting ( as a percent) | 20% | ||||
Common stock price, appreciation (as a percent) | 25% | ||||
SPRPUs | Five Years Following Date of Grant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting ( as a percent) | 40% | ||||
Common stock price, appreciation (as a percent) | 50% | ||||
SPRPUs | Seven Years Following Date of Grant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock price, appreciation (as a percent) | 100% | ||||
Profits interest participation rights excluding SPRPUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Common Stock | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Withholding taxes in lieu of share delivery (in shares) | 1,204,403 | ||||
Delivery of common stock associated with stock awards (in shares) | 2,155,547 | ||||
Common Stock | RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Withholding taxes in lieu of share delivery (in shares) | 268,402 | ||||
Delivery of common stock associated with stock awards (in shares) | 391,880 | ||||
2018 Equity Incentive Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of shares authorized (in shares) | 20,000,000 | ||||
Common stock shares authorized (in shares) | 30,000,000 | ||||
Awarded Under 2008 Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding common stock available (as percent) | 30% | ||||
Compensation plan expiration period | Apr. 24, 2018 | ||||
2005 Equity Incentive Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock shares authorized (in shares) | 25,000,000 |
INCENTIVE PLANS -Impact of Shar
INCENTIVE PLANS -Impact of Share-Based Incentive Plans on Compensation and Benefits Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based incentive awards | $ 58,286 | $ 74,829 | $ 208,758 | $ 200,076 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based incentive awards | 41,085 | 37,061 | 136,772 | 98,012 |
PRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based incentive awards | 569 | 498 | 1,920 | 1,387 |
RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based incentive awards | 5,742 | 6,420 | 21,117 | 19,197 |
Profits interest participation rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based incentive awards | 10,815 | 30,762 | 48,077 | 80,454 |
DSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based incentive awards | $ 75 | $ 88 | $ 872 | $ 1,026 |
INCENTIVE PLANS - Activity Rela
INCENTIVE PLANS - Activity Relating to RSUs and DSUs (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
RSUs | ||
Units | ||
Units beginning balance (in shares) | 9,022,917 | |
Units granted (in shares) | 5,496,350 | |
Units forfeited (in shares) | (127,546) | |
Units settled (in shares) | (3,359,950) | |
Units ending balance (in shares) | 11,031,771 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 37.97 | |
Weighted average grant date fair value, granted (in USD per share) | 36.51 | $ 33.64 |
Weighted average grant date fair value, forfeited (in USD per share) | 33.34 | |
Weighted average grant date fair value, settled (in USD per share) | 41.65 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 36.17 | |
Number of dividend participation rights issued | 515,420 | |
DSUs | ||
Units | ||
Units beginning balance (in shares) | 400,820 | |
Units granted (in shares) | 58,414 | |
Units forfeited (in shares) | 0 | |
Units settled (in shares) | (134,744) | |
Units ending balance (in shares) | 324,490 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 37.66 | |
Weighted average grant date fair value, granted (in USD per share) | 29.87 | $ 35.53 |
Weighted average grant date fair value, forfeited (in USD per share) | 0 | |
Weighted average grant date fair value, settled (in USD per share) | 36.21 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 36.86 | |
PRPUs | ||
Units | ||
Units beginning balance (in shares) | 2,447,224 | |
Units granted (in shares) | 0 | |
Units settled (in shares) | (973,222) | |
Units ending balance (in shares) | 1,474,002 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 40.29 | |
Weighted average grant date fair value, settled (in USD per share) | 41.76 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 39.31 | |
SPRPUs | ||
Units | ||
Units granted (in shares) | 2,250,000 | |
Units ending balance (in shares) | 2,250,000 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, ending balance (in USD per share) | $ 15.06 |
INCENTIVE PLANS - Activity Re_2
