NET INCOME PER SHARE OF CLASS A COMMON STOCK

12 Months Ended

Dec. 31, 2012

NET INCOME PER SHARE OF CLASS A COMMON STOCK

18. NET INCOME PER SHARE OF CLASS A COMMON STOCK

The Company’s basic and diluted net income per share calculations for the years ended December 31, 2012, 2011 and 2010 are computed as described below.

Basic Net Income Per Share

Numerator—utilizes net income attributable to Lazard Ltd for the respective years, 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 years, 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 years 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 years 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 years ended December 31, 2012, 2011 and 2010 are presented below:

	Year Ended December 31,
	2012		2011		2010
Net income attributable to Lazard Ltd		$84,309		$174,917		$174,979
Add (deduct) - adjustment associated with Class A common stock issuable on a non-contingent basis		7		284		251
Net income attributable to Lazard Ltd - basic		84,316		175,201		175,230
Add - 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		371		12,512		13,689
Net income attributable to Lazard Ltd - diluted		$84,687		$187,713		$188,919
Weighted average number of shares of Class A common stock outstanding		116,163,821		115,005,676		101,607,301
Add - adjustment for shares of Class A common stock issuable on a non-contingent basis		790,168		3,026,344		2,803,952
Weighted average number of shares of Class A common stock outstanding - basic		116,953,989		118,032,020		104,411,253
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		12,371,633		19,597,505		34,058,401
Weighted average number of shares of Class A common stock outstanding - diluted		129,325,622		137,629,525		138,469,654
Net income attributable to Lazard Ltd per share of Class A common stock:
Basic		$0.72		$1.48		$1.68
Diluted		$0.65		$1.36		$1.36