17. NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company's basic and diluted net income per share calculations for the three month and six month periods ended June 30, 2011 and 2010 are computed as described below.

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods, plus applicable adjustments to such net income associated with the inclusion of shares of Class A common stock issuable on a non-contingent basis.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods, plus applicable adjustments to such shares associated with shares of Class A common stock issuable on a non-contingent basis.

Diluted Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective periods as in the basic net income per share calculation described above, plus, to the extent applicable and dilutive, (i) interest expense on convertible debt, (ii) changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt and convertible preferred stock and, on an "as-if-exchanged" basis, amounts applicable to LAZ-MD Holdings exchangeable interests and (iii) income tax related to (i) and (ii) above.

Denominator—utilizes the weighted average number of shares of Class A common stock outstanding for the respective periods as in the basic net income per share calculation described above, plus, to the extent dilutive, the incremental number of shares of Class A common stock to settle share-based incentive compensation, convertible debt, convertible preferred stock and LAZ-MD Holdings exchangeable interests, using the "treasury stock" method, the "if converted" method or the "as-if-exchanged" basis, as applicable.

The calculations of the Company's basic and diluted net income per share and weighted average shares outstanding for the three month and six month periods ended June 30, 2011 and 2010 are presented below:


	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net income attributable to Lazard Ltd		$62,004		$44,572		$117,011		$11,038
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		103		192		199		(20	)

Net income attributable to Lazard Ltd - basic		62,107		44,764		117,210		11,018
Add (deduct) - dilutive effect, as applicable, of:
Adjustments to income relating to interest expense and changes in net income attributable to noncontrolling interests resulting from assumed Class A common stock issuances in connection with share-based incentive compensation, convertible debt, convertible preferred stock and exchangeable interests, net of tax		4,649		9,258		9,074		(212	)

Net income attributable to Lazard Ltd - diluted		$66,756		$54,022		$126,284		$10,806


Weighted average number of shares of Class A common stock outstanding		115,326,051		100,608,379		113,503,750		93,717,395
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		3,781,335		2,918,635		3,717,320		2,914,181

Weighted average number of shares of Class A common stock outstanding - basic		119,107,386		103,527,014		117,221,070		96,631,576
Add - dilutive effect, as applicable, of:
Weighted average number of incremental shares of Class A common stock issuable from share-based incentive compensation, convertible debt, convertible preferred stock and exchangeable interests		20,240,547		36,417,296		21,748,193		12,364,261

Weighted average number of shares of Class A common stock outstanding - diluted		139,347,933		139,944,310		138,969,263		108,995,837

Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.52		$0.43		$1.00		$0.11

Diluted		$0.48		$0.39		$0.91		$0.10