INCENTIVE PLANS - Activity Related to Shares of Restricted Common Stock (Details) - RSAs - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Units | ||
Units beginning balance (in shares) | 1,266,424 | |
Units granted (in shares) | 646,979 | |
Units forfeited (in shares) | (12,447) | |
Units settled (in shares) | (660,282) | |
Units ending balance (in shares) | 1,240,674 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 36.99 | |
Weighted average grant date fair value, granted (in USD per share) | 37.65 | $ 33.31 |
Weighted average grant date fair value, forfeited (in USD per share) | 38.35 | |
Weighted average grant date fair value, settled (in USD per share) | 39.27 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 36.10 | |
Number of dividend participation rights issued | 71,900 |
INCENTIVE PLANS - Activity Re_3
INCENTIVE PLANS - Activity Relating to PRSUs (Details) - PRSUs | Sep. 30, 2023 $ / shares shares |
Units | |
Units beginning balance (in shares) | shares | 94,690 |
Units ending balance (in shares) | shares | 94,690 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning balance (in USD per share) | $ / shares | $ 39.27 |
Weighted average grant date fair value, ending balance (in USD per share) | $ / shares | $ 39.27 |
INCENTIVE PLANS - Activity Re_4
INCENTIVE PLANS - Activity Relating to PIPRs, including PRPUs and SPRPUs (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Profits interest participation rights | ||
Units | ||
Units beginning balance (in shares) | 4,131,628 | |
Units granted (in shares) | 3,488,074 | |
Units forfeited (in shares) | (16,695) | |
Units settled (in shares) | (1,521,620) | |
Units ending balance (in shares) | 6,081,387 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 40.15 | |
Weighted average grant date fair value, granted (in USD per share) | 22.47 | $ 34.53 |
Weighted average grant date fair value, forfeited (in USD per share) | 43.23 | |
Weighted average grant date fair value, settled (in USD per share) | 42.17 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 29.50 | |
PRPUs | ||
Units | ||
Units beginning balance (in shares) | 2,447,224 | |
Units granted (in shares) | 0 | |
Units settled (in shares) | (973,222) | |
Units ending balance (in shares) | 1,474,002 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 40.29 | |
Weighted average grant date fair value, settled (in USD per share) | 41.76 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 39.31 | |
SPRPUs | ||
Units | ||
Units granted (in shares) | 2,250,000 | |
Units ending balance (in shares) | 2,250,000 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, ending balance (in USD per share) | $ 15.06 | |
Other profits interest participation rights | ||
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, beginning balance (in USD per share) | 39.96 | |
Weighted average grant date fair value, granted (in USD per share) | 35.94 | |
Weighted average grant date fair value, forfeited (in USD per share) | 43.23 | |
Weighted average grant date fair value, settled (in USD per share) | 42.89 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 37.14 |
INCENTIVE PLANS - LFI and Other
INCENTIVE PLANS - LFI and Other Similar Deferred Compensation Arrangements (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Beginning balance, prepaid compensation asset | $ 112,124 |
Prepaid compensation asset, granted | 159,981 |
Prepaid compensation asset settled | 0 |
Prepaid compensation asset, amortization, net of forfeitures | (126,169) |
Prepaid compensation asset, change in fair value of underlying investments | 0 |
Prepaid compensation asset, other | 109 |
Ending balance, prepaid compensation asset | 146,045 |
LFI and other similar deferred compensation arrangements | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |
Beginning balance, derivative liability | 326,282 |
Compensation liability, granted | 159,981 |
Compensation liability, settled | (167,526) |
Compensation liability, amortization, net of forfeitures | 7,285 |
Compensation liability, change in fair value of underlying investments | 15,530 |
Compensation liability, other | (969) |
Ending balance, derivative liability | $ 340,583 |
INCENTIVE PLANS - Impact of LFI
INCENTIVE PLANS - Impact of LFI and Other Similar Deferred Compensation Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | ||||
Amortization and the impact of forfeitures | $ 41,368 | $ 41,956 | $ 133,454 | $ 125,210 |
