DERIVATIVES

12 Months Ended

Dec. 31, 2012

DERIVATIVES

7. DERIVATIVES

The tables below represent the fair values 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 obligation pertaining to Lazard Fund Interests and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 14 of Notes to Consolidated Financial Statements) on the accompanying consolidated statements of financial condition as of December 31, 2012 and 2011:

	December 31,
	2012		2011
Derivative Assets:
Forward foreign currency exchange rate contracts	$	893	$	4,245
Equity and fixed income swaps and other		40		2,886
	$	933	$	7,131
Derivative Liabilities:
Forward foreign currency exchange rate contracts	$	322	$	445
Interest rate swaps		235		277
Equity and fixed income swaps		4,342		91
Lazard Fund Interests and other similar deferred compensation arrangements		97,593		29,900
	$	102,492	$	30,713

Net gains (losses) with respect to derivative instruments (predominantly reflected in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to Lazard Fund Interests and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying consolidated statements of operations for the years ended December 31, 2012, 2011 and 2010, were as follows:

	Year Ended December 31,
	2012			2011		2010
Forward foreign currency exchange rate contracts	$	(1,844	)	$	2,422	$	2,291
Lazard Fund Interests and other similar deferred compensation arrangements		(7,557	)		3,024		–
Equity and fixed income swaps and other		(18,327	)		4,276		(6,709	)
	$	(27,728	)	$	9,722	$	(4,418	)

Derivatives designated as hedging instruments related to interest rate swaps that hedged “available-for-sale” securities and had been accounted for as fair value hedges. For the year ended December 31, 2010, the Company recognized pre-tax losses pertaining to interest rate swaps of $2,844. These losses were substantially offset by gains recognized on the hedged risk portion of such “available-for-sale” securities.