0001564590-20-020870 | 10-Q | XBRL Viewer

Asset Management Segment [Member]

^[1]

$ 298,966

$ 338,370

Asset Management Segment [Member] | Management Fees and Other [Member]

282,521

301,833

Asset Management Segment [Member] | Incentive Fees [Member]

^[2]

281,007

301,253

Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract]

^[3]

$ 1,514

$ 580

[1]	Financial Advisory is comprised of M&A Advisory, Capital Advisory, Capital Raising, Restructuring, Shareholder Advisory, Sovereign Advisory, and other strategic advisory 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 will 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.
[2]	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.
[3]	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

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands	Mar. 31, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2020 (April 1 through December 31)	$ 1,315
2021	60
2022	60
2023	60
2024	30
Total amortization expense	$ 1,525

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION:
Cash and cash equivalents	$ 793,477	$ 1,231,593
Deposits with banks and short-term investments	1,080,737	1,180,686
Cash deposited with clearing organizations and other segregated cash	41,398	43,280
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	$ 1,915,612	$ 2,455,559	$ 2,188,665	$ 2,291,885

Derivatives - Net Gains (Losses) with Respect to Derivative Instruments Not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ 40,254	$ (17,007)
Forward Foreign Currency Exchange Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	1,772	4,520
LFI and Other Similar Deferred Compensation Arrangements [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	19,637	(13,870)
Total Return Swaps and Other [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	$ 18,845	$ (7,657)

Stockholders' Equity - Schedule of Share Repurchase Authorized by Board of Directors (Detail)	3 Months Ended
	Mar. 31, 2020 USD ($)
April, 2018 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 300,000,000
Expiration	Dec. 31, 2020
October, 2018 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 300,000,000
Expiration	Dec. 31, 2020
February, 2019 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 300,000,000
Expiration	Dec. 31, 2020
October, 2019 [Member]
Equity, Class of Treasury Stock [Line Items]
Share Repurchase Authorization	$ 300,000,000
Expiration	Dec. 31, 2021

Consolidated VIEs (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Consolidated VIE Assets and Liabilities

The Company’s consolidated VIE assets and liabilities as reflected in the condensed consolidated statements of financial condition consist of the following at March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
ASSETS
Cash and cash equivalents	$	4,637	$	3,826
Customers and other receivables		502		102
Investments (a)		145,055		97,474
Other assets		462		245
Total Assets	$	150,656	$	101,647

LIABILITIES
Deposits and other customer payables	$	418	$	62
Other liabilities		536		513
Total Liabilities	$	954	$	575

(a)	Includes $127,503 and $83,036 of LFI held by Lazard Group which is eliminated in the condensed consolidated statements of financial condition as of March 31, 2020 and December 31, 2019, respectively.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Investments

3 Months Ended

Mar. 31, 2020

Schedule Of Investments [Abstract]

Investments

5.	INVESTMENTS

The Company’s investments and securities sold, not yet purchased, consist of the following at March 31, 2020 and December 31, 2019:

	March 31,		December 31,
	2020		2019
Interest-bearing deposits	$	450	$	517
Debt		-		100,000
Equities		42,265		48,521
Funds:
Alternative investments (a)		29,832		16,581
Debt (a)		139,997		113,579
Equity (a)		254,051		218,435
Private equity		39,158		34,362
		463,038		382,957
Total investments		505,753		531,995
Less:
Interest-bearing deposits		450		517
Investments, at fair value	$	505,303	$	531,478
Securities sold, not yet purchased, at fair value (included in “other liabilities”)	$	12,123	$	12,894

(a)

Interests in alternative investment funds, debt funds and equity funds include investments with fair values of $9,330, $106,267 and $205,858, respectively, at March 31, 2020 and $9,881, $78,360 and $170,897, respectively, at December 31, 2019, held in order to satisfy the Company’s liability upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of actual or notional interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 7 and 13).

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

Debt primarily consists of U.S. Treasury securities with original maturities of greater than three months and less than one year.

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

Alternative investment funds primarily consist of interests in various Lazard-managed hedge funds, funds of funds and mutual funds. Such amounts primarily consist of seed investments in funds related to our Asset Management business and amounts related to LFI discussed above.

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

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

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

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

During the three month periods ended March 31, 2020 and 2019, 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
	March 31,
	2020			2019
Net unrealized investment gains (losses)	$	(44,432	)	$	19,923

Derivatives - Fair Values of Derivatives Reported on Condensed Consolidated Statements of Financial Condition (Detail) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Derivative Assets

$ 26,621

$ 1,395

Forward Foreign Currency Exchange Rate Contracts [Member]

274,884

236,273

Derivative Assets

7,859

1,395

Total Return Swaps and Other [Member]

3,281

1,720

Derivative Assets

^[1]

18,762

LFI and Other Similar Deferred Compensation Arrangements [Member]

^[1]

8,527