Change in the fair value of underlying investments | (10,598) | (16,180) | 15,530 | (65,601) |
Total | $ 30,770 | $ 25,776 | $ 148,984 | $ 59,609 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Amortization of: | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | Other | Other |
Pension Plans | ||||
Components of Net Periodic Benefit Cost (Credit): | ||||
Service cost | $ 74 | $ 116 | $ 256 | $ 386 |
Interest cost | 5,322 | 2,642 | 15,746 | 8,459 |
Expected return on plan assets | (6,068) | (5,808) | (17,916) | (18,627) |
Amortization of: | ||||
Prior service cost | 28 | 25 | 81 | 80 |
Net actuarial loss | 1,926 | 1,370 | 4,970 | 3,484 |
Settlement loss | 791 | 380 | 2,333 | 1,223 |
Net periodic benefit cost (credit) | $ 2,073 | $ (1,275) | $ 5,470 | $ (4,995) |
COST-SAVING INITIATIVES - Expen
COST-SAVING INITIATIVES - Expenses Associated with the Cost Savings Initiatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Cost Saving initiatives [Line Items] | ||
Restructuring charges | $ 15,533 | $ 179,718 |
Corporate | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 7,297 | 35,744 |
Severance and other employee termination expenses (included in "compensation and benefits" expense) | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 8,433 | 162,521 |
Severance and other employee termination expenses (included in "compensation and benefits" expense) | Corporate | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 4,772 | 31,309 |
Technology asset impairments (included in "technology and information services") | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 571 | 7,956 |
Technology asset impairments (included in "technology and information services") | Corporate | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 0 | 0 |
Foreign exchange related losses associated with closing of certain offices (included in "revenue-other") | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 4,990 | 4,990 |
Foreign exchange related losses associated with closing of certain offices (included in "revenue-other") | Corporate | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 2,483 | 2,483 |
Other | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 1,539 | 4,251 |
Other | Corporate | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 42 | 1,952 |
Financial Advisory | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 3,503 | 90,896 |
Financial Advisory | Severance and other employee termination expenses (included in "compensation and benefits" expense) | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | (529) | 86,254 |
Financial Advisory | Technology asset impairments (included in "technology and information services") | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 56 | 144 |
Financial Advisory | Foreign exchange related losses associated with closing of certain offices (included in "revenue-other") | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 2,507 | 2,507 |
Financial Advisory | Other | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 1,469 | 1,991 |
Asset Management | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 4,733 | 53,078 |
Asset Management | Severance and other employee termination expenses (included in "compensation and benefits" expense) | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 4,190 | 44,958 |
Asset Management | Technology asset impairments (included in "technology and information services") | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 515 | 7,812 |
Asset Management | Foreign exchange related losses associated with closing of certain offices (included in "revenue-other") | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | 0 | 0 |
Asset Management | Other | Operating Segments | ||
Cost Saving initiatives [Line Items] | ||
Restructuring charges | $ 28 | $ 308 |
COST-SAVING INITIATIVES - Activ
COST-SAVING INITIATIVES - Activity Related to the Obligations Pursuant to the Cost Savings Initiatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 0 | |
Total expenses | $ 15,533 | 179,718 |
Noncash expenses | 41,119 | |
Payments and settlements | 76,271 | |
Balance at end of period | 62,328 | 62,328 |
Accrued Compensation and Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 0 | |
Total expenses | 162,521 | |
Noncash expenses | 30,050 | |
Payments and settlements | 71,446 | |
Balance at end of period | 61,025 | 61,025 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 0 | |
Total expenses | 17,197 | |
Noncash expenses | 11,069 | |
Payments and settlements | 4,825 | |
Balance at end of period | $ 1,303 | $ 1,303 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ (29,374) | $ 20,535 | $ 67,405 | $ 55,533 |
Effective income tax rates (as a percent) | 2,363.20% | 12.90% | (37.30%) | 12.40% |
U.S. federal statutory income tax rate (as a percent) | 21% |
RELATED PARTIES - Additional In
RELATED PARTIES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Fees receivable | $ 505,976 | $ 505,976 | $ 491,861 | ||
Investment Advisor | Sponsored Funds | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 135,899 | $ 159,749 | 405,269 | $ 458,462 | |
Fees receivable | $ 57,040 | $ 57,040 | $ 57,283 |
REGULATORY AUTHORITIES - Additi
REGULATORY AUTHORITIES - Additional Information (Detail) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) |
LFNY | ||
Regulatory Requirements [Line Items] | ||
Minimum net capital requirement as defined under exchange act | $ 5,000 | |
Regulatory capital | 73,105,000 | |
Regulatory capital in excess of minimum requirement | $ 69,493,000 | |
Aggregate indebtedness to net capital ratio | 0.74 | |
U.K. Subsidiaries | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | $ 174,572,000 | |
Regulatory capital in excess of minimum requirement | 111,142,000 | |
CFLF | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | $ 154,143,000 | |
Regulatory capital in excess of minimum requirement | 68,939,000 | |
Combined European Regulated Group | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | 180,261,000 | |
Regulatory capital in excess of minimum requirement | $ 86,449,000 | |
Other U.S. and Non-U.S. Subsidiaries | ||
Regulatory Requirements [Line Items] | ||
Regulatory capital | 141,320,000 | |
Regulatory capital in excess of minimum requirement | $ 114,703,000 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment's Contribution with Respect to Net Revenue, Operating Expenses, Operating Income (Loss) and Total Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net Revenue | $ 524,495 | $ 723,881 | $ 1,709,778 | $ 2,056,729 | |
Operating expenses (Credit) | 525,738 | 564,164 | 1,890,589 | 1,607,548 | |
Operating Income (Loss) | (1,243) | 159,717 | (180,811) | 449,181 | |
Total Assets | 3,865,851 | 3,865,851 | $ 5,461,799 | ||
Operating Segments | Financial Advisory | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 266,156 | 453,084 | 895,313 | 1,248,926 | |
Operating expenses (Credit) | 294,848 | 337,025 | 1,057,506 | 947,466 | |
Operating Income (Loss) | (28,692) | 116,059 | (162,193) | 301,460 | |
Total Assets | 1,013,299 | 1,013,299 | 1,074,278 | ||
Operating Segments | Asset Management | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 284,855 | 298,797 | 857,212 | 926,449 | |
Operating expenses (Credit) | 232,011 | 233,614 | 749,281 | 707,676 | |
Operating Income (Loss) | 52,844 | 65,183 | 107,931 | 218,773 | |
Total Assets | 828,890 | 828,890 | 978,083 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | (26,516) | (28,000) | (42,747) | (118,646) | |
Operating expenses (Credit) | (1,121) | (6,475) | 83,802 | (47,594) | |
Operating Income (Loss) | (25,395) | $ (21,525) | (126,549) | $ (71,052) | |
Total Assets | $ 2,023,662 | $ 2,023,662 | $ 3,409,438 |
CONSOLIDATED VIEs - Additional
CONSOLIDATED VIEs - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investments | $ 657,880 | $ 698,977 |
Lazard Fund Interests | Lazard Group LLC | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 112,773 | $ 115,666 |
CONSOLIDATED VIEs - Schedule of
CONSOLIDATED VIEs - Schedule of Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 645,185 | $ 1,180,473 |
Customers and other receivables | 126,157 | 160,898 |
Investments | 657,880 | 698,977 |
Other assets | 436,700 | 376,196 |
Total Assets | 3,865,851 | 5,461,799 |
LIABILITIES | ||
Deposits and other customer payables | 462,841 | 921,834 |
Other liabilities | 522,033 | 531,968 |
Total Liabilities | 3,683,670 | 4,411,815 |
Consolidated VIEs | ||
ASSETS | ||
Cash and cash equivalents | 3,224 | 3,644 |
Customers and other receivables | 1,789 | 240 |
Investments | 190,511 | 186,300 |
Other assets | 737 | 622 |
Total Assets | 196,261 | 190,806 |
LIABILITIES | ||
Deposits and other customer payables | 1,307 | 528 |
Other liabilities | 400 | 448 |
Total Liabilities | $ 1,707 | $ 976